Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 104 CONGRESS, SECOND SESSION

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

Vol. 142 WASHINGTON, THURSDAY, APRIL 18, 1996 No. 50 House of Representatives

The House met at 10 a.m. and was PLEDGE OF ALLEGIANCE munist Comeback Has Many in Russia called to order by the Speaker pro tem- The SPEAKER pro tempore. Will the Packing Bags.’’ pore [Mr. QUINN]. gentleman from Kansas [Mr. TIAHRT] With all our attention on the ad- f come forward and lead the House in the vance of communism in Russia, we Pledge of Allegiance. have taken our eyes off the resurgence DESIGNATION OF THE SPEAKER Mr. TIAHRT led the Pledge of Alle- of Stalinist style communism that PRO TEMPORE giance as follows: threatens elsewhere. Next Sunday, the The SPEAKER pro tempore laid be- I pledge allegiance to the Flag of the Italian people go to the polls in what is fore the House the following commu- United States of America, and to the Repub- their most important election, for they nication from the Speaker: lic for which it stands, one nation under God, must make a basic choice: Will they se- indivisible, with liberty and justice for all. WASHINGTON, DC, lect these Communists, no matter what f April 18, 1996. name they call themselves, to rule I hereby designate the Honorable JACK MESSAGE FROM THE SENATE their nation? QUINN to act as Speaker pro tempore on this day. A message from the Senate by Mr. We may be appalled by the thought, NEWT GINGRICH, Lundregan, one of its clerks, an- but it is not difficult to achieve in this Speaker of the House of Representatives. nounced that the Senate agrees to the disordered political system. These are f report of the committee of conference the facts: There are more than 20 polit- on the disagreeing votes of the two ical parties. The center right is pro- PRAYER Houses on the amendment of the House jected to win 45 percent of the vote. to the bill (S. 735) ‘‘An act to prevent The Chaplain, Rev. James David The Communists under the banner of and punish acts of terrorism, and for Ford, D.D., offered the following pray- ‘‘Progressive Democrats of the Left’’ other purposes.’’ er: will have 21 percent. A union of mem- The message also announced that We look at our world and too often bers of the discredited parties of the pursuant to Public Law 70–770, the we see distrust and strife, and yet we past will add 14 percent. The Northern Chair, on behalf of the Vice President, look elsewhere in our world and we see League will probably give its 5 to 7 per- appoints Mr. BREAUX to the Migratory acts of kindness and deeds of good will. cent to make it 40 percent. Bird Conservation Commission, vice We live in our communities and are Mr. PRYOR. That leaves the Stalinist Communist saddened by the strife of living and we Refoundation Party with its 11 percent. f also know people who work to They are the swing vote, and the left strengthen our communities and build ANNOUNCEMENT BY THE SPEAKER must join them if they want to rule. respect for every person. O gracious PRO TEMPORE Thus, Stalinist Communists will write God, from whom comes the power for The SPEAKER pro tempore. The national policy. us to be people of good will, enable us Chair will entertain ten 1-minutes on to choose to be builders of character This scenario played out in the re- each side. and models of integrity so we will con- cent election for mayor of Rome. tribute to the health of our Nation and f At issue in this campaign is electoral strengthen the lives of those about us. DANGER OF A COMMUNIST reform. The center right parties want Bless us today and every day, we pray. COMEBACK TO THE WEST an American Presidential-type govern- Amen. ment, elected directly by the people, (Mr. HYDE asked and was given per- not by the political parties. The Com- f mission to address the House for 1 munists bitterly oppose. They are minute and to revise and extend his re- against it, they say, and hold on to THE JOURNAL marks.) The SPEAKER pro tempore. The Mr. HYDE. Mr. Speaker, those of us your hats with this one, because it is Chair has examined the Journal of the who thought the end of the cold war not democratic. last day’s proceedings and announces ended the danger of communism to the I bring this to your attention because to the House his approval thereof. West had better think again. The head- what happens in Italy has con- Pursuant to clause 1, rule I, the Jour- line on the front page of the New York sequences for NATO, Europe, and ulti- nal stands approved. Times recently read ‘‘Fear of a Com- mately the rest of the world.

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H3583 H3584 CONGRESSIONAL RECORD — HOUSE April 18, 1996 STOP CODDLING CRIMINALS TIME TO RAISE THE MINIMUM ALLOW VOTE TO RAISE MINIMUM WAGE WAGE (Mr. TRAFICANT asked and was given permission to address the House (Mr. GENE GREEN of Texas asked (Ms. DELAURO asked and was given for 1 minute.) and was given permission to address permission to address the House for 1 Mr. TRAFICANT. Mr. Speaker, I the House for 1 minute and to revise minute and to revise and extend her re- thought I heard it all. Richard Allen and extend his remarks.) marks.) Ms. DELAURO. Mr. Speaker, the Davis, the murderer of 12-year-old Mr. GENE GREEN of Texas. Mr. House Republican leadership continues Polly Klaas, now says, yes, I killed her. Speaker, you just heard it and the to pursue policies that hurt America’s I admit I killed her, but I did not rape American people heard it. The Repub- licans are talking a lot about working working families. her. Just look at their continued opposi- Check this out. Davis abducted 12- families, but it is time that they did more than just talk about it. It is time tion to the minimum wage. Even year-old Polly Klaas from her own though the typical minimum wage home. She was later found with her they decided to actually raise the minimum wage. worker is a woman in her twenties who miniskirt above her waist and her skull is often the sole wage earner in the completely separated from her body. Seventy percent of Americans believe that the minimum wage must be in- family, the House Republican leader- Now Davis is ready to admit the mur- ship continues to dig in its heels in op- der, but he said ‘‘I didn’t rape her.’’ creased. Now at least 20 Republicans are backing the increase in the mini- position to raising the minimum wage Only as a ploy to avoid the death mum wage. It is time, Mr. Speaker, by a mere 90 cents from its 40-year low. The fourth-ranking House Repub- penalty, Mr. Speaker. Unbelievable. that we bring this to a vote. lican said yesterday that raising the Davis should not live to see the month Yesterday the Democrats on our minimum wage ‘‘is horrible economic of May. And I say instead of free health Committee on Economic and Edu- policy.’’ And the Republican majority care for Davis, free television for cational Opportunities asked our chair- Davis, free food for Davis, Davis should leader says he would fight the mini- man of the committee to hold hearings mum wage, ‘‘with every fiber of my only get one thing free from the Amer- on the minimum wage. Democrats un- ican taxpayers: 50,000 volts. being.’’ derstand that the purchasing power of But despite their rock-like resist- And it is time for Congress to stop the minimum wage will soon be the murdering our country by coddling ance, the Republican leadership can no lowest it has been in 40 years. longer duck voting to increase the min- criminals and letting the Constitu- American families are working hard tion’s amendments be used to get imum wage. to get ahead, but it is tough to get by Stop toying with the lives of Ameri- around the death penalty. when working full-time does not even ca’s hard working families. Let us have pay to get off welfare. An increase of a vote to raise the minimum wage. f $0.90 means an additional $1,800 a year f in the pockets of full-time workers. HOW TO DO THE RIGHT THING Republicans have an opportunity to STRANGE COMPASSION join us in helping America’s working (Mr. KINGSTON asked and was given (Mr. BAKER of California asked and families. It is time to pass the mini- permission to address the House for 1 was given permission to address the mum wage increase bipartisanly. minute and to revise and extend his re- House for 1 minute.) marks.) Mr. BAKER of California. Mr. Speak- f Mr. KINGSTON. Mr. Speaker, with er, I could not agree more with the middle-class families paying 38 to 44 gentleman from Ohio [Mr. TRAFICANT]. AMERICANS DESERVE TAX RELIEF percent of family income in taxes, the That tragedy occurred in California; (Mr. BALLENGER asked and was claim that the era of big Government the trial has gone on long enough. Let is over is utterly absurd. Think about us commence the execution. given permission to address the House for 1 minute.) it: 38 to 44 percent of middle-class family income goes to taxes. That means Mr. Speaker, the American people in- Mr. BALLENGER. Mr. Speaker, for that the purpose of the second job in herently know that the Federal Gov- nearly 4 years now Bill Clinton has the household is to pay for taxes, ernment has no problem spending promised a middle-class tax cut. He which means you may think that your money. This Government has created a promised a tax cut in the presidential spouse is a computer operator or real $5 trillion national debt, which will be campaign and he throws the words estate agent or insurance agent or paid off by our children, grandchildren, ‘‘tax cut’’ around at opportune times. whatever, but the truth is your spouse and great-grandchildren. It has created But his actions speak louder than his is a government employee, working for a bureaucracy so large that almost words. the Government simply to pay taxes. every aspect of your life is somehow By a single vote, Bill Clinton touched by it, either through regula- It got worse in 1993, when the Presi- rammed through the last Congress the dent increased the gas tax 4 cents a tion or through taxation. largest tax increase in history. Then, Since the Republicans took over Con- gallon, increased Social Security tax, earlier this week, 88 percent of his and increased taxes on small business. gress, we may not have done every- party opposed requiring a two-thirds thing we want to accomplish, but we The Republican plan tried to counter supermajority to raise taxes. Increas- this with a $500 per child tax credit, an have done one thing very important: ing taxes on hardworking Americans We have changed the debate. It is not adoption tax credit, and a senior de- should be as difficult as completing the pendent tax credit. But the President whether we should do the right thing, tax forms. it is how to do the right thing. vetoed that. What really gets me about Bill Clin- Think about this: We have got a For 40 years Congress has been domi- ton’s veto of tax relief is that taxes not Democrat Party who is telling the nated by the liberal impulse to spend only hit Americans in the wallet, but American people, ‘‘We are compas- more and tax more. Hopefully that phi- also in the home and family. The cur- sionate because we want you to get 90 losophy has been laid to rest. The Re- rent tax system makes Americans cents more an hour, but we are against publicans will continue to fight for the work harder, take second jobs, and put the $500 per child tax credit offered by kind of change demanded by the Amer- in longer hours just to meet their tax the Republican Party.’’ ican people in the 1994 elections, be- burden. Not only is the Government That is real compassion, comrades, cause it is wrong to steal from our chil- taking Americans’ money, it is essen- real compassion. dren and our grandchildren, no matter tially taking the precious time they f how compassionate it might be. would normally spend playing with Mr. Speaker, let us kill the tax-and- their children, going to PTA or church THE NRA; AN ORGANIZATION WITH spend philosophy, the minimum wage functions, or volunteering in their NO SHAME philosophy, to spend through regula- communities. Higher taxes have be- (Mr. SCHUMER asked and was given tion. come a tax on free time too. permission to address the House for 1 April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3585 minute and to revise and extend his re- school uniforms. You do not like it? I names into bilingual education class- marks.) guess you must be a member of the rooms. Six years later, David’s parents Mr. SCHUMER. Mr. Speaker, tomor- greedy rich. Then the President vetoes had to sue the Bushwick School Dis- row is April 19, the anniversary of the a bill to give tax relief to working peo- trict in order to win the right to take worst terrorist attach in U.S. history, ple. him out of his bilingual classroom. You the bombing in Oklahoma City. Timo- Mr. Speaker, it is time to cut taxes. see, after 6 years David still couldn’t thy McVeigh, the person accused of the f read English. bombing, chose April 19, because that Help me stop these tragedies from oc- is the day the standoff with the Branch AMERICANS DESERVE A RAISE IN curring. Cosponsor H.R. 739, the only Davidians at Waco ended. THE MINIMUM WAGE bill that will dismantle the bilingual April 19 has become a holiday to (Ms. MCKINNEY asked and was given education bureaucracy. David and his some paranoid extremists, a day that permission to address the House for 1 grandmother shouldn’t have to move to them symbolizes government’s sup- minute and to revise and extend her re- heaven and Earth to give David an opposed tyranny. So the National Rifle marks.) portunity to learn English. Association, a group that gives aid and Ms. MCKINNEY. Mr. Speaker, the 12 f comfort to this paranoia and extre- million Americans who earn the mini- RICHARD ARMEY: THE LEADER OF mism by comparing law enforcement mum wage aren’t the only ones calling THE CLUB to Nazis, deliberately chose this day to for an increase. In fact, 71 percent of hold their annual conference. Republican voters also support an in- (Mr. SAWYER asked and was given While most Americans will spend crease in the minimum wage. permission to address the House for 1 April 19 respecting the memory of Moreover, 15 House Republicans are minute and to revise and extend his re- those who died in Oklahoma City, the calling for a $1 increase in the mini- marks.) NRA will be at their convention brag- mum wage over the next 2 years— Mr. SAWYER. Mr. Speaker, I guess it ging about their guns, thinking about that’s 10 cents an hour more than what was in all the papers, but I had to see AK–47’s and their Uzis, instead of even the President is calling for. it to believe it. With the Speaker de- mourning the 169 people who died. So, Mr. Speaker, why is it that the voting more time to campaigning, they Simply put, the NRA leaders are Republican leadership refuses to even said the majority leader would be tak- thumbing their noses at the memory of allow a debate on the minimum wage? ing over the day-to-day management of those who died at Oklahoma City. Well, it is because they don’t even be- the House and that there would be big It is disgusting that the organization lieve that there should be a minimum changes. that called law enforcement storm wage, period. In fact, the majority And so there have been. We return to troopers and jackbooted thugs is hold- leader is on record as saying that he find a whole new way of legislating: ing their convention tomorrow. The will oppose a minimum wage increase not by hearings and committee work, NRA is truly an organization with no with every fiber of his being. That’s but by special theme weeks like, the shame. strong language coming from someone ‘‘Era of Big Government Is Over f who earns over $100,000 a year. Week,’’ ‘‘Defending America Week,’’ Mr. Speaker, America deserves a and—I am not making this up—‘‘Indi- THE OPPRESSIVE FEDERAL TAX vidual Freedom Versus Government BURDEN raise and it is time that we gave it to them. Bureaucracy Week.’’ (Mr. CHABOT asked and was given It kind of reminds me of 40 years ago f permission to address the House for 1 when we would come home from school minute and to revise and extend his re- b 1015 to enjoy Jimmy, Cubby, and Annette marks.) as they romped through ‘‘Circus Day,’’ COSPONSOR H.R. 739, THE ONLY Mr. CHABOT. Mr. Speaker, this is ‘‘Talent Roundup Day,’’ and BILL THAT WILL DISMANTLE the week that we are reminded by the everybody’s favorite, ‘‘Anything Can THE BILINGUAL EDUCATION April 15 filing deadline just how oppres- Happen Day!’’ sive the Federal tax burden is in this (Mr. ROTH asked and was given per- So it must be true. There are big country. But Tax Freedom Day, the mission to address the House for 1 changes. And when people ask the mu- day on which the average working per- minute and to revise and extend his re- sical question, ‘‘Who’s the leader of the son gets to stop working for the Gov- marks.) club that’s made for you and I?’’ ernment and begin working for them- Mr. ROTH. Mr. Speaker, I want to We can answer: R-i-c-h-a-r-d A- selves and their families, does not tell you about a young boy named r-m-e-y. come until May 7 of this year, the lat- David. He lives in New York City and f est date ever. goes to public school in Brooklyn. Working people in this country are David is like millions of other school INTRODUCTION OF THE CHILD being abused and ripped off by our Gov- age children across this country, ex- PILOT SAFETY ACT ernment. If any taxpayer has the au- cept for one thing: He is being robbed, (Mr. DUNCAN asked and was given dacity to complain about the ripoffs, his grandmother says, of his oppor- permission to address the House for 1 he or she is immediately labeled as a tunity to learn. minute and to revise and extend his remember of the so-called greedy rich. How can this be, you ask? Well, be- marks.) The Government takes money out of cause David has been trapped in a bi- Mr. DUNCAN. Mr. Speaker, as chair- the pockets of working people so it can lingual education classroom for the man of the Subcommittee on Aviation subsidize big corporations to advertise past 6 years. of the Committee on Transportation their products overseas. You do not I first learned about David through a and Infrastructure, I am introducing like it? I guess you must be a member story his grandmother Ada wrote in legislation today, along with the rank- of the greedy rich. The Government the New York Times. Her account of ing Democrat, the gentleman from Illi- takes money out of the pockets of the problems David encountered in his nois [Mr. LIPINSKI], and others that ad- working people to subsidize big agri- bilingual class is a cautionary tale of dresses the issue of child pilots. business and inflate the cost of sugar, public policy failure and bureaucratic One week ago today, 7-year-old Jes- peanuts, and cotton. You do not like excess. sica Dubroff, her father and flight in- it? You must be a member of the David and his mother speak English structor were killed when attempting greedy rich. The Government takes at home, and he grew up speaking Eng- to set an age record that would have money out of the pockets of my people lish with his friends. Yet when he en- made Jessica the youngest pilot to fly in Cincinnati, money that should be tered grade school, he was placed into across the United States. Mr. Speaker, going to educate their own kids, and a bilingual program. You see, David’s I encourage parents to spend time with the Government uses that money to last name is Jimenez, and the Brook- their children, teach them new things, pay a bunch of bureaucrats here in lyn school bureaucrats reflexively and expose them to new ideas and chal- Washington to write manuals about place every child with Hispanic sur- lenges. Unfortunately, though, some H3586 CONGRESSIONAL RECORD — HOUSE April 18, 1996 parents become obsessed with pushing expenses. Americans that care for an tion. Unions tell me that purchasing their children up the ladder of success elderly relative in their home could power is at an all-time low because of or notoriety at too early an age, and have benefited from a $1,000 elder care inflation, and yet that is what the often common sense is displaced by deduction. If Americans paid a tax on problem is and we want to raise the greed and recklessness. capital gains from selling their house minimum wage. Mr. Speaker, this legislation will im- or other asset, they paid twice as much Well, 75 percent of the people on min- pose an age limit on any person at- as you should have. imum wage are students. Most of them tempting to set a record with an air- Under the Balanced Budget Act, mil- in minority communities. That is the craft. This legislation will stop the lions of middle-class American families area that is hit the worst when we in- type of ridiculous publicity stunts that could have benefited from these tax crease the minimum wage, the minor- needlessly killed Jessica last week. cuts, except for one man. Mr. Speaker, ity communities—6.5 percent of the Had she been successful, next year we taxpayers need to remember that people on minimum wage are heads of would have seen a 6-year-old or a 5- President Clinton vetoed all of these households. year-old trying to break this record. middle-class tax cuts and a 7-year bal- Now, we have tried to help the work- Twenty-three similar accidents have anced budget. ing poor, the heads of households on happened in the last few years involv- f minimum wage, with an earned income tax credit, actually putting more ing child pilots. RAISING THE MINIMUM WAGE IS money into their pocket, and it is not This legislation will not result in any THE DECENT THING TO DO inflationary. That was vetoed by Mr. cumbersome regulations, and I encour- Clinton. We also had a $500 per child age my colleagues to cosponsor this bi- (Mrs. CLAYTON asked and was given tax credit, which would have put more partisan legislation. permission to address the House for 1 minute and to revise and extend her re- money in the pockets of the working f marks.) poor. Mr. Clinton vetoed it. Neither of RAISE THE MINIMUM WAGE NOW Mrs. CLAYTON. Mr. Speaker, indeed them inflationary, neither of them eating into the wages of working Ameri- (Mr. LEWIS of Georgia asked and was it is time to raise the minimum wage. cans and the working poor. given permission to address the House What is the argument that we hear the Republicans saying as to why we It is time for Congress to do the right for 1 minute and to revise and extend thing for the working poor and the his remarks.) should not raise the minimum wage? They say when we do that we will re- working families. Oppose the minimum Mr. LEWIS of Georgia. Mr. Speaker, wage. the Speaker of the House has report- duce the opportunity for jobs; that, in f edly said that the House can ‘‘no fact, there are not a lot of people who are working at minimum wage, only longer duck’’ a vote on the minimum RAISING THE MINIMUM WAGE teenagers. wage. It’s about time, Mr. Speaker. WILL NOT CAUSE INFLATION IN Mr. Speaker, that is a false premise. AMERICA Why have you been ducking for so long. In fact, two-thirds of the minimum The minimum wage is at a near 40- wage earners are families with adults (Mr. FLAKE asked and was given year low in real terms. People earning who are trying to support a livable in- permission to address the House for 1 the minimum wage deserve the right to come providing decent food, shelter, minute and to revise and extend his re- a livable wage. No one can live on $4.25 clothing. That is the basis for the mini- marks.) an hour, much less support a family. Mr. FLAKE. I find it the height of mum wage, a living wage. Republican Majority Leader DICK Also, Mr. Speaker, it was said that if hypocrisy when Members of this body ARMEY has said he will fight an in- we do that, the economy will suffer. making $113,000 a year stand before the United States of America and proclaim crease in the minimum wage with Why would it suffer? Where will that that persons who are making $4.25 an ‘‘every fiber in his being.’’ While cor- money go? As soon as the money comes hour, if we move it beyond $5, that will porate CEO’s earn 212 times the wage in, it will go for food and shelter. It cause inflation in America. of the average worker, Republicans goes right back into there. What hap- would deny the poorest workers in Let me tell my colleagues what pened when the minimum wage was causes inflation in America. The hun- America a modest increase in the mini- raised the last time? We did not have mum wage. This is not right, it is not dreds of people who are CEO’s of major great inflation. That did not happen. corporations collecting millions of dol- fair, and it is not just. Who are we protecting? We are pro- Stop the stonewalling, Mr. Speaker. lars, getting their golden parachutes tecting the rich. That is the issue here. and moving out to their various places, Let’s raise the minimum wage now. Are we equally concerned for those at People deserve the right to earn a liv- moving jobs outside this country so the bottom of the scale as we are con- that they can benefit by low wages able wage. cerned about the 5 percent we are will- f from persons who are not Americans ing to give big tax breaks? and yet shipping back to America the WHAT HAPPENED TO OUR MIDDLE- The minimum wage is the decent products they produce and selling them CLASS TAX CUT? thing to do. It is also the economical at the highest possible price. thing to do. It is the fair thing to do. (Mr. BARTLETT of Maryland asked If we want to talk about who de- The American people want a minimum serves it, it is not the persons who are and was given permission to address wage. We should do that. the House for 1 minute and to revise at the top but the persons at the bot- f and extend his remarks.) tom, many of them working every day Mr. BARTLETT of Maryland. Mr. PRESIDENT CLINTON VETOED still impoverished. How can we justify this in a Nation where we dare to ex- Speaker, millions of Americans are MEASURES THAT WOULD HAVE HELPED MINIMUM WAGE EARN- port our democracy? asking this week, Mr. President, what We should be ashamed of ourselves. ERS happened to our middle-class tax cut? We should talk more fairly about all of Twenty-nine million American families (Mr. TIAHRT asked and was given our citizens and how we can bring them could have enjoyed a $500 per child tax permission to address the House for 1 up. We cannot do it by giving to those credit. Three and a half million lower- minute and to revise and extend his re- at the top and taking from those at the income American families could have marks.) bottom. I hope that our Congress will had their Federal income tax burden Mr. TIAHRT. Mr. Speaker, we are realize this and the American citizens completely eliminated because of the talking about raising the minimum will realize the game that is being $500 per child tax credit. Twenty-three wage because it is at a 40-year low? played. million American couples could have Well, we have raised the minimum f received relief from the marriage tax wage several times, and yet it is still penalty through a higher standard de- at a 40-year low. I do not think it is LEGISLATION CREATING THE duction. One hundred thousand Amer- working. AMERICAN DISCOVERY TRAIL ican families could have benefited from Common sense is not working, be- (Mr. BEREUTER asked and was a $5,000 credit to assist with adoption cause historically it does push infla- given permission to address the House April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3587 for 1 minute and to revise and extend confrontational and not coddle the tribute to Commerce Secretary Ron his remarks.) Russians on these very important is- Brown and all of the Americans who Mr. BEREUTER. Mr. Speaker, on sues. lost their lives in that awful tragedy Tuesday, this Member introduced legis- f on April 3 while they were all serving lation to designate the American Dis- their country on a mission to Bosnia. I covery Trail as a component of the Na- TRIBUTE TO SECRETARY RONALD am pleased that we are able to make tional Trails System. The bill, H.R. H. BROWN AND AMERICANS WHO this a bipartisan resolution, in fact, a 3250, also creates a new category in the LOST THEIR LIVES ON MISSION resolution of all the Members of the system—National Discovery Trails. TO BOSNIA House. For when a highly and distin- The bill is already supported by a Mr. GEPHARDT. Mr. Speaker, I ask guished member of the U.S. Cabinet is bipartisanly balanced 44 cosponsors. unanimous consent for the immediate killed overseas for the first time in This legislation represents an excit- consideration in the House of the reso- American history, when we lose an ining step forward in the development lution (H. Res. 406) in tribute to Sec- dividual, and individuals of such ex- and connection of trails in the United retary of Commerce Ronald H. Brown traordinary ability and achievement, States. The multiuse ADT provides the and other Americans who lost their when we lose so many other dedicated connections which are needed to link lives on April 3, 1996, while in service business leaders and public servants, existing trails and create a backbone to their country on a mission to members of the Commerce Depart- for the National Trails System. While Bosnia. ment, members of the U.S. Air Force, stretching from the Atlantic to the Pa- The Clerk read the title of the resolu- it is not a partisan tragedy, it is truly cific, it connects large cities and small tion. a tragedy for all of our citizens and all communities with forests and remote The SPEAKER pro tempore (Mr. of our country. areas. QUINN). Is there objection to the re- In the week since Ron Brown’s death, The American Discovery Trail will quest of the gentleman from Missouri? it has already become a cliche to speak provide outstanding, family oriented There was no objection. of his brilliant political and public recreation for all Americans. It will The SPEAKER pro tempore. The service career. Of his pioneering role as also offer important economic develop- clerk will report the resolution. chairman of the Democratic Party and ment opportunities to the communities The Clerk read as follows: his efforts to almost single-handedly redefine the Commerce Department along its route. H. RES. 406 The ADT also takes into account pri- and its mandate. For those of us who Whereas Ronald H. Brown served the Unit- vate property concerns since almost all ed States of America with patriotism and considered Ron a friend, as I did, it is of the trail is on public lands. The few skill as a soldier, a civil rights leader, and reassuring to know that the country exceptions are in locations where there attorney; remembers him as fondly as we do. But are existing rights-of-way or agree- Whereas Ronald H. Brown devoted his life when there are so many tangible ments with existing trails or by invita- to opening doors, building bridges, and help- achievements to celebrate in a man’s tion. The bill also mandates that no ing those in need; life, it becomes harder to recognize lands or interests outside the exterior Whereas Ronald H. Brown lost his life in a what is less tangible but perhaps as boundaries of federally administered tragic airplane accident on April 3, 1996, more important. while in service to his country on a mission To me, there is a simple reason why areas may be acquired by the United in Bosnia; and States solely for the American Discov- Whereas thirty-two other Americans from Ron Brown broke down so many bar- ery Trail. government and industry who served the Na- riers in so many areas and shattered so The American Discovery Trail is nation with great courage, achievement, and many preconceptions, about politics, tional in scope, but it is made possible dedication also lost their lives in the acci- race, and America’s place in the world. by the grassroots efforts on the State dent: Now, therefore, be it For all of his practical and political and local level. This Member urges his Resolved, That the House of Representa- talents, Ron Brown was an idealist, colleagues to support these local ef- tives pays tribute to the remarkable life and pure and simple. His goals for himself, career of Ronald H. Brown, and it extends his party and his country were always forts by cosponsoring the American condolences to his family. Discovery Trail bill. Be it further resolved, That the House of based on what should be and not on f Representatives also pays tribute to the con- what others thought could be. This is a tributions of all those who perished, and that rare quality in any of us, in a politi- PRESIDENT CLINTON SHOULD BE we extend our condolences to the families of: cian, a rate quality in a human being. TOUGH AND CONFRONTATIONAL Staff Sergeant Gerald Aldrich, Duane Chris- But it is why so many people loved and WITH MR. YELTSIN tian, Barry Conrad, Paul Cushman III, Adam respected Ron Brown and were so often (Mr. ROEMER asked and was given Darling, Captain Ashley James Davis, Gail willing to abandon their own goals and permission to address the House for 1 Dobert, Robert Donovan, Claudio Elia, Staff egos to work with him for a higher pur- Sergeant Robert Farrington, Jr., David Ford, minute and to revise and extend his re- Carol Hamilton, Kathryn Hoffman, Lee pose. marks.) Jackson, Steven Kaminiski, Katheryn Kel- Mr. Speaker, much has been said in Mr. ROEMER. Mr. Speaker, today logg, Technical Sergeant Shelley Kelly, recent days about Ron Brown’s ability the President of the United States James Lewek, Frank Maier, Charles to heal divisions, to reconcile views, to travels to Russia. I would hope that the Meissner, William Morton, Walter Murphy, focus on what unite people rather than President would not pose for photo op- Mathanial Nash, Lawrence Payne, Leonard on what divide them. He truly believed portunities with Mr. Yeltsin but would Pieroni, Captain Timothy Shafer, John that you could always accomplish more instead be very tough and very Scoville, I. Donald Terner, P. Stuart Tholan, by working together, by bringing oth- confrontational on three important is- Technical Sergeant Cheryl Ann Turnage, ers along with you. That is one reason Naomi Warbasse, and Robert Whittaker. sues to America: SEC. 2. The Clerk of the House shall trans- why he nurtured so much talent in so First, the ongoing war in Chechnya mit a copy of the resolution to each of the many other people throughout his ca- that is killing thousands and thou- families. reer. As party chairman, he really did sands of people each month. We need to bring the Democratic Party together, b bring an end to that war immediately. 1030 something that is hard to do, some- Second, the New York Times re- The SPEAKER pro tempore (Mr. times almost one person at a time. cently reported a secret project going QUINN). The gentleman from Missouri To see the depth of his empathy and on in the Ural mountains in Russia. We [Mr. GEPHARDT] is recognized for 1 understanding, to see how far he would need to find out more about that. hour. go to understand people who disagreed Third, renegotiating the space sta- Mr. GEPHARDT. Mr. Speaker, I yield with him and opinions and then to find tion on the part of the Russians could myself such time as I may consume. In the common ground between them was cost the American taxpayers several a moment, I will yield to the distin- to see the very essence of leadership. hundreds of millions of dollars. I would guished Speaker of the House. Commerce Secretary Ron Brown dra- hope the President, in a policy of en- Mr. Speaker, I rise this morning with matically expanded his mandate, rein- gagement, would be tough and great sadness to offer a resolution in vigorating the foreign commercial H3588 CONGRESSIONAL RECORD — HOUSE April 18, 1996 service and becoming a real booster of a number of Americans serving their dom, to the willingness they had to U.S. exports on a scale that we have country, serving the cause of freedom, serve their country, and that our of- never seen before. He poured all of his seeking to help a war-torn region who fices and our doors are open, both to passion and energy in his work at Com- found themselves willing to take real Secretary Brown’s family, but equally merce, as he had at the Democratic risks. This tragedy is a reminder that important, to the family of every Committee, and I always admired the service in our armed services and at American who was on that airplane, to aggressive way in which he led that de- times service to our country is poten- the family of every person who died in partment, even in the face of criticism. tially dangerous and requires of our service to their country. Mr. Speaker, our country could use citizens a willingness to put duty above Again, I thank my friend for offering more Ron Browns, for he pushed bound- pleasure and to put country above self. this resolution which I so strongly sup- aries, broke down barriers almost in- Mr. Speaker, Secretary Ron Brown is port and which I would hope the House stinctively, intuitively as if he simply the first Cabinet Secretary killed on will pass unanimously in just a few refused to acknowledge that they were duty in over 150 years. I think it was an minutes. there in the first place. Perhaps in that enormous shock to all of us to be re- Mr. GEPHARDT. Mr. Speaker, I sense, we can find a shred of meaning minded of the dangers traveling around thank the Speaker for that fine state- in Ron Brown’s death, because no risk, the world that can affect those who ment and urge all the Members to vote no naysayers could ever have kept him serve even in civilian posts. I knew Ron for this resolution. from exploring new terrain, for reach- Brown as a competitor. We did not Mr. Speaker, I ask unanimous con- ing new challenges, and from trying to meet in the same planning meetings. sent that the gentleman from Michigan redefine the world in which we live. We were not involved in the same [Mr. DINGELL] be allowed to manage That he managed to do all of these things when he was chairman of the the remainder of the time. things in so few years is a powerful leg- Democratic National Committee, but I The SPEAKER pro tempore. Is there acy indeed. I also want to reach out on got to know him as somebody who was objection to the request of the gen- behalf of all of us to the families not brilliant, who was charming, who was tleman from Missouri? only of Ron Brown but all of the Amer- energetic and, maybe more important, There was no objection. icans who died in this terrible tragedy. who had a kind of creativity with a re- Mr. DINGELL. Mr. Speaker, I yield All of them together, in their own way, markable resilience. Whatever angle myself 2 minutes. were trying to do something very im- you came at Ron from, he came back Mr. Speaker, I first want to commend portant for the United States and for with a new idea, a new approach, new our distinguished minority leader and the world. The business people who intensity. He was a great competitor. I the Speaker for introducing this impor- were out there were out there to help think that both Lee Atwater before his tant resolution and for bringing it to rebuild an economy torn by war and death and Haley Barbour since have the floor in this expeditious manner. strife. found in Ron Brown a personal friend I am pleased to be a cosponsor of this Mr. Speaker, the truth is there was and somebody who shared their passion resolution, which pays tribute to Sec- no real profit to be made by these com- for democracy and shared their zest for retary of Commerce Ron Brown and panies. They were there on a mission of partisan competition. the other 33 Americans who lost their the United States to help the people of It is true that Ron Brown was at lives in the tragic airplane crash on Bosnia. Unlike maybe many of the times very controversial and a lot of April 3. other trade missions that Ron Brown questions were raised, a lot of charges In the past 2 weeks, we all have heard asked them to be on, this one was truly were made. Certainly, of all the Mem- the tremendous accolades paid to Sec- a mission of help. This was a mission of bers of the House, I may be the most retary Brown for his numerous con- altruism in the highest sense of the able to identify with being at the cen- tributions to this Nation. He was a business community and the people of ter of controversy at times. And I can great public servant, a loving husband this country. say that every time we would meet and and father, and a man who brought tre- So to the families of all of these peo- we would talk, there was a positiveness mendous enthusiasm, vision, humor, ple, whether it was business leaders, to his approach. There was an intensity and intelligence to every challenge he whether it is Ron Brown, whether it and a willingness to live out whatever accepted. was the Air Force people who were try- happened and whatever fights he was The country is much better off being to take them there, whether it was in, a willingness to move forward, to cause of Ron Brown. We have all heard the staff people at Commerce, I want to focus on getting things done that was the many tributes from American busi- reach out and deliver in as heartfelt a quite remarkable. ness leaders who have called him the way as we can the deep sympathy and At the Commerce Department, he best Secretary of Commerce in our Na- the feeling of gratitude and apprecia- traveled across the world, worked with tion’s history. These statements were tion that all of us have for all of these senior executives, did, I thought, re- made well before his tragic death. As people and their families. markably creative things to create Secretary of Commerce, Ron worked There is no way that any of us can American jobs through world sales. tirelessly and aggressively to create bring these lives back, but we can at And again and again he would put to- and protect American jobs. Under his least stand here today and on behalf of gether a team, they would go to a leadership, the Department delivered the American people give a heartfelt country and he would achieve break- more for less by making sensible in- condolence of sympathy and heartfelt throughs for American workers and for vestments in our communities, pro- thanks and appreciation for the sac- American sales that had not occurred tecting intellectual property rights, rifice of all of the people who died in before. In his last mission, as my good stimulating advances in technology this terrible tragedy. friend from Missouri was pointing out, and telecommunications, increasing Mr. Speaker, I yield such time as he Ron Brown was on a selfless venture to our competitiveness and exports, and may consume to the distinguished help those who needed help, to help providing essential weather forecast- Speaker of the House, the gentleman those who sought peace, recognizing ing, research, and environmental serv- from Georgia [Mr. GINGRICH]. that as Commerce Secretary, if he ices. Mr. GINGRICH. Let me thank my could help them begin to rebuild their I know many other Members with to colleague for yielding and let me thank economies, he might be able to begin speak this morning, so I will end by the minority leader for proposing this to rebuild their cultures, and they simply saying farewell and thank you resolution which I think every Member might be able to find a way to seek to my dear friend Ron Brown and by of the House will support and which I prosperity together rather than to de- extending my deepest condolences to think every Member of the House wish- stroy their region in war. his wife Alma, to his wonderful chil- es to reach each family touched by this I think we in the House want Ron dren, and to the families and friends of tragedy. Brown’s family and the families of all the other Americans who lost their The House, I believe, will want to ex- of those who died in this accident to lives in service to their country on tend condolences to every member of know that we are deeply grateful for April 3. The loss of their collective tal- every family to realize that there were the commitment they made to free- ents will be felt for years to come. April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3589 b 1045 creed. He did not internalize his hum- disagree with that, and Ron understood Mr. DINGELL. Mr. Speaker, I yield 5 ble beginnings. He made something out that, and we talked at great length minutes to the distinguished gentle- of each one. He did not relate himself about that. woman from Florida [Mrs. MEEK]. to the roles which society had defined I shared his interest in the National Mrs. MEEK of Florida. Mr. Speaker, for him and others like him. Marine Fishery Service, which was one first of all I would like to thank, as a He was an unifying and driving force of the many agencies under his charge representative of the Congressional to indicate to all of us what a public at the Department of Commerce, and Black Caucus, to thank the leader, the servant should be like. He knew what they did tremendous things, the Na- gentleman from Georgia [Mr. GING- it meant to be one. He put the needs of tional Marine Fishery Service, some- RICH], to thank our Speaker, and to say the American people ahead of his own. thing again that we had in common to our Speaker we thank him for bring- He lived for America, and ultimately, with my eastern Long Island district, ing in the bipartisan part of this reso- Mr. Speaker, he gave his life for Amer- and, as I have acknowledge, he has lution, and I thank him very much, ica. built tremendous bridges across the Speaker GINGRICH, for adding this di- So I want to thank this House for be- world on behalf of all Americans in the mension to this resolution. stowing this tribute on Ron Brown, and area of international trade particu- Secretary of Commerce Ron Brown on behalf of the Congressional Black larly, and during my last 15 months in and the other Americans who lost their Caucuss I would like to say, ‘‘Thank this body I have heard repeatedly, long lives on April 3 while in service to our you to all of you.’’ before the tragedy, of the tremendous country, they were true patriots, and Mr. DINGEL. Mr. Speaker, I yield 4 accomplishments of the Secretary of they deserve the honor which patriots minutes to the distinguished gen- Commerce, Ron Brown, in the area of should receive. tleman from New York [Mr. FORBES]. exporting. The Congressional Black Caucus Mr. FORBES. Mr. Speaker, I rise in So I rise today in support of the reso- thanks all of this House for represent- support of this resolution, and most lution. I extend to the family of Ron ing and paying a tribute to Secretary importantly I rise in support to cele- Brown, to his dear wife, Alma, and his Brown. We also want to thank Senator brate the life of the man that we knew children, Tracy and Michael, and to all BOB DOLE, who cosponsored the resolu- as Ron Brown. of the families of the 33 others whom tion in the Senate, and 98 of his col- I am a new Member of this body, we lost in the tragedy earlier this leagues properly and officially hon- going on my 15th month, and early in month, I extend our condolences, our ored, just as we are doing, Secretary my tenure Ron Brown reached out to heartfelt sympathies, and our prayers Brown and the other great Americans me as one of those new freshmen Mem- and thoughts are with all of you. who died in the service of their coun- bers, those Republican freshmen Mem- I stood in this well several evenings try. bers of the Congress, because Ron ago and made note of another individ- We pay tribute to Commerce Sec- Brown, above all else, was the kind of ual whom we lost in this tragedy from retary Ron Brown and the others. He man that built bridges, and, yes, we my district, young Gail Dobert, who was the 30th U.S. Secretary of Com- know his service as a great politician, served with Ron Brown in his chair- merce. He had been a strong and force- and I say that in the most reverent and manship of the Democratic National ful advocate for not only American decent sense because he understood Committee, and with excitement and business, but Ron Brown stretched all good politics, he understood the art of great promise went with him over to out to the byways and the ghettos of compromise and building bridges. the Department of Commerce and this country, and they all had a model Ron Brown was a people person, he served so ably to help build this inter- to follow, regardless of race, color, or was a good and decent man, and I am national presence that Ron made pos- creed. He was a beacon of hope for the so very honored to stand in this well sible. divergent messages that make up this with so many others who have come to So I rise in support of this resolution, country. revere and respect Ron Brown and to and I appreciate the House taking this Under Secretary Brown’s leadership, have called him my friend. time today to celebrate the life of Ron the Commerce Department became one Mr. Speaker, over the last 15 months Brown. He was a good and decent man. of the major success stories in the Clin- we spent many moments together, Mr. DINGELL. Mr. Speaker, I yield 3 ton administration. He launched a na- some of his more difficult personal mo- minutes to the distinguished gentle- tional export strategy predicated on ments. I was honored to have spent woman from Connecticut [Mrs. KEN- the very basic idea that American ex- some time over in his office with him, NELLY]. ports translate into jobs and opportu- and, Mr. Speaker, Ron Brown, as I said, Mrs. KENNELLY. Mr. Speaker, today nities for American business and work- was a tremendous individual, and he we honor a dear friend and a great ing people. In the pursuit of this strat- was a tremendous public servant. He leader, the late Commerce Secretary, egy, Secretary Brown conducted trade built the Commerce Department in a Ron Brown. mission after trade mission. way that I think few on either side of Every so often, fortunately, our He was a tireless worker or soldier in the aisle would dispute. It said that the country produces someone who re- the American Army. He had the vision work of Ron Brown has sowed the seeds minds us of the hope, energy, and opti- to see that beyond the horrors of war, for about $44 billion in new economic mism that are the very essence of behind the horrors of war-torn Bosnia opportunity for American businesses as being an American. Ron Brown was lay opportunities, not only for Amer- a result of his travels around the globe such a person. He was a vital man— ican business, but for the Bosnian peo- to build partnerships with other na- vital in his love of life, and vital in the ple. To be of service, he wanted to be, tions. energy that he brought to his work. and he did it as well as to engage in As I said, he was a good and decent Those of us who had the joy of work- commerce. man, and we shared something else in ing with Ron Brown know the total Ron Brown was a common man with common: our love for a place on east- dedication he brought to any job. an uncommon touch who, while fight- ern Long Island called Sag Harbor, and Verve, style, and sheer energy were his ing against this Nation’s injustices, he spent many wonderful private mo- hallmarks. also believed he could be bettering this ments there with his dear wife, Alma, But beyond that dazzling surface lay Nation and that all people could be lift- and with his children. an intellect of great depth in under- ed up to reach their highest potential. Mr. Speaker, Ron Brown, as I say, standing the forces at work in the Because of Ron Brown, doors have been will be sorely missed. He was a man of world today. He knew that in an in- opened for many Americans that were good humor, good decency, and we creasingly complex and competitive never evern cracked before. reached out and spoke with each other world, Government officials must fight The Congressional Black Caucus is many, many times over the last 15 to gain a fair share of foreign projects grateful for Secretary Ron Brown’s leg- months. and markets for U.S. goods. So Ron acy, which he left to all of us. He came I disagree with some who think that, Brown pioneered commercial diplo- from humble roots, but he did not infor example, we should change the way macy. From his first day at the Com- ternalize his race or his color or his the Commerce Department is set up. I merce Department to his last tragic H3590 CONGRESSIONAL RECORD — HOUSE April 18, 1996 flight, Ron Brown proved himself to be of Susan Day, who grew up next door, Mr. DINGELL. Mr. Speaker, I yield 1 the best advocate American business and to Walter J. Murphy, who also minute to the distinguished gentleman ever had. Against the world’s toughest grew up in Glens Falls. from Pennsylvania [Mr. FOX]. competition, he championed our coun- They and Ron Brown were just 2 of Mr. FOX of Pennsylvania. Mr. Speak- try’s industries, workers, and products. the 33 decent human beings who were er, I rise in tribute today to a great He pioneered commercial diplomacy doing their part in trying to bring America, Ron Brown, who was an out- from his first day at Commerce to his peace and stability to that troubled standing father to Tracy and Michael, last, tragic flight. part of the world. a loving husband to Alma, a fine Cabi- Ron Brown proved himself to be a May God Bless them all. net secretary, a trusted adviser to strong voice for American business and Mr. DINGELL. Mr. Speaker, I yield 3 President Clinton, a champion of busi- for all Americans. Against the world’s minutes to the distinguished gentle- ness. He helped increase the growth of toughest competition, he championed woman from the District of Columbia this country’s companies and, as well, our country. His knowledge, his good [Ms. NORTON]. increased jobs; a goodwill ambassador will, and his commitment to this coun- Ms. NORTON. Mr. Speaker, I thank for the United States; a positive spirit; try will all be missed deeply. With my the gentleman for yielding this time to a modern-day Will Rogers. He never colleagues, I send my deepest sym- me, and I thank him for his leadership lost his cool. and his tribute to Ron Brown. pathy to his family. The world gave him lemons and he Seven Americans, seven public serv- But, Mr. Speaker, on a personal note, made lemonade; a role model for our ants, went down on that fated plane in I just want to speak about Ron Brown young people; for those who want to Bosnia. One of them was Ronald H. as I knew him. He had something that get involved in government, work for a Brown. He was my friend of 30 years always had me in awe. When Ron good candidate, work for a good cause, and my constituent. This was the city Brown talked to you, you thought he and work for your country, just like in which he was born, it is the city cared about you. Ron Brown did, a great American who where he lived out his life, it was the The last time I talked to Ron Brown we tribute today, and who will be city where he became known as both a was a week before he went on his trip. greatly missed. public man and a public servant. Mr. DINGELL. Mr. Speaker, I yield 2 My colleagues would have thought this Many of us will remember him also terribly busy man was waiting for my minutes to the distinguished gen- as a family man. The most poignant tleman from South Carolina [Mr. call. And my call was a request, an- photograph of Ron is the one with his other request of so many requests, to SPRATT]. twin grandsons. (Mr. SPRATT asked and was given take up part of his very important permission to revise and extend his re- time. b 1100 marks.) My sympathy to his family, my sym- What Ron meant to his son Michael Mr. SPRATT. Mr. Speaker, I proudly pathy to the United States of America, and his daughter Tracy is itself a sponsor this resolution because Ron because he is gone. model for how to be a parent in these Brown was a friend and a rare Amer- Ron, your thousands of friends are days when so many have lost that art. ican. He was African-American, but he going to miss you. Yet, this most busy of men was a won- transcended race and color. He was a Mr. DINGELL. Mr. Speaker, I yield 2 derful parent to his children. party leader, and one of the best be- minutes to the distinguished gen- Ron will be remembered as a breaker cause he resurrected our party, but tleman from New York [Mr. SOLOMON]. of barriers on one hand, and as an ex- there was nothing ever small or petty Mr. SOLOMON. Mr. Speaker, I thank traordinary innovator on the other. He or partisan about him. He had this the gentleman from Michigan, JOHN broke barriers that no man or woman enormous affinity for people, and he DINGELL, for being gracious with his before him had even attempted. This led by bringing people together, not by time, and I will only take just a couple was, I have to say, my colleagues, a splitting us apart. of minutes. black man who simply did not know When he came before our committee Mr. Speaker and colleagues, I rise as his place and refused to accept the no- to defend his embattled Commerce De- a conservative to pay tribute and give tion that there was one for him. So partment, he was a forceful advocate my sympathy to the family of Ron when it came time to resurrect the with the facts at his command, but he Brown. Democratic Party, it was Ron Brown made his case without a trace of rancor Ron Brown was a liberal. We rarely who stepped forward and said not ‘‘Not or resentment. He could do that be- shared the same philosophical views. me,’’ but ‘‘It must be me.’’ cause he sat there as the single best ar- But let me say to my colleagues there When he went to the Commerce De- gument for that embattled department. was no more trusted man in politics, in partment he said not ‘‘How do you do Ron Brown was a bridge-builder at a my opinion, than Ron Brown because this job?’’ but ‘‘I will do this job in a time when so many of our differences he really believed what he said. He was way it has never been done before.’’ So seem unbridgeable. His goodness and truly genuine. I think we really need to after he broke the barriers, he did his decency and his energy and charm learn from Ron Brown’s spirit. Even something much more important. He are assets we sorely need in the public though he was a partisan Democrat was a pioneer in turning around each of life of this country. We can ill afford to and I am a partisan Republican, we all those institutions. lose leaders like him, before his time, could meet with him, and when that It was Ron Brown who engineered the still in his prime. meeting was finished and when I was comeback of the Democratic Party in But in the broadest sense, we have walking out of the room, it felt like 1992, and it was Ron Brown who per- not lost Ron Brown, for he remains a walking out after having met with a fected the art of diplomacy, of com- lasting symbol of what America at its friend even though we might have dis- mercial diplomacy at the Commerce best can be. I extend to his family, and agreed. Department. Either one of these break- to the families of all those who per- That is the kind of man that Ron throughs, either one of these pioneer- ished in this tragic accident, my sym- Brown was. We need more people like ing efforts, would have left Ron’s name pathy and our gratitude for the selfless that in Government, we need more peo- written in the book of American his- service rendered our country in the ple like that in this House of Rep- tory. He wrote new pages wherever he cause of peace in a forlorn place. resentatives. We all, those of us who went. He wrote them in part because he Mr. DINGELL. Mr. Speaker, I yield 2 show emotion from time to time, could had it all. He was an extraordinarily minutes to the distinguished gen- take a lesson from Ron Brown because talented man, and because he under- tleman from Ohio [Mr. NEY]. he was truly a decent human being, stood the expanse of his talents, he (Mr. NEY asked and was given per- liked by so many people, including me. gave it all. mission to revise and extend his re- Our condolences also go out to all of Ron exemplified the best of our coun- marks.) the families of those who lost their try, the American spirit of optimism, Mr. NEY. Mr. Speaker, I thank the lives in the terrible tragedy including the refusal to recognize any limits. gentleman from yielding time to me. the families from Glens Falls, NY, my May our country also make that same Mr. Speaker, I also wanted to extend hometown, Claudio Elia, the husband refusal. on behalf of my district and, obviously, April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3591 all the Members of the House, condo- I was appointed to the Democratic politics. He went out of his way to help lences to the family of Ron Brown and National Committee [DNC] by Paul make my Exports Conference a success, all those who were aboard the airplane Kirk, largely at the behest of Ron and I happen to be a Republican. His that crashed in Bosnia. Brown, who shortly thereafter was cho- help with the Export Administration Also, Mr. Speaker, I wanted to point sen as the chairman of the DNC. As Act was invaluable. That bill will in- out that one of my constituents who Chair of the DNC, he is credited with crease our exports by $30 billion. was originally from Zanesville, OH, running a coordinated campaign, which Mr. Speaker, I just want the people Shelly McPeck Kelly, was aboard that not only elected Democrats to the Sen- of this body to know that when Ron plane. She leaves behind a loving fam- ate and House, but helped to elect Bill Brown went overseas, he worked hard. ily in Zanesville, OH. That would be Clinton President of the United States. When he went down with a number of her mother, Shirley Clark, and also her Shorty, thereafter, he was appointed CEO’s to Brazil, Chile, and Argentina, stepfather, Sam Clark, and several sib- Secretary of Commerce, where he did a he worked as many as 35 hours in a row lings. She also leaves behind a loving splendid job for the President and for briefing people, talking to people, and husband, Dennis, and two children, the country. trying to create jobs. Ron Brown did a Sean and Courtney. Ron Brown was the convention man- lot for the economy of this country, Shelly McPeck Kelly was to retire in ager for my father’s Presidential cam- and we are going to miss him. I thank 2 years from the Air Force. She paign in 1988, where he used his bridge- the gentleman for yielding me the achieved the rank of technical ser- building skills to close the gap between time. geant. She was a loyal and devoted wife progressives and the more conservative Mr. DINGELL. Mr. Speaker, I yield 2 and a loving mother. She served faith- members of our party. In many ways, minutes to the distinguished gen- fully her Government aboard a U.S. Air even more than business development, tleman from New Jersey [Mr. PAYNE]. Force plane, and also had previously that is Ron Brown’s legacy. He was a (Mr. PAYNE of New Jersey asked and served for the President aboard Air gifted bridge builder—bridging the gaps was given permission to revise and ex- Force One during the Bush administra- of human misunderstanding and fear; tend his remarks.) tion. and building human trust and under- Mr. PAYNE of New Jersey. Mr. I recognize her service to the coun- standing. Speaker, let me thank the gentleman try, and rise on behalf of the residents Mr. DINGELL. Mr. Speaker, I yield from Michigan [Mr. DINGELL] for han- of eastern Ohio to say that we want to 21⁄2 minutes to the distinguished gen- dling this resolution. commend Shelly McPeck Kelly for her tleman from Wisconsin [Mr. ROTH]. Mr. Speaker, last night we held a spe- service to the United States of America Mr. ROTH. Mr. Speaker, I thank the cial orders session to honor our friend during the Bosnia peacekeeping mis- gentleman for yielding time to me. and a great American hero, Ron Brown. sion, and just also say that the resi- Mr. Speaker, I got to know Ron I rise now to join my colleagues in sup- Brown because I serve on the Inter- dents of eastern Ohio join me in honor- porting this resolution paying tribute national Relations Committee, and being the memory of Shelly McPeck to this remarkable public servant. Kelly and send condolences to her fam- cause I also serve as Chairman of the As Secretary of Commerce, Ron ily, as we also send to the family of Congressional Travel and Tourism Cau- Brown was known around the world as cus. Ron Brown had a great sense of Ron Brown and the other devoted and a tireless crusader for fair and free humor. He was also a fellow that loyal Americans aboard that plane. trade. A skilled negotiator, he kept Mr. DINGELL. Mr. Speaker, I yield 2 helped Republicans. I hold an exports America’s interests in the forefront minutes to the distinguished gen- conference every year, and over 1,000 while winning the respect of our for- tleman from Illinois [Mr. JACKSON]. people come to that conference each eign competitors. Although Ron Mr. JACKSON of Illinois. Mr. Speak- year. Ron Brown was one of the key- Brown’s life was cut short, it was filled er, I thank the distinguished gen- note speakers at the conference 2 years with extraordinary achievements: U.S. tleman from Michigan [Mr. DINGELL] ago. for yielding this time to me, and for his As I said, he had a great sense of Army captain, vice president of the Na- forthright vision in honoring the late humor. When I spoke with him at the tional Urban League, chief counsel, Secretary of Commerce. White House Conference on Travel and Senate Judiciary Committee, partner Mr. Speaker, I rise this morning to Tourism, he said to me, ‘‘You know, in the law firm Patton, Boggs & Blow; join my colleagues in sponsoring this you are my favorite Republican.’’ I was chairman of the Democratic National resolution in honor of Secretary Ron really proud of that until someone told Committee, and his crowning achieve- Brown and the others who lost their me, Ron tells all the Republicans they ment, Secretary of Commerce. lives on Wednesday, April 3. The tragic are his ‘Favorite Republican’.’’ His dynamic energy was the force plane crash and death of Secretary of We have a travel and tourism bill de- that propelled the Commerce Depart- Commerce Ron Brown is a personal veloped from the recommendations of ment forward. He and his energetic loss, as well as a national loss of a the White House conference. The suc- young staff brought billions of dollars great public servant. In addition to cess of that bill is a testimonial to Ron of business home to the United States, being a professional colleague, I was a Brown, because we have 225 cosponsors transforming a lackluster Federal close personal friend, not only of Ron of that legislation. agency into a whirlwind of productive Brown, but of his entire family, his Ron and I also worked together on activity. We take a moment now to say wife Alma, his two children, Tracey another bill, the Export Administra- thank you, Secretary Brown, for being and Michael, and his brother Chip tion Act. For 17 years, Congress was both a dreamer and a doer. Your candle Brown. unable to put together an export ad- has not been extinguished; its light Our prayers are with Ron Brown’s ministration act. Then, I want to Ron continues to burn. family and with all of the families who Brown and said, ‘‘I have to talk to the Our deepest sympathy goes to his lost loved ones in this terrible trag- President about this.’’ Thanks to Ron loving family—his wife, Alma and chil- edy—Bill Morton, Carol Hamilton, Brown, I did have a chance to talk to dren Michael and Tracey and to the Duane Christian, Kathryn Hoffman, President Clinton three times on the families of all of those dedicated Amer- and the others. It is a reminder to all legislation. That bill has been reported icans who died on that fateful mission. of us to be good stewards of the time out of our full committee, and it is We will miss Ron. He was a true and talent that God has given us on waiting for a full House vote in May. American. He was an American who this Earth, and to use it to serve others Ron Brown was a great Democrat, said that we can do it. He opened the to the best of our abilities. and he worked hard for the party. I eyes of this world to what can be done I was with Secretary Ron Brown just think the loss of Ron Brown to Clinton with dedication. Thank you very much a couple of weeks ago at a breakfast is comparable to the loss of Lee for your service. meeting. He came up to me and con- Atwater to President Bush. That is my Mr. DINGELL. Mr. Speaker, I yield 2 gratulated me on my election to Con- opinion. That is how much I thought of minutes to the distinguished gen- gress. He said, ‘‘I am so proud of you.’’ Ron Brown. tleman from Connecticut [Mr. SHAYS]. The feeling was mutual, I was also Yes, he was the loyal opposition, but Mr. SHAYS. Mr. Speaker, I thank the proud of him. he knew when to put aside partisan gentleman for yielding time to me, and H3592 CONGRESSIONAL RECORD — HOUSE April 18, 1996 I thank my colleague, the gentleman Everything that we have been taught someone who has been so vibrant and been so from Connecticut [Mr. FRANKS], for let- in this country in our history deals wonderful to this country, as well as one who ting me go a bit out of order. with our relationship with England and would have such a great future that was taken away from him so abruptly. Mr. Speaker, I want to pay my sol- with Europe. But now that they have Secretary Brown dedicated his life to his emn and deep respects for Mr. Brown, their Common Market, we have to find country and, ultimately, died in service of it. who was an outstanding chairman of a other places to sell our goods: Central There is no greater love that one can have major political party, the Democrat America, South America, Africa, for one’s country than to die for it. Party, and an outstanding Secretary of China, all of these markets. And we Even though he died at a relatively young Commerce. He was someone who was have to do it in a way that we are not age, Secretary Brown’s accomplishments extraordinarily energetic. I never met were far greater than most people ever so hung up with our European connec- achieve at any age. with him when he was not upbeat and tion as much as we are with our human I realize the feelings of grief that you must excited and very dynamic. I wish to ex- being connection, and that was what feel at this tragic time. However, the love of press my condolences to his wife, Ron Brown was all about. your family and the warmth and sincerity of Alma, and to his two magnificent chil- Ron Brown saw despair. He saw the neighbors, friends and the many people of dren, Michael and Tracy. need for economic development. He our great country who are mourning the loss knew what a job would do for a person of Secretary Brown, will help sustain you in b 1115 the days to come. in terms of family values and dignity This resolution also honors the oth- I know that Secretary Brown’s memory and planning a family and having a will be cherished by the many people whose ers who died in this tragic plane crash place to live. When he went to these lives he touched and affected. in the former Yugoslavia, and I want to countries, he did not just see a place to My prayers are also being sent, Mr. pay particular respect to Robert Dono- sell airplanes. He saw the pain and the Speaker, to the other passengers who van, who was the president and chair- misery and the opportunity to help died in the crash, including the two man of ABB, and, a resident of Fair- build their economy, build friendships families from my State of Connecticut. field, CT. I also want to pay respect to and, of course, while doing that, to cre- Mr. DINGELL. Mr. Speaker, I yield 4 his magnificent wife Peg, and his two ate the jobs and the dignity and the minutes to the distinguished gen- children, Kara and Kevin. I learned a disposable income that would be nec- tleman from Maryland [Mr. HOYER]. lot from meeting with them after the essary for trade. Mr. HOYER. I thank my friend from death of their husband and father That is why when I have had the op- Michigan for yielding me the time. about the resilience of a great Amer- portunity and the honor to travel with Mr. Speaker, on April 3 of this year, ican family and how proud he could be him, that he never just stayed with the 33 bright and shining stars of America of his family. I want to pay respect for big shots. He always went out there lost their lives on a mission for their his service to West Point and to his with the beneficiaries, the poor, those Government. Whether they came from country. He was a true great American that sometimes seemed to be without the private sector, the armed services, patriot. hope. Even in South Africa, where he or public service as Ron Brown and his At this time I also want to pay my went to Soweto and spent more time colleagues from Commerce, they were respect to Claudio Elia, who was presi- than I would normally spend to see the all serving America and serving as a dent and chairman of Air and Water people in Soweto, to sing their national shining example to us, all of the best Technology. He was a recent citizen of anthem in his honor and his presence, that is within us. the United States, and I am told by his meant that he did more than just sell I, and a number of my colleagues, wife Susan and his children Mark and goods to these people. He was selling went to Dover Air Force Base to wel- Christine that their father would have the United States of America. come back the 33 caskets containing taken extraordinary joy, pleasure, and I hope those that have targeted the those bodies. Their souls, of course, admiration—they would have been so Commerce Department would realize had gone to God. But as we paid tribute proud to have heard the President of that Ron Brown electrified everybody to them as human beings and expressed the United States call him and the oth- in Commerce. They love their country our sorrow along with their families at ers who went on this dangerous mission and they love what they are going. their leaving, we listened to the Presi- great American patriots. I was in awe Whenever Ron Brown went overseas, dent’s eulogy which was appropriate of this family, the Elia family, in our embassies turned overnight into and, I thought, compelling. He said terms of my conversation and dialog being satellites of the Commerce De- that these 33 lives show us the best of with them, on how they dealt with the partment, and our business people, in- America, and indeed they did. And as death of their husband and father. stead of seeing staid diplomats and am- this resolution does, the President My respects to Mr. Brown and to bassadors, they saw those people that named each and every one of those 33. these two great families. were there making deals for them. Ron Brown was, as he was to so Mr. DINGELL. Mr. Speaker, I yield 3 I hope as this Congress moves for- many, my friend. I particularly re- minutes to the distinguished gen- ward and we have to go to the North member an incident where we were tleman from New York [Mr. RANGEL]. American free trade countries and we going to Los Angeles to speak, and he (Mr. RANGEL asked and was given have to go to China and Japan, that we had arrived at Dulles on an airplane, permission to revise and extend his re- really give other Americans the oppor- and I had gone there from here, and he marks.) tunities and change the complexion lit- had a very short connection. We got on Mr. RANGEL. Mr. Speaker, let me erally of the State Department, as the plane and we were flying to Los thank my friend from Michigan for Commerce has changed, and give Angeles, and he had to speak that managing this bill for my dear friend America a better chance to show how night at 5 o’clock and, lo and behold, Ron Brown. good we really are. his bags had not followed him and he One of the questions that I have Mr. DINGELL. Mr. Speaker, I yield 2 was in casual clothes. found most difficult to answer was minutes to the distinguished gen- Now, Ron Brown was not one to what made Ron Brown so different. I tleman from Connecticut [Mr. speak in casual clothes, as we will re- have to admit that I do not really have FRANKS]. call. Luckily, I had two suits in my the answer, but one of the things that Mr. FRANKS of Connecticut. I thank bag, so we went in the men’s room at I think that made him different was the gentleman from Michigan for yield- the Denver Airport, and there we were, the depth of which he loved this coun- ing me the time this morning. a black man and white man exchanging try and the fact that the country gave Mr. Speaker, I would like to read a suits and dressing to speak that night. him an opportunity to show just how letter that I sent to Alma Brown, Mi- I am sure a lot of people said, ‘‘What’s good he was. chael, and Tracy and the other mem- going on here?’’ When you think about that, you have bers of the Brown family: Ron Brown spoke that night, and he to take a look at the history of our It is with great sorrow that I write this let- said, ‘‘I’m Ron Brown, but this is country, where we were and where we ter of condolence to all the members of your STENY HOYER’s suit.’’ He was so ele- are going, and was Ron Brown not the extended family. Losing a family member is gant, I am sure that he thought my right guy at the right time. always difficult, particularly when it is suit was not quite up to his standards. April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3593 Ron Brown contributed greatly to land, help to heal a people of their hatreds, more than any other reminds us that life is this country in so many different ways. help to bring a better tomorrow through more than what we know, life is more than Yes, he was as shining an example of honest work and shared enterprise. They what we can understand, life is more than, what a Secretary of Commerce ought know what their country had given them and sometimes, even we can bear. But life is also they gave it back with a force, an energy, an eternal. For each of these 33 of our fellow to be as any in history, but he was optimism that every one of us can be proud Americans and the two fine Croatians that much more than that. He was, as so of. fell with them, their day on Earth was too many of my colleagues have indicated, They were outstanding business leaders short, but for our country men and women a representation of what America is all who gave their employees and their cus- we must remember that what they did while about and what its best instincts tomers their very best. They were brave the sun was out will last with us forever. produce. members of our military, dedicated to pre- If I may now, I would like to read the Ron Brown was indeed a happy war- serving our freedom and advancing Ameri- names of all of them, in honor of their lives, rior. He was the embodiment of the joy ca’s cause. their service and their families: There was a brilliant correspondent, com- Staff Sergeant Gerald Aldrich of politics. Ron Brown, for all the mitted to helping Americans better under- Ronald Brown young people of America, ought to be stand this complicated new world we live in. Duane Christian an example that there are no barriers And there were public servants, some of Barry Conrad too high, no mountains too hard to them still in the fresh springtime of their Paul Cushman III climb that should preclude you from years, who gave nothing less than everything Adam Darling accomplishing all that your character they had, because they believed in the nobil- Captain Ashley James Davis ity of public service. Gail Dobert and your energy and your commitment And there was a noble Secretary of Com- Robert Donovan will allow you to accomplish. merce who never saw a mountain he couldn’t Claudio Eli a The President of the United States, climb or a river he couldn’t build a bridge Staff Sergeant Robert Farrington, Jr. as he closed the eulogy in Dover on across. David Ford April 6, said this: All of them were so full of possibility. Even Carol Hamilton Today we bring their bodies back home to as we grieve for what their lives might have Kathryn Hoffman America, but their souls are surely at home been, let us celebrate what their lives were, Lee Jackson with God. We welcome them home. We miss for their public achievements and their pri- Stephen Kaminski them. We ask God to be with them and their vate victories of love and kindness and devo- Katherine Kellogg families. tion are things that no one—no one—could Technical Sergeant Shelly Kelly do anything but treasure. James Lewek The President said that we ought to These 33 lives show us the best of America. Frank Maier pray that God bless America. And God They are a stern rebuke to the cynicism that Charles Meissner did bless America. He did so through is all too familiar today. For as family after William Morton the lives of these 33 shining examples family after family told the Vice President Walter Murphy of the best of America. and Hillary and me today, their loved ones Lawrence Payne Mr. Speaker, I include the remarks of were proud of what they were doing, they be- Nathaniel Nash Leonard Pieroni the President on April 6 at this point lieved in what they were doing, they believed in this country, they believed we could make Captain Timothy Schafer in the RECORD. a difference. How silly they make cynicism John Scoville REMARKS BY THE PRESIDENT AND BRIGADIER seem. And, more important, they were a I. Donald Terner GENERAL WILLIAM J. DEDINGER, DEPUTY glowing testimonial to the power of individ- P. Stuart Tholan CHIEF OF CHAPLAINS, AT CEREMONY HONOR- uals who improved their own lives and ele- Technical Sergeant Cheryl Ann Turnage ING THE AMERICANS WHO ACCOMPANIED SEC- vate the lives of others and make a better fu- Naomi Warbasse RETARY OF COMMERCE RON BROWN TO CRO- ture for others. These 33 people loved Amer- Robert Al Whittaker ATIA ica enough to use what is best about it in Today we bring their bodies back home to BRIGADIER GENERAL DEDINGER. Let us pray. their own lives, to try to help solve a prob- America, but their souls are surely at home Almighty God, source of all comfort and con- lem a long, long way from home. with God. We welcome them home. We miss solation, we ask your blessing as we receive At the first of this interminable week, Ron them. We ask God to be with them and their the victims of this tragic accident. Though Brown came to the White House to visit with families. we walk through the valley of death and me and the Vice President and a few others. God bless you all, and God bless our be- grief, we fear no evil, for you are with us And at the end of the visit he was bubbling loved nation. Amen. with your comfort and consolation. You al- with enthusiasm about this mission. And he Mr. DINGELL. Mr. Speaker, I yield 1 ways prepare a table of refreshment for us, went through all the people from the Com- minute to the distinguished gentleman and surely your goodness and mercy will up- merce Department who were going. And then from Illinois [Mr. HYDE]. hold us in our grief and sorrow in these days. he went through every single business leader (Mr. HYDE asked and was given per- Help us always to remember these public that was going. And he said, you know, I’ve servants, ever mindful of their willingness to taken so many of these missions to advance mission to revise and extend his re- share their talents and wisdom, not only America’s economic interest and to generate marks.) with their own nation, but also with people jobs for Americans; these business people are Mr. HYDE. Mr. Speaker, I did not seeking to recover from the ravages of war. going on this mission because they want to have the honor of personally knowing May their example renew our personal vision use the power of the American economy to Ron Brown, but I knew him by reputa- of public service. Lord, give us this day a save the peace in the Balkans. tion and by watching him work with new hope, as we feel despair; new light, as we That is a noble thing. Nearly 5,000 miles flair and gusto in a very important job. sense darkness; deeper compassion, as we ex- from home, they went to help people build He was a great role model for every- perience loss. May this hope, this light, this their own homes and roads, to turn on the compassion heal the brokenness of our lights in cities darkened by war, to restore body. He was indeed a marvel. hearts and minds. the everyday interchange of people working One searches tragedies for some This we ask in you holy name. Amen. and living together with something to look meaning or for some glimmer of good. THE PRESIDENT. My fellow Americans, forward to and a dream to raise their own Out of Ron Brown’s tragic end and out today we come to a place that has seen too children by. You know, we can say a lot of of the deaths of his passengers, it many sad, silent homecomings. For this is things, because these people were many seems to me we can take comfort in where we in America bring home our own— things to those who loved them. But I say to the fact that he died as a public serv- those who have given their lives in the serv- all of you, to every American, they were all ant and elevated the category of public ice of their country. patriots, whether soldiers or civil servants or The 33 fine Americans we meet today, on committed citizens, they were patriots. service through his sacrifice and their last journey home, ended their lives on In their memory and in their honor, let us through his example. And those of us a hard mountain a long way from home. But rededicate our lives to our country and to who are very concerned about the low in a way they never left America. On their our fellow citizens; in their memory and in estate and esteem that public service mission of peace and hope, they carried with their honor, let us resolve to continue their has in people’s minds, it seems to me them America’s spirit, what our greatest mission of peace and healing and progress. can take some consolation. martyr. Abraham Lincoln, called ‘‘the last, We must not let their mission fail. And we God bless Ron Brown and his family best hope of earth.’’ will not let their mission fail. Our loved ones and friends loved their The sun is going down on this day. The and all of those on the plane. country and they loved serving their coun- next time it rises it will be Easter morning, Mr. DINGELL. Mr. Speaker, I yield 2 try. They believed that America, through a day that marks the passage from loss and minutes to the distinguished gen- their efforts, could help to restore a broken despair to hope and redemption, a day that tleman from Tennessee [Mr. FORD]. H3594 CONGRESSIONAL RECORD — HOUSE April 18, 1996 b 1130 Ron reached out to me and befriended I simply wanted to be one of the Mr. FORD. Mr. Speaker, I want to me, and for the past 12 years that Members who rose in support of this thank my friend from Michigan for friendship continued. resolution and to express my condo- yielding me 2 minutes. Most recently at home on a Sunday lences to the Brown family and the Mr. Speaker, I certainly want to sup- he called me to talk about preserving families of all the other brave Ameri- port the resolution that is before the the international trade functions at cans who lost their lives in this tragic House today in tribute to Secretary the Department of Commerce, a func- accident. Ron Brown and other Americans who tion that he exercised as well as any Mr. DINGELL. Mr. Speaker, I yield 2 met their untimely death. Secretary of Commerce in history, I minutes to my good friend and col- Ron Brown, and I really associate think better than any Secretary of league, the gentleman from Georgia myself first with all of the remarks Commerce in history. [Mr. BISHOP]. that have been made so far on this res- As Ron was so good at doing, he Mr. BISHOP. Mr. Speaker, history olution before the House, and we all reached out to me again and found will remember Ron Brown as one of the were saddened with the death of Ron common ground, in this case our mu- most dynamic, creative and brilliant Brown and others, for this Nation to tual back problems we were experienc- leaders to ever serve in a Presidential know that Ron Brown was a good pub- ing. Unfortunately, my back surgery Cabinet. These characteristics stand out lic servant, that Ron Brown not only kept me away from his funeral last strong and clear in the many articles served his Nation well, but I was a week. reviewing his career that were pub- neighbor of Ron Brown’s. That is true TOBY ROTH said he called him his fa- lished after the plane crash that took for Alma and Tracy, along with Mike vorite Republican, and apparently he called some other Republicans that. He his life and the lives of the staff Mem- and the two grandchildren. bers and business leaders accompany- Being a neighbor, I guess for the past never called me that, but he did call ing him on that fatal trip to the former 15 years here in the D.C. area, to know me his friend, and I cherish that, and Yugoslavia. Ron Brown and his family, and to see will cherish that forever. Mr. DINGELL. Mr. Speaker, I yield 2 One national magazine, Jet, featured and to watch how he was able to de- a number of photographs of Ron Brown minutes to the distinguished gentle- velop such a great family and a good at work. They showed Ron Brown in woman from Georgia [Ms. MCKINNEY]. support system for that family, and he China, in Japan, in South Africa, in Ms. MCKINNEY. Mr. Speaker, I rise was a good neighbor. Ron kept the Egypt, in Saudi Arabia, in Israel, in today in support of this resolution, and neighborhood upbeat. He was one who Gaza, in Russia, in Germany, in Chile, I would like to thank the Democratic was always available and had time for in Indonesia, and in Bosnia, just hours leader and the Speaker for bringing young people. before the crash on the mountain top. I can say that, because I have three this measure to the floor today. He seemed to be everywhere during First, I wish to extend my condo- sons myself, and my three sons have those few busy years he served as Sec- been somewhat raised in the presence lences to the Brown family and to the retary of Commerce, the first African- of Ron Brown, and to know of his lead- families of all those who went down on American to hold that office, even ership and to know of his character and that fateful flight. Their loss is our coming to the Second District of Geor- to know of his smartness. He was ex- loss, and America mourns the passing gia to deliver the commencement ad- tremely bright while he was there at of some of our best and brightest. dress at Albany State College. the law firm here in the District. Mr. Speaker, I personally admired In a span of less than 3 years, he He went on to become the chairman Ron Brown as a role model and as a made 15 trade missions to more than 25 of the Democratic National Commit- public servant. Moreover, his work countries. These trips produced a tee. Then I was on the plane with him touched the lives of my constituents record 80 billion dollars’ worth of new going to my hometown in Memphis who benefited from his vision of im- business contracts for U.S. made goods back in 1992, the end of 1992, when he proving the lives of working families and services. His work in foreign trade was called by the President-elect Clin- through investments and exports. led to a 26-percent increase in U.S. ex- ton to be offered a Cabinet slot in the Ron Brown exemplified everything ports. But he also worked to enhance administration. We had that 2-hour we as Democrats believe in and stand minority business enterprise in Amer- flight. He left Memphis and went to the for. His belief in the human spirit and ica and abroad. Little Rock area. the American dream permeated every Vice President GORE called him the But to hear him and listen to him, aspect of his life. His unwavering com- greatest Commerce Secretary in his- and to know he was about serving this passion and concern for the less fortu- tory. But it was not just political allies Nation, and to see Ron Brown as a cor- nate was the moral compass by which who recognized his extraordinary abil- porate giant, leading corporate Amer- he guided his work. As Democrats, we ity. Senator DOLE described him as a ican into other ventures throughout have lost one of our party’s finest. tireless advocate for American business the world, and to create jobs and to Mr. Speaker, it is not often that I get and a gifted leader. bring huge dollar amounts into this to meet the likes of a Ron Brown. Born in Washington, DC, and raised country, as a neighbor and as a friend Moreover, I am proud to have known in Harlem, Ron Brown was gifted at ev- and as a Member of this body, I would him and appreciate what he has done erything he did, as a student at say that he made a great contribution for my constituents, for my party, and Middlebury College and St. John’s Uni- to mankind, he made a great contribu- for my country. versity, as an Army officer in Germany tion to America, and Ron Brown will A young woman from Atlanta was and Korea, as an official and social be missed.We are certainly praying for also on that plane, Kathryn Hoffman. worker with the National Urban the family and other family members My condolences are extended to her League, as a senatorial aide and chief of the other deceased persons. family and to her friends. counsel for the Senate Judiciary Com- Mr. DINGELL. Mr. Speaker, I yield 1 I was recently asked by a journalist mittee, as chairman of the Democratic minute to the distinguished gentleman about the loss of Ron Brown, a black National Committee, as an attorney in from Ohio [Mr. PORTMAN]. leader. I corrected that journalist. Ron a leading law firm, and as Secretary of Mr. PORTMAN. Mr. Speaker, I thank Brown was an American leader. Commerce, and as a friend. the gentleman for giving me the oppor- Mr. DINGELL. Mr. Speaker, I yield Many of the articles about Ron tunity to speak. 30 seconds to my good friend and col- Brown’s career referred to him as a I was over at my office and I heard league, the gentleman from North trailblazer. This was certainly true, this, and I wanted to be here. Twelve Carolina [Mr. WATT]. and the trails he blazed brought jobs years ago, fresh out of law school, I Mr. WATT of North Carolina. Mr. and a more secure economy for all worked with Ron Brown as an inter- Speaker, all of those of us who were Americans. He will be sorely missed. national trade lawyer. At the time I friends of Ron Brown certainly have Mr. DINGELL. Mr. Speaker, I yield was doing volunteer work for then Vice their own personal stories, and I have such time as he may consume to the President Bush. So clearly we were on mine, but I will not take the time to gentleman from North Carolina [Mr. opposite sides of the political aisle. Yet dwell in personal stories. HEFNER]. April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3595 (Mr. HEFNER asked and was given another American that I have ever met During this time of remembrance, I would permission to revise and extend his rein my lifetime who has worked as hard, like to pay tribute to an Air Force pilot who lost marks.) who has had such a strong commit- his life serving our country, Capt. Ashley J. Mr. HEFNER. Mr. Speaker, I rise in ment to country, than Ron Brown. Davis. Captain Davis was from my hometown, strong support of the resolution and Mr. Speaker, I stand before the House Baton Rouge, LA. A victim of the tragic plane thank the gentleman for bringing it today to say that Ron Brown was in- crash which ended the lives of 33 Americans forth. We have lost a dear friend. deed a scholar, a leader, and a role who were serving their country, Captain Davis' Mr. DINGELL. Mr. Speaker, I yield 1 model, for people all across this coun- mission was to pilot the dignitaries who visited minute to the distinguished gentleman try. Europe. He was chosen for the job just 18 from Michigan [Mr. LEVIN]. The last time Ron Brown and I had months ago, over 38 other pilots. I offer my Mr. LEVIN. Mr. Speaker, the out- an opportunity to sit down and talk condolences to Captain Davis' family. He is pouring of feeling after Ron Brown’s was actually in the Fourth Congres- survived by his wife Debra, and two children. death was unique. It was a tribute to sional District. I called him at the De- A man of great spirit and patriotism, I know his Ron, to his capacity for friendship, to partment of Commerce and said, Mr. family and friends will miss him. The Air Force his verve, his zest for life, his intel- Secretary, I want you to come to Lou- has also suffered a great loss in his untimely ligence, his caring. It was also a trib- isiana and talk about economic devel- death during his dedicated service to our ute to Ron Brown’s America. opment. And right off the cuff he just country. Today, I extend my prayers to this Ron Brown’s life showed that there said, I will be there. And in about 30 family as well as the families of all the persons are almost no limits to opportunity in minutes, he called back and said, I will who lost their lives in Croatia. America. You have to work for it. But be there in about 3 weeks. Mr. FAZIO of California. Mr. Speaker, I rise we often talk about the limitlessness of So I want to thank the Ron Brown today to commemorate former Secretary of opportunity, It is not always quite family. I also want to give a special Commerce, Ron Brown. true. Ron tried so hard to make it true. tribute to a family from Louisiana. Throughout the past several days I have Like so many other dear friends of The pilot of that plane was from my heard the accomplishments of Ron Brown Ron Brown, I have mourned his death. home State of Louisiana, Ashley Davis. extolled by my colleagues. Americans every- I miss of him every day. To his wife and to his two little chil- where, and especially those who were close to Mr. DINGELL. Mr. Speaker, I yield 1 dren, we want to say that we offer our Ron are deeply affected by this tragedy. Ron minute to the distinguished gentleman condolences to them and to all of the was much more than a great chairman of the from Connecticut [Mr. GEJDENSON]. families of those who lost their lives in Democratic Party and Secretary of Commerce, Mr. GEJDENSON. Mr. Speaker, Ron this tragic accident. To them we say he was a true pioneer and an inspirational Brown, who was a good friend of many God bless you, and we will pray for human being. years, and I appeared on a program you. I feel extremely fortunate to have known about 3 weeks into his position as Sec- Mr. Speaker, I do not think it is possible for Ron as a personal friend. Ron began to serve retary of Commerce, and I was some- everyone to fully comprehend what a loss the as chair of the Democratic Party around the what nervous for my friend, because Nation will suffer without the late Commerce time I became chair of the Democratic Con- the breadth and depth of areas covered Secretary Ron H. Brown. Not only was he a gressional Campaign Committee. Ron exhib- by the Commerce Department are so champion for the domestic and international ited unwavering optimism in the face of adver- vast. Within 3 weeks he had mastered development of American business, but also, sity and inspired others to do the same. the area of high-technology licensing and more importantly, his extraordinary char- Through his tireless efforts, Ron Brown re- and exports to a degree which most acter was an invaluable asset to the U.S. Gov- stored the Democratic Party to greatness and secretaries had not at the completion ernment. Every project he touched was ap- brought a Democrat back to the White House. of their term, his interest length was proached with a tireless devotion and a pro- Ron was the type of person who consist- such and his intensity and commit- found understanding of the initiative's impact ently exceeded people's expectations. As ment to the areas he was in charge of. on the Nation's economy. He led by example, Commerce Secretary, Ron single-handedly He knew his job, he executed it with urging others to work as partners instead of defined his role. He succeeded in promoting dignity and grace and with an energy competitors to maximize opportunities. American business and boosting exports to that ought to inspire everyone in both Truly, this man was in the business of build- new heights. the public and private sector. ing bridges and reinforcing existing relation- Ron Brown was a pioneer in every sense of He fought for the economic strength ships to ensure opportunities for advancement the word. He spent his life overcoming obsta- of this country from every working of large and small business interests alike. cles and opening up new doors for others to man and woman’s point of view. He Under his leadership, all facets of the Com- follow. His death occurred while he was cul- wanted to make sure there were jobs so merce Department flourished and enjoyed the tivating the seeds of economic growth and that each American would have the benefits of innovative policies. He was instru- creating greater opportunities for a country kind of opportunity he had made for mental in developing a comprehensive and co- ravaged by war. himself. ordinated plan for bringing together the many Ron Brown will be long remembered for the He was a friend, he was incredibly ca- elements of the U.S. Travel and Tourism Ad- tremendous service he provided to his coun- pable. I cannot imagine that there is ministration; he sought to improve patent and try. However, I will miss him as a close friend. anyone who will serve in that capacity trademark protection of U.S. interests in intel- Adam Darling, a 29-year-old Commerce De- who will have the energy and intellect lectual property; he worked diligently for tele- partment employee was also among those that Ron Brown had. communications reform to create a competitive who perished in the crash. Darling had worked The SPEAKER pro tempore. The gen- marketplace and to illuminate how technology at the Department since 1993 and had helped tleman from Michigan [Mr. DINGELL] can alleviate geographic barriers and enhance plan the trip to the region. A former Davis, CA has 11⁄2 minutes remaining. education; he instituted a long-term plan to as- resident and graduate of the University of Mr. DINGELL. Mr. Speaker, I yield sist the New England fishing industryÐthe list Pennsylvania, Darling had a promising future the balance of the time to the distin- goes on and on. ahead of him. My deepest sympathy goes out guished gentleman from Louisiana [Mr. A man of firsts, Ron Brown was the first Af- to Adam's family. FIELDS]. rican-American chairman of the Democratic Tim Schaefer, a Sacramento native, was (Mr. FIELDS of Louisiana asked and National Committee and the first African-Amer- among the six Air Force crew members who was given permission to revise and ex- ican to hold the office of U.S. Secretary of perished in the accident. Schaefer, the plane's tend his remarks.) Commerce. He worked tirelessly to promote copilot, had earned a degree in mechanical Mr. FIELDS of Louisiana. Mr. Speak- the Commerce Department's mission of long- engineering from California State University, er, I want to thank the gentleman for term economic growthÐto him we owe a debt Sacramento. Also among the crew was Capt. yielding me time. of gratitude for our Nation's prosperity. At a Ashley J. Davis. Both men had been stationed Mr. Speaker, Ron Brown was a very time when diversity seems to be a dividing at Beale AFB. I salute these members of the personal friend of mine. I had an oppor- force in this country, Ron Brown demonstrated armed services who paid the ultimate price to tunity to meet him on a Presidential that diversity is our Nation's greatest asset. It serve their country. campaign in 1988, where he and I shared is in this spirit that I offer these words of trib- Mr. MARTINI. Mr. Speaker, I rise today to many platforms together. There is not ute. honor Ron Brown, the United States Secretary H3596 CONGRESSIONAL RECORD — HOUSE April 18, 1996 of Commerce who was killed in a tragic acci- panies and the workers they employ. Ron White House after losing three straight na- dent on April 3, 1996. He and 35 other victims Brown will forever be remembered as being a tional elections. died when their plane went down on a stormy success at this task. Last summer, Ron Brown traveled to my evening in Croatia. He was serving as a dip- The people who died aboard that plane congressional district to attend the closing lomat in the war-torn area, analyzing the econ- gave the ultimate sacrifice in the name of de- ceremony of the Special Olympics in New omy and what actions needed to be taken in mocracy and a global free market. Prosperity Haven. We spent the glorious Connecticut the former Yugoslavia in order to spur eco- and economic hope are essential in bringing morning touring events and had a great time nomic growth to secure the peace. long-term peace and security to that region of with those wonderful Special Olympians who Ron Brown was indeed an asset to the Unit- the world. Ron Brown and the other individ- shared Ron's never-give-up spirit. ed States. He was one of the ambitious, spe- uals on that plane knew this and recognized Mr. Speaker, Ron Brown lived the American cial people who is capable of performing mul- their role in spreading our Nation's democratic dream and served as an inspirational role tiple roles in their lives while at the same time and free-market beliefs around the globe. model for America's youth. Our country has succeeding in all arenas and remaining true to My heart goes out to each and every family lost a great leader. their ideology. member of those who died in that tragic crash. I also want to convey my condolences to Ron Brown was a vocal and successful civil In this time of great sadness, these families the friends and families of Robert Donovan, rights advocate, political strategist, corporate should know that as Americans their loved the chief executive officer of ABB, Inc., lawyer, and propagator of American business ones will be missed, as patriots they will never headquartered in Norwalk, CT, and Claudio interests. be forgotten. Elia, the chairman and chief executive officer He tirelessly campaigned to make the inter- Mr. TRAFICANT. Mr. Speaker, ``Fanfare to of Air and Water Technologies Corp. in ests of American businesses a foreign policy the Common Man'' was played triumphantly at Branchburg, NJ, who lived in Greenwich, CT. goal. He certainly deserves credit and thanks the funeral of the late Commerce Secretary, In addition, the Nation lost many fine, dedi- for market expansion. Ronald H. Brown. His family could have cated people in this tragedy who gave their It is because of his success in multiple are- played some horn tooting type music, in view lives in an attempt to heal a nation and a nas and in the international community that of the facts that Mr. Brown was truly a suc- world ravaged by war. Connecticut and the the United States and the world mourn to- cessful, high stakes Washington player and an Nation mourn the loss. gether. Today we should all take a moment to overachiever in many respects. However, they Mr. CLAY. Mr. Speaker, I am honored to remember the career and the man we lost. know Ron would not have wanted it any other join my colleagues in tribute to a truly remark- Ms. ESHOO. Mr. Speaker, on April 3, 1996 way. able man, the late Honorable Ron Brown. Ron the United States lost a leader. Secretary of Ron Brown did not see himself as a Demo- Brown was a prominent black American who Commerce Ronald H. Brown inspired us all cratic power broker or jet setter or trailblazer dedicated his life to building a better world for with his ability to bring together people from like we did. He saw himself as a middle-class all people. Blessed with many talents and op- different backgrounds, beliefs, and cultures to kid who grew up in Harlem that loved the find and achieve a goal for the common good. portunities, Ron used them wisely and he He inspired us by his commitment to finding basic things in life: family, friends, work, and shared his gifts generously. opportunities for U.S. businesses overseas, country. He was passionate about each. He Ron Brown was a compassionate man who recognizing that our country's trade deficit is was also passionately devoted to ensuring thrived on challenge. He blazed new trails and harmful to our domestic economy and the jobs that everyone got an opportunity, a chance to often was the first black American in his field. Americans want and need. do better. He believed in opportunity so much Ron was the first black member of his college Because of his leadership, many California that he insisted that his Commerce Depart- fraternity, the first black counsel for the Senate technology firms have increased their sales to ment staff memorize a one-sentence mission Judiciary Committee, the first black chairman foreign countries, which has increased em- statement. It reads: ``The mission of the De- of the Democratic Party, and the first black ployment and a rebounding California econ- partment of Commerce is to ensure economic Secretary of the Department of Commerce. omy. According to the Joint Venture's Index of opportunity for every American.'' We should all Ron had a charming manner and a graceful Silicon Valley, 46,000 jobs have been added agree that this is still a noble cause. style. He showed a deftness for overcoming to our region since 1992. The semiconductor Mr. Brown set several honorable examples the odds and doing some impossible things. industry, which has endured years of job loss for people from different walks in life. He en- When many experts and political pundits said due to a trade deficit with Japan, showed a couraged young people to strive and reach for it could not be done, Ron rejuvenated the gain of 4,300 jobs between 1994 and 1995. the gold. And indeed, he practiced what he Democratic Party and spearheaded the cam- Business confidence of Santa Clara County preached, he had several raising stars on that paign that elected Bill Clinton President, and companies reached an all-time high of 73 per- ill-fated plane with him. He encouraged CEO's when Ron did these things he made it look cent in 1995. and business leaders to lend their expertise easy. Secretary Brown advocated effectively for for the improvement of cities in our country Ron Brown had the courage of convictions economic and employment improvements in and in foreign lands. On that plane were busi- that inspired others to join in his crusades. He Silicon Valley, and this is just part of his leg- ness leaders from across the country. Ron shared his vision and his faith in a brighter fu- acy. Members of Congress, the administration, Brown always did what he could to provide an ture. He was a force for unification of diverse business leaders, and citizens must work to opportunity for everyone, everywhere. groups and the resolution of conflict among preserve this legacy of proactive work on be- We each will remember Ronald Brown, in them. His last mission was dedicated to re- half of the people of our country. our own way, but collectively we will remem- building a war torn land and I am sure he America will miss his leadership. I will miss ber him as a great, inspiring American. would have made a great contribution to the his friendship of almost two decades. Sec- Ms. DELAURO. Mr. Speaker, I rise to pay rebuilding of Bosnia if only he had lived a little retary Brown gave his life while serving his tribute to Ron Brown and to express my deep longer. country. God rest his good soul. sorrow and sincerest condolences to his won- Ron lived his life sowing the seeds of peace Ms. DUNN of Washington. Mr. Speaker, derful family. Ron Brown was my friend, and and hope. He left this world way too soon, but today I wish to pay tribute to Commerce Sec- he was a great American. he left it better than he found it. We will long retary Ronald H. Brown and the 32 other As Secretary of the Commerce Department, feel the force of Ron Brown's smiling spirit and Americans who lost their lives when their Ron Brown played an instrument role in imple- long celebrate the legacy of good will he left plane crash near Dubrovnik, Croatia, on April menting the administration's economic plan behind. 3, 1996. that has created 8.4 million jobs nationwide Mr. RUSH. Mr. Speaker, I rise today to Throughout his tenure as Commerce Sec- since taking office. He was a major force be- honor the memory of a very special man, Ron- retary, Ron Brown successfully worked on behind job creation efforts and the chief architect ald H. Brown. Most Americans will remember half of American companies and their workers of high-technology initiatives to provide greater him as the Secretary of Commerce. However, in opening doors to the global market. For employment opportunities for working Ameri- he was much more. He was the personifica- many companies in my home State of Wash- cans. tion of the concept of a bridgebuilder. ington, Secretary Brown was instrumental in Previously, Ron Brown served as chairman In his role as the Secretary of Commerce, promoting our products and cultivating new of the Democratic National Committee. He Ron constantly promoted American trade. His and/or improved business relationships with was the first African-American in history to zeal was premised upon the notion that if the our international neighbors. head a major national political party. At the commerce of the United States thrived it The most important role of any Commerce DNC, Ron Brown rebuilt the party and laid the would directly translate to increased economic Secretary is the promotion of American com- groundwork for the Democrats to win back the vitality for our Nation. Ron, who never forgot April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3597 where he came from, knew that his efforts several special election victories despite great cate of business and job creation for all Ameri- would result in jobs for the common man. obstacles. He was a great communicator and cans, Ron Brown was a leader, a visionary, As chairman of the Democratic National a great cheerleader who also understood the and a dreamer of what America could and Committee, Ron Brown set the stage for a re- nuts and bolts of winning campaigns. should be. But most importantly, was a pas- surgence of the Democratic Party. This is a Seldom in America does one man so grace- sionate advocate for expanding equal oppor- resounding testament to his ability, for it was fully transcend the racial chasm. Ronald H. tunity to all Americans. under his leadership that the Democratic Party Brown did, and in his journey, he deeply In a world with too few heroes, we have lost was able to elect Bill Clinton as President. touched the heart and soul of a nation. As our a true American hero. Ron accomplished this task on the heels of Secretary of Commerce, he was our corporate Ron Brown was truly a man who viewed three consecutive Presidential defeats of ambassador to the world. As the chairman of politics as the art of the possible. Ron Brown's Democratic candidates. the splintered, fractious Democratic Party, he legacy will far outlast most of usÐhis unique His memory deserves more than the mere was the glue that held it together, and in so and enviable ability to bring people together to recognition of his official position. For his title doing, delivered the White House and became find a common goal. was but a small reflection of what he was. the most beloved chairman in history. You had to know Ron Brown on a personal Drive, tenacity, compassion, and loyalty were Ron Brown was undaunted and unfazed by level to understand his unique abilityÐhis in- his trademarks. Most of us hope to attain all challenges. Being a first was not unusual for telligence, his boundless energy, his strong of these attributes. Few of us attain them with him. He was the first African-American in his will, his resilience, his ability to grasp complex the proper balance. And even fewer attain college fraternity, the first African-American ideas and to advocate them in a way that al- these attributes and are able to parlay them counsel for the Senate Judiciary Committee, ways brought people together. into avenues for even greater achievement. and the list goes on. Ron was a trailblazer and But you also had to appreciate how Ron Ronald H. Brown was one of these rare indian eternal optimist. He saw no mountain that Brown took on each and every opportunity viduals. couldn't be climbed or moved or conquered. with a spring in his step, a twinkle in his eye, Whitney Young once said, ``We can't * * * The Nation has lost a great leader and and a smile on his face. It's been said before, sit and wait for somebody else. We must go statesman. I join Ron's many colleagues and but Ron Brown was Will Rogers in reverse: aheadÐalone if necessary.'' Ron Brown was a friends not in mourning his death, but in cele- you never met anyone who didn't like Ron trailblazer and a visionary. He never waited for brating his life, his accomplishments, his style, Brown. opportunities, he created them. Because of and his spirit. Ronald H. Brown will be missed, Ron Brown had a passion for achievement this, all American people have benefited. but never forgotten. that you rarely see in individuals, and he was Mr. OWENS. Mr. Speaker, Ron Brown was Mr. MCDADE. Mr. Speaker, I want to join an extraordinarily gifted man. I will always a renaissance politician, a jack of all trades my colleagues from both sides of the aisle consider myself fortunate to have known Ron who mastered them all. He was a mentor for today in paying tribute to former Commerce Brown as a friend. seasoned professional politicians and he was Secretary Ronald H. Brown and the 34 others He will indeed be remembered as a patriot qualified to tutor most of us. Ron used his who lost their lives in the tragic plane crash on and a friend, and we will miss him dearly. considerable influence and charm to become April 3 in Croatia. Mr. GILMAN. Mr. Speaker, it is a sad re- an extraordinary fundraiser for the Democratic I had the privilege of personally knowing sponsibility to rise to join with my colleagues Party. From the complex job of raising money Ron Brown. I respected and liked him as a in paying tribute to an outstanding public serv- to the details of election day engineering, Ron dedicated public servant, an individual of the ant who has been lost to us all too pre- performed with great enthusiasm. highest caliber, and a man of great intellectual maturely and in support of House Resolution I first met Ron Brown in Chicago while cam- ability. A man of his abilities and experience, 406. paigning for Harold Washington for mayor of who possessed such tremendous personal Secretary of Commerce, Ron Brown, Chicago. Former Majority Whip Bill Gray, Ron, characteristics, will be greatly missed. throughout his many years of public serviceÐ and I were on a campaign swing through the Ron Brown leaves behind a legacy of and let there be no mistake that he did indeed public housing projects on Chicago's South- achievement in the military, political, govern- contribute many years of public serviceÐwas side. At that time, Ron was working with a ment, and business arenas that few people well known for his outstanding personality, his well-known, prestigious, and powerful law firm can match. He led an extraordinary life and determined professionalism, and perhaps, in Washington. However, on that day, he was we are all saddened by the loss of this tal- most importantly of all, his charming sense of simply Ron the loyal friend, campaigning for a ented, exceptional, and energetic man. humor which won him the admiration of politi- fellow Democrat. We went into huge, tall, cold My sympathy and condolences go to his cal allies and adversaries alike. concrete buildings and walked on floors which wife and two children and to all of the families Ron Brown, before entering the public lime- seemed to be completely out of this world. of those who died in this tragic accident. As light, was well known as political mover and The deterioration and garbage inside the Americans, we all mourn the loss of life and shaker behind the scenes here on Capitol Hill. halls were unbelievable even to a poor boy note the sacrifice of these individuals who died While serving on the staff of Senator EDWARD like me whose father had never earned more in the service to their country. KENNEDY of Massachusetts, he learned the im- than the minimum wage. I had lived in some Mr. KENNEDY of Massachusetts. Mr. portance of compassion in legislation, the im- of the poorest neighborhoods of Memphis and Speaker, I wish to join my colleagues, Mr. portance of compromise, and the importance worked in some of the poorest neighborhoods GEPHARDT and Ms. MEEK, in support of the of consensus. in New York, but never had I seen such de- resolution in tribute to Secretary of Commerce As Secretary of Commerce, Ron Brown was spair. The only glimmer of light we saw in Ron Brown and the 32 other patriotic Ameri- an inspiration to us all. He genuinely cared those highrise urban tunnels were the Harold cans, including several from my State of Mas- about the business community of this Nation, Washington posters that the residents waved sachusetts, who lost their lives on St. John's and understood that a strong economy is the at us when they saw our familiar signs. We Hill outside of Dubrovnik, Croatia. cornerstone of national strength. had connected with the most oppressed Ron Brown was truly a living American hero, It was in pursuit of expanding trade opportu- among us. As my eyes met Ron's he broke and his loss will be sorely missedÐand my nities in that part of the world which used to into his signature smile: ``This is what politics heart goes out to his lovely wife Alma and his be called Yugoslavia that Ron gave his life. has got to be all about,'' he said as we loving children, Michael and Tracy. I will miss The tragic and untimely death of Ron Brown plunged into the crowd of outstretched hands Ron dearly. He was a colleague and a friend is a reminder that those who devote their lives and marched through the halls reminding folks of more than 20 years, and his loss is a per- to public service are in just as much jeopardy that tomorrow was the day to go out and elect sonal one. as are those who volunteer for the battlefield. the first African-American mayor of Chicago. In an era where cynicism too often wins out The fact that 33 young public servants also Ron Brown was the unifying force behind over optimism, where fear too often conquers gave their lives with Ron Brown only under- the most successful and conflict-free conven- hope, and where the art of politics is seen by scores his ability to inspire others, especially tion the Democrats have had in nearly two most in a less-than-admirable light, Ron young people, to public service. These de- decades. Ron was a star who kept his poise, Brown showed that public service is indeed an voted young people deserve our admiration. kept peace among the many party factions, honorable profession. It is with deep regret that I learned that one and made the Democratic National Committee Whether in his service to his country in the of those 33 victims was a constituent in my an effective force to be reckoned with in poli- U.S. Army, as a leader in the civil rights move- 20th Congressional District of New York. Lee tics. Ron Brown was a masterful strategist ment, as a public and private sector lawyer, as Jackson, a 37-year-old native of the town of who began his tenure as party chairman with a political party professional, or as an advo- Greenburgh in Westchester County, was the H3598 CONGRESSIONAL RECORD — HOUSE April 18, 1996 son of Luther Jackson, Jr., a highly respected est attribute. He understood that we must [Roll No. 123] journalism professor at Columbia University, work to help others, and he did that. YEAS—423 and Mrs. Nettie Lee Jackson, a long time Ron Brown perished in Bosnia trying to ac- Abercrombie Deutsch Inglis community activist. quaint a delegation of businesspeople with the Ackerman Diaz-Balart Istook Lee was inspired to go into public service by market conditions there and to bring peace to Allard Dickey Jackson (IL) Andrews Dicks Jacobs Secretary Brown, under whom he served in a war-torn region. Speaks to his humanitarian Archer Dingell Jefferson the Department of Commerce. As we extend efforts and as a parallelÐhe also worked to Armey Dixon Johnson (CT) our condolences to the Jackson familyÐand bring jobs to south central Los Angeles and Bachus Doggett Johnson (SD) Baesler Dooley Johnson, E. B. to the families of the other victimsÐthe be- improve the lives of the people, and finally Baker (CA) Doolittle Johnson, Sam reaved families should be assured that many bring peace to people who have desired it for Baker (LA) Dornan Johnston Americans share their loss. so long. Ron Brown knew the value of a job Baldacci Doyle Jones Ron Brown, and his courageous coworkers, to people and to a community. He worked to Ballenger Dreier Kanjorski Barcia Duncan Kaptur will long be remembered and will long be improve people's lives by bringing jobs to Barr Dunn Kelly missed. those who wanted to work. Barrett (NE) Durbin Kennedy (MA) Mr. WATTS of Oklahoma. Mr. Speaker, it I want to offer my condolences to Alma Barrett (WI) Edwards Kennedy (RI) was with great sadness that I learned of the Brown, a woman of courage and strength, the Bartlett Ehlers Kennelly Barton Ehrlich Kildee tragic accident that took the life of Ron Brown Brown family and the families of the people Bass Emerson Kim and 34 dynamic young Americans who were whose lives were lost that day. Bateman Engel King on a journey of hope to a dangerous part of I am pleased to participate in this tribute to Becerra English Kingston Beilenson Ensign Kleczka the world. a wonderful American. Bentsen Eshoo Klink I had never had the pleasure to meet Ron Mr. LAZIO of New York. Mr. Speaker, it is Bereuter Evans Klug Brown until I came to Washington last year, with great sadness that I rise today to pay trib- Berman Everett Knollenberg but I knew long before that, that he was a cru- ute to the late Commerce Secretary, Ron Bevill Ewing Kolbe Bilbray Farr LaFalce sader, an energetic advocate, and a dedicated Brown, and his colleagues who lost their lives Bilirakis Fattah LaHood public servant. In politics he was a more than while serving our country in Bosnia. Secretary Bishop Fawell Largent worthy opponent to his Republican counter- Ron Brown, through his eloquence and deter- Bliley Fazio Latham Blute Fields (LA) LaTourette parts, and in Government he was clearly a mination, contributed greatly to our Nation. Boehlert Filner Laughlin most valued member of the President's Cabi- Even before his days at the Commerce De- Boehner Flake Lazio net and an effective ambassador for America partment, Ron Brown's capability and many Bonilla Flanagan Leach around the world. successes advanced racial equality in Amer- Bonior Foglietta Levin Bono Foley Lewis (CA) Our country was well served by Ron ica. His commitment to fostering relations be- Borski Forbes Lewis (GA) Brown's enthusiasm, competence, and deter- tween foreign governments and U.S. business Boucher Ford Lewis (KY) mination. His work as a member of the Cabi- is evident in America recovering its leadership Brewster Fowler Lightfoot net earned him well-deserved praise, espe- Browder Fox Lincoln role in world trade. Brown (CA) Frank (MA) Linder cially from the Nation's business community. Mr. Speaker, one can never be prepared for Brown (FL) Franks (CT) Lipinski My heart and prayers go out to Ron Brown's such a sad and unexpected event. Secretary Brown (OH) Franks (NJ) Livingston family at this difficult time, and also to the fam- Brown and his colleagues brought hopes of Brownback Frelinghuysen LoBiondo Bryant (TN) Frisa Lofgren ilies of all those who lost their lives on this prosperity to a war-torn region. Those of us Bryant (TX) Frost Longley mission of hope. They all shared in that great from Long Island were especially saddened to Bunn Funderburk Lowey American gift of optimism and that great find that Gail Dobert of the Commerce Depart- Bunning Furse Lucas American belief that we can make the future ment was among those who lost their lives in Burr Gallegly Luther Burton Ganske Maloney better than today. They went to the Balkans to this tragic end to a mission of peace. We have Buyer Gejdenson Manton share that great American gift with a people witnessed a great loss, not only to friends and Callahan Gekas Manzullo whose history has stolen their hope and their family, but to the Nation. I join with my col- Calvert Gephardt Markey Camp Gilchrest Martinez optimism and their dreams for their children. leagues today in offering my deepest sym- Campbell Gillmor Martini Our greatest tribute to these dedicated pathy. Canady Gilman Mascara Americans would be to renew their journey of GENERAL LEAVE Cardin Gingrich Matsui hope and to share their great dream of a bet- Castle Gonzalez McCarthy Mr. DINGELL. Mr. Speaker, I ask Chabot Goodlatte McCollum ter future with those who suffer around the unanimous consent that all Members Chambliss Goodling McCrery world. may have 5 legislative days within Chapman Gordon McDade Ms. MILLENDER-MCDONALD. Mr. Speaker, which to revise and extend their re- Chenoweth Goss McDermott I rise to pay tribute to a great American, the Christensen Graham McHale marks on House Resolution 406. Chrysler Green (TX) McHugh late Secretary of Commerce, Ron Brown. I am The SPEAKER pro tempore. Is there Clay Greene (UT) McInnis pleased to be a part of this resolution for trib- objection to the request of the gen- Clayton Greenwood McIntosh utes to distinguished leaders of our great Na- Clement Gunderson McKeon tleman from Michigan? Clinger Gutierrez McKinney tion. Ron Brown's life work is a true American There was no objection. Clyburn Gutknecht McNulty success story. It is that American agenda op- Mr. DINGELL. Mr. Speaker, I move Coble Hall (OH) Meehan portunity that I alluded to when I was sworn in; the previous question on the resolu- Coburn Hall (TX) Meek that gives an opportunity to every American, Coleman Hamilton Menendez tion. Collins (GA) Hancock Metcalf that hope that is embodied in our creed. They The previous question was ordered. Collins (IL) Hansen Meyers will soar to high of this Cosmos. The SPEAKER pro tempore (Mr. Collins (MI) Harman Mica The loss of the Secretary of Commerce is SHAW). The question is on the resolu- Combest Hastert Millender- Condit Hastings (FL) McDonald tragic which is underscored by his commit- tion. Conyers Hastings (WA) Miller (CA) ment to jobs, social justice, and economic se- The question was taken; and the Cooley Hayworth Miller (FL) curity. During the times that we met at several Speaker pro tempore announced that Costello Hefley Minge official occasions, I found him to be a charm- the ayes appeared to have it. Cox Hefner Mink Coyne Heineman Moakley ing, warm, intelligent, and always a gen- Mr. DINGELL. Mr. Speaker, I object Cramer Herger Molinari tleman. I have fond memories of my discus- to the vote on the ground that a Crane Hilleary Mollohan sions with Ron Brown. quorum is not present and make the Crapo Hilliard Montgomery I remember watching the news in the imme- Cremeans Hobson Moorhead point of order that a quorum is not Cubin Hoekstra Moran diate aftermath of the civil unrest in Los Ange- present. Cunningham Hoke Morella les in 1992 following the Rodney King beating The SPEAKER pro tempore. Evi- Danner Holden Murtha trial verdict, when he met with the angry and dently a quorum is not present. Davis Horn Myers de la Garza Hostettler Myrick frustrated youth of south central Los Angeles. The Sergeant at Arms will notify ab- Deal Houghton Nadler He and the President played basketball, dem- sent Members. DeFazio Hoyer Neal onstrating his ability to relate The vote was taken by electronic de- DeLauro Hunter Nethercutt intergenerationally and across the socio-eco- vice, and there were—yeas 423, nays 0, DeLay Hutchinson Neumann Dellums Hyde Ney nomic spectrum. That was perhaps his great- not voting 10, as follows: April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3599

Norwood Royce Taylor (NC) gentleman from Texas [Mr. FROST], rorism. For example, it provides proce- Nussle Rush Tejeda Oberstar Sabo Thomas pending which I yield myself such time dures to allow for the removal of alien Obey Salmon Thompson as I many consume. During consider- terrorists, fairly and with due process, Olver Sanders Thornberry ation of this resolution, all time yield- but also with adequate protections to Ortiz Sanford Thornton ed is for the purpose of debate only. safeguard sources and methods of clas- Orton Sawyer Thurman Owens Saxton Tiahrt GENERAL LEAVE sified information. Oxley Scarborough Torkildsen Ms. PRYCE. Mr. Speaker, I ask unan- It provides improved steps for des- Packard Schaefer Torres imous consent that all Members may ignating foreign terrorist organiza- Pallone Schiff Torricelli tions, and contains provisions that se- Parker Schroeder Towns have 5 legislative days in which to re- Pastor Schumer Traficant vise and extend their remarks on this verely restrict the ability of terrorist Paxon Scott Upton resolution. groups to raise funds in the United Payne (NJ) Seastrand Velazquez The SPEAKER pro tempore. Is there States. As we all know, Mr. Speaker, Payne (VA) Sensenbrenner Vento Pelosi Serrano Visclosky objection to the request of the gentle- money is the lifeblood of these ruthless Peterson (FL) Shadegg Volkmer woman from Ohio? organizations, and if we cut off their Peterson (MN) Shaw Vucanovich There was no objection. flow of funds, including the blocking of Petri Shays Walker Ms. PRYCE. Mr. Speaker, I am financial transactions, we will surely Pickett Shuster Walsh Pombo Sisisky Wamp pleased to bring to the floor today the diminish their ability to carry out Pomeroy Skaggs Ward rule providing for the consideration of these cowardly, heinous acts here at Porter Skeen Waters the conference report on S. 735, the home and abroad. Portman Skelton Watt (NC) Antiterrorism and Effective Death Poshard Slaughter Watts (OK) With regard to the exclusion of alien Pryce Smith (MI) Waxman Penalty Act of 1996, which was passed terrorists, the conference report au- Quillen Smith (NJ) Weldon (FL) overwhelmingly by the other body last thorizes State Department officials Quinn Smith (TX) Weldon (PA) evening. This is a simple, fair rule overseas to deny entrance visas to Radanovich Smith (WA) Weller Rahall Solomon White which waives all points of order members and representatives of those Ramstad Souder Whitfield against the conference report, and same groups deemed to be foreign ter- Rangel Spence Wicker against its consideration, in order to rorist organizations, and it also allows Reed Spratt Williams permit the House to consider provi- Regula Stark Wilson the United States to stop or prohibit Richardson Stearns Wise sions which may exceed the scope of assistance to foreign countries that do Riggs Stenholm Wolf differences between the House and the not cooperate with our antiterrorism Rivers Stockman Woolsey Senate. efforts. Roberts Stokes Wynn Roemer Studds Yates Ms. Speaker, the devastating terror- And finally, in a move that will hope- Rogers Stump Young (AK) ist attack that took place in Oklahoma fully prevent future tragedies like the Rohrabacher Stupak Young (FL) City nearly 1 year ago today serves as loss of Pan/Am flight 103 over Ros-Lehtinen Talent Zeliff a poignant and powerful reminder that Lockerbie, Scotland, the conference re- Roth Tate Zimmer Roukema Tauzin the threat of domestic terrorism is a port requires that foreign air carriers Roybal-Allard Taylor (MS) very real and present danger in our so- traveling to and from United States NOT VOTING—10 ciety. One hundred and sixty-eight in- airports follow the identical safety nocent people, including dozens of chil- measures that our own American air Fields (TX) Hinchey Lantos Geren Jackson-Lee Rose dren, lost their lives in that attack. carriers must follow under regulations Gibbons (TX) Tanner Combined with the nearly 500 people issued by the FAA. Hayes Kasich who were injured in the blast, the Equally important are other provi- b 1203 bombing of the Federal building in sions contained in the conference re- Oklahoma City ranks as the worst ter- port, including three key elements Messrs. STOCKMAN, LAHOOD, KEN- rorist incident ever to take place on from the Contract With America: First, NEDY of Rhode Island, and HASTERT American soil. Unfortunately, it was there are reasonable reforms to curb changed their vote from ‘‘nay’’ to not the first. The bombing of New the abuse of habeas corpus by con- ‘‘yea.’’ So the resolution was agreed to. York’s World Trade Center building in victed criminals. This will help, fi- The result of the vote was announced 1993, Americans for the first time faced nally, to free the judicial process from as above recorded. the sobering prospect that terrorists endless and frivolous appeals from pris- A motion to reconsider was laid upon are at work right here in the United oners convicted of capital offenses the table. States. while victims and families of victims Among the lessons we have learned f wait helplessly by for years and years from these tragic events is that law en- for justice to finally be done. WAIVING POINTS OF ORDER forcement must be prepared to respond Second, improved procedures for de- AGAINST CONFERENCE REPORT effectively and immediately to terror- porting criminal aliens are included ON S. 735, ANTITERRORISM AND ism when it occurs. More importantly, which allow judges to order the depor- EFFECTIVE DEATH PENALTY as technology rapidly advances, law en- tation of aliens convicted of Federal ACT OF 1996 forcement officials at all levels must crimes at the completion of their sen- Ms. PRYCE. Mr. Speaker, by direc- have access to reasonable and legiti- tence. tion of the Committee on Rules, I call mate tools that will enhance their abil- Third, the bill calls for mandatory up House Resolution 405 and ask for its ity to prevent terrorist acts before victim restitution. Securing the right immediate consideration. they result in the loss of human life. to adequate restitution is a long over- The Clerk read the resolution, as fol- The difficult task which this body due victory for crime victims and their lows: has faced during the past year has been families. For too long, our criminal to balance the needs of law enforce- justice system has devoted significant H. RES. 405 ment with the need to preserve essen- attention and resources to the plight of Resolved, That upon adoption of this resolution it shall be in order to consider the tial civil liberties. Today, under the criminals. As a result, crime victims conference report to accompany the bill (S. terms of this simple, straightforward have often suffered twice—first at the 735) to prevent and punish acts of terrorism, rule, we will debate a conference report hands of the criminals, and then by an and for other purposes. All points of order that I believe improves upon the inadequate, insensitive, inattentive against the conference report and against its House-passed bill, while still assuring justice system. By requiring fair res- consideration are waived. the Federal Government an appro- titution, we will give victims of crime The SPEAKER pro tempore (Mr. priately limited but responsible role in some of the ranking and legal status SHAW). The gentlewoman from Ohio the fight against terrorism. they deserve while they recover from [Ms. PRYCE] is recognized for 1 hour. Several key provisions have been their unwanted and unwelcome trau- Ms. PRYCE. Mr. Speaker, for the added to the House-passed bill in this ma. purpose of debate only, I yield the cus- bipartisan conference report that will Mr. Speaker, as I have said before, tomary 30 minutes to my friend, the assist our country’s fight against ter- this debate is not about who, or which H3600 CONGRESSIONAL RECORD — HOUSE April 18, 1996 political party, is more committed to our borders. But, I submit, it is the Today we have before us the final fighting terrorism. I think we would all best we can produce when we must bal- product. It achieves, I think, a fair bal- agree that keeping our Nation’s cities ance the need to vigorously defend and ance and includes many provisions to and communities safe and secure is not protect our safety while simulta- not only prevent and punish terrorism, a partisan issue. Rather, it is one of neously defending and protecting our but also includes the ultimate punish- the fundamental duties and respon- freedoms and liberties. I hope the legis- ment for those who would kill others, sibilities of government. lation before us achieves that end. the effective death penalty. This conference report accomplishes This conference agreement does give As a matter of fact, the very first the very difficult task of providing our us some tools which will help protect provision in this conference report, citizens with an increased level of safe- our shores and our people from the title I provides for a reform of the ty and security, without trampling on threat of international terrorism. The death penalty process with specific our rights in the process. These provi- conference is to be commended for in- time limitations to insure that the sions represent necessary, but nar- cluding new authorities to identify and process does not drag on forever and rowly drafted tools that will go a long designate foreign terrorist organiza- ever and ever, sometimes as much as 10 way toward assisting our law enforce- tions, to prohibit fundraising on behalf and 15 years. This provision alone is so ment professionals in combating the of such terrorist organizations, and to important that it is more than suffi- genuine threat of international terror- exclude or remove alien members of cient justification for supporting this ism. those groups from our country. These conference report today. So as we near the 1-year anniversary authorities are essential if we are to The conference report also includes a of the Oklahoma City bombing, I urge begin to deal effectively with the un- provision dealing with mandatory vic- the House to accept the work of the welcome and unwanted intrusion of tim restitution and provides for speci- conferees and send a clear signal to international terrorism. fied assistance to victims of terrorism, would-be terrorists that their cow- However, Mr. Speaker, because the and that is so terribly, terribly impor- ardly, destructive acts will not be tol- conference report does not contain lan- tant. For too long in this country we erated by the American people or by guage granting law enforcement agen- have paid too little attention to the this institution. For the victims of cies new wiretap authority, I am going victims of crime while we have focused Oklahoma City and victims of other to oppose ordering the previous ques- huge resources to protect the rights of tragic events, and their brave families, tion on this rule. While I am gratified the accused criminal. I urge your support for this conference that the conferees did include new pow- Mr. Speaker, there is also a section report. ers to deal effectively with inter- which prohibits providing material The Rules Committee reported this national terrorism, there is a concern support to, or raising funds for, foreign rule by unanimous voice vote yester- that the fight against domestic terror- organizations designated as terrorist day, and I urge colleagues to give it ism is seriously handicapped because organizations. their full support. Let’s pass this fair the wiretap authorities requested by This and the other provisions in this rule, and let’s pass the conference re- the Department of Justice are not part conference report designed to limit ter- port without any further delay. of this agreement. rorism will never be a complete solu- Mr. Speaker, I reserve the balance of Therefore, a vote against the pre- tion to the problem, but this con- my time. vious question is a vote to enhance this ference agreement is a huge step in the Mr. FROST. Mr. Speaker, I yield my- legislation by granting new wiretap au- right direction of terrorism prevention. self such time as I may consume. thority that will allow law enforce- I would particularly like to commend Mr. Speaker, much has been said ment officials to keep up with the mod- the chairman of the Committee on the about the tragic anniversary we will ern technologies used by almost every Judiciary, the gentleman from Illinois observe tomorrow. The loss of 168 men, American, including those who plan [Mr. HYDE], and the ranking minority women, and children in Oklahoma City barbarous acts like the one which member, the gentleman from Michigan because of an irrational and immoral killed 168 men, women, and children 1 [Mr. CONYERS], for all of their hard act, has left a scar on our national psy- year ago tomorrow. work in finally getting this bill here to che that will never really heal. But, Mr. Speaker, I reserve the balance of the floor, along with the gentleman Mr. Speaker, if something good is to my time. from New York [Mr. SCHUMER], who is come from such tragedy, then let it be Ms. PRYCE. Mr. Speaker, I yield sitting here. Without their help, this a greater awareness that the freedoms such time as he may consume to the legislation certainly would not be here we enjoy in this great Nation are in- gentleman from New York [Mr. SOLO- today. This has been an especially deed precious and that they are in need MON], chairman of the Committee on tough assignment in a long list of of protection. Rules. tough assignments for the Committee Let us never forget those who died, Mr. SOLOMON. Mr. Speaker, I cer- on the Judiciary. those whose blood was spilled, those tainly thank the gentlewoman from In addition, sitting over to my right, whose lives were irrevocably and irre- Ohio for explaining the rule. It is not I would like to recommend the gen- versibly changed. Let us honor them by necessary to repeat her explanation. tleman from Georgia [Mr. BARR] for his working diligently to protect the free- Mr. Speaker, this Friday will mark extra efforts in shaping this final prod- doms that embody the moral fabric of the 1-year anniversary of the bombing uct. Without his efforts we never would this great country of ours. The bar- of the Federal building in Oklahoma have been here today either. The con- barous actions of one individual or of a City. There have been a number of terference agreement before the House group cannot be allowed to undermine rorist incidents like that in 1993. The today includes many of the provisions the freedoms and liberties that con- New York Trade Center building was sought by the gentleman from Georgia, stitute the American way of life. But, another terrible tragedy. and we take off our hat to him. as we know all too well, in the world The deliberations on this bill have Mr. Speaker, adoption of this rule is today, we must be ever vigilant and demonstrated that Members on both necessary to allow the House to pro- ever ready to come to the aid of those sides of the aisle do hold very strong, ceed to the consideration of the con- ideals we all hold so dear. sincere views about the powers that ference report. I would ask for a ‘‘yes’’ This legislation has come about be- should be granted to law enforcement vote on the rule, and on the conference cause of the act of a terrorist. The con- to track and prosecute terrorists. report and on the previous question, as ference report is not perfect: some The balance between public safety well. Members may oppose it because of pro- and order, and individual rights, is al- I do not know where this previous visions relating to habeas corpus re- ways a difficult dilemma in a free soci- question fight has come from. This was form. Others may oppose it because it ety. not discussed in the Committee on does not contain new wiretap authority For this reason, significant time was Rules prior to today. Certainly the for law enforcement officials to trace needed to consider this legislation, and conference has already been abandoned and track homegrown as well as inter- certainly the time has been devoted to because the Senate has already passed national terrorists operating within it. the bill. We should stop fooling around April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3601 with this and making political points. I will vote for the bill. It is better side. It is a vast expansion of current We ought to get over here, vote for the than what we have now, and progress authority, and I do not feel that it previous question, vote for the rule, has been made since the Barr amend- would be at all appropriate to consider and then vote for this vital piece of leg- ment stripped out the heart of the bill, it precipitously as we would be doing islation. and the gentleman from Georgia has today. Rather, Mr. Speaker, there is a Mr. FROST. Mr. Speaker, I yield 4 changed his mind and supported some provision in section 810 of this con- minutes to the gentleman from New of the provisions that were stripped out ference report, as presented to the York [Mr. SCHUMER]. in the House previously. House today, that provides for a com- Mr. SCHUMER. Mr. Speaker, I thank So, in my judgment. The bill is OK, prehensive study by the administra- the gentleman from Texas [Mr. FROST] but it could be a lot better. It is only tion, by the Attorney General, on the for yielding me the time, and this is on half a full glass. And by voting down entire issue of wiretaps. That study the rule. I am going to have more to the previous question, and then voting would have to be completed in 90 days. say on the bill later. on the concurrent resolution offered by I and my colleagues who believe in But one the rule I would urge that we the gentleman from Texas, we could re- effective but accountable law enforce- vote down the previous question, and store the provision that law enforcement believe that that is the appro- that is because this bill has one glaring ment considers first and foremost what priate way to go so that we can study omission, and that is the ability to do has been needed to fight the fight this with the deliberation that it re- multipoint wiretaps. against terrorism. quires, look at current law, which is The bill, if we ask law enforcement So I would ask my colleagues to put vast in the area of wiretap authority what was the No. 1 thing they needed down partisanship, to put down fear of for our Government, be very mindful of to fight terrorism, and I have talked to some extreme groups who by misin- civil liberties and craft, if crafting new lots of them, they would say it would formation and fear have legislation is necessary, the most lim- be the multipoint wiretap. The mischaracterized this provision. Let us ited, not the most expansive, way of multipoint wiretap has no civil lib- pass it now. We do not know what is achieving that result. going to happen in this Congress. I erties problems. Let me explain to my b 1230 colleagues what it is: Still have to go would say the odds are that we will not Mr. FROST. Mr. Speaker, I yield 2 to court to get the wiretap, and still pass a multipoint wiretap later on in minutes to the gentleman from Massa- have the probable cause standard. the year, despite the intentions of the chusetts [Mr. KENNEDY]. However, in the past we have tapped, chairman of the Committee on the Ju- diciary to get it. Mr. KENNEDY of Massachusetts. Mr. when they got a tap, it is on the per- Speaker, what we have here is a classic son’s phone number. So they say, ‘‘I So to toughen the bill up, to give law enforcement what they need without case of, once again, the Republican want to tap number 345–6789 because Congress moving in a way which links John Smith, there is probable cause to violating any civil liberties, we should vote down the previous question, add two completely separate issues, and believe John Smith is doing illegal therefore mixes up and puts a number things, and we want to find him.’’ the multipoint wiretap provision, and then we could say we have passed a of Members of Congress that are very But these days technology has al- interested in establishing tough new lowed criminals and terrorists to get good bill. Ms. PRYCE. Mr. Speaker, I yield 2 standards on antiterrorism law, it ahead of that. Why? They get cellular minutes to the gentleman from Geor- forces us to vote against the bill be- phones, and they change their number gia [Mr. BARR] who was very instru- cause of the irreparable damage this every third day. It takes law enforce- mental in the drafting of this legisla- does to our constitutional rights under ment time to find that new number, tion. habeas corpus. and then under present law they would Mr. BARR. Mr. Speaker, I thank the Mr. Speaker, I am a strong supporter have to go to court and get a new court gentlewoman for yielding this time to of the death penalty in this country, order. me. but I also believe very strongly, abso- Mr. Speaker, that makes no sense, Mr. Speaker, the gentleman from lutely as strongly, that we ought to and in the original bill that was intro- Georgia has not changed his mind on give people the absolute right to appeal duced by myself and the subsequent anything. The provisions that we have their decisions under the constitu- bill introduced by the gentleman from added back into this bill during the tional guarantees of this land, to make Illinois [Mr. HYDE], the multipoint conference proceedings are different certain that we do not make mistakes wiretap provision was put in. However, from those that were in the bill earlier once which impose the death penalty. it was taken out because of the objec- and that were removed in the Barr Why is it necessary, why is it nection of some. I do not know what the amendment. The gentleman from New essary to link the death penalty and objection is, frankly. Part it of may York may not be aware of that, but the constitutional guarantees of ha- have been misnomered. It was first they are different. They are protective beas corpus to a terrorism bill? This is called roving wiretap, and roving im- of civil liberties. They grant our law just a political deal. It is a political plied it would go to any person. So now enforcement community the very spe- deal to get votes on the right, to get the name has been changed to cific narrowly crafted tools that it them to link up and vote for a bill that multipoint wiretap. needs in certain key areas. But nothing should stand on its own hind legs. It It is still opposed by the far right and has changed in terms of my regard for should stand on its own forelegs. by some in the civil liberties commu- civil liberties, my regard for taking a But what we have is, instead, a glom- nity on the far left. But, my col- very close look at those provisions and ming together of separate ideas that leagues, they are simply wrong. allowing those only insofar as I am are necessary to patch together the Mr. Speaker, when we discussed it in able to be enacted into law that are ab- votes because of the craziness that has conference, the Senator from Utah solutely essential. invaded this body. Please, can we not asked the gentleman from Georgia and The gentleman goes on and on about recognize that there are severe threats, others what is a reason to be against multipoint or roving wiretaps. The as we have seen in Oklahoma, as we these taps, and none was given. The American people and Members of this have seen in New York, as we have seen only explanation given by my good body certainly are aware of the vast in provisions which are included in this friend from Florida was, well, there is power that our Government currently bill, which I was able to get passed in a lot of misinformation, and Mr. HYDE, has with which to wiretap. There in- conjunction with the gentleman from Mr. HATCH, who have worked labori- deed are provisions in current law in Ohio [Mr. KASICH], to make certain ously on this bill, and I salute them Title 18 of the United States Code that that we protect against Government- and I will in my later remarks, and the already provide for multipoint wiretap. sponsored labs from providing all sorts gentleman from Florida, Mr. MCCOL- They may not be the provisions that of terrorist agents, such as serin and LUM, all agree we should have that in a are the easiest to implement, but they other pathogens that we have seen, the later bill and bring it to the floor. are there, and they are used. Ebola virus and the like, that have Well, my colleagues, we should do it There may very well be civil liberties been made too readily available to any- now. This bill is not strong enough. problems with the proposal of the other one who writes in to a Government lab H3602 CONGRESSIONAL RECORD — HOUSE April 18, 1996 and claims that they need these ter- Mr. HYDE. Mr. Speaker, I know the Mr. WATT of North Carolina. Mr. rible pathogens that can be used for all gentleman’s concern. It is a common Speaker, I want to first thank my col- sorts of destruction. one. It has to do with the deference league, the gentleman from Texas [Mr. Those are good provisions, those are that Federal courts will give to State FROST], from the Committee on Rules, antiterrorism provisions. Habeas cor- court decisions. I believe that is what for being generous with his time, be- pus has nothing to do with an he is talking about. We will discuss cause I may not have time on the de- antiterrorism bill. It forces too many that at some length in our debate on bate of the bill itself to make some of of us to finally vote ‘‘no’’ on this bill. the bill, but the Federal judge always the points that I would like to make. I urge a ‘‘no’’ vote. reviews the State court decision to see Mr. Speaker, I am as upset about the Ms. PRYCE. Mr. Speaker, I yield 1 if it is in conformity with established Trade Center bombing and the Okla- minute to the gentleman from Illinois Supreme Court precedence, or if it has homa City bombing as anybody in [Mr. HYDE], chairman of the Commit- been misapplied. So it is not a blank, America. I do not want anybody to be tee on the Judiciary. total deference, but it is a recognition misunderstanding what I am saying. (Mr. HYDE asked and was given per- that you cannot relitigate these issues But we are about to perpetrate a fraud mission to revise and extend his re- endlessly. on the American people, because this marks.) Ms. PRYCE. Mr. Speaker, I yield 2 bill is not any longer about terrorism, Mr. HYDE. Mr. Speaker, in listening minutes to the gentleman from Penn- the bill is about matters that go well, to the remarks of the distinguished sylvania [Mr. GEKAS], chairman of the well beyond terrorism and we are, un- gentleman from Massachusetts [Mr. Subcommittee on Commercial and Ad- fortunately, using these two terrorist KENNEDY], now I am confused. I re- ministrative Law of the Committee on acts as the predicate for undoing some member they used to criticize a former the Judiciary. important constitutional protections. President by ridicule, saying he could (Mr. GEKAS asked and was given I will not even spend my time talking not walk and chew gum at the same permission to revise and extend his re- about the death penalty provisions in this bill. What I will spend my time time. It would seem to me that han- marks.) dling two ideas is not that difficult: ha- Mr. GEKAS. Mr. Speaker, the debate talking about is the importance of the beas and antiterrorism, even if what he has centered on the most important Great Writ of Habeas Corpus, which said is true, that they were not related; feature of this bill, in my judgment, most people are not going to under- however, they are. and that is the habeas corpus provi- stand, because a lot of people think habeas corpus is about the death penalty. If someone gets convicted of bombing sions. It took us a generation to con- It is not. Only 1 percent or less of ha- a building and killing people, people vince the people on the left that we beas corpus petitions involve the death who are the victims of that, and survi- ought to have a workable, reassurable, penalty at all. That is, less than 100 out vors, would like to be sure that the ap- predictable death penalty that would of 10,000 habeas corpus petitions in- peals cannot go on and on and on, as inexorably exact the punishment that volve the death penalty. they do now. So bringing to closure was intended. Habeas corpus appeals have been We worked fro 20 years in this Cham- and bringing the sentence that is im- brought by gun owners who feel that posed into reality does have something ber to try to accomplish a death pen- they have been unjustly imprisoned for to do with bombing buildings, and that alty, because 80 percent of the Amer- exercising their second amendment has something to do with terrorism. ican people wanted to see it happen. rights. They have been brought by pro- Mr. FROST. Mr. Speaker, I yield 1 Then when we see the World Trade life protesters, who feel that they have minute to the gentleman from Massa- Center tragedy and other terrorism been unjustly imprisoned by their first chusetts [Mr. KENNEDY]. that has wreaked havoc across our amendment rights being suspended. Mr. KENNEDY of Massachusetts. Mr. land, then we reinstate the notion that They have been brought by people who Speaker, I do not quibble with the fact we need the death penalty to allow a have been protesting on the pro-life that we can impose tougher sentencing jury to exercise that ultimate option. side. They span the whole philosophical on people involved in terrorist activi- Now we have before us a habeas cor- gamut of our Constitution. ties. That is, obviously, a terrorism pus procedure that forbade the final so- Mr. Speaker, this is a constitutional issue. But I would say to the gen- lution to the death penalty problem; attack that we are engaged in. First, tleman from Illinois [Mr. HYDE], there namely, the execution of the killer. petitioners are limited to one petition, is no one in this Congress who has Here is a killer who viciously kills hun- 1 year of exhausting their appeals. By stood up more eloquently for this Con- dreds of people in one act, who can sit imposing this limitation, important stitution in so many cases, since I have in a cell and file paper after paper, ha- new evidence, even new compelling evi- been here over the course of the last beas corpus and other documents, to dence of one’s innocence, can no longer decade, than he. prevent the ultimate punishment that be offered in a court of law to prove Mr. HYDE. Mr. Speaker, I thank the the jury prescribed for him. one’s innocence. Compelling new evi- gentleman. In this antiterrorism bill, there is a dence of one’s innocence can no longer Mr. KENNEDY of Massachusetts. At strong, strong chain of events that lead be offered, after that one bite within 1 times, when it cuts against even issues from the kinds of acts that we abhor, year. that the gentleman believes in, I have like Oklahoma City, like the World We have seen the advances that our seen him stand up on the House floor Trade Center and others too horrible to country has made in DNA, and DNA to stand up for the Constitution of this conceive, where a jury is entitled to evidence is now coming forward to re- country. What we have here is an impose the death penalty. And we veal that people who have been in jail undoing of the Federal Government’s should not shrink from the responsibil- for 10 years, 15 years, are being held rights to intervene in the State courts. ity of making sure that their final unjustly, without any contradiction, That is what is wrong with this bill. judgment is not set aside or weakened and we are willing to compromise the The gentleman can make the argu- or laughed at by reason of the frivolous most basic thing, innocence, for politi- ment that this is necessary because he appeals that have been filed time after cal expediency. is so angry at these terrorists and the time in the history of these actions. Habeas corpus is only in the Federal kinds of activities that they are in- Mr. Speaker, I support the rule and I Constitution, yet this bill says that the volved with, but that does not excuse will support the conference report. It is Federal courts must defer to State us from intervening in a way that the a good antiterrorism mechanism that courts in the interpretation. That is Constitution has always protected this allows for the death penalty to be ap- unprecedented. Never has it happened country. If we are going to do it, we plied as a deterrent to future bombings in this country. Sandra Day O’Connor, ought to do it on its own two legs, not like Oklahoma City, and as a punish- not one of your liberal bastions, and by linking it to this terrorism bill. ment for those who do commit those you can call me anything, but she is Mr. HYDE. Mr. Speaker, will the gen- kinds of acts. certainly not there, she said that the tleman yield? Mr. FROST. Mr. Speaker, I yield 6 Federal courts must presume the cor- Mr. KENNEDY of Massachusetts. I minutes to the gentleman from North rectness of the State courts’ legal con- yield to the gentleman from Illinois. Carolina [Mr. WATT]. clusions on habeas, or that State April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3603 courts’ incorrect legal determination before these kinds of tragedies exist ism. I am sure that an impartial jury, has ever been allowed to stand because and before they happen, to be able to considering the nature of the Libyan it was reasonable. catch the particular individuals in- act and its origin in Libyan Govern- What is a reasonable, unreasonable, volved. That is what law enforcement ment policy, will conclude that finan- interpretation of the Constitution? We is all about. cial compensation is indeed due to the have to defer only if the State court Let us understand one thing here. families of the Pan Am 103 victims. does something out of the ordinary, or The FBI and law enforcement is not The administration, for reasons that unreasonable. It is the Federal court’s the enemy. The enemy is the terrorists no one has ever really satisfactorily ex- prerogative and responsibility to deter- and people who would take advantage plained, opposed giving the families of mine our Federal constitutional rights. of our open system to further their po- the victims of state-sponsored terror- Mr. Speaker, even Justice Rehnquist litical goals through the use of vio- ism this right to compensation, but it recently said that ‘‘Judicial independ- lence. has changed its mind in recent weeks. ence is one of the crown jewels of our Our best protection against that kind I am glad that the White House has system of government.’’ of violence is the ability of law en- agreed to sign this important bill into Mr. Speaker, we cannot sacrifice our forcement to ferret out beforehand law. constitutional principles because we those kinds of individuals, and use law- The families of Pan Am 103/Lockerbie are angry at people for bombing. The ful techniques to investigate those per- have endorsed this bill. I urge all of our constitutional principles that I am ar- petrators or those potential perpetra- colleagues in the House to support this guing for are for every single Amer- tors. So let us give, hopefully, the ben- legislation and send it to the President ican, and the minute we start com- efit of the doubt to our judicial system for his signature. promising them to get terrorists, to and to our law enforcement officials to We grieve for the loss of the get anyone, we must compromise them make those kinds of determinations. Cummock family and indeed all of the for everyone. Mr. Speaker, those of us who in the victims of the Pan Am 103/Lockerbie Think about the number of cases in past have done this for a living under- incident. our judicial system that involve terror- stand how important wiretap evidence Ms. PRYCE. Mr. Speaker, I yield 3 ist acts. They are few. We get angry is. I am sorry it was not part of this minutes to the gentleman from Illinois about them. But think, on the other conference report, but we ought to get [Mr. HYDE], the chairman of the Com- side, that our Constitution was written to that later and I would suggest we do mittee on the Judiciary. not to protect those people, but to pro- so. (Mr. HYDE asked and was given per- tect every American. We are sacrific- Ms. PRYCE. Mr. Speaker, I yield 3 mission to revise and extend his re- ing our own individual liberties and minutes to the gentlewoman from marks.) our own constitutional rights for the Florida [Ms. ROS-LEHTINEN]. Mr. HYDE. Mr. Speaker, I regret the political expediency that goes with Ms. ROS-LEHTINEN. I thank the gentleman from North Carolina has passage of this bill. gentlewoman for yielding me the time. left the floor. I hope he can hear me, Ms. PRYCE. Mr. Speaker, I yield 2 Mr. Speaker, today as we consider anyway. He said some rather harsh minutes to the distinguished gen- the antiterrorism bill, we do so in the things. tleman from the great State of Ohio memory also of those who were bru- He said this bill is a fraud. Since I am [Mr. OXLEY]. tally killed when Libryan Government the chief sponsor of the bill, I guess I (Mr. OXLEY asked and was given agents placed a bomb on Pan Am 103 on am trying to impose a fraud on Amer- permission to revise and extend his re- December 21, 1988. We can never forget ica. Frankly, given the hyperbolic ten- marks.) the horror of that day. dencies of all of us, even that is a little Mr. OXLEY. Mr. Speaker, I thank As we learned of the loss of Pan Am bit much. the gentlewoman for yielding time to 103, each of us thought of the great He said the bill has nothing to do me. human tragedy that had struck the with terrorism. Then he talked about Mr. Speaker, let me first say that I families of those who were passengers habeas corpus. I just wish he would support the rule and I will support the on that plane. Those passengers were read the bill, or at least the same bill conference report. I think there are a flying home for the Christmas holi- that I read. lot of positive things that are in the days, and each of us knew in our hearts This bill provides for an open des- conference report, including manda- how much their families were suffer- ignation process of what is a foreign tory victims’ restitution, a bill that I ing. terrorist organization. It denies those have introduced in several Congresses For those who lost their loved ones terrorist organizations the ability to and hope will finally get a signature in this despicable act of state terror- raise money in this country. It pro- for that particular provision, habeas ism, there can never be a moment’s vides authority to the State Depart- corpus reform, which I have also sup- rest while those responsible for the ment to deny entrance visas to mem- ported, and particularly the FBI murder of their loved ones remain at bers of those designated foreign terror- counterterrorism center and funds large. ist organizations. It provides a fair and available for that counterterrorism My good friend Victoria Cummock of even process to deport alien terrorists. center. Coral Gables, FL, is president of a It denies assistance to foreign coun- group called ‘‘Families of Pan Am 103/ tries that do not cooperate with us in b 1245 Lockerbie.’’ Her husband, John our antiterrorism efforts. I think that the conference commit- Binning Cummock, was a victim of the It provides that foreign air carriers tee overall did an excellent job in Libyan terrorists that day. that travel to and from the United crafting this legislation. I have to Victoria and many others in her States abide by the same safety meas- agree, however, with my good friend group have worked for many years ures that American air carriers must from New York, Mr. SCHUMER, on one with diligence and dedication to en- follow; mandatory victim restitution, particular provision that was left out courage the Congress to enact effective not discretionary; criminal alien de- of the conference report, and that is legislation against terrorism so that no portation improvements; granting Fed- the multipoint wiretap provision. other family will again experience the eral courts jurisdiction to hear civil I can see no reason why that particu- tragedy that befell the families of Pan suits against state-sponsored terror- lar provision, which was requested spe- Am 103. Although nothing can ever re- ism; mandatory minimum penalties for cifically by the FBI and by Director place their loved ones and there is no explosive crimes; protection of all cur- Freeh, would be left out of the con- word of comfort that any of us could rent and former Federal employees who ference report. All of the safeguards say to alleviate their loss, we can bring are attacked on account of their em- that are currently in the law regarding the Libyan Government to justice by ployment. wiretaps would be contained in that voting for this bill. That has nothing to do with terror- provision. The bill creates a right for American ism? I find that incredible. Wiretaps are an important tool of citizens to sue in American courts any As far as the deference that a Federal law enforcement to try to determine, government that sponsors state terror- judge must give in a habeas proceeding H3604 CONGRESSIONAL RECORD — HOUSE April 18, 1996 to a State court decision, I simply say Let me say in closing that the con- Hastert McCrery Schaefer Hastings (WA) McDade Schiff the State judge went to the same law ferees have worked very hard to Hayworth McHugh Seastrand school, studied the same law and produce an agreement that I believe as- Hefley McInnis Sensenbrenner passed the same bar exam that the signs the Federal Government a rea- Hefner McKeon Shadegg Federal judge did. The only difference sonable and legitimate role in the fight Heineman Metcalf Shaw Herger Meyers Shays is the Federal judge was better politi- against terrorism. This legislation has Hilleary Mica Shuster cally connected and became a Federal not been developed hastily. In fact, it Hobson Miller (FL) Sisisky judge. has been nearly a yearlong process to Hoekstra Molinari Skeen But I would suggest to my colleague Hoke Mollohan Skelton craft a bill that provides law enforce- Holden Montgomery Smith (MI) when the judge raises his hand, State ment with the tools they need to effec- Horn Moorhead Smith (NJ) court or Federal court, they swear to tively deter and punish terrorism, but Hostettler Morella Smith (TX) defend the U.S. Constitution, and it is in a way that balances public safety Houghton Murtha Smith (WA) Hunter Myers Solomon wrong, it is unfair to assume, ipso and security with individual rights and Hutchinson Myrick Spence facto, that a State judge is going to be liberties. Hyde Nethercutt Spratt less sensitive to the law, less scholarly It is vitally important that would-be Inglis Neumann Stearns in his or her decision than a Federal Istook Ney Stenholm terrorists understand our firm commit- Johnson (CT) Norwood Stockman judge. The Federal judge still has to ment to protecting our citizens from Johnson, Sam Nussle Stump look at the work product of the State the threat of terrorist acts, especially Jones Obey Talent court to decide if they got it right. here in these great United States. Kasich Orton Tate Somehow, somewhere we are going to Kelly Oxley Tauzin Mr. Speaker, I yield back the balance Kennelly Packard Taylor (MS) end the charade of endless habeas proof my time, and I move the previous Kim Parker Taylor (NC) ceedings, and this bill is going to do it. question on the resolution. King Paxon Tejeda Mr. FROST. Mr. Speaker, I yield my- The SPEAKER pro tempore (Mr. Kingston Payne (VA) Thomas self such time as I may consume. Kleczka Pelosi Thornberry GILLMOR). The question is on ordering Klug Peterson (MN) Thornton Mr. Speaker, I will ultimately vote the previous question. Knollenberg Petri Tiahrt for the conference report. However, I Kolbe Pickett Torkildsen The question was taken; and the LaHood Pombo Traficant again urge a ‘‘no’’ vote on the previous Speaker pro tempore announced that question on the rule. Largent Porter Upton the ayes appeared to have it. Latham Portman Volkmer If the previous question is defeated, I Mr. FROST. Mr. Speaker, I object to LaTourette Poshard Vucanovich intend to offer an amendment to the Laughlin Pryce Walker the vote on the ground that a quorum rule which would provide that the Lazio Quillen Walsh is not present and make the point of Leach Quinn Wamp House will have adopted a concurrent order that a quorum is not present. Lewis (CA) Ramstad Watts (OK) resolution directing the Clerk to cor- The SPEAKER pro tempore. Evi- Lewis (KY) Regula Weldon (FL) rect the enrollment of this conference Lightfoot Riggs Weldon (PA) report by adding language granting law dently a quorum is not present. Lincoln Roberts White Linder Roemer Whitfield enforcement agencies new wiretap au- The Sergeant at Arms will notify absent Members. Lipinski Rogers Wicker thority. Livingston Rohrabacher Williams Mr. Speaker, the text of the amend- Pursuant to the provisions of clause 5 LoBiondo Ros-Lehtinen Wise ment is as follows: of rule XV, the Chair announces that Longley Roth Wolf he will reduce to a minimum of 5 min- Lucas Roukema Young (AK) At the end of the resolution, add the fol- Manton Royce Young (FL) lowing: utes the period of time within which a Manzullo Salmon Zeliff Section . Upon the adoption of this reso- vote by electronic device, if ordered, Martini Sanford Zimmer lution, the House shall be considered to have will be taken on the question of agree- Mascara Saxton adopted a concurrent resolution directing ing to the resolution. McCollum Scarborough the Clerk of the House to correct the enroll- The vote was taken by electronic de- NAYS—148 ment of S. 735 and consisting of the text con- vice, and there were—yeas 274, nays Abercrombie Fattah Matsui tained in the next section of this resolution. Section . Resolved by the House of Rep- 148, not voting 10, as follows: Ackerman Fazio McCarthy Andrews Fields (LA) McDermott resentatives (The Senate concurring), that in [Roll No. 124] Baesler Filner McHale the enrollment of the bill (S. 735) the Terror- YEAS—274 Baldacci Flake McKinney ism Prevention Act, the Clerk of the House Barcia Foglietta McNulty Allard Castle Emerson of Representatives shall make the following Barrett (WI) Ford Meehan Archer Chabot English Becerra Frank (MA) Meek corrections: Armey Chambliss Ensign Beilenson Frost Menendez At the appropriate place, add the follow- Bachus Chenoweth Everett Bentsen Furse Millender- ing: Baker (CA) Christensen Ewing Berman Gejdenson McDonald Baker (LA) Chrysler Fawell SEC. . EXPANDED AUTHORITY FOR MULTI- Bishop Gephardt Miller (CA) Ballenger Clement Flanagan POINT WIRETAPS. Bonior Green (TX) Minge Barr Clinger Foley Section 2518(11) of title 18, United States Borski Gutierrez Mink Barrett (NE) Coble Forbes Code, is amended to read as follows: Boucher Hall (OH) Moakley Barton Coburn Fowler ‘‘(11) The requirements of subsections Brown (CA) Harman Moran Bass Coleman Fox (1)(b)(ii) and (3)(d) of this section relating to Brown (FL) Hastings (FL) Nadler Bateman Collins (GA) Franks (CT) Brown (OH) Hilliard Neal the specifications of facilities from which or Bereuter Combest Franks (NJ) Cardin Hinchey Oberstar the place where the communication is to be Bevill Condit Frelinghuysen Chapman Hoyer Olver intercepted do not apply if in the case of an Bilbray Cooley Frisa Clay Jackson (IL) Ortiz Bilirakis Costello Funderburk application with respect to the interception Clayton Jacobs Owens Bliley Cox Gallegly of wire, oral or electronic communications— Clyburn Jefferson Pallone Blute Cramer Ganske ‘‘(a) the application is by a federal inves- Collins (IL) Johnson (SD) Pastor Boehlert Crane Gekas tigative or law enforcement officer, and is Collins (MI) Johnson, E. B. Payne (NJ) Boehner Crapo Geren approved by the Attorney General, the Dep- Conyers Johnston Peterson (FL) Bonilla Cremeans Gilchrest Coyne Kanjorski Pomeroy uty Attorney General, the Associate Attor- Bono Cubin Gillmor Danner Kaptur Radanovich ney General, or an Assistant Attorney Gen- Brewster Cunningham Gilman de la Garza Kennedy (MA) Rahall eral (or acting in any such capacity); Browder Davis Gonzalez DeLauro Kennedy (RI) Rangel Brownback Deal Goodlatte ‘‘(b) the application contains full and com- Dellums Kildee Reed Bryant (TN) DeFazio Goodling plete statements as to why such specifica- Dicks Klink Richardson Bryant (TX) DeLay Gordon tions is not practical and identifies the per- Dixon LaFalce Rivers Bunn Deutsch Goss son committing the offense and whose com- Doggett Lantos Rose Bunning Diaz-Balart Graham Dooley Levin Roybal-Allard munications are to be intercepted; and Burr Dickey Greene (UT) Doyle Lewis (GA) Rush ‘‘(c) the judge finds that such specification Burton Doolittle Greenwood Durbin Lofgren Sabo is not practical.’’ Buyer Dornan Gunderson Edwards Lowey Sanders Callahan Dreier Gutknecht Mr. Speaker, I yield back the balance Engel Luther Sawyer Calvert Duncan Hall (TX) of my time. Eshoo Maloney Schroeder Camp Dunn Hamilton Evans Markey Schumer Ms. PRYCE. Mr. Speaker, I yield my- Campbell Ehlers Hancock Farr Martinez Scott self such time as I may consume. Canady Ehrlich Hansen April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3605 Serrano Torres Watt (NC) Istook Montgomery Shays Greenwood Largent Reed Slaughter Torricelli Waxman Johnson (CT) Moorhead Shuster Hayes McIntosh Salmon Stark Towns Weller Johnson (SD) Moran Sisisky Hunter Millender- Tanner Stokes Velazquez Wilson Johnson, Sam Morella Skeen Jackson-Lee McDonald Thompson Studds Vento Woolsey Jones Murtha Skelton (TX) Owens Stupak Visclosky Wynn Kasich Myrick Smith (MI) Thompson Ward Yates Kelly Nethercutt Smith (NJ) b 1324 Thurman Waters Kennelly Neumann Smith (TX) Kim Ney Smith (WA) Mr. LUTHER changed his vote from NOT VOTING—10 King Norwood Solomon ‘‘aye’’ to ‘‘no.’’ Bartlett Hayes Skaggs Kingston Nussle Spence So the resolution was agreed to. Dingell Jackson-Lee Souder Kleczka Ortiz Stearns The result of the vote was announced Fields (TX) (TX) Tanner Klug Orton Stenholm Gibbons McIntosh Knollenberg Oxley Stockman as above recorded. Kolbe Packard Stump A motion to reconsider was laid on b 1314 LaFalce Parker Stupak the table. Latham Paxon Talent Mr. STUPAK, Mr. GEPHARDT, and LaTourette Payne (VA) Tate f Ms. RIVERS changed their vote from Laughlin Peterson (FL) Tauzin Lazio Petri Taylor (MS) PERSONAL EXPLANATION ‘‘yea’’ to ‘‘nay.’’ Leach Pickett Taylor (NC) Mr. HOLDEN, Mrs. CUBIN, Mrs. Lewis (CA) Pombo Tejeda Ms. MILLENDER-MCDONALD. Mr. KENNELLY, and Messrs. OBEY, Lewis (KY) Pomeroy Thomas Speaker, I was unavoidably detained WAMP, PETERSON of Minnesota, Lightfoot Porter Thornberry with constituents and unable to vote Lincoln Portman Thornton MOLLOHAN, and WISE changed their Linder Poshard Thurman on rollcall 125. Had I been present I vote from ‘‘nay’’ to ‘‘yea.’’ Lipinski Pryce Tiahrt would have voted ‘‘aye.’’ So the previous question was ordered. Livingston Quillen Torkildsen f The result of the vote was announced LoBiondo Quinn Torricelli Longley Radanovich Traficant REMOVAL OF NAME OF MEMBER as above recorded. Lucas Ramstad Upton The SPEAKER pro tempore (Mr. Manton Regula Volkmer AS COSPONSOR OF H.R. 2060 GILLMOR). The question is on the reso- Manzullo Richardson Vucanovich Mr. BURTON of Indiana. Mr. Speak- Martini Riggs Walker lution. Mascara Roberts Walsh er, I ask unanimous consent that my The question was taken; and the McCarthy Roemer Wamp name be removed as a cosponsor of Speaker pro tempore announced that McCollum Rogers Ward H.R. 2060. McCrery Rohrabacher Watts (OK) the ayes appeared to have it. McDade Ros-Lehtinen Weldon (FL) The SPEAKER pro tempore. Is there RECORDED VOTE McHale Roth Weldon (PA) objection to the request of the gen- Mr. DICKS. Mr. Speaker, I demand a McHugh Roukema White tleman from Indiana? McInnis Royce Whitfield There was no objection. recorded vote. McKeon Sanford Wicker A recorded vote was ordered. McNulty Saxton Williams f The SPEAKER pro tempore. This is a Menendez Schaefer Wolf 5-minute vote. Metcalf Schiff Young (AK) REMOVAL OF NAME OF MEMBER Meyers Schumer Young (FL) AS COSPONSOR OF H.R. 789 AND The vote was taken by electronic de- Mica Seastrand Zeliff vice, and there were—ayes 289, noes 125, Miller (FL) Sensenbrenner Zimmer H.R. 2472 not voting 18, as follows: Moakley Shadegg Mr. RIGGS. Mr. Speaker, I ask unan- Molinari Shaw [Roll No. 125] imous consent that my name be re- AYES—289 NOES—125 moved as a cosponsor of H.R. 789 and as a cosponsor of H.R. 2472. Allard Chambliss Franks (CT) Abercrombie Gibbons Obey Archer Chenoweth Franks (NJ) Ackerman Gonzalez Olver The SPEAKER pro tempore. Is there Armey Christensen Frelinghuysen Andrews Gordon Pallone objection to the request of the gen- Baldacci Gutierrez Pastor Bachus Chrysler Frisa tleman from California? Baesler Clement Frost Barcia Hall (OH) Payne (NJ) Baker (CA) Clinger Funderburk Barrett (WI) Hastings (FL) Pelosi There was no objection. Baker (LA) Coble Furse Becerra Hilliard Peterson (MN) f Ballenger Coburn Gallegly Berman Hinchey Rahall Barr Coleman Ganske Bishop Jackson (IL) Rangel CONFERENCE REPORT ON S. 735, Barrett (NE) Collins (GA) Gekas Bonior Jacobs Rivers Bartlett Combest Geren Brown (CA) Jefferson Rose ANTITERRORISM AND EFFEC- Barton Condit Gilchrest Brown (OH) Johnson, E. B. Roybal-Allard TIVE DEATH PENALTY ACT OF Bass Cooley Gillmor Bryant (TX) Johnston Rush 1996 Bateman Cox Gilman Chapman Kanjorski Sabo Beilenson Cramer Goodlatte Clay Kaptur Sanders Mr. HYDE. Mr. Speaker, pursuant to Bentsen Crapo Goodling Clayton Kennedy (MA) Sawyer House Resolution 405, I call up the con- Clyburn Kennedy (RI) Scarborough Bereuter Cremeans Goss ference report on the Senate bill (S. Bevill Cunningham Graham Collins (IL) Kildee Schroeder Bilbray Davis Green (TX) Collins (MI) Klink Scott 735), to prevent and punish acts of ter- Bilirakis de la Garza Greene (UT) Conyers LaHood Serrano rorism, and for other purposes. Bliley Deal Gunderson Costello Lantos Skaggs The Clerk read the title of the bill. Blute DeLauro Gutknecht Coyne Levin Slaughter Boehlert DeLay Hall (TX) Danner Lewis (GA) Souder The SPEAKER pro tempore. Pursu- Boehner Deutsch Hamilton Dellums Lofgren Spratt ant to rule XXVIII, the conference re- Bonilla Diaz-Balart Hancock Dixon Lowey Stark port is considered as having been read. Doggett Luther Stokes Bono Dickey Hansen (For conference report and state- Borski Dicks Harman Dooley Maloney Studds Boucher Doolittle Hastert Durbin Markey Torres ment, see proceedings of the House of Brewster Dornan Hastings (WA) Engel Martinez Towns April 15, 1996, at page H3305.) Browder Doyle Hayworth Eshoo Matsui Velazquez The SPEAKER pro tempore. The gen- Brown (FL) Dreier Hefley Evans McDermott Vento Brownback Duncan Hefner Farr McKinney Visclosky tleman from Illinois [Mr. HYDE] will be Bryant (TN) Dunn Heineman Fattah Meehan Waters recognized for 30 minutes, and the gen- Fazio Meek Watt (NC) Bunn Edwards Herger tleman from Michigan [Mr. CONYERS] Fields (LA) Miller (CA) Waxman Bunning Ehlers Hilleary will be recognized for 30 minutes. Burr Ehrlich Hobson Filner Minge Weller Burton Emerson Hoekstra Flake Mink Wilson The Chair recognizes the gentleman Buyer English Hoke Foglietta Mollohan Wise from Illinois [Mr. HYDE]. Callahan Ensign Holden Ford Myers Woolsey GENERAL LEAVE Calvert Everett Horn Frank (MA) Nadler Wynn Camp Ewing Hostettler Gejdenson Neal Yates Mr. HYDE. Mr. Speaker, I ask unani- Campbell Fawell Houghton Gephardt Oberstar mous consent that all Members may Canady Flanagan Hoyer have 5 legislative days in which to re- Cardin Foley Hutchinson NOT VOTING—18 Castle Fowler Hyde Crane DeFazio Fields (TX) vise and extend their remarks on the Chabot Fox Inglis Cubin Dingell Forbes conference report on S. 735. H3606 CONGRESSIONAL RECORD — HOUSE April 18, 1996 The SPEAKER pro tempore. Is there Raising money in this country is the ume sometimes overwhelms the quieter objection to the request of the gen- lifeblood of many organizations, not voice that differentiates between right and tleman from Illinois? excluding terrorists, and we put a stop wrong. The people who killed my husband, There was no objection. to that with this bill. his coworkers and other law-abiding Ameri- cans did not give a damn whether they were Mr. HYDE. Mr. Speaker, I yield my- We also, under this bill, we have a killing Republicans or Democrats. I am ask- self 10 minutes. procedure for excluding alien terror- ing that you call on your colleagues to have (Mr. HYDE of Illinois asked and was ists. We authorize the State Depart- a similar blindness to party to do one thing, given permission to revise and extend ment’s embassy officials overseas to only one thing: Give us justice. his remarks.) deny entrance visas to members and Diane Leonard, widow of Donald Leonard, Mr. HYDE. Mr. Speaker, 132 years representatives of those same des- U.S. Secret Service victim, Oklahoma bomb- ago, in a small cemetery in Pennsylva- ignated foreign terrorist organizations. ing. nia, one of America’s great presidents The Washington Post had an editorial Mandatory victim restitution, right asked a very haunting question, wheth- this morning talking about keeping now it is discretionary. Under this bill, er a nation conceived in liberty and out alien terrorists that we might want it is mandatory. Think of the victims dedicated to the proposition that all to come in so we can negotiate with and think of the victims first. Criminal men are created equal could long en- them. alien deportation improvements, allow- dure. Our answer to that question de- I suggest that the law has permitted ing for district court judges to order pends on how we legislate to protect a that to happen, not this law but other the deportation of aliens convicted of free people from those evil forces who laws. Yasser Arafat, Gerry Adams, peo- Federal crimes, not just because they seek our destruction through violence ple have come into this country under are aliens. They are in the slammer for and terrorism. the law. And so this is not a hard and Federal crimes. But at the end of their The bill, the conference report that fast blanket exclusion. Prohibitions on term, they can get deported with expe- we have before us today, does that in foreign assistance, countries that do dition rather than go through another exemplary fashion. It maintains the not cooperate with us in our and another and another hearing. delicate balance between liberty and antiterrorist acts will not get foreign We also have maintained a taggant order, between our precious freedoms assistance. study. We put taggants in plastic and defending this country, something On foreign air carrier safety, the con- which is used for bombs. But as for we have sworn to do when we took our ference report requires foreign air car- other substances, it is a fact, and this oath of office to defend the Constitu- riers that come into our country and is not the NRA talking. It is a fact that tion and the country behind it. leave our country provide the same se- we are not sure how safe and how effi- cacious, how efficient and how cost ef- b 1330 curity and safety measures, the identical ones that American air carriers fective they are in things like fer- Now, this bill has had a stormy odys- must follow under regulations promul- tilizer. We are going to have a study, sey, and I think it is worthwhile to re- gated by the FAA. Those are important and that study is going to be a sci- capitulate a little bit. First of all, what antiterrorist laws that will help us pro- entific one, an objective one. Following has been added to the bill as it passed tect ourselves in the future, and any- that study, regulations may be promul- the House? Removal of alien terrorists. one who says that there are not serious gated and Congress will have a chance These provisions allow for the removal antiterrorist measures in this bill as to look at them, 9 months of review to of alien terrorists fairly and with due not read it. determine whether we should put process but also with protections ade- Now, habeas corpus reform, that is taggants in other substances. quate to safeguard sources and meth- the Holy Grail. We have pursued that I think it is sensible, a mainstream ods of classified information. for 14 years, in my memory. The ab- solution. Under the conference report, the surdity, the obscenity of 17 years from On expedited asylum procedures, the alien will be given a declassified sum- the time a person has been sentenced conference report does not add any mary of the classified information, and till that sentence is carried out wiretap authorities that were not in this summary must be sufficient to en- through endless appeals, up and down the bill when it left the House. It does able the alien to prepare a defense. If the State court system, and up and not give law enforcement any addi- the district court judge presiding over down the Federal court system, makes tional access to consumer credit re- the hearing determines that it is not a mockery of the law. It also imposes a ports or common carrier records. It adequate to prepare a defense, the cruel punishment on the victims, the does not give the military any in- hearing terminates and the alien goes survivors’ families, and we seek to put creased role in civilian law enforce- free. But we must protect sources, we an end to that. ment. must protect methods. We must bal- We are not shredding the Constitu- Now, these are here, some things I ance that with the need for a fair hear- tion. We are shaping a process to keep would love to have in the bill. I would ing. it within the ambit of the Constitu- love to have the multipoint wire- So, we think this strikes the appro- tion, but to bring justice to the Amer- tapping authority. I would love to use priate balance. There will be no secret ican people. That is what we have done the technology and expertise of the proceedings or anything like that. Des- with habeas corpus reform, and I sim- military when chemical, biological, ignation of foreign terrorist organiza- ply direct attention to quotations from and nuclear weapons are used in public, tions, we got that back in the bill. It President Bill Clinton, who has said in but that is not in the bill. We did not was taken out on the floor earlier. But death penalty cases, it normally takes have the votes, and so we put that we have provided that the Secretary of 8 years to exhaust the appeals. It is ri- aside in the interest of getting a good State, in cooperation with the Attor- diculous, 8 years is ridiculous; 15 and 17 bill. ney General and the Secretary of the years is even more so. So heed the The survivors want the habeas cor- Treasury, can designate terrorist orga- words of our President on this subject. pus. Habeas corpus is tied up with ter- nizations. Now, we have a 1-year statute of lim- rorism because when a terrorist is con- We are not talking about countries itations in habeas. Nothing wrong with victed of mass killings, we want to now. That is under another law. They that. make sure that terrorist ultimately can designate terrorist organizations. I would like to read. I have left the and reasonably has the sentence im- They must notify Congress within 7 letter up there. Diane Leonard, who is posed on him or her. It is not incom- days. We have a chance to review that, the wife of a Secret Service agent who mensurate with the Constitution, it and we can set it aside if we wish. With was killed in Oklahoma City, sent this follows the Constitution and due proc- that authority, the Secretary of the letter, which I just received today: ess. Treasury can freeze assets in this coun- So let us answer Lincoln’s haunting Dear Congressman HYDE, The try that belong to terrorist organiza- antiterrorism bill has reached this far and question yes, a country conceived in tions. represents a victory for the vast majority of liberty can long endure. Also back in the bill is the prohibi- Americans over extremists of the left and Mr. Speaker, I include for the tion against terrorist fundraising. right. A victory over extremists whose vol- RECORD the following information: April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3607 SECTION 806 Congress does not intend the Commission get into that. That is foreign policy. By enacting section 806, Congress intends to examine issues or cases involving national What about cooperation with the Fed- that the Commission examine closely the pri- security. eral law and the U.S. military? Oh, no, orities and structure of Federal law enforce- Mr. Speaker, I reserve the balance of let us not do that. So what we have is ment as we head into the 21st century. The my time. a bill that has taken out the guts of ev- large proliferation of Federal agencies with law Mr. CONYERS. Mr. Speaker, I yield erything that should have been in it, enforcement authorities, overlapping jurisdic- myself 4 minutes. and everything that could have been tion, nonstandardized policies and procedures Mr. HYDE. Mr. Speaker, I yield 30 agreed on 1 year ago is in it and we are among the various agencies, and separate seconds to the gentleman from Michi- real proud of that. training and administrative functions require gan [Mr. CONYERS]. This is a gutless bill, and how dare examination to determine if Federal law en- The SPEAKER pro tempore (Mr. those tough crime fighters suggest that forcement effectiveness can be increased in LINDER). The gentleman from Michigan this is going to stop something? Oh, an era of fiscal austerity. [Mr. CONYERS] is recognized for 4 min- yeah, and then we throw in habeas so There are clear distinctions in procedures, utes and 30 seconds. that a suicide bomber is going to read (Mr. CONYERS asked and was given planning, and capabilities of the various law the new habeas law and he will get exe- permission to revise and extend his re- enforcement agencies. This is especially so cuted quicker. I say to the gentleman when, as has increasingly become the case, marks.) Mr. CONYERS. Mr. Speaker, we are from Illinois [Mr. HYDE], he is willing Federal and local officials are working jointly to blow himself up. He does not need on investigations and operations. Congress in- here to discuss this bill. We have re- your law to help him get executed. tends the Commission to examine issues of ceived the quotations from President Mr. HYDE. Mr. Speaker, will the gen- coordination to ensure effective utilization of Clinton and former Presidents, but let tleman yield? scarce resources and to ensure proper Fed- us look at what the gentleman from Il- Mr. CONYERS. I yield to the general support for State and local law enforce- linois [Mr. HYDE] is talking about. tleman from Illinois. ment. He is proud of the fact that we imple- Accountability for law enforcement oper- ment the convention on marketing Mr. HYDE. Mr. Speaker, is the gen- ations has increasingly become an issue be- plastic explosives that was non- tleman aware that at the World Trade fore Congress. Congress specifically intends controversial. Restrictions on biologi- Center there were no suicide bombers? that the Commission examine who within the cal and chemical weapons, hooray, that Is the gentleman aware that at Okla- executive branch should ultimately be respon- was uncontroversial. We got in the bill homa City there were no suicide bomb- sible, short of the President, for interagency mandatory victim restitution. Do you ers? coordination, uniform standards, ethical stand- remember anybody ever quarreling Mr. CONYERS. Then that makes it ards and the other issues common to all Fed- with that? Not hardly. OK then to bring in habeas? eral law enforcement agencies. Congress be- Mr. Speaker, now we come to all of Mr. HYDE. No. That is an easy ques- lieves the current proliferation of agencies, the the Barr provisions that were killed tion to answer. Just yes or no. confusion and dangers that result therefrom out of this bill by 246 votes, a majority. Mr. CONYERS. Mr. Speaker, yes. and the lack of clear accountability and re- Remember that? That was not such a Mr. HYDE. Mr. Speaker, I thank the sponsibility has lead to an unhealthy level of great day on the floor, because the gen- gentleman. competition fostering operations and inefficien- tleman from Georgia [Mr. BARR] Mr. Speaker, I yield 5 minutes to the cies that are not in the best interests of public thought we should not strengthen the gentleman from Georgia [Mr. BARR], safety. criminal alien deportation procedure, the distinguished gentleman who Congress does not intend by the establish- so he kicked it out and it won. The played a key role in the shaping of this ment of this Commission to create an over- gentleman from Georgia [Mr. BARR] bill. sight function separate from that already per- thought that we should not expedite b 1345 formed by Congress. Congress historically has the deportation of terrorists, and it Mr. BARR of Georgia. Mr. Speaker, I always been very mindful of the dangers in- won and we kicked it out. The gen- thank the gentleman from Illinois, the herent in examining specific cases, of protect- tleman from Georgia [Mr. BARR] distinguished chairman of the Commit- ing raw investigative information and from en- thought that there should not be a ban suring that the political process does not im- on fundraising by terrorist groups, and tee on the Judiciary, for yielding time pede or intimidate those line investigators and he won and we kicked it out. Now in to me. prosecutors charged with enforcing the law. the conference we got pieces of it back The gentleman from Illinois, the The managers realize that having an outside in. chairman, has done tremendous service Commission examining cases and the details I am very happy that the chairman of to the people of America in his work on of investigations could have a chilling effect on the Committee on the Judiciary wishes this piece of legislation, this historic those who must protect our public safety. that we had wiretap authority for ter- piece of legislation, and I am proud to Congress believes that to ensure the protec- rorists, not for stealing cars, not for hi- have been associated with him and tion of the privacy and civil rights of people in- jacking, not for simple felony crimes, with this legislation. vestigated but not charged, the Commission but terrorism, this one thing that we Mr. Speaker, today the American must not examine specific investigations or in- are dealing with so completely here people have much to be proud of, much vestigative or prosecutive strategies. Likewise, this afternoon. But we do not want to be optimistic about for the future to ensure that investigations remain wiretap authority extended. Oh, yes, credibility, integrity and ability of our unimpeded and investigators and prosecutors we got it already, but we do not have law enforcement system to seek out, remain free of the potential for influence or in- enough and it is not directed at terror- prosecute, prevent, and sentence, and timidation, the Commission must avoid exam- ists, of all people. carry out sentences effectively, effi- ining specific cases, calling as witnesses line What about identifying explosives, ciently, and within the bounds of our personnel or seeking information the disclo- which could have stopped at least one Constitution in a reasonable period of sure of which would have dire consequences, bombing I know about? Well, we do not time. for example, informant identities, confidential want to include powder and things that When I met earlier this year, Mr. witnesses, sensitive techniques, et cetera. are used in great quantity around the Speaker, with the number of individ- Even in closed cases, examination of discre- country. We will exclude that. We will uals who represented the families of tionary investigative and prosecutorial deci- put in taggants, but we will leave out victims in Oklahoma and Lockerbie, sions risk not only the appearance of political the two kinds of powder that are used they did not come to us in the Congress influence and chilling aggressive prosecution, most. What about cop killer bullets? and say the Government needs more it also threatens the due process rights of sus- Oh, do not bring that up. We will deal wiretap power, give them whatever pects and defendants. The Commission is not with that separately. Let us study the they need. They did not come to us, established to put specific cases under the mi- armor-piercing ability of the jackets Mr. Speaker, and say the Government croscope. To the contrary, it is intended to that policemen wear. Do not worry needs in order to bring justice to us, focus on macro issues that go to effective- about the bullet. more power to gain access to personal ness, coordination, efficiency and public safe- Why not make it easier to sue foreign records without a court order, so give ty. governments? Well, we do not want to them whatever they need or whatever H3608 CONGRESSIONAL RECORD — HOUSE April 18, 1996 they want. They did not come to us, keeps saying, oh, we want more wire- When the issue came up during the Mr. Speaker, and say despite the fact tap authority. They have come to us, hearings the gentleman from Illinois that for over a hundred years we have in writing and in person, on the phone [Mr. HYDE] said: ‘‘I don’t really see the held a very bright and fine and impor- and over the fax machines of this coun- wisdom of revisiting the whole habeas tant line between the functions of our try, and said we need habeas reform. argument again in this committee on military and protecting our borders That is the one thing, that most impor- this bill.’’ and domestic law enforcement, and we tant element, the crown jewel here, Now it is the keystone of the need to blur that line, and we need to that we must have. Let us today give it antiterrorist legislation. have the military involved in domestic to the American people. I know the gentleman does not re- law enforcement, so give them what- Mr. CONYERS. Mr. Speaker, I yield member that either. ever they want. 30 seconds to the gentleman from Mr. HYDE. As you get older. No, Mr. Speaker, the families of Rhode Island [Mr. KENNEDY]. those victims, of those people who have Mr. KENNEDY of Rhode Island. Mr. Mr. CONYERS. I know, I know, I lost loved ones, colleagues and friends Speaker, the notion that the gen- know. to acts of terrorism, came to us and tleman from Georgia [Mr. BARR], as he Check the committee hearings. said give us justice, give us habeas and was saying, represented the interests of Mr. Speaker, I reserve the balance of death penalty reform because the very law enforcement here in this bill, that my time. credibility, all of the confidence that they were adequately represented when Mr. HYDE. Mr. Speaker, I yield 3 we want to have in our criminal justice it was his amendment and his work minutes to the distinguished gen- system, is being eroded by the failure that has allowed for a study of cop kill- tleman from Indiana [Mr. BUYER], a to deliver that to the American people. er bullets to me is utter hypocrisy. valued member of the committee. And that is what this bill is about, That is all. Mr. BUYER. Mr. Speaker, I have sev- and I also say, Mr. Speaker, that to Mr. CONYERS. Mr. Speaker, I yield eral remarks I would like to make. One those warped minds who might today myself 2 minutes. is, I have enjoyed being a conferee on or tomorrow or 1 year from now or 10 Letter to Chairman ORRIN HATCH, this particular bill, moving matters of years from now contemplate, irration- who has just distinguished us with his substance. Also, I think we have to be ally as it may be, an act of terrorism presence on the floor, from one of the very careful here when we are talking against one of our citizens, against one surviving victims of the Oklahoma about family victims, of acts of terror of our Federal employees, against one City bombing: or acts of violence, whether it is the of the greatest institutions of this Fed- ‘‘I am sorry I missed you,’’the writer ranking member that has his particu- eral Government, let them think says to the gentleman from Utah [Sen- lar letter that gives, espouses one posi- longer and harder about it, as I believe ator HATCH], when I was in Washington tion, or I have a letter also from vic- they will, knowing that we have passed a couple of weeks ago. As the father of tims who espouse another position. this legislation, because it will tell someone murdered by the Oklahoma Matters of statecraft have to be them in no uncertain terms, and they City bomb, I write to urge you to re- based on the intellect and not giving to do listen to this; this thought process consider the habeas corpus package in the emotions of the moment, and that goes on in their mind. They will know the bills you are being called into con- is what is important here. that no longer will they be able to, ference on. So let me say another comment I within our borders or come into our ‘‘It utterly galls us as a family so de- would like to make is that with regard country, and kill our citizens, and devoted to my daughter that we and our to the acts of terrorists, especially stroy our government institutions and loss should be used as a political foot- international terror, the world and the know that they will be able to spend ball for politicians eager to posture dynamics of the world in which we live the next 25 years laughing at us, themselves as tough on crime in order in have drastically changed. These thumbing their nose at the families of to reap some political advantage and to international organizations have victims, because they will know be- do the bidding of already powerful changed the lethality and increased the cause of the work of the gentleman agencies who have demonstrated their lethality of their actions. They used to from Illinois and our colleagues on inability to responsibly exercise enor- rely upon their carjackings, and now both sides, 91 strong in the Senate, has mous powers that they already possess. what they have done are these bomb- stood up this day and said no more, The habeas reform provisions in par- ings that are in public places, that are never again, enough is enough. ticular are not known or understood by cowardly acts of terror that actually That is the importance of this legis- the families who have used them to lation, and there is no clearer link, no move the emotions of people because lobby on behalf of the bill. One family their actions are so outrageous. stronger link, Mr. Speaker, between ef- member even told me recently that she fective antiterrorism legislation and So what we must do in order to com- understood habeas corpus to be an bat those outrageous forms of terror is, deterring criminal acts of violence in antiterrorism investigation tool. Sin- this country than habeas and death in fact, give law enforcement the nec- cerely, Mr. Bud Welch.’’ essary tools. penalty reform. The American people Now I ask the gentleman from Illi- Now, what is so difficult here is, in a are demanding it. Future generations nois [Mr. HYDE], yes or no, is not it free society, how we balance the pro- who will have to face the constant true that only 1 percent of the habeas tection of individual civil liberties problem of terrorism demand it. They cases involve the death penalty. know that it will work. They know we The answer the gentleman knows and with that of promoting public safety, must have it. I know. and in this bill I believe that, in fact, That is why, Mr. Speaker, this legis- Mr. HYDE. Mr. Speaker, will the gen- has been achieved. It is not as strong lation, with the important civil lib- tleman yield? as what some would like, perhaps the erties guarantees enshrined in it, is so Mr. CONYERS. I yield to the gen- gentleman from New York [Mr. SCHU- very important, and that is why I am tleman from Illinois. MER], for example, but the bill is that proud to stand here today as a Rep- Mr. HYDE. I do not know. balance that I just discussed. resentative of the American people, Mr. CONYERS. The gentleman does The bill also addresses, though,the shoulder to shoulder with Mr. HYDE, not know. Ah, the chairman is not need to insure the United States does with Senator HATCH in the other body, sure, or he is not even not sure. He just not become the haven for international and say, yes, we have heard the cries of does not know. terrorists. Well, this legislation, mem- the American people, we have heard Mr. HYDE. That is right. bers of terrorist organizations can be the needs of law enforcement, the Na- Mr. CONYERS. I will help the gen- denied entry into the United States; tional District Attorneys Association, tleman along the way. that is extremely important. An alien attorneys general all across this coun- Now I will go to a quote of the gen- terrorist discovered in the United try, police chiefs, and sheriffs all tleman’s, and I am not picking on the States can be deported expeditiously. across this country that say, contrary gentleman. He is just my chairman on Our silent proceedings will not be per- to what the gentleman from New York the wrong side of an important bill. verted to let international terrorists April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3609 slip into our country, as happened with country conceived in liberty long en- from Illinois, in explaining why an the mastermind of the World Trade dure? The ones that do not endure, Mr. amendment passed to weaken this bill, Center bombing. Known terrorists or- Speaker, are the ones who concoct se- suggested that this was a person who ganizations cannot take advantage of cret courts and deny their citizens the was representative of a broader spec- the generosity of American citizens to right to confront their accusers, and trum. bankroll their heinous activities. deny their citizens the right to contest Here is what they did. Here is what This bill includes mandatory victim unjust imprisonments, even in the face remains. As a result of the changes restitution in Federal cases. of compelling evidence of innocence. that were made when the bill left com- Finally, the victims of crimes are That is what this bill does. We ought to mittee and came here, if there is an at- going to be seen not by Federal courts be ashamed of ourselves today for the tack of a terrorist nature involving a as deserving of compensation. Not only American people. major explosion anywhere in the world, will the criminal have to pay a debt to Mr. CONYERS. Mr. Speaker, I am de- and the U.S. military has the expertise society, the criminal will also have to lighted to yield 3 minutes to the distin- to help analyze the cause, not arrest make amends to the victim. guished gentleman from Massachusetts anybody, not prosecute anybody, not Finally, the essence described as that [Mr. FRANK], the second-ranking mem- pursue anybody, but if we need the ex- crown jewel of this bill is the reform of ber of the Committee on the Judiciary. pertise of the U.S. military in analyz- habeas corpus for an effective death Mr. FRANK of Massachusetts. Mr. ing the cause of a terrorist explosion, penalty. The bill sets time limits on Speaker, I thank the ranking minority that expertise can be tendered to any the application and considerations of member for yielding time to me. government in the world except one. habeas writs; I think that is extremely Mr. Speaker, I am going to vote What is the one government in the important. No longer will petition against this bill. I voted for it in com- world that is considered ineligible to after petition be filed with the courts, mittee. I believe we ought to be benefit from the law enforcement ex- delaying endlessly the carrying out of strengthening our defenses against ter- pertise of the U.S. military? The Amer- sentences handed down by judges or ju- rorism. But I do not believe we ought ican Government. The American Gov- ries. to be doing it in a fashion that mis- ernment, as a result of the appease- We have a paradox in our society leads people. ment of the right wing of the Repub- whereby someone serves on death row This bill, unfortunately, is exces- lican Party, they are in control, and for life. If, in fact, we are going to have sively harsh where it ought not to be, the U.S. Attorney General cannot get a strong deterrence, retribution so that and much too weak where we need that expertise. the victim can actually feel as though toughness. Essentially what has sur- Similarly, the FBI and other Federal they have been vindicated, we need an vived in the assault of the Hamas wing law enforcement agencies get no sig- effective death penalty. This bill will of the Republican Party on this bill is nificant expanded powers for detection. give it for America. Mr. CONYERS. Mr. Speaker, I yield 3 virtually all of the added tools for law We retard, here, the ability to use minutes to the gentleman from North enforcement within the United States taggants. It is not as bad as it was, but by which they could detect and prevent it is still substantially weakened. As a Carolina [Mr. WATT], one of the hardest working members of the Committee on this kind of activity, those have gone result of the need to pacify the right the Judiciary. out. We are very tough on foreigners. wing of the Republican Party, this bill Mr. WATT of North Carolina. Mr. Once we catch you, we are going to be has been substantially weakened where Speaker and my colleagues, I hate ter- even tougher than we used to be. it ought to be tougher, and law en- rorists. They are the scum of the By the way, as to habeas corpus and forcement simply does not have the au- Earth. There is nothing lower than a the threat to our safety that is pre- thority it ought to have to be able to terrorist. They are worse even then sented, remember, by definition, you protect us. people who shoot folks in the back. are not eligible for habeas corpus un- Mr. CONYERS. Mr. Speaker, I am de- And if this bill were limited to terror- less you are locked up. We are not talk- lighted now to yield 2 minutes to the ists, emotionally I would be doing ex- ing, when we talk about habeas corpus, gentlewoman from Idaho [Mrs. actly what my colleagues are proposing about anybody walking around. We are CHENOWETH]. to do here. But this bill is not limited talking about people who are locked up Mrs. CHENOWETH. Mr. Speaker, I to terrorists; it goes well beyond ter- and who are a danger, presumably, to thank the gentleman for yielding time rorists to common ordinary citizens. other prisoners, but certainly not to to me. I read recently with horror a story of general society. But here is what was Mr. Speaker, it is with a fair degree parents who, because their child got in- knocked out of this bill by the Hamas of hesitation that I rise in opposition volved in something they did not like, wing of the Republican Party, and to this bill, not that I am not fully they locked the child in the room for their price apparently for letting the committed in my opposition to this days at a time. And I got outraged by bill come back was to keep this out. bill, but because of my deep and abid- it. I think a number of us read that Mr. HYDE. Point of order, Mr. ing respect for the chairman, the gen- story and got outraged. This goes be- Speaker. tleman from Illinois [Mr. HYDE]. yond that because what we are doing is The SPEAKER pro tempore (Mr. However, Mr. Speaker, this bill I feel locking other children, who had noth- LINDER). The gentleman will state his does not just affect habeas corpus pro- ing to do with what we are here to talk point of order. cedures for death row inmates, but it about, in our constitutional closet with Mr. HYDE. Mr. Speaker, the gen- actually affects all of our rights to pro- unconstitutional means today, and we tleman talked about the Hamas wing of tections under the Constitution, that are doing it in the name of combating the Republican Party. I think that is a which habeas corpus has afforded. The terrorism when we know full well that little extravagant. Does the gentleman rights to speak and assemble freely, to there is a significant dislike between want to withdraw that? be ensured of due process of law, and to the two things. Mr. FRANK of Massachusetts. Yes, I be protected against false imprison- Only 100 out of 10,000 habeas corpus do, Mr. Speaker. I would modify that ment belong to all Americans. We can- issues come from death penalty cases. to the wing that expressed they trusted not allow ourselves to be frightened Even less come from terrorist cases. Hamas more than the American Gov- into giving up these freedoms. Yet this bill is not limited either to ernment. As Thomas Payne said in 1795, and death penalty cases or to terrorist Mr. HYDE. It was not a wing, I would true as ever today, he says: ‘‘He that cases. It is depriving every single tell the gentleman. Wing implies more would make his own liberty secure American, every single child, every than one. must guard even his enemy from op- single one of us, of our constitutional Mr. FRANK of Massachusetts. Mr. pression.’’ This, Mr. Speaker, is a line- protections of habeas corpus. Speaker, I would say that the gen- on-line runout by the Congressional tleman was the one who said this on Research Service of all the Federal b 1400 the floor, and he said it in a context antiterrorist criminal laws. I asked for The chairman asked the question that said it was representative of more CRS to run this out. Mr. Speaker, this that Abraham Lincoln asked: Can a than just one person. The gentleman is 17 pages long. We have enough laws H3610 CONGRESSIONAL RECORD — HOUSE April 18, 1996 on the books already. The problem is fighting terrorism, their long-sought objective over the skies of Lockerbie in their quest to ef- that we are not enforcing the laws we ofÐfor all intents and purposesÐabolishing fectively abolish the writ of habeas corpus. We have. This law abridges some of our the ancient writ of habeas corpus. As former know that those charged with terrorism will in- very precious freedoms. Attorneys General Levi, Katzenbach, Richard- variably be tried in Federal court. Extinguish- Right now we have at least 353 Fed- son, and Civiletti have written to us, ``Nothing ing the right to a writ of habeas corpus will eral entities who already have police is more deeply rooted in America's legal tradi- have no bearing whatsoever on these cases. powers to enforce these kinds of laws. tions and conscience.'' The writ of habeas cor- A letter from the father of an Oklahoma City Mr. Speaker, it was Edmond Burke who pus is the guarantor of our constitutional victim was recently shared with me. Mr. Bud said: ‘‘Seldom are men disposed to give rights, the bedrock of our Federal system, Welch states, up their liberties unless under some which has always provided an independent The habeas reform provisions . . . are not pretext of necessity.’’ The Oklahoma Federal court review of the constitutionality of known or understood by the families who City bombing was a tragedy that we State court prosecutions. have been used to lobby on behalf of this never want to see repeated, but this Indeed, the Habeas Corpus Act of 1867 was bill. ... Our family knows that meaningful, bill will not add to our protections the first civil rights law enacted after the Civil independent habeas court review of unconsti- against that kind of horrendous terror- War, intended to flesh out the habeas clause tutional convictions is an essential fail-safe ism. device in our all too human system of jus- of the Constitution and thereby protect the tice. And we have learned that this package Mr. CONYERS. Mr. Speaker, I yield rights of the newly freed slaves by giving Fed- of ‘‘reforms’’ you are being asked to vote for such time as he may consume to the eral judges the power to hear ``all cases where would raise hurdles so high to such essential gentleman from California [Mr. BER- any person may be restrained of his or her lib- review as to effectively ensure injustices of MAN] who refused to sign the con- erty in violation of the Constitution.'' wrongful conviction will go ference report. Until very recently, only once did the Su- unremedied. . . . We consider this a direct (Mr. BERMAN asked and was given preme Court undercut this authority, in the threat to us and our loved ones still living permission to revise and extend his re- tragic case of Leo Frank, a Jewish man who may well find themselves the victim of marks.) wrongly convicted and sentenced to die for the abusive or mistaken law enforcement and prosecutor conduct and unconstitutional Mr. BERMAN. Mr. Speaker, I rise in opposi- rape and murder of a Christian woman in lower court decisions. Two wrongs have tion to the conference report on the Georgia. As too often happens when a brutal never made a right. antiterrorism bill. Because the issues ad- crime occurs, the cry went up in the commu- There is another provision in the bill to dressed in this legislation have been a major nity to find the perpetratorÐor should I say, a which I strongly object, and several which focus for me throughout the entirety of my ca- perpetratorÐand Leo Frank, a member of a have not been restored to the bill which I sup- reer in Congress, I want to lay out very clearly despised minority, became a second victim in port. the reasons why I will vote against the con- this case. ference report, despite my strong support for Leo Frank was unable to present a defense, The summary or expedited exclusion provi- many of its provisions. because an anti-Semitic mob chased him from sion of the bill applies to all asylum-seekers I emphatically do think the case has been the courtroom. But when he filed a writ of ha- entering the United States with false or no made that Federal law enforcement agencies beas corpus to the Federal courts, the Su- documents, and has nothing whatsoever to do must be granted expanded means to attack preme Court held that even though his trial with our efforts to combat terrorism. The U.N. the scourge of terrorism, both international was dominated by a mob, it would not order High Commissioner for Refugees is ``deeply and domestic. a new trial because the Georgia Supreme concerned,'' as am I, that this provision ``would I believe that our freedoms, as well as those Court had held that the mob-dominated trial almost certainly result in the United States re- enjoyed by the citizens of other democratic did not deprive Frank of due process, and the turning refugees to countries where their lives nations, cannot survive if we do not create State supreme court's review was not cor- or freedom would be threatened.'' new tools to apprehend and punish those who rupted by a mob. Missing from the bill are several provisions engage in domestic and international terror- The standard in the Frank case was over- which the Justice Department views as essen- ism. Our ultimate objective must be, of course, turned by the Supreme Court only a few years tial law enforcement tools if our fight against to prevent such crimes from being committed later, and has been deplored by Americans of terrorism is to be successful, including adding in the first place. conscience in the years since Leo Frank's terrorism-related crimes to the list of crimes I want to acknowledge the fact that certain execution and the subsequent emergence of which can be the basis for seeking a Federal antiterrorism measures which I strongly sup- an eyewitness to the crime who established wiretap order, and authorizing multipoint wire- port but which were ignominiously stripped Leo Frank's innocence, but who had been taps. I deplore the absence of these provi- from the House bill by the Barr amendment afraid to come forward in light of the hysteria sions from the bill. have now been restored in the conference re- that surrounded the crime and the trial. Mr. Speaker, the American Constitution is a port. It bears noting that valiant efforts were Let me point out that according to reliable living document which has thrived for two cen- required to restore these provisions, for which data, since 1978, 40 percent of the habeas turies because in its strength and vibrancy it I salute my colleagues on the conference petitions heard by Federal judges in capital has accommodated the realities of American committee. cases resulted in the reversal of the conviction life. And one of those realities, tragically, is In particular, I strongly support the prohibi- or death sentence because of constitutional terrorismÐnot a mere threat, but a reality. Be- tion on fundraising for terrorist organizations, violations. One can be dismayed by the num- cause I believe that strong new measures are and the expedited removal of alien terrorists, ber of State court trials impaired by constitu- essential to combating terrorism, I support though as to the latter, I prefer the version in tional error, as reflected in this statistic, but many of the provisions of this conference re- the substitute offered earlier by my colleagues heretofore, we could be heartened that life- port. Mr. CONYERS and Mr. NADLER, which more tenured Federal judges, shielded by constitu- But I cannot in good conscience vote for a clearly protected the right to counsel and the tional design from local political pressures, bill which guts the historic means by which ability to confront evidence. could restore constitutional rights. Americans enforce the Bill of Rights. That is I also strongly support the provision in the In this bill, in an action ill-befitting Members why I will vote against the conference report. conference report which deletes impediments of Congress sworn to uphold the Constitution, Mr. CONYERS. Mr. Speaker, I yield 2 in current law to the ability of Federal law en- we are about to obliterate the only effective minutes to the distinguished gen- forcement organizations to initiate investiga- means of vindicating those rights. It is not the tleman from Virginia, Mr. BOBBY tions of suspected material support to terror- bill's accelerated deadlines or limits on second SCOTT. ists, because I believe that the scourge of ter- or successive applications with which I differ. Mr. SCOTT. Mr. Speaker, I thank the rorism requires a careful recalibration from I believe that meritorious objections have been gentleman for yielding time to me. time to time of the balance between civil lib- raised to protracted appeals which deprive Mr. Speaker, we find ourselves on the erties concerns and law enforcement authority. families and communities of closure in heinous anniversary of the Oklahoma bombing But despite my strong support for many pro- criminal cases. But to require deference by the with a bill with the title visions in this bill, I am compelled to vote Federal courts to State court determinations of ‘‘antiterrorism.’’ Mr. Speaker, I rise to against it because of my strenuous objection Federal constitutional law, I cannot coun- oppose the conference report because it to title I, the habeas corpus provisions. tenance. will do little, if anything, to reduce A decision was made by the Republican Shame on those who invoke the names of terrorism, while at the same time it majority to jam into this bill, in the name of innocents slaughtered in Oklahoma City and will, in fact, terrorize our Constitution. April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3611 Mr. Speaker, we have a situation compliment the chairman, the gen- Mr. SCHUMER. Mr. Speaker, I thank where the Secretary of State and At- tleman from Illinois [Mr. HYDE], for the gentleman from Michigan for his torney General can designate terrorist putting this bill together, and I want generous yielding of time, and for his organizations. In effect, politicians can to particularly thank the conference leadership on this issue. designate which organizations are pop- committee for keeping two amend- Mr. Speaker, I rise in support of the ular and which are not popular. The ments that I wrote into the bill back in conference report. In all honesty, I ANC in South Africa could be des- the Committee on the Judiciary. One have to say that we are faced with a ignated as a terrorist organization, and extends victim compensation to vic- glass that is only half full, which support of that organization would be tims of terrorist crimes. We hope there means that it is also half empty. Yes, in violation of the law. Politicians can will not be anymore terrorist crimes, we have made some good, solid im- choose which side in El Salvador we but if they do occur we think the vic- provements in this conference. I want ought to be supporting or not support- tim compensation laws should apply. to congratulate our conference man- ing by designating one or the other as The second amendment that I intro- agers, the chairman, the gentleman terrorist. duced allows the sharing of our from Illinois, Mr. HYDE, and Senator Mr. Speaker, what happens to our antiterrorist technology to detect ex- HATCH, and the chairman of the Sub- rights if we have secret trials where plosives, to set them off safely if they committee on Crime, the gentleman people can be deported, based on evi- are detected, and to detect firearms from Florida, Mr. MCCOLLUM, for the dence presented in private, without the and so forth. We are allowed to share leadership they displayed. Without opportunity to be heard? The so-called that with other countries. We are al- their having stood up to extremists in crown jewel of the bill, the habeas cor- lowed to share that for two reasons: their own party, this glass before us pus provision, Mr. Speaker, we have first of all, to protect Americans who today would be empty, not just half heard of the frivolous appeals. Forty go overseas. Americans could have full. They deserve to be congratulated percent of these appeals are in fact suc- been the victims of terrorism, as I unfor it. cessful. People have been denied a fair derstand a number of Greek citizens But I also must say that this report trial. People are in fact sentenced to were the victims of terrorism in Egypt is still not tough enough. It does not death who are factually innocent. just this week. fully meet America’s needs. The con- These are not frivolous appeals. Those Second of all, the fact of the matter ference report has been whittled down who have bona fide appeals will have is that terrorists have more in common to satisfy the small-minded fears of ex- their rights denied. than they would like to admit to them- tremists, not beefed up to stop terror- Mr. Speaker, we have a system where selves. Regardless of whether they are ism before it starts, and to swiftly the innocent and the guilty are tried terrorists from the extreme left or ter- track down those who commit it. by the same procedure, so those who rorists from the extreme right, they all b 1415 have a hatred of democratic govern- are guilty in fact may have a little Ironically, the managers of this very more time on death row, but those who ments, and they will all attack any democratic government that they have conference agree that we need the are innocent have an opportunity to tough measures that the President, the present that evidence. If this bill is en- the opportunity to attack. Therefore, efforts to stop terrorists in one country Attorney General, and the Director of acted, we will find that those who are ultimately benefit the United States, the FBI asked for. They admitted pub- factually innocent and can present evi- and vice versa. licly that this report leaves out the dence of innocence will in fact be put Mr. Speaker, I want to say that I single most important thing that the to death. think the civil liberties objections, FBI needs to fight terrorism, effective Mr. Speaker, that is not an effective that were raised in part to the bill at surveillance through multipoint wire- death penalty when we put innocent the beginning, I believe have been ade- taps to keep up with the new tech- people to death. Those who could show quately addressed by the chairman and nology of cellular phones. that they are probably innocent will the other members of the conference But the majority still left them out not even get a hearing, under this bill. committee. The objection that still re- just like they left out a long list of I would hope we would defeat this con- mains is the maybe Members who have other good tough ideas. Why? Why, I ference report. already said they think this bill should ask? Because the Republican majority Mr. HYDE. Mr. Speaker, I am pleased be stronger. simply cannot bring itself to stand up to yield 3 minutes to the distinguished I think in certain respects they may to extremism, particularly domestic gentleman from New Mexico [Mr. be right. There are certain areas where, extremism that it has bred and pam- SCHIFF], and ask that he yield to me in upon further inspection, law enforce- pered from some within its own ranks, return. ment may deserve further authority. and to do the right thing for America. Mr. SCHIFF. Mr. Speaker, I yield to But that is not a reason to vote against Mr. Speaker, in America there have the gentleman from Illinois. this bill. This bill gives law enforce- always been paranoid extremists, but Mr. HYDE. Mr. Speaker, there is so ment a number of tools that law en- the fact that their arms are so long much said here that is not so. There forcement has requested to fight ter- that they had enough reach to influ- are no secret hearings. Nobody gets de- rorism. This is a good bill. This is a bill ence this body and strike out provision ported. Even an alien terrorist does not that should pass. It does not have to be after provision that law enforcement get deported unless the evidence that our last word on the issue. considers essential in the war against convicts him is introduced in trial; in Mr. CONYERS. Mr. Speaker, I yield terrorism is profoundly troubling. open trial, no secret trials, no secret 15 seconds to the gentleman from I have sat face to face with the vic- hearings. North Carolina [Mr. WATT]. tims of terrorism and the families of In addition, talking about shredding Mr. WATT of North Carolina. Mr. the victims of terrorism, from Pan Am the Constitution, the National Associa- Speaker, I just need 10 seconds for the 103 through the World Trade Center tion of Attorneys General has sent us a truth. bombing to the atrocity in Oklahoma letter signed by 34 attorneys general of The gentleman from Illinois [Mr. City. I have met them all. When I com- 34 States supporting habeas in the bill. HYDE], I am sure will admit that there pare that pain and that danger to the The National Association of District is a provision in this bill that allows exaggerated rhetoric I hear from ex- Attorneys has a unanimous resolution. the consideration of secret evidence tremists about this bill, I fear for So the talk about shredding the Con- that the defendant will never even America and I fear for the lives of ordi- stitution is just far of the mark. know about and can never refute. That nary Americans. Mr. SCHIFF. Mr. Speaker, first, I is absolutely counter to everything I wonder can it really be that a Mem- thank the gentleman for yielding time that our country stands for. ber of this body said during our last de- to me. Mr. CONYERS. Mr. Speaker, I yield 4 bate that he trusts the bloody terror- Mr. Speaker, I want to say, first, I minutes to the gentleman from New ists of Hamas more than he trusts his rise in support of the conference re- York [Mr. SCHUMER], the former chair- own democratic Government? Can that port. I hope it will pass the House by man of the Subcommittee on Crime in really be, I ask myself? Can anyone be an overwhelming margin. I want to the Committee on the Judiciary. that foolish? H3612 CONGRESSIONAL RECORD — HOUSE April 18, 1996 Mr. HYDE. Mr. Speaker, will the gen- this bill contains three of the seven mean that after all this fight, finally tleman yield on that point? crime bills that were in the Contract we will end the seemingly endless ap- Mr. SCHUMER. I do not have much With America, the most significant of peals of death row inmates and carry time. I would like to finish my point. I which has been debated a lot today but out with swiftness and certainty the am sorry. On his time I would like to been voted on many times by this Con- sentence of justice in this country. hear what he has to say about it be- gress. Finally, when the President I thank the gentleman from Illinois cause I respect him so. signs this bill into law after years and for all of his work. But what I was saying was all of us years of struggle, we will have limited Mr. CONYERS. Mr. Speaker, I yield here, we are part of that Government. the appeals that death row inmates can 11⁄2 minutes to the gentlewoman from If any Member really said it, I invite New York [Ms. VELA´ ZQUEZ]. take and we will have assured that sen- ´ him to come to this floor today and ex- tences of death in this country will be Ms. VELAZQUEZ. Mr. Speaker, rush- plain that remark and tell the Amer- carried out expeditiously, as the Amer- ing this bill to the floor just to meet a ican people why it was said and what ican public wants. publicity deadline is irresponsible. was meant by it. Second, we have victim restitution in Once again we are sacrificing our peo- Let me finally say this. Even though this law that will be signed by the ple to play election year politics. I think this report should be tougher, I President, which provides a mandatory Americans and their civil rights are will vote for it. The hour is late. I am requirement on judges to make victims too important to allow this. convinced we cannot delay further. financially whole at the Federal level. The right of habeas corpus is a na- Tomorrow is the anniversary of the We have a criminal alien deportation tional treasure. It is fundamental for terrible, bloody terrorist bombing in provision that eases the ability of the all Americans—black and white; liberal and conservative. This conference re- Oklahoma City that took the lives of United States, without an additional port severely limits that right—all to 168 men, women, and children. We all hearing, to deport a person who has hope and we pray that such a senseless fuel a national frenzy. completed a prison term who is an My colleagues, the Constitution says and cowardly event will never again alien. we are all entitled to equal protection stain our country. But we cannot de- But on top of that we have a provi- under the law, but in today’s society pend on hope, we cannot wait for per- sion I have worked on for more than 10 some of us are more equal than others. fection. We must act, and I urge that years that, when it is signed into law, The reality is, if you have the money we act today. will mean that when somebody lands at to hire a good lawyer, you can make it Mr. HYDE. Mr. Speaker, I yield 5 New York’s airport or any other air- through our legal system. But, if you minutes to the distinguished gen- port in the country, or a Haitian that are a poor minority, lacking those re- tleman from Florida [Mr. MCCOLLUM], in Florida, in Fort Lauderdale, on a sources, you will lose and not have the the chairman of the Subcommittee on beach sets foot on the soil, it means opportunity to prove you are innocent. Crime. they will no longer automatically be By severely limiting this ultimate (Mr. MCCOLLUM asked and was able to tie up themselves in our court right to appeal more innocent Ameri- given permission to revise and extend system and stay here. There is an expe- cans will unfairly die. Their blood will his remarks.) dited exclusion process so that when be on your hands. I encourage a ‘‘no’’ Mr. HYDE. Mr. Speaker, will the gen- they claim political asylum, that ‘‘I’m vote on this conference report. tleman yield? fearful I will be politically persecuted Mr. CONYERS. Mr. Speaker, I yield Mr. MCCOLLUM. I yield to the gen- if I’m sent home,’’ whatever, the asy- 21⁄2 minutes to the gentlewoman from tleman from Illinois. lum officers can handle that early California [Ms. WATERS] who only Mr. HYDE. Mr. Speaker, I want to without getting all tied up in a court shortly ago was nominated by the say to my dear friend, and he really is system that often meant and means Democratic Steering and Policy Com- my dear friend, from New York that today that aliens who are here illegally mittee to join the House Judiciary this Hamas situation is terribly unfor- end up disappearing into our society Committee. tunate, it is very painful to me. But I and staying here forever. Ms. WATERS. Mr. Speaker, I would would say to the gentleman, I know This bill is extraordinarily important like to quote the sixth amendment to some Democrats who trusted the San- for all of these reasons and a whole the United States Constitution. It sim- dinistas more than they trusted Ronald host of others. It is positive legislation ply says in all criminal prosecutions Reagan, who attended meetings in that I know some think, very minor the accused shall enjoy the right of a Nicaragua and ordered our embassy thoughts I hope, undermines some lib- speedy and public trial by an impartial people out. There may be some present erties we have. I do not think it does in jury of the State and district wherein here today. So it happens on both sides any way. It balances what is required the crime shall have been committed, and it is regrettable, in my opinion. between the responsibility of the Gov- which district shall have been pre- Mr. MCCOLLUM. Mr. Speaker, I am ernment to protect its citizens against viously ascertained by law, and to be very much concerned about the debate foreign terrorists and to protect its informed of the nature and cause of the over this bill being misunderstood by citizens in the cases where we have hei- accusation, to be confronted with the the public. We have a very fine bill. It nous crimes, and to expedite the carry- witnesses against him, to have compul- is not as good as some of us would like. ing out of penalties when the decisions sory process for obtaining witnesses in That is, there are provisions that some of our court systems have been made to his favor and to have the assistance of of us think should have been in this do so, and the interests of the individ- counsel for his defense. bill. I concur with the gentleman from ual which have always under our Con- That is the sixth amendment to the New York [Mr. SCHUMER] about some of stitution been paramount. Constitution. Mr. Speaker, the tragic them, and the gentleman from Illinois That balance is in the Constitution. bombing is not a reason to repeal the [Mr. HYDE]. But this bill is extremely It is in no way destroyed here. In fact, sixth amendment to the Constitution. good. it is perfected. It is something that we The habeas corpus reform provisions On one hand we deal with terrorism have debated hard and long, and is why in this bill which require Federal specifically by forbidding foreign ter- the conference report and all the work courts to ignore unconstitutional court rorist organizations who are named by that the gentleman from Georgia and convictions and sentences unless the the President from being able to come the gentleman from Illinois and many State court decision, though wrong as to the country and raise money. A pro- others of us have spent hours doing to a constitutional matter, was unreason- vision that I offered that was adopted make sure that we have not encroached ably wrong, innocent persons will be as an amendment to this bill would in any way on personal liberties. held in prison or executed in violation prohibit Americans from being able to This bill, though, will fight foreign of the Constitution. The bill would im- go abroad and get money from a for- terrorism. It will be meaningful to the pose unreasonable short time limits for eign terrorist country that has been victims of Oklahoma City, especially filing a claim for habeas corpus relief, named. in the habeas corpus provisions that, as limit petitioners to only one round of We do all kinds of things relative to I said earlier, after so many years when Federal review, and mandates the peti- terrorism and then, in addition to that, it is signed into law in a few days will tioner meet an unreasonably high clear April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3613 and convincing burden of proof in order part of this bill, and then perhaps we would not allow a deal to be made, and to secure relief. could vote on the terrorist bill with finally we were able to patch a little This business of the conviction or full meaning. bit together. sentence may be a little bit unconsti- Mr. HYDE. Mr. Speaker, I am pleased We are dealing with a bill now that tutional, if so, that is OK, as opposed to yield 21⁄2 minutes to the distin- started off with no habeas corpus, we to unreasonably wrong or unconstitu- guished gentleman from Oklahoma do not need it. But then, because there tional, is outrageous. Mr. Speaker, [Mr. LUCAS], in whose district the Fed- was nothing in the bill, we needed it. that is like saying one can be a little eral building rests that was bombed. So what do we have here? What we bit pregnant. You are either pregnant Mr. LUCAS of Oklahoma. Mr. Speak- have is a bill that is missing, missing. or you are not. The sentence or convic- er, I rise in support of the conference Wiretaps for terrorist offenses, not in tion either meet the constitutional report to S. 735, the Terrorism Preven- the antiterrorist conference report be- muster or they do not. tion Act. fore this House. The current law allows We cannot and must not shred and A year has passed since downtown for wiretaps for everything from fraud, defy our Constitution little by little, Oklahoma City was ravaged by the embezzlement, destroying cars, numer- bit by bit. We American public policy- worst domestic terrorist attack our ous felonies, but the bill rejects on careful consideration the proposal that makers are better than that. We love country has ever endured. Yes my we be able to wiretap for crimes of ter- and respect the Constitution more than friends, a year has passed since we as a rorism and crimes where weapons of that. We cannot in the name of expedi- nation watched in horror the images of the pain and suffering that this hei- mass destruction are used. ent politics disrespect the world’s Are you serious that this is an nous act brought. The name Alfred P. greatest document, the Constitution of antiterrorist bill? the United States. Murrah will be etched in our minds for So while a Federal agent can get a Terrorism is wrong. My sympathy is many years to come, and most as- wiretap if he believes a car is to be de- with the victims, but we must main- suredly April 19 will never be the same. stroyed, he may not be able to get a tain our integrity and support the Con- As you vote today and reflect on the wiretap if he believes an act of terror stitution of the United Sates. I ask for events of tomorrow, I implore you to or mass destruction or murder is going a ‘‘no’’ vote on this measure. remember those who perished and have to take out a building or someone is Mr. CONYERS. Mr. Speaker, I yield 2 long since been laid to rest. Our citi- planning to gas the New York subway. minutes to the distinguished gen- zen’s scars are deep and open wounds How silly and how unserious. tleman from Hawaii [Mr. ABERCROM- still abound. Oklahoma City is an inno- Similarly, while current law allows BIE]. cent slowly rebuilding itself back to for emergency exceptions to the re- Mr. ABERCROMBIE. Mr. Speaker, I the greatness it strives to attain. Al- quirement of a court order for a wire- ask that this bill be defeated, and I am though we cannot turn back the clock tap in instances where the agent learns sorry to say that I have to disagree and prevent this horrendous act from a criminal act is imminent, this bill re- with my friend from Illinois, Mr. HYDE, occurring, we must pass this fuses to extend that constitutionally on this. I speak to him personally now antiterrorism conference report. permissible emergency circumstance and request this, a reconsideration This bill will bring an end to the exception to terrorism cases. with respect to habeas corpus. abuse of our Nation’s appeals process. So, there you have it. Taggants? Oh, This past weekend I saw a student It will ensure this country has an effec- well, we put it back in, but we exempt- production, in an attic in a home in tive and enforceable death penalty. It ed black and smokeless powder. I won- Honolulu, of ‘‘Death and the Maiden,’’ means justice will be served, and that der why? Well, it does not take a sci- Ariel Dorfman’s play about Chile. The the guilty will receive their punish- entist to figure that one out. So I guess you guys have proved your principal theme was when habeas cor- ment in a swift manner. point. I mean, you are going to show pus is absent, there we have Further, the measure provides for that we got a terrorism bill on an anni- authoritarianism and dictatorship. It closed-circuit broadcasting of court versary and that, further, we put the leads to torture. proceedings in cases where a trial has President of the United States in a tre- In Dorfman’s essay on political code been moved out of State, more than 350 mendously embarrassing position and literary code, and I am quoting miles from the location in which the proceedings would have taken place. where he has to swallow a compromise from it: of habeas corpus. Terror then has a public character. As such This provision is timely in light of the upcoming bombing trial. I believe Mr. Speaker, reject this bill and let it leads to a great ideological operation us in Committee on the Judiciary go which authorizes, in the name of Western all Americans who must endure such a tragedy, like the people of Oklahoma, back and do it right. Christian values, a purifying crusade against Mr. HYDE. Mr. Speaker, I yield my- the forces of the devil and of the anti-Nation. deserve the opportunity to view the self the balance of my time. He goes on to say: trial in their State. This measure pro- The SPEAKER pro tempore. The gen- The principal obsession of authoritarian vides the best way to ensure that those tleman from Illinois is recognized for 2 politics is to suppress history and those who most severely impacted by this tragedy minutes. could modify it, postulating an unchangeable will have access to the court proceed- (Mr. HYDE asked and was given per- and superior reality, God, father, and family, ings of those accused in this case. mission to revise and extend his re- to which one owes loyalty. I would like to thank Chairman HYDE marks.) This is the difficulty. If we abandon and his staff for their assistance on Mr. HYDE. Mr. Speaker, I want to habeas corpus, we abandon one of the this measure. You have done a great congratulate the gentleman from New foundation stones of the United States service for Oklahoma City and the en- York [Mr. SCHUMER] for his coopera- of America. tire country. tion. He has been very helpful on this Mr. Speaker, I rise in support of the b 1430 bill, and I did not want to let the time conference report to S. 735. It is truly pass without doing that. You have heard me on this floor ex- the right thing to do. Mr. Speaker, we do not abolish ha- pound before on the right to a trial, the Mr. CONYERS. Mr. Speaker, I yield beas corpus. I keep hearing that. We right to be able to vote freely, the myself the balance of my time. strengthen habeas corpus by forbidding right to sue, and the fourth leg of that The SPEAKER pro tempore (Mr. its abuse. That is what we do. foundation is habeas corpus, the right LINDER). The gentleman from Michigan Now, I am the last one to instruct to be brought before a Federal court to is recognized for 3 minutes. the newest member of the Committee say that your rights have been vio- Mr. CONYERS. Mr. Speaker, this has on the Judiciary from California on the lated. If we take that away, then we been an important debate, and I think Constitution. I am the last one. I am are succumbing to terrorism. We are that it has become clear that this is a not going to instruct her. I am going to terrorizing the Constitution. politically motivated bill, driven first instruct the world that the sixth The time lapses. But the Constitu- by the National Rifle Association and amendment does not apply to deportation goes on. I ask, please, Mr. HYDE, Mr. BARR, and then finally by the 73 tion proceedings. That is a civil mat- reconsideration on the habeas corpus galloping freshmen Republicans who ter, not a criminal matter. I just H3614 CONGRESSIONAL RECORD — HOUSE April 18, 1996 thought I would throw that in the hop- especially those lacking financial resources, tions as terrorist organizations. While this des- per. may not be able to meet. It limits their right in ignation is subject to congressional and judi- There are no secret trials. There is almost all cases to only one round of Federal cial review, it still would result in a chilling ef- classified information which will re- review, and severely limits the power that Fed- fect on the rights of freedom of assembly and main classified, but a fair summary of eral courts have to correct unconstitutional in- freedom of association that Americans enjoy that is given to the alien and that has carceration. It cuts off most opportunities for today, because this bill may encourage false to be adequate to prepare a defense. If incarcerated citizens to appeal to higher courts accusations against certain groups. it is not, the proceedings are over. for relief. Additionally, the bill modifies the current ap- Now, groups supporting this legisla- The habeas corpus provisions in this bill are plication of the habeas corpus doctrine by re- tion are Citizens for Law and Order; reason enough to oppose it. They are certainly quiring Federal courts to ignore unconstitu- the National Troopers Coalition, 45,000 not the only thing wrong with this bill. I would tional court convictions and sentences by members; the Christian Coalition; the also like to note for the record my concern State courts unless the State court decision Anti-Defamation League; the Leon and about the bill's changes to asylum law which was unreasonably wrong. Four former U.S. At- Marilyn Klinghoffer Foundation; Fami- severely threaten our country's rich history of torneys General, both Republicans and Demo- lies of Pan Am 103 Lockerbie; Survi- providing refuge for people fleeing persecution crats, have argued that this provision is un- vors of the Oklahoma City Bombing; in their homelands. The bill eliminates the sus- constitutional. Federal courts would lose the International Association of Chiefs of pension of deportation for anyone who enters power to correct unconstitutional incarceration. Police; National Association of Police this country without inspection. It also estab- If this bill becomes law, it could result in inno- Organizations; the Law Enforcement lishes summary removal at ports of entry if cent persons being held in prison in violation Alliance of America; National Sheriffs’ people lack valid documents. Valid documents of the Constitution andÐeven executedÐbe- Association; National Rifle Associa- are often difficult to find or to protect in war- cause the bill imposes unreasonably short tion; International Association of Fire torn countries. time limits for filing a claim of habeas corpus Chiefs; the Governor of the State of As some of my colleagues know, I have relief. All of us can cite instances in which in- Oklahoma, a Republican; the attorney been particularly concerned over the years nocent persons were released as a result of a general of the State of Oklahoma, a about the plight of victims of rape, torture, and comprehensive and fair review of their cases Democrat; the National Association of domestic violence. I am pleased that the Jus- through the habeas corpus process in Federal Attorneys General passed a resolution tice Department has a heightened sensibility courts. that was unanimous; and the National to the particular problems faced by women The petitioner must also file the petition Association of District Attorneys. who have experienced these crimes in their within 1 year after conviction becomes final. It All of these folks love the Constitu- homelands. Rape is being used as a tool of limits almost all petitioners to only one round tion and would not do anything to terror and war in civil conflicts around the of Federal review and requires the petitioner damage it or brutalize it. to meet an extremely high clear and convinc- Mr. Speaker, I urge an ‘‘aye’’ vote. world. In many of these countries, rape victims may be unable to articulate immediately their ing burden of proof in order to secure relief. Ms. PELOSI. Mr. Speaker, tomorrow this What this bill does is provide selective due fear of persecution, especially to a stranger country will pause in sorrowful remembrance process and selective civil liberties. It allows who is usually a man. As a result of the provi- as we observe the 1-year anniversary of the the Government to arbitrarily designate those sions in this bill, these women, lacking docu- tragic bombing of the Murrah Federal Building who are terrorists, and infringes the fun- mentation, will be summarily returned to their in Oklahoma City. This incident shook the fab- damental privacy rights of all Americans. We homelands. ric of our Nation and illustrated the threat must punish to the fullest extent of the law Mr. Speaker, I understand the need to fight posed to us all by terrorism. Oklahoma City is those who commit terrorist acts against our terrorism and I can support anti-terrorism leg- the driving force behind the renewed push for Nation, and innocent citizens. However, I islation which does so while preserving our anti-terrorism legislation. I believe we need an equally believe that we must carefully consider precious constitutional rights. This conference anti-terrorism bill. I do not believe that the con- the bill before us and firmly support the con- report does not meet that test and I urge my ference report before us today is the anti-ter- stitutional rights of all Americans. rorism bill we need. colleagues to oppose it. This bill is not as strong on measures that Ms. JACKSON-LEE of Texas. Mr. Speaker, We, as Members of Congress, have a par- would prevent terrorism but it is filled with spe- ticular responsibility to be the guardians of the I applaud the members of the House Judiciary cial loopholes that will not effectively help law Constitution and the Bill of Rights. That re- Committee and other Members of the House enforcement officials in their fight against ter- sponsibility is not always easy and it is not al- who have worked diligently to get an rorism. ways popular. It is, however, always nec- antiterrorism bill passed in this Congress. As I urge my colleagues to carefully review this essary. I oppose this anti-terrorism bill be- we commemorate the 1 year anniversary of bill and its potential impact on the real issue cause I believe some provisions in it violate those 168 Americans who lost their lives in the to fight against terrorism and how it would the Constitution. If we pass it, we are ignoring bombing of the Federal building in Oklahoma strike a balance in preserving the rights of our our duty to guard the basic principles upon City, it is fitting and proper that we consider citizens. which our great Nation is founded. this bill. Mrs. SMITH of Washington. Mr. Speaker, I oppose a number of provisions in this bill This bill, however, is really a weak today, I was inadvertently recorded as a ``yes'' but will focus my remarks on my concerns antiterrorism bill. It does not give law enforce- vote in favor of final passage of the House- about the habeas corpus reforms contained in ment officials all of the tools that they need to Senate conference report for S. 735, the Ter- it. To many people, habeas corpus sounds like combat antiterrorism. For example, they will rorism Prevention Act. After voting, I did not an obscure legal phrase with minimal rel- not have the emergency wiretapping authority check to see how the machine had recorded evance to their lives. This misunderstanding and the ability to engage in multipoint wire- my vote. My vote should have been a ``no'' could not be further from the truth. Habeas taps. Moreover, the bill's provisions relating to vote for reasons that I will enumerate below. corpus is the mechanism by which a citizen in a cop-killer bullet study have been severely Presently, there are more than 270 Federal this Nation who is deprived of liberty can peti- watered down. The study would only focus on laws that address domestic incidents of terror- tion an independent court to test the legality of reviewing the quality of police armor instead of ism including penalties for specific types of his or her detention. Habeas corpus safe- concentrating on the types of bullets used to murder, kidnapping, and assault committed guards our individual liberty and the bill before kill police officers. with political intent. I am not convinced that us today restricts habeas corpus appeals. It is important to point out that the perpetra- adding additional laws will do anything to pre- The habeas corpus provisions in this bill are tors of the World Trade Center bombing were vent another Oklahoma City tragedy from oc- dangerous to ordinary citizens. They increase successfully prosecuted under existing law. curring. the risk that innocent persons could be held in While the intent of this bill was good, it fo- The expansion of Federal law enforcement prison in violation of the constitution, or even cuses on many matters unrelated to prevent- agencies via an additional authorization of $1 executed. For the first time, a use it or lose it ing international terrorism. billion is fiscally imprudent and only gives a approach is being applied to a basic constitu- I have some further concerns about the im- rubber stamp to agencies like the Bureau of tional right. Constitutional rights are not time- pact of this bill on the fundamental rights of all Alcohol, Tobacco, and Firearms [BATF] that bound, they are timeless or they are worth- Americans. It dramatically expands the powers have come under close scrutiny in recent less. of the Federal Government by granting author- years. The bill before us mandates strict habeas ity to the Secretary of State and Secretary of While the multiple wire tapping provisions corpus filing deadlines that ordinary citizens, the Treasury to designate certain organiza- are not in this legislation, provisions are in April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3615 place for intercepting wireless data through e- postal substation in my congressional district I note today the strong, bipartisan support mail and document transmission when done and summarily killed two postal employees for the bill which is before us, and take note by a wireless modem or through a laptop con- and two customers. I offered the Martini of the overwhelming vote in favor of the bill in nected to a cellular phone. Specifically, the amendment because I wanted to ensure that the U.S. Senate. This has been a process of Electronic Communications Privacy Act criminal acts like the Montclair postal shooting careful consideration, not a rush to react, and [ECPA] provided these protections which have would be covered by the death penalty. as we near the 1 year anniversary of the Okla- now been eliminated in section 731 of the Postal workers Stanley Scott Walensky and homa City bombing, I believe we have before conference report. With the phenomenal Ernest Spruill and Montclair residents Robert a vehicle to move ahead with an appropriate growth of communication via the Internet and Leslie and George Lomoga had their lives cut law enforcement response which does not in- on-line services, I am concerned about the short in a senseless crime. We cannot bring fringe on rights we hold dear as citizens of a violation of privacy rights of law abiding Ameri- these victims back, but we can send a strong, free nation. cans. clear message to criminals like Christopher Mr. KENNEDY of Rhode Island. Mr. Speak- Finally, it is important to keep in mind that Green that their actions will not go er, I rise in opposition to this bill. I do so with there is a very valid argument negating the unpunished. deep regret because I would have hoped that need for any counterterrorism legislation or at The Martini language, formally known as the this Congress could do something meaningful least in its present scope and scale. We live Death Penalty Clarification Act of 1995 (H.R. to respond to the dangerous threat of terror- in a very free society that places a high pre- 1811), would expand the Federal death pen- ism. Americans need to be safe here and mium on civil liberties. alty statute to include situations in which a de- abroad, and if we are to fight this new threat Mr. Speaker, thank you for the opportunity fendant, ``* * * intentionally kills or attempts to our security, we need new tools in the bat- to clarify the record on this legislation. to kill more than one person in a single crimi- tle. But when it comes to the fight against ter- Mr. MARTINI. Mr. Speaker, I rise today in nal episode.'' This provision sends a clear rorism, this bill does too little. Sadly this legis- support of the conference report to S. 735, the message to the criminal that execution style lation does not confine itself to the fight Terrorism Prevention Act, and to honor the multiple killings will not go unpunished be- against terrorism, and it is here where the bill victims and salute the survivors of the Okla- cause of a loophole in Federal law. It will en- goes too far. homa City bombing. Those 168 innocent peo- sure that just and fair punishment is adminis- Sacrificing our Constitution and the integrity ple who died in the most heinous act of terror- tered to individuals who fail to live by society's of our judicial system is too high a price to pay ism committed on American soil; 19 children rules. for an antiterrorism bill that, sadly, does not do and 149 adults perished. The destruction does My heart goes out to the survivors of the enough. The right of every American to a fair not end with these haunting figures. Hundreds Oklahoma City bombing, and I wish them hearing in court will be severely undermined of lives have been altered and the mindset of good health and happiness in their futures. by this legislation. No punishment should be the entire Nation has changed because of one We, as a nation, must continue to help each dispensed in a manner that violates an individ- irrevocable act. The entire country has been other in the healing process. ual's right to a fair hearing. This bill jeopard- suffering together for 1 year. Mr. POSHARD. Mr. Speaker, I rise in sup- izes that right, not just for those on death row, The events of April 19, 1995, are ingrained port of the conference report on S. 735, the but also for those who face other punish- in all of our minds, hearts, and souls. We no Anti-Terrorism and Effective Death Penalty ments. longer look at our lives through the prism of Act. This bill increases the risk that innocent per- safety and rationality, rather we have been As the people in the 19th Congressional sons would be held in prison in violation of the forced to confront the evils that lurk in the dark District know, I voted against the House ver- ConstitutionÐand possibly even executedÐ and manifest themselves in the light. It was at sion of the antiterrorism bill. I was concerned because the bill imposes unreasonably short 9:02 a.m., in the full light of a spring day that that it was overly broad in scope and en- time limits for filing a claim of habeas corpus our perceptions of civility were shattered. croached on individual rights of law-abiding relief, limits almost all petitioners to only one The rise of extremism and militant fun- citizens. round of Federal review, and requires petition- damentalism within our borders is horrifying As the conference committee worked to ers to meet clear and convincing burden of and sickening. We must not surrender to ter- merge the House and Senate versions of the proof standard in order to get relief. rorism, we must conquer it. We cannot allow bill, I noticed a number of important changes the seeds of destruction to be sewn in our which led me to the conclusion that I could This is not right and I will not support such country. We must send the message loud and support this bill, and hopefully provide a a move. clear that the United States will act decisively meaningful response to the threat of terrorism. The bill leaves out provisions which would against those who attempt to undermine civil- The final bill allows the State Department to have: added terrorism crimes to the list of ity. While the antiterrorism bill is not a pana- designate foreign groups as terrorist organiza- those for which wiretaps can be approved, in- cea, it is a step in the right direction. tions, bars members and representatives of cluded terrorism crimes under RICO statutes, The Federal building in Oklahoma City no groups designated as terrorists from entering and have permitted our law enforcement longer stands, but the U.S. Constitution and the United States, and prohibits such groups agencies to draw upon the expertise to ad- the laws that govern our great Nation are our from engaging in fundraising in this country. It dress the threat of chemical or biological iron shield. We must strengthen the death prohibits U.S. aid to countries providing assist- weapons of mass destruction. penalty for terrorist crimes which result in the ance or military equipment to terrorist nations, When we need to give law enforcement offi- death of an American citizen abroad or at unless the President waives those provisions. cials new powers to investigate these new home, we must improve current law to facili- It includes provisions taken from the House bill threats, we fail to produce. tate Government deportation of criminal aliens, which will allow deportation of immigrants who As well, this bill caves in to the demands of and we must allow U.S. citizens to bring suit are or may be engaged in terrorist activity, the gun lobby when it comes to confronting against a sponsoring terrorist nation in Federal and allows the Government to use classified the threat posed by cop killer bullets. I have court. The Terrorism Prevention Act accom- information to deport terrorists. joined many of my colleagues in calling for a plishes these necessary goals. Importantly, the conference report did not in- ban on these bullets which have only one pur- The site of the Federal building in Oklahoma crease investigative powers such as extended poseÐpiercing body armor. We could not City is now an empty, fenced-in field but the wiretap authority for Federal law enforcement achieve this victory this year, but hoped that a memory of what occurred on that soil on April officials. We all have a mutual interest in mak- study of this ammunition would alert the public 19, 1995, will live on forever. On this day, let ing sure that our law enforcement agencies to the need for action. But now even this study us remember those innocent men, women, and the men and women who put their lives has been disarmed. Rather than study the bul- and children whose lives were ripped out from on the line in performance of their duties are lets that can pierce armor and kill law enforce- underneath them. We cannot bring these inno- adequately trained and equipped. But our ment officers, this bill dances around the sub- cents back, but we can work to assure that rights as individual citizens must not be com- ject to the tune called by the NRA. the perpetrators of violent terrorist acts will promised, and I opposed efforts to expand We face a serious threat from terrorism. We themselves be judged. certain powers which I saw as too invasive. need to respond in a meaningful and com- Mr. Speaker, I am also pleased that the That is why I supported the Barr amendment prehensive way. Unfortunately this bill is not conference committee included the Martini during House deliberation, and why I am able up to the task at hand. It makes too many amendment death penalty language in this to support the final version before us today. compromises on the fundamental issues and legislation. On March 21, 1995, in the early The final version is also stronger on issues of threatens the rights of all Americans to a fair evening a man walked into the Montclair, NJ, compensating victims of terrorist attacks. hearing in our judicial system. H3616 CONGRESSIONAL RECORD — HOUSE April 18, 1996 This is not the way to fight terrorism and credible fear of persecution are not as clear as despite some defects which, quite frankly, that is why I will vote against the measure be- they might be. could easily have been fixed without com- fore us. In particular, the definition of asylum officer promising the fight against terrorism, it will Mrs. KENNELLY. Mr. Speaker, I rise in sup- requires professional training in asylum law, give law enforcement important and overdue port of this antiterrorism legislation. country conditions, and interviewing tech- tools in the fight against international terror- Those conversant with our Constitution niques, but does not state how much training ism. know that, in almost its first words, it speaks or what kind. I am informed that assurances Thankfully, the conferees put back many im- of the duty to ``insure domestic tranquility.'' have been given from the staff members who portant anti-terrorist provisions that were That is a difficult taskÐespecially in a country worked on drafting the conference report that stripped out by a majority under the sway of that values freedom as highly as our own. Yet there is absolutely no intention that officers the extreme right. I commend the conferees it is a duty we must carry out, because, as our should be put in these positions who are not for their vision and courage. Founders understood, freedom requires tran- genuine asylum officers. Mr. Chairman, the This bill will give law enforcement the ability quility to flourish. INS now has a professionally trained corps of to crack down on fundraising by international This legislation will help us protect our free- asylum officers, who have had substantial terrorist organizations in the United States. No dom and tranquility at a time when violence is training in handling asylum cases. It should be act of terrorism, anywhere in the world, should a fact of daily life. We have seen the scars left clear that when we in Congress speak of asy- have a return address in the United States. by terrorists in countries around the world, and lum officers, we mean these professionally It will allow victims of terrorism to receive now, tragically, in our own. So it is high time trained officersÐpeople who by training and restitution from their victimizers whether the we take these steps to strengthen law en- experience think of themselves as adjudicators terrorists are governments or organizations. forcement and protect Americans. I will sup- rather than as enforcement officersÐnot some It will add new criminal jurisdiction and pen- port this conference report, and I urge my col- other officer who has been given a short alties for terrorist acts so that law enforcement leagues to do the same. course in asylum law and then given this ex- can reach the terrorists wherever they are. Mr. DEUTSCH. Mr. Speaker, as we get traordinary power to send people back to dan- It will give our Government an enhanced ready to vote on the Anti-Terrorism and Effec- gerous places. ability to deport alien terrorists. tive Death Penalty Act, I would like to focus on Mr. Speaker, I think it should also be clear It will enable law enforcement to battle ter- the fundraising provision of this legislation. that our asylum officers will need to be very rorists who use chemical, biological, and nu- Ever since the bombings at the World Trade careful in applying the credible fear standard. clear weapons or who use plastic or other Center and in Oklahoma City, exhaustive ef- In a close case, they must give the benefit of more conventional explosives. forts have been made to curtail fundraising ac- the doubt to the applicant. There are also It provides new resources to those law en- tivities of terrorist organizations here in the some countriesÐsuch as Cuba, China, North forcement agencies charged with fighting ter- United States. It is completely unacceptable Korea, Iran, and IraqÐin which persecution is rorism. that a terrorist organization like Hamas can so pervasive that any credible applicant would At the same time, the conferees have reestablish a fundraising center just down the have a significant chance of success in the paired many of the dangerous and unneces- road from the United States Capitol. asylum process. Asylum applicants should not sary civil rights violations in the bill reported by The fundraising provision in the anti-terror- be returned to these totalitarian regimes with- ism bill serves as a crucial first step at ending the Judiciary Committee, and which the distin- out a full hearing. guished ranking member, the gentleman from extremist fundraising operations here in the I hope that regulations will be promptly California and I sought to correct in our sub- United States. It enables the United States adopted that explicitly provide for these and stitute. I am pleased that the conferees have Government to designate those organizations, other safeguards in the summary exclusion responded to some of our concerns. such as Hamas, that serve solely as agents of process. violence and destruction, and prevents them Mr. ALLARD. Mr. Speaker, I rise in support This bill no longer allows asylum officers from raising money here in America. Addition- of this conference report. summarily to send refugees back into the ally, it prohibits individuals from providing ma- Today I am going to vote in favor of S. 735, hands of their oppressors without review. terial resources to designated terrorist organi- the Terrorism Prevention Act conference re- This bill no longer allows individuals to be zations. port. As I stated throughout debate on the deported without knowing the charges or basis But this is only a first step. During the antiterrorism bill I have had concerns that the of that deportation. They will now be allowed House debate, I drafted an amendment that bill might be used as a vehicle to expand Fed- to select their own attorneys and those attor- would have created an even stronger fundrais- eral power over law-abiding citizens. This was neys will have the ability to consult fully with ing provision. It would have closed several of my reason for opposing the original House bill, their clients about the case. the loopholes that allow nondesignated organi- I was concerned that a House-Senate con- This bill provides clearer standards for des- zations from serving as fundraising conduits ference would add a number of undesirable ignating organizations as terrorist organiza- for the benefit of outlawed terrorist groups. It Senate provisions. A number of bad ideas tions and court review of that designation. would have broadened the scope of individ- were in play, including expansive Federal Unfortunately, this bill still guts the rules uals prohibited from assisting these violent wiretapping authority, included in the Senate governing the writ of habeas corpus in ways and ruthless organizations. I look forward to bill, excessive power for certain Federal law that I am confident the courts will ultimately working with my colleagues in the near future enforcement agencies, and excessive spend- rule are unconstitutional and unenforceable. I to strengthen the current fundraising provision ing. wish we had the votes to strip these provi- and pass legislation that would force violent I have followed the conference closely, and sions from the bill, but I know we do not. extremists to leave the United States and look I am now satisfied that the civil liberties of law- We will prevail in court on habeas, but today elsewhere to find their blood money. abiding citizens are protected, and that Fed- we prevail over terrorists and their cowardly Mr. SMITH of New Jersey. Mr. Speaker, I eral authority is appropriately restricted. The and bloody handiwork whether they are in rise to call attention to section 422 of the con- bill focuses on international terrorist organiza- Cairo or Jerusalem or in Oklahoma City. We ference report on S. 735, which provides for tions, a matter of Federal jurisdiction. also prevail in the protection of many civil lib- the summary exclusion of persons attempting I want to strongly commend the death pen- erties that had been threatened by earlier ver- to enter the United States without proper doc- alty reform measures of this conference sions of this bill. As with any compromise, I umentation. agreement. I have always supported and co- am unhappy with parts of this bill, but I am It is important that we exclude persons who sponsored legislation to limit frivolous, repet- also pleased at the important progress we would abuse our generous immigration laws, itive appeals of convicted murderers on death have made. and it is important that the process of exclu- row. I also strongly support mandatory victim I urge my colleagues to vote ``yes'' on the sion be a speedy one. It is also important, restitution provisions included in this bill. For conference agreement. however, that the process be fairÐand par- far too long we have ignored the rights of vic- Mr. PACKARD. Mr. Speaker, today we will ticularly that it not result in sending genuine tims. take up the most pro-victim bill Congress has refugees back to persecution. This bill helps focus our criminal justice sys- considered in almost a decade. H.R. 2703 es- Section 422 provides that no person shall tem to where it should be, on swift and certain tablishes tough new statutes to allow Federal be summarily excluded if, in the opinion of an punishment for criminals and justice for vic- law enforcement officials to combat and pun- asylum officer at the port of entry, he or she tims. ish acts of domestic and international terror- has a credible fear of persecution. Unfortu- Mr. NADLER. Mr. Speaker, I reluctantly rise ism. This measure combines crime legislation nately, the definitions of asylum officer and of in support of this conference report because from the Contract With America and additional April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3617 provisions designed to bring criminals to jus- Americans should not have to tolerate the Largent Murtha Shaw Latham Myrick Shays tice while getting justice for victims. presence of those who abuse both our immi- LaTourette Nadler Shuster H.R. 2703 makes the death penalty an ef- gration and criminal laws. S. 735 ensures that Laughlin Neal Sisisky fective and certain punishment by ending in- the forgotten AmericansÐthe citizens who Lazio Norwood Skelton Leach Nussle Smith (MI) terminable delays and endless appeals. Fur- obey the law, pay their taxes, and seek to Levin Ortiz Smith (NJ) ther, the victim restitution act ensures that our raise their children in safetyÐwill be protected Lewis (CA) Orton Smith (TX) judicial system pays victims of crime the ut- from the criminals and terrorists who want to Lightfoot Oxley Smith (WA) Lincoln Packard Solomon most attention by implementing compliance prey on them. I urge my colleagues to vote Linder Pallone Spence standards for court ordered payments to crime ``yes'' on the terrorism prevention act. Lipinski Parker Spratt victims as a condition for probation or parole. I yield back the balance of my time. Livingston Paxon Stearns LoBiondo Payne (VA) Stenholm For my district, where illegal immigration's The SPEAKER pro tempore. Without Longley Peterson (FL) Stupak impact is felt more than in any other region, objection, the previous question is or- Lowey Petri Talent the bill includes essential initiatives to improve Lucas Pickett Tauzin dered on the conference report. Luther Pomeroy Taylor (MS) criminal alien deportation. This provision will There was no objection. Maloney Porter Taylor (NC) expedite the immediate removal of aliens con- The SPEAKER pro tempore. The Manton Portman Tejeda victed of Federal offenses after they serve Martini Poshard Thomas question is on the conference report. Mascara Pryce Thornberry their prison terms. In addition, the bill will deny The question was taken; and the Matsui Quillen Thornton asylum procedure for such aliens. Speaker pro tempore announced that McCollum Quinn Thurman Mr. Speaker, my Republican colleagues and McCrery Ramstad Tiahrt the ayes appeared to have it. McDade Reed Torkildsen I are committed to ensuring the safety and Mr. HYDE. Mr. Speaker, I object to McHale Regula Torricelli well being of every American. The Effective McHugh Richardson Traficant the vote on the ground that a quorum Death Penalty and Public Safety Act of 1996 McInnis Riggs Upton is not present and make the point of McIntosh Roberts Vento guarantees Americans the protections they order that a quorum is not present. McKeon Roemer Volkmer want and deserve while providing tough pen- McNulty Rogers Vucanovich The SPEAKER pro tempore. Evi- alties on those who would break our laws. I Meehan Rohrabacher Walker dently a quorum is not present. Menendez Ros-Lehtinen Ward encourage all of my colleagues to support this The Sergeant at Arms will notify ab- Meyers Roth Watts (OK) measure. Mica Roukema Weldon (PA) Mr. SMITH of Texas. Mr. Speaker, I strongly sent Members. Miller (CA) Royce Weller The vote was taken by electronic de- Miller (FL) Salmon White support the terrorism prevention act, and want Mink Sawyer Whitfield to commend our distinguished Judiciary Com- vice, and there were—yeas 293, nays Moakley Saxton Wicker mittee chairman, HENRY HYDE, for his excel- 133, not voting 7, as follows: Molinari Schaefer Wolf [Roll No. 126] Montgomery Schiff Young (AK) lent work on this issue. Moorhead Schumer Young (FL) The escalation of criminal and terrorist activ- YEAS—293 Moran Seastrand Zimmer Morella Sensenbrenner ity in our country is robbing Americans of the Ackerman Coburn Geren freedom to walk their neighborhood streets, Allard Collins (GA) Gibbons NAYS—133 Andrews Combest Gilchrest the right to feel secure in their homes, and the Archer Condit Gillmor Abercrombie Hastings (WA) Pelosi ability to feel confident that their children are Armey Costello Gilman Barcia Hayworth Peterson (MN) safe in their schools. Bachus Cox Gingrich Barrett (WI) Herger Pombo Baesler Cramer Gonzalez Bass Hilleary Radanovich We cannot protect American lives and safe- Baker (CA) Cremeans Goodlatte Becerra Hilliard Rahall ty or preserve national security without pre- Baker (LA) Cunningham Goodling Beilenson Hinchey Rangel venting alien terrorists from entering the coun- Baldacci Danner Gordon Berman Hoekstra Rivers Ballenger Davis Goss Bonilla Hostettler Roybal-Allard try. Alien terrorists are often able to enter the Barr de la Garza Green (TX) Bonior Hutchinson Rush United States despite the fact that their entry Barrett (NE) Deal Greene (UT) Brown (OH) Jackson (IL) Sabo violates our national interests. In several Bartlett DeLauro Greenwood Bryant (TX) Jacobs Sanders Barton DeLay Gunderson Bunn Johnston Sanford cases, the Department of Justice has spent Bateman Deutsch Gutknecht Burr Jones Scarborough many years and hundreds of thousands of dol- Bentsen Diaz-Balart Hall (OH) Campbell Kaptur Schroeder lars to remove terrorist aliens from the United Bereuter Dicks Hall (TX) Chenoweth Kennedy (MA) Scott Bevill Dingell Hamilton Clay Kennedy (RI) Serrano States. Bilbray Dixon Hansen Clayton Kildee Shadegg Terrorist organizations have developed so- Bilirakis Dooley Harman Collins (IL) King Skaggs phisticated international networks that allow Bishop Doolittle Hastert Collins (MI) LaFalce Skeen Bliley Dornan Hastings (FL) Conyers LaHood Slaughter their members great freedom of movement Blute Doyle Hefley Cooley Lewis (GA) Souder and opportunity to strike. The need for special Boehlert Dreier Hefner Coyne Lewis (KY) Stark procedures to adjudicate deportation charges Boehner Dunn Heineman Crane Lofgren Stockman Bono Durbin Hobson Crapo Manzullo Stokes against alien terrorists is evident. Borski Edwards Hoke Cubin Markey Studds An increasing number of crimes are being Boucher Ehlers Holden DeFazio Martinez Stump committed by noncitizens: both legal and ille- Brewster Ehrlich Horn Dellums McCarthy Tate Browder Emerson Houghton Dickey McDermott Torres gal aliens. Over one-quarter of all Federal Brown (CA) Engel Hoyer Doggett McKinney Towns prisoners are noncitizensÐan astounding 42 Brown (FL) English Hunter Duncan Meek Velazquez percent of all Federal prisoners in my home Brownback Ensign Hyde Eshoo Metcalf Visclosky Bryant (TN) Everett Inglis Evans Millender- Walsh State of Texas. Recidivism rates for criminal Bunning Ewing Istook Farr McDonald Wamp aliens are highÐa recent GAO study revealed Burton Fawell Jefferson Fattah Minge Waters that 77 percent of noncitizens convicted of Buyer Fazio Johnson (CT) Fields (LA) Mollohan Watt (NC) Callahan Flanagan Johnson (SD) Filner Myers Waxman felonies are arrested at least one more time. Calvert Foley Johnson, E. B. Flake Nethercutt Weldon (FL) Mr. Speaker, too few criminal aliens are Camp Forbes Johnson, Sam Foglietta Neumann Williams being deported today. The deportation process Canady Fowler Kanjorski Ford Ney Wilson Cardin Fox Kasich Frank (MA) Oberstar Wise can be years in length. S. 735 streamlines the Castle Franks (CT) Kelly Funderburk Obey Woolsey deportation process by eliminating frivolous Chabot Franks (NJ) Kennelly Furse Olver Wynn challenges to deportation orders; expanding Chambliss Frelinghuysen Kim Graham Owens Yates Chapman Frisa Kingston Gutierrez Pastor Zeliff the list of aggravated felonies for which aliens Christensen Frost Kleczka Hancock Payne (NJ) can be deported; and closing the gap between Chrysler Gallegly Klink NOT VOTING—7 the end of an alien's criminal sentence and Clement Ganske Klug Clinger Gejdenson Knollenberg Coleman Jackson-Lee Tanner the date the alien is deported from the United Clyburn Gekas Kolbe Fields (TX) (TX) Thompson States. Coble Gephardt Lantos Hayes Rose H3618 CONGRESSIONAL RECORD — HOUSE April 18, 1996 b 1457 port for H.R. 3019, the fiscal year 1996 So I was just trying to find out how Ms. FURSE, Ms. MCKINNEY, Mr. omnibus appropriations conference re- we could reconcile those two concerns WILSON, and Mr. GRAHAM changed port; H.R. 2715, the Paperwork Elimi- and whether or not the people in this their vote from ‘‘yea’’ to ‘‘nay.’’ nation Act of 1995; and H.R. 1675, the country who are choosing work over Mr. CHAPMAN changed his vote National Wildlife Refuge Improvement welfare and trying to raise a family on from ‘‘nay’’ to ‘‘yea’’. Act of 1995. less than $8,500 a year, can they expect We should finish business and have So the conference report was agreed any type of relief yet? Members on their way home to their to. Mr. ARMEY. Mr. Speaker, I again families by 6 p.m. on Thursday, April The result of the vote was announced will tell the gentleman that I know of 25. I thank the gentleman for yielding as above recorded. no committee of this body that has ju- me this time. A motion to reconsider was laid on risdiction on this subject that is con- Mr. BONIOR. Mr. Speaker, I would sidering any legislation on this subject. the table. inquire of the gentleman from Texas a f Obviously, I would have no basis to an- couple of points, if he would indulge me ticipate any committee reporting legis- b 1500 in a few questions. lation or requesting floor time for con- The gentleman mentioned in his re- LEGISLATIVE PROGRAM sideration of such legislation. marks that after consideration of the Mr. BONIOR. Mr. Speaker, the only (Mr. BONIOR asked and was given suspensions on Tuesday, the House will other comment I have on this subject, permission to address the House for 1 dispose of the President’s veto message I would tell my friend from Texas that minute.) basically on the State Department Au- 70 percent of the bills that have come Mr. BONIOR. Mr. Speaker, I rise to thorization Act. Will we vote on the to this floor this year have not gone inquire of the distinguished majority veto override on Tuesday? through committee. They have come leader of the schedule for the remain- Mr. ARMEY. Mr. Speaker, yes, we right our of the Committee on Rules. der of the week and for next week. will. So we hope and pray that in the near I yield to the gentleman from Texas Mr. BONIOR. So this is not just a future those folks who are working [Mr. ARMEY], majority leader. matter of sending it back to commit- hard and have children and are work- Mr. ARMEY. Mr. Speaker, I thank tee. ing for $8,500 a year will be able to get the gentleman for yielding to me. Mr. ARMEY. No, there will be a re- the break they deserve. Mr. Speaker, before I announce the corded vote. One other question on the budget res- program for next week, I would like to Mr. BONIOR. I thank my colleague olution, Mr. Speaker. Should we be fin- take a moment and inform the body for that. Mr. Speaker, can my friend from ished with the budget resolution this that the distinguished chairman of the Texas, in light of what happened before week as the schedule calls for and the Committee on the Judiciary has just we adjourned here for the Easter Pass- budget calendar for the year? completed work on a very, very impor- over recess, when the Chair was in Mr. ARMEY. Mr. Speaker, I thank tant piece of legislation on the day of error with respect to the motion on the the gentleman for yielding. If the gen- his birthday. I think it would behoove previous question with respect to the tleman will continue to yield, I am told us all to congratulate Chairman HYDE minimum wage, can the gentleman as- by the Committee on the Budget that on his 49th birthday. sure our side that we will have an op- they expect to be prepared to report a Mr. Speaker, if the gentleman will portunity to vote on the issue of the budget to the floor the week following continue to yield, I do appreciate the minimum wage in the near future? next. gentleman’s indulgence with me. Mr. ARMEY. Mr. Speaker, if the gen- Mr. BONIOR. Mr. Speaker, I thank Mr. Speaker, I am happy to announce tleman will continue to yield, I was my friend and colleague. that we have now concluded our legis- just asked by one of my colleagues a f lative business for the week. There will moment ago why is it the minority did be no votes on Monday, April 22. On not raise the minimum wage last year ADJOURNMENT FROM FRIDAY, Tuesday, April 23, the House will meet when they had the majority in the APRIL 19, TO MONDAY, APRIL 22, at 12:30 p.m. for morning hour and 2 House and they had the majority in the 1996 p.m. for legislative business. Senate and they had the White House? Members should be advised, Mr. Mr. ARMEY. Mr. Speaker, I ask Mr. Speaker, I suspect the reason is unanimous consent that when the Speaker, that we do not expect any re- they read page 27 of Time magazine on corded votes before 5 p.m. on Tuesday House adjourns tomorrow, Friday, February 6, 1995, where the President April 19, 1996, it adjourn to meet at 2 next. As our first order of business on was quoted as saying that raising the Tuesday, the House will consider two p.m. on Monday next. minimum wage is, and I quote, ‘‘the The SPEAKER pro tempore (Mr. bills on the Corrections Day Calendar: wrong way to raise the incomes of the PETRI). Is there objection to the re- H.R. 3049, to provide for the continuity low wage workers.’’ Perhaps they did of the Board of Trustees of the Insti- quest of gentleman from Texas? not dispute the President at that time. There was no objection. tute of American Indian and Alaska Mr. Speaker, I will say to the gen- Native Culture and Arts Development; tleman, I know of no consideration f and H.R. 3055, to permit continued par- being given to this subject in any com- HOUR OF MEETING ON TUESDAY, ticipation by historically black grad- mittee of jurisdiction of the House at APRIL 23, 1996 uate professional schools in the Grant this time. Consequently, I would see no Program. basis by which I would anticipate a bill Mr. ARMEY. Mr. Speaker, I ask After the corrections bills, we will being reported out and a request being unanimous consent that when the then take up seven bills under suspen- made to schedule floor time. House adjourns on Monday, April 22, sion of the rules. I will not read the list Mr. BONIOR. Mr. Speaker, I would 1996, it adjourn to meet at 12:30 p.m. on now. I believe the gentleman has a say to my friend from Texas that his Tuesday, April 23, 1996, for morning copy before him, but a list of suspen- comments remind me of the comments hour debates. sions will be distributed to all Mem- that he made originally at the begin- The SPEAKER pro tempore. Is there bers’ offices this afternoon. ning of the session when he said, and I objection to the request of the gen- After consideration of the suspen- believe this is a direct quote, that he tleman from Texas? sions on Tuesday, the House will dis- would fight the minimum wage with There was no objection. pose of the President’s veto message every fiber in his body. And the Speak- f for H.R. 1561, the American Overseas er had said yesterday, at least accord- Interests Act of 1995. ing to the paper reports this morning, DISPENSING WITH CALENDAR On Wednesday, April 24, and Thurs- that the Republicans would not be able WEDNESDAY BUSINESS ON day, April 25, the House will take up to duck, the word ‘‘duck’’ was used in WEDNESDAY NEXT the following items, all of which will many of the accounts in the papers this Mr. ARMEY. Mr. Speaker, I ask be subject to rules: The conference re- morning, this issue any further. unanimous consent that the business April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3619 in order under the Calendar Wednesday ‘‘He was ebullient,’’ Johnson said. ‘‘Clear- God, as the master of its own destiny. One rule be dispensed with on Wednesday ly, he seemed as if he’d seen an angel. He result of this new religious liberty was the next. just said how excited he was for this long or- opening of borders to foreign faiths for the The SPEAKER pro tempore. Is there deal to be finally over and how important it first time since 1917. The Songes arrived among many mission- objection to the request of the gen- was for him to be united with his family and friends. He said he loved his family so much aries who flooded the Russian provinces, tleman from Texas? and was thankful that all this worked out.’’ only too happy to do their part. There was no objection. In May, the Houma missionary was ar- After reaching Moscow, the Songes trav- f rested in the town of Saransk on charges eled 200 miles southeast by train to Saransk, that he paid for goods and services using capital of the former Mordvinian Republic, REMOVAL OF NAME OF MEMBER American dollars rather than Russian rubles. now a region of Russia. The industrial town AS COSPONSOR OF H.R. 2823 Last week, Russian Judge Tatyana Yelina of 400,000, rooted in coal mining, sits on the Mr. DEFAZIO. Mr. Speaker, I ask imposed a suspended three-year prison sen- banks of the Insar River in the Volga up- unanimous consent to remove my tence and permitted him to leave the coun- lands. At first, the major and deputy mayor name as cosponsor of H.R. 2823. try voluntarily. Songe, 38, had faced the invited the Songes to locate in the town, and The SPEAKER pro tempore. Is there prospect of spending the rest of his life in they quickly began their ministry. jail until U.S. officials, led by Tauzin, waged But they were not as welcome as they objection to the request of the gen- a complex diplomatic effort to secure his re- thought. One of the most unwelcoming tleman from Oregon? lease and return. groups for Western missionaries is the Rus- There was no objection. A Russian bureaucrat had refused to grant sian Orthodox Church, scholars say. The f Songe an exit visa earlier this week, posing church had been the state religion under the a potential last-minute hitch that could pre- czars prior to the rise of the Soviet Union, SALUTING MR. TAUZIN’S EFFORTS vent the missionary from returning home. and its leaders longed to restore its pre-emi- ON BEHALF OF LOUISIANA MIS- But Songe received a letter this morning nence in Russian society. Many Russian Or- SIONARY CHARLES SONGE from Yelina, who assured bureaucrats the thodox church leaders in Saransk and (Mr. SCHAEFER asked and was given missionary’s case had been resolved. throughout the country feel threatened by permission to address the House for 1 ‘‘She assured the bureaucrats that they the increasing presence of Western missionaries, seeing them as religious and cultural minute and to revise and extend his re- would not be held liable for cutting him loose,’’ Johnson said. competition. marks and include extraneous mate- After receiving his visa, Songe went to The missionaries contend they are not try- rial.) Russian police, who returned the property ing to compete with Orthodox Church. Their Mr. SCHAEFER. Mr. Speaker, I they had seized from him, including a jour- following consisted mainly of young people, would like to take this opportunity to nal of financial transactions that was used some of whom felt disconnected from the ar- recognize the efforts of one of our disas evidence against him. chaic language and rituals of Orthodox serv- tinguished colleagues, the gentleman Songe’s train ride from Saransk will take ices. from Louisiana [Mr. TAUZIN], in secur- about 12 hours. He plans to board a plane in LAYING A FOUNDATION ing the release from Russia of Rev. Moscow at 7 a.m. Saturday, arriving in New The Songes, working through an inter- York that night. After a brief stop in At- Charles Songe, a Christian missionary national missionary group called Global lanta, Songe is expected to arrive at New Or- Strategies, built the Saransk Christian Cen- from Houma, LA. leans International Airport at 5:30 p.m. Sun- Mr. Songe was arrested in Russia last ter from the ground up. On weekends, the day aboard Delta Airlines Flight 2063. An en- couple joined other missionaries, playing year on charges of violating currency tourage of relatives, church members and acoustic guitar and singing hymns on street laws. However, the nature of his case friends is expected to greet him, including corners. indicates the real reason behind his ar- Tauzin, who plans to fly in from Washington. As passersby stopped to listen, the Songes rest was the Russian Government con- ‘‘It’s been an extraordinary odyssey filled invited them to visit their small church for tinuing to harass him. Due to the seri- with happiness, sadness, disappointing set- prayer and Bible discussions. Some accepted; ous nature of these charges and the backs and some major successes,’’ Johnson others shunned the missionaries for their dif- said this morning. ‘‘I guess there’s some- ferent religious beliefs. At its peak, the hostility shown to Mr. Songe by the thing to be said for the power of prayer.’’ Russian Government because of his re- church had 150 members, but the number IN THE BEGINNING dropped by at least two-thirds as Songe’s ligious activities, Mr. TAUZIN swung It all began when Songe, his wife Tina and legal troubles dragged on. into action, appealing to the United their three children, members of Living On the night of last May 16, as the couple States State Department and to Vice Word Church in Houma, bought plan tickets celebrated their 14th wedding anniversary, 11 President GORE. to Russia in June 1993. Less than two years Russian federal agents and two witnesses Mr. TAUZIN spearheaded a joint letter before, the Soviet hammer and sickle had crowded at their apartment’s front door, to Russian officials which I signed as been taken down from the Kremlin, marking flashing a search warrant, the Songes said. well as others. These efforts were rich- the end of communist domination. Through a translator, the agents demanded ly rewarded when a Russian judge im- Charles and Tina Songe said this historic financial records and answers to questions. Items were confiscated, including the jour- posed a suspended 3-year sentence. time offered a unique opportunity to spread the word of God as they understood it, in a nal in which Tina had recorded all the fami- I want to congratulate Mr. TAUZIN ly’s purchases since arriving in Russia. today for his fierce devotion to the country where religious freedom had been re- pressed for decades. Songe recalled those in- The next day, Charles Songe was arrested principle of freedom of religion in this tentions in a final plea before Judge Tatyana and charged with 74 counts of violating Rus- country, one of the cornerstones of it. Yelina and the two-member jury that heard sian currency laws. Each charge carries a I would also like to say that this is his case. maximum of 10 years in prison: 740 years just one way that we, as Members of ‘‘We came here to bless the people with the total. The journal became a key piece of evi- Congress, can satisfactorily help many, word of God, not to cause trouble,’’ Songe dence in the legal proceedings that followed. Russian media focused attention on the many people who are constituents said he told the judge. But trouble was what he found, much of it couple’s plight, and Tina began to fear she throughout the country. would be charged as well. In July, the Mr. Speaker, I include for the having less to do with his own circumstances than with the larger political and social up- Songes’ daughter, 13-year-old Heidi, required RECORD the following articles: heaval swirling around him. medical attention for a minor ailment and [From the Houma, LA Courier, Apr. 12, 1996] After the fall of the Soviet Union’s Iron returned to Houma, where she remained with THE BEGINNING OF THE END IS FINALLY HERE Curtain of secrecy and censorship, chaotic relatives. Tina and the Songes’ two other FOR MISSIONARY winds of new-found freedom raced like wild- children, Jonathan, 7, and Rene, 11, returned (By Dawn Crouch) fire across Russia. The country held its first to Houma in August. The Rev. Charles Songe is expected to re- truly free elections. A free press actively re- CHURCH AND STATE turn to Houma Sunday, ending a three-year ported news of the nation and the world as Almost from the start, U.S. officials and odyssey that placed the Christian missionary its members saw fit. members of Songe’s church in Houma ex- at the center of cultural, religious and eco- Free-market reforms transformed a state- pressed grave concerns. Johnson suggested nomic whirlwinds sweeping across Russia. controlled economy into privatized indus- that Russian authorities might have singled ‘‘He’s on his way home,’’ said Ken Johnson, tries. Many failed shortly after springing to Songe out because of his religious convic- a spokesman for U.S. Rep Billy Tauzin, R- life. Russia’s currency, the ruble, was no tions. Chackbay. longer subsidized and lost much of its value. ‘‘Our suspicions of religious persecution Johnson said he talked to Songe this For seven decades, the government had are fact, not fantasy,’’ Johnson said in No- morning before the Houma missionary tried to root out religious spirit and replace vember. ‘‘Russian officials are flexing their boarded a train to Moscow. it with an atheism that set humanity, not muscles, showing other missionaries that H3620 CONGRESSIONAL RECORD — HOUSE April 18, 1996 they aren’t welcome. A number of Russian reported trouble penetrating the Russian bu- [From the Houma, LA Courier, Apr. 15, 1996] leaders have admitted to the United States reaucracy in an effort to open negotiations. CHARLES SONGE RETURNS HOME—ORDEAL embassy that foreign missionaries have worn After weeks passed with little progress, Tau- ENDS FOR HOUMA MISSIONARY out their welcome.’’ zin appealed to Tom Pickering, American Experts on the new Russian legal system ambassador to Russia; and Rep. Ben Gilman, (By Dawn Crouch) agree that this was more than idle specula- R-New York, head of the House International NEW ORLEANS.—More than 200 well-wishers tion. Foreign missionaries, seen by some Relations Committee. bearing banners and singing joyous songs Russian officials as spiritual predators in a In September, Pickering sent a senior-level greeted Houma missionary Charles Songe at land whose values and norms were under- diplomat to Saransk. Tauzin also brought the airport Sunday as he ended this three- going rapid and dizzying change, were pro- the case to the attention of U.S. Secretary of year Russian odyssey. hibited by an August 1993 version of the Rus- State Warren Christopher and Vice President ‘‘I was told there would be a lot of people, sian Law on Freedom of Religion. Al Gore. but when you come out into a place like this, A provision of the Russian Constitution A LETTER FROM ON HIGH you try to be prepared but you can never be adopted by popular vote in December of that By mid-October, a plea bargain was being prepared,’’ Songe, clearly overwhelmed, told same year, however, made the ban moot, arranged, and Tauzin’s office said it was op- the crowd outside Gate 15–D at New Orleans since broader religious freedom to all sects timistic Songe could return home for International Airport. was granted—and protected. Attitudes die Thanksgiving. Pickering appointed Richard Songe, 38, caught a train to Moscow on Fri- harder than laws, however, in any society. Miles, the first ambassador to the former So- day for the first step in his journey back And the attitudes that sparked the mission- viet republic of Azerbaijan, to travel to home. When his flight touched down here ary prohibitions—especially strong in prov- Saransk and, as Johnson described it, ‘‘close Sunday, his wife, Tina, and the couple’s inces and towns removed from the urban cen- the deal.’’ three children boarded the plane to welcome ters of Moscow and St. Petersburg—remain. Back home, the family cautiously retained Songe before he emerged. Remote areas of any country—including hopes that Songe would be home to celebrate ‘‘We’re just so thrilled that the separation the United States—are more prone to discre- his birthday Nov. 27. is over,’’ Tina Songe said beforehand. ‘‘It’s tionary enforcement of laws, and Saransk is ‘‘If this doesn’t work, there will only be like the closing of a chapter in our lives and no different. The laws in Russia governing God,’’ Tina, 37, said. the beginning of another. I knew that God use of currency forbid the use of foreign cur- U.S. officials remained optimistic, but ne- was going to bring him home, It was just a rency—dollars included—for the purchase of gotiations, dragged on. Russian authorities matter of being patient enough for that to goods or services. said the case would continue past Christmas. happen.’’ Laws against using foreign currency were At Tauzin and Pickering’s request, two of It was the first time Songe saw his wife strengthened in about 1992 as a means of the most powerful government officials in and three children since he was charged with boosting the value of a plummeting ruble, America sent a letter to Songe on Dec. 22. breaking Russian money-exchange laws 11 experts on the post-Soviet legal system said. Senate Majority Leader and Republican months ago in Saransk, where he had worked Greater devaluation of the ruble would mean presidential hopeful Bob Dole, along with since 1993 organizing a Christian church. inflation—which can have a disastrous effect House Speaker Newt Gingrich, said they Accused of buying goods and services with on any economy. were following the case and expressed hope U.S. dollars, Songe was charged in May with Vratislav Techota, an adjunct professor of for Songe’s speedy return home. 74 counts of currency violations, each carry- Russian law at Columbia University School ‘‘As American families all across the coun- ing up to 10 years in prison. of Law in New York, is among several ex- try celebrate this joyous season, we know Songe’s wife; son Jonathan, 7; and daugh- perts who said that the currency law, with how difficult it must be for you to be away ters Renae, 11; and Heidi, 13; were allowed to which Songe was charged with violating, is from your loved ones,’’ the Republican lead- leave Russia soon after his arrest. widely ignored. ers wrote. ‘‘But please take heart that you Embracing his teary eyed wife. Songe ‘‘This is not a criminal offense in most are not alone. Members of Congress, as well cases,’’ Techota said. ‘‘This is an administra- emerged from the plane with his beige but- as Americans around the nation, have you in toned-down shirt half untucked and loosened tive offense. Russia strictly regulates the their prayers.’’ circulation of foreign currency. It is not for- gray tie. He then hugged his mother, whom HEADING FOR TRIAL bidden to bring the foreign currency into the he hasn’t seen since he left for Russia. The country, but to bring the rubles out. You can Efforts to negotiate a plea bargain failed, crowd sand ‘‘Celebrate Jesus’’ as Songe em- exchange foreign currency for rubles at au- so officials focused on preparing Songe for braced and greeted family, friends and mem- thorized banks.’’ trial. On March 22, the week-long proceed- bers of Houma’s Living Word Church. Johnson is now convinced the currency ings against Songe and five other defendants Before reaching the end of the walkway, charges were a ploy designed to harass Songe began. Songe met U.S. Rep. Billy Tauzin, R- out of the country—and send a message. The prosecution’s key witness was Oleg Chackbay, who had flown in from Washing- ‘‘The case confirmed to me there is always Kruchenkin, a Russian student who be- ton to greet the missionary. Tauzin intro- another side to the story, and as a journalist, friended the Songes early on. They said that duced himself and, without words, Songe we always strive to get both sides. In this later he turned against them. Kruchenkin re- clinched the congressman’s fist. The two case we were getting it just from the em- portedly described Charles Songe as the men held their hands above the crowd as bassy and the Russians—that he was guilty,’’ ‘‘ringleader of an illegal currency oper- Songe said ‘‘I wouldn’t be here today if it said Johnson, a former news reporter. ation.’’ weren’t for Billy Tauzin.’’ ‘‘Guilty of what? Guilty of breaking a law Songe pleaded ‘‘guilty in part,’’ declaring Tauzin helped lead diplomatic efforts to se- that everyone breaks or guilty of being a that although he exchanged the money, he’s cure Songe’s return and release. The con- Christian in a country that didn’t want him been unaware that the transactions were il- gressman enlisted the help of several top there?’’ legal. U.S. and Russian officials after Songe was On April 3, Songe was convicted but given WATCHFUL EYES arrested in May. Both Tauzin and his spokes- probation and allowed to return home volun- man, Ken Johnson, kept in contact with the Parts of Songe’s ordeal reads like a spy tarily. The others on trial with him also novel. In May, he was placed under house ar- missionary several times a week as the case were spared prison sentences. dragged on. rest and prohibited from leaving Saransk. He Back home, a chorus of ‘‘hallelujahs’’ Tauzin repeated his contention that Rus- and his wife, their landlord, a translator and greeted Tina Songe as she stood before al- sian authorities prosecuted Songe more for fellow church members were interrogated by most 100 members of Houma’s Living Word his religious beliefs than money-exchange the FSB, Russia’s equivalent of the United Church, who gathered for a prayer service laws, which experts have confirmed are se- States’ CIA. U.S. officials said the mission- hours after learning that her husband’s free- lectively enforced. ary feared his phones were being tapped, e- dom was won. mail transmissions monitored and move- Tina Songe noted that some had worried ‘‘He was out there preaching the gospel of ments closely watched by Russian police. about the case greatly, but her faith in God the Lord and doing his work and he was One Friday night in February, Songe was kept her strong. doing nothing wrong that any other citizen attacked by two men as he walked along a ‘‘I never lost a night of sleep during this, wouldn’t do in Russia,’’ Tauzin said. ‘‘If this Saransk street on his way to a prayer meet- but I know some people would come to me wasn’t a case of religious persecution, I’ve ing. U.S. officials sought police protection. and say, ‘‘I woke up in the night a couple of never seen one.’’ ‘‘We have urged Charles to move into a times and had to pray for Charles,’’ she said. Tauzin said the Russian authorities were new apartment and to have one or more Both Charles and Tina plan to continue using Songe to send a message to mission- church members staying with him at all their missionary work, perhaps traveling aries that they are not wanted in the coun- times,’’ Johnson said after the incident. abroad once again. try. ‘‘Charles’ case is in the newspapers and on ‘‘My one regret is that I didn’t know the ‘‘This was not just about you,’’ Tauzin told the TV. People know that his church at law,’’ Charles Songe said in a telephone Songe. ‘‘This was about every citizen who home sends him money. We suspect that interview last week from Russia. ‘‘If I ever wants to do missionary work in other coun- someone was trying to cash in on this.’’ do it again, I will make sure to inform my- tries.’’ Songe’s release rested heavily on diplo- self and be careful to observe that country’s Tina Songe, carrying a batch of white matic efforts. Early on, American officials customs.’’ roses given to her husband by a friend, held April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3621 Charles’ arm as the couple thanked the peo- ans of Foreign Wars Post, in Green- Mr. Speaker, Neal Hahn is certainly ple who prayed for them during the long or- ville, NC, will celebrate their 50th anni- not alone, in deserving our recognition. deal. Songe also exclaimed at such a joyous versary by recognizing their charter I stand here today and salute all of our homecoming. members. They, like all of our veter- veterans, for their dedication to duty, Eleven-year-old Renae planned to be the first to hug her father. But, she said, ‘‘Mom ans, have made great sacrifices to pro- for risking their lives to protect our got to do that. I didn’t mind. The first thing tect the American way of life. families, and for their continued com- I did was sing a song I wrote for him.’’ Mr. Speaker, what stands out in my mitment to our way of life. Mr. Hahn, Renae said she was too startled to cry the mind, is that this generation of veter- you, and men and women like yourself first time she saw her father, but her song, ans, gave so much for their country are the real heroes in our Nation. To ‘‘Praise God,’’ allowed her to express her and asked for so little in return. They Neal Hahn and veterans everywhere, I overwhelming emotions. answered their country’s call to arms, say, thank you for your dedication to ‘‘I didn’t cry and neither did Heidi or Jona- fought bravely on foreign battlefields, our Nation. than. But my mom just grabbed him and cried,’’ the girl said. ‘‘I feel like I’ve gone to and returned home to work hard, and f build strong families. Mr. Speaker, I the toy store and gotten my daddy as a gift.’’ b 1515 Songe first touched American soil Satur- would like to recognize one of these day night after his 17-hour flight from Mos- selfless individuals in particular, Neal The SPEAKER pro tempore (Mr. cow landed in New York. Songe said he was Whitener Hahn, Jr., of Greenville, NC. PETRI). Under a previous order of the too tired that night to do anything but call Mr. Hahn was born in Kinston, NC, House, the gentleman from New Jersey his family and sleep. He woke the next morn- on September 7, 1919. Raised with his [Mr. PALLONE] is recognized for 5 mining and ate an early breakfast of eggs, bacon, two brothers and one sister, Mr. Hahn utes. hash browns, orange juice and coffee. lived most of his younger life in Wil- ‘‘It was great,’’ he said. I haven’t had a [Mr. PALLONE addressed the House. meal like that in years.’’ mington, NC. He is married to his wife His remarks will appear hereafter in Songe ate his second meal in America of 50 years, Helen, and together they the Extensions of Remarks.] since his return in a restaurant with Tina have raised four children. f and the children Sunday night in New Orle- In 1938, as WW II loomed in the hori- The SPEAKER pro tempore. Under a ans. zon, Mr. Hahn joined the North Caro- previous order of the House, the gen- ‘‘It’s fantastic to see cars, nice cars. You lina National Guard, Company A, 105th tleman from Indiana [Mr. BURTON] is can’t see that in Russia,’’ he said. ‘‘There is Medical Battalion. He was trained as a recognized for 5 minutes. just a special air that tells you you’re in medic. On September 16, 1940, he was America.’’ inducted into the U.S. Army and sta- [Mr. BURTON of Indiana addressed f tioned at Fort Jackson, SC. He spent the House. His remarks will appear hereafter in the Extensions of Re- COMMUNICATION FROM THE HON- the next 4 years training new troops. marks.] ORABLE DAVID E. SKAGGS, MEM- On February 12, 1944, Mr. Hahn was or- BER OF CONGRESS dered overseas. Ten days later he land- f ed in Scotland, where he trained for The SPEAKER pro tempore laid be- FINALLY, CORRIDOR H FOR WEST several months. On June 10, 1944, his VIRGINIA REGION fore the House the following commu- unit landed at Omaha and Red Beach nication from the Honorable DAVID E. as part of the Allied invasion of The SPEAKER pro tempore. Under a SKAGGS, Member of Congress: France. previous order of the House, the gen- U.S. HOUSE OF REPRESENTATIVES, Mr. Hahn spent the next 337 days on tleman from West Virginia [Mr. WISE] April 15, 1996. the front lines, as a combat medic. He is recognized for 5 minutes. Hon. NEWT GINGRICH, Mr. WISE. Mr. Speaker, I want to Speaker, U.S. House of Representatives, Wash- received five battle stars during that time. On January 10, 1945, he was talk today about a project that is very ington, DC. important not only to my State of DEAR MR. SPEAKER: This letter notifies wounded in Belgium, during the Battle you, pursuant to Rule L [50] of the Rules of of the Bulge, and was awarded the Pur- West Virginia but indeed to this entire the House of Representatives, that a sub- ple Heart. Then, on April 12, 1945, Mr. region, and that is corridor H. poena issued by the U.S. District Court for Hahn was awarded the Silver Star for Corridor H is a major four-lane road the District of Colorado in the case of United Valor, the military’s second highest that has been on the books for 25 years States v. Abbey was mailed to me at my award for bravery. The following is an and that we have been trying to build Westminster, Colorado, district office. in West Virginia. The environmental I have been advised by the Office of the excerpt of the official citation: Neil W. Hahn, Jr., Medical Department, impact statement after 6 years has fi- General Counsel of the House that the meth- nally been completed, and the public od of service of the subpoena did not comply United States Army, for gallantry in action with Rule 17(d) of the Federal Rules of on 21 December, 1944, in Belgium. When they comment period begins on April 26 and Criminal Procedure. I have asked the Office learned that men were lying seriously will extend for 30 days. This is a time of General Counsel to so advise the attorney wounded in an open field, across a river, Pri- for citizens and groups and businesses who mailed the subpoena to me. vate Hahn waded through icy currents of the and all those individuals who want to Sincerely yours, river, and crawled for one hundred yards have another say and want to review DAVID E. SKAGGS. through intense enemy fire to the casualties. the EIS to do so. Finding that the wounded men were unable f to move, Private Hahn and his comrade gave This EIS has been 6 years in the making. It has been one of contention. SPECIAL ORDERS first aid and made three trips to evacuate them through the enemy fire and across the It has been one in which the State de- The SPEAKER pro tempore. Under river. Their great heroism and unselfish department of transportation has had to the Speaker’s announced policy of May votion to duty, saved the wounded men, from meet and accommodate many, many 12, 1995, and under a previous order of death through wounds or exposure. legitimate concerns: environmental, the House, the following Members will Mr. Speaker, what is even more re- historical, terrain, cost. After a long be recognized for 5 minutes each. markable, is that Mr. Hahn never actu- time the State took four corridors and f ally received some of his military deco- narrowed it down to a preferred cor- rations and awards. For 50 years, this ridor, and then within that 2,000-foot IN RECOGNITION OF NEAL WHIT- humble man kept quiet, never asking way the State has now accommodated ENER HAHN, JR., AND THE our Government for his medals. To Mr. the various concerns that have been CHARLES GRAY MORGAN VFW Hahn, the medals were not important. made, whether it is a Civil War battle- POST, GREENVILLE, NC What is important is that he served his field or whether it is a stretch of wet- The SPEAKER pro tempore. Under a country with courage and honor. Now, land. previous order of the House, the gen- in conjunction with their 50th anniver- After being in the Department of the tleman from North Carolina [Mr. sary, the VFW Post in Greenville will Interior for a number of weeks, all JONES] is recognized for 5 minutes. conduct a special ceremony to finally questions about boundaries for historic Mr. JONES. Mr. Speaker, on April 25, present to Mr. Hahn all of the medals battlefields have now been resolved. 1996, the Charles Gray Morgan Veter- he has earned and so clearly deserves. The Federal Highway Administration H3622 CONGRESSIONAL RECORD — HOUSE April 18, 1996 has signed off on corridor H and will re- tleman from Virginia [Mr. WOLF] is bling interests last year set up the view it, of course, again following the recognized for 5 minutes. Washington-based American Gaming environmental impact statement. At Mr. WOLF. Mr. Speaker, money and Association headed by Frank that time, probably within the next power. That is the influence too often Fahrenkopf, former chairman of the few months, it will issue its final on Capitol Hill when it comes to the Republican National Committee, who record of decision, or ROD. Then fol- legislative process. the Post report says is being paid over lowing that, the State can begin real Money and power. a half million a year for his work. He, estate acquisition and appraisal and, The American people more and more in turn, hired Kenneth Duberstein, hopefully, go to bid at the end of the every day hold this institution in disre- former top adviser to President Ronald year. pute because of the influence they see Reagan, and other Republican Party I say this because corridor H is prob- wielded by special interests whose bot- and Presidential aides, as well as a ably the single most important high- tom line is money and power. former Democrat Member of Congress way project, not only for West Vir- That influence has been evident and the former chief floor counsel to ginia, but, I think, for this region of throughout the legislative history of a then Democrat Senate Majority Leader the country; 114 miles in West Virginia bill to create a national commission to George Mitchell, among others, to that are so crucial to not only opening study what a front page article in to- carry the water for the gambling indus- up the eastern part of our State to the day’s Washington Post calls the ‘‘ex- try and wield its money and power in- west but also then being a natural cor- plosive growth in legalized gambling.’’ fluence. ridor that continues on out as once And today, as Post reporter Blaine Just what did the gambling interests people get to Weston and then can con- Harden reports, ‘‘Nevada-based gam- get for their high-priced and well- tinue north and then west toward the bling interests working with prominent placed cadre of lobbyists? They have Ohio area or south and then west to Republican lobbyists’’ have ‘‘sabo- managed to rewrite the gambling bill that was ready for markup today in the Kentucky and points west. taged’’ a bipartisan effort in Congress Corridor H, I believe, is economically to pass legislation to establish a Na- Senate with amendments which would feasible. Indeed, the Appalachian re- tional Gambling Study Commission. turn the study commission into a library study group with no power to gional studies demonstrate that coun- Money and power. convene investigative hearings, no tries that have a four-lane corridor of Those special interests are poised to power to subpoena information, no au- this magnitude see job creation three effectively neuter legislation that thority to do any original research and times that which is projected in coun- would provide information to the confined to only reviewing information ties without such a project. American people on the effects of what that already exists, and with a limita- This is a major east/west highway, has become a $40-billion-a-year indus- tion to only make recommendations on and so my hope is that we can, with try that generates, according to the Indian and Internet gambling. this completion of the environmental Post article, ‘‘six times the revenue of all American spectator sports com- And one more amendment from the impact statement, I realize this is not gambling interests: the Commission is going to make everyone happy, but bined.’’ Think about that. Six times the revenue of all spectator sports directed not to examine the economic with the completion of this environ- impact of gambling on businesses, po- mental impact statement that we can combined. And when you add to spectator sports revenue other leisure ac- litical contributions, the relationship get on about the business of building between gambling and crime, a review corridor H. It has been too long in con- tivities for which American spend their money, such as movie box office totals, of the demographics of gamblers, a retention, and at least in the West Vir- view of law enforcement, a review of theme parks, cruise ships, and recorded ginia section it is important that this State, Indian and Federal gambling music, that combined total is over $3 highway be completed and so to com- policy, advertising or other issues the billion less than gambling revenues in plete the Appalachian corridor system Commission chairman may deem ap- that has promised so much to our a year. As our colleagues will recall, we propriate. State. And a final amendment: for what is unanimously passed a responsible and So, Mr. Speaker, I just wanted to supposed to be an objective commis- fair National Gambling Study Commis- keep you up to date on this important sion charged with the responsibility of sion bill in the House on March 5. project as it moves ahead. I encourage studying the full effects of gambling on There was bipartisan support for the everybody to be involved in the public American society, the gambling inter- legislation which has over 140 House comment period, and I look forward to ests successfully pushed their way to seeing this project actually go to bid cosponsors and which garnered the sup- the study table with the amendment to sometime at the end of the year in the port of family interests groups across provide that individuals with an inter- segments that have already been ap- America and major newspapers includ- est in the gambling industry should be proved and where these issues have ing the Atlanta Journal and Constitu- appointed to the Commission. been resolved. tion, Boston Globe, Chicago Sun- With these amendments, the Na- f Times, Cincinnati Enquirer, Dallas tional Gambling Study Commission Morning News, Los Angeles Times, The SPEAKER pro tempore. Under a may as well convene at the library and Houston Chronicle, Philadephia In- previous order of the House, the gen- chat about the books the gambling in- quirer, USA Today, Portland Orego- tleman from Indiana [Mr. MCINTOSH] is terests check out to read. This is a nian, New Orleans Times-Picayune, In- recognized for 5 minutes. sham and a disgrace and an insult to dianapolis News, and Washington Post, the American people who are being [Mr. MCINTOSH addressed the House. among others. suckered in by an industry which His remarks will appear hereafter in But money and power have an insid- the Extensions of Remarks.] thrives when it operates in the shad- ious way of spreading their tentacles of ows, much like roaches which find f influence and the gambling interests their way around in the dark. When the The SPEAKER pro tempore. Under a unleashed their money and power and light shines though, the gambling in- previous order of the House, the gentle- were ready this morning with killer terests, much like the roaches, scurry woman from Connecticut [Ms. amendments to the gambling study bill to hide. DELAURO] is recognized for 5 minutes. in the Senate that would have made a Money and power. [Ms. DELAURO addressed the House. mockery of the legislation. Perhaps the High-priced lobbyists and political Her remarks will appear hereafter in light of the Post article today shone connections at work to thwart an at- the Extensions of Remarks.] too brightly on this disgraceful show tempt to provide basic information to f because the Senate bill was pulled from cash-strapped local and State govern- the markup. ments being drawn into the promises of MONEY AND POWER INFLUENCE But the fingerprints of the gambling easy money from legalized gambling. ON GAMBLING LEGISLATION industry are all over the current effort Why are the gambling interests spend- The SPEAKER pro tempore. Under a in the Senate to stop the National ing millions of dollars in political con- previous order of the House, the gen- Gambling Study Commission. Gam- tributions and lobbying campaigns to April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3623 stop a national study of gambling’s ef- were Governor State senate president, case obviously financed and trained by fects on America? Why are they trying house majority leader, attorney gen- Iran and given the green light by Syria to stop a bill that will allow an objec- eral, State police director, circuit to operate in Lebanon. tive, comprehensive, and impartial judge, Chicago mayor, and two U.S. at- In order to end these attacks, Israel legal and factual assessment of gam- torneys. The former head of the State undertook Operation Grapes of Wrath. bling, a bill that does not outlaw gam- gaming regulatory board now lobbies As I say, every country has that per- bling, that does not tax gambling, that for a major gambling group and at fectly legitimate right to respond to does not regulate gambling? least three former board officials are terrorist attacks across its border. Why would they turn a blind eye to on casino payrolls. Today we saw a dramatic change in its the stories of poor mothers playing the According to figures compiled by the operation. We saw a dramatic turn of slots with their children’s lunch Center for Responsive Politics, a non- events in which innocent civilians who money, or teenagers so addicted to partisan research group in Washington, have been killed over the last week or gambling that they prostitute their over the past few years the gambling so of this operation escalated into girlfriends to pay off their mob debts, industry overall gave at least $4.5 mil- which the death count now stands at or the accounts of Americans who are lion to the Republican and Democrat close to 100 innocent civilians killed in so distraught over their mounting parties and their candidates for Fed- an Israeli bombardment of a U.N. base gambling debts that their only per- eral office, including $1.8 million in camp in southern Lebanon, these inno- ceived recourse is suicide. ‘‘soft money’’—unregulated, unlimited cent civilians having tried to flee, ac- From what information we have contributions to party committees do- cording to Israeli warnings beforehand, gathered today, we see a picture of nated since 1991. in order to prevent harm to them- gambling hurting people and busi- These money and power brokers have selves. nesses. How many suicides and near been at work since House passage of Whether it was a mistake, whether it misses does it take to make the case? the national gambling study bill to ne- was just another message being sent in How many bankruptcies and broken gate any responsible, fair or objective the long list of messages in which Leb- homes? How many failed careers, failed effort in the Senate to pass similar leg- anon is used as a chessboard in which marriages and broken dreams are need- islation. And with their money and outside powers play their game in Leb- ed to register on the misery meter? power, as today’s Washington Post anon, remains to be debated, and is What is the gambling industry afraid headline proclaims: ‘‘Don’t Bet on a currently being debated in the highest of? What is driving their effort to stop U.S. Gambling Study.’’ echelons of Israeli government. this national commission to study the How much longer will the best inter- President Clinton, much to his credit explosive influence of gambling on the ests of the American people take a and however late it may be, has, within American culture? backseat to the influence of money and the hour, from St. Petersburg, Russia, Money and power. power in Washington? called for a cease-fire in the Middle Consider these facts: Money and power. East. He has issued his sympathy to In Missouri, the gambling lobby f the families of those innocent civilians spent $11.5 million, mostly raised from killed in today’s state-sponsored ter- out-of-state companies, on a successful b 1530 rorist act, and he has called for a 1994 referendum to allow slot machines GRAPES OF WRATH cease-fire to take place, I hope, imme- in casinos. According to an Associated diately. The President is to be com- Press report by Jim Drinkard, ‘‘after The SPEAKER pro tempore. Under a mended for this call, however late it is failing in its first attempt to legalize previous order of the House, the gen- in coming. slot machines on Missouri riverboats, tleman from West Virginia [Mr. RA- But the final resolution, the final the gambling industry took no chance HALL] is recognized for 5 minutes. resolution of this conflict will only and spared no expense.’’ Following a Mr. RAHALL. Mr. Speaker, every occur when a peace treaty is reached pattern that has been repeated across country has the perfectly legitimate between those two main power brokers, the country, Drinkard reported that it right to respond to terrorist attacks Israel and Syria. It is time to quit hired the chief strategist for then upon its borders and its people, regard- using Lebanon as a chessboard. It is House Democrat majority leader, con- less of whether those attacks were pro- time to quit using the lives of innocent sidered to be Missouri’s most visible voked or not. Such has been the case in civilians, women and children, in order politician, paying her $218,750 to help southern Lebanon, the home of my to send political messages to one party win passage of the 1994 referendum. grandfathers, where Israel has under- or another. In Louisiana, the gambling lobby taken Operation Grapes of Wrath in Let us hope that, as has happened in contributed $1.07 million to State legis- order to end the terrorist Hezbollah at- the past in the Middle East, with this lators in 1993 and 1994, $1 out of every tacks across the border into northern outrageous action today and with this $5 given to lawmakers and three times Israel. uncalled for action, that perhaps it will as much as was given by the petro- This tit for tat, this eye for an eye, be the last salvo and we will see a true chemical industry. this cycle of violence has gone on for breakthrough and peace occur. In Florida, the gambling lobby spent well over a decade now. Ever since Isra- That peace will occur when the Leba- $16.5 million on an unsuccessful ref- el’s bombardment into southern Leb- nese Army, which in my opinion is erendum campaign to legalize casinos anon, and indeed, into Beirut itself in quite capable of disarming Hezbollah, in 1994, only $1 million less than the 1982 to rid Lebanon of the PLO, they disarming them completely, put it in Republican and Democrat guber- have occupied what they have called a writing if need be, as Israel is demand- natorial nominees spent in the Gov- buffer zone in southern Lebanon in ing, with Syria guaranteeing the safety ernor’s race combined. order to protect its northern borders. of Israel’s northern border along with In Connecticut, four gambling groups This Israeli occupation has led to the the Lebanese Government, and assur- spent $4.9 million over the last 4 years growth of Hezbollah, or Party of God. ances that Hezbollah will stop these at- in an unsuccessful campaign to lobby This Lebanese group has sought to end tacks once they are fully disarmed, and the State for a casino. this occupation, and therefore has un- second, and at the same time, and no In my own State of Virginia, gam- dertaken needless, uncalled for, waiting until on down the road to see bling lobbyists spent over $1.1 million unprovoked terrorist attacks into what happens, but at the same time, over 2 years to convince the general as- northern Israel. These have been un- then I call upon the Israelis to recog- sembly to legalize casinos. dertaken, and in the past have been nize U.N. Resolution 425 and withdraw In Illinois, the gambling lobby con- guided by unwritten agreements by their forces from southern Lebanon at tributed $1.24 million to candidates for which Israel and Syria, the two main the same time. State office between July 1, 1993, and power brokers in the region, have Let us put it in writing. Let us do it, June 30, 1994. Also in that State at one agreed not to attack each other di- however, by unwritten agreement or point gambling interests in Illinois had rectly. Therefore, Hezbollah operates whatever, but this is the only solution under contract people who formerly as a proxy for outside powers, in this to the current eye-for-an-eye, tit-for- H3624 CONGRESSIONAL RECORD — HOUSE April 18, 1996 tat cycle of violence that has taken too Instead of gun boat diplomacy, Brown’s 1960, the average pay for a chief execu- many innocent lives, has caused too philosophy was MacDonalds diplomacy. If tive officer of some of the largest U.S. much suffering, and has inflicted eco- you want to spread democracy, sell Amer- corporations was 12 times greater than nomic damages upon a country friendly ican products. Sell a way of life where people the average wage of their factory work- spend their time making money instead of to the United States, upon a country making enemies. ers. Today, those same CEOs receive that has not been responsible for these The old Yugoslavia, which had a healthy wages and compensation worth more terrorist actions, the country of Leb- economy, then killed it, seemed to defy that than 135 times the wages and benefits anon, too weak to handle it, strong in philosophy. But a good salesman keeps try- of their average employee, the average my opinion, growing stronger mili- ing. employee at the same corporation. In tarily but not politically, because of My boss used to have a plaque on his desk some instances, Mr. Speaker, the dif- the controls the Syrian Government which said, nothing happens until something ference is more than 200 times. That is has in that country. is sold. It was there to remind us that those not fair, and it is not fair that about 70 people in the sales department, the one’s But if we want to see peace, a truly who got their hands dirty closing deals, were percent of minimum wage earners are just and comprehensive peace to which the people who kept our paychecks from women, adult women with children. It the President spoke today, to which all bouncing. is not fair that from 1973 to 1993, real parties aspire, then it is time we get to Trade missions, and I’ve attended a few, income for working men, men with the root of the problem. It is time we are pretty boring. Business executives talk high school diplomas, dropped by 30 reach that agreement that would be a about exchange rates, ownership rights, local percent. major step forward in Israel’s recogni- taxes. It’s nothing newsworthy. It just cre- Businesses are doing well, Mr. Speak- tion by all Arab countries in the re- ates thousands of jobs. er. Private business productivity has A toast then, to the salesman. Traveling gion. on a shoe shine and a smile. Sometimes, on been increasing. Profits are up, but f a wing and a prayer. wages are stagnant. What is wrong with this picture? Is it not time to let The SPEAKER pro tempore (Mr. Thank you, Mr. Ross. I know that the American workers share the fruits of PETRI). Under a previous order of the family of Mr. Brown thanks you as their labor? House, the gentleman from Illinois well. Speaker GINGRICH and his allies say [Mr. WELLER] is recognized for 5 min- f they support traditional American val- utes. INCREASING THE MINIMUM WAGE ues. Let us return to the traditional [Mr. WELLER addressed the House. American value of paying an honest His remarks will appear hereafter in The SPEAKER pro tempore. Under a wage for an honest day’s work. Let us the Extensions of Remarks.] previous order of the House, the gentle- raise the minimum wage, and let us do f woman from California [Ms. WOOLSEY] it now. is recognized for 5 minutes. f A EULOGY FOR RON BROWN Ms. WOOLSEY. Mr. Speaker, 28 years The SPEAKER pro tempore. Under a ago, I was a single working mother GROUNDS FOR OPPOSITION TO previous order of the house, the gen- with three small children, receiving no THE ANTITERRORISM BILL tleman from California [Mr. MARTINEZ] child support and earning close to the The SPEAKER pro tempore. Under a is recognized for 5 minutes. minimum wage. Even though I was previous order of the House, the gen- Mr. MARTINEZ. Mr. Speaker, earlier working, I was earning so little that I tleman from Hawaii [Mr. ABERCROMBIE] today there was a resolution that was was forced to go on welfare to provide is recognized for 5 minutes. passed by this Congress honoring my children with the child care, the Mr. ABERCROMBIE. Mr. Speaker, I former Secretary Ron Brown. I was un- health care, and the food that they want to elaborate, if I might, on the re- able to attend that because I was in a needed. Even though I was educated marks that I made with respect to the hearing of a subcommittee on which I and had good job skills, I still was not so-called antiterrorism bill earlier. As am the ranking member, but I did want earning enough to fully support my members know, we are constrained by to do this then, and I take the time children. My story bears repeating to- time in our remarks, and by having 5 now to do it. night, because too many families today minutes today, perhaps I can make a Mr. Speaker, one or two days after are in the same predicament I was 28 little more clear or elaborate a bit on the tragic death of Ron Brown, I was years ago. what the grounds were for my opposi- traveling to an event in my district Mr. Speaker, if this Congress is truly tion. and listening to KNX news station. serious about reducing dependence on Mr. Speaker, let me quote in part Dave Ross, reporting for CBS news welfare, then let us increase the mini- from a story written in today’s Wash- radio, came on the air and gave what I mum wage. Let us make work pay, and ington Post, as follows, excerpting consider to be a tremendous eulogy for let us make sure that paying working from the story: Ron Brown. parents enough to support their fami- It marks the first time in more than a cen- I would like to share it with the lies and take care of their children is a tury of law on the writ of habeas corpus that Members of the House. priority on our agenda. Federal judges would have to defer to State Mr. Ross entitled his tribute, ‘‘death Mr. Speaker, the minimum wage has court determinations on whether a prisoner’s not kept up with the increase in the constitutional rights were violated. A writ of of a salesman.’’ habeas corpus is a way for Federal judges to A tragedy freezes time. Events you would cost of living. Workers these days can assess whether a defendant’s conviction is otherwise ignore become significant. put in a full day of work, 40 hours a unconstitutional because, for example, his Pictures of a Cabinet official eating break- week, at minimum wage and still live right to a fair trial was infringed. The writ fast in a tent end up on the front page. And below the poverty line. The new major- orders the State to produce the prisoner, the the story of a trade mission which otherwise ity in Congress wants to cut the earned body, or the corpus, so that he can make his couldn’t compete with the FBI’s latest income tax credit, kick single moms case to a Federal court. unabomber suspect or the standoff in Mon- and their children off welfare, and re- Mr. Speaker, I had indicated in my tana becomes the center of attention. Before now the only time you heard of Ron duce health benefits for low-income previous remarks that this past week- Brown was when some new piece of evidence families, but they will not even hold a end my wife and I attended a play, surfaced in his Justice Department inves- hearing on increasing the minimum were observers at a play that was given tigation. wage. If we want to reduce reliance on in Honolulu in a very small venue. I do He was suspected of spending too much on public assistance, Mr. Speaker, does it not think there were 20 people there, travel and using international junkets to re- not make sense to make work pay? mostly students. It was a student pro- ward campaign contributors. Should not entry level jobs pay more duction, student-directed. The set was Some junket. Breakfast in a tent and trav- than public subsistence? very simple. There are only three char- el in a plane so poorly equipped no passenger airline could legally fly it. But a salesman In addition to making economic acters, if you will. The play was called can’t stop to wonder whether the plane is sense, a minimum wage increase is also ‘‘Death and the Maiden.’’ It comes safe or what his critics are saying—there’s a a matter of basic fairness for millions from a work by Schubert and is a beau- product to move. of working Americans. Mr. Speaker, in tiful piece, orchestral piece. Death and April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3625 the Maiden was played by a doctor who Mr. Speaker, in that context we see, That is why today earlier Minority is a participant in torture in an then, that to eliminate habeas corpus Leader GEPHARDT and many of my col- unnamed Latin American country. He does damage to the Constitution be- leagues issued a warning, warning the plays the symphonic piece as he tor- yond repair. American people to beware of Repub- tures people, to torment them. f lican candidates coming to your home- In the play, a lawyer who has been town between now and election day MILLER EXPRESSES CONCERN RE- named to a commission to examine saying that they support environ- GARDING TONGASS AND REPUB- what has happened in the country pre- mental protection, but who in fact LICAN MASQUERADING ON viously with respect to those who have have voted repeatedly in this Congress EARTH DAY been arrested and tortured and killed, against environmental protection. disappeared, indicates that the reason The SPEAKER pro tempore (Mr. These are Republicans practicing that the regime was able to accomplish PETRI). Under a previous order of the ecofraud. The only thing green about this in the first place was the abandon- House, the gentleman from California these Republican candidates is the ment of habeas corpus; that is to say, [Mr. MILLER] is recognized for 5 min- camouflage they are using to mask the capacity of the individual to be utes. their antienvironmental record and the able to take a case to a Federal judge, Mr. MILLER of California. Mr. money they take from special interests in the context of the United States, to Speaker, the Tongass National Forest to gut environmental measures of this ask that judge to determine whether or in southeast Alaska is one of the jewels Nation. not he or she is being fairly held. of the American forest system. It is America’s only temperate rain forest To the Republican leadership and to b 1545 that is intact, that can be protected those who follow them in this Con- As my good friend from California, and that can be preserved. It is also the gress, today we issue the following Mr. MILLER, said to me just very re- subject of a rider on the appropriations challenge: Stop your assault you are cently in discussion about these re- bill to do great damage to the Tongass, leading on the environment, stop the marks and positions on the bill, the contrary to the law that was passed a masquerade you are playing out on loss of our rights and our privileges do couple of years ago to reform the forest Earth Day to appear environmentally not come in grand sweeps. They come practices on this forest. friendly, and work with us to protect by degree, they come by circumstances The gentleman from Louisiana [Mr. those environmental laws that protect that are deemed at the moment more LIVINGSTON], the chairman of the Com- this Nation and to improve those that than sufficient to erode that particular mittee on Appropriations, has asserted do not. right. that the provision that is now in that But do not pretend that because you And so I asked friends at the Library legislation in fact is a decrease in the bring to the House floor two minor of Congress to provide for me a copy of number of board feet eligible for cut- bills that everybody supports, when the playwright’s essays. Ariel ting from 450 million board feet to 418 you have voted in the past to destroy Dorfman, the Chilean writer, is the au- million board feet. The fact of the mat- the basic environmental laws of this thor of the play ‘‘Death and the Maid- ter is that that is not accurate. The country, that somehow you are now en,’’ and he was written a book of es- Tongass Reform Act of 1990 eliminated pro-environment. You are not. Do not says or compiled a book of his essays the 450 million board feet mandate for pretend that planting trees or cospon- called ‘‘Some Write to the Future.’’ I these lands and protected over 1 mil- soring a trails bill or a 1-day cleanup of recommend it to the Speaker and to lion acres from the forests for logging, the beach, as your campaign advisers others who are concerned about this. I reducing the amount of old growth have told you to do, makes you an en- realize it was an agonizing vote for timber that is eligible for harvesting vironmentalist. It does not. many. by 51 million feet annually. But in the process of commenting on The number of board feet eligible for You cannot vote day in and day out, Chile, the country from which Mr. cutting is currently 399 million board as you have in the Congress of the Dorfman comes, he wrote an essay once feet. The rider would increase that by United States, to gut the Clean Water called the Political Code and the Lit- 19 million, to 418, which is over 100 mil- Act, to gut the Clean Air Act, to bank- erary Code, the testimonial genre in lion board feet above the average cut in rupt the Environmental Protection Chile today. the last decade. Agency, to destroy the national parks In it he says, in that essay: The fact of the matter is that the and the public lands, and the forests of Terror, then, has a public character. As rider is very detrimental to the future this Nation, and to give away those re- such, it leads to a great ideological oper- of the Tongass forest. It asks for cut- sources that belong to the taxpayers ation, which authorizes, in the name of ting that is not sustainable, that will and the people of this Nation to the Western, Christian values, a purifying cru- ruin this forest, that will put it into special interests. You cannot do that sade against the forces of the Devil and of history, and far exceeds what the For- and then for 1 day dress up and pose as the antination. The principal obsession of est Service just came out with today in an environmentalist. authoritarian politics is to suppress history and those who could modify it, postulating terms of its preferred plan. The fact is you will not get away an unchangeable and superior reality, God, In fact, what it is, the Forest Service with it. You will not do well on Earth fatherland, family, to which one owes loy- preferred plan, after going through the Day. and you certainly cannot come to alty. planning documents and how to sustain the well using the Republican Environ- What is paradoxical about this ideological this forest for future generations and mental Task Force to provide you framework is that it excuses a repression continue to be able to timber it, is 172 cover, when the average environmental that, in fact, is never admitted by official million board feet less than the 418 vote of the members of that task force channels. Memory of the suffering must sur- that the gentleman from Louisiana vive in gossip, in rumor, in the whispering of is only 18 percent. That is the average [Mr. LIVINGSTON] is talking about. That what they did, and even in official threats, vote. Think of how low you had to is because the rider is proposed to cir- but at the same time, in each concrete case, start at the top to get down to there. in each undeniable and undocumented case, cumvent the public planning process, with damaged teeth, genitals, and ribs, in the public input into this process, and The people will judge you by what spite of each relative’s identification, in have the legislation dictate that cut- you do and not what you say, and what spite of the cries of pain, the truth of the vi- ting no matter whether it ruins the you have done so far to lead the most olence is denied. The people are punished, forest or not. comprehensive assault on environ- but in the long run the relationship is made They say they are green, they say mental protection. The American peo- benevolently and paternally innocent, trans- they honor the environment, they say ple hold these values dear. They hold lating it into terms that are almost familial they want to protect it, but do not look the protection of our air and our water and intimate: expulsion and exclusion of the at what they say, look at what they do. to be very important. They will not wayward, the recalcitrant, the disturbers of public order; reintegration, of the misguided This is another example. The law does give it away to a 1-day masquerade on and the repentant. Neo-colonial fascism not do what they say. In fact, it is very Earth Day by the same forces who have takes the bourgeois dream to its totalitarian detrimental in this case to one of our gutted the essential environmental culmination. prized national forests. protection laws of this Nation. H3626 CONGRESSIONAL RECORD — HOUSE April 18, 1996 CONGRESS ATTEMPTS TO COMBAT causes to something that would kill This chart right here shows the toll SCOURGE OF ILLICIT DRUGS 10,000 people in this country, many, of drug abuse’s estimated cost in the The SPEAKER pro tempore. Under many of them our youth, our college United States. The cost of illness is the Speaker’s announced policy of May students, our high school students and over $8 billion. The cost of death is 12, 1995, the gentleman from Illinois yes, even some of our junior high stu- over $3.4 billion, if you can put a price [Mr. HASTERT] is recognized for 60 min- dents. One hundred thousand deaths on death. The cost of AIDS, $6.3 billion, utes as the designee of the majority because of some unseen, unknown cul- AIDS that people get through use of in- leader. prit, $300 billion in the 1990’s alone, the travenous needles and passing those Mr. HASTERT. Mr. Speaker, first I cost and the deaths that have resulted needles around from drug addict to yield to the gentleman from Penn- by this phenomenon. drug addict. And the direct medical sylvania [Mr. CLINGER], the distin- What is the phenomenon? It is drugs, costs in this country are $3.2 billion. guished chairman of the Committee on it is speed, it is crack, it is cocaine, it But the big cost is crimes and mis- Government Reform and Oversight. is heroin. Where does it come from? demeanors to the American people be- Mr. CLINGER. I thank the gen- Why is it here? Those questions are cause of drug use is over $46 billion. tleman very much for yielding to me, pretty relevant, especially if you are a Now, if you want to count all the vic- and I would just, No. 1, commend him family across this country that has had tims of crime and people who have been for holding this special order, and the a child involved in drugs or a death in assaulted and people who have been gentleman from New Hampshire [Mr. your family because of drugs, or you beaten up, then you can move this cost ZELIFF] and the gentleman from Indi- have had your home burglarized or of nearly $66.7 billion probably up to ana [Mr. SOUDER]. You are three of the your person held up because some drug $97 billion. It depends on the account- four Members who participated in what addict had to get money to get a fix. ing method you use. I consider to be perhaps the most sig- Then you are drawn into this whole But if we are going to do something nificant and important congressional idea of where drugs come from and why and impact upon the value and quality delegation of this year, certainly in they exist and what is the whole issue of this life this country is going to terms of the work of the Committee on and mechanics that move drugs from have, then we are going to have to Government Reform and Oversight. South American countries and south- start doing something about one of the This was an enormously important and east Asian countries into our borders. main reasons that this problem exists. If you live in a neighborhood that very, very revealing, I think I might Now, when you start to look at what you are imperiled to go out at night be- say, congressional delegation. the costs are to the American people cause you are afraid you might be You visited five countries, and each and look at what the costs are to what mugged, held up, or somebody is on one of them for a very specific purpose. this Congress is trying to do, let us crack cocaine or on heroin and you feel In Mexico, because 70 to 80 percent of take a look. Some $13.2 billion ex- that you or your family may be ac- the drugs that enter this country come pended. Where does it go? State and costed, the reason is that we have across that border, I think it is some- local assistance, almost 10 percent. drugs in this country. We are the de- thing that we need to be focused on. Other law enforcement, the FBI, DEA, mand source for literally billions and How can we do a better job? What are others, about 2.5 percent. The research billions and billions of dollars of drug the problems that we are facing there, and development to find out what trade. and how must we deal with them? drugs do is another 4 percent. Drug You visited Panama, which has In our emergency rooms every year, abuse prevention, which is a good pro- major money laundering problems, and in our hospitals, and we have just gram and certainly gets into our neigh- shares an uncontrolled jungle border moved a health care bill through here, borhoods and schools, it is almost 14 with Columbia. And of course Colom- but clearly 500,000 emergency room in- percent. Drug abuse and treatment for bia, which is the world capital, if you cidents in this country alone come those people who have been into drugs will, in terms of the supply of cocaine from drug abuse. There are 250,000 and need to be led back and hopefully worldwide; Bolivia, which is the second Americans serving time in our prisons, on a path that will rehabilitate them, largest producer of cocaine after Co- both in our Federal prisons and in our although it does not have very good re- lumbia; and Peru, which produces two- State prisons, because of drug law vio- sults, 20 percent of our budget. Inter- thirds of the world’s supply of coca lations. Unfortunately, drug use is in- diction of drugs, where we go out and leaf. I know, because the gentleman volved in at least one-third of all our try to catch the drugs moving through from Illinois has briefed me very thor- homicides and assaults and property other countries, coming into this coun- oughly, as has the gentleman from New crimes. try, and drugs moving in this country, Hampshire, on this trip. b 1600 I must tell you I have been dismayed is roughly under 10 percent of our and really disappointed at some of the Now, something that would cause, budget. Regulatory and compliance 0.38 media coverage of this trip. If we in- and we do not have the exact numbers percent, investigations, 13 percent, deed are going to assume that no con- because it is pretty fluctuating, but international involvement, 2.3 percent. gressional travel has any merit, and something that would cost between $70 Now, remember, almost 90 percent of that is what seems to me that the press and $90 billion to the people in this the drugs coming into the United is deeming in this case, this was an in- country every year, the net, and that States of America come from other credibly active, vigorous CODEL. You cost piles up day in and day out, that countries. Our international involve- did not engage in, quote, junketeering. is pretty important. ment is 2.3 percent. Prosecution, it I think it is fair to say you were all ex- I think it is pretty important for this passes a lot of money, it takes prosecu- hausted by the time this trip was over, Congress, who initiated a pretty strong tors and district attorneys and States because it was very intense, very fo- drug policy in the 1980’s and has gone attorneys to prosecute drug thefts and cused and extraordinarily productive. from a Just Say No policy to ‘‘just say drug crimes, 6.4 percent every year. I look forward to the report that will nothing’’ government over the last few Corrections, the costs that we have in come out of this matter, and I look for- years, I think we need to examine our- this country to keep people in prisons, ward to perusing the results of this selves. We need to examine where the is 15.5 percent. Intelligence, to find out special order. I again commend the cause of this problem is, examine our on the street where the drugs are com- gentleman from Illinois [Mr. HASTERT] problems in trying to stop the demand ing from, who is selling them, where it as a leader of the delegation for the in this country, but, most of all, we is being put together, where drugs are very excellent work that was done on need to find out where this comes from manufactured, are 2.3 percent. And the behalf of the Committee on Govern- and stop the growth of coca leaf, the State and local assistance we give to ment Reform and Oversight. growth of heroin poppies, the manufac- cities and States is nearly 10 percent. Mr. HASTERT. I thank the gen- ture of speed or methamphetamines. So that is almost $3.5 billion that every tleman from Pennsylvania. That is what this endeavor was about. State and municipality has to dole out One of the things that we wanted to Where does this come from? What do to find the reason, to find the solu- look at is what are the contributing we do? How do we find out about it? tions. April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3627 Now, why did we take this trip? It is pledged to us they will begin to work of the U.S. Coast Guard. What a great a good question. I think we need to anon in the next year. job they have done. swer it. Because in this country, when Mr. ZELIFF. I would just like to One other thing is we are working we look at Mexico, and if we would first, Mr. HASTERT, thank you for the very closely with Barry McCaffrey, the take Mexico as a V or triangle and look leadership that you provided to this ef- new drug czar, former 4-star general in over here in Mexico, we have four huge fort. Our overall leadership asked us to the Army, doing a great job in putting drug cartels. Coming up through the put this thing together. We have this thing together. area of the Gulf State area, it comes worked on this effort now for a year We are just very encouraged that we into southern Texas. We have the prob- and a half on the drug issue, and start- are starting to get our arms around lem of drugs coming up through the ed back in March 9, 1995. this thing, but we cannot do it from cartel zone in Sonora, which is along Before I get into what we have done Washington, DC. We have got to get our Arizona border. We have drugs as a committee, I would just like to out on the front lines and see what is coming up along the Tijuana cartel mention one other thing in Mexico. As working and what is not working. that comes up into California. We have you know, the Clinton administration Manchester, NH—Peter Favreau, the drugs coming up into the Juarez area, just certified Mexico and decertified chief of police in Manchester, NH, had it goes into El Paso, TX, and up Colombia. So one of the things we Operation Street Sweeper. He recog- through that area. looked at down there and some of the nized how serious this issue was. He So we have four huge cartels. Where things that were brought out, the called in help from the Attorney Gen- are they? Not United States cartels, President of Mexico has made a major eral’s office. We also got help from they are Mexican cartels. So nearly 70 commitment that drugs and crime are Federal, State, and local police forces percent of all drugs that come in, that now their No. 1 issue, their No. 1 that all worked together as a team. are grown in Peru and grown in Colum- threat. I think we are starting to make They are getting crack off the streets. bia and manufactured in Colombia and some progress. We are starting to see They are closing down crack houses. grown in Bolivia, come up either the beginnings of a process. When the They are sending drug sellers to jail, through Colombia or up through the President of Mexico starts to send that getting them off the streets. They are airways and land in those cartel areas signal all the way through they are taking back their streets, taking back their community. We are starting to in Mexico. going to get serious on it, then we are Well, we had a meeting with the starting to turn the corner. see evidence of people starting to wake Mexican Congress, and we stressed to The other thing I would just like to up and realizing the significance of how them that it was important that in mention in addition to certification important this thing is across America, Mexico, we better start doing some- and the President, we talked about across all these countries and through- thing, they better started doing some- NAFTA has an impact here, economic out the world. Mr. HASTERT. Before you stood up, thing, on a cooperative basis. development has an impact. But there I wanted to congratulate the gen- What should be done? Well, we need are many things we looked at through- tleman and his subcommittee work on to have good legislation, and the Mexi- out all these countries. the intervention and looking at the cans understand that, and they are If I can, can I just mention a few oversight. You have the oversight re- stating to do that. So they have money things that the committee has done as sponsibility in the Committee on Gov- laundering legislation so that they can we led up to this trip. ernment Oversight. You have done a start to find the money that comes in We started out with Nancy Reagan very good job. You have set up the these cartels, and they can start to and her effort back in the Reagan ad- premise on this action and this joint trace where it comes from. And it does ministration on ‘‘Just say no.’’ That, of teamwork we are going to do. not just come from Mexico, folks. It course, affects the demand side. We had The first step is, of course, laying out comes from New York, Philadelphia, Judge Robert C. Bonner, former Direc- what the problem is. The second step is Chicago, Los Angeles, and San Fran- tor of the Drug Enforcement Adminis- to take a look at it and try to find cisco. So we can start to stress where tration, testify; Bill Bennett, Co-Direc- some solutions to it. You also were in- that money comes from, because if we tor, Empower America; Hon. Lee strumental in bringing the former am- can take money out of the drug equa- Brown, former Director, National Drug bassador of Colombia with us, and he tion, that is the most important thing Control Policy, testified; Thomas paid his own way to be a part of this, to the drug traffickers and the drug Hedrick, vice chairman of the Partner- to try to solve the problem; former am- pushers and the cartels and the ship for a Drug-Free America; Mr. bassador Morris Busby, who did an in- Mafioso and the street gangs that all James Copple, national director of valuable service trying to lay out what make their money off drug trafficking. CADCA; Mr. Robert Heard, director of the predicate was and trying to move If we can take that money away, find program services, Texas War on Drugs; through this whole process. the way that they launder that money Adm. Paul Yost, former Commandant, But I commend the gentleman, and we can begin to solve the problem. We U.S. Coast Guard under the Reagan and you certainly have done a good job. can begin to deny those people from Bush administrations. But we have a lot of work to do. the end results, from all the trouble We have had several hearings with Mr. ZELIFF. We sure do. I would they get in with drugs in the first Dr. Brown. I traveled to Boston with throw out one other thing you have place. him. We went into Framingham Prison been a big help with. We started a con- We also need to have wiretap author- for Women. That certainly is a scary gressional breakfast, where we have 40 ity so those criminals who do the drug effort, where we talked to several to 50 Members of Congress working deals, especially in Mexico, that Mex- women who hit the bottom due to drug with CHARLIE RANGEL, both sides of the ico has the ability to tap in and find abuse and alcohol abuse. We have aisle, from New York. He has been a out who they are and what their deals learned a lot from that as well. big leader in this effort as well. We are. We went into treatment centers, and have had meetings with Louis Freeh, We need to have anticospiracy legis- we have done a trip with this sub- Director of the FBI; Tom Constantine, lation and antiorganized crime and committee with the Coast Guard in the DEA Administrator. We have great re- asset forfeiture. If you find a drug car- interdiction zones. If you want to use spect for both of those gentleman. tel or pusher that is moving drugs up an example of a narco democracy Now, Barry McCaffrey most recently. into the United States, so that they where the country has lost control, We are going to keep our Members up- can take their planes and automobiles take a look at St. Kitts. That is what dated. There was a lot of concern and a and haciendas and those things away, the problem here is. Mexico is starting lot of commitment. I thank the gen- deny them the tools that they use to to realize if they do not get serious, tleman. move drugs into the United States. they can lose control of their country. Mr. HASTERT. I would like to wrap And we need to aggressively pursue the The same thing with Peru and Bolivia up a little bit what we did and saw in naroctraffickers. and other countries we visited. Mexico. We have done five countries. I These are things we stressed to the I would like to also just, if I would, would like to yield some time to the Mexican Congress and things they mention Bob Kramek, the Commander gentleman from Indiana first. H3628 CONGRESSIONAL RECORD — HOUSE April 18, 1996 Mr. SOUDER. Mr. Speaker, I briefly drug policy, and two farcical abbre- must have education and then we must wanted to say here at the beginning, viated hearing were held. Nothing was have treatment. But it must be a four- too, I wanted to thank Mr. ZELIFF, the really held, until Mr. ZELIFF took over pronged approach, and we are losing chairman of the subcommittee, for this position. Mr. CLINGER and Mr. the war. raising the issue of the drug war and HASTERT have also shown their leader- These people met with the leaders the battle that we need to do, because ship. and other people who are involved in we had abandoned it for some time, and I would say that required reading, this war. And I must take just a say what a privilege it has been to and I have seen on the floor for this, minute, too, if I may, to tell the Mem- work on his subcommittee, to do the this committee is taking this very seri- bers of Congress, Mr. Speaker, and the hearings over time, and to initiate this ously, and they have produced a docu- American people, that we have some trip. ment that every American parent, dedicated people out there. I am still We really had a strong team. Mr. every Member of Congress, and every itching from bug bites. Our staff, al- MICA, who had experience as a staffer, member of the media should look at, most all the staff got sick. The DEA as an international businessman, and and this details the epidemic drug situ- agent that traveled with us had to al- on the plane we could work together, ation in this country. It is not just most be hospitalized by going into and in your skill as a Representative of with adults, it is with our children. some of these areas, getting sick and leadership and for them to know that Every single drug, marijuana, cocaine, bitten, but we came back. The good they had the subcommittee chairman heroin, designer drugs, are absolutely news is we came back. of multiple committees. just going off the charts. This is a na- The other news that everyone should It was amazing as we went into some tional tragedy. We have 70 percent of know is that we have hundreds of dedi- of these countries, they heard of Mr. the people in our jails and in our pris- cated Americans, our ambassadors, our ZELIFF. They said, ‘‘Oh, yes, he is the ons that are overloaded with people Department of Defense employees, person who has brought drugs back in who are convicted of crimes that have these young men and women who are front.’’ I heard several leaders of those some drug relation to it. out there in the jungles working with countries take them aside. Your We have an epidemic in this country these people that are dedicated young smoothness when we went into Mexico, and no one, except some of these Mem- Americans, committed to this fight. it was a difficult situation. They had bers, is paying any attention. And The Department of State employees in just had the immigration border inci- these Members risked their lives and the narcotics assistance unit. dents that we were there on a narcotics also time with their families to go on I am one of the biggest critics of AID, mission, but in fact it turned into a this visit to see firsthand. The first Agency for International Development, very touchy diplomatic mission as well codel in my memory in the last 3 or 4 and a lot of their programs was waste- in a lot of these countries. years, and certainly in this administra- ful, but down in these countries they I want to commend the gentleman as tion. are trying to work with crop substi- to how he smoothly handled that as we Then, also in required reading, I ask tution and other programs where we met with the Members of Congress everyone to get a copy of this trip re- should be putting our emphasis, not on there for dinners and President Zedillo port, Mr. Speaker and my colleagues. giveaway programs where we can make and the foreign minister, because these This is an unclassified report. I know a difference. turned, in Colombia and other coun- the media could not care less about it, And the DEA people. I met a DEA tries we will talk about here, and par- but it details what is going on in the agent who has been in DEA for 12 ticularly in Mexico, into potentially drug war and where we are. We have years, 6 years in South America, his explosive international incidents that the report that details the failure, we name is Bill, and he is a committed we were able to help facilitate. have the report that details this dele- person. And I cannot single out all of gation’s travel to these countries and them, but we have dozens of these peo- b 1615 why they traveled to Bolivia, to Peru, ple who are out there in the jungle Mr. HASTERT. I thank the gen- to Colombia, to Panama, and to Mex- working every day trying to stop this tleman for his contribution. I would ico. narcotics trafficking, when sometimes also like to recognize our good friend First of all, in Bolivia and Peru, they the administration or Congress under- and fellow traveler, Mr. MICA, from have nearly 100 percent of the cocaine mines their efforts. So there are Amer- Florida. being produced. If my colleagues want ican heroes, our Customs people and in- Mr. MICA. Well, I want to, first of to hear some shocking news, we telligence agency people, that are also all, Mr. Speaker, thank Mr. HASTERT learned in Colombia, which was origi- involved and should be recognized. for his leadership. When this trip was nally a transit zone, even though now Mr. HASTERT. I thank the gen- originally planned, about 11 people in- they are producing some cocaine, but tleman. dicated they were going to go; and as it every American, every Congressman, Mr. MICA. So that is the problem, turned out, Mr. HASTERT, Mr. SOUDER, and the Speaker of the House should be that is where we are, and I wanted to and Mr. ZELIFF, and myself were the concerned about this, there are 10,000 shed that background of what we are only Members that went. hectares of poppies being grown there. trying to do and what some people are I want the Speaker and my col- Heroin will be on the streets of this doing out there in the field. leagues to know that, and listen to country in tremendous amounts. Mr. HASTERT. I thank the gen- this, despite cables indicating 22 deaths What is another concern, we learned tleman. What I want to do now is take from terrorist bombings on April 10, from some agents that we met with a few minutes and sort of let the that is just before we left, in Columbia, that for the first time in Peru they Speaker, and the Members of Congress and the discovery of dynamite at the found some cultivation of poppies. So know exactly what we did, where we Colombia Supreme Court, also on April we can see that we have a long way to went, what we found during that period 10, codel members stood by their com- go. of time, and we will try to move mitment, and those who stood by their Part of the history of how we got in through that as quickly as possible and commitment are on the floor. this situation is the administration then come up with wind-up remarks on This trip is a culmination of some of shifted most of its resources to drug this. the efforts that I and a few others, treatment, which is at the far end. As I started out and talked about CHARLIE RANGEL, BILL RICHARDSON, on Anyone who looks at the problem of Mexico, I think the key thing is in our the other side of the aisle, have at- drugs in this country knows that we meetings with the President of Mexico tempted to get the attention of this ad- must have a four-pronged approach. It and with the Ambassador, Mr. Jim ministration and this Congress on this must be, first of all, interdiction, Jones, a former Member of Congress, issue. In the last Congress I had over which is dramatically decreased in that we found out in discussions with 100 Members sign a letter to the former these countries. We must have enforce- the President, that he thinks that the Democratic chairman of the Govern- ment. In this administration the num- drug problem, the trafficking problem ment Operations Committee asking for ber of prosecutions has dropped dra- up through Mexico is really Mexico’s an oversight hearing on our national matically in drug prosecution. We number one problem, because it is a April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3629 false indicator on their economy. The But Panama has no military. It has b 1630 money laundering, which only forces not been eligible for the military sales But we met with 2 stars in their drug legitimate people out of business, and systems. And in the last couple of days war, who have done an incredible job, the tremendous amount of drugs that we have passed a piece of legislation in and one is the national police chief, move up through Mexico really cause this Congress to allow the Ambassador Mr. Serrano. He told us that they have violence and shooting and some guer- to be able to use some of that money to lost over 3,000 officers in this war. rilla activity. work on the counternarcotics in Pan- As you know, the drug cartels have For instance, in the last few years, ama. Panama can and will be likely the killed judicial members, they have deaths in Mexico because of this grew gateway for the overtake of the narcos killed members of congress, they have 145 percent, and there were over 2,000 if we do not get something done there killed hundreds, literally thousands, of speed or what we call speed or meth- and if we do not beef up our activities. police officers in their struggle. amphetamine-related deaths between Now, people talk about, well, how We also had an opportunity to meet 1991 and 1992, even in the borders along come we are sending money to Panama with defense minister and commander Mexico, in Los Angeles, and San Diego, or Mexico. We are not sending money, of the Colombian Armed Forces Admi- and San Francisco alone. we are sending people; those people ral Delgado. So we had an opportunity So the incidence of increase and lit- who on the ground can make a dif- to hear firsthand what they are doing, erally trainloads of marijuana, thou- ference. We are sending intelligence of- some of the problems. sands of pounds of cocaine and crack, ficers, members of the DEA, so that I might say that one of the problems and literally thousands of pounds also they can actually get in and find out that we had is in 1994 this administra- of heroin that is moving up through where the source is of the storage, tion reversed its policy on the drug Mexico is not only a United States where the transshipment is, where the shootdown policy. They stopped giving problem, but the Mexican President in manufacturing of these narcotics is, information and intelligence and radar our discussions has admitted it is the and they are doing a good job. But we to the Colombians in the Andean coun- number one problem in Mexico as well. cannot shut that faucet off, because if tries through a liberal interpretation The next place that we stopped was we do shut that faucet off, we will see of one of the attorneys in the adminis- in Panama, and we met with Ambas- a huge increase of infusion in drugs tration. sador Bill Hughes and the new Ambas- added to the drugs that we already As you may know, Members of Con- sador to Colombia and the country have in this country. gress, Mr. TORRICELLI, Mr. RANGEL, team there. Then we met with the I think the next place that—I know others on the Republican side, Mr. GIL- SOUTHCOM, which is the U.S. com- the next place that we went was Co- MAN, raised extreme concerns with the mand that is out of Panama City, that lombia, and I would like to have Mr. President, the vice president, the na- is literally the source that we can send MICA from Florida give you a little bit tional security adviser. Congress did our AWAC planes down to Colombia of a review on what we found in Colom- amend this, and there have been some and off the Andes area in Peru and Bo- bia. changes. But some damage was done in livia and we can actually see foreign Mr. MICA. I thank the gentleman for the program. flights coming up and the flights that yielding and, again, we wanted to trace The Colombians do not shoot the deliver and drop—pick up the cocaine the trail of illegal narcotics coming planes down out of the skies with drug or coca paste and bring them up north into this country. As you know, Colom- traffickers, but they do shoot them either into Colombia or then into Mex- bia traditionally has been one of the when they reach the ground. One of the ico to be processed. That is a very sen- major transit areas. We have had a pro- problems that we have now is that sitive place. gram to eliminate some of the king- some of the shipments are being But Panama itself has a problem be- pins, and the Colombians have been shipped around Colombia directly into cause they are in a very precarious po- very aggressively pursued, destroying Mexico, and Mexico is now one of the sition and a vulnerable position. The both the Cali and the Medellin cartels. greatest transshipment areas. city on the north coast, on the north Another problem that we have are In Colombia, under some pretty part of the Panama Canal that empties these small cocaine producers. With heavy security I might add, the Con- into the Atlantic Ocean, has the free the drug cartels being destroyed, we gressmen and the other members who trade zone in that area, has virtually now have small producers. And they traveled with us of our staff met with been overtaken by Colombians, and lit- discussed that problem. They do need our Ambassador Myles Ferchette, who erally hundreds of tons or pounds of co- our assistance, continued assistance in again I commend on his efforts, his in- caine and coca leaf and coca paste this war, additional equipment and credible living conditions; as well as move through that area; and they un- supplies. There are people there that Defense Minister Esguerra, and Com- derstand a country without a military, are willing to fight, and they have seen mander of Armed Forces Delgado. with just a police force, that they have how it has destroyed their country. to do a better job of cracking down on As I mentioned, too, nearly several So those are a couple of the things that. dozen police officers had been killed that we saw in Colombia. Also, Panama has over 400,000 shell just prior to our arriving, and I under- One other thing that I must mention companies or paper companies that are stand another several dozen people again is the alarming news of 10,000 used as fronts to launder illegal drug have been killed in incidents down hectares of poppy growing, and they profits. In talking with the Vice Presi- there just the past few days, plus other are now producing heroin there. And as dent of Panama, he admitted this and terrorist activities. So you can imagine you know, they have a great flower said this is one of the most important the conditions that our representatives production, probably the flower capital things that they need to do and they and Ambassadors are under. of the world, and poppy is another need to try to control. They know that It was necessary for this tight secu- flower. Colombia is a primary drug transit rity to meet in our embassy. We met So they have an unbelievable capac- zone. there and conversed with our DEA ity to produce a new, inexpensive, ille- The United States is currently in the agents and others who were involved in gal narcotic, and it is flooding our process of turning over military bases the various projects. schools and our communities and our to the Panamanians, and that is a sen- Two of the Colombian leaders, and I society, and we will probably see even sitive thing to the United States. I must say that there are questions sur- more of it. think Howard Air Force Base, where rounding some of the drug relation- So those are some of the folks that we base our P–3’s and our helicopters, ships to the current President of Co- we met with, some of the heroes I and is the repair base for many of the lombia. There are 109 members, I un- talked about, and some of the leaders operations in South America, was very derstand, of the Colombia’s Congress, in Colombia who are helping in our ef- important to the United States in drug over 100 members of the Colombian fort. control. So that is something else the Congress that may have some prob- Mr. HASTERT. I thank the gen- United States has to deal with in the lems, and there are some investiga- tleman from Florida. We also want to next couple of years. tions going on there. mention that in our time in Mexico, we H3630 CONGRESSIONAL RECORD — HOUSE April 18, 1996 were joined by Senator COVERDELL of You could also see that they were Only two times do you need to use Georgia, who also has taken, in the hedging their bets, and some places un- the crack cocaine, the pictures that other body, a great interest in this derneath the banana plants you can see Mr. SOUDER showed us, and a kid is issue. the coca. But they were working to hooked for life, and what an expense, Now I would like to yield some time eradicate that. They passed tougher what a waste of human life, what a to our good friend from Indiana, who laws. waste of the human vitality that we has done a great deal of work on this Then they took us back in after we have in this country and the potential narcotics issue, Mr. MARK SOUDER. had had lunch. They landed us in heli- that every kid has in this country to be Mr. SOUDER. Thank you very much copters. We took four-wheel-drives. We a better person, to make a living, to for yielding. went back down dirt roads. The day be- raise a family and to be an American. I want to first just sketch a little bit fore, they had a tip, and they took So that is really the issue there, and, of the problem. The United States is down a primitive lab. Mr. SOUDER, we really appreciate the basically up here in relationship to this Here what you see is the lab where work you have done on this. map, with Mexico and Panama and they are turning it into paste. Here you Now I would like to yield to the gen- Central America coming down into Co- see we got to witness them blowing up tleman who really has been at the crux lombia, Peru and Bolivia. It does not a lab, watching it burn. This is very of this whole issue, driving it forward take a genius to figure out what is dark because it is a jungle. It is the lit- for a number of years and working on going on here. eral Amazon jungle. You cannot see it his committee to bring this issue for- One hundred percent of the cocaine from an airplane overhead. They find ward, and certainly a great American, coming in from outside the United six to eight of these a day that they de- somebody that we have all looked up to States is coming from here. Roughly 60 stroy in the jungle that these troops on this issue, Mr. ZELIFF of New Hamp- percent is now coming from Peru, are going through. shire. which we will hear more about in a Here you see leaf that has been Mr. ZELIFF. I feel awfully good that minute. About 30 percent of the growth pulled up, green leaf that is planted. as we have come back and renewed our is in Bolivia, with some in Colombia. Later on in the day we stopped at a commitment, we are pleased to have Not only that, it is coming from basi- local market, walked in and there the the opportunity to talk to Members of cally two places just on the other side coca leaf was for sale in those markets, the House, both the Senate and the of the Andes in Peru and in Bolivia. not converted to cocaine where we House, talking to Barry McCaffrey, the Bolivia has been growing; Peru has were. drug czar, and hope to visit with the Here you see the coca field that is been slightly declining. President, as well, and get his commit- feeding into this particular lab and the Furthermore, we are seeing more of ment. soldiers destroying it. the processing. As the pressure goes on In the back part of this field there We need to renew the commitment to in Colombia, the processing starts to was a small area where the little coca the drug war because it is vital, it is move to these two countries in these plants were planted that would then the most important single thing that two valleys. Not surprisingly, as you continue to feed this field. we have facing us. Crime, drugs, and put the pressure on, and this is a chart In my home area in Fort Wayne, IN, terrorism are all one, and it is costing that shows some of the success in the there are kids dying. You do not see us far too much in terms of the next Chapare region of Bolivia, that they the blood on the coca plants, but there generation. have had. You can see that they seized are kids dying; they are shooting each I just would like to talk a little bit aircraft, they have seized coca leaf, other; they are destroying each other about Peru. Saturday morning we met they hav seized coca-based paste and because of the coca plants that are with the President of Peru, quite a base. They have eradicated crops. They coming in from these countries. guy; our Ambassador Adams in the have made a major effort in this zone What they are telling us, however, is country team in Peru. We met with to try to crack down. also it is not all our problems, you can them all day Saturday afternoon and If you look at this third chart, what see their troops here, you can see their evening. What a guy; the President of has happened, and this shows the Mex- airplane flights and crops being de- Peru is totally committed. Two-thirds ico through Central American areas we stroyed. We listened to their govern- of the world’s cocaine is produced in were in, as they put the pressure in the ments. coca leaf form right here, and this air, it starts to move to maritime. It is their police that are dying as we photo right here, these are the coca What we were in was literally the heard in Colombia how many are fields, this is a plant, and these are the jungle, the rivers areas that were feed- dying. And they are saying, you know, coca leaves themselves. But the field is ing into the Amazon River Basin. It we would not have this problem if you two-thirds of the world’s cocaine, pro- was very disturbing, quite frankly, as were not consuming it all in your coun- duced in Peru. somebody who, in spite of the earlier try, too, and you are bringing the prob- Now, what has happened with his comments, does care about the envi- lems into our country. It is twofold. We policies, frankly, it is called a very ef- ronment, and I am a Republican; it was need to stop the interdiction, we need fective shootdown policy. If they have very disturbing to see how the rivers to put more money into these efforts, intelligence that a plane is loaded with were being killed by the chemicals because our kids and people are dying cocaine, they will address that plane, from the cocaine labs and what that in our country, and back up the people send two fighters up, have the plane be was doing to the wildlife. there, and at the same time we need to warned, have them bring it down. If We hear a lot of times about cutting work at the demand reduction on our they do not come down, they shoot it down the Amazon rainforest, and we side. down. get many letters from schools. But we Mr. HASTERT. I appreciate the gen- Now, what happens is that the 50 per- could see it burning in different places, tleman yielding back for a second, but cent pure flights on the air bridge, and and we could see it being cut so they he makes very important points that you got now, you have got in Bolivia, can put cocaine labs in. the reason we are doing this is our chil- you got Peru, Bolivia and Colombia. I want to show, if I can have the pic- dren. Kids in the streets of the United The air bridge goes through all three of tures now, what we did in Bolivia. States and our neighborhoods, both those countries in terms of bringing After we had our country team brief- middle-class neighborhoods, upper- the product up. So we basically have ing, we flew up in a C–130 Vietnam-era class neighborhoods, lower-class neigh- closed down 50 percent fewer flights in transport plane up into the Chapare re- borhoods, are being effected by this. the air bridge and are now forced to do gion to meet with the Puma powers, If a kid uses crack cocaine, he only alternate routes, either into Brazil or the soldiers who are busy working in has to use it twice, and he gives up his boat by boat, up along the tributaries the fields. We did a helicopter, a Huey free will for the rest of his life. Now of the Amazon. We now have to ship helicopter, overflight where you can that is something that is pretty impor- policies and resources. There are small see they have had success in converting tant. I think parents and teachers and boats, small craft, and we need now to things into banana production, pine- community leaders need to understand make sure we can fight the fight on the apple production and others. that. water as well. April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3631 The pilots before were making $25,000 again with either ether, diesel fuel, or wanted to make another couple of com- a flight to fly a planeload of cocaine. kerosene and then washed again. At ments. Now, because of the shootdown policy, this point it becomes coca base. When we saw what was going on, the it has grown up to $200,000 a flight. And Then the base is bundled and flown or results of President Fujimori’s shoot- what is happening, by keeping the pres- transported into clandestine air strips down policy in Peru, what happens is sure on, the farmers have abandoned 20 in Colombia. It is then transported to that cocaine piles up there and now to 40 percent of the coca fields in Peru. processing laboratories in the jungles. they are trying to take it out in the Peru and the United States have a deli- It then undergoes another chemical river system. So another country cate window of opportunity, while process before it becomes cocaine hy- which has been involved somewhat un- prices of coca are down and the risk of drochloride or powdered cocaine. wittingly is out in the Amazon Basin of production is high, to get farmers out It is packaged into kilos, kilo bags, Brazil, and so many of those flights and start working with alternative weighing a little bit more than 2 now, because they cannot fly up crops. And this is true of Bolivia as pounds. The farmer gets about $2,500 a through Peru and through Colombia to well. hectare, and a hectare is 21⁄2 acres, so get into Colombia, now what they do is One of the things that I have to say he does not get much for growing the they go around through Brazil. That is is I was pretty biased, based on the crop. Then it goes into Bogota as proc- a real job for our ambassadorial corps GAO reports that we read, and we were essed cocaine, worth $500 a kilo. Then and others, to make Brazil aware of the told that programs and source coun- that is transported either to New York, problem that they have with drug traf- tries eradication programs were badly Miami, or Manchester or other cities fickers moving that cocaine supply out managed and were not effective. Well, around the United States, and it could of Peru and out of Bolivia and on up this may have been true a few years reach as much as $20,000 a kilo. into Peru through the river system and There is so much money in it. What ago, but I believe, and I think all of us ultimately through airways. is happening here in each of these agree, that we are starting to see some Mr. SOUDER. If the gentleman will countries—President Fujimori of Peru, signs, some light at the end of the tun- yield, I want to make one additional the President of Mexico, a lot of the nel, where programs are effective. point on the pictures the gentleman areas in the Caribbean, and I want to Mr. HASTERT. I think an important was just talking about. To give you the mention the great Governor of Puerto point that you started to bring out is scale of why the best drug prevention Rico and some of the fine work he has that not only did the Peruvian program is interdiction and as we get done—but what happens here is they campesinos or farmers start to aban- into some of the things we need to do, are afraid of losing control of their don their fields, but the price of co- that third picture, that is on fire, and countries, losing control of democracy, caine in Peru went down tenfold, and the fourth picture. We took down losing control to drug traffickers, and all of a sudden it was so cheap that around 100 crack houses in Fort Wayne frankly the drug traffickers are the last year. That is how great our prob- they could not afford to grow other scum of the Earth. We have got to lem is in a city the size of 300,000, solid anymore. wake up. So I think that is an important issue Let me just read a note. I met with roughly, in the metro area. That little of the whole supply and demand, but it the Governor of Puerto Rico yesterday, fire there would be the biggest drug was directly because of Fujimora’s ac- who is leading a valiant effort. We are bust in the history of Fort Wayne, and tions. going to be doing two more hearings, they can make it in those little labs, Mr. SOUDER. He is a real hero in our one in Puerto Rico in July and one in starting for $500. We destroyed the big- books. I think we are all very im- the district of the gentleman from In- gest drug bust in the history of Fort pressed when we left, and we told him diana [Mr. SOUDER], in Fort Wayne, Wayne. If we can get it there and re- that. and one in the district of the gen- duce the supply, it has a major impact And I think the other thing that we tleman from Illinois [Mr. HASTERT], in on our cities. have to look at, an AID program and Chicago that day if we can work it out. Mr. ZELIFF. But if the gentleman foreign policy programs need to be We need to get on top of it. will yield, it has got to be balanced. We geared toward economic development, What he said: have got to do education, prevention. infrastructure improvements. And I want to say a few words about Puerto We have got to do treatment, interdic- what is happening here is that if you Rico. Puerto Rico, along with Mexico, is a tion. We have got to do source country leave it to their devices in working major transshipment point for Latin Ameri- eradication programs. If we do not, if with the jungle, that is where the ter- ca’s illegal drug cartels. Eighty percent of we skip 3 or 4 of these pieces, then we rorism is. If the towns and the regular all the drugs that get into Puerto Rico end lose. We have got to do it in a balanced government give up the area, then we up in the continental U.S. program across the board. lose the war. There is no customs. It goes right Mr. HASTERT. I yield to the gen- Let me just trace a very interesting through. tleman from Florida. article in the Union Leader back in But Puerto Rico is ahead of the curve Mr. MICA. I want to follow up on February 26, an article, and I give him under the Governor’s leadership. In 3 years, what the gentleman had said, Mr. a lot of credit for bringing this out, and he has shown what a good Governor can do. Speaker. This strategy has to start He has implemented an effective prevention right at the top. It has to start out at I believe that they are committed to and law enforcement strategy, and rescued this in a very strong way, Sissy Taylor, the White House. 23,000 public housing units. He has used the Listen to this. The President has ‘‘Cocaine’s Deadly Journey, Trip to National Guard effectively, and brought 16 New Hampshire Long and Costly.’’ Just different State agencies together to make really hardly talked about the issue for go through a little bit of how it all Puerto Rico more secure. the last 3 years. Of the seven major ad- works. Governor Rosello’s model is key, because dresses to the Nation in 1993 and 1994, other Governors and leaders have to realize President Clinton mentioned drugs in b 1645 that we are now confronting what is clearly none of those addresses. In 1993, he I will go through a little bit of how it a national security threat that has gotten gave 1,628 statements, addresses and into every State in our Nation. all works. Coca leaves are bundled. I also hope that the Governor’s Conference interviews, but mentioned drugs a Again you have the field. Coca leaves in Puerto Rico this July will focus on the total of 13 times. In 1994 there were are bundled into bags. The bags are leadership that this Governor has shown. But 1,742 presidential statements and he re- brought to pits where the processing more—the drug issue must be front and cen- ferred to the drug problem 11 times. begins. ter with all of us. This has to be a national priority This is the pit. This is about 4- by 12- If Congress, this President and all of from the administration. We have a foot long. The bottom is lined with a the Governors of the United States new drug czar. He has been great to filtering canvas. They dump the leaves make this number one, if we can put a work with so far. We have a great in, add lime and kerosene or diesel man on the Moon, we can win the war working relationship with him. As the fuel, sulfuric acid, then grind them to- on drugs. other Members have seen and as I saw, gether with the leaves. A paste is then Mr. HASTERT. I thank the gen- we need the cooperation of many formed and dried and then washed tleman from New Hampshire. I just agents, we need the cooperation of H3632 CONGRESSIONAL RECORD — HOUSE April 18, 1996 many committees of Congress in both just said nothing, and we need to work 15 years, and now stands at a 40-year bodies and everyone working in the and develop that as a huge issue in this low. It buys less groceries. It buys less same direction. country. Parents, and as the gentleman gasoline. It buys less clothes for the We also must look at how we are from New Hampshire [Mr. ZELIFF] said, children of these hard working families spending these resources, and when you everybody has to work together. I am than it has in four decades. see that most of the drug treatment sure we can get the job done, but it has These statistics are particularly and abuse programs, at the very end, to be a country effort. And we have to troubling considering the fact that cor- they are failures. Very few of them work in those countries that produce porate CEO salaries have risen at the have any success rate whatsoever. this, work with their governments, fast clip of 9 percent a year since 1990. Then the international program is 2.34 work with their presidents who are In fact, last year the median compensa- percent, and you dismantle an interdic- willing to work with this country and tion for CEO’s was a staggering $2 mil- tion program at this critical juncture, try to eradicate the supply side of this, lion a year. That’s more than 200 times you are making a mistake as far as as well. the salary of a minimum wage worker. your priorities. It has to be interdic- You can see in these charts it is A recent poll in my home State of tion, enforcement, education, and there there. They are doing it. They are Connecticut shows that a full 80 per- must be treatment also. doing it today. Farmers are planting cent of the people support raising the Mr. ZELIFF. If the gentleman will cocaine seedlings on sides of moun- minimum wage—four out of five Con- yield further, one of the things we are tains, under the brush in Bolivia and necticut residents favor this measure. finding out in Manchester, NH, again I Peru, and we have to help stop that. A New York Times poll reports that 94 cite Peter Favreau, who has done a I yield to the gentleman from Indi- percent of Democrats, 86 percent of great job along with the Federal, ana. Independents, and even 71 percent of State, and local agencies that have Mr. SOUDER. I am not necessarily Republicans support raising the mini- worked with him. But we have worked known as ‘‘Mr. Internationalist.’’ In mum wage to $5.15 an hour. with courageous people in the school fact, I authored with the gentleman Yesterday, a brave group of my Re- systems. You can put a policeman in a from New Hampshire [Mr. ZELIFF] an publican colleagues joined the Demo- school yard but we have to get inside amendment that said unless Mexico cratic call for a vote on this issue. I the schools, work with the kids and be worked harder in this effort, that we congratulate my colleagues for having role models. were going to cut off funding and sup- the courage to challenge Speaker GING- It is not just the President, it is all port. I have been critical of a number RICH’s wrongful opposition to giving of us individually. We have got to get of the trade missions. minimum wage workers a modest raise the media to wake up and pay atten- One thing I have seen, and we did not in pay. But the bottom line is the Re- tion to this. We have got to start talk- shy away from communicating this to publican leadership refuses to bring ing to parents. Parents have to start them, that all the issues that we are this legislation to a vote. It’s all talk talking to their kids. Business people dealing with are related to narcotics in and no action. The Republican leader have to be involved, communities have our country. At the same time we need has said the minimum wage increase to be involved. We have to reconnect to acknowledge that we have leaders will come to this floor over his dead with basic values. If we do not, we are around the world, as you said earlier, body. going to lose big time and we will not who are committed to democracy, who This morning’s Congress Daily re- have anything left. need our support, or we are going to ports Speaker GINGRICH’s latest cynical It is time now, and hopefully with lose the best chance for freedom ploy to stiff working Americans. the leadership of the gentleman from around the world. ‘‘We’re going to look at it,’’ Speaker Illinois [Mr. HASTERT], you might just Mr. HASTERT. In closing, I thank all GINGRICH is quoted as saying, ‘‘There describe what we ultimately want to the gentlemen who have worked on should be hearings.’’ try to do here. We are trying to bring this, the gentleman from New Hamp- Hearings. The revolutionary Repub- it all together to show to everybody shire, Mr. ZELIFF, who has taken the lican leaders just 3 days ago wanted to the importance of this issue, and we lead in committee, our friend from In- rewrite the U.S. Constitution without really appreciate your effort. diana, Mr. SOUDER, and of course my a single hearing. Mr. HASTERT. Reclaiming my time, friend from Florida, Mr. MICA. I thank Hearings. The revolutionary Repub- we have used the word ‘‘balance’’ a the gentlemen. licans last year passed $270 billion in number of times, but this is a balance f Medicare cuts to pay for tax breaks for purely between supply and demand. We their rich political contributors—all have to do our part. We promised those RAISE THE MINIMUM WAGE NOW without a single hearing. And now that Presidents and those Congresses in The SPEAKER pro tempore (Mr. the American people are making their those Central American countries of TAYLOR of North Carolina). Under the voices heard in support of raising the Mexico and Panama, and certainly in Speaker’s announced policy of May 12, minimum wage, Speaker GINGRICH the Andean countries of Colombia and 1995, the gentlewoman from Connecti- promises hearings. Bolivia and Peru, that we would work cut [Ms. DELAURO] is recognized for 60 Talk is cheap, Mr. Speaker, and so is in our country to try to hold down that minutes as the designee of the minor- the minimum wage. So too unfortu- demand. ity leader. nately is the cynical way the Repub- That is partly a result of the govern- Ms. DELAURO. Mr. Speaker, I come lican leadership is treating this modest ment. If we take this chart, we can see tonight to the well to talk about an proposal. Forget the hearings. I call on that from basically 1980 the demand for issue really of great importance for Speaker GINGRICH to allow this House drugs, the kids’ usage of drugs in this working middle-class families in this to vote to raise the minimum wage country had fallen rapidly until 1992. country. now. It is a no-brainer. We should do it All of a sudden, the demand for drugs Mr. Speaker, America needs a raise. I without further delay. and the use of drugs goes up. call on Speaker GINGRICH to take a Mr. Speaker, a livable wage is not ex- This chart here shows exactly what pause from the Republican revolution actly a revolutionary concept, but the happens. Twelfth graders, in 1980 the and allow the people’s House to vote on American people need a raise nonethe- use started to go down. In 1992, it went raising the minimum wage now. less. If we are truly to move people up. Tenth graders, it went up. Eighth The Nation’s minimum wage today is from welfare to work, we must make graders, it went up. I am sure if you a paltry $4.25 an hour. I am proud to work pay. have a chart there, you will find that join with my Democratic colleagues A great American once said, ‘‘No sixth and fourth graders’ use went up and President Clinton to sponsor legis- man can be a good citizen unless he has too. lation to boost this wage to $5.15. It is a wage more than sufficient to cover We have to change from a govern- the least we can do. the bare costs of living . . . so that ment that used to say ‘‘just say no,’’ Hard working American families after his day’s work is done he will and we had good results during that need a break. The minimum wage has have time and energy to bear his share time, to a government which has lately lot 27 percent of its value over the past in the management of the community, April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3633 to help in carrying the general load.’’ comments. It just makes good sense, I just want to read some excerpts Which great American said that? and he is absolutely right. The money from the testimony of the Democrat Theordore Roosevelt, the former Re- that is earned stays in the community. minority leader, Mr. RICHARD GEP- publican President of the United The purchases are made in the commu- HARDT. States. He was not a revolutionary, but nity, and it helps that local economy I would ask unanimous consent to in- he did understand progress. to succeed. clude for the RECORD the statement in Workers who earn the minimum Mr. Speaker, I yield back the balance its entirety. I would like to note that I wage pocket only $8,500 a year. That is of my time. have requested unanimous consent on a less than Members of this Congress MINIMUM WAGE INCREASE BENEFICIAL TO ALL few documents and they have not been made when they shut down the Govern- AMERICANS entered in their entirety. In addition to ment over Christmas. The SPEAKER pro tempore (Mr. entering this in its entirety, I will Mr. Speaker, working American fam- TAYLOR of North Carolina). The Chair comment on it now. I would like at the ilies do not ask for much. They work recognizes the gentleman from New end of the presentation to have it en- hard. They pay their bills. They play York [Mr. OWENS] for the remainder of tered in its entirety. by the rules. They are not looking for the hour as the designee of the minor- The SPEAKER pro tempore (Mr. a revolution. All they want is a little ity leader. TAYLOR of North Carolina). Is there ob- progress. Mr. OWENS. Mr. Speaker, I would jection to the request of the gentleman America needs a raise. I call on the very much like to continue the discus- from New York? House Republican leadership to stop sion on the minimum wage. I serve as There was no objection. Mr. OWENS. Mr. GEPHARDT said ‘‘I the stalling tactics and allow the peo- the ranking Democrat on the Sub- want to thank you for holding this imple’s House to vote on raising the mini- committee on Workforce Protections, portant hearing—for realizing that, mum wage. Now. which is directly responsible for the minimum wage, and I am certainly de- even as many Republican call for the b 1700 lighted that I hear rumors that sud- outright abolition of the minimum Mr. ABERCROMBIE. Mr. Speaker, if denly there are manifestations taking wage—even as they refuse to schedule the gentlewoman will yield, it might place within both the House and the real hearings or a vote on a minimum be of interest in the context that you Senate, which means that our great wage increase—it is an issue we simply have just established in regard to the logjam on the minimum wage may cannot ignore.’’ minimum wage to note that the State soon be broken. I might emphasize that we have re- of Hawaii already has a minimum wage I understand there are some Members peatedly called for hearings in the at $5.25. We were an economy in Hawaii of the Republican majority in this committee. I am on the committee of based on agriculture. We have moved House who have begun developing a bill jurisdiction. Just yesterday we called into one of the most service-oriented calling for an increase in the minimum for hearings again on the minimum economies it is possible to have; that is wage, and this may lead to the call we wage, and so far have had no response to say, a dependence on travel and hoped for for a long time. There are from the chairman of the subcommit- tourism. moments in this House when reason tee or the chairman of the committee. Quoting Mr. GEPHARDT, ‘‘Real wages Yet the argument is always made does prevail. There are times when par- for all working people have been de- that if you are in a service economy, ties lay aside their particular ideologi- clining in this country for 20 years; you have to keep wages at an absolute cal bents and understand the best in- some economists believe it is our long- minimum. If you are in an agriculture terests of the American people are est and steepest income slide since economy, you have to keep wages at an served by a particular course of action and the two parties come together. 1820. absolute minimum. Yet the prosperity ‘‘And the people at the bottom of the of the State of Hawaii has been based I hope we are on the way to doing that. I hope the Republicans will recog- income scale have been doing the upon the fact that we recognized that worst. Between 1983 and 1989, two- people who are working, families that nize that there is a terrible injustice that has been done to working people thirds of all new wealth created in the have to work, are best able not just to over the last 20 years. We have a wage United States went to the top 1 percent survive, but to prosper, when they are gap that is increasing. The value of the of American households. The bottom 80 able to earn more than just a living dollar has fallen, the minimum wage percent actually saw their assets drop wage, more than just an adequate value has fallen, and we should take by about 3 percent. No wonder America wage, but a wage which enables them steps to do something about that as has the greatest gap between the rich to fully participate in the economy. soon as possible. and the poor of any industrialized na- That economy is invested in by the As the ranking Democrat on the tion in the world.’’ very people who are doing the work. Committee on Workplace Protections, Continuing to quote from the state- The money stays in the area where it is I chaired a hearing on the minimum ment by the minority leader, ‘‘That is earned. It is not taken by multi- wage increase on Thursday, November why we must question the wisdom of national companies, by international 30 of last year. I invited several people the Republicans’ supply-side revival, companies, elsewhere. It is not moved to come. One of them was the minority which would shower more tax breaks into a global economy as such. leader for the Democrats, Mr. GEP- on the wealthy, while raising taxes on That money earned in that State, HART. Mr. GEPHARDT’S testimony sum- the poorest working families, and mak- whether it is Connecticut, whether it is marizes it very well. ing huge cuts in Medicare, student in Hawaii, whether it is anyplace, That testimony I think is such that loans, and education. The Republican whether it is in Georgia, in Cobb Coun- it would be good to quote it here again, agenda would actually make America’s ty, in Mr. GINGRICH’S home district, because it does summarize very well income gap much worse. that money stays in that district. That where we are and it talks about where ‘‘Democrats have a different philoso- money is invested in that district. we should be going. Mr. GEPHARDT is phy. We believe in valuing and encour- Small business people make money in the sponsor of the prime legislation aging work—not passive profit and that district as a result of it. that is now introduced in the House on speculation. We believe in making Those kinds of wages, the minimum increasing the minimum wage. work pay, and making sure that no wage, in service oriented jobs, when it Mr. GEPHARDT and Mr. CLAY together working family has to live in poverty is earned, is spent in the clothing store are calling for a minimum wage in- and deprivation. That’s why, early this to buy shoes for the children right crease of 45 cents per year for 2 years. year, President Clinton joined with there in the local community. That is We are talking about a 90-cent increase Congressional Democrats to propose a where it goes. The small investor, the in the minimum wage over a 2-year pe- 90-cent increase in the minimum wage small businesses, are the direct bene- riod. This is a very modest increase, over the next 2 years—a way to lift up ficiary of the raise in the minimum and the President has endorsed the in- millions of hard-working families who wage. crease, and indeed held a press con- have been falling behind.’’ Ms. DELAURO. Mr. Speaker, I thank ference at the White House where he Continuing to quote Minority Leader the gentleman from Hawaii for his announced that endorsement. GEPHARDT, ‘‘Even before we announced H3634 CONGRESSIONAL RECORD — HOUSE April 18, 1996 this proposal, it came under fierce at- tax breaks—are just money in the The fact is, for the millions of Americans tack by Republicans who see stagnant bank. Never mind that people are suf- who try to support a family on the minimum wages and eroding job security not as fering while those profits soar. wage, real wages have plummeted 30 percent problems, but as the solutions to their ‘‘The American people want this in- since 1979. We’re not talking about a bunch of kids ultimate goal: ‘‘Helping those at the crease by overwhelming margins. After working at summer jobs. The fact is, one- top of the economic ladder, even while too many years of declining wages and third of America’s 4.8 million minimum wage they’re sawing off the bottom rungs. opportunities, they deserve it. And earners are the sole earners in their families. Why else would Republicans propose a Democrats are going to fight to give it Seventy percent of them are adults. They are tax plan that cuts taxes by $8,500 a to them—because it’s right for our now faced with the virtually impossible task year for the top 1 percent of families, economy, and it is right for the hard- of raising a family on $8,700 a year. In fact, while raising taxes on the poorest working families who are the heart of one in five of them are still living below the working families by slashing the our country.’’ poverty line. Is that the message we want to send to earned income tax-credit, cutting back I end my quote from the statement working America? That you can work hard, on one of the best ways for struggling made by Minority Leader GEPHARDT on and take responsibility for your family, and families to lift themselves into the November 30, 1995, at a hearing held by still live in poverty and deprivation? middle class: the Democrats on the workplace, Sub- That is why it’s time to raise the mini- ‘‘The fact is, for the millions of committee on Work Force Protections, mum wage by 90 cents. It’s a matter of fun- Americans who try to support a family which I will include for the RECORD. damental fairness. It’s a matter of basic decency for those who are at the bottom of the on the minimum wage, real wages have TESTIMONY BY HOUSE DEMOCRATIC LEADER ladder, struggling to climb up. But there are plummeted by 30 percent since 1979. RICHARD A. GEPHARDT IN SUPPORT OF MINI- other reasons to support this proposal. MUM WAGE INCREASE, HEARING OF DEMO- ‘‘We’re not talking about a bunch of Raising the minimum wage would help CRATIC MEMBERS OF HOUSE ECONOMIC AND kids working at summer jobs. The fact make work pay more than welfare—and too EDUCATIONAL OPPORTUNITIES COMMITTEE, is one-third of America’s 4.8 million often, that’s just not the case today. THURSDAY, NOVEMBER 30, 1995, 10:00 A.M. minimum wage earners are the sole Republicans keep saying a minimum wage earners in their families. Seventy per- Ranking Member Clay, and Members of the increase will cost jobs. But it has been prov- Committee on Economic and Educational cent of them are adults. They are now en time and again that raising the minimum Opportunities: wage won’t cost jobs. The last time we raised faced with the virtually impossible I want to thank you for holding this impor- the minimum wage, Republican Members of task of raising a family on $8,700 a tant hearing—for realizing that, even as the House said it would be a ‘‘death warrant many Republicans call for the outright abo- year. In fact, one in five of them are . . . for small business,’’ and that it would lition of the minimum wage—even as they still living below the poverty line. destroy jobs, increase the federal deficit, and refuse to schedule real hearings or a vote on ‘‘Is that the message we want to send raise inflation. It did none of those things. a minimum wage increase—it is an issue we to working America? That you can On the contrary, recent research—includ- simply cannot ignore. work hard, and take responsibility for ing a study by noted economists David Card Let’s begin at the beginning: America and Alan Krueger—shows that a minimum your family, and still live in poverty needs a raise. wage increase has little or no effect on the and deprivation? Real wages for all working people have number of jobs. Since when is it bad for our ‘‘That is why it’s time to raise the been declining in this country for twenty economy to put more money in the pockets minimum wage by 90 cents. It’s a mat- years; some economists believe it is our of our workers and families and consumers? longest, steepest income slide since 1820. ter of fundamental fairness. It’s a mat- And it has been proven that raising the ter of basic decency for those at the And the people at the bottom of the income scale have been doing the worst. Be- minimum wage pushes up wages for millions bottom of the ladder, struggling to who earn more than the minimum wage climb up. But there are other reasons tween 1983 and 1989, two-thirds of all new wealth created in the United States went to today. to support this proposal. the top one percent of American households. Republican leaders have already pledged to ‘‘Raising the minimum wage would The bottom eighty percent actually saw fight this increase, as they have resisted help make work pay more than wel- their assets drop by about three percent. No similar increases in the past. Republican fare—and too often, that’s just not the wonder America has the greatest gap be- Leader Dick Armey does not merely oppose case today. tween the rich and the poor of any industri- an increase—he wants to demolish the minimum wage altogether. To the Republicans, ‘‘Republicans keep saying a mini- alized nation in the world. That is why we must question the wisdom lower wages—combined with huge corporate mum wage increase will cost jobs. But tax breaks—are just money in the bank. it has been proven time and again that of the Republicans’ supply-side revival, which would shower more tax breaks on the Never mind that people are suffering while raising the minimum wage won’t cost wealthy, while raising taxes on the poorest those profits soar. jobs. The last time we raised the mini- working families, and making huge cuts in The American people want this increase by mum wage, Republican Members of the Medicare, student loans, and education. The overwhelming margins. After too many House said it would be a ‘death warrant Republican agenda would actually make years of declining wages and opportunities, * * * for small business,’ and that it America’s income gap much worse. they deserve it. And Democrats are going to fight to give it to them—because it’s right would destroy jobs, increase the Fed- Democrats have a different philosophy. We believe in valuing and encouraging work— for our economy, and it’s right for the hard eral deficit, and raise inflation. It did working families who are the heart of our none of those things. not passive profit and speculation. We believe in making work pay, and making sure country. ‘‘On the contrary, recent research— that no working family has to live in pov- Thank you for listening. Now I’m happy to including a study of noted economists erty and deprivation. That’s why, early this take your questions. David Card and Alan Krueger—shows year, President Clinton joined with Congres- Mr. Speaker, I now would like to that a minimum wage increase has lit- sional Democrats to propose a ninety-cent yield to the gentlewoman from North tle or no effect on the number of jobs. increase in the minimum wage over the next Carolina [Mrs. CLAYTON] for a state- Since when it is bad for our economy two years—a way to lift up millions of hard- ment. to put more money in the pockets of working families who have been falling be- Mrs. CLAYTON. Mr. Speaker, I ap- our workers and families and consum- hind. Even before we announced this proposal, it preciate the gentleman from New York ers? came under fierce attack by Republicans allowing me to participate in his time ‘‘And it has been proven that raising who see stagnant wages and eroding job se- and particularly on the issue of the the minimum wage pushes up wages for curity not as problems, but as the solutions minimum wage. millions who already earn more than to their ultimate goal: helping those at the b the minimum wage today. top of the economic ladder, even while 1715 ‘‘Republican leaders have already they’re sawing off the bottom rungs. Why Also, Mr. Speaker, and to those who pledged to fight this increase, as they else would Republicans propose a tax plan are privileged to have heard the read- have resisted similar increases in the that cuts taxes by 8,500 dollars a year for the ing of the statement from the minority top one percent of families, while raising past. Republican Leader DICK ARMEY leader, indeed those same issues are as taxes on the poorest working families by does not merely oppose an increase—he slashing the Earnest Income Tax Credit, cut- pertinent now as they were then, and it wants to abolish the minimum wage al- ting back on one of the best ways for strug- is indeed the fair thing to do, it is the together. To the Republicans, lower gling families to lift themselves into the right thing to do, and in the final anal- wages—combined with huge corporate middle class? ysis it is the economical thing to do; April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3635 for all of us to have a livable wage so of our economy as well? Forty percent vailing wages under Davis-Bacon, are Americans can live better and thereof those who are on minimum wage are only slightly higher than the minimum fore our economy prosper. the sole providers, the sole providers of wage in North Carolina. Mr. Speaker, it makes no sense that their children. So the gentlewoman has a great de- a person in America who wants to Speaker GINGRICH often has com- pression of wages in her State. It is work, and who has a job and works pared this Congress with the New Deal very interesting. more than 40 hours a week, can still under President Roosevelt, and he ap- Mrs. CLAYTON. If the gentleman fall below the poverty level. That is the parently is a great admirer of Presi- would yield, as those figures are de- situation we have under the current dent Roosevelt, as I am; but I want to pressing as a State, I want the gen- minimum wage. tell you there is no comparison. The tleman to know that my district is The President has proposed, and New Deal Congress offered people hope, even more disadvantaged because the many Members are supporting, and hope; it did not increase their eco- earned-income tax credit eligibility is even a few Republicans are supporting nomic insecurity or anxiety, where we higher than it is for my State as a a modest increase. And I want to re- are refusing to give people any hope. whole. Also, those who are working at peat, it is a modest increase. Only 90 We are depressing their opportunity. lower wages in my district, which is cents over a period of 2 years, 45 cents In this Congress, the Speaker offers the First Congressional District in per year. only cynicism and anxiety by attempt- North Carolina, again a higher percent- Yes; Mr. Speaker, I know that some ing to enrich the few at the expense of age of my workers are working at in the business community have argued the poor. lower wages. that an increase in the minimum wage It is unconscionable to me that the So this is critical, critical to the sur- will cause many businesses to lay off majority in control of this Congress vivability of a lot of my families in my workers. Yes; I know that some of the would propose a huge tax cut for the district. It is not incidental. Their business community have maintained wealthiest among us, while simulta- earned-income tax credit, Medicaid, that an increase in the minimum wage neously attempting to eliminate the minimum wage, all of these issues go would cause many businesses to in- earned-income tax credit, and at the to whether families in my district—— crease the price of their products and same time refusing to have any oppor- Mr. OWENS. Some of these people their services in order to recoup what tunity for increasing the minimum are at the very bottom of the rung. Al- they pay the workers who provide serv- wage, as well as wanting to take Med- though they are working, they are at ices for us. icaid and other things that help the the very bottom in terms of wages and But, Mr. Speaker, let us be honest poor away. income and were benefiting from the and recognize the fact that while, over True, Mr. Speaker, these are indeed earned: income tax credit. You just the course of the past few years, with- tough times. Our Nation is faced with a mentioned that. But not only have the out the minimum wage, we have wit- staggering national debt, built up over Republicans refused to allow a discus- nessed the economy prospering. Wall the past decade, that is threatening to sion of an increase in the minimum Street is boasting of a great margin of rob our children and our grandchildren. wage, but they have gone ahead and profits, and indeed our economy is But what will rob our children and our cut the earned-income tax credit also. moving. But it is not moving for all grandchildren, Mr. Speaker, is an in- Mrs. CLAYTON. In some instances Americans. And the minimum wage ability for their parents and their they wanted to eliminate it. They cut simply says that the average worker grandparents to earn for them, rather it, but they wanted to eliminate it in also should see their wages go up as than to be dependent on welfare. many instances. well. There is a growing gap between the Mr. OWENS. So there is a kind of war In fact, the average wages have stag- rich and the poor, creating economic on the poor. nated and the minimum wage, indeed, anxiety and fear, that has led many to I want to yield to the gentlewoman has not moved at all. Mr. Speaker, the question their place in society and to from Georgia and say to her that her value of the minimum wage is now 29 look with suspicion and envy at others State is about the same in terms of the percent lower than it was in 1979. In of us. Nevertheless, Mr. Speaker, dur- percentage of people who are making fact, it has fallen nearly 50 percent in ing these tough times, we must always only the minimum wage, working peo- real value since it was last increased. remember the true test of a govern- ple who are earning only the minimum Yet we hear the Republicans say, ment is not where we stand when times wage, about 11.9 percent in Georgia. ‘‘Well, you had 2 years and you have are easy but, rather, where we stand Ms. MCKINNEY. Well, I would begin not done it’’. Well, this may be the when times are tough. History recalls by thanking the gentleman from New time we should go ahead and do it. how good government has responded York for reserving this time so that we Simply because we have not done it during similar times, and I would say, could talk about how America does does not mean it should not be done Mr. Speaker, history will certainly ul- need a raise, and our constituents, in now. That is why workers who work timately judge this Congress and the particular, need to have a raise. full time, 40 hours a week and more, this Government. I brought with me a cartoon from the are not able to provide, because the America has traditionally rewarded Washington Post, Saturday, April 13. I value of that has decreased over 50 perwork. Why should we not reward work? want to read this cartoon. It says: cent in real value in the last few years. It is better for us to reward work rath- ‘‘The bad news, Johnson, is you are And who are these people we are er than welfare. If this Congress fails being let go. The good news is you can talking about? And by the way, why to pass a minimum wage, it would the have your old job back at half your should we, those of us who make over tantamount to making the will to former pay.’’ And then poor Johnson $130,000, despair of other people getting work a penalty rather than a prize. Re- says: ‘‘I can’t live on that.’’ And then a 50-cent increase? It is unbelievable ward work, raise the minimum wage. It his boss says: ‘‘The rest of the good that we have the gall, the arrogance, to is the right thing to do. It is the Amer- news is we can offer you a second job, be so uncaring about people. ican thing to do. also at half your former pay.’’ Who are these workers we care about, Thank you, Mr. OWENS for allowing The title of this cartoon is job Mr. Speaker? They are our fathers, our me to participate with you. growth. And now at the bottom it says: mothers, our children, our neighbors, Mr. OWENS. I thank the gentle- ‘‘I’d offer you a third, but I’m afraid of their friends. Two-thirds of them are woman from North Carolina, and I overheating the economy.’’ adults in working families, and only wonder if she knows that she has about Mr. OWENS. They have been reading one-third of them are actually teen- 11.3 percent of her working population Alan Greenspan. agers, which we hear thrown out as an in North Carolina that earns a mini- Ms. MCKINNEY. I think this poign- excuse. mum wage. I wonder if she also knows antly demonstrates the situation that We also hear the excuse there are so a lot of fuss has been made about America’s workers are facing today, few of them. Well, we are concerned Davis-Bacon and how Davis-Bacon arti- even those people who had white-collar about the top few of our economy; why ficially inflates wages. The figures for jobs, who thought that they were se- not be concerned about the bottom few North Carolina for Davis-Bacon, pre- cure. H3636 CONGRESSIONAL RECORD — HOUSE April 18, 1996 I have a constituent who was em- Mr. OWENS. I think $8,400 a year is mum wage. So people understand if you ployed by IBM, who thought that that what the present minimum wage comes are going to sustain your company, was a contract for life employment, out to. Eight thousand four hundred you have to have a stable work force and now, of course, finds himself dollars a year. And we just pointed out that you can depend on so it is good for among those others who have been about 4 million of these people are the the economy, it is the right thing to downsized, dispossessed of their dig- sole wage earners in their families. do, it is the moral thing to do. nity, while corporate CEO’s, of course, Ms. MCKINNEY. Kevin Phillips, a And I agree with you. We do not want make salaries that even our athletes, conservation political analyst, said the to be a part of a Congress that would our star athletes, begin to blush at. 104th Congress may be the worst in 50 be held accountable because I said ear- Last year the heads of about 30 major years. Now, can you imagine that we lier history records what we do and corporations made 212 times more in are presiding over something that is tough times, and indeed these are compensation than the average Amer- going down in history, but going down tough times, but there are a lot of peo- ican worker. And as we saw in the in history the wrong way? ple who are having tough times that newspaper yesterday with Mr. Allen, Mr. OWENS. Would the gentlewoman government should give some hope to. the chairman of AT&T, he said that he yield to correct that? We are not pre- The minimum wage gives just a little really was not prepared to talk about siding over it. of that. Does not give a lot, but we his salary. And we saw him on ‘‘60 Min- Ms. MCKINNEY. That is true. should do that. utes’’; ‘‘60 minutes’’ did a thing, and he Mr. OWENS. There is a Republican Mr. OWENS. I think it is important was not prepared to talk about his sal- majority in power for the first time; to point out at this point that I said ary. they are presiding over it. earlier that there are rumors that the But, of course, what about those Ms. MCKINNEY. Thank you very Republicans or some Members who are 43,000 who were downsized. What do much for the correction. Perhaps this beginning to generate a bill calling for they face? The fate that they face is is one way that they can get on the an increase in the minimum wage. In jobs at half the pay, sometimes. If they right side of history, by doing some- fact, the increase, as you pointed out, are lucky, it is at half the pay of what thing that is a moral obligation to they are calling for a 50 cent per year they were formerly making. working Americans so that they can at for 2 years which means maybe a $1 in- I have another chart here. This is a least go to work every day and then crease. quote from our right honorable major- come home and not have to live in pov- I welcome that, and I hope that the ity leader. He says the minimum wage erty. American voters out there will also is a very destructive thing. I will resist Mrs. CLAYTON. Would the gentle- begin to encourage their Congressmen, a minimum wage increase with every woman yield? whether they are Republicans or Demo- fiber in my being. Ms. MCKINNEY. I certainly will. crats, to go forward. We need this in- Now, I do not know about my sister Mrs. CLAYTON. I think you are crease. and my brother, my sister from North right, it is the moral thing to do. And And some of the brightest moments Carolina, my brother from New York, so often we hear values about family of my 14 years here in Congress have but I cannot imagine leadership of the and we hear values about trust and been the times, all too few, when Re- United States of America that would honesty and decency. Well, how we publicans and Democrats have come to- resist giving people who are working really cause families to unite is to give gether on something that makes sense. every day——— We did it in terms of sanctions against Mrs. CLAYTON. Fifty cents. them the resources to be self-suffi- South Africa, very tough sanctions Mr. OWENS. Forty-five cents. cient. And the best welfare reform to Mrs. CLAYTON. Yes, 45 cents. take away dependency is to have suffi- against South Africa. We did it to pass Ms. MCKINNEY. A dollar. Because cient income to take care of yourself. the law which created the Martin Lu- ther King birthday. We have done it on now we have some Republicans who b 1730 have said, well, we are willing to sup- the occasion of the Americans With port a dollar increase in the minimum So that is indeed the right thing, the Disabilities Act; you know, Repub- wage. I would suggest just with my last moral thing, the American thing, but licans and Democrats coming together little quote here from my charts—— in addition to that, this money goes to do something that makes sense and Mr. OWENS. Would the gentlewoman right back into the economy. Why? Be- benefits large numbers of people. yield for just a minute? cause people want to provide food, they In the next few days and weeks noth- Ms. MCKINNEY. I will. want to provide shelter, they want to ing would make me happier than to see Mr. OWENS. Most Americans do not provide clothing. So this is not money the Republicans join us and do the realize that this is not a budget issue. that is going to be taken out. This right thing. You know, let us go for- An increase in the minimum wage will money generates consumers who are ward on a minimum wage increase. not cost the taxpayers a single penny. purchasing services that they cannot Mrs. CLAYTON. My understanding is We are not talking about the Govern- purchase now; so this idea that it will that the minimum wage has been tradi- ment paying an increase in the mini- be detrimental to the economy because tionally a bipartisan. In fact, Speaker mum wage. It is the people working it will reduce jobs, and think the com- GINGRICH has voted for the minimum out there for employers in the private ment that Congressman OWENS read wage. Senator DOLE has voted for the sector who would receive the wages. It earlier from the minority leader ref- minimum wage. Why not now vote for is not an item we put in the budget to erenced a couple of studies that were it? You are right. Why cannot we join increase the minimum wage. So we are made, one in New Jersey and the other in that bipartisan effort, because when not talking about downsizing the Gov- in Pennsylvania, where they actually you look at who has been voting for ernment or helping to get rid of the studied that there were increasing jobs. the minimum wage, they are already. deficit. We are talking about a humane Why? Because there were demand for So why you at this time are refusing to action to make it possible for every greater service. Philadelphia did not do the right thing which you already American to pursue happiness waste theirs, Pennsylvania did not have done? History has reported you The Constitution and the Declaration raise theirs, New Jersey did raise have had a vote on the minimum wage, of Independence talk about the right to theirs. New Jersey increased jobs; and they voted for it. So why not now? pursue happiness. They need to have a Pennsylvania did not. Is this just a political effort? People decent wage before they can pursue In fact in my State, North Carolina, are suffering, so they need that effort, happiness. when they raised the minimum wage and I agree with you. It would be the Ms. MCKINNEY. But this is the same the last time, indeed there was a slow- right thing to do, and the Republicans group of people who want welfare re- ing of jobs. But when you looked at have a bill that says a dollar, I think form, and they want to kick people off over a period of a year, that increase the dollar is better than 45 cents. I cer- of welfare and send them to work, but came back in, and I would ask some tainly would want to join that. they want to send them to work at a farmers, the minimum wage is, said Mr. OWENS. People in the poorest job that does not even sustain a decent you know what we have found out: you parts of my district would welcome an living. cannot keep good workers at the mini- increase of 45 cents or 50 cents. We April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3637 really need more. They do not care reasoning that takes place. Even on the interest they charge the banks, where it comes from Republicans or though it does not cost the government they earn money on the services they Democrats. There are people who are one penny, the elite minority reason- provide the banks. suffering that need that increase in the ing is that you do not want to do any- In the last 79 years they have never minimum wage. thing which might lessen the profits of had a rainy day, the last 79 years they Ms. MCKINNEY. To deny an increase the people who are making all the have never had a loss, never broken in the minimum wage and also to cut money already. even. They always have a surplus, but the earned income tax credit is nothing The corporations are making tremen- the surplus is now increased to the other than mean, and that is not the dous amounts of money. We are in a point where it is $3.7 billion. kind of government that the American boom cycle. You got a bull stock mar- Now, Mr. Greenspan is in charge of people deserve, and I know that is not ket, you know. Why are they watching this, the same mentality that says what they voted for. so closely to see to it that the bottom keep unemployment up, keep wages Mr. OWENS. I think it is very impor- line should be kept so low? Why are low, also said that, ‘‘I need $3.7 billion tant to note that 20 percent of those they trying to keep our wages in this around in my slush fund just because I living on the minimum wage the last country at the same level of the wages might have a rainy day.’’ time it was raised in 1991 were in pov- in Bangladesh or China, Mexico? Or We ought to do something about erty. An additional 13 percent were why are they trying to bring down the that. The American people ought to lis- near poverty. In 1993 the President ex- American workers? Why not let every- ten closely to what is happening. You panded the earned income tax credit body share in the prosperity? know, it is just like what happened in which we noted the Republicans have We have this kind of decadence that another one of those sacred cow agen- tried to cut out completely, but they has been made into a very complicated cies, the CIA; they found $2 billion certainly decreased, and it raised in- philosophy. We have Alan Greenspan lying around in a petty cash slush fund come to 15 million families that helped adding to this decadent economics. But of the CIA, you know. If we get all of many working families move above the Alan Greenspan argues that whenever these slush funds cleaned out, you poverty line. Yet to complete the goal you have unemployment up, that is know, we could balance the budget of insuring the full-time working fami- good because it means that it keeps in- properly. lies, getting them out of poverty, we flation in check, but unemployment You know, my friend from New York, need to raise the minimum wage. goes down, it is bad because inflation CAROLYN MALONEY, has done a study, Recent analysis by the economic pol- will increase because the number of and she shows that the debts owed to icy institute and preliminary work by workers out there, if the supply is less the U.S. Government by the Farmers the Department of Health and Human than the demand, and when the supply Home Loan Mortgage, which is one of Services suggest that 300,000 people is less than the demand and the work- the worst perpetrators, and many oth- would be lifted out of poverty if the place that drives up the ability of the ers, section A, the royalties that are minimum wage was raised to $5.15 an wages because the workers can nego- due by companies that are supposed to hour we are proposing. The figure in- tiate for higher level of wages. pay, oil companies that are supposed to cludes 100,000 children who are cur- So our Federal Reserve has been pur- pay royalties to the Government, when rently living in poverty. The current suing a policy of keeping wages low, you add it all up, there is $55 billion poverty line for a family of four is keeping unemployment high. You out there uncollected that, if we were $15,600. A family of four with one work- know, we have the body that is set up to pursue with more zeal, we could get er earning $4.25 an hour and working to promote prosperity for everybody, that money, help balance the budget, full-time year round earn $8,500, and deliberately joining forces with the and we would not be talking about they will receive a tax credit of $3,400 kind of reasoning that says wages keeping the economy in check with in- under the 1996 provisions of the earned should be kept at the present level or flation so that it can generate for prof- income tax credit. They would collect not increased in order to keep down the its; hopefully those profits would be food stamps worth $3,516 and would pay amount of money paid by corporations taxed, and that is the way we get our $615 in payroll taxes out of what they to the lowest-level workers in America. revenue. earn. This family would end up $834 These are decadent institutions they Let us bring down the deficit. Let us below the poverty line. must be challenged head on. The Amer- take care of the minimum wage. Let us With all that help, they go to work ican people need to understand. We re- every day, they get the help from the begin to manage our economy better, cently had Mr. Greenspan up for re- food stamps, they get the earned in- and let us not have a balancing of the come tax credit, they are still $835 appointment, and he sailed through. budget, a driving of the economy by below the poverty line. Everybody agrees that Alan Greenspan shortchanging the people who are at On the other hand for a family of should be reappointed. And he is the the very bottom who are earning the four with one worker earning $10,000, great untouchable on the Federal Re- minimum wage. It is a decadent sce- $300 a year, that would be a full-time serve Board. But I think we better stop nario that ought to be challenged by worker on $5.15 an hour after the in- and take a look at the policies being every fair-thinking American. crease takes place. The EITC, the promulgated by the Federal Reserve Mrs. CLAYTON. I want to add, too, it earned income tax credit, would pro- Board, especially since that same Fed- has been usually the principle that we vide the maximum tax credit of $3,560, eral Reserve Board which is responsible have been working on that would re- food stamps would provide $2,876, and for keeping our economy well man- ward work, that productivity is a fac- they would pay $788 and payroll taxes. aged, for seeing to it that we have poli- tor of the profit, and that we reward The increase in the minimum wage, cies which promote prosperity, for see- that when the productivity goes up and along with EITC and food stamps ing to it that we minimize waste, that the profit goes up, you share that with would lift this family out of poverty. A same Federal Reserve Board was found the workers. But somehow the wages family of four with those kinds of, that by the GAO to have $3.7 point billion in have been stagnant even for those who kind of, assistance, plus working every a slush fund. They have $3.7 billion are not at the minimum wage; I mean day would be lifted out of poverty. lying around that they are not using those who are middle income. The Ms. MCKINNEY. That is certainly an that they have not returned to the wages have been stagnant at the same inducement to those who would want Treasury. If we had that $3.7 billion in time the profit has been going up. So to get off welfare but who find welfare the Treasury, the deficit would be de- the productivity, which is a factor of more attractive because working every creased by $3.7 billion. that high profit, is not necessarily a day pays less than welfare in some Why is the Federal Reserve holding benefit of the workers, and we need to places. This is an inducement for those on to the money? I have an answer, Mr. change that principle, as well, also. people who want to work to go to work Greenspan, but the General Accounting The other principle we need to and then to be able to live a decent life Office points out they say they keep change, it seems to me, is that Amer- at the end of their work. the money for a rainy day, they keep ica is a country of great opportunity. Mr. OWENS. Now the problem is we the money in case their operations, It is the entrepreneurship and the op- have a kind of elite minority decadent which are quite huge, they earn money portunity to work that should give H3638 CONGRESSIONAL RECORD — HOUSE April 18, 1996 hope to all of us that we always will the social good, not for America’s good the world, and spend their money all work harder, train and be better but for the good of individual people, over the world and buy real estate all skilled to get the next job. However, one or two people get all of the results, over the world, buy diamonds, jewels, when we give messages that create all of the rewards, and they have to and certain kinds of things that do not such a disparity between the top 5 per- pay the price. feed back into the economy. They do cent and the lower 5 percent, and it is At some point America and Ameri- not turn the money over. growing, it is growing and we seem not cans have to wake up and say that it is The great locomotive of the free to even concern ourselves about that, I one thing to be an individual who can world economy has been the American mean the distance between the richest soar to the top, but there is also some consumer. We are about to destroy the of the individuals in America and the emptiness in being at the top if every- American consumer and end the great poorest of the individuals is larger now one else beneath you is way down at economy that has fed the free world for than ever before, and yet at the same the bottom. We all can soar, and that all these many years. If you do not time we are having great profit, great is what is so good about this country, have those consumers with basically productivity. You would think that is that there is room for everybody, if good salaries on a steady basis, then that would inure to the workers as the value is there that includes every- you are going to take the heart out of well. Just as you share the profit with body. what drives our economy. your stockholders, you reward people Mrs. CLAYTON. That is what Amer- Other economies recognize this more for doing a good job; they get an in- ica was built on. Give me your weak so than we do. A higher standard of liv- crease. and your frail. ing of workers now is not in America. And also the minimum wage should Ms. MCKINNEY. That is correct. It is in Germany. Japan, with all of its move up. And by the way, the cost of Mrs. CLAYTON. This is what the economic difficulties, has a far lower living has gone up rather than wages Statue of Liberty is all about. That is rate of unemployment than America. now, so it is costing the people to get why people want to come to America, Japan does things to protect its work- a gallon of milk or bread or Medicare; for a better opportunity to live. So the ers, and its workers are considered a all of those things that they must pro- quality of life adds to that community large part of its middle class. vide for their families, that is going up. spirit, and also the quality of life and Japan does not have to spend large Ms. MCKINNEY. And in order for the the community spirit adds to the sta- amounts of money on prisons, on crime minimum wage to have the same pur- bility in our communities. prevention or crime detection. They do chasing power as it did in the 1970’s, it When you find the family down the not have to spend large sums of money would need to be $6.07 an hour. So when street who has no economic stake in on drug rehabilitation and drug-related you talk about purchasing power and that community, pretty soon he be- crimes. They do not spend almost any inflation, it has eroded the minimum comes a factor of the criminal element money on guns and the results of peo- wage, the purchasing power of the min- that finds themselves not feeling they ple being destroyed, mangled, injured imum wage. need to protect you either. So we need by guns. We have got something like b to see how we keep our families to- 16,000 people killed by guns 2 years ago. 1745 gether by ensuring that they have the The statistics are complete. At the Mrs. CLAYTON. We are not talking resources to take care of themselves. same time less than 100 people were about even taking people up to pur- That also will help stabilize our com- killed by guns in Japan. chasing power, as you have indicated. munity as a place that is caring and A more stable society, including gun This is just the beginning of the proc- protective. control laws, by the way, a more stable ess. We are all in this boat together. We society with a middle class preserved. Ms. MCKINNEY. That is correct. I are all in this American boat together. We criticize Japan a lot about the way would just like to say something about Obviously someone with greater skills they resist our imports coming in. the notion of a social good. At some is going to be rewarded but, as the gen- They have all kinds of tricks to slow point we have got to start thinking tlewoman said, we should be equally down the flow of goods from the out- about the community. We have got to concerned for those who are at least side because they protect each indus- think about the community that is among us, because their quality of life try, the middlemen and all the folks America. helps our quality of life. down at every level in their economy I know we went through the 1980’s, Mr. OWENS. I thoroughly agree with to maintain a middle class. The biggest and the 1980’s was the ‘‘I-me’’ decade. both of my colleagues. We have a moral part of that middle class are the work- We are seeing the fruits of that now. duty, and we are charged as public offi- ers in the factories who earn wages The fruits of that, as you have cor- cials by our Constitution to promote which are good enough to make it un- rectly pointed out, is the fact that we the general welfare. necessary for them to have to have have got concentration of wealth in the If you look at it in hard, cold terms EITC or food stamps or all the other hands of fewer and fewer Americans. in terms of promoting the general wel- benefits that we have to generate as a They are getting more and more and fare, Henry Ford was a smart man. He result of our failure to pay our work- more of the pie. The rest of us are might have had some problems with ers. being left out. unions, et cetera, but he came to the In Japan, in Germany, in France, in At some point when you have produc- reality that if he is going to sell his all of the industrialized nations, the tivity increases, you would think that cars in large amounts, he has got to executives, the chief executive officers America as a whole, the community, pay his workers enough wages to buy and the middle management earn far would grow as a result of that produc- his cars, and that is just plain old less than the chief executives in the tivity growth. But what we have seen American common sense. United States corporations. Far less. is that we have got this ‘‘winner take We have serious problems in our You will have to look for a long time all,’’ and the winner is the CEO and economy right now with consumer to find a chief executive officer in those folks who are in that orbit. They spending. The retail establishments are Japan who was paid more than $1 mil- get everything, and can even get re- suffering. Why they are suffering is be- lion in compensation last year. You warded by laying people off, by putting cause the people on the bottom, from might find a few more in Germany but people on the streets, by telling them the bottom up, are the ones who spend you will not find them in Japan. ‘‘We don’t need you anymore.’’ the money in the stores because they Let us make a comparison. If Major- At some point we also have to think need immediate necessities. They need ity Leader ARMEY is really interested about the dignity of work and how peo- food, clothing, shelter, they need rein doing what is good for the economy ple define themselves and their self- frigerators, they need the kinds of instead of saying he wants to abolish worth by what they do in life. If they things that you buy from our stores. and eliminate minimum wage, let us have nothing to cling to because their The people at the very top who are put some kind of hold on the unbridled, commitment that they thought they drawing large amounts of profits from forever escalating amount of money had with their company, with their Wall Street, they are the rich and the that the chief executive officers of cor- corporation, has been broken, not for famous who pick up and travel around porations are earning. Of course the April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3639 chief executive officer earns, what is it, HOUSE OF REPRESENTATIVES, I saw a cartoon in the paper that I the top guy is $20 something million. COMMITTEE ON APPROPRIATIONS, want to share with my colleagues. On AT&T or Disney, I forget, somebody is Washington, DC, April 18, 1996. one side it had a woman working for past $20 million in compensation per Hon. NEWT GINGRICH, the minimum wage for 1 year, her sal- The Speaker, House of Representatives, year. Washington, DC. ary, $8,400 a year, working full time, Ms. MCKINNEY. I saw a newspaper DEAR MR. SPEAKER: This is to formally no- and in the other frame was an execu- article from I believe the Washington tify you pursuant to Rule L (50) of the Rules tive, and the average salary for cor- Post about a company called of the House that my committee has been porate CEO’s in our country would Greentree, and that CEO was being served with a subpoena issued by the United make, in 1 day, some say really in a compensated at around $60 million. It States District Court for the District of Co- half a day but let us be generous, in 1 lumbia. is absolutely unbelievable. After consultation with the General Coun- day what this woman was making in 1 Mr. OWENS. $60 million. Oh, that is sel, I will make the determinations required year. an aberration, most of them are at by the Rule. b 1800 around $20 or $15 million. Sincerely, BOB LIVINGSTON, Certainly we want to reward success Ms. MCKINNEY. That is correct. Chairman. and we want to honor the entre- Mr. OWENS. Nowhere in Japan will f preneurial spirit. But how could it be you ever find anybody earning $60 mil- OK for us to have one person working 1 lion or $20 million. CALL FOR AN INCREASE IN day for the same as the average, and I Ms. MCKINNEY. It is absolutely in- MINIMUM WAGE am not talking about the highest, I am credible. Two hundred and twelve The SPEAKER pro tempore. Under a talking about the average corporate times more in compensation than the previous order of the House, the gentle- CEO’s salary? I think it is a matter of average American worker. woman from California [Ms. PELOSI] is conscience and decency, and a sign of a Mr. OWENS. Let us take care of our recognized for 5 minutes. great country, that we reward work, we economy. Mr. Greenspan wants to take Ms. PELOSI. Mr. Speaker, I rise increased the morale of our work force, up inflation. Seems to me Mr. Green- today in support of the increase in the we give people a chance to take them- span would address his concern to in- minimum wage. As probably has been selves out of poverty by saying we re- flated salaries at the top levels, and mentioned on the floor here this after- spect you, we respect what you do. We deal not so much and scrutinize not so noon, if an individual works full time, want to give you the dignity that you much the wages paid to people at the he or she brings home $8,400 a year. In deserve as a hard-working person in very bottom. a family of 4, if you have two wage our country. Not by throwing some Ms. MCKINNEY. If the gentleman earners working full time at the crumbs to you and making you grovel and the gentlewoman would recall the present minimum wage, they make, for other benefits and be disdained for arguments around NAFTA, do you re- well, we can do the math, under $17,000 that, but instead by giving you a living member that some people were saying a year. How could it be that in a coun- wage. that if we pass NAFTA and NAFTA be- try this great and this decent that we Ms. MCKINNEY. I did not necessarily comes law, that American standards do not pay a living wage to the hard- want the gentlewoman to yield, but I then would become global standards? working people, hardworking families was just thinking about the depth of So we did not have to fear about work- who want to do the best for their chil- your feeling and your compassion. It is ers’ wages going down, because work- dren. a shame that we have leadership in this We must reward work and we must ers’ wages would go up. We did not country, leadership that leads this do it with a decent livable wage. I hope have to fear about environmental country, that does not feel anything at that this Congress will be increasing standards going down because environ- all about leaving folks who are hard the minimum wage by at least $1, mental standards were going up. working, who go to work everyday, get which would enable families to buy up by the clock, punch out by the I do not know that that has been the more groceries. We are talking about clock, and they want to leave them be- experience. the basics. hind and leave the embrace of this Gov- Mr. OWENS. Just the opposite has Another point I want to make about ernment away from them, yet they happened. The common denominator is the minimum wage is that by keeping rush to those who already have. becoming the prison laborer in China, the minimum wage as low as it is, we Ms. PELOSI. Mr. Speaker, I appre- the workers in Bangladesh, the work- are increasing the cost to the U.S. tax- ciate the gentlewoman’s comment on ers in Mexico. The philosophy behind payer. We have to provide food stamps, that. I was particularly concerned the the assertion by the Republican major- housing assistance, and other assist- majority leader, Mr. ARMEY, said he ity that we need to keep our wages low ance to supplement the meager earn- would fight the increase in the mini- is that in order to be competitive, the ings that these people make, even mum wage with every fiber of his lowest wages in the world is what we though they are working full time, being. He is a good guy. Let us change are competing with. So just the oppo- even welfare benefits I some cases. So his mind on that subject and show the site has happened as a result of GATT this is not about reducing the deficit or support, which has always been biparti- and NAFTA. We are pulling down the anything else. It is about providing san, has always been bipartisan, for an standards of the American workers. adequate rewards to Americans who increase in the minimum wage. I thank my colleagues for joining me work. f on the special order on minimum wage. There has been some discussion in I hope everybody understands we are the course of this year about the REPORT FROM INDIANA: moving forward and common sense will earned income tax credit. I believe that ‘‘MOTIVATE OUR MINDS’’ prevail. I hope our colleagues on the the cuts that were proposed for Amer- The SPEAKER pro tempore. Under a other side of the aisle will soon join us ican working families were wrong. Our previous order of the House, the gen- in increasing the minimum wage. colleagues on the other side will say, tleman from Indiana [Mr. MCINTOSH] is no, we kept it in there. We kept it in recognized for 5 minutes. f for some but not for all of the people Mr. MCINTOSH. Mr. Speaker, I rise who were working, hoping to have fam- today to give my report from Indiana. ilies and contribute to our country. COMMUNICATION FROM CHAIRMAN In the Second District of Indiana, We have and we need an earned in- there are so many special people striv- OF COMMITTEE ON APPROPRIA- come tax credit because we have this TIONS ing day and night to make a difference. artificially low minimum wage. The These are good people doing good The SPEAKER pro tempore laid be- American taxpayer is subsidizing things. And today I rise to commend fore the House the following commu- American business with food stamps, the volunteers at the ‘‘Motivate Our nication from the Honorable BOB LIV- housing assistance, earned income tax Minds’’ program in Muncie. INGSTON, chairman of the Committee credit, because we have such a low These individuals, Mr. Speaker, are on Appropriations: minimum wage. Hoosier heros. Hoosier heros because H3640 CONGRESSIONAL RECORD — HOUSE April 18, 1996 they care about our community and No task is too big. No challenge is looking to repeal the New Deal, but care deeply about helping others. too great. These dedicated young peo- much of the Great Society simply did These heros reach out and lend a ple are faced with amazing challenges not work. Not all of it, but a good part helping hand to at-risk schoolchildren. but they never give up. of it. Motivate Our Minds—MOM’s for A special gift that these young men I was coming to Washington this short—is a very special organization in and women have received, is something week, I noticed on my calendar, I have my hometown of Muncie. that I, too, learned at an early age: quotes on my calendar. This one hap- Mr. wife, Ruthie, visited the MOM’s ‘‘Always do your best, hard work will pened to have been from Ann Landers. program just a few weeks ago. She be rewarded and never, never give in.’’ I think it defines something that is ab- shared with me the love and friendship Mr. Speaker, the volunteers and espe- solutely essential. It says, ‘‘In the final the volunteers at the MOM program cially the children involved with the analysis, it is not what you do for your give to inner city schoolchildren. MOM program in Muncie, Indiana are children, but what you have taught MOM’s first started in 1987, when two Hoosier heroes. That is my report from them to do for themselves that will women, Mary Dollison and Raushanah Indiana. God bless. make them successful human beings.’’ Shabazz (Ra-shanna sa-bez) opened up f I look at this and say this is abso- their home and went to work helping lutely the center of what we need to do ‘‘at risk’’ schoolchildren. PRESIDENT’S CATHOLIC as a Government. In the final analysis, They knew in their hearts that the STRATEGY it is not what you do for your citizens, key to a bright future for a disadvan- The SPEAKER pro tempore. Under but what you have taught them to do taged child is a strong and loving hand the Speaker’s announced policy of May for themselves that will make them to guide them. Special children need 12, 1995, the gentleman from California successful human beings. motivators. [Mr. DORNAN] is recognized for 60 min- As a moderate Republican, someone Mary Dollison knew that when chil- utes as the designee of the majority who has voted for a number of pro- dren feel good about themselves they leader. grams that would be part of the Great do well in school. They become suc- Mr. DORNAN. Mr. Speaker, in the Society, I have had to analyze and say, cessful adults. and their contribute full sense of collegiality here, I would where have I been doing the right positively to their communities. like to yield, and I will stay on my thing, where I have helped make a dif- MOM’s has grown from helping 16 feet, the first 20 minutes of my special ference, and where have I actually students tutored in Mary’s home, to order to my good friend, the distin- caused problems? providing assistance for more than 69 guished colleague from Connecticut, If I am honest with myself, there is a at-risk students today on East High- part of me that recognizes that I could CHRIS SHAYS, to speak about our budg- land Street. et crisis and getting America’s fiscal go and vote for some of these programs Mom’s teaches at-risk students: ‘‘To and say, you know, I have dealt with house in order. think they can, until they know they your need. I can pat myself on the can.’’ Parent volunteers like, Lola THE WORK ETHIC IN AMERICA back. I can go to certain groups and McGregor, Ball State students, com- Mr. SHAYS. Mr. Speaker, I thank the they can say, oh, isn’t it nice that you munity leaders, parents, and the chil- gentleman for yielding I will not be care? dren can witness first hand young men using the full time. I do appreciate his Well, I would contend that some of and women striving to achieve new willingness to allow me to participate my caring has resulted in caretaking, goals and forming new hopes and in your hour’s time. not in caring, and that what I need to dreams for their own future. Mr. Speaker, this Republican major- truly do is be a caring person. And a Dedicated volunteers, and the true ity, this new Congress, has three objec- caring person is going to do more what Hoosier Heroes of the MOM’s program. tives. Our first objective is to get our Ann Landers says, and that is what Volunteers, like Wilma Ferguson, a re- financial house in order and balance have you taught them to do for them- tired school teacher, gives her time and our Federal budget, and at the same selves that will make them successful friendship every single week. time grow this economy. That is the human beings? Beth Quarles, the office manager, at first objective, and it is absolutely es- I have made a point in the last 4 the MOM program, has worked tire- sential that we succeed in it. years of my 9 years in Congress of ask- lessly to ensure that the program has Our second objective is to save our ing anyone who has had a difficult life, the funds and the resources needed to trust funds for future generations, par- that is perceived as difficult, and obvi- keep the center growing. Frances Gar- ticularly Medicare, from ultimate ously nobody walks in someone else’s rett makes sure that the students’ bankruptcy. In fact, Medicare part B, moccasins, all of us face difficult school projects and their art work is the health services that Medicare re- things, but people who have been raised displayed at the center. cipients receive, started to go insolvent in poverty, been raised by one parent Mrs. McGregor has two daughters— last year, not this year as expected. in poverty, people who may have had LaRessa and LaNeice, who are 5th Our third objective, Mr. Speaker, is an experience on drugs, a whole host of grade students enrolled in the program. to transform our caretaking social and different challenges that have faced Mrs. McGregor witnessed how the MOM corporate, I would even say farming them, and I have said what made a dif- program helped her own daughters and welfare state, into a caring oppor- ference in your life? Why are you the she decided to give something back. tunity society. successful person you are today? What She is now one of the top volunteer at Now, the words opportunity society was it in your life that made you so the MOM program. are words used by conservatives pri- successful? When I was young, I can remember marily. They are great words, and are Almost to a person, it was ‘‘Someone my mom tacking my drawings and as- words that have existed in this country in my life, my father, my mother, my signments to the refrigerator door—it in particular for well over 200 years. brother, my sister, my aunt or my was something so small, but it sure And they are preceded by the word uncle, my grandparent, somebody, a made me feel good, but you know, I ‘‘caring.’’ mentor, someone took an interest in took that for granted. Some of these This is not a conservative agenda me and taught me how to grow my own children, have never had their work that throws up our hands in the air and seeds.’’ tacked up on the refrigerator door. says, ‘‘You live in the cities, you were I think of parents who are raising But Frances Garrett makes sure raised by a crack mother, you did not their children, and I think well, in the their precious drawings, paintings, have much of an education. Too bad. final analysis, it is what you did for spelling tests, and high scored home- You are on your own.’’ your children or what you taught your work assignments are displayed. That is not the agenda. This agenda children to do for themselves that This is important to send a message is an agenda that is trying to help peo- made the difference? And to a person that hard work and accomplishments ple grow the seeds. they would not tolerate doing some- are honored. Students leave MOM pro- Mr. Speaker, we have an incredible thing for their children without teach- gram knowing in their hearts that opportunity to do what we have failed ing them what they can do for them- there is nothing they can’t do. to do for so many years. We are not selves, making them independent. April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3641 So I speak as someone who has been ference is the deficit. At the end of hard as they should, that police and part of this political process, saying I each year, these deficits just keep get- firemen simply were getting increases feel I have done a lot of things that ting added to our national debt. That is in salary without corresponding in- have made a positive difference in peo- what I want to focus in on. creases in productivity, and this very ple’s lives, but I have also looked and The national debt in 1945 was $260 bil- liberal Republican said, ‘‘I am going to seen that there are things that I have lion. Today it is $4.9 trillion. But I fight it,’’ and he fought it. not done, or things that I have done could go back to just 1974. After the The result was that the police went that have been in fact the exact oppo- Vietnam War, it was only about $430 on strike, the firemen went on strike, site of what I intended. billion. $430 billion. It is now $5.2 tril- the sanitation workers went on strike, This may sound a little harsh, but I lion, or $5,200 billion. It has gone up the welfare workers went on strike, the believe it to be true: Poor people do not well more than tenfold, 10 times. Not subway workers went on strike. They create jobs. Poor people need jobs. And one time or doubled or tripled, quad- all went on strike. The city shut down. sometimes the people who are going to rupled. It has gone up tenfold, 10 times, Did the people of New York City create those jobs happen to be people in 22 years. blame the workers for going on strike? No. They blamed the mayor. They who are well-to-do. b 1815 I went to a housing seminar and I thought he was incompetent, this in- was confronted by a group of people That is a disgrace. It is just simply a competent mayor that could not keep who think that we have given tax cuts disgrace. When people say to me that the city running. for the wealthy at the expense of the the deficits do not matter, I say I do And I draw parallels today. People poor, which simply is not true, but that not understand it. I simply do not un- are saying we cannot shut down the is what they think. But at the same derstand how it does not matter that Government; our job is to keep it run- time, they said to me, ‘‘Why aren’t you our national debt has grown 10 times in ning. Our job is to keep it running in a stronger advocate of the low income 22 years. the right way but not keep it running housing tax credit?’’ I think historians will look at the in the wrong way. This is a tax credit to provide hous- Congresses of the past and, frankly, the This mayor tried to confront that. ing for low income people. And I said to White House of the past, Republicans What was the result? The result was this group, think of what you are ask- and Democrats. Some Members of Con- that people thought he was incom- ing. It has a wonderful name. It is in gress on both sides of the aisle have petent. His polls went down, and he re- fact a fairly effective program. But the been wanting to control spending. The sponded to the polls and the people of low income housing tax credit is going White House never submitted balanced the city. He got the firemen back to to benefit the poor and the well-to-do. budgets from either party, and Con- work and the policemen back to work The people who get the tax credit are gresses never gave back balanced budg- and the sanitation workers back to the well-to-do. So the very group that ets. work. He got the welfare workers back was accusing me of having a tax credit So I basically make the argument to work. He got the subways running for the wealthy were asking me to vote that both parties have had their fingers again, but he did it by selling the city for a tax credit for the wealthy that in this mess called the national debt. down the river. had an intention to help the poor. But we have a party now in the major- He basically caved in. He gave up, This is really what we have to wres- ity that is willing to change that, will- and he got reelected. That was the tle with as a country. We have to be ing to stop it, willing to slow the message: Cave in, get reelected, sell honest with ourselves about a lot of growth in spending so it, ultimately, in the city down the tubes. This city went things. One, poor people do not create 7 years, equals the revenue that we re- bankrupt because of what happened. jobs, they need jobs. The people who ceive. No more deficits; therefore, no The city of New York went bankrupt, can help create these jobs are people increase to our national debt. and then again he was considered in- who have the financial resources to in- I think historians will look at the competent. He was considered incom- vest in new plant and equipment and last 20 years, will look at it much the petent when they went on strike. They invest in jobs in the process. way they looked at the Reconstruction liked him when he put everybody back There is another statement that I era after the Civil War, not a particu- to work, failing to realize that in order just have pondered a lot. I do not un- larly proud time in our history. I do to get them back to work he basically derstand how people can be pro-jobs not think it is a particularly proud had to agree to their side of the posi- and antibusiness. How can you say you time in some respects in terms of the tion. He basically sold out and paid want to create more jobs and they you national debt and what has happened them the increases in wages without want to be against the very people who to our society in a while host of dif- the corresponding increases in produc- create jobs? The fact is, you cannot. ferent ways since 1974 to this year now, tivity. Now, the Republican majority de- 1996, 22 years. I liken that to what I am experienc- cided to do something that no other I look at the national debt and I look ing today. I will not say it happens all majority in Congress has ever at- at what historians will say. I used to the time, but when the Government tempted to do in the past. We have de- just blame Republicans and Democrats, shut down during Thanksgiving I did cided to get our financial house in the White House and Congress. I have not want to open it up, and I would order, and we are doing it in a very rea- come to the conclusion that the Amer- vote to this day to keep it shut until sonable way. I am not saying every- ican people have a lot more to do with this generation is responsible to our thing we are attempting to do is per- this than I ever realized in the past, children. I would not have increased fect. I would not make that claim. But and I speak from personal experience the national debt because I think it is I have never been more proud to be on this issue. irresponsible to allow this national part of a party and part of a majority There was a Member of Congress who debt to keep growing when we have not than I am today. was a very liberal Republican named controlled the growth of entitlements. We are trying to slow the growth in John Lindsey, and he ran for mayor of But let me give everyone an example spending so it ultimately intersects New York City. He won. This moderate of a letter I received from a constitu- and is no greater than the revenue that to liberal, in fact very liberal Member ent, a good friend. I received a letter we receive. of Congress, made a determination that from a constituent outraged that the Now, people say we have a revenue he thought that the city could not af- Government had shut down. This hap- problem. That would be a hard one to ford the large increases in public sala- pened to be the shutdown during the understand, since revenues keep grow- ries that were happening without a cor- Christmas holidays, not a great time to ing. We do not have a revenue problem, responding increase in productivity. have Government shut down, not some- we have a spending problem. Our He felt it was wrong that sanitation thing I particularly liked, but I did spending keeps going up more than our workers completed their work before 11 know why it happened. revenue does. It never intersects, it o’clock in the day, did not work a full It happened primarily, not entirely means that we continually have reve- 8 hours. He thought it was wrong that but primarily because the President nue and then an expense, and that dif- welfare workers were not working as had vetoed certain appropriations bills. H3642 CONGRESSIONAL RECORD — HOUSE April 18, 1996 When he vetoed these bills, we ended is right out there in front, our deficits ple participating. Well, even with more up with no budget. When we had no are taking away money that could be people it is growing at 49 percent per budget, we had to shut down the Gov- invested in new plant and equipment, person. ernment. and the money that is being set aside So in response to the polls, one, I say I had constituents who said, well, we in savings, 42 percent of it is being gob- when the American people know the should give the President a budget that bled up to fund the national debt. truth, the polls will tell us to do what he wants. The problem is the budget he Why are we spending so much money we are doing. I really believe that. If I wants, in my judgment, bankrupts this of our savings to fund the national am wrong, I will be looking for a new country. I did not feel right about that. debt? Because our deficits keep grow- job. But I also think something else But this is the argument that I was ing and our national debt keeps grow- about the polls. Sometimes at critical receiving from some of my constitu- ing. moments in our history we have to do ents. Some of my constituents, not all I want to stop these deficits. I want what is right even if the polls tell us to but too many, frankly, said—one of interest rates to come down. I want do something slightly different or sig- them said, in so many words, ‘‘Dear businesses to be able to look at the in- nificantly different. CHRIS, I have always liked you, I have terest rates and know that it can pay I would make this comparison to always respected you and voted for for them to invest in new plant and what Abraham Lincoln found when he you, but never again. Your job was to equipment. came forward and was sworn in as keep this government running. You So what about the polls? Well, the President. When he was sworn in as failed in a very basic responsibility, polls tells us that 47 percent basically President, they had to sneak him into and I will not only not vote for you say the President is right, Congress is Washington. I want everyone to imag- again in the future, but I am going to cutting too much; 46 percent say Con- ine what it must have been like in Lin- actively work against you.’’ gress is right, we are cutting just right coln’s time when they literally had to Now, I could have accepted all of that or not enough. sneak him into Washington. They had to that point, but then he gave me his But they think that when we dealt to sneak him into Washington because big reason why. His big reason why was with the earned-income tax credit we his life was threatened. that his daughter wanted to study were cutting. They thought $19 billion When he was sworn in, seven States abroad, and she went to get her visa was going to be less in the 7th year, but decided to leave the Union. They said, and the passport office was closed the fact is the earned-income tax cred- we are out of here. When the seven down. So basically he was saying for it is a payment paid to people who States left the Union, a lot of the peo- his daughter he was outraged. work but do not make enough. They ple in the North said, what an incom- I began to think about it, and I actually get a payment from the tax- petent President. Already, practically thought, this is unbelievable. Mr. payers, a government check. Instead of before he has done anything, we have Rabin, the former Prime Minister of Is- giving the government money, as low- lost our country. It is breaking apart. rael, said politicians are elected by the income workers they actually get A lot of people in the North began to adults to represent the children, and I money from the Government, from the look with disdain at this, quote-un- am thinking about this. taxpayers. That is growing from $19 quote, incompetent, bumbling Presi- This is about his daughter, not about billion to $25 billion under our plan. dent. her getting a passport so she could The school lunch program is growing After the first few battles, and the study abroad. It is about the fact that from $5.2 to $6.8 billion. That is not a first year and second year and even if we continue our neglectful ways, our cut; that is an increase. The student into the third year, as the battles con- deficits will keep growing. Our debt loan program is growing from $24 bil- tinued and there was tremendous loss will keep growing and ultimately his lion to $36 billion. Medicaid is growing of life and some of the battles went daughter, his precious dear daughter, from $89 billion to $127 billion. Medi- against the North, a good number, will be paying anywhere from 60 to 80 care from $178 to $289 billion. there was even a greater conviction. percent of all the money she makes in Only in this place when we spend so All the powerful people in the North, taxes to Federal, State, and local gov- much more do people call it a cut. But the businessmen and women who were ernments. That is what this is about. It the press reports it as a cut, and the tied in with the military-industrial is about his daughter. And the fact is, unbelievable thing is that they think complex, for the most part were look- he just did not get it. we are cutting too much when we are ing to find a replacement for this, Now, I have to blame myself, because spending more. quote-unquote, incompetent president. I am an elected official and my job is Now, when the pollsters point out Abraham Lincoln could not have to help explain it and to teach and to that the student loan program is grow- been listening to the polls when he learn and to pay the consequences if I ing from $24 billion to $36 billion, and went to Gettysburg, the greatest vic- am not doing the right thing. There are they tell Americans the student loan tory to that point, and he was there to many things that we could probably be program is going to grow 50 percent, celebrate the victory of the North. He criticized for, but the one thing we can- the 46 percent that says we are cutting went there and gave a speech, and part not be criticized for is not wanting to just right or not enough actually grows of the speech talked about the brave do the right thing about getting our fi- to 66 percent, and the group that men, living and dead, who fought here. nancial house in order. This Repub- thinks we are cutting too much, that 47 He did not say the brave northern men. lican majority is determined to grow percent, drops down to about 33 per- Think of the temptation, given the this economy by ending these obscene cent. polls, to rally the North against the deficits that add to this national debt So one aspect of the polls is that South, to get them to hate the South, that has grown 10 times in 22 years. when the American people learn the to get people to say, what a great I had a number of constituents who truth, they want us to do what we are President, he is finally getting every- said, ‘‘Don’t you listen to the polls? doing. In fact, when we tell the Amer- body together. He could have unified Don’t you see what is happening?’’ I am ican people the truth, they will tell us the only people who could really vote thinking, yes, I am listening to the to do the right thing. I would contend for him, the North. polls. I see a lot of concerned and angry that they are not really hearing or He did not give in to that temptation people. There is reason to be con- learning from what they hear from the because he was a great President. He cerned. We have deficits that are grow- press what is happening. did not give in to the polls. Had he ing and growing and growing. I am con- Earned-income tax credits, school given in to the polls, he would have cerned. lunch, student loans, Medicare, and said ‘‘the brave northern men who There is reason to be disappointed Medicaid are growing. Medicare is fought here.’’ He just said ‘‘the brave with the growth of our economy that is growing on a per-person basis from men, living and dead, who fought only about 1 percent a year in the last $4,800 to $7,100 in the 7th year. It is here.’’ 20 years on average. I would contend growing, in dollar amounts, 60 percent He knew our country, knew there there is a very simple reason for it. from this year to the 7th year. Then were families that had to bury their There are probably a lot, but one that people say, yes, but we have more peo- northern son and their southern son. In April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3643 fact, one father during that time bur- tles around America. I am going to that died, but of the six crewmen on ied both sons in the same grave and the read that to set the scene on how the that airplane, the pilot was the same tombstone read, ‘‘Only God knows Clintons think they will retake the as our pilot, Ashley J. Davis; that is a which one was right.’’ White House, have 5 more years, be- man’s Ashley as in Ashley Wilkes. Ash- b 1830 come a rare Presidency like Eisen- ley was the cocommander on our flight, hower’s, Reagan’s; both had 8 years; on that C–43, used to be called a T–43, Mr. Speaker, I would just conclude, Roosevelt’s, 12 years and 82 days, small a civilian 737, and I was correct that T. thank God Abraham Lincoln did not part of a fourth term, and Teddy Roo- Sgt. Shelly A. Kelly, who was the prin- listen to the polls. Had he listened to sevelt’s short term of 8 years because cipal cabin steward for all of us in the the polls, we would not be one Nation, he achieved, was given the office, congressional section up front and got under God, indivisible. We would be through the tragic assassination of to know her at Aviano, going through two nations, very much divided. And I William McKinley, and Wilson who had the PX to get some shaving gear. She put the context of the debate that we earned 8 years, World War I saving told me a story about how on each trip are having today in the same context him, as it got Roosevelt a fourth term she buys two bottles of wine, her hus- that I put back in Lincoln’s time. We in the second World War I, part two of band is also assigned to Ramstein Air are doing what Mr. Rabin said we the greatest slaughter of all mankind, Base in Germany, and that he would do should do. We were truly elected by the World Wars I and II. But other than the same when he was on a cross-coun- adults, but we are trying to represent Teddy Roosevelt, Wilson, Franklin try, they would drink one in celebra- the children. We are trying to make Roosevelt, Eisenhower, and Reagan, tion of reuniting with their two chil- sure that our children have a future those five people, nobody in this cen- dren, and then they would save one. and a country they can be proud of. tury has had two terms. And she said, ‘‘We have quite a collec- And with that, Mr. Speaker, I just Clinton thinks the key to a second tion of wine from around the world’’. thank the gentleman from California term is the, quote, Catholic vote, so I Well, Shelly Kelly died serving her [Mr. DORNAN]. You were very nice to am going to read this analysis of what country, as did Capt. Ashley Davis, and give me this time, and I apologize to Mr. George Weigel, the President of the I am going to fly flags on the Capitol you for going over a little bit. Ethics and Public Center here in Wash- next week for them, get every one of Mr. DORNAN. Mr. Speaker, when I ington, DC, thinks is the Clinton strat- the Congressmen who were on CODEL said to my colleague I was enjoying it, egy, then read an article from Jose Callahan, and fly flags for the other I truly was. Kennard, who is head in Texas of the four crew members who were on the ill- PRESIDENT’S CATHOLIC STRATEGY Hispanic Caucus, and that letter was fated Secretary Ron Brown delegation. Mr. DORNAN. Mr. Speaker, some- read in part yesterday or the day be- I will just briefly give their names times when I take a special order before by people on both sides of the now. On our aircraft on March 1, 2, 3, cause there are good folks across the aisle. I am going to read it in toto, and and again on my birthday, April 3, country who follow the proceedings of then I will read, as I promised yester- when 35 people were killed: 35-year-old this House, they will call and say, ‘‘I day, the full text of this amazing his- Capt. Ashley J. Davis of Baton Rouge, enjoyed your words.’’ They never call, torical letter from eight princes of the LA, also married with two children; and say, and insult you, and say, ‘‘I am Catholic Church plus the Most Rev- again, T. Sgt. Kelly, Shelly A. Kelly, glad there was nobody there to hear erend Anthony Piela, President of the 36, Zanesville, OH, husband, two chil- you.’’ I guess maybe the negative calls National Council of Catholic Bishops. I dren; and the other four crew members, are smarter than the positive ones. will read this letter, and then I will Timothy Schafer, captain, 33 years of They know that a million people are leave it to people’s imagination to fig- age, just outside my own district, hearing you. But a lot of good people ure out how rough this fight is going to Costa Mesa, CA, 33 I said. T.Sgt. Cheryl will call in and say, ‘‘I appreciated be in the next 201 days, less than 200 Turnage 37, Lakehurst, NJ; Sgt. Robert what you were saying, I appreciated days when we adjourn again for legisla- Farrington, 34, Briarfield, AL; and the what Mr. SHAYS was saying, but no one tive business and votes on Tuesday youngest, 29-year-old S. Sgt. Gerald B. was listening.’’ next. Adlrich, from Louisiana—excuse me, Now the audience averages between a Then I will point out how we have a Louisville, IL; all six of them assigned million and a million and a half, and serious Catholic problem right in this to Ramstein. because of that, again as I seem to House with the numbers, and I would Much has been talked about across have closed out the Congress on the suggest to all of my Jewish and Protes- the country, justifiably so, about Mr. last two breaks, my special order is tant brothers, please listen intently. If Brown’s service to country, captain in final tonight, and I want to pick up on you think you have got division and Europe and in Korea, and all of the my 5 minutes last night where I said I problems in your denomination, listen CEO’s who will be so grievously missed would read in totality one of the most to how split the Catholics are in this by their families and their children. amazing letters in American history House. However, not a single Repub- But here are the six great Air Force from any Christian cleric or Christian lican Catholic, good, bad or indifferent, young folks: 29, 33, 34, 35 and 37, that leaders; in this case, they are Catholic voted for this partial-birth execution- went down on that ill-fated flight. cardinals, every one of them an arch- style abortion in this Chamber when it Mr. Speaker, tomorrow I will be bishop, joined by the bishop who is the came back from Senate conference going to a funeral for a true one-of-a- head of the National Catholic Con- with the slight differences worked out. kind, outstanding American hero, ference of Bishops against Mr. Clinton Before we do that, I want to take Medal of Honor winner, Vice Adm. for his veto of an overwhelming, over- care of three housekeeping things here. John D. Bulkeley. Vice Adm. John whelmingly passed bill in both the One is the crash of Ron Brown’s Air Bulkeley became known to me as a House and the Senate, a little tighter Force aircraft on my birthday, April 3. young 8-year-old boy, child , in 1942, 54- in the Senate, but overwhelmingly We had a unanimous vote for Mr. years ago, when as a PT boat com- passed here, against execution-style Brown, Secretary Brown, expressing mander, PT–41, he, under orders from partial-birth abortion of fetuses that our deep sorrow at losing for the first Washington, DC and Franklin Delano are children and babies in the process time in the line of duty a Cabinet offi- Roosevelt, tied up again in Corregidor of being delivered that absolutely cer in over almost a century and a half. and Bataan was soon to fall; this was could live outside the womb. I said yesterday that I thought the March 11 of 1942; and took Gen. Douglas So what I have done is picked up an majority of the crew was the crew that MacArthur, then a four-star, soon to be article that skillfully gives Mr. Clin- had flown me and five other Members, a five-star. Mrs. MacArthur and their ton’s Catholic strategy. That is the led by SONNY CALLAHAN of Alabama, to young son, name after another Medal title of the article from the newspaper Tuzla and Sarajevo and Hungary, two of Honor winner, Arthur MacArthur, in Los Angeles, the Tidings; used to be of the bases in Hungary and to Zagreb, Gen. Douglas MacArthur of course also my archdiocese newspaper, Mr. Clin- Croatia, and to our major air base, a Medal of Honor winner, the only fa- ton’s Catholic strategy. It is a syn- Aviano, in Italy. I was mercifully ther-son team in that hall of valor in dicated column, and it has different ti- wrong, not for the four other crewmen the Pentagon, the MacAruthurs, young H3644 CONGRESSIONAL RECORD — HOUSE April 18, 1996 Arthur MacAuthur was just a small New Republic, April 15 issue, Goodies early in his KGB career delivered by child. I think he was under 10 years of from the Venona files. That is the Akhmerov. According to Gordievsky, the age. The three of them and key staff name for some once top-top-top-secret ‘‘silver-haired’’ Akhmerov, who seemed to be got on PT–41, and through a Japanese Russian files. ‘‘Hiss’ Guilt’’ by Eric in his 60s, discussed Hiss and other American agents he’d controlled. Gordievsky—who did submarine screen made it down to Breindel. not have access to the Venona cables when Mindenao and eventually to Australia. b 1845 he produced his memoir—reports without That was in the end of Vice Admiral reservation that Alger Hiss’s Soviet Bulkeley’s service to his country. He is the editorial page editor of the codename was ‘‘Ales.’’ In a 1989 essay in The Building up to then he had earned the New York Post, a well-read syndicated New York Review of Books, intelligence his- nickname ‘‘Wild Man From Borneo,’’ columnist. torian Thomas Powers likewise declares that and I will do a special tribute to him Mr. Speaker, I include the article at Hiss was known to Moscow as ‘‘Ales.’’ next week. this point in the RECORD: Akhmerov, meanwhile, also turns up in ex- I had the honor of spending time with GOODIES FROM THE VENONA FILES: HISS’S NKVD General Pavel Sudaplatov’s 1994 mem- his daughters and sons-in-law and his GUILT oir, Special Tasks. It seems the high-level lovely wife at D-Day on the morning of (By Eric Breindel) ‘‘illegal’’ had direct responsibility not just for Hiss, but also for Michael Straight, a D-Day. Clinton infringed upon what Earlier this month, the National Security Agency released another batch of Soviet in- young aide to Interior Secretary Harold was to be Admiral Bulkeley’s moment Ickes. Straight, a former owner and editor of of memorial to all the people who died telligence cables intercepted during the Sec- ond World War and decrypted under the aus- the NEW REPUBLIC, knew his Soviet control- at sea in the D-Day invasion 2 years pices of the long-secret Venona project. The agent as ‘‘Michael Green.’’ Akhmerov also and 3 months after he had saved Gen- cables in question, which span a three-year came to supervise Elizabeth Bently—later an eral MacAruthur. He commanded all period (1943–1945), were dispatched to Moscow FBI informant—who knew her control only the PT boats at the Normandy inva- from New York, Washington and various as ‘‘Bill.’’ sion, went on to be a destroyer com- other North American stations. Gordievsky maintains that Akhmerov also mander and sink two German ships at In serious quarters, the authenticity of the managed to develop a secret relationship the end of the war, but he was to throw Venona cables has not been challenged. Even with Harry Hopkins, FDR’s top lieutenant hard-left historians long committed to the and closest political confidante. This claim the memorial wreath into the English innocence of Julius and Ethel Rosenberg provoked considerable controversy when Channel at dawn at the beginning of all have accepted them as genuine, despite the KGB: The Inside Story first appeared. In- the memorial ceremonies. fact that the intercepts prove the guilt of deed, the British historian Christopher An- The Congressmen that I was with the Rosenbergs and their confederates. drew—who co-authored the book with were not able to go out on the ship ex- The intercepted messages show that Mos- Gordievsky—prevailed upon the latter to de- cept two senior Democrat chairmen, cow, had at least 100 American agents pro- pict Hopkins as an ‘‘unconscious rather than and President Clinton asked to hold viding Soviet intelligence with classified in- a conscious’’ Soviet agent, implying that the wreath with John Bulkeley, throw formation during the war years. Even now, Hopkins merely saw Akhmerov as a useful many of these agents remain unidentified— back-channel to Stalin. it into the water. Given his own lack of due both to the use of ‘‘covernames’’ and to service and avoidance thereof three The Venona documents, however, suggest Washington’s failure to fully crack Moscow’s otherwise. In one cable—released late last times, it was a little rough for Admiral code. But it’s plain that most of the spies year—‘‘deputy’’ is the covername for a So- Bulkeley, but in the afternoon services were members or close associates of the viet agent who says he attended a May 1943 I asked him, I heard that the honor was American Communist Party. And this puts meeting in Washington, D.C., at which only taken away from me. He said, well, we the lie to the ancient claim that American two other parties were present. American ar- both held the wreath, but God under- Communists were merely New Deal ideal- chival records demonstrate that the meeting stood. ists—‘‘liberals in a hurry’’—who didn’t con- in question did, in fact, take place: the So I will go to his funeral tomorrow stitute any sort of fifth column. attendees were FDR, Churchill and—yes— The single most interesting document in Harry Hopkins. The decrypted cable makes morning, 10 o’clock, the Memorial the new Venona batch is a March 30, 1945, Chapel at Fort Myer. Any naval folks reference to Roosevelt, to Churchill and to Washintgon-to-Moscow message concerning ‘‘deputy.’’ The latter, apparently, briefed in the area or Army, Marine Corps of an agent whose covername is ‘‘Ales.’’ The ac- Akhmerov in detail directly after the ses- Air Force, you may not be able to get companying NSA glossary—prepared for in- sion. ternal use only, long before there was any in- in the church, but please come to the The meeting itself focused on an issue of dication that the intercepts might be re- ceremony and send this Medal of enormous importance to Moscow: whether or leased to the public—explains that ‘‘Ales’’ is Honor, great one-of-a-kind American not—and when—the Western allies would ‘‘probably’’ famed State Department official hero; well, he is already in heaven, but open a second front in the war on Hitler. In- and ostensible martyr of the American left, formation about how Churchill and Roo- give him a great fanfare and memorial Alger Hiss. Among Hiss apologists, much sevelt saw this matter certainly wasn’t sendoff. He was the Capitol here sev- will likely be made of the ‘‘probably.’’ But meant to reach Stalin—not by a back-chan- eral times. I was planning a lunch with careful perusal of the document—and the rel- nel and not by any other path. him with the freshmen, constructing a evant corroborating evidence—demonstrates PT boat 41, PT–41, to present to him, beyond doubt that Hiss was indeed a Soviet ‘‘Vadim’s’’ March 30, 1945, summary of Akhmerov’s ‘‘chat’’ with ‘‘Ales’’—who is and he always procrastinated, delay agent. In fact, almost everything in the message conforms to representations about Hiss identified specifically as a State Department things with heroes, and suddenly they official—confirms Chambers with respect to are gone to their regard. He was here in made by previous sources, including Whit- taker Chambers, the journalist (and Soviet important details. The Washington-Moscow the crypt area, where Washington and agent) who first exposed him. cable explains that ‘‘Ales’’ has been working Martha Washington were supposed to The cable in question was sent to Moscow with the ‘‘Neighbors continuously since be interred, to put a beautiful ceremo- by ‘‘Vadim’’—or Anatoli Gromov (actual sur- 1935.’’ The codebreakers determined that nial case to the Medal of Honor with name Gorski)—the NKVD’S station chief in ‘‘Neighbors’’—a term which appears regu- the original parrot Medal of Honor for Washington, D.C. (The NKVD was the fore- larly in the Venona intercepts—denotes a Soviet intelligence organization other than the great train chase in the Civil War runner of the KGB.) ‘‘Vadim’’ reports on a ‘‘chat’’ between ‘‘A’’ and ‘‘Ales’’ [Hiss]. Ac- the NKVD. The contest in which it is used in and he was there for that. other messages indicates that ‘‘Neighbors’’ When you call him at home, he would cording to the codebreakers, ‘‘A’’ is Iskhak A. Akhmerov * * *. As an ‘‘illegal,’’ refers to the GRU—Soviet military intel- answer the phone, ‘‘Report.’’ Quite a Akhmerov wasn’t attached to an official So- ligence. man. Served on active duty longer than viet mission. He lived in America—mostly in Chambers consistently described himself any naval officer I can thing of, with New York and in Washington—under various as a GRU—rather than NKVD—agent; and he the possible exception of our great nu- false names, assisted by forged documents. claimed, by extension, that Hiss, too, was af- clear scientist, the world’s No. 1 sub- Akhmerov, it should be noted, was first filiated with the GRU. On this point, many mariner. But Vice Adm. John Bulkeley identified as Hiss’s control-agent by ex-KGB will recall a ridiculous 1992 attempt to ‘‘ex- was either one or two. Colonel Oleg Gordievsky in the latter’s 1990 onerate’’ Hiss—trumpeted by The New York Next week I will also do a special memoir. Gordievsky, the KGB’s London sta- Times and the New Yorker—that came tion chief, defected to the West in 1985; he’d crashing down when Russian historian order on one of the most infamous trai- served as a British mole in Soviet intel- Dimitri Volkogonov, who’d announced his tors in American history, Alger Hiss. ligence for the prior eleven years. In his inability to locate archival material impli- Here is an article from, not a conserv- book, KGB: The Inside Story, Gordievsky re- cating Hiss in espionage, admitted that he ative magazine, but tries to be fair, the calls having attended a training lecture hadn’t examine any GRU files. (Volkogonov, April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3645 a serious scholar, appears to have been mis- ment of Hiss as Secretary-General of the Catholic orphanage? Has your bishop led by a Hiss acolyte affiliated with The Na- U.N.’s founding conference. The gesture, ob- been brought to the Oval Office to dis- tion, long America’s leading forum for Alger viously, wasn’t as generous as it appeared. cuss welfare reform?’’ Hiss apologia.) This article puts it away for any in- Or I might add the minimum wage. The key point is that Chambers—even on the issue of which Soviet intelligence service telligent thinking person. Alger Hiss, ‘‘Do you detect a far milder, less employed Hiss—is vindicated by an internal who is in his 80’s, going to take a life confrontational State Department atti- Soviet cable. Also noteworthy is ‘‘Vadim’s’’ of lying to his grave with him, kind of tude toward the Holy See, the Vatican, report that ‘‘Ales’’ had worked as an agency the counterpart to Admiral Bulkley. at last September’s world conference ‘‘continuously’’ since 1935. Chambers testi- He was a Russian spy in the 1930’s. He on women at Beijing? fied repeatedly that Hiss began providing in- was the Secretary-General of the World Conference on the culture of formation for transmission to Moscow in founding convention for the United Na- death. 1935. To be sure, Chambers also told authori- tions in San Francisco. He was at ‘‘Did you notice the President invok- ties that he couldn’t be sure whether or not Yalta in a room alone with Stalin, ing a conversation with the Holy Fa- Hiss continued to spy for Moscow after 1938, ther when he made his case for sending which is when Chambers himself broke with Churchill, and Franklin Delano Roo- the communist underground. Judging from sevelt passing everything he could to U.S. troops to Bosnia?’’ the 1945 cable, Hiss—undeterred by the most evil regime in terms of kill- Boy, did I ever and could not find out Chambers’s defection and unaffected by the ing human beings and torturing them if it was even true. 1939 Hitler-Stalin Pact—served the Soviets than any regime in the world including ‘‘Has Mrs. Clinton been spotted arm- at least through the end of the war. Hitler. American boys and allied men in-arm with Mother Teresa on the The newly released document explains spe- front page of your local daily? cifically that ‘‘Ales’’—‘‘for some years’’— and women died all over this planet to shut Hitler down in 12 years but Stalin ‘‘To borrow from medievals: We may functioned as ‘‘the leader of a small group of be reasonably sure that this is about Neighbor’s probationers, for the most part had 29 years to kill and murder and tear that country apart and the issue is substance, not accidents. consisting of his relations.’’ Insofar as the ‘‘Actually, that pun is philosophi- term ‘‘probationers’’ translates as agents, it still in doubt whether the great Rus- cally misplaced. For the substance of would seem that Hiss was running a small sian people can ever re-find their reli- Clinton administration policy, which GRU agent-group dominated by ‘‘relations,’’ gious roots or seek the free enterprise, has put it at cross-purposes with i.e., family members. free market system they are fighting Chambers—like Elizabeth Bentley—in- Catholic teaching on a host of issues, to achieve without crime completely sisted to the FBI that Alger’s brother, Don- hasn’t changed all that much. But the swallowing them. They went from serf- ald Hiss, was also a Soviet agent; Chambers accidents—the appearances, or as the dom right into Communist slavery and further claimed that Hiss’s wife, Priscilla, TV folks say, the images—have been was a communist who assisted her husband’s American traitors like Alger Hiss retooled more extensively than the 1996 espionage activities by copying classified helped extend that agony and he has State Department documents. Once again, Ford Taurus. his, I do not even want to call them lib- ‘‘And the reason why is self-evidently therefore, Venona buttresses Chambers’s tes- erals, they are beyond that, they are timony as well as Bentley’s. clear: The President is seeking re-elec- The March 30, 1945, cable refers to ‘‘Ales’s’’ rock hard radical leftists still in a tion and his handlers have concluded role as a member of the U.S. diplomatic sense fellow travelers still running that the Catholic vote is the key to his team at the Yalta summit, which took place around the country trying to express success. Thus the administration and earlier that same year. Hiss, of course, was doubt about his guilt from Ivy League the Clinton re-election campaign have part of the American delegation at Yalta. colleges to great universities on the been aggressively conducting Oper- This, in fact, is why the FBI focused on him west coast. Unbelievable. Alger Hiss is shortly after Igor Gouzenko—a code clerk at ation Catholic Seduction for months. guilty. It has never been said clearly ‘‘On the face of it, it seems a rather the Soviet Embassy in Ottawa who defected on this House floor. I am going to ask in 1945—told Canadian and British security brazen strategy.’’ officials that Moscow had its own agent in other Members to join me and see if we This is a month before the veto on Washington’s Yalta delegation. Gouzenko can do an hour on that. execution style abortion, by the way. identified the agent in question as an aide to Now the theme from here on, this ‘‘This is, after all, the President Secretary of State Edward Stettinius. Hiss, amazing historical letter. I am going to whose very first acts in office were to though several levels beneath the Secretary give the signatures first before I read sign executive orders widening the of State in the bureaucratic pecking order, George Weigel’s column and the res- availability of abortion-on-demand and did enjoy a notably close working relation- ignation from all positions of respon- lifting the ban on fetal tissue research. ship with Stettinius. The two men even sibility by Jose Kennard in Texas. called each other ‘‘Alger’’ and ‘‘Ed.’’ This is the President whose surgeon- According to the decrypted cable, ‘‘Ales’’ Signing the letter besides the afore- general, the unforgettable Joycelyn El- went on to Moscow after the Yalta summit. mentioned Bishop Pilla is Joseph Car- ders, was known for mocking a, quote, Here a single question seems central: Did dinal Bernardin, archbishop, Chicago; celibate, male-dominated church, un- Hiss, in fact, head to Moscow after Yalta? James Cardinal Hickey, archbishop of quote.’’ The answer is yes. Washington, DC. I will read it the way Attack on Catholicism. Actually, only four Americans who weren’t they signed it because they took the ‘‘This is the administration that U.S. Embassy staffers did so; most, like traditional placing of ‘‘Cardinal’’ in- President Roosevelt himself, managed to vastly expanded foreign aid funding for avoid the grueling trip through wartime stead of the middle name and they put Planned Parenthood,’’ the world’s larg- Russia. The four who traveled to Moscow— it at the beginning, so I should read it est abortion provider. all of whom flew on the Secretary of State’s the way they did it. ‘‘This is the administration that plane—included Stettinius himself, two ca- Cardinal Bernard Law, archbishop, hired Faith Mitchell.’’ reer diplomats and Hiss. None—apart from Boston; Cardinal Adam Maida, Detroit; What a first name. Hiss—can plausibly have been ‘‘Ales.’’ Cardinal Anthony Bevilacqua, Phila- ‘‘You don’t know Faith Mitchell? For The chief significance of the ‘‘Ales’’ docu- delphia; Cardinal Keeler—who spoke shame. She was the State Department ment consists not in the fact that it proves from the pulpit about this driving a so- official who, during the administra- Hiss’s role as a Soviet agent—only the willfully blind still believe in Hiss’s innocence. called Catholic U.S. Senator to get up tion’s battle with the Vatican over a What’s important is that the intercepted and remove herself from the church— universal, quote, right to abortion, un- cable provides strong new evidence that Hiss Cardinal Keeler of Baltimore; Cardinal quote, at the 1994 Cairo world popu- continued to serve Stalin long after Whit- Mahony, Los Angeles; Cardinal John lation conference, said that the taker Chambers severed his own ties to Mos- O’Connor, my good friend up in New Clintonistas, quote, suspect that the cow. Alger Hiss, it’s now plain, was still a York. pope’s opposition to the Clinton posi- Soviet agent in 1945—the year he traveled to Before I get to that letter, listen to tion has to do with the fact that the Yalta and organized the founding session of this, Mr. Speaker. Here are George conference is really calling for a new the United Nations in San Francisco. No wonder, then, that the young soviet dip- Weigel’s words: role for women, calling for girl’s edu- lomat Andrei Gromyko—in a rare moment of ‘‘Has your diocesan newspaper editor cation and improving the status of post-war Soviet-American cooperation—told been invited to interview the Presi- women, unquote.’’ his U.S. counterparts in the summer of ’45 dent? Has Hillary Rodham Clinton In other words, Faith Mitchell said that Moscow wouldn’t object to the appoint- made an appearance at your local that the Vatican was really trying to H3646 CONGRESSIONAL RECORD — HOUSE April 18, 1996 crush women and hold them down. Kennard of El Paso, TX, is probably a ‘‘Mr. President, with all due respect, That is why we objected to that dis- loyal Hispanic American and a good there is no valid reason for your ac- grace in Cairo. loyal Roman Catholic. He writes to tion, ethically or politically. And, it is Weigel continues: Clinton April 12, 6 days ago. certainly inconsistent with other posi- ‘‘This is, to make an end of it, the ‘‘Dear President Clinton: tions you have taken. President whose own ambassador to ‘‘Wednesday evening when I learned ‘‘Your presence and comments in the Vatican, a former Democratic that you had vetoed the partial-birth Oklahoma last week on the anniver- mayor of Boston,’’ I will put his name abortion bill, I felt stunned and angry. sary of the bombing tragedy—which in, Ray Flynn, ‘‘said he was embar- But mostly, I felt betrayed. will be tomorrow—reflected your deep rassed by the, quote, ugly anti-Catholic ‘‘Betrayal is a strong word. However, concern for those who perished, espe- bias shown by prominent Members of President Clinton, this is the anguish cially the children. Yet, you signed the Congress and the administration, un- that I and many Democrats across the death certificate on Wednesday— quote.’’ Nation feel now. As a dedicated Demo- Easter week, Easter Wednesday—for Thank you, former Mayor Ray Flynn, crat, I believed Bill Clinton during the countless, equally innocent children. Ambassador Flynn. primary campaign in Texas in 1992, and Several weeks ago I saw you visibly ‘‘Given this history, Operation in the general election as our nominee shaken when speaking of the mass Catholic Seduction set something of a when you vowed to protect the rights murder of children in Scotland. You record in campaign chutzpah.’’ You of individuals and to forge an era of the had a chance, with your vote, to pre- have to go to a good Yiddish word to New Democrat. An era that would vent a much greater tragedy. Mr. convey that hubris. Chutzpah. avoid extremism of either side. I cam- President, you choose instead to trade ‘‘Imagine James G. Blaine, fresh paigned for that Bill Clinton and stood those future lives for votes that you from denouncing Rum, Romanism, that proudly in the cold in Washington at perceive are crucial for your reelec- is, Catholicism, and Rebellion in your inauguration when you gave your tion.’’ 1884’’—he lost, of course—‘‘inviting message of hope for those who had no What does it profit a man to regain Cardinal Gibbons to tea and pleading voice. But last Wednesday, with your the White House even than jeopardize his undying affection for Pope Leo XII. veto, you ignored the rights of inno- his immortal soul. Those are my words, But President Clinton, whose political cent little children and literally sen- Mr. Speaker. skills no one should deny, can count. tenced them, thousands probably be- Jose continues: Catholics are heavily represented in fore this madness is brought to an end, ‘‘In the past 3 years I have seen you the States the Clinton-Gore team has to their deaths. time and time again speak out to the ‘‘Unlike the debate over abortion to win in November: California, and the thousands, maybe millions, of young that has been ongoing for decades, this big, electoral vote-rich states of the Americans who have been lost to the procedure is clearly the brutal taking Northeast and Midwest. streets in a life of murder, destruction of a human life.’’ ‘‘The Clinton handlers also know and mayhem, drugs and disease. You I want to repeat that line, Mr. Speak- have pleaded with them to have respect that, in the 1994 off-year election, the er. This partial-birth, execution-style Catholic vote went majority Repub- for human life. But, with this veto, you procedure is clearly the brutal taking did the opposite. And we, as party offi- lican—for the first time in history— of human life. and the result was that the Democrats cials, have been put in the untenable ‘‘The right-to-choose position of the position of having to live with that de- lost control of the House of Represent- Democratic Party has largely been atives for the first time since Dwight cision. driven by the belief that a fetus cannot ‘‘Mr. President, I cannot and will not D. Eisenhower was resident at 1600 survive outside the mother’s womb. Pennsylvania Avenue Northwest. Fool support this action. Therefore, I cannot But in this case, medical evidence is in good conscience support your can- me once, shame on you; fool me twice, clear that these babies could survive shame on me. didacy. but are destroyed in the most vicious ‘‘As I contemplated this matter over ‘‘Does Operation Catholic Seduction and inhumane way possible. Our soci- these past days, I was reminded of the have a chance?’’ ety demands that even dogs be de- words of the late President John F. Does it, Mr. Speaker? stroyed in a more humane fashion. ‘‘It’s already working in some quar- Kennedy when he said: Quote, some- ‘‘For what purpose, Mr. President, times party loyalty asks too much, un- ters. One bishop, fresh from an encoun- did you do this? To satisfy a minority ter with the President in the Oval Of- quote.’’ of extremists whose votes you would It is unbelievable that his nephew fice, reportedly told a friend, you have gotten anyway? And please, con- JOE voted for this partial-birth, execu- know, he speaks our language on a lot sider again your rationalization that tion-style abortion. of issues, quote-unquote. you acted, quote, to protect the safety ‘‘Thus, it is with regret and sorrow ‘‘Perhaps he does. But there is abun- of the mother, unquote, when the bill that on this date, April 12, 1996, I have dant evidence that this President has a permitted an exception if a doctor submitted my resignation as a member genius for suggesting one thing when deemed the procedure necessary to of the Texas State Democratic Execu- you’re in the room with him and doing save a mother’s life.’’ tive Committee and the Chair of the something else after you leave. More- That is never going to happen, be- Mexican-American Caucus. I have in- over, shared but highly contingent cause you do not protect any mother’s formed our State Chairman, Bill White. judgments on welfare reform do not life by holding a baby in the birth While I do not intend to actively sup- trump the encyclical evangelium canal, Mr. Speaker, and killing it, and port or vote for any Republican or vitae’’—getting the word out on life, exaggerating in extremis the birth Independent candidate, I will be asking preaching life—‘‘which poses a fun- process for the mother. What an absurd other Democrats to consider withhold- damental and unambiguous challenge thought. And that was made on the ing their support of your candidacy to the administration.’’ Senate floor and shut up one of the while continuing to support Democrats It is coming up, that challenge by lady Senators when BOB SMITH of New for other offices. every single cardinal in America. Hampshire asked her how that helped ‘‘Very truly yours, Jose R. Kennard, ‘‘Given what seems to be the Repub- the mother to delay the birth and hold State Committeeman, District 29.’’ lican instinct for suicide’’—I hear you, the baby in the womb so you could kill b George, it is there—‘‘Operation Catho- it and not be charged with infanticide 1900 lic Seduction may be a sideshow by the 60 seconds or 5 seconds later. Mr. Speaker, let me see if I can get fall. But it’s going full blast, just now. Back to Mr. Jose Kennard’s letter: through the Cardinals’ letter. This is And it’s having an effect on experi- ‘‘You know full well the bill would dated on my 41st wedding anniversary, enced people who ought to know bet- not have received the support of the my wife’s birthday, April 16, two days ter.’’ Council on Legislation of the American ago. Well, Operation Catholic Seduction Medical Society—and it did receive ‘‘Dear President Clinton: It is with may have come to a screeching halt. I that—and 73 Democrats in the House if deep sorrow and dismay that we re- do not know, but I believe Jose R. it did not.’’ spond to your April 10th veto of the April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3647

Partial-Birth,’’ and I add execution an’s overall ‘well beginning.’ For exam- Get this RECORD and read these style, ‘‘Abortion Ban Act.’’ Your veto ple, most people have no idea that if a Catholic names and pray for these 33 of this bill is beyond comprehension for woman has an abortion because she is people that would not come home and those of us who hold human life sacred. not married, the law considers that think they no more than Mother The- It will ensure the continued use of the abortion a ‘health’ reason.’’ resa, the Vicar of Christ of Earth and most heinous act to kill a tiny infant Mr. Speaker, I am going to jump to every single Catholic Cardinal in just seconds from taking his or her the signature page. ‘‘Writing this re- America. first breath outside the womb.’’ sponse to you in unison is on our part Mr. Speaker, the documents referred Mr. Speaker, when did we ever be- virtually unprecedented.’’ I believe it to follow: lieve that eight Catholic Cardinals, is unprecedented, not virtually. NATIONAL CONFERENCE OF CATHOLIC what in my faith we call Princes of the It will, we hope, underscore our,’’ the BISHOPS, OFFICE OF THE PRESI- DENT, Church, two liberals, a couple of mod- Cardinals and all the 300 Bishops, ‘‘resolve to be unremitting and unambig- Washington, DC, April 16, 1996. erates, and the rest generally conserv- President WILLIAM CLINTON, ative on theological issues, all of them uous in our defense of human life.’’ The White House, united, and they are deadly serious on Overwhelmingly the Episcopalian Washington, DC. this. Bishops, the Board of Governors of the DEAR PRESIDENT CLINTON: It is with deep Clinton with his 4 year Jesuit Southern Baptists, and every other de- sorrow and dismay that we respond to your Georgetown education; I had 7 years of nomination will weigh in in the major- April 10 veto of the Partial-Birth Abortion ity on this. Jewish Orthodox Rabbis Ban Act. Jesuit education. I asked my pal, Cato Your veto of this bill is beyond comprehen- Byrne, what is his thinking there? As have already condemned this. This whole page, page 2 of the 3 sion for those who hold human life sacred. It they say to people in the conservative will ensure the continued use of the most wing of the Republican Party, where pages, I do not have time to read, it is heinous act to kill a tiny infant just seconds else are they going to go if we pick a hard hitting language. I am coming from taking his or her first breath outside pro-choice Vice President candidate? back to the well to read this entire let- the womb. ter at the beginning of a special order. At the veto ceremony you told the Amer- We always say we man the phone But I want to close in about the ican people that you ‘‘had no choice but to banks, we energize a lot of races across minute I have left with this. veto the bill.’’ Mr. President, you and you this country. Not a single pro-life per- We have a Catholic problem in this alone had the choice of whether or not to son lost at the Governor, House or Sen- allow children, almost completely born, to House, Mr. Speaker. We have 129 be killed brutally in partial-birth abortions. ate level in 1994. Catholics here, almost 30 percent, 29.4 Cato Byrne told me the analysis is Members of both House of Congress made percent of the House. That is beyond that Clinton said we not only need their choice. They said NO to partial-birth the 23 or 24 percent American average. abortions. American women voters have them, sure they will be with us if I ac- This is the biggest denomination of made their choice. According to a February cept this ban, but we have to have Christians, by a long shot, in this 1996 poll by Fairbank, Maslin, Maullin & As- them energized. They are our core House, 128. sociates, 78 percent of women voters said NO base, like the homosexual activists. Fifty-seven are regularly pro-life; 59 to partial-birth abortions. Your choice was They are our fund raisers, they are our to say YES and to allow this killing more are regularly pro-death. Twelve are all akin to infanticide than abortion to con- phone bank people. over the place. All 12 voted against par- What a role of the dice he made here. tinue. tial-birth execution-style abortion, as During the veto ceremony you said you I will read the words of one Bishop, all did all 57 pro-lifers. Of the 59 who have had asked Congress to change H.R. 1833 to the Bishops are unified, 300 them, but been pro-abortion for the last year and allow partial-birth abortions to be done for eight Cardinals. 3 months, 26 we won back. But that ‘‘serious adverse health consequences’’ to the ‘‘It will ensure the continued use of leaves 33 Catholics, every one of them mother. You added that if Congress had in- the most heinous act to kill a tiny included that exception, ‘‘everyone in the a Democrat, who are subject to this world will know what we’re talking about.’’ fant just seconds from taking his or letter from the eight Cardinals just as her first breath outside the womb.’’ On the contrary, Mr. President, not every- much as President Clinton is. one in the world would know that ‘‘health,’’ ‘‘At the veto ceremony you told the Two of them are running for the Sen- as the courts define it in the context of abor- American people that you ‘had no ate with Catholic in their bio; one of tion, means virtually anything that has to choice but to veto the bill.’ Mr. Presi- them has already been banned from do with a woman’s overall ‘‘well being.’’ For dent, you and you alone had the choice speaking in New York City high example, most people have no idea that if a of whether or not to allow children al- schools. I guess I figured he lost it all woman has an abortion because she is not most completely born to be killed bru- married the law considers that an abortion anyway. Three Republicans who regu- for ‘‘health’’ reason. Similarly, if a woman is tally in partial-birth abortions. Mem- larly vote abortion did absent them- bers of both Houses of Congress made ‘‘too young’’ or ‘‘too old,’’ if she is emotion- selves. Out of courtesy to them I will ally upset by pregnancy, or if pregnancy their choice. They said no to partial- not mention their names. Thank heav- interferes with schooling or career, the law birth abortions. American women vot- ens they did that. considers those situations as ‘‘health’’ rea- ers have made their choice. According We got back a Catholic doctor from sons for abortion. In other words, as you to a February 1996 poll,’’ it is only 2 the heartland of America. One Senator know and we know, an exception for months ago, ‘‘by Fairbank, Maslin, was notably absent. We got back JOE ‘‘health’’ means abortion on demand. You say there is a difference between a Maullin & Associates, 78 percent of BIDEN. God bless you, JOE. you have women voters said no to partial-birth ‘‘health’’ exception and an exception for ‘‘se- been through a lot in life with family rious adverse health consequences.’’ Mr. execution style abortions. Your choice and your own surgeries. You are back. President, what is the difference—legally— was to say yes, to allow this killing But here are 10 Catholic Senators between a woman’s being too young and more akin to infanticide than abortion, with beautiful Polish names, mostly being ‘‘seriously’’ too young? What is the dif- to continue. Irish-American names, and one of them ference—legally—between being emotionally ‘‘During the veto ceremony you said is running for reelection in the senate, upset and being ‘‘seriously’’ emotionally you would ask Congress to change H.R. three are running for reelection. The upset? From your study of this issue, Mr. 1833 to allow partial-birth abortions to President, you must know that most partial- whole Boston delegation of Catholics is birth abortions are done for reasons that are be done for ‘‘serious adverse health torn apart by this. We won back a lot purely elective. consequences to the mother.’’ You of Good Democrats on this one vote. It was instructive that the veto ceremony added that if Congress had included Mr. Speaker, I am going to put this included no physician able to explain how a that exception, everyone in the world list in the RECORD at the end of my woman’s physical health is protected by al- will know what we are talking about.’’ speech. Then I will come back for page most fully delivering her living child, and ‘‘On the contrary,’’ the eight Car- 2, as a matter of fact, all three pages, then killing that child in the most inhumane dinals say, ‘‘Mr. President. Not every- manner imaginable before completing the next week. delivery. As a matter of fact, a partial-birth one in the world would know that Mr. Speaker, Let people who care get abortion presents a health risk to the ‘health’ as the courts defined it in the the CONGRESSIONAL RECORD of Jimmy woman. Dr. Warren Hern, who wrote the context of abortion means virtually Doolittle’s Bombing Tokyo Day, April most widely used textbook on how to per- anything that has to do with a wom- 18th, 54th anniversary. form abortions, has said of partial-birth H3648 CONGRESSIONAL RECORD — HOUSE April 18, 1996 abortions: ‘‘I would dispute any statement Ms. WOOLSEY, for 5 minutes, today. ENROLLED BILLS SIGNED that this is the safest procedure to use.’’ Mr. ABERCROMBIE, for 5 minutes, Mr. THOMAS, from the Committee Mr. President, all abortions are lethal for today. on House Oversight, reported that that unborn children, and many are unsafe for (The following Members (at the re- committee had examined and found their mothers. This is even more evident in quest of Mr. JONES) to revise and ex- truly enrolled bills of the House of the the late-term, partial-birth abortion, in tend their remarks and include extra- following titles, which were thereupon which children are killed cruelly, their neous material:) signed by the Speaker: mothers placed at risk, and the society that condones it brutalized in the process. Mr. MCINTOSH, for 5 minutes, today. H.R. 255. An act to designate the Federal Justice Building in Miami, Florida, as the As Catholic bishops and as citizens of the Mr. WOLF, for 5 minutes, today. ‘‘James Lawrence King Federal Justice United States, we strenuously oppose and Mr. GOSS, for 5 minutes, today. Building’’; condemn your veto of H.R. 1833 which will Mr. WELLER, for 5 minutes, today. H.R. 869. An act to designate the Federal allow partial-birth abortions to continue. (The following Member (at her own building and United States courthouse lo- in the coming weeks and months, each of request) to revise and extend her re- cated at 125 Market Street in Youngstown, us, as well as our bishops’ conference, will do marks and include extraneous mate- Ohio, as the ‘‘Thomas D. Lambros Federal all we can to educate people about partial- rial:) Building and United States Courthouse’’; birth abortions. We will inform them that H.R. 1804. An act to designate the United Ms. PELOSI, for 5 minutes, today. partial-birth abortions will continue because States Post Office-Courthouse located at you chose to veto H.R. 1833. (The following Member (at his own South 6th and Rogers Avenue, Fort Smith, We will also urge Catholics and other peo- request) to revise and extend his re- Arkansas, as the ‘‘Judge Isaac C. Parker ple of good will—including the 65% of self-de- marks and include extraneous mate- Federal Building’’; scribed ‘‘pro-choice’’ voters who oppose par- rial:) H.R. 2556. An act to redesignate the Fed- tial-birth abortions—to do all that they can Mr. MILLER of California, for 5 mineral building located at 345 Middlefield Road in Menlo Park, California, and known as the to urge Congress to override this shameful utes, today. Earth Sciences and Library Building, as the veto. f ‘‘Vincent E. McKelvey Federal Building’’; Mr. President, your action on this matter EXTENSION OF REMARKS and takes our nation to a critical turning point H.R. 2415. An act to designate the United in its treatment of helpless human beings in- By unanimous consent, permission to States Customs Administrative Building at side and outside the womb. It moves our na- revise and extend remarks was granted the Ysleta/Zaragoss Port of Entry located at tion one step further toward acceptance of to: 797 South Zaragosa Road in El Paso, Texas, infanticide. Combined with the two recent Mr. HYDE and to include extraneous as the ‘‘Timothy C. McCaghren Customs Ad- federal appeals court decisions seeking to le- material notwithstanding the fact that ministrative Building.’’ gitimize assisted suicide, it sounds the alarm it exceeds two pages of the RECORD and f that public officials are moving our society is estimated by the Public Printer to ADJOURNMENT ever more rapidly to embrace a culture of cost $2,221. death. Mr. DORNAN. Mr. Speaker, I move (The following Members (at the re- that the House do now adjourn. Writing this response to you in unison is, quest of Mr. ABERCROMBIE) and to in- on our part, virtually unprecedented. It will, clude extraneous matter:) The motion was agreed to; accord- we hope, underscore our resolve to be ingly (at 7 o’clock and 8 minutes p.m.), Mr. CLEMENT. unremitting and unambigous in our defense the House adjourned until tomorrow, of human life. Ms. DELAURO. Friday, April 19, 1996, at 10 a.m. Sincerely yours, Mr. CLAY. f Joseph Cardinal Bernardin, Archbishop Mr. MCNULTY. of Chicago; James Cardinal Hickey, Mr. HAMILTON in two instances. EXECUTIVE COMMUNICATIONS, Archbishop of Washington, D.C. ; Ber- ETC. Mr. TOWNS. nard Cardinal Law, Archbishop of Bos- Under clause 2 of rule XXIV, execu- Mr. BONIOR in two instances. ton; Adam Cardinal Maida, Archbishop tive communications were taken from of Detroit; Anthony Cardinal Mr. BENTSEN. the Speaker’s table and referred as fol- Bevilacqua, Archbishop of Philadel- (The following Members (at the re- lows: phia; William Cardinal Keeler, Arch- quest of Mr. JONES) and to include ex- bishop of Baltimore; Roger Cardinal traneous matter:) 2419. A letter from the Acting Assistant Secretary for Legislative Affairs, Depart- Mahony, Archbishop of Los Angeles; Mr. EHLERS. ment of State, transmitting the Depart- John Cardinal O’Connor, Archbishop of Mr. NEY. ment’s report on conditions in Hong Kong of New York; Most Reverend Anthony interest to the United States for the period Pilla, President, National Conference Mr. WATTS of Oklahoma in two instances. ending March 31, 1996, pursuant to 22 U.S.C. of Catholic Bishops. 5731; to the Committee on International Re- List is as follows: Mr. TORKILDSEN. lations. Mr. ALLARD. PRO-ABORTION CATHOLICS IN CONGRESS 2420. A letter from the Secretary of Veter- Mr. HORN. ans Affairs, transmitting the annual report Pastor, Becerra, Eshoo, George Miller, under the Federal Managers’ Financial In- Pelosi, Roybal-Allard, DeLauro, Kennelly, Mr. BURTON of Indiana in two instances. tegrity Act for fiscal year 1995, pursuant to Pete Peterson, McKinney, Durbin, Evans, 31 U.S.C. 3512(c)(3); to the Committee on Gutierrez, Visclosky, Baldacci, Joe Kennedy, Mr. KING. Government Reform and Oversight. Markey, Meehan, Luther, Vento, Clay, Mr. CUNNINGHAM. f McCarthy, Pat Williams, Menendez, Pallone, Mr. RADANOVICH. REPORTS OF COMMITTEES ON Hinchey, Rangel, Velazquez, DeFazio, Coyne, Mr. BLILEY. PUBLIC BILLS AND RESOLUTIONS Reed, Gonzalez. (The following Members (at the re- f Under clause 2 of rule XIII, reports of quest of Mr. DORNAN) and to include ex- committees were delivered to the Clerk SPECIAL ORDERS GRANTED traneous matter:) for printing and reference to the proper Mr. PACKARD. By unanimous consent, permission to calendar, as follows: address the House, following the legis- Mr. FRANKS of Connecticut. Mr. ARCHER: Committee on Ways and lative program and any special orders Mr. ROBERTS. heretofore entered, was granted to: Means. H.R. 2754. A bill to approve and im- Mr. BURTON of Indiana in two in- plement the OECD Shipbuilding Trade (The following Members (at the re- stances. Agreement; with an amendment (Rept. 104– quest of Mr. ABERCROMBIE) to revise Mr. SPENCE. 524 Pt. 1). Ordered to be printed. and extend their remarks and include Ms. ESHOO. Mr. SHUSTER: Committee on Transpor- extraneous material:) tation and Infrastructure. H.R. 2594. A bill to Mr. PALLONE, for 5 minutes, today. Mr. MARTINI. amend the Railroad Unemployment Insur- Mr. WISE, for 5 minutes, today. Ms. FURSE. ance Act to reduce the waiting period for Ms. DELAURO, for 5 minutes, today. Mr. LANTOS. benefits payable under that act, and for Mr. FAZIO of California. other purposes (Rept. 104–525). Referred to Ms. MILLENDER-MCDONALD, for 5 min- the Committee of the Whole House on the utes, today. Ms. JACKSON-LEE of Texas. State of the Union. Mr. RAHALL, for 5 minutes, today Mr. ROMERO-BARCELO´ . Mr. YOUNG of Alaska: Committee on Re- Mr. MARTINEZ, for 5 minutes, today. Mr. FRELINGHUYSEN. sources. H.R. 2660. A bill to increase the April 18, 1996 CONGRESSIONAL RECORD — HOUSE H3649 amount authorized to be appropriated to the adjustment assistance; to the Committee on H.R. 3279. A bill to provide for early de- Department of the Interior for the Tensas Ways and Means. ferred annuities under chapter 83 of title 5, River National Wildlife Refuge (Rept. 104– By Mr. GILLMOR (for himself, Mr. United States Code, for certain former De- 526). Referred to the Committee of the Whole FIELDS of Texas, Mr. BOUCHER, Mr. partment of Defense employees who are sep- House on the State of the Union. OXLEY, Mr. MANTON, and Mr. arated from service by reason of certain de- Mr. YOUNG of Alaska: Committee on Re- STEARNS): fense base closures, and for other purposes; sources. H.R. 2679. A bill to revise the bound- H.R. 3272. A bill to amend the Securities to the Committee on Government Reform ary of the North Platte National Wildlife Exchange Act of 1934 to require improved and Oversight. Refuge (Rept. 104–527). Referred to the Com- disclosure of corporate charitable contribu- By Mr. WAXMAN: mittee of the Whole House on the State of tions, and for other purposes; to the Commit- H.R. 3280. A bill to amend the Safe Drink- the Union. tee on Commerce. ing Water Act to guarantee the public’s right f By Mr. GILLMOR: to know about contaminants in their drink- TIME LIMITATION OF REFERRED H.R. 3273. A bill to amend the Securities ing water; to the Committee on Commerce. BILL Exchange Act of 1934 to require corporations By Mr. ENGLISH of Pennsylvania: to obtain the views of shareholders concern- H.J. Res. 172. Joint resolution proposing an Pursuant to clause 5 of rule X the fol- ing corporate charitable contributions; to amendment to the Constitution of the Unit- lowing action was taken by the Speak- the Committee on Commerce. ed States relating to contributions and exer: By Mr. GOSS: penditures intended to affect elections; to H.R. 2754. Referral to the Committee on H.R. 3274. A bill to amend the Federal Elec- the Committee on the Judiciary. National Security extended for a period end- tion Campaign Act of 1971 to reform House of By Mr. BREWSTER (for himself, Mr. ing not later than May 30, 1996. Representatives campaign finance laws, and BURR, Mr. FRANKS of New Jersey, Mr. f for other purposes; to the Committee on FRAZER, Mr. FROST, Mr. WAXMAN, Mr. House Oversight, and in addition to the Com- WATTS of Oklahoma, and Mr. PUBLIC BILLS AND RESOLUTIONS mittee on Commerce, for a period to be sub- COBURN): Under clause 5 of rule X and clause 4 sequently determined by the Speaker, in H. Con. Res. 164. Concurrent resolution of rule XXII, public bills and resolu- each case for consideration of such provi- honoring the national organization of Future tions were introduced and severally re- sions as fall within the jurisdiction of the Business Leaders of America—Phi Beta ferred as follows: committee concerned. Lambda; to the Committee on Economic and By Ms. PRYCE (for herself and Mr. Educational Opportunities. By Mr. DUNCAN (for himself, Mr. SHU- TIAHRT): By Mr. QUINN (for himself, Mr. BOR- STER, Mr. LIPINSKI, Mr. WELLER, Mr. H.R. 3275. A bill to amend the Indian Child SKI, Mr. FLANAGAN, Mr. KLECZKA, Mr. CLINGER, Mr. LIGHTFOOT, Mr. PAXON, Welfare Act to exempt from coverage of the HOKE, and Mr. JOHNSON of Connecti- and Mr. MARTINI): act child custody proceedings involving a cut): H.R. 3267. A bill to amend title 49, United child whose parents do not maintain signifi- H. Con. Res. 165. Concurrent resolution sa- States Code, to prohibit individuals who do luting and congratulating Polish people not hold a valid private pilots certificate cant social, cultural, or political affiliation with the tribe of which the parents are mem- around the world as, on May 3, 1996, they from manipulating the controls of aircraft in commemorate the 205th anniversary of the an attempt to set a record or engage in an bers, and for other purposes; to the Commit- tee on Resources. adoption of Poland’s first constitution; to aeronautical competition or aeronautical the Committee on International Relations, By Mr. RIGGS (for himself, Mrs. feat, and for other purposes; to the Commit- and in addition to the Committee on Govern- KELLY, Ms. LOFGREN, Mr. POSHARD, tee on Transportation and Infrastructure. ment Reform and Oversight, for a period to and Mr. NORWOOD): By Mr. CUNNINGHAM: be subsequently determined by the Speaker, H.R. 3268 A bill to amend the Individuals H.R. 3276. A bill to provide that, to receive in each case for consideration of such provi- with Disabilities Education Act, to reauthor- their pay, Members of Congress are required sions as fall within the jurisdiction of the ize and make improvements to that act, and to certify that they have performed their committee concerned. for other purposes; to the Committee on Eco- congressional duties, and for other purposes; By Mr. STOCKMAN: to the Committee on House Oversight. nomic and Educational Opportunities. H. Con. Res. 166. Concurrent resolution au- By Mr. CUNNINGHAM (for himself, By Mr. SMITH of Texas (for himself, thorizing the use of the Capitol Grounds for Mrs. MINK of Hawaii, and Mr. Mr. CONDIT, Mr. DELAY, Mr. CLINGER, the Washington for Jesus 1996 prayer rally; BILBRAY): Mr. MCINTOSH, Mr. PETE GEREN of to the Committee on Transportation and In- H.R. 3269. A bill to amend the Impact Aid Texas, Mr. HASTERT, Mr. PETERSON of frastructure. Minnesota, Mr. MILLER of Florida, Program to provide for a hold-harmless with By Mr. GEPHARDT (for himself, Mr. Mr. WICKER, Mr. STOCKMAN, Mr. respect to amounts for payments relating to GINGRICH, Mrs. MEEK of Florida, Mr. HERGER, Mr. ROHRABACHER, Mr. the Federal acquisition of real property and DINGELL, Mr.PAYNE of New Jersey, FUNDERBURK, Mr. WELLER, Mr. for other purposes; to the Committee on Eco- Mr. CONYERS, Mr. FORD, Mrs. COLLINS COBLE, Mr. PARKER, Mrs. CHENOWETH, nomic and Educational Opportunities. of Illinois, Mrs. CLAYTON, Mr. RAN- Mr. BUNNING of Kentucky, Mr. By Mr. DOOLITTLE (for himself, Mr. GEL, Mr. OWENS, Mr. FIELDS of Lou- LAUGHLIN, Mr. LEWIS of Kentucky, MATSUI, Mr. FAZIO of California, Mr. isiana, Mr. HILLIARD, Mr. FRAZER, Mr. LARGENT, Mr. EMERSON, Mr. POMBO, Mr. HERGER, Mr. RADANOVICH, Ms. NORTON, Mr. WYNN, Mr. DELLUMS, DEAL of Georgia, Mr. NORWOOD, Mr. Mr. CONDIT, and Mr. DOOLEY): Mr. JEFFERSON, Mr. DIXON, Mr. RUSH, THORNBERRY, Mr. DUNCAN, Mr. H.R. 3270. A bill to authorize and direct the Ms. MCKINNEY, Mr. CLAY, Ms. JACK- HOSTETTLER, Mr. GUTKNECHT, Mr. Secretary of the Army to expeditiously con- SON-LEE, Mr. BISHOP, Mr. HOYER, Mr. COBURN, Mr. COOLEY, Mr. FIELDS of struct a project for flood control on the Sac- MATSUI, Mrs. MINK of Hawaii, Mr. Texas, Mr. GEKAS, Mr. BARTON of ramento and American Rivers, CA, and to RAHALL, Mr. BARRETT of Wisconsin, Texas, Mr. COMBEST, Mr. ARCHER, Mr. authorize and direct the Secretary of the In- Mr. GEJDENSON, Mr. COLEMAN, Mr. TAUZIN, and Mr. DAVIS): terior and the Secretary of the Army to GORDON, Mr. BROWN of California, Ms. H.R. 3277. A bill to ensure congressional enter into agreements that allow the State HARMAN, Mrs. KENNELLY, Mr. SAW- approval of the amount of compliance costs of California or other non-Federal sponsors YER, Ms. LOFGREN, Mr. BONIOR, Mr. imposed on the private sector by regulations to construct, without cost to the United FAZIO of California, Mr. FROST, Mr. issued under new or reauthorized Federal States, a multipurpose dam and related fa- LEWIS of Georgia, Ms. DELAURO, Mr. laws; to the Committee on Government Re- cilities at Auburn on the American River; to EDWARDS, Mr. CARDIN, Mr. PALLONE, form and Oversight, and in addition to the the Committee on Transportation and Infra- Mr. STENHOLM, Mr. LEVIN, Mr. Committee on Rules, for a period to be sub- structure, and in addition to the Committee STUPAK, Mr. SCHUMER, Mr. JOHNSTON sequently determined by the Speaker, in on Resources, for a period to be subsequently of Florida, Ms. PELOSI, Mr. REED, Mr. each case for consideration of such provi- determined by the Speaker, in each case for BERMAN, Mr. MILLER of California, sions as fall within the jurisdiction of the consideration of such provisions as fall with- Mr. SABO, Mr. VOLKMER, Mr. OBER- committee concerned. in the jurisdiction of the committee con- STAR, Mr. SKAGGS, Mr. DURBIN, Mr. cerned. By Mr. STUPAK: NEAL of Massachusetts, Mr. FRANK of By Mr. ENGLISH of Pennsylvania (for H.R. 3278. A bill to direct the Secretary of Massachusetts, Ms. WOOLSEY, himself, Mr. HOUGHTON, Mr. TRAFI- Transportation to convey the St. Helena Is- Mr.BENTSEN, Ms. EDDIE BERNICE CANT, Mr. HOLDEN, Mr. GREEN of land Light Station to the Great Lakes Light- JOHNSON of Texas, Mr. OBEY, Mr. Texas, Mr. RAHALL, Ms. MCKINNEY, house Keepers Association; to the Commit- OLVER, Mr. ABERCROMBIE, Mr. BOR- Mr. SPRATT, Mr. LIPINSKI, Mr. KEN- tee on Transportation and Infrastructure. SKI, Mr. STUDDS, Mr. STOKES, Mr. NEDY of Massachusetts, Mr. KLINK, By Mr. WARD (for himself, Mr. HAMIL- MEEHAN, Mr. BALDACCI, Mr. MCHALE, Mr. CALVERT, and Mr. NEY): TON, Mr. FAZIO of California, Mr. Mr. SKELTON, Mr. MASCARA, Mr. H.R. 3271. A bill to amend the Trade Act of MATSUI, Mr. JACOBS, Mr. MYERS of CLYBURN, Mr. FILNER, Mr. BARCIA of 1974 to extend the period of time within Indiana, Mr. TEJEDA, Mr. LEWIS of Michigan, Mr. KLECZKA, Mr. ACKER- which workers may file a petition for trade Kentucky, and Mr. SHUSTER): MAN, Mr. HINCHEY, Mr. DEUTSCH, Mrs. H3650 CONGRESSIONAL RECORD — HOUSE April 18, 1996

MALONEY, Mr. JACKSON, Mr. DOYLE, H.R. 2244: Mr. SALMON. H.R. 3236: Mr. BRYANT of Tennessee, Mr. Ms. BROWN of Florida, Mr. TAYLOR of H.R. 2247: Mr. ENGEL, Mr. GORDON, Mr. MCCRERY, Mr. THOMPSON, Mr. MCHUGH, and Mississippi, Miss COLLINS of Michi- HASTINGS of Florida, Mr. OBERSTAR, and Mr. Mr. WALSH. gan, Mr. FATTAH, Mr. TRAFICANT, Mr. OWENS. H.R. 3238: Mr. THOMPSON. TOWNS, Mr. YATES, Mr. THORNTON, H.R. 2271: Mr. DELLUMS, Mr. ENGEL, and Mr. SCOTT, Mr. KANJORSKI, Mr. H.R. 3246: Mr. MEEHAN, Ms. LOFGREN, Mr. POSHARD, Mr. LANTOS, Mr. EVANS, Mr. LIPINSKI. MILLER of California, Mr. BARRETT of Wis- Mr. MARTINEZ, Mr. HALL of Ohio, Mr. H.R. 2320: Mrs. MEYERS of Kansas, Mr. consin, Mr. FROST, and Mr. LIPINSKI. ANDREWS, Mr. BOUCHER, Mr. NADLER, POMEROY, Mr. TALENT, Mr. GALLEGLY, and H.R. 3248: Mr. BILIRAKIS. Mr. ROMERO-BARCELO, Mr. MARKEY, Mrs. SEASTRAND. H.R. 3250: Mr. LIPINSKI and Mr. POSHARD. Mr. STARK, Mr. MANTON, Mr. COYNE, H.R. 2472: Mr. LEWIS of Georgia, Mr. MAS- H.J. Res. 167: Mr. HANCOCK, Mr. HOKE, Mr. Mr. WATT of North Carolina, Mr. CARA, Mr. ABERCROMBIE, Mr. PALLONE, and MOAKLEY, Mr. GREEN of Texas, Mr. LIPINSKI, and Mr. CALVERT. Mr. HINCHEY. UNDERWOOD, Mr. KLINK, Ms. ESHOO, H.R. 2508: Mr. MATSUI, Mr. BEVILL, and Mr. H. Con. Res. 47: Mr. BARCIA of Michigan Mr. RICHARDSON, Mr. WARD, Mr. and Mr. THOMPSON. COSTELLO, Mr. SPRATT, Mr. ENGEL, TRAFICANT. H. Con. Res. 83: Mr. GREEN of Texas. Mr. VISCLOSKY, Ms. WATERS, Mr. LU- H.R. 2531: Mr. BUNNING of Kentucky. THER, Mr. KENNEDY of Massachusetts, H.R. 2548: Mr. LATOURETTE, Mr. CREMEANS, H. Con. Res. 154: Mr. ARMEY, Mr. BAKER of Mr. FARR, Mr. WAXMAN, Ms. FURSE, and Mr. NETHERCUTT. Louisiana, Mr. BARR, Mr. BARRETT of Ne- Mr. THOMPSON, Mr. DE LA GARZA, Mr. H.R. 2579: Mr. KIM and Ms. ROYBAL-AL- braska, Mr. BARTLETT of Maryland, Mr. FLAKE, Ms. MILLENDER-MCDONALD, LARD. BENTSEN, Mr. BILBRAY, Mr. BOEHLERT, Mr. and Mr. FORBES): H.R. 2602: Mr. HASTINGS of Florida. BONILLA, Mr. BROWNBACK, Mr. BRYANT of H. Res. 406. Resolution in tribute to Sec- H.R. 2634: Mr. RAHALL. Tennessee, Mr. BURR, Mr. CALVERT, Mr. retary of Commerce Ronald H. Brown and other Americans who lost their lives on H.R. 2724: Mr. ABERCROMBIE, Mr. OLVER, CAMPBELL, Mr. CANADY, Mr. CHABOT, Mr. April 3, 1996, while in service to their coun- Mr. CONYERS, Mr. KLINK, and Mr. BORSKI. CHAMBLISS, Mr. CHRISTENSEN, Mr. CHRYSLER, try on a mission to Bosnia; considered and H.R. 2725: Mr. ABERCROMBIE, Mr. OLVER, Mrs. CLAYTON, Mr. COBURN, Mr. COLLINS of agreed to. Mr. CONYERS, Mr. KLINK, and Mr. BORSKI. Georgia, Mr. COMBEST, Mr. CONDIT, Mr. By Mr. SCHUMER: H.R. 2757: Mrs. THURMAN and Mr. LUCAS. COSTELLO, Mr. CRANE, Mr. CRAPO, Mr. H. Res. 407. Resolution condemning the Na- H.R. 2807: Mr. LEWIS of Georgia and Mr. CREMEANS, Mr. CUNNINGHAM, Mr. DAVIS, Mr. tional Rifle Association for holding its an- DOOLEY. DELAY, Mr. DIAZ-BALART, Mr. DICKEY, Mr. nual convention on the anniversary of the H.R. 2843: Mr. BILIRAKIS. DICKS, Mr. DOOLITTLE, Mr. DORNAN, Mr. bombing of the Alfred P. Murrah Federal H.R. 2856: Mr. PALLONE, Mrs. MALONEY, and DREIER, Mr. DUNCAN, Ms. DUNN of Washing- Building in Oklahoma City, OK; to the Com- Ms. EDDIE BERNICE JOHNSON of Texas. mittee on Government Reform and Over- ton, Mr. EHLERS, Mr. EMERSON, Mr. ENGLISH sight. H.R. 2931: Ms. VELAZQUEZ. of Pennsylvania, Mr. ENSIGN, Ms. ESHOO, Mr. H.R. 2938: Mr. CAMP, Mrs. FOWLER, Mr. f EWING, Mr. FALEOMAVAEGA, Mr. FLANAGAN, UPTON, Mr. LARGENT, Mr. QUINN, Mr. GUN- Mr. FOX, Mr. FRANK of Massachusetts, Mr. ADDITIONAL SPONSORS DERSON, Mr. CRAPO, Mr. THORNBERRY, Mr. FRELINGHUYSEN, Mr. FRISA, Mr. GALLEGLY, Under clause 4 of rule XXII, sponsors LAHOOD, Mr. FOLEY, and Mr. HALL of Ohio. Mr. GANSKE, Mr. GEJDENSON, Mr. GEKAS, Mr. were added to public bills and resolu- H.R. 3012: Mr. SCARBOROUGH, Mr. BROWN of GILCHREST, Mr. GILMAN, Mr. GREEN of Texas, tions as follows: California, Mr. LIPINSKI, Mr. STUPAK, Mr. Mr. GUNDERSON, Mr. HALL of Texas, Mr. HAN- ABERCROMBIE, Mr. RAHALL, Mr. WOLF, Mr. H.R. 65: Mr. BAKER of California and Mr. COCK, Mr. HAYWORTH, Mr. HEINEMAN, Mr. DICKEY. ORTIZ, Mr. HALL of Texas, Mr. EHRLICH, Mr. HERGER, Mr. HOEKSTRA, Mr. HOKE, Mr. HORN, H.R. 103: Mr. BISHOP. VOLKMER, Mr. GONZALEZ, Mr. TORRES, and Mr. HOSTETTLER, Mr. HOUGHTON, Mr. HUN- H.R. 109: Mr. STARK. Mr. OLVER. TER, Mr. HUTCHINSON, Mr. SAM JOHNSON, Mr. H.R. 3050: Mr. SKELTON. H.R. 303: Mr. BAKER of California, Mr. KASICH, Mr. KIM, Mr. LAHOOD, Mr. LANTOS, COBURN, and Mr. DICKEY. H.R. 3059: Mr. FILNER, Mr. DELLUMS, and Mr. LARGENT, Mr. LATHAM, Mr. LATOURETTE, H.R. 488: Mr. GUTIERREZ. Mr. YATES. Mr. LAUGHLIN, Mr. LEWIS of Kentucky, Mr. H.R. 598: Mr. POMEROY, Mr. LUTHER, Mr. H.R. 3060: Mr. SENSENBRENNER, Mr. BART- LINDER, Mr. LIVINGSTON, Mr. LOBIONDO, Mr. CALLAHAN, and Mr. BRYANT of Tennessee. LETT of Maryland, and Mr. WELDON of Flor- LONGLEY, Mr. MANZULLO, Mr. MCCRERY, Mr. H.R. 739: Mr. LAUGHLIN and Mr. MONTGOM- ida. MCINTOSH, Mr. MCKEON, Mrs. MEEK of Flor- ERY. H.R. 3078: Mr. ENGLISH of Pennsylvania, ida, Mr. METCALF, Mrs. MEYERS of Kansas, H.R. 820: Mr. MILLER of California and Mr. Mr. BALLENGER, Mrs. KELLY, Mr. BLUTE, and Mr. MICA, Mr. MONTGOMERY, Mr. CREMEANS. Mr. PICKETT. NETHERCUTT, Mr. NEUMANN, Mr. NORWOOD, H.R. 885: Mr. LAZIO of New York and Mr. H.R. 3081: Mr. STARK, Mr. FRAZER, Ms. Mr. NUSSLE, Mr. ORTIZ, Mr. PARKER, Mr. FRISA. PELOSI, Mr. UNDERWOOD, Mr. FATTAH, Mr. PORTMAN, Ms. PRYCE, Mr. QUILLEN, Mr. H.R. 940: Mr. MCHALE. DELLUMS, Mr. BLUTE, Ms. LOFGREN, Mr. RADANOVICH, Mr. ROBERTS, Ms. ROS- H.R. 941: Mr. SMITH of New Jersey and Mr. TORRES, Mr. THOMPSON, and Mr. DOOLEY. LEHTINEN, Mr. ROSE, Mr. ROTH, Mr. ROYCE, OLVER. H.R. 3119: Mr. FALEOMAVAEGA and Mr. Mr. SABO, Mr. SANFORD, Mrs. SEASTRAND, H.R. 997: Mr. FRANK of Massachusetts. MANTON. Mr. SHADEGG, Mr. SMITH of Michigan, Mr. H.R. 1000: Mr. ANDREWS and Mr. PORTER. H.R. 3142: Mr. HOYER, Mr. FAZIO of Califor- SOUDER, Mr. STEARNS, Mr. STENHOLM, Mr. H.R. 1078: Mr. DEFAZIO. nia, Mr. SPRATT, Mrs. VUCANOVICH, Mr. MIL- STOCKMAN, Mr. STUMP, Mr. TALENT, Mr. TAY- H.R. 1363: Mr. SAM JOHNSON. LER of Florida, Mr. SCHAEFER, Mrs. H.R. 1386: Mr. HEINEMAN, Mr. LATHAM, and LOR of Mississippi, Mr. THOMAS, Mr. MORELLA, and Mrs. SCHROEDER. THORNBERRY, Mr. THORNTON, Mr. TIAHRT, Mr. Mr. COOLEY. H.R. 3152: Mr. CAMPBELL. H.R. 1462: Mr. STUPAK, Mr. HOLDEN, Mr. TORKILDSEN, Mr. TOWNS, Mr. TRAFICANT, Mr. H.R. 3161: Mr. BEREUTER. MCHALE, Mrs. SCHROEDER, Mr. KANJORSKI, VOLKMER, Mrs. VUCANOVICH, Mrs. GREENE of H.R. 3167: Mrs. MALONEY. C ADE ONGLEY Utah, Mr. WAMP, Mr. WATTS of Oklahoma, Mr. M D , and Mr. L . H.R. 3168: Ms. PELOSI. H.R. 1484: Ms. MCKINNEY. Mr. WELDON of Florida, Mr. WELLER, Mr. H.R. 3173: Mr. EVANS, Mr. REGULA, Mr. H.R. 1684: Mr. GEKAS, Mr. GOSS, Mr. WHITE, Mr. WHITFIELD, Mr. WICKER, Mr. GUTIERREZ, Mr. NADLER, and Mr. WELDON of MCCOLLUM, Mr. MILLER of Florida, Mr. PACK- WOLF, Mr. YOUNG of Alaska, and Mr. ZIMMER. Pennsylvania. ARD, Ms. ROS-LEHTINEN, Mr. THOMAS, Mr. H. Con. Res. 156: Ms. LOFGREN, Mr. TORRES, H.R. 3174: Mrs. JOHNSON of Connecticut, WALKER, Mr. YOUNG of Florida, and Mr. Ms. ROYBAL-ALLARD, Mr. STUPAK, Mr. Mr. MCDERMOTT, Ms. PELOSI, Mrs. CLAYTON, TRAFICANT. THOMPSON, Mr. WATT of North Carolina, and Ms. DANNER, Mr. FILNER, Mr. HILLIARD, Mr. H.R. 1713: Mr. THORNBERRY and Mr. LEWIS Mr. COBURN. FROST, Ms. NORTON, Mr. STUDDS, Mr. FRAZ- of Kentucky. H. Res. 49: Mr. BONIOR, Ms. VELA´ ZQUEZ, Mr. ER, Mr. HINCHEY, Ms. WATERS, Ms. LOFGREN, H.R. 1776: Ms. PELOSI, Mr. OLVER, Mr. REED, and Mr. DELLUMS. and Ms. ROYBAL-ALLARD. GUTIERREZ, Mr. TEJEDA, Mr. HEINEMAN, Mrs. H.R. 3176: Mrs. JOHNSON of Connecticut, MINK of Hawaii, Mr. FRANK of Massachu- Mr. MCDERMOTT, Ms. PELOSI, Mrs. CLAYTON, f setts, Mr. CUNNINGHAM, Mr. LEACH, and Mr. Ms. BROWN of Florida, Ms. DANNER, Mr. HUNTER. FILNER, Mr. HILLIARD, Mr. FROST, Ms. NOR- H.R. 1797: Ms. ROYBAL-ALLARD, Ms. DELETIONS OF SPONSORS FROM TON, Mr. STUDDS, Mr. FRAZER, Mr. HINCHEY, LOFGREN, and Mr. STUPAK. PUBLIC BILLS AND RESOLUTIONS H.R. 1841: Mr. LATHAM. Ms. WATERS, Ms. LOFGREN, and Ms. ROYBAL- H.R. 1957: Mr. GUTIERREZ. ALLARD. Under clause 4 of rule XXII, sponsors H.R. 2011: Ms. ROYBAL-ALLARD. H.R. 3187: Mr. TRAFICANT, Ms. BROWN of were deleted from public bills and reso- H.R. 2019: Mr. SAXTON, Mr. GILMAN, and Mr. Florida, Mr. RAHALL, Ms. EDDIE BERNICE lutions as follows: BARTLETT of Maryland. JOHNSON of Texas, Mr. THOMPSON, and Mr. H.R. 2134: Mr. MCKEON. HILLIARD. H.R. 789: Mr. RIGGS. H.R. 2185: Mr. RAHALL, Mr. DEUTSCH, Mr. H.R. 3195: Mr. PARKER. H.R. 2060: Mr. BURTON of Indiana. OLVER, Mrs. MALONEY, Mr. BOUCHER, Mrs. H.R. 3223: Mr. BEREUTER. H.R. 2472: Mr. RIGGS. KELLY, Mr. COYNE, and Mr. KILDEE. H.R. 3224: Mr. FOX and Mr. SKEEN. H.R. 2823: Mr. DEFAZIO. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 104 CONGRESS, SECOND SESSION

Vol. 142 WASHINGTON, THURSDAY, APRIL 18, 1996 No. 50 Senate

The Senate met at 9:30 a.m., and was if agreement can be reached with re- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. called to order by the President pro spect to relevant amendments. That is (a) SHORT TITLE.—This Act may be cited as tempore [Mr. THURMOND]. probably unlikely. the ‘‘Health Insurance Reform Act of 1995’’. Then, on next Monday, or tomorrow, (b) TABLE OF CONTENTS.—The table of contents for this Act is as follows: PRAYER we hope to start the debate on term The Chaplain, Dr. Lloyd John Sec. 1. Short title; table of contents. limits. We will be announcing more on Sec. 2. Definitions. Ogilvie, offered the following prayer: that later. But we do hope to complete In our prayer this morning, let us TITLE I—HEALTH CARE ACCESS, action on the Health Insurance Reform PORTABILITY, AND RENEWABILITY think magnificently about God so that Act of 1996 today or tomorrow. So we Subtitle A—Group Market Rules we may serve Him magnanimously will be making an announcement about throughout the day. votes on tomorrow later today. Sec. 101. Guaranteed availability of health cov- O God, whose love never lets us go, erage. Mrs. KASSEBAUM. Mr. President, I Sec. 102. Guaranteed renewability of health whose mercy never ends, whose suggest the absence of a quorum. strength is always available, whose coverage. The PRESIDING OFFICER (Mr. Sec. 103. Portability of health coverage and lim- guidance shows us the way, whose spir- THOMAS). The clerk will call the roll. itation on preexisting condition it provides us supernatural power, The assistant legislative clerk pro- exclusions. whose presence is our courage, whose ceeded to call the roll. Sec. 104. Special enrollment periods. joy invades our gloom, whose peace Mrs. KASSEBAUM. Mr. President, I Sec. 105. Disclosure of information. calms our pressured hearts, whose light ask unanimous consent that the order Subtitle B—Individual Market Rules illuminates our path, whose goodness for the quorum call be rescinded. Sec. 110. Individual health plan portability. provides the wondrous gifts of loved The PRESIDING OFFICER. Without Sec. 111. Guaranteed renewability of individual ones, family, and friends, whose will objection, it is so ordered. health coverage. has brought us to the awesome tasks of Sec. 112. State flexibility in individual market f this Senate today, and whose calling reforms. Sec. 113. Definition. lifts us above party politics to put You RESERVATION OF LEADER TIME and the good of our Nation first, we Subtitle C—COBRA Clarifications The PRESIDING OFFICER. Under dedicate all that we have and are to Sec. 121. COBRA clarifications. the previous order, the leadership time serve You today with unreserved faith- Subtitle D—Private Health Plan Purchasing is reserved. fulness and unfailing loyalty. Cooperatives To God be the glory. Amen. f Sec. 131. Private health plan purchasing cooperatives. f HEALTH INSURANCE REFORM ACT TITLE II—APPLICATION AND RECOGNITION OF THE MAJORITY The PRESIDING OFFICER. Under ENFORCEMENT OF STANDARDS LEADER the previous order, the Senate will now Sec. 201. Applicability. The PRESIDENT pro tempore. The proceed to consider S. 1028, which the Sec. 202. Enforcement of standards. able majority leader, Senator DOLE, is clerk will report. TITLE III—MISCELLANEOUS PROVISIONS recognized. The assistant legislative clerk read Sec. 301. HMOs allowed to offer plans with f as follows: deductibles to individuals with medical savings accounts. SCHEDULE A bill (S. 1028) to provide increased access to health care benefits, to provide increased Sec. 302. Health coverage availability study. Mr. DOLE. Mr. President, we will im- portability of health care benefits, to pro- Sec. 303. Sense of the Committee concerning mediately begin consideration of Cal- vide increased security of health care bene- Medicare. endar No. 205, S. 1028, the Health Insur- fits, to increase the purchasing power of in- Sec. 304. Effective date. ance Reform Act of 1996. Amendments dividuals and small employers, and for other Sec. 305. Severability. are expected to be offered. Rollcall purposes. SEC. 2. DEFINITIONS. votes can be anticipated throughout The Senate proceeded to consider the As used in this Act: bill, which had been reported from the (1) BENEFICIARY.—The term ‘‘beneficiary’’ has the day and into the late evening. We the meaning given such term under section 3(8) want to finish this bill today. We had Committee on Labor and Human Re- of the Employee Retirement Income Security Act hoped to start it last evening. sources with an amendment to strike of 1974 (29 U.S.C. 1002(8)). It is also possible that the Senate all after the enacting clause and insert- (2) EMPLOYEE.—The term ‘‘employee’’ has the could resume immigration legislation ing in lieu thereof the following: meaning given such term under section 3(6) of

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

S3503 S3504 CONGRESSIONAL RECORD — SENATE April 18, 1996 the Employee Retirement Income Security Act of (xi) A health insurance policy providing bene- onstrate to the applicable certifying authority 1974 (29 U.S.C. 1002(6)). fits only for long-term care, nursing home care, (as defined in section 202(d)) that the health (3) EMPLOYER.—The term ‘‘employer’’ has the home health care, community-based care, or any plan issuer has adequate capacity, whichever is meaning given such term under section 3(5) of combination thereof. later. the Employee Retirement Income Security Act of (7) GROUP PURCHASER.—The term ‘‘group pur- (2) FIRST-COME-FIRST-SERVED.—A health plan 1974 (29 U.S.C. 1002(5)), except that such term chaser’’ means any person (as defined under issuer offering a group health plan is only eligi- shall include only employers of two or more em- paragraph (9) of section 3 of the Employee Re- ble to exercise the limitations provided for in ployees. tirement Income Security Act of 1974 (29 U.S.C. paragraph (1) if the health plan issuer offers (4) EMPLOYEE HEALTH BENEFIT PLAN.— 1002(9)) or entity that purchases or pays for coverage to group purchasers under such plan (A) IN GENERAL.—The term ‘‘employee health health benefits (such as provider or hospital on a first-come-first-served basis or other basis benefit plan’’ means any employee welfare bene- benefits) on behalf of two or more participants established by a State to ensure a fair oppor- fit plan, governmental plan, or church plan (as or beneficiaries in connection with an employee tunity to enroll in the plan and avoid risk selec- defined under paragraphs (1), (32), and (33) of health benefit plan. A health plan purchasing tion. section 3 of the Employee Retirement Income Se- cooperative established under section 131 shall (c) CONSTRUCTION.— curity Act of 1974 (29 U.S.C. 1002 (1), (32), and not be considered to be a group purchaser. (1) MARKETING OF GROUP HEALTH PLANS.— (33))) that provides or pays for health benefits (8) HEALTH PLAN ISSUER.—The term ‘‘health Nothing in this section shall be construed to (such as provider and hospital benefits) for par- plan issuer’’ means any entity that is licensed prevent a State from requiring health plan issu- ticipants and beneficiaries whether— (prior to or after the date of enactment of this ers offering group health plans to actively mar- (i) directly; Act) by a State to offer a group health plan or ket such plans. (ii) through a group health plan offered by a an individual health plan. (2) INVOLUNTARY OFFERING OF GROUP HEALTH health plan issuer as defined in paragraph (8); (9) PARTICIPANT.—The term ‘‘participant’’ has PLANS.—Nothing in this section shall be con- or the meaning given such term under section 3(7) strued to require a health plan issuer to invol- (iii) otherwise. of the Employee Retirement Income Security Act untarily offer group health plans in a particular (B) RULE OF CONSTRUCTION.—An employee of 1974 (29 U.S.C. 1002(7)). market. For the purposes of this paragraph, the health benefit plan shall not be construed to be (10) PLAN SPONSOR.—The term ‘‘plan sponsor’’ term ‘‘market’’ means either the large employer a group health plan, an individual health plan, has the meaning given such term under section market or the small employer market (as defined or a health plan issuer. 3(16)(B) of the Employee Retirement Income Se- under applicable State law, or if not so defined, (C) ARRANGEMENTS NOT INCLUDED.—Such term curity Act of 1974 (29 U.S.C. 1002(16)(B)). an employer with not more than 50 employees). does not include the following, or any combina- (11) SECRETARY.—The term ‘‘Secretary’’, un- tion thereof: SEC. 102. GUARANTEED RENEWABILITY OF less specifically provided otherwise, means the HEALTH COVERAGE. (i) Coverage only for accident, or disability in- Secretary of Labor. (a) IN GENERAL.— come insurance, or any combination thereof. (12) STATE.—The term ‘‘State’’ means each of (1) GROUP PURCHASER.—Subject to subsections (ii) Medicare supplemental health insurance the several States, the District of Columbia, (b) and (c), a group health plan shall be re- (as defined under section 1882(g)(1) of the Social Puerto Rico, the United States Virgin Islands, newed or continued in force by a health plan is- Security Act). Guam, American Samoa, and the Common- suer at the option of the group purchaser, ex- (iii) Coverage issued as a supplement to liabil- wealth of the Northern Mariana Islands. ity insurance. cept that the requirement of this subparagraph (iv) Liability insurance, including general li- TITLE I—HEALTH CARE ACCESS, shall not apply in the case of— ability insurance and automobile liability insur- PORTABILITY, AND RENEWABILITY (A) the nonpayment of premiums or contribu- ance. Subtitle A—Group Market Rules tions by the group purchaser in accordance with (v) Workers compensation or similar insur- SEC. 101. GUARANTEED AVAILABILITY OF the terms of the group health plan or where the ance. HEALTH COVERAGE. health plan issuer has not received timely pre- (vi) Automobile medical payment insurance. (a) IN GENERAL.— mium payments; (vii) Coverage for a specified disease or illness. (1) NONDISCRIMINATION.—Except as provided (B) fraud or misrepresentation of material fact (viii) Hospital or fixed indemnity insurance. in subsection (b), section 102 and section 103— on the part of the group purchaser; (ix) Short-term limited duration insurance. (A) a health plan issuer offering a group (C) the termination of the group health plan (x) Credit-only, dental-only, or vision-only in- health plan may not decline to offer whole in accordance with subsection (b); or surance. group coverage to a group purchaser desiring to (D) the failure of the group purchaser to meet (xi) A health insurance policy providing bene- purchase such coverage; and contribution or participation requirements in ac- fits only for long-term care, nursing home care, (B) an employee health benefit plan or a cordance with paragraph (3). home health care, community-based care, or any health plan issuer offering a group health plan (2) PARTICIPANT.—Subject to subsections (b) combination thereof. may establish eligibility, continuation of eligi- and (c), coverage under an employee health (5) FAMILY.— bility, enrollment, or premium contribution re- benefit plan or group health plan shall be re- (A) IN GENERAL.—The term ‘‘family’’ means quirements under the terms of such plan, except newed or continued in force, if the group pur- an individual, the individual’s spouse, and the that such requirements shall not be based on chaser elects to continue to provide coverage child of the individual (if any). health status, medical condition, claims experi- under such plan, at the option of the partici- (B) CHILD.—For purposes of subparagraph ence, receipt of health care, medical history, evi- pant (or beneficiary where such right exists (A), the term ‘‘child’’ means any individual who dence of insurability, or disability. under the terms of the plan or under applicable is a child within the meaning of section 151(c)(3) (2) HEALTH PROMOTION AND DISEASE PREVEN- law), except that the requirement of this para- of the Internal Revenue Code of 1986. TION.—Nothing in this subsection shall prevent graph shall not apply in the case of— (6) GROUP HEALTH PLAN.— an employee health benefit plan or a health (A) the nonpayment of premiums or contribu- (A) IN GENERAL.—The term ‘‘group health plan issuer from establishing premium discounts tions by the participant or beneficiary in ac- plan’’ means any contract, policy, certificate or or modifying otherwise applicable copayments cordance with the terms of the employee health other arrangement offered by a health plan is- or deductibles in return for adherence to pro- benefit plan or group health plan or where such suer to a group purchaser that provides or pays grams of health promotion and disease preven- plan has not received timely premium payments; for health benefits (such as provider and hos- tion. (B) fraud or misrepresentation of material fact pital benefits) in connection with an employee (b) APPLICATION OF CAPACITY LIMITS.— on the part of the participant or beneficiary re- health benefit plan. (1) IN GENERAL.—Subject to paragraph (2), a lating to an application for coverage or claim (B) ARRANGEMENTS NOT INCLUDED.—Such health plan issuer offering a group health plan for benefits; term does not include the following, or any com- may cease offering coverage to group purchasers (C) the termination of the employee health bination thereof: under the plan if— benefit plan or group health plan; (i) Coverage only for accident, or disability in- (A) the health plan issuer ceases to offer cov- (D) loss of eligibility for continuation coverage come insurance, or any combination thereof. erage to any additional group purchasers; and as described in part 6 of subtitle B of title I of (ii) Medicare supplemental health insurance (B) the health plan issuer can demonstrate to (as defined under section 1882(g)(1) of the Social the Employee Retirement Income Security Act of the applicable certifying authority (as defined 1974 (29 U.S.C. 1161 et seq.); or Security Act). in section 202(d)), if required, that its financial (iii) Coverage issued as a supplement to liabil- (E) failure of a participant or beneficiary to or provider capacity to serve previously covered ity insurance. meet requirements for eligibility for coverage participants and beneficiaries (and additional (iv) Liability insurance, including general li- under an employee health benefit plan or group participants and beneficiaries who will be ex- ability insurance and automobile liability insur- health plan that are not prohibited by this Act. pected to enroll because of their affiliation with ance. (3) RULES OF CONSTRUCTION.—Nothing in this a group purchaser or such previously covered (v) Workers compensation or similar insur- subsection, nor in section 101(a), shall be con- participants or beneficiaries) will be impaired if ance. strued to— (vi) Automobile medical payment insurance. the health plan issuer is required to offer cov- (A) preclude a health plan issuer from estab- (vii) Coverage for a specified disease or illness. erage to additional group purchasers. lishing employer contribution rules or group (viii) Hospital or fixed indemnity insurance. Such health plan issuer shall be prohibited from participation rules for group health plans as al- (ix) Short-term limited duration insurance. offering coverage after a cessation in offering lowed under applicable State law; (x) Credit-only, dental-only, or vision-only in- coverage under this paragraph for a 6-month (B) preclude a plan defined in section 3(37) of surance. period or until the health plan issuer can dem- the Employee Retirement Income Security Act of April 18, 1996 CONGRESSIONAL RECORD — SENATE S3505

1974 (29 U.S.C. 1102(37)) from establishing em- (d) COBRA COVERAGE.—Nothing in sub- lished under Federal or State law, and ending ployer contribution rules or group participation section (a)(2)(E) or subsection (c) shall be con- on the date the individual is not so enrolled; rules; or strued to affect any right to COBRA continu- for a continuous period of more than 30 days (C) permit individuals to decline coverage ation coverage as described in part 6 of subtitle (without regard to any waiting period). under an employee health benefit plan if such B of title I of the Employee Retirement Income (B) LIMITATION OR EXCLUSION OF BENEFITS right is not otherwise available under such Security Act of 1974 (29 U.S.C. 1161 et seq.). RELATING TO TREATMENT OF A PREEXISTING CON- plan. SEC. 103. PORTABILITY OF HEALTH COVERAGE DITION.—The term ‘‘limitation or exclusion of (b) TERMINATION OF GROUP HEALTH PLANS.— AND LIMITATION ON PREEXISTING (1) PARTICULAR TYPE OF GROUP HEALTH PLAN benefits relating to treatment of a preexisting CONDITION EXCLUSIONS. condition’’ means a limitation or exclusion of NOT OFFERED.—In any case in which a health (a) IN GENERAL.—An employee health benefit plan issuer decides to discontinue offering a benefits imposed on an individual based on a plan or a health plan issuer offering a group preexisting condition of such individual. particular type of group health plan, a group health plan may impose a limitation or exclu- health plan of such type may be discontinued (4) EFFECT OF PREVIOUS COVERAGE.—An em- sion of benefits relating to treatment of a pre- ployee health benefit plan or a health plan is- by the health plan issuer only if— existing condition based on the fact that the (A) the health plan issuer provides notice to suer offering a group health plan may impose a condition existed prior to the coverage of the each group purchaser covered under a group limitation or exclusion of benefits relating to the participant or beneficiary under the plan only health plan of this type (and participants and treatment of a preexisting condition, subject to if— beneficiaries covered under such group health the limits in subsection (a)(1), only to the extent (1) the limitation or exclusion extends for a plan) of such discontinuation at least 90 days that such service or benefit was not previously period of not more than 12 months after the date prior to the date of the discontinuation of such covered under the group health plan, employee of enrollment in the plan; plan; health benefit plan, or individual health plan in (2) the limitation or exclusion does not apply (B) the health plan issuer offers to each group which the participant or beneficiary was en- to an individual who, within 30 days of the date purchaser covered under a group health plan of rolled immediately prior to enrollment in the of birth or placement for adoption (as deter- this type, the option to purchase any other plan involved. mined under section 609(c)(3)(B) of the Em- group health plan currently being offered by the (c) LATE ENROLLEES.—Except as provided in ployee Retirement Income Security Act of 1974 health plan issuer; and section 104, with respect to a participant or ben- (29 U.S.C. 1169(c)(3)(B)), was covered under the (C) in exercising the option to discontinue a eficiary enrolling in an employee health benefit plan; and group health plan of this type and in offering plan or a group health plan during a time that (3) the limitation or exclusion does not apply one or more replacement plans, the health plan is other than the first opportunity to enroll dur- to a pregnancy. issuer acts uniformly without regard to the ing an enrollment period of at least 30 days, (b) CREDITING OF PREVIOUS QUALIFYING COV- health status or insurability of participants or coverage with respect to benefits or services re- ERAGE.— beneficiaries covered under the group health lating to the treatment of a preexisting condi- (1) IN GENERAL.—Subject to paragraph (4), an plan, or new participants or beneficiaries who tion in accordance with subsections (a) and (b) employee health benefit plan or a health plan may become eligible for coverage under the may be excluded, except the period of such ex- issuer offering a group health plan shall provide group health plan. clusion may not exceed 18 months beginning on that if a participant or beneficiary is in a period (2) DISCONTINUANCE OF ALL GROUP HEALTH the date of coverage under the plan. of previous qualifying coverage as of the date of PLANS.— (d) AFFILIATION PERIODS.—With respect to a enrollment under such plan, any period of ex- (A) IN GENERAL.—In any case in which a participant or beneficiary who would otherwise clusion or limitation of coverage with respect to health plan issuer elects to discontinue offering be eligible to receive benefits under an employee a preexisting condition shall be reduced by 1 all group health plans in a State, a group health benefit plan or a group health plan but month for each month in which the participant health plan may be discontinued by the health for the operation of a preexisting condition limi- or beneficiary was in the period of previous plan issuer only if— tation or exclusion, if such plan does not utilize (i) the health plan issuer provides notice to qualifying coverage. With respect to an individ- a limitation or exclusion of benefits relating to the applicable certifying authority (as defined ual described in subsection (a)(2) who maintains the treatment of a preexisting condition, such in section 202(d)) and to each group purchaser continuous coverage, no limitation or exclusion plan may impose an affiliation period on such (and participants and beneficiaries covered of benefits relating to treatment of a preexisting participant or beneficiary not to exceed 60 days under such group health plan) of such dis- condition may be applied to a child within the (or in the case of a late participant or bene- continuation at least 180 days prior to the date child’s first 12 months of life or within 12 ficiary described in subsection (c), 90 days) from of the expiration of such plan; and months after the placement of a child for adop- the date on which the participant or beneficiary (ii) all group health plans issued or delivered tion. would otherwise be eligible to receive benefits for issuance in the State are discontinued and (2) DISCHARGE OF DUTY.—An employee health under the plan. An employee health benefit plan coverage under such plans is not renewed. benefit plan shall provide documentation of cov- or a health plan issuer offering a group health (B) APPLICATION OF PROVISIONS.—The provi- erage to participants and beneficiaries whose plan may also use alternative methods to ad- sions of this paragraph and paragraph (3) may coverage is terminated under the plan. Pursuant dress adverse selection as approved by the appli- be applied separately by a health plan issuer— to regulations promulgated by the Secretary, the cable certifying authority (as defined in section (i) to all group health plans offered to small duty of an employee health benefit plan to ver- 202(d)). During such an affiliation period, the employers (as defined under applicable State ify previous qualifying coverage with respect to plan may not be required to provide health care law, or if not so defined, an employer with not a participant or beneficiary is effectively dis- services or benefits and no premium shall be more than 50 employees); or charged when such employee health benefit charged to the participant or beneficiary. (ii) to all other group health plans offered by plan provides documentation to a participant or (e) PREEXISTING CONDITION.—For purposes of the health plan issuer in the State. beneficiary that includes the following informa- (3) PROHIBITION ON MARKET REENTRY.—In the this section, the term ‘‘preexisting condition’’ tion: case of a discontinuation under paragraph (2), means a condition, regardless of the cause of the (A) the dates that the participant or bene- the health plan issuer may not provide for the condition, for which medical advice, diagnosis, ficiary was covered under the plan; and issuance of any group health plan in the market care, or treatment was recommended or received (B) the benefits and cost-sharing arrangement sector (as described in paragraph (2)(B)) in within the 6-month period ending on the day be- available to the participant or beneficiary under which issuance of such group health plan was fore the effective date of the coverage (without such plan. discontinued in the State involved during the 5- regard to any waiting period). year period beginning on the date of the dis- An employee health benefit plan shall retain the (f) STATE FLEXIBILITY.—Nothing in this sec- continuation of the last group health plan not documentation provided to a participant or ben- tion shall be construed to preempt State laws so renewed. eficiary under subparagraphs (A) and (B) for at that— (c) TREATMENT OF NETWORK PLANS.— least the 12-month period following the date on (1) require health plan issuers to impose a lim- (1) GEOGRAPHIC LIMITATIONS.—A network which the participant or beneficiary ceases to be itation or exclusion of benefits relating to the plan (as defined in paragraph (2)) may deny covered under the plan. Upon request, an em- treatment of a preexisting condition for periods continued participation under such plan to par- ployee health benefit plan shall provide a sec- that are shorter than those provided for under ticipants or beneficiaries who neither live, re- ond copy of such documentation to such partici- this section; or side, nor work in an area in which such net- pant or beneficiary within the 12-month period (2) allow individuals, participants, and bene- work plan is offered, but only if such denial is following the date of such ineligibility. ficiaries to be considered to be in a period of applied uniformly, without regard to health sta- (3) DEFINITIONS.—As used in this section: previous qualifying coverage if such individual, tus or the insurability of particular participants (A) PREVIOUS QUALIFYING COVERAGE.—The participant, or beneficiary experiences a lapse or beneficiaries. term ‘‘previous qualifying coverage’’ means the in coverage that is greater than the 30-day pe- (2) NETWORK PLAN.—As used in paragraph period beginning on the date— riod provided for under subsection (b)(3); (1), the term ‘‘network plan’’ means an em- (i) a participant or beneficiary is enrolled ployee health benefit plan or a group health under an employee health benefit plan or a unless such laws are preempted by section 514 of plan that arranges for the financing and deliv- group health plan, and ending on the date the the Employee Retirement Income Security Act of ery of health care services to participants or participant or beneficiary is not so enrolled; or 1974 (29 U.S.C. 1144). beneficiaries covered under such plan, in whole (ii) an individual is enrolled under an individ- SEC. 104. SPECIAL ENROLLMENT PERIODS. or in part, through arrangements with provid- ual health plan (as defined in section 113) or In the case of a participant, beneficiary or ers. under a public or private health plan estab- family member who— S3506 CONGRESSIONAL RECORD — SENATE April 18, 1996 (1) through marriage, separation, divorce, change described in section 102(a)(1) that is a uals under an individual health plan may cease death, birth or placement of a child for adop- material reduction in covered services or benefits enrolling individuals under the plan if— tion, experiences a change in family composition provided, a summary description of such modi- (A) the health plan issuer ceases to enroll any affecting eligibility under a group health plan, fication or change shall be furnished to partici- new individuals; and individual health plan, or employee health ben- pants not later than 60 days after the date of (B) the health plan issuer can demonstrate to efit plan; the adoption of the modification or change. In the applicable certifying authority (as defined (2) experiences a change in employment sta- the alternative, the plan sponsors may provide in section 202(d)), if required, that its financial tus, as described in section 603(2) of the Em- such description at regular intervals of not more or provider capacity to serve previously covered ployee Retirement Income Security Act of 1974 than 90 days. The Secretary shall issue regula- individuals will be impaired if the health plan (29 U.S.C. 1163(2)), that causes the loss of eligi- tions within 180 days after the date of enact- issuer is required to enroll additional individ- bility for coverage, other than COBRA continu- ment of the Health Insurance Reform Act of uals. ation coverage under a group health plan, indi- 1995, providing alternative mechanisms to deliv- Such a health plan issuer shall be prohibited vidual health plan, or employee health benefit ery by mail through which employee health ben- from offering coverage after a cessation in offer- plan; or efit plans may notify participants of material re- ing coverage under this paragraph for a 6- (3) experiences a loss of eligibility under a ductions in covered services or benefits.’’. month period or until the health plan issuer can group health plan, individual health plan, or (2) PLAN DESCRIPTION AND SUMMARY.—Section demonstrate to the applicable certifying author- employee health benefit plan because of a 102(b) of the Employee Retirement Income Secu- ity (as defined in section 202(d)) that the health change in the employment status of a family rity Act of 1974 (29 U.S.C. 1022(b)) is amended— plan issuer has adequate capacity, whichever is member; (A) by inserting ‘‘including the office or title later. each employee health benefit plan and each of the individual who is responsible for approv- (2) FIRST-COME-FIRST-SERVED.—A health plan group health plan shall provide for a special ening or denying claims for coverage of benefits’’ issuer offering coverage to individuals under an rollment period extending for a reasonable time after ‘‘type of administration of the plan’’; individual health plan is only eligible to exercise after such event that would permit the partici- (B) by inserting ‘‘including the name of the the limitations provided for in paragraph (1) if pant to change the individual or family basis of organization responsible for financing claims’’ the health plan issuer provides for enrollment of coverage or to enroll in the plan if coverage after ‘‘source of financing of the plan’’; and individuals under such plan on a first-come- would have been available to such individual, (C) by inserting ‘‘including the office, contact, first-served basis or other basis established by a participant, or beneficiary but for failure to en- or title of the individual at the Department of State to ensure a fair opportunity to enroll in roll during a previous enrollment period. Such a Labor through which participants may seek as- the plan and avoid risk selection. special enrollment period shall ensure that a sistance or information regarding their rights (d) MARKET REQUIREMENTS.— child born or placed for adoption shall be under this Act and the Health Insurance Reform (1) IN GENERAL.—The provisions of subsection deemed to be covered under the plan as of the Act of 1995 with respect to health benefits that (a) shall not be construed to require that a date of such birth or placement for adoption if are not offered through a group health plan.’’ health plan issuer offering group health plans such child is enrolled within 30 days of the date after ‘‘benefits under the plan’’. to group purchasers offer individual health of such birth or placement for adoption. Subtitle B—Individual Market Rules plans to individuals. SEC. 105. DISCLOSURE OF INFORMATION. SEC. 110. INDIVIDUAL HEALTH PLAN PORT- (2) CONVERSION POLICIES.—A health plan is- (a) DISCLOSURE OF INFORMATION BY HEALTH ABILITY. suer offering group health plans to group pur- PLAN ISSUERS.— (a) LIMITATION ON REQUIREMENTS.— chasers under this Act shall not be deemed to be (1) IN GENERAL.—In connection with the offer- (1) IN GENERAL.—With respect to an individ- a health plan issuer offering an individual ing of any group health plan to a small em- ual desiring to enroll in an individual health health plan solely because such health plan is- ployer (as defined under applicable State law, plan, if such individual is in a period of pre- suer offers a conversion policy. or if not so defined, an employer with not more vious qualifying coverage (as defined in section (3) MARKETING OF PLANS.—Nothing in this than 50 employees), a health plan issuer shall 103(b)(3)(A)(i)) under one or more group health section shall be construed to prevent a State make a reasonable disclosure to such employer, plans or employee health benefit plans that from requiring health plan issuers offering cov- as part of its solicitation and sales materials, commenced 18 or more months prior to the date erage to individuals under an individual health of— on which such individual desires to enroll in the plan to actively market such plan. (A) the provisions of such group health plan individual plan, a health plan issuer described SEC. 111. GUARANTEED RENEWABILITY OF INDI- concerning the health plan issuer’s right to in paragraph (3) may not decline to offer cov- VIDUAL HEALTH COVERAGE. change premium rates and the factors that may erage to such individual, or deny enrollment to (a) IN GENERAL.—Subject to subsections (b) affect changes in premium rates; such individual based on the health status, and (c), coverage for individuals under an indi- (B) the provisions of such group health plan medical condition, claims experience, receipt of vidual health plan shall be renewed or contin- relating to renewability of coverage; health care, medical history, evidence of insur- ued in force by a health plan issuer at the op- (C) the provisions of such group health plan ability, or disability of the individual, except as tion of the individual, except that the require- relating to any preexisting condition provision; described in subsections (b) and (c). ment of this subsection shall not apply in the and (2) HEALTH PROMOTION AND DISEASE PREVEN- case of— (D) descriptive information about the benefits TION.—Nothing in this subsection shall be con- (1) the nonpayment of premiums or contribu- and premiums available under all group health strued to prevent a health plan issuer offering tions by the individual in accordance with the plans for which the employer is qualified. an individual health plan from establishing pre- terms of the individual health plan or where the Information shall be provided to small employers mium discounts or modifying otherwise applica- health plan issuer has not received timely pre- under this paragraph in a manner determined to ble copayments or deductibles in return for ad- mium payments; be understandable by the average small em- herence to programs of health promotion or dis- (2) fraud or misrepresentation of material fact ployer, and shall be sufficiently accurate and ease prevention. on the part of the individual; or comprehensive to reasonably inform small em- (3) HEALTH PLAN ISSUER.—A health plan is- (3) the termination of the individual health ployers, participants and beneficiaries of their suer described in this paragraph is a health plan in accordance with subsection (b). rights and obligations under the group health plan issuer that issues or renews individual (b) TERMINATION OF INDIVIDUAL HEALTH plan. health plans. PLANS.— (2) EXCEPTION.—With respect to the require- (4) PREMIUMS.—Nothing in this subsection (1) PARTICULAR TYPE OF INDIVIDUAL HEALTH ment of paragraph (1), any information that is shall be construed to affect the determination of PLAN NOT OFFERED.—In any case in which a proprietary and trade secret information under a health plan issuer as to the amount of the pre- health plan issuer decides to discontinue offer- applicable law shall not be subject to the disclo- mium payable under an individual health plan ing a particular type of individual health plan sure requirements of such paragraph. under applicable State law. to individuals, an individual health plan may be (3) CONSTRUCTION.—Nothing in this sub- (b) ELIGIBILITY FOR OTHER GROUP COV- discontinued by the health plan issuer only if— section shall be construed to preempt State re- ERAGE.—The provisions of subsection (a) shall (A) the health plan issuer provides notice to porting and disclosure requirements to the ex- not apply to an individual who is eligible for each individual covered under the plan of such tent that such requirements are not preempted coverage under a group health plan or an em- discontinuation at least 90 days prior to the under section 514 of the Employee Retirement ployee health benefit plan, or who has had cov- date of the expiration of the plan; Income Security Act of 1974 (29 U.S.C. 1144). erage terminated under a group health plan or (B) the health plan issuer offers to each indi- (b) DISCLOSURE OF INFORMATION TO PARTICI- employee health benefit plan for failure to make vidual covered under the plan the option to pur- PANTS AND BENEFICIARIES.— required premium payments or contributions, or chase any other individual health plan cur- (1) IN GENERAL.—Section 104(b)(1) of the Em- for fraud or misrepresentation of material fact, rently being offered by the health plan issuer to ployee Retirement Income Security Act of 1974 or who is otherwise eligible for continuation individuals; and (29 U.S.C. 1024(b)(1)) is amended in the matter coverage as described in part 6 of subtitle B of (C) in exercising the option to discontinue the following subparagraph (B)— title I of the Employee Retirement Income Secu- individual health plan and in offering one or (A) by striking ‘‘102(a)(1),’’ and inserting rity Act of 1974 (29 U.S.C. 1161 et seq.) or under more replacement plans, the health plan issuer ‘‘102(a)(1) that is not a material reduction in an equivalent State program. acts uniformly without regard to the health sta- covered services or benefits provided,’’; and (c) APPLICATION OF CAPACITY LIMITS.— tus or insurability of particular individuals. (B) by adding at the end thereof the following (1) IN GENERAL.—Subject to paragraph (2), a (2) DISCONTINUANCE OF ALL INDIVIDUAL new sentences: ‘‘If there is a modification or health plan issuer offering coverage to individ- HEALTH PLANS.—In any case in which a health April 18, 1996 CONGRESSIONAL RECORD — SENATE S3507 plan issuer elects to discontinue all individual scribed in subsection (a), the Secretary of (II) by striking ‘‘at the time of a qualifying health plans in a State, an individual health Health and Human Services may not make a de- event described in section 2203(2)’’ and inserting plan may be discontinued by the health plan is- termination under such subsection until the ex- ‘‘at any time during the initial 18-month period suer only if— piration of the 12-month period beginning on of continuing coverage under this title’’; (A) the health plan issuer provides notice to the date on which such notification is made, or (B) in subparagraph (D)(i), by inserting be- the applicable certifying authority (as defined until January 1, 1997, whichever is later. With fore ‘‘, or’’ the following: ‘‘, except that the ex- in section 202(d)) and to each individual covered respect to a State that provides notice under this clusion or limitation contained in this clause under the plan of such discontinuation at least paragraph and that has a legislature that does shall not be considered to apply to a plan under 180 days prior to the date of the discontinuation not meet within the 12-month period beginning which a preexisting condition or exclusion does of the plan; and on the date of enactment of this Act, the Sec- not apply to an individual otherwise eligible for (B) all individual health plans issued or deliv- retary shall not make a determination under continuation coverage under this section be- ered for issuance in the State are discontinued subsection (a) prior to January 1, 1998. cause of the provision of the Health Insurance and coverage under such plans is not renewed. (3) NOTICE TO STATE.—If the Secretary of Reform Act of 1995’’; and (3) PROHIBITION ON MARKET REENTRY.—In the Health and Human Services determines that a (C) in subparagraph (E), by striking ‘‘at the case of a discontinuation under paragraph (2), State law or program does not achieve the goals time of a qualifying event described in section the health plan issuer may not provide for the described in subsection (a), the Secretary of 2203(2)’’ and inserting ‘‘at any time during the issuance of any individual health plan in the Health and Human Services shall provide the initial 18-month period of continuing coverage State involved during the 5-year period begin- State with adequate notice and reasonable op- under this title’’. ning on the date of the discontinuation of the portunity to modify such law or program to (2) ELECTION.—Section 2205(1)(C) of the Pub- last plan not so renewed. achieve such goals prior to making a final deter- lic Health Service Act (42 U.S.C. 300bb-5(1)(C)) (c) TREATMENT OF NETWORK PLANS.— mination under subsection (a). is amended— (1) GEOGRAPHIC LIMITATIONS.—A health plan (c) ADOPTION OF NAIC MODEL.—If, not later (A) in clause (i), by striking ‘‘or’’ at the end issuer which offers a network plan (as defined than 9 months after the date of enactment of thereof; in paragraph (2)) may deny continued partici- this Act— (B) in clause (ii), by striking the period and pation under the plan to individuals who nei- (1) the National Association of Insurance inserting ‘‘, or’’; and ther live, reside, nor work in an area in which Commissioners (hereafter referred to as the (C) by adding at the end thereof the following the individual health plan is offered, but only if ‘‘NAIC’’), through a process which the Sec- new clause: such denial is applied uniformly, without regard retary of Health and Human Services determines ‘‘(iii) in the case of an individual described in to health status or the insurability of particular has included consultation with representatives the last sentence of section 2202(2)(A), or a bene- individuals. of the insurance industry and consumer groups, ficiary-family member of the individual, the (2) NETWORK PLAN.—As used in paragraph adopts a model standard or standards for reform date such individual is determined to have been (1), the term ‘‘network plan’’ means an individ- of the individual health insurance market; and disabled.’’. ual health plan that arranges for the financing (2) the Secretary of Health and Human Serv- (3) NOTICES.—Section 2206(3) of the Public and delivery of health care services to individ- ices determines, within 30 days of the adoption Health Service Act (42 U.S.C. 300bb-6(3)) is uals covered under such health plan, in whole of such NAIC standard or standards, that such amended by striking ‘‘at the time of a qualifying or in part, through arrangements with provid- standards comply with the goals of sections 110 event described in section 2203(2)’’ and inserting ers. and 111; ‘‘at any time during the initial 18-month period SEC. 112. STATE FLEXIBILITY IN INDIVIDUAL a State that elects to adopt such model stand- of continuing coverage under this title’’. MARKET REFORMS. ards or substantially adopt such model stand- (4) BIRTH OR ADOPTION OF A CHILD.—Section (a) IN GENERAL.—With respect to any State ards shall be deemed to have met the require- 2208(3)(A) of the Public Health Service Act (42 law with respect to which the Governor of the ments of sections 110 and 111 and shall not be U.S.C. 300bb-8(3)(A)) is amended by adding at State notifies the Secretary of Health and subject to a determination under subsection (a). the end thereof the following new flush sen- Human Services that such State law will achieve SEC. 113. DEFINITION. tence: the goals of sections 110 and 111, and that is in (a) IN GENERAL.—As used in this title, the ‘‘Such term shall also include a child who is effect on, or enacted after, the date of enact- term ‘‘individual health plan’’ means any con- born to or placed for adoption with the covered ment of this Act (such as laws providing for tract, policy, certificate or other arrangement employee during the period of continued cov- guaranteed issue, open enrollment by one or offered to individuals by a health plan issuer erage under this title.’’. more health plan issuers, high-risk pools, or that provides or pays for health benefits (such (b) EMPLOYEE RETIREMENT INCOME SECURITY mandatory conversion policies), such State law as provider and hospital benefits) and that is ACT OF 1974.— shall apply in lieu of the standards described in not a group health plan under section 2(6). (1) PERIOD OF COVERAGE.—Section 602(2) of sections 110 and 111 unless the Secretary of (b) ARRANGEMENTS NOT INCLUDED.—Such the Employee Retirement Income Security Act of Health and Human Services determines, after term does not include the following, or any com- 1974 (29 U.S.C. 1162(2)) is amended— considering the criteria described in subsection bination thereof: (A) in the last sentence of subparagraph (A)— (b)(1), in consultation with the Governor and (1) Coverage only for accident, or disability (i) by inserting ‘‘, or a beneficiary-family Insurance Commissioner or chief insurance reg- income insurance, or any combination thereof. member of the individual,’’ after ‘‘an individ- ulatory official of the State, that such State law (2) Medicare supplemental health insurance ual’’; and does not achieve the goals of providing access to (as defined under section 1882(g)(1) of the Social (ii) by striking ‘‘at the time of a qualifying affordable health care coverage for those indi- Security Act). event described in section 603(2)’’ and inserting viduals described in sections 110 and 111. (3) Coverage issued as a supplement to liabil- ‘‘at any time during the initial 18-month period (b) DETERMINATION.— ity insurance. of continuing coverage under this part’’; (4) Liability insurance, including general li- (1) IN GENERAL.—In making a determination (B) in subparagraph (D)(i), by inserting be- under subsection (a), the Secretary of Health ability insurance and automobile liability insur- fore ‘‘, or’’ the following: ‘‘, except that the ex- and Human Services shall only— ance. clusion or limitation contained in this clause (A) evaluate whether the State law or pro- (5) Workers’ compensation or similar insur- shall not be considered to apply to a plan under gram provides guaranteed access to affordable ance. which a preexisting condition or exclusion does (6) Automobile medical payment insurance. coverage to individuals described in sections 110 (7) Coverage for a specified disease or illness. not apply to an individual otherwise eligible for and 111; (8) Hospital or fixed indemnity insurance. continuation coverage under this section be- (B) evaluate whether the State law or pro- (9) Short-term limited duration insurance. cause of the provision of the Health Insurance gram provides coverage for preexisting condi- (10) Credit-only, dental-only, or vision-only Reform Act of 1995’’; and tions (as defined in section 103(e)) that were insurance. (C) in subparagraph (E), by striking ‘‘at the covered under the individuals’ previous group (11) A health insurance policy providing bene- time of a qualifying event described in section health plan or employee health benefit plan for fits only for long-term care, nursing home care, 603(2)’’ and inserting ‘‘at any time during the individuals described in sections 110 and 111; home health care, community-based care, or any initial 18-month period of continuing coverage (C) evaluate whether the State law or program combination thereof. under this part’’. provides individuals described in sections 110 Subtitle C—COBRA Clarifications (2) ELECTION.—Section 605(1)(C) of the Em- and 111 with a choice of health plans or a ployee Retirement Income Security Act of 1974 SEC. 121. COBRA CLARIFICATIONS. health plan providing comprehensive coverage; (29 U.S.C. 1165(1)(C)) is amended— (a) PUBLIC HEALTH SERVICE ACT.— and (1) PERIOD OF COVERAGE.—Section 2202(2) of (A) in clause (i), by striking ‘‘or’’ at the end (D) evaluate whether the application of the the Public Health Service Act (42 U.S.C. 300bb- thereof; standards described in sections 110 and 111 will 2(2)) is amended— (B) in clause (ii), by striking the period and have an adverse impact on the number of indi- (A) in subparagraph (A)— inserting ‘‘, or’’; and viduals in such State having access to afford- (i) by transferring the sentence immediately (C) by adding at the end thereof the following able coverage. preceding clause (iv) so as to appear imme- new clause: (2) NOTICE OF INTENT.—If, within 6 months diately following such clause (iv); and ‘‘(iii) in the case of an individual described in after the date of enactment of this Act, the Gov- (ii) in the last sentence (as so transferred)— the last sentence of section 602(2)(A), or a bene- ernor of a State notifies the Secretary of Health (I) by inserting ‘‘, or a beneficiary-family ficiary-family member of the individual, the and Human Services that the State intends to member of the individual,’’ after ‘‘an individ- date such individual is determined to have been enact a law, or modify an existing law, de- ual’’; and disabled.’’. S3508 CONGRESSIONAL RECORD — SENATE April 18, 1996

(3) NOTICES.—Section 606(3) of the Employee group of individuals or employers that, on a vol- tive. With respect to a State that has not estab- Retirement Income Security Act of 1974 (29 untary basis and in accordance with this sec- lished such rules, a health plan purchasing co- U.S.C. 1166(3)) is amended by striking ‘‘at the tion, form a cooperative for the purpose of pur- operative operating in the State shall define the time of a qualifying event described in section chasing individual health plans or group health boundaries of the area to be served by the coop- 603(2)’’ and inserting ‘‘at any time during the plans offered by health plan issuers. A health erative, except that such boundaries may not be initial 18-month period of continuing coverage plan issuer, agent, broker or any other individ- established on the basis of health status or in- under this part’’. ual or entity engaged in the sale of insurance surability of the populations that reside in the (4) BIRTH OR ADOPTION OF A CHILD.—Section may not underwrite a cooperative. area. 607(3)(A) of the Employee Retirement Income Se- (b) CERTIFICATION.— (e) DUTIES AND RESPONSIBILITIES.— curity Act of 1974 (29 U.S.C. 1167(3)) is amended (1) IN GENERAL.—If a group described in sub- (1) IN GENERAL.—A health plan purchasing by adding at the end thereof the following new section (a) desires to form a health plan pur- cooperative shall— flush sentence: chasing cooperative in accordance with this sec- (A) enter into agreements with multiple, unaf- ‘‘Such term shall also include a child who is tion and such group appropriately notifies the filiated health plan issuers, except that the re- born to or placed for adoption with the covered State and the Secretary of such desire, the quirement of this subparagraph shall not apply employee during the period of continued cov- State, upon a determination that such group in regions (such as remote or frontier areas) in erage under this part.’’. meets the requirements of this section, shall cer- which compliance with such requirement is not possible; (c) INTERNAL REVENUE CODE OF 1986.— tify the group as a health plan purchasing co- (B) enter into agreements with employers and (1) PERIOD OF COVERAGE.—Section operative. The State shall make a determination 4980B(f)(2)(B) of the Internal Revenue Code of of whether such group meets the requirements of individuals who become members of the coopera- 1986 is amended— this section in a timely fashion. Each such coop- tive; (C) participate in any program of risk-adjust- (A) in the last sentence of clause (i) by strik- erative shall also be registered with the Sec- ment or reinsurance, or any similar program, ing ‘‘at the time of a qualifying event described retary. that is established by the State; in paragraph (3)(B)’’ and inserting ‘‘at any time (2) STATE REFUSAL TO CERTIFY.—If a State (D) prepare and disseminate comparative during the initial 18-month period of continuing fails to implement a program for certifying health plan materials (including information coverage under this section’’; health plan purchasing cooperatives in accord- about cost, quality, benefits, and other informa- (B) in clause (iv)(I), by inserting before ‘‘, or’’ ance with the standards under this Act, the Sec- tion concerning group health plans and individ- the following: ‘‘, except that the exclusion or retary shall certify and oversee the operations of ual health plans offered through the coopera- limitation contained in this subclause shall not such cooperatives in such State. tive); be considered to apply to a plan under which a (3) INTERSTATE COOPERATIVES.—For purposes of this section, a health plan purchasing cooper- (E) actively market to all eligible employers preexisting condition or exclusion does not and individuals residing within the service area; apply to an individual otherwise eligible for ative operating in more than one State shall be certified by the State in which the cooperative is and continuation coverage under this subsection be- (F) act as an ombudsman for group health cause of the provision of the Health Insurance domiciled. States may enter into cooperative agreements for the purpose of certifying and plan or individual health plan enrollees. Reform Act of 1995’’; and (2) PERMISSIBLE ACTIVITIES.—A health plan (C) in clause (v), by striking ‘‘at the time of a overseeing the operation of such cooperatives. For purposes of this subsection, a cooperative purchasing cooperative may perform such other qualifying event described in paragraph (3)(B)’’ functions as necessary to further the purposes and inserting ‘‘at any time during the initial 18- shall be considered to be domiciled in the State in which most of the members of the cooperative of this Act, including— month period of continuing coverage under this (A) collecting and distributing premiums and reside. section’’. performing other administrative functions; (c) BOARD OF DIRECTORS.— (2) ELECTION.—Section 4980B(f)(5)(A)(iii) of (B) collecting and analyzing surveys of en- the Internal Revenue Code of 1986 is amended— (1) IN GENERAL.—Each health plan purchasing cooperative shall be governed by a Board of rollee satisfaction; (A) in subclause (I), by striking ‘‘or’’ at the (C) charging membership fee to enrollees (such Directors that shall be responsible for ensuring end thereof; fees may not be based on health status) and the performance of the duties of the cooperative (B) in subclause (II), by striking the period charging participation fees to health plan issu- under this section. The Board shall be composed and inserting ‘‘, or’’; and ers; (C) by adding at the end thereof the following of a broad cross-section of representatives of em- (D) cooperating with (or accepting as mem- new subclause: ployers, employees, and individuals participat- bers) employers who provide health benefits di- ‘‘(III) in the case of an qualified beneficiary ing in the cooperative. A health plan issuer, rectly to participants and beneficiaries only for described in the last sentence of paragraph agent, broker or any other individual or entity the purpose of negotiating with providers; and (2)(B)(i), the date such individual is determined engaged in the sale of individual health plans or (E) negotiating with health care providers and to have been disabled.’’. group health plans may not hold or control any health plan issuers. (3) NOTICES.—Section 4980B(f)(6)(C) of the In- right to vote with respect to a cooperative. (f) LIMITATIONS ON COOPERATIVE ACTIVI- ternal Revenue Code of 1986 is amended by (2) LIMITATION ON COMPENSATION.—A health TIES.—A health plan purchasing cooperative striking ‘‘at the time of a qualifying event de- plan purchasing cooperative may not provide shall not— scribed in paragraph (3)(B)’’ and inserting ‘‘at compensation to members of the Board of Direc- (1) perform any activity relating to the licens- any time during the initial 18-month period of tors. The cooperative may provide reimburse- ing of health plan issuers; continuing coverage under this section’’. ments to such members for the reasonable and (2) assume financial risk directly or indirectly (4) BIRTH OR ADOPTION OF A CHILD.—Section necessary expenses incurred by the members in on behalf of members of a health plan purchas- 4980B(g)(1)(A) of the Internal Revenue Code of the performance of their duties as members of ing cooperative relating to any group health 1986 is amended by adding at the end thereof the Board. plan or individual health plan; the following new flush sentence: (3) CONFLICT OF INTEREST.—No member of the (3) establish eligibility, continuation of eligi- Board of Directors (or family members of such ‘‘Such term shall also include a child who is bility, enrollment, or premium contribution remembers) nor any management personnel of the born to or placed for adoption with the covered quirements for participants, beneficiaries, or in- cooperative may be employed by, be a consult- employee during the period of continued cov- dividuals based on health status, medical condi- ant for, be a member of the board of directors of, erage under this section.’’. tion, claims experience, receipt of health care, be affiliated with an agent of, or otherwise be a (d) EFFECTIVE DATE.—The amendments made medical history, evidence of insurability, or dis- representative of any health plan issuer, health by this section shall apply to qualifying events ability; care provider, or agent or broker. Nothing in the occurring on or after the date of the enactment (4) operate on a for-profit or other basis where preceding sentence shall limit a member of the of this Act for plan years beginning after De- the legal structure of the cooperative permits Board from purchasing coverage offered cember 31, 1996. profits to be made and not returned to the mem- through the cooperative. (e) NOTIFICATION OF CHANGES.—Not later bers of the cooperative, except that a for-profit (d) MEMBERSHIP AND MARKETING AREA.— than 60 days prior to the date on which this sec- health plan purchasing cooperative may be (1) MEMBERSHIP.—A health plan purchasing tion becomes effective, each group health plan formed by a nonprofit organization— cooperative may establish limits on the maxi- (covered under title XXII of the Public Health (A) in which membership in such organization mum size of employers who may become members Service Act, part 6 of subtitle B of title I of the is not based on health status, medical condition, of the cooperative, and may determine whether Employee Retirement Income Security Act of claims experience, receipt of health care, medi- to permit individuals to become members. Upon 1974, and section 4980B(f) of the Internal Reve- cal history, evidence of insurability, or disabil- the establishment of such membership require- nue Code of 1986) shall notify each qualified ity; and ments, the cooperative shall, except as provided (B) that accepts as members all employers or beneficiary who has elected continuation cov- in subparagraph (B), accept all employers (or individuals on a first-come, first-served basis, erage under such title, part or section of the individuals) residing within the area served by subject to any established limit on the maximum amendments made by this section. the cooperative who meet such requirements as size of and employer that may become a member; Subtitle D—Private Health Plan Purchasing members on a first-come, first-served basis, or on or Cooperatives another basis established by the State to ensure (5) perform any other activities that conflict SEC. 131. PRIVATE HEALTH PLAN PURCHASING equitable access to the cooperative. or are inconsistent with the performance of its COOPERATIVES. (2) MARKETING AREA.—A State may establish duties under this Act. (a) DEFINITION.—As used in this Act, the term rules regarding the geographic area that must (g) LIMITED PREEMPTION OF CERTAIN STATE ‘‘health plan purchasing cooperative’’ means a be served by a health plan purchasing coopera- LAWS.— April 18, 1996 CONGRESSIONAL RECORD — SENATE S3509

(1) IN GENERAL.—With respect to a health or standard imposed on the health plan issuer. 1132(c)(1) and (2)) shall apply to any informa- plan purchasing cooperative that meets the re- Such requirements or standards shall be en- tion required by the Secretary to be disclosed quirements of this section, State fictitious group forced by the State insurance commissioner for and reported under this section. laws shall be preempted. the State involved or the official or officials des- (d) APPLICABLE CERTIFYING AUTHORITY.—As (2) HEALTH PLAN ISSUERS.— ignated by the State to enforce the requirements used in this title, the term ‘‘applicable certifying (A) RATING.—With respect to a health plan is- of this Act. In the case of a group health plan authority’’ means, with respect to— suer offering a group health plan or individual offered by a health plan issuer in connection (1) health plan issuers, the State insurance health plan through a health plan purchasing with an employee health benefit plan, the re- commissioner or official or officials designated cooperative that meets the requirements of this quirements or standards imposed under this Act by the State to enforce the requirements of this section, State premium rating requirement laws, shall be enforced with respect to the health plan Act for the State involved; and except to the extent provided under subpara- issuer by the State insurance commissioner for (2) an employee health benefit plan, the Sec- graph (B), shall be preempted unless such laws the State involved or the official or officials des- retary. permit premium rates negotiated by the coopera- ignated by the State to enforce the requirements (e) REGULATIONS.—The Secretary may promul- tive to be less than rates that would otherwise of this Act. gate such regulations as may be necessary or be permitted under State law, if such rating dif- (B) LIMITATION.—Except as provided in sub- appropriate to carry out this Act. ferential is not based on differences in health section (c), the Secretary shall not enforce the (f) TECHNICAL AMENDMENT.—Section 508 of status or demographic factors. requirements or standards of this Act as they re- the Employee Retirement Income Security Act of (B) EXCEPTION.—State laws referred to in sub- late to health plan issuers, group health plans, 1974 (29 U.S.C. 1138) is amended by inserting paragraph (A) shall not be preempted if such or individual health plans. In no case shall a ‘‘and under the Health Insurance Reform Act of laws— State enforce the requirements or standards of 1995’’ before the period. (i) prohibit the variance of premium rates this Act as they relate to employee health bene- TITLE III—MISCELLANEOUS PROVISIONS among employers, plan sponsors, or individuals fit plans. SEC. 301. HMOS ALLOWED TO OFFER PLANS WITH that are members of a health plan purchasing (2) PREEMPTION OF STATE LAW.—Nothing in DEDUCTIBLES TO INDIVIDUALS cooperative in excess of the amount of such this Act shall be construed to prevent a State WITH MEDICAL SAVINGS ACCOUNTS. variations that would be permitted under such from establishing, implementing, or continuing (a) IN GENERAL.—Section 1301(b) of the Public State rating laws among employers, plan spon- in effect standards and requirements— Health Service Act (42 U.S.C. 300e(b)) is amend- sors, and individuals that are not members of (A) not prescribed in this Act; or ed by adding at the end the following new para- the cooperative; and (B) related to the issuance, renewal, or port- graph: (ii) prohibit a percentage increase in premium ability of health insurance or the establishment ‘‘(6)(A) If a member certifies that a medical rates for a new rating period that is in excess of or operation of group purchasing arrangements, savings account has been established for the that which would be permitted under State rat- that are consistent with, and are not in direct benefit of such member, a health maintenance ing laws. conflict with, this Act and provide greater pro- organization may, at the request of such member (C) BENEFITS.—Except as provided in sub- tection or benefit to participants, beneficiaries reduce the basic health services payment other- paragraph (D), a health plan issuer offering a or individuals. wise determined under paragraph (1) by requir- group health plan or individual health plan (b) RULE OF CONSTRUCTION.—Nothing in this ing the payment of a deductible by the member through a health plan purchasing cooperative Act shall be construed to affect or modify the for basic health services. shall comply with all State mandated benefit provisions of section 514 of the Employee Retire- ‘‘(B) For purposes of this paragraph, the term laws that require the offering of any services, ment Income Security Act of 1974 (29 U.S.C. ‘medical savings account’ means an account category or care, or services of any class or type 1144). which, by its terms, allows the deposit of funds of provider. (c) CONTINUATION.—Nothing in this Act shall and the use of such funds and income derived (D) EXCEPTION.—In those States that have en- be construed as requiring a group health plan or from the investment of such funds for the pay- acted laws authorizing the issuance of alter- an employee health benefit plan to provide ben- ment of the deductible described in subpara- native benefit plans to small employers, health efits to a particular participant or beneficiary in graph (A).’’. plan issuers may offer such alternative benefit excess of those provided under the terms of such (b) MEDICAL SAVINGS ACCOUNTS.—It is the plans through a health plan purchasing cooper- plan. sense of the Committee on Labor and Human ative that meets the requirements of this section. SEC. 202. ENFORCEMENT OF STANDARDS. Resources of the Senate that the establishment (h) RULES OF CONSTRUCTION.—Nothing in this (a) HEALTH PLAN ISSUERS.—Each State shall of medical savings accounts, including those de- section shall be construed to— require that each group health plan and indi- fined in section 1301(b)(6)(B) of the Public (1) require that a State organize, operate, or vidual health plan issued, sold, renewed, offered Health Service Act (42 U.S.C. 300e(b)(6)(B)), otherwise create health plan purchasing co- for sale or operated in such State by a health should be encouraged as part of any health in- operatives; plan issuer meet the standards established surance reform legislation passed by the Senate (2) otherwise require the establishment of under this Act pursuant to an enforcement plan through the use of tax incentives relating to health plan purchasing cooperatives; filed by the State with the Secretary. A State contributions to, the income growth of, and the (3) require individuals, plan sponsors, or em- shall submit such information as required by the qualified use of, such accounts. ployers to purchase group health plans or indi- Secretary demonstrating effective implementa- (c) SENSE OF THE SENATE.—It is the sense of vidual health plans through a health plan pur- tion of the State enforcement plan. the Senate that the Congress should take meas- chasing cooperative; (b) EMPLOYEE HEALTH BENEFIT PLANS.—With ures to further the purposes of this Act, includ- (4) require that a health plan purchasing co- respect to employee health benefit plans, the ing any necessary changes to the Internal Reve- operative be the only type of purchasing ar- Secretary shall enforce the reform standards es- nue Code of 1986 to encourage groups and indi- rangement permitted to operate in a State; tablished under this Act in the same manner as viduals to obtain health coverage, and to pro- (5) confer authority upon a State that the provided for under sections 502, 504, 506, and 510 mote access, equity, portability, affordability, State would not otherwise have to regulate of the Employee Retirement Income Security Act and security of health benefits. health plan issuers or employee health benefits of 1974 (29 U.S.C. 1132, 1134, 1136, and 1140). The plans; or SEC. 302. HEALTH COVERAGE AVAILABILITY civil penalties contained in paragraphs (1) and STUDY. (6) confer authority upon a State (or the Fed- (2) of section 502(c) of such Act (29 U.S.C. eral Government) that the State (or Federal (a) IN GENERAL.—The Secretary of Health and 1132(c)(1) and (2)) shall apply to any informa- Government) would not otherwise have to regu- Human Services, in consultation with the Sec- tion required by the Secretary to be disclosed late group purchasing arrangements, coalitions, retary, representatives of State officials, con- and reported under this section. or other similar entities that do not desire to be- sumers, and other representatives of individuals (c) FAILURE TO IMPLEMENT PLAN.—In the come a health plan purchasing cooperative in and entities that have expertise in health insur- case of the failure of a State to substantially en- accordance with this section. ance and employee benefits, shall conduct a force the standards and requirements set forth two-part study, and prepare and submit reports, (i) APPLICATION OF ERISA.—For purposes of enforcement only, the requirements of parts 4 in this Act with respect to group health plans in accordance with this section. and 5 of subtitle B of title I of the Employee Re- and individual health plans as provided for (b) EVALUATION OF AVAILABILITY.—Not later tirement Income Security Act of 1974 (29 U.S.C. under the State enforcement plan filed under than January 1, 1997, the Secretary of Health 1101) shall apply to a health plan purchasing subsection (a), the Secretary, in consultation and Human Services shall prepare and submit to cooperative as if such plan were an employee with the Secretary of Health and Human Serv- the appropriate committees of Congress a report, welfare benefit plan. ices, shall implement an enforcement plan meet- concerning— ing the standards of this Act in such State. In (1) an evaluation, based on the experience of TITLE II—APPLICATION AND the case of a State that fails to substantially en- States, expert opinions, and such additional ENFORCEMENT OF STANDARDS force the standards and requirements set forth data as may be available, of the various mecha- SEC. 201. APPLICABILITY. in this Act, each health plan issuer operating in nisms used to ensure the availability of reason- (a) CONSTRUCTION.— such State shall be subject to civil enforcement ably priced health coverage to employers pur- (1) ENFORCEMENT.— as provided for under sections 502, 504, 506, and chasing group coverage and to individuals pur- (A) IN GENERAL.—A requirement or standard 510 of the Employee Retirement Income Security chasing coverage on a non-group basis; and imposed under this Act on a group health plan Act of 1974 (29 U.S.C. 1132, 1134, 1136, and 1140). (2) whether standards that limit the variation or individual health plan offered by a health The civil penalties contained in paragraphs (1) in premiums will further the purposes of this plan issuer shall be deemed to be a requirement and (2) of section 502(c) of such Act (29 U.S.C. Act. S3510 CONGRESSIONAL RECORD — SENATE April 18, 1996 (c) EVALUATION OF EFFECTIVENESS.—Not later years alone, and over 80 million Ameri- ing the scope of this bill. The lessons of than January 1, 1998, the Secretary of Health cans have preexisting conditions that the past are clear. If we try to do too and Human Services shall prepare and submit to could make it difficult for them to much, we will fail to do anything. the appropriate committees of Congress a report, maintain health coverage when they This bill is too important to people concerning the effectiveness of the provisions of this Act and the various State laws, in ensuring change jobs. who may not have a voice in the Halls the availability of reasonably priced health cov- The current health insurance system of Congress by any major organization, erage to employers purchasing group coverage provides too little protection for indi- but who will be helped tremendously and individuals purchasing coverage on a non- viduals and families with health prob- by this legislation. People like Tom group basis. lems and makes it too difficult for em- Hall, a retired construction worker and SEC. 303. SENSE OF THE COMMITTEE CONCERN- ployers, particularly small employers, farmer from Oklahoma City. ING MEDICARE. to obtain adequate coverage for their After 30 years of being covered by his (a) FINDINGS.—The Committee on Labor and employees. It also locks people into employer, Tom started his own com- Human Resources of the Senate finds that the Public Trustees of Medicare concluded in their jobs out of fear they will lose their pany and tried to buy an insurance pol- 1995 Annual Report that— health care coverage if they change icy for his family. However, the same (1) the Medicare program is clearly jobs or if they lose their jobs. insurer that had covered him while he unsustainable in its present form; Let me remind my colleagues that was employed turned him down. Sev- (2) ‘‘the Hospital Insurance Trust Fund, Federal law preempts States from pro- eral years later, he did find an insur- which pays inpatient hospital expenses, will be viding portability to the majority of ance policy that covers everything but able to pay benefits for only about 7 years and Americans who get their coverage his preexisting heart condition. is severely out of financial balance in the long Mr. Hall testified before our commit- range’’; and through so-called self-insured health (3) the Public Trustees ‘‘strongly recommend plans. Therefore, only Congress, only tee, and it was very powerful testi- that the crisis presented by the financial condi- the Federal Government, can guaran- mony in its own significant way. Clear- tion of the Medicare trust fund be urgently ad- tee insurance portability and an end to ly, Mr. Hall would be protected by the dressed on a comprehensive basis, including a job lock. That is one of the main rea- group-to-individual portability provi- review of the programs’s financing methods, sons all major organizations represent- sions of this bill. benefit provisions, and delivery mechanisms’’. ing the States have endorsed S. 1028. There are other families who would (b) SENSE OF THE COMMITTEE.—It is the Sense The Health Insurance Reform Act be- benefit. One is from Herndon, VA. A of the Committee on Labor and Human Re- sources of the Senate that the Senate should fore the Senate today passed the Sen- daughter who has cerebral palsy is ex- take measures necessary to reform the Medicare ate Labor and Human Resources Com- cluded from coverage for at least 12 program, to provide increased choice for seniors, mittee in August by a unanimous vote. months every time the husband, Rob- and to respond to the findings of the Public It now has 65 cosponsors, 27 Repub- ert, changes jobs. While they have Trustees by protecting the short-term solvency licans and 38 Democrats. It is clear waited for these preexisting conditions and long-term sustainability of the Medicare that, if this bill were to come to a vote to expire, they have had to pay both program. in its current form, it would have more COBRA coverage and coverage under SEC. 304. EFFECTIVE DATE. than enough votes to overcome any po- the new employer plan. Except as otherwise provided for in this Act, tential filibuster. The House of Rep- Mr. President, I also visited with a the provisions of this Act shall apply as follows: (1) With respect to group health plans and in- resentatives already has passed legisla- young woman who is an employee of dividual health plans, such provisions shall tion containing health insurance re- the U.S. Senate. She has cancer. Her apply to plans offered, sold, issued, renewed, in form similar to S. 1028. husband is completing his graduate effect, or operated on or after January 1, 1996; Moreover, the bill has been endorsed work, and they hope to move to Flor- and by a wide range of organizations, in- ida. She is afraid to leave the coverage (2) With respect to employee health benefit cluding the National Governors’ Asso- she has under her Federal employees plans, on the first day of the first plan year be- ciation, the National Association of health insurance for fear if they move ginning on or after January 1, 1996. State Insurance Commissioners, the to Florida, she may not be able to get SEC. 305. SEVERABILITY. If any provision of this Act or the application Consortium for Citizens with Disabil- insurance which would cover her be- of such provision to any person or circumstance ities, Small Business United, the Na- cause of her having cancer. is held to be unconstitutional, the remainder of tional Association of Manufacturers, These are just some examples of peo- this Act and the application of the provisions of the National Federation of Independent ple who would be helped directly by such to any person or circumstance shall not be Business, the U.S. Chamber of Com- this legislation. affected thereby. merce, the American Medical Associa- Only a year after President Clinton The PRESIDING OFFICER. The Sen- tion, American Hospital Association, waved his veto pen and said he would ator from Kansas. Families USA, Consumers Union, the not sign any bill that did not contain Mrs. KASSEBAUM. Mr. President, American Association of Retired Per- universal coverage, the President now Congress has spent significant time sons, and the AFL–CIO. says he will sign this carefully targeted during the past 4 years debating com- The portability provisions of this bill health insurance portability bill. We prehensive health care reform and are even supported by many health in- should take him up on that offer. major reforms to the Medicaid and surers, including the American Asso- The bill before us today does not Medicare Programs. While we have ciation of Health Plans, Aetna, Pruden- achieve universal coverage. It is a far filled pages of newspapers and the CON- tial, Cigna, United Healthcare and the cry from the comprehensive health re- GRESSIONAL RECORD and hearing Blue Cross and Blue Shield Associa- form proposals that were considered by records, our actions have not equaled tion, which is the largest health insur- Congress only in the last Congress. our words. ance carrier in the individual market. However, it would immediately and Meanwhile, many American families Doctors, hospitals, insurers, HMO’s, measurably improve the lives of mil- worry about the availability, port- large business, small business, orga- lions of Americans. ability, and cost of their own health nized labor, and consumer groups all Through sensible, market-based re- care coverage. support the bill before us today. When forms, the Health Insurance Reform The health insurance problem is not one looks at the history of health care Act would, first, limit the ability of in- merely one of perception. The health reform and the difficult tradeoffs and surers and employers to impose exclu- care market continues to transform it- policy choices that must be made, that sions for preexisting conditions; sec- self. An example is the rapid movement fact alone, I suggest, is remarkable. ond, prevent insurers from dropping toward managed care. At the same The majority of these organizations coverage when an individual changes time, the number of uninsured and have made clear that their support is jobs or family members become sick; underinsured Americans has continued conditioned on S. 1028 remaining free of and third, help small companies gain to climb. There are now over 40 million contentious amendments. more purchasing clout in the market- Americans without health insurance, We have a historic opportunity to place. and that number continues to grow. pass limited, but real, health reform Despite its limited scope, the General Over 1 million working Americans for the American people. We must not Accounting Office estimates that the have lost health insurance in the last 2 squander this opportunity by expand- Health Insurance Reform Act would April 18, 1996 CONGRESSIONAL RECORD — SENATE S3511 help at least 25 million Americans each verse selection problems that could re- the Labor and Human Resources Com- year, and the Congressional Budget Of- sult from broader individual market mittee. fice predicts that it would do so with- reforms. I can remember going back the last out any cost to the American tax- The American Academy of Actuaries, time that the Senate was considering payers. the Congressional Budget Office, the major legislation—we have had other Mr. President, I do not know whether Rand Corp., the Hay Huggins Group legislation in the meantime—the com- it is 25 million. I do not know if it is 10 and other credible independent actuar- prehensive legislation that we consid- million or if it is 5 million. What mat- ies have confirmed that this narrow ered now some 2 years ago. During that ters is each and every one of us in this provision would have only a minimal period of time, Senator KASSEBAUM was U.S. Senate knows someone it would impact on the cost of health coverage tireless in trying to find some common help. And if it only helps those few in the individual market. There are ground. We had some areas of agree- that we know even, it would be well some who have vastly exaggerated ment. We were unable, obviously, to worth positive consideration on the what the premium increase would be, get to the full measure of agreement floor of the Senate. but those that I have mentioned are during those considerations. But I I believe the legislation has achieved sources that have no ax to grind in this think all of us who were a part of that broad consensus for two main reasons. area and whose reliability on projec- effort knew that Senator KASSEBAUM First, it is narrowly focused. It does tions are totally objective. was trying to find the areas of common not contain employer mandates, man- The substitute goes even further. It ground on which we could move for- datory purchasing alliances, new taxes expressly provides that if a State has ward. At the end of the consideration or new bureaucracies. Instead, the leg- adopted or adopts in the future a high- of that legislation, I can remember a islation focuses only on those areas risk pool or other means of allowing in- conversation that we had. where broad bipartisan agreement ex- dividuals to maintain health coverage, In her typical manner, she expressed isted during the health care debate in that State law or program will apply in a very compelling view that we should the 103d Congress and where State in- lieu of the group-to-individual port- not let the issues of health care fall by surance reforms have demonstrated the ability provision contained in the bill. the wayside and that we ought to try ability to work. Instead of preempting State reforms to look through the various proposals Second, the legislation was crafted that are working or prescribing a one- that had been considered at that period with a significant input from consum- size-fits-all solution from Washington, of time and that we ought to try to ers, insurers, businesses, hospitals and S. 1028 allows each State to fashion in- piece what we could together that doctors. It is carefully attuned to the dividual market solutions that are ap- could make an important difference for rapidly changing private health care propriate for individuals in that State. the American people and see if we market. This is another reason why both the could not work out a bipartisan effort. The Health Insurance Reform Act is Governors and the State insurance It was really from that initiative and not without some detractors. We have commissioners support the bill. from that energy that she has spent worked closely with the health insur- Mr. President, I think we all know hour after hour after hour in small ance industry, and insurers generally those who would be helped by this leg- meetings, large meetings, hearings, in support the bill. For example, the islation, as I said. The Health Insur- visiting with various interested mem- Health Insurance Association of Amer- ance Reform Act does not strike out in bers of our committee and other Mem- ica submitted testimony in favor of the a bold new direction, but it is a posi- bers of the Senate, and really helped in vast majority of the bill’s provisions. tive step forward that will help reduce developing this legislation. In an ex- However, some continue to raise con- barriers to health coverage for millions traordinary committee action, we were cerns about one provision of the legis- of working Americans. It is also an op- able to bring all the members and get lation that is designed to help individ- portunity to demonstrate to the Amer- a unanimous vote in support of this uals and families who have played by ican people that Republicans and legislation, which is really an extraor- the rules to maintain health coverage Democrats can work together to ad- dinary achievement and accomplish- if they lose their job or leave a job to dress their most serious concerns re- ment at any time. It certainly is now work for an employer that does not garding health care. in this Congress, which in many in- offer coverage. As Robert Samuelson stated in his stances has had more contentious de- I believe, however, that this provi- column on April 17 in the Washington bates and less agreement on many pub- sion strikes a careful balance between Post: lic policy issues. the need to provide consumers access The virtue of this proposal is its modesty. But in this area, it is really a result to individual coverage and the need to There is nothing wrong with constructive of her own particular skills and talents protect the fragile individual insurance tinkering. We’ve had enough of grand re- and energy and strong commitment market. forms, which promise much and deliver lit- that we are here today with the ex- The Health Insurance Reform Act tle. However, if enacted, it would provide a traordinary support that she has men- would provide access to individual in- little extra peace of mind for those who have tioned in regard to both Republicans surance only for those who have main- already had employer-paid insurance. and Democrats. I think all Members of tained prior continuous coverage under He concludes: the Senate, obviously, who know her an employer-sponsored health plan for This legislation isn’t exciting but then and know her perseverance pay tribute at least 11⁄2 years, who have exhausted again good government often isn’t. to her extraordinary leadership on this their COBRA benefits, and who are in- Mr. President, it may not be excit- issue. eligible for coverage under another ing, but let me tell you, if you know I certainly at the outset of this de- group policy. one person this legislation would help, bate and discussion acknowledge that Moreover, S. 1028 contains no restric- it is, indeed, exciting. and pay tribute to it. I think when the tions on premiums. There are many I yield the floor. history of health policy is written, her who wish that it did, and it leaves Mr. KENNEDY addressed the Chair. imprint on not just this legislation but broader reforms, such as guaranteed The PRESIDING OFFICER (Mr. on so many other measures of health issue for individuals who have not had INHOFE). The Senator from Massachu- will be very, very much recognized, as prior coverage, guaranteed issue for setts. it should be. It has been a personal self-employed and portability between Mr. KENNEDY. Mr. President, I pleasure to have the chance to work individual health plans to the States. want, first of all, as we begin the con- with her. I know all the members of As a result, the bill requires individ- sideration of the legislation which can the committee feel the same way. uals to pay into the system before make such an extraordinary difference Mr. President, the legislation we are being able to use its provisions for con- to millions of our fellow citizens in this considering today will end many of the tinued health coverage. This group-to- country, mention at the outset my most serious health insurance abuses individual portability provision is care- great respect, and I think the respect and provide greater protection to mil- fully circumscribed precisely to avoid all of us in the Senate should have, for lions of families. It is an opportunity potential premium increases and ad- the chairperson of our committee of we cannot afford to miss. S3512 CONGRESSIONAL RECORD — SENATE April 18, 1996 The abusive practices addressed by ance risks. Without health insurance, moving from group coverage to individ- this bill create endless, unnecessary Tom Meredith had to wait a year to get ual coverage. It prohibits group health suffering. Millions of Americans are the surgery he needed. After spending plans from excluding any employee forced to pass up opportunities to ac- $60,000 of his own funds, his cancer re- based on health status. cept jobs that would improve their curred and he died of cancer about a The portability provisions of the bill standard of living or offer them greater year ago. Tom Meredith might still be mean that individuals with coverage opportunities because they are afraid alive today if he had not been forced to under a group health plan will not be they will lose their health insurance. wait that year. locked into their job for fear that they Many others have to abandon the goal One of the most serious consequences will be denied coverage or face a new of starting their own business because of the current system is job lock. exclusion for a preexisting condition. health insurance would be unavailable Workers who want to change jobs to These provisions will benefit at least 25 to them or members of their families. improve their careers or provide a bet- million Americans annually, according Children who age out of their par- ter standard of living for their families to the General Accounting Office. In ents’ policies often find themselves un- must give up that opportunity because addition, the provisions will provide able to obtain their own insurance if it means losing their health insurance. greater security for the 131 million they have any significant health prob- A quarter of all American workers say Americans currently covered under lems. Early retirees can find them- they are forced to stay in a job they group health plans. selves uninsured just when they are en- otherwise would have left because they The bill will also help small busi- tering the years of highest health are afraid of losing their health insur- nesses provide better and less expen- risks. ance. sive coverage for their employees. Pur- Other Americans lose their health in- Diane Bratten, from Grove Heights, chasing cooperatives will enable small surance because they become sick or MN, her family had insurance through groups and individuals to join together lose their job or change their job, even Diane’s employer. Because of a history to negotiate better rates in the mar- when they have faithfully paid their in- of breast cancer—now in remission— ket. As a result, they can obtain the surance premiums for many years. Diane and her family will not be able kind of clout in the marketplace cur- With each passing year, the flaws in to get decent coverage if she decides to rently available only to large employ- the private health insurance market change jobs or is laid off. ers. become more serious. More than half of The legislation that Senator KASSE- The bill also provides great flexibil- all insurance policies impose exclu- BAUM and I have introduced will ad- ity for States to meet the objective of sions for preexisting conditions. As a dress these problems effectively. The access to affordable health care for in- result, insurance is often denied for the Kassebaum-Kennedy Health Insurance dividuals who leave their group health very illnesses most likely to require Reform Act is a health insurance bill of plans. medical care. The purpose of such ex- rights for every American and for During the debate on health reform clusions is reasonable to prevent people every business as well. The legislation in the last Congress, even the oppo- from gaming the system by purchasing contains many of the provisions from nents of comprehensive reform urged coverage only when they get sick, but the 1994 health reform debate which re- Congress to pass at least the reforms current practices are indefensible. ceived bipartisan support, such as an that everyone supported—portability No matter how faithfully people pay increased access to health insurance, of coverage, guaranteed availability of their premiums, they often have to increased portability, protection of coverage, and limitations on exclusions start over again with a new exclusion health benefits for those who lose their for preexisting conditions. These are period if they change jobs or lose their jobs or want to start their own busi- exactly the provisions included in this coverage. And 81 million Americans ness, and greater purchasing power for bill. have conditions that could subject individuals and small businesses. Senator PHIL GRAMM, over 2 years them to such exclusions if they lose Those who have insurance deserve ago said: their current health care coverage. the security of knowing that their cov- We can fix the system and make it possible Sometimes the exclusions make them erage cannot be canceled, especially for people to change jobs without losing completely uninsurable. when they need it the most. They de- their health insurance. Every one of the pro- Insurers impose exclusions for preserve the security of knowing that if posals that has been made to reform health care—every single bill—has a provision that existing conditions on people who do they pay their insurance premiums for would make it possible for people to change not deserve to be excluded from the years, they cannot be denied coverage, jobs without losing their insurance. be subjected to a new exclusion for a coverage they need. Sometimes insur- Majority Leader DOLE, in his state- ers deny coverage to entire firms if one preexisting condition when they ment on the floor of the Senate in Au- employee of the firm is in poor health change jobs, join another group policy, gust 1994 said this: or when they need to purchase cov- or exclude that employee from the cov- We will be back . . . And you can bet that erage. In other cases, entire categories erage in the individual market. Busi- health care will be near the top of our agen- of businesses with millions of employ- nesses, especially small businesses, de- da. . . . There are a lot of plans and some ees are red lined out of coverage. serve the right to purchase health in- have similarities. Many of us think we ought Even if people are fortunate enough surance for their employees at a rea- to take all the common parts of these plans, to gain coverage and have no preexist- sonable price. put them together and pass that bill. ing condition, their coverage can be Our Health Insurance Reform Act ad- Here is our chance. This is the bill. canceled if they have the misfortune to dresses these fundamental flaws in the The Health Insurance Reform Act is become sick, even after paying pre- private insurance system. The bill lim- a modest, responsible, bipartisan solu- miums for years. its the ability of insurance companies tion to many of the most obvious Robert Frasher from Mansfield, OH, to impose exclusions for preexisting abuses in the health insurance market- works for an employer who offers conditions. Under the legislation, no place today. The bill was approved by health coverage to employees, but the exclusion can last for more than 12 the Senate Labor and Human Re- insurance company will not cover him. months. Once someone has been cov- sources Committee last August by a Why? Because he has Crohn’s disease. ered for 12 months, no new exclusion unanimous vote of 16 to 0. It is similar Jean Meredith of Harriman, TN, and can be imposed as long as there is no to proposals made by President Clinton her husband Tom owned Fruitland gap in coverage, even if someone in his recent balanced budget plan. USA, a mom-and-pop convenience changes jobs, loses their job, or The measures it includes are also vir- store. They had insurance through changes insurance companies. tually identical to provisions of legis- their small business for 8 years until The bill requires insurers to sell and lation offered by Senator DOLE in the Tom was diagnosed with non-Hodgkin’s renew group health policies for all em- last Congress—legislation supported by lymphoma, and their insurance com- ployers who want coverage for their virtually every Republican Member. pany dropped them. When the employees. It guarantees renewability Sponsors range from the most conserv- Merediths asked why, they were told of individual policies. It prohibits in- ative Members of the Senate to the they were no longer profitable insur- surers from denying insurance to those most liberal—because these reforms April 18, 1996 CONGRESSIONAL RECORD — SENATE S3513 represent simple justice. They are not bill, without these controversial It deserves, most importantly, to be- issues of ideology or partisanship. amendments. come law. Every day that we delay the Support for the bill by outside groups These objectionable provisions of the legislation, there are other fellow citi- is equally broad. Almost 200 groups House bill may serve the special inter- zens in this country that continue to have expressed their support. These in- ests, but they have no place in this leg- be unable to get the kind of protections clude business associations like the islation. Their adoption will almost that they need and that they deserve. chamber of commercve, National Small certainly kill this bill, and destroy the Hopefully, we will have overwhelming Business United, the National Associa- hopes of millions of Americans for the bipartisan vote on this legislation. tion of Manufacturers, the ERISA In- kind of modest but effective reform Mr. President, I see a number of our dustry Committee, and the Association that leaders of both parties have sup- colleagues that will be speaking. I just of Private Pension and Welfare Plans. ported in the past. hope that those that do have amend- The AFL–CIO has endorsed the pro- Medical savings accounts, which are ments—we hope there are not many of gram, so that on this issue business included in a major amendment to be those—will make their amendments and labor are united. The program is offered later in this debate are particu- available to us at the earliest possible also supported by the National Gov- larly objectionable. They are opposed time so we can have a chance to review ernors’ Association and the National by virtually every credible health pol- those amendments and to see what dis- Association of State Insurance Com- icy expert. They attract the healthy posal we can make of them. and wealthy, and add up to an unjusti- missioners, who believe the legislation PRIVILEGE OF THE FLOOR represents an appropriate balance be- fied $1.8 billion Federal giveaway to Mr. KENNEDY. Mr. President, I ask those who need it the least. They are a tween Federal and State responsibil- unanimous consent that members of gift to the insurance companies with ities. the staff, four fellows, Lauren Ewers, the worst record of abusive practices— Responsible insurance companies Susan Castleberry, Sara Thom, and a poorly disguised reward for millions support this bill, including the insur- Anna Marie Murphy, be granted privi- of dollars of campaign contributions. ance companies in the Alliance for leges of the floor during the debate on And by pulling the healthiest individ- Managed Care, the American Associa- health insurance reform. uals out of the conventional insurance tion of Health Plans, Phoenix Life In- The PRESIDING OFFICER. Without market, they will raise premiums for surance Co., the Blue Cross/Blue Shield objection, it is so ordered. Association, and other insurance com- everyone else, including those who Mrs. KASSEBAUM. Mr. President, I panies. Blue Cross and Blue Shield are need coverage the most. ask unanimous consent that Anne Rufo In fact, the Congressional Budget Of- the largest carriers in the individual and Kevin McShane be extended floor fice concluded that, ‘‘In the long run, insurance market. The American Asso- privileges during the duration of the the existence of any type of cata- ciation of Health Plans has millions of strophic plus MSA option that would debate. individual subscribers. These respon- The PRESIDING OFFICER. Without be attractive to a large number of peo- sible companies know that the insur- objection, it is so ordered. ple could threaten the existence of ance system is broken and needs to be Mrs. KASSEBAUM. Mr. President, I standard health insurance.’’ fixed. Members of the Senate who are seri- want to express my appreciation to The Independent Insurance Agents of ous about insurance reform should vote Senator KENNEDY for his thoughtful America—the largest association of against all controversial amend- statement. He is one who has been in- agents in the country—sees the trage- ments—including medical savings ac- volved in health care issues for many, dies created by the current system many years and cares deeply about it. counts. Senator KASSEBAUM and I have every day. They support this bill. agreed that we will vigorously oppose He would, I am sure, like to have ex- Doctors, hospitals, and other health all such amendments—even those that panded this bill much further. But we providers see those tragedies as well, we might support under other cir- worked hard to construct, as he men- and they support the legislation. It has cumstances. The Democratic leader, tioned, something that we felt could be been endorsed by the American Medi- and many other Senators of both par- passed and could be approved by the cal Association, the American Hospital ties have joined us in this pledge. This widest number in both the U.S. Senate Association, and over 44 medical spe- is a test of the Senate’s seriousness and and the House of Representatives. So I cialty societies. This bill also enjoys ability to put the interest of the Amer- have greatly appreciated his leadership the support of a number of the ican people ahead of the special inter- in the Labor and Human Resources consumer groups that understand the ests. Committee, as we have worked hard need for legislation so well, including This legislation is not comprehensive and constructively on both sides of the the Consortium for Citizens with Dis- health reform. It will not solve all the aisle in the committee, as well as on abilities, and Consumers Union. problems in the current system. But it the floor, to bring this to fruition In fact, the only opposition to this is a constructive step forward—a step today. legislation comes from those who prof- that will help millions of Americans. I One who has been a great asset in it from the abuses in the current sys- urge its adoption. working with us is the Senator from tem. Mr. President, if we are looking for Tennessee, who is waiting to speak. In his State of the Union Address last just a shorthand explanation of what Not only has he been an exceptional January, President Clinton challenged the legislation achieves, effectively, it legislator on this issue, he comes to it Congress to pass this bill. Now that the is the Health Insurance Reform Act, also with an expertise that the rest of legislation has been brought to the the health insurance bill of rights. It us do not have—as a renowned cardi- floor of the Senate, I believe it will guarantees that your insurance cannot ologist. So we have valued his willing- pass overwhelmingly—unless some in be taken away because you, first, lose ness to be very engaged in this issue. the Senate insist on following the Re- your job; second, change your job; I have greatly appreciated his help on publican majority in the House of Rep- third, become sick; or, fourth, start the Labor and Human Resources Com- resentatives by addressing controver- your own business. It protects against mittee as the ranking member. Senator sial and harmful provisions like medi- unfair preexisting conditions exclusion KENNEDY and I have worked together cal savings accounts, federalization of which affect millions of American citi- to achieve this bill we are presenting multiple employer welfare arrange- zens who virtually have no control over today. ments, Federal caps on malpractice those preexisting conditions. In an im- I yield the floor. awards, repeal of MediGap rules pro- portant way it increases the purchas- Mr. FRIST addressed the Chair. tecting senior citizens against profit- ing power of small businesses so that The PRESIDING OFFICER. The Sen- eers, or provisions making it more dif- they will be able to provide health in- ator from Tennessee is recognized. ficult to combat the waste, fraud and surance to the millions of Americans Mr. FRIST. Mr. President, I rise to abuse in the current Medicare and Med- who work in small businesses and have congratulate Senators KASSEBAUM and icaid Programs. Almost all of the 200 no coverage at this time. KENNEDY for introducing what I con- groups that support the legislation This is a modest bill, an important sider to be a fair, balanced, focused, have urged the Senate to pass a clean bill. It deserves overwhelming passage. and excellent bill that will be to the S3514 CONGRESSIONAL RECORD — SENATE April 18, 1996 benefit of over 25 million Americans. I plant, and after they are ready to re- scionable. People who are willing to welcome this opportunity to focus turn to the work force and productive play by the rules—and again, this bill today on the Health Insurance Reform lives, there is a huge barrier there addresses people who currently have Act. today, a barrier that, once we remove insurance coverage, who have paid in, The bill before us provides protection it with this bill, will allow that indi- or had their employer pay in, and have for some 25 million Americans, who, vidual to live a more productive life, a coverage. These are people who have each year—it is a rolling number—are life more fulfilling, a better quality of played by the rules in the system. at risk for becoming uninsured. Too life. When I give a person a new heart These people should not be denied the many Americans today have to live today, the next day they start asking opportunity to lead productive lives. each day with that fear of the loss of questions because they are petrified I applaud Majority Leader DOLE, who health insurance for preexisting ill- that they are not going to be able to go has a long record of support for health ness—for example, if they have heart back to their old job, to go back and care reform, for bringing this bill to disease or if they have a stroke—and get insurance if they decide to change the Senate floor. It is important to de- for the lack of insurance portability jobs. bate, and it is important for us to take when they move from one job to an- They get trapped in a current situa- this step and vote on this legislation. other job. tion for the rest of their lives because Before I entered the public service as I commend Senator KASSEBAUM for of this lack of portability of insurance U.S. Senator a year and a half ago, the her leadership in crafting this legisla- coverage. The cost of their care, by no Senate had already debated and even tion because it truly is balanced, bipar- fault of their own, restricts their free- passed provisions almost identical to tisan, and focused. There has been dom of movement within the work- this bill—debated and passed. Unfortu- much misinformation and misunder- place. nately, as the scope of many of these standing of what the provisions in this I cannot help but to think back to bills grew larger and larger, the sup- bill truly accomplish. Its objectives are last July during our Labor and Human port for the overall bill dwindled. As a very well-defined, very specific. Resources Committee when a man from result, we are here today still debating I reject the notion that this bill, in Oklahoma, Tom Hall, testified before those long-awaited insurance reforms. any way, resembles, as has been al- us. He reminded me so directly of the In closing, while this bill is not a leged, or is similar to President Clin- hundreds of patients who have told me cure-all—and we should not pretend it ton’s very large, massive, failed health this same story. He was denied individ- to be a cure-all, but it is a good first care plan. This bill is very different ual coverage because of what we call a step—it is incremental, it is straight- and should not be confused with the preexisting heart condition. But it was forward, it is rationale, it is focused, President’s. This bill contains the very denied by the same insurer that he had and it is direct. The bill will correct provisions which had broad, very bipar- insurance with for the last 30 years. It many of those imperfections in the tisan support throughout the entire was denied because he wanted to go out market that we have today for health health care debate. and start his own company. The insur- insurance. I am confident that this Congress The bill before us today proves that ance company who he had worked with will be the one—this Congress will be we can move forward incrementally, for 30 years—the same person, the same the one—to deliver these much-needed rationally, step by step, to fix the prob- condition—when he wanted to go out reforms. lems in our health care system today— and start his own company, initially I thank the President. I yield the without a massive Federal Government denied that insurance. Eventually, yes, floor. takeover of the entire delivery system. he got that insurance. But, remember, Mr. ROCKEFELLER addressed the I am a physician, and as we talk he had a heart condition. He got that Chair. about this bill and as we look at the insurance, but it did not cover his The PRESIDING OFFICER. The Sen- provisions of this bill, I see those faces heart condition. ator from West Virginia. of hundreds—in fact, even thousands— Well, this bill will address that. It PRIVILEGE OF THE FLOOR of patients who I have had the oppor- passed the Labor Committee unani- Mr. ROCKEFELLER. Mr. President, I tunity to serve in the past. Too many mously and is currently supported by ask unanimous consent that Greg of those faces, when I picture them, are well over half of the U.S. Senate. It Jones, a legislative fellow in my office, faces of terror, of fear, that one day limits exclusions for preexisting medi- be allowed privileges of the Senate they will lose the insurance they have, cal conditions, it guarantees renewabil- floor. which they have purchased and that ity of health coverage, and it reduces The PRESIDING OFFICER. Without they have been a player in purchasing, this concept of job-lock—being locked objection, it is so ordered. historically, that they will lose it, and in a job—by making health insurance Mr. ROCKEFELLER. Mr. President, I that it will be taken away simply be- coverage portable from one job to an- want to congratulate the Senator from cause they want to change jobs or other. In other words, when this bill Tennessee for the remarks just made. leave a group plan, leave an insurance becomes law, people like Tom Hall will There is really an extraordinary syn- plan to go out and set up their own no longer be locked into jobs or pre- ergy between Senator KASSEBAUM and business. vented from starting their own busi- Senator KENNEDY which has produced As the only physician in this body, I nesses for fear of losing their health this legislation. It is interesting. do feel a very special responsibility to coverage. I was home last week in my State, speak out loudly, clearly, and force- As a doctor, there is nothing worse and I was talking about this bill. As I fully in support of those very practical than having a patient tell me that he talked, a lot of the feelings that a lot solutions and patient protection when or she cannot afford health care due to of us had 2 or 3 years ago began to the Senate considers matters dealing denial of coverage by an insurance come back. When the larger com- with these challenging issues of health company. Tragically, over 1 million prehensive health legislation failed, it care. Each time I make a decision in working Americans have lost health in- was just pulled to the ground by Harry this body regarding health care legisla- surance over the last 2 years. Over 80 and Louise, special interests, and other tion, I apply some very stringent tests million Americans have preexisting things, there may be a feeling out that go back to my experience as a conditions of some sort that could there in the land that, well, since that physician delivering care to individ- make it difficult, if not impossible, for did not pass, I guess things must be uals, one on one, who need that care, them to maintain coverage when they going better. Of course, that is not who depend on that care for their qual- change jobs. Many of these people are true. Things are really worse. The sys- ity of life and for their well-being. willing to pay the insurance premiums. tem is in worse condition than it was In my practice as a heart and lung In many cases, those insurance pre- at that time, and people, I think, in- transplant surgeon, I shared daily the miums could be costly. But they can- creasingly know that. obstacles that patients face. They tell not find coverage at any price. I think what we have to do is wait for you about that every day in your of- As a physician and as someone who is a renewed demand, a broader demand, a fice. For example, after a patient re- a real advocate of the free market sys- broader anger on the part of the Amer- ceives a new heart, has a heart trans- tem, I find this unacceptable, uncon- ican people so that they will speak to April 18, 1996 CONGRESSIONAL RECORD — SENATE S3515 us with more clarity than happened in The so-called Kassebaum-Kennedy am certain, although one never knows, the last go-around and we can respond. bill, the Health Insurance Reform Act, that he would sign it. But in the meantime, Senator KASSE- would establish some of the most fun- Loading up this bill with extraneous BAUM and Senator KENNEDY saw an op- damental and far-reaching changes in provisions which will please certain portunity to take certain very specific health insurance since the creation, in special interests but only delay enact- and important parts of this problem fact, of Medicare and Medicaid in 1965. ment of health reform just does not and solve them, and they did so in a I, therefore, again salute the two Sen- make any sense at all. So, Mr. Presi- way which was so successful and so ators, the chairman and the ranking dent, I intend to join the floor man- agreeable that the vote was unanimous member, for their really inspiring bi- agers of this bill and Minority Leader from that committee. The Labor and partisan partnership in crafting and DASCHLE in opposing any controversial Human Resources Committee has a advancing this very important legisla- amendment that will delay enactment reputation for having a good deal of bi- tion. I think we all remember, as I in- of this bill—any controversial amend- partisanship. But it is also a commit- dicated—it seems like a long time ago, ment, even if it means voting against tee where there are sharp differences of but it really was not—that there was a amendments that, as I have indicated views and, therefore, the unanimity of mighty debate in this body about guar- and so have others, have merit on their the vote I think is a very, very good anteeing health insurance for every own and I would fight to enact in other sign for the Health Insurance Reform man, woman, and child in this country. terms and other circumstances. We Act of 1995. I believe that must still be the goal and cannot be distracted from the basic I think that we have to be fully the vision for America. I believe that purposes of this bill, which are terribly aware that people in this country des- as strongly as I did at the time. I be- important. perately want and thoroughly deserve lieve in that even more strongly as I Almost 40 million Americans lack the security that health insurance will watch what is happening to more and basic health coverage today. It is going not disappear the way it does now. The more people as they lose their health up about a million plus every year, Mr. Senator from Tennessee was talking insurance even though they are work- President. It has been doing that regu- about how he could see that fear in ing. larly, and it will continue to do that, people’s faces. I am not a physician, Mr. President, that comprehensive perhaps at an accelerating rate. One but I hear that constantly in my State effort at that time to reform our coun- cannot be sure. Most of the people who of West Virginia. When it disappears, it try’s health care system was stopped. are not lucky enough to have health disappears cruelly. It disappears with- But, again, the problems of losing insurance, with cards in their wallets out warning. It disappears often be- health insurance continue. That is why or back pockets, are in fact the people cause people are simply just laid off be- in a sense we have won, through the we revere and honor in this body, and cause of downsizing or because of other good work of Senator KASSEBAUM and that is they are the hard-working, mid- economic factors. It always affects, it Senator KENNEDY, we have won an- dle-class families who are victims of seems, millions of hard-working men other chance to enact something which layoffs and downsizing or just plain and women, people who are playing by is really meaningful in the way of profit gouging. the rules every day. I think today is health care reform. The people of our This country offers the best health our chance to really do something. I States are still writing, calling, visit- care in the world. Nobody has ever de- think we can do our job for the West ing, and asking for help. I am going to nied that. It is terribly true. Unfortu- Virginians, for the South Dakotans, do whatever I can to make sure that we nately, that health care continues to the Kansans, and other Americans ev- do not let this opportunity pass us by— be beyond the reach of too many of our erywhere who are out there doing their that we will not fail on this and that fellow citizens who do not deserve that job but still fear the loss of health in- lot in a country that is as outstanding surance. we will make a real difference in peo- Health insurance is a little bit like ple’s day-to-day lives. and great as ours. As both Senator KASSEBAUM and Sen- air. Sometimes you take it for granted. That is why we simply have to also ator KENNEDY said, this bill before us All of a sudden it is not there. You exercise restraint and not kill this bill today will not solve all of the problems panic very quickly, and I think a lot with extra baggage. It is tempting, but in the health care marketplace. I think more Americans are doing that. Some it cannot happen. Amendments, wheth- people, in fact, are estimating—a lot of er they are well-intentioned or not, it was Senator KASSEBAUM who said people are—that by the year 2000, which are controversial will have the that the so-called guarantee issue, or which is really only 3-plus years off, effect of bringing this bill down, and we guaranteed coverage, for that matter, that 50 percent of Americans who work all know that. We have to be very care- for every man, woman and child in this for a living—not 50 percent of Ameri- ful as we go through this exercise that country has not diminished. The bill is cans but 50 percent of Americans who we do not accept controversial amend- not going to solve it. work for a living—will not have health ments. I still believe it is a fundamental insurance. I think this bill is going to solve right for each and every one of us, not So, this problem just continues to some really horrible problems for real just for those who can afford it or are get worse and worse. Yet, the Labor people. So why would we accept con- healthy enough to keep insurance com- and Human Resources Committee has troversial amendments which we might panies profitable. But again, the ma- made a substantial improvement if we otherwise support, as the Senator from chinery of our health care system is are able to pass this bill and if we can Massachusetts said, when it could pull breaking down, and this bill helps sub- do it without controversial amend- down the chance to do something real- stantially. If we cannot therefore enact ments. I will have more to say about ly good for a lot of people? a complete overhaul, if we are not that as the day goes along. During debate on comprehensive going to be able to do that in this ses- I have, frankly, waited for this day health care reform several years ago, sion, we must enact the individual for a long, long time, and I am filled many of my colleagues—especially fixes and the individual reforms that with a sense of gratitude and a sense of those on the other side of the aisle— will at least keep the engine of this relief that we are finally, as a body, said repeatedly that we should only system running. going to do something which is mean- enact those health reforms on which Evidence of this need for an overhaul ingful. If everything really goes well, there is a strong bipartisan consensus of our health care system is every- we may do this by the end of the night and support. Well, here we have it. where. It is found in the emergency or tomorrow night. But the point is we Here we have that piece of legislation. rooms of our public hospitals, collaps- really have a chance to do this. That is the precise description of this ing under the demand of the growing I do not know of a great deal of criti- bill, S. 1028, which is before us today. It millions who need medical treatment cism about this bill on the part of my was so carefully crafted by the chair- but cannot pay for it. It is found in our colleagues. Relatively few people on man and the ranking member; it came schools where far too many children go the outside are criticizing it, and, out of the committee by unanimous without immunization and preventive therefore, I have a good feeling about vote; it is a bill which should be sent to care. It is found in the rooms of our it. the President for his signature, and I nursing homes with so many residents S3516 CONGRESSIONAL RECORD — SENATE April 18, 1996 being uprooted from their homes and own health insurance coverage for 3 management jobs. Together they neighborhoods because of their inabil- years because of the COBRA provisions earned a little over $80,000. But their ity to afford community-based alter- that affected his health insurance, and employer’s health plan would not issue natives. They are forced onto Medicaid. thus she was able to pay monthly pre- coverage for Anthony or for Thomas. They are institutionalized because miums of $354 and continue full health Their need for special clotting factors their savings have been exhausted, and insurance coverage under COBRA for 3 and other treatments means medical on and on. years. But that only lasted from 1991 to costs of several thousands of dollars Mr. President, individuals and fami- 1994, those 3 years. each week. lies go uninsured for several reasons. Mrs. Schoppert was offered an indi- So it was not long before the McPeak Often health insurance coverage is sim- vidual policy when her COBRA exten- family had used up all of their savings. ply not available, or what is available sion expired at a monthly premium, They had to sell their house and then is not affordable. The effect is the Mr. President, of $1,800. So you under- they sold their first car, and then they same. Health insurance often lapses stand the effect, $354 in the COBRA ex- sold their second car, but still the costs after a worker is laid off and COBRA tension, $1,800 without it. In effect, ob- climbed and there was no help in sight. extensions that affect certain larger in- viously, she could not pay that. She When they tried to apply for Medic- dustries have expired. could not afford to pay this amount, so aid—which you can imagine they did Entrepreneurs who leave their jobs to she has now no medical coverage at all. not want to have to do—because Medic- start their own businesses, which is And unless the system is reformed, she aid would have helped pay for their what we glory in America—IBM used will have to go without insurance until sons’ treatments, they were told that to have it all and then people started she qualifies for Medicare, which is their family income was too high for going out and creating all kinds of still 3 years away. the boys to be eligible for SSI, which other things. That is what we do in Now, Mr. President, that means, as would automatically make them eligi- America. We are a country of entre- the Senator from Tennessee indicated, ble for Medicaid. preneurs. Entrepreneurs who have to 3 more years of anxiety, 3 more years So, what choice did Walter and Karen leave their jobs or want to leave their of fear, worrying about the risk of los- McPeak have to make? In order to jobs to start their own companies being everything that she and her hus- qualify the boys for SSI, which was cause they think they have a better band worked all of their lives to build. their moral and parental responsibil- idea are sometimes unable to convert And we say that sentence so easily; it ity, they gave up their management their group health insurance policies to just rolls off our tongue. But these are jobs, both of them, over $80,000 a year, an individual health plan, and, even gigantic tragedies in the lives of real and took minimum wage, unskilled more tragic, insurance coverage is people. jobs so their income would not exceed often terminated by an insurer just Second example. Juanita Taylor of allowable limits for them to qualify for when that insurance policy is needed Elkins, WV. Just a few years ago, she SSI and hence Medicaid. the most, when an individual or a fam- was a hard-working employee at Davis This is a tragedy and this is a trav- ily member experiences a really seri- & Elkins, which is the local private esty. It should never happen in Amer- ous, devastating illness or disability. college, but then she developed mul- ica. Anthony and Thomas got health How reliable is a guarantee, so to tiple sclerosis. She kept right on work- insurance; yes, they did. But the speak, of health coverage when the ing, struggling to overcome the ad- McPeaks lost their savings, their health plan issuer acts in its own self- vancing weakness that her illness home, their car, their jobs, probably a interest or cuts the safety line by ei- caused her. When she was, in fact, real- good deal of self-esteem—although not ther terminating a policy or increasing ly too weak to meet the demands of her on a moral basis; and their employers, the premiums beyond the ability of the job, she lost her job and eventually the of course, lost two highly skilled man- individual to pay, thus, in effect, ac- health insurance that had provided. agers. So we must pass health insur- complishing the same end—cutting Her neighbors and her friends pitched ance reform in the form of this bill. that person off. in to help her pay for a wheelchair, so The bill we are considering is not a The Health Insurance Reform Act of that she could stay connected and in- perfect solution and nobody has made 1995 makes significant strides to ad- volved with her community, so that that claim. But it will go a long way dress each of these two problems, and her morale would be better. toward ensuring that working Ameri- that is why it is such a good bill and Those friends and neighbors told me cans and their families are able to keep needs to be passed. The Health Insur- that she was forced to pay out-of-pock- the health insurance that they have, if ance Reform Act will strengthen the et costs of $1,000 per treatment to help they lose or if they change jobs. This safety net for millions of Americans by slow the advance of her multiple scle- legislation will mean that families like improving portability and security of rosis. How many people can pay $1,000 the McPeak’s, who have children with private health insurance, especially in per treatment? Although she now has special needs, will have the protection the small group and the individual in- Medicare, her medical expenses ate up and have the security of insurance cov- surance markets. I support this bill be- all of her savings. Juanita Taylor cou- erage. And it will mean that talented cause I personally have heard the sto- rageously faced and fought a ravaging and hard-working individuals with new ries of hundreds of West Virginians disease, only to be victimized by a sys- and creative ideas, entrepreneurs, will who have fallen between the cracks of tem that cared more about how much be free to go out and start their own our health care system. money she had in her pocket than it businesses, because of this reform bill, Mr. President, I wish to just give did, quite honestly, about her health without the fear of losing their health three personal examples that I know of condition. insurance. and then end with a statement from But the final story, and the saddest Again, I thank and congratulate Sen- the White House. one of all, it seems to me, comes from ators KASSEBAUM and KENNEDY for Mr. President, I want to start—and Falling Waters, WV, which is in Berke- their enormous leadership that gives us these are all people who would be ley County. In 1990, Walter McPeak and this historic—and it is historic—chance helped by this bill, and the examples his wife, Karen, were granted custody to do something that Americans de- are so many—with one Norma of Mr. McPeak’s two sons, Anthony and serve and want so badly. I conclude Schoppert, who lives in Piedmont, Thomas. They wanted these boys. Both with a statement of administration WV—not large, near the top of our the boys have severe hemophilia and policy. This is just for the edification State. Several years ago, she developed hepatitis, as well as the social and the of the membership. diabetes. Lots of people do. When her emotional difficulties that come from I read from the administration’s lat- husband was working, Mrs. Schoppert living in constant fear that even the est statement of administrative policy: was covered by the health plan offered slightest injury could result in terrible Certain provisions included in the House- by his employer. That is understand- trauma or instant death. passed bill are so controversial and so poten- able. But then he retired in 1991 and be- At the time the boys came to live tially damaging to the health care system came eligible for Medicare. When that with them, both Walter and Karen that they jeopardize enactment of the insur- happened, she was able to extend her McPeak were employed in high-paying ance reform that Americans want signed April 18, 1996 CONGRESSIONAL RECORD — SENATE S3517 into law this year. Specifically, the inclusion One of the things that is very clear is The first one is the delivery system, of amendments that, one, provide for medi- that we need insurance reform now. It and it is run by doctors and nurses and cal savings accounts, MSA’s; two, deregulate is something we can do now. And we hospital administrators and research- multiple employer welfare arrangements— should be careful not to attempt a ers and research hospitals and founda- MEWA’s; three, impose federally defined caps on punitive and noneconomic medical complete overhaul of the system just tions and all of the rest of it, and it is malpractice awards; four, undermine Medi- to get insurance reform. That was one dedicated to delivering the finest care fraud and abuse efforts; and, five, weak- of the errors, in my view, that was health care medical result for our citi- en the ban on the sale of duplicative insur- made strategically by the President of zens as possibly can be. ance policies to the Medicare beneficiaries, the then majority party in the last The second system is the payment would call into question the seriousness of Congress. system, and it is run by insurance com- the commitment of the Senate to health in- I always said, and repeat again, that panies and adjustors and, to a very surance reform this year. the President deserves credit for hav- large extent, the Federal Government. The administration views such provisions as an effort to undermine a bipartisan con- ing raised this issue. It is such a thorny Forty percent of the health care bills sensus on health reform. If such amendments issue that the instinct of most politi- in this country are paid by the Federal are adopted, they would create a grave risk cians is to flee from it. I learned in the Government. to the passage and enactment of this biparti- days when I was working with the Con- The payment system, to a certain ex- san legislation. gress, before I came here, that all you tent and certainly to a larger extent Mr. President, I yield the floor. needed to do in order to defeat a bill than is proper, in my view, distorts the Mr. KENNEDY addressed the Chair. was, not convince Congress that it was delivery system. Delivery system deci- The PRESIDING OFFICER. The Sen- a bad bill, all you had to do was con- sions are made on the basis of payment ator from Massachusetts is recognized. vince them that it was a controversial system decisions, and that is where we Mr. KENNEDY. Mr. President, I bill and they would flee from the con- get into all of the difficulty, in my thank my friend and colleague from troversy. So I salute the President and view. West Virginia for an excellent presen- have always done so, since coming to If we could devise a way that the de- tation on the current legislation and the Senate, for his courage in raising livery system goes forward with the also for his really extraordinary leader- the issue. focus primarily on producing the best ship on the whole health care issue. As But in the last Congress, I seriously medical result for the patient, undis- he mentioned, he was right in the van- departed from the President because of torted by the payment system, we guard of leaders when we debated the his insistence that the entire system would have the ultimate circumstance. more comprehensive program over a had to be fixed at once with a single If I may give us an example—I realize year ago. I think he is tireless, as a bill and a single Congress. I thought it is not perfect, but it is one we ought member of the Finance Committee, in that was the height of arrogance and, to look at—I have been in Shriners hos- pursuing good health care policy. So I ultimately, it proved to be impossible. pitals. The Shriners raise every dollar thank him for his comments. I am very I remind people that the Clinton that they spend for health care, which hopeful he will be involved during the health care plan was not voted down in means that they do not interface with course of debate on this measure, be- the 103d Congress. It simply died, col- a single insurance company or a single cause he brings great interest and lapsed of its own weight, and a vote Government bureaucrat. They simply knowledge to his comments. was never taken on it because it could raise the money to pay the bill for the Mrs. KASSEBAUM addressed the never be put together in such fashion kids, and they make the decision as to Chair. that it was ready for a vote. what will be done in a Shriners hos- The PRESIDING OFFICER. The Sen- So I commend the Senator from Kan- pital solely and entirely on the ques- ator from Kansas. sas and the Senator from Massachu- tion of medical need. Mrs. KASSEBAUM. Mr. President, I setts in their willingness to say, ‘‘Let’s Here is the result of not having to second those observations. Senator step aside from the attempt to do ev- deal with insurance companies or the ROCKEFELLER has cared for a long time, erything in a single bill. Let’s pick out Government at the Shriners Hospital as well, about a wide breadth of health the most pressing problems and see if in Salt Lake City: The cost per day, issues, particularly as regards to chil- we can address those.’’ per-bed night, or whatever the appro- dren. I ask unanimous consent that the Those of us who tried to put forth priate medical term is, in the Shriners Senator from New Mexico [Mr. DOMEN- this strategy in the last Congress were Hospital in Salt Lake City is $95. What ICI] be added as the 66th cosponsor of attacked as incrementalists, and we could we do in medical costs if the per- the bill before us. were denounced as being insufficiently night cost in a hospital were $95 for The PRESIDING OFFICER. Without compassionate and concerned. I do not every 24-hour period? objection, it is so ordered. know anybody in this body who is more The administrative costs of running Mrs. KASSEBAUM. The next speaker compassionate and more concerned the Shriners hospital system are 4 per- is the leader of the Republican health than the Senator from Kansas. I stand cent, which means that 96 percent of care task force. Senator BENNETT has now to say that the incremental ap- every dollar they raise to take care of been a very, very strong and construc- proach that we proposed in the 103d the medical needs of these kids goes to tive Member of the Senate, working Congress is now bearing fruit in the the kids and only 4 percent goes to ad- with health care issues. I have cer- 104th, primarily due to her leadership ministration. tainly valued his advice and support in and her compassion and her concern. That is what happens when you do this endeavor. So I am delighted to be a cosponsor of not have to deal with an insurance The PRESIDING OFFICER. The Sen- the bill and to participate in this de- company or with the Government bu- ator from Utah. bate. reaucrat. That is the goal for which we Mr. BENNETT. Mr. President, I I do have to make a few general ob- should aspire somewhere out there to thank the Senator from Kansas for her servations, however, before I get into clean up the enormous costs and com- kind and generous words. It has been talking about this bill, so that people plexity of the system in which we are an interesting odyssey for me to get in- who have heard me on health care in engaged. volved in the health care issue. It came the past will know that I have not I think the answer to that lies in re- up in the 1992 campaign, when I ran for abandoned those observations. structuring our tax laws in the way we the Senate in the first instance. I must I believe that we have the system deal with health insurance. That is a confess, the first time the question that we have in the country today pri- speech I have given before; it is not a came up I was pretty much stumped for marily because of the tax laws in this speech I will give today, but I lay that any kind of an answer as to what we country. We have a system that is dis- down because I do not want anyone ought to do on health care. I do not torted, for a whole series of reasons. who is listening to me to think that for like being stumped for an answer, so I Not to go through the whole litany but one moment I have abandoned that as have plunged into this issue ever since to, again, lay down certain principles my ultimate goal: To get to the cir- I have been in the Senate, and the so that I am not accused of abandoning cumstance where we clear up the enor- more I get into it, the more certain them, we have not one health care sys- mous complexities that now beset the things become clear. tem in this country but two. whole health care issue. S3518 CONGRESSIONAL RECORD — SENATE April 18, 1996 That having been said then, Mr. I raise that only because I think it is until you can restructure everything,’’ President, let me address S. 1028 and unfair to use the huge statistical num- I say, we have not got that luxury. We my support for it. As I said at the out- ber of 37 or 40 million or whatever it have to deal with the problem of job set, I believe in the incremental ap- may be, to try to highlight the problem lock, the problem of portability of proach. I believe that when you are that is really severe and significant for health insurance as quickly as we can, dealing with a trillion dollars’ worth of roughly a third or even a quarter of even as we have these other discussions economic activity, trying to fix it all that number. But the people who are in for the solution a long way down the at once with a single piece of legisla- that quarter, the 10 million, whatever, road. tion is a major mistake, and I think we have real problems, and this bill ad- Again, Mr. President, I congratulate learned that lesson in the 103d Con- dresses those problems. the Senator from Kansas for her lead- gress. We should understand that this ter- ership and her tenacity. I say, as I have The most pressing issue for most ror of losing health insurance that has said before, that the loss of her mem- Americans is the question of job lock, caused job lock can become more than bership in this body will be keenly felt. the question of insurance through the just a personal problem for the individ- She brings an aura of civility and intel- employer keeping people tied to a par- ual involved. It can have consequences ligence, combined with a tenacity and ticular employer or to a particular job. throughout the entire economy. a sense of steel in her back that some- During the campaign, whenever this The Senator from West Virginia times her pleasant exterior will cause came up, I had a little exercise I would spoke about the entrepreneurs who people to misjudge. We have been hon- go through, and it never failed to leave a secure business to go start an- ored with her service in the Senate. I produce exactly the same result. As other one. I have been one of those en- think this will be a monument to her people would turn to me and say, trepreneurs and had the experience of service in the Senate. I am delighted to be one of those who raises a voice in ‘‘What is the biggest problem with walking out of a secure company where support of that concept. Mr. President, health insurance,’’ I would answer with I had health insurance, being told, ‘‘OK, you have COBRA coverage for 18 I yield the floor. a question. I would say, ‘‘How many of Mrs. KASSEBAUM addressed the months, and in that 18-month period, you here know of someone—either Chair. yourself, a member of your family, or good luck in lining up some other kind The PRESIDING OFFICER (Mr. friend—who is locked in a job he or she of health insurance.’’ FRIST). The Senator from Kansas. hates because he or she is afraid to lose I was able to line up another kind of Mrs. KASSEBAUM. Mr. President, I health insurance?’’ health insurance for me, but discovered would like to express appreciation to I would just sit back and watch the a very difficult problem. My secretary, the Senator from Utah, who gave such hands go up, and they would always go who left with me when I left the com- a very thoughtful opening statement, I up in sufficient number around the pany to start my own activity, was think, by example, showing concretely room to make my point: That port- also covered by COBRA, and in that why the provisions of this bill are im- ability of health insurance is, for most COBRA period while we were putting portant. I know that the majority lead- Americans concerned with this issue, together a health insurance plan for er, the senior Senator from Kansas, has the No. 1 challenge, and portability of our little tiny company—just the two also over the years been cognizant of health insurance is at the core of S. of us; we were the only two employ- the very things that Senator BENNETT, 1028. ees—she came into my office one day as the leader of the Republican health If we can make it possible for people and said she had to see a doctor, she care task force, spoke so eloquently to ultimately control their own destiny was not feeling well. She came back and sincerely about. I am very appre- and not be under the control of their from the appointment and said, ‘‘I have ciative. employer, then we have solved the a brain tumor. It is operable. It can be Mr. DOLE. Mr. President, I under- problem for many, many Americans. handled, but the problem of dealing stand there are a number of my col- I am not one who subscribes to the with it is going to take a timeframe leagues who wish to make opening statistics about the tremendous num- longer than the 18 months of COBRA. statements. I just want to indicate ber of uninsured. I point out that for What are we going to do?’’ that I am prepared to offer the so- most of the uninsured, they are just I will not bore the Senate with the called tax amendment. We are trying passing through that category. I give details. We were able to solve the prob- to get some agreement that is accept- this example. lem. We were able, through the State able on both sides as far as a motion to In my own family, I have a son who, of Utah and some of the things that it strike one provision of that. So I ask when he turned 24, went off the family does on health insurance, to find an in- unanimous consent that, following policy. The insurance company says he surance pool that would accept her. opening statements, I be recognized to should be through with school at age But I saw firsthand how difficult that offer the amendment. 24. I said, ‘‘I agree with you he should can be. People who are normal and The PRESIDING OFFICER. Is there be through with school at age 24, but healthy and have no problems at all in objection? Without objection, it is so he’s not, so what do we do?’’ the 18-month period of COBRA are sud- ordered. Well, I called him up and said, ‘‘Jim, denly faced with this kind of cir- Mr. CHAFEE addressed the Chair. The PRESIDING OFFICER. The Sen- go down to the student health center cumstance. ator from Rhode Island. and sign up for the student health pol- So that is why I have joined in co- Mr. CHAFEE. First of all, I would icy at the University of Southern Cali- sponsoring S. 1028. It is focused on a like to thank the distinguished Sen- fornia.’’ single problem. It is not an attempt to ator from Vermont for permitting me He said, ‘‘Sure, dad, I’ll take care of solve all of the issues simultaneously to go ahead of him. I know he has been that.’’ and thereby get gummed up in all of waiting. I assured him my statement Those of you who have children know the challenges that face our health in- would be brief, so I am going to be held that it took about 6 months for him to surance and health care problems. It to that. finally get around to taking care of deals with the most pressing problem Mr. President, I would like to take that. During that 6-month period, he for most Americans who fall in this this opportunity to reaffirm my sup- was one of those statistics of the unin- category. It does so in such a way that port for the Kassebaum-Kennedy sured. He had gone off my policy be- it does not close the door to the kinds health reform legislation. The sponsors cause he was too old to be a dependent of solutions I want to see down the of this legislation have worked for a and he had not gotten around to sign- road. It does not close the door to the number of years to enact reforms in ing up with the other, and so he ended kind of tax reform that I think will ul- the private insurance market. I ap- up in that statistical pool of the unin- timately bring us the ultimate health plaud them for their considerable ef- sured. care solution. forts in bringing this legislation to the Frankly, it is not my son, Jim, we So, for those who say, ‘‘Well, Senator floor. are worried about here. It is the people BENNETT, you have been a voice for the It is interesting to note this legisla- who, in that statistical pool, have a entrepreneurial approach, the market tion is quite similar to that which real problem. approach, and don’t endorse anything Senator Durenberger first presented in April 18, 1996 CONGRESSIONAL RECORD — SENATE S3519 the Finance Committee, as I recall, or PRIVILEGE OF THE FLOOR place. Last August, the Labor and perhaps in the Labor Committee sev- Mr. JEFFORDS. Mr. President, first, Human Resources Committee lined up eral years ago. Although he has left the I ask unanimous consent that Theresa that Rubic’s cube and it all seemed Senate, I think he would be pleased to Stathas, a fellow in my office, be right with the world. know we are making progress with the granted the privilege of the floor for As I mentioned, in a unanimous 16 to legislation he was so involved with. the duration of the consideration of S. 0 vote, the committee voted favorably In the wake of attempts in recent 1028. on S. 1028, the Health Insurance Re- years to completely overhaul our The PRESIDING OFFICER. Without form Act of 1995. I must commend the health care system, this legislation has objection, it is so ordered. chairman and the ranking member for been characterized, as the distin- Mr. JEFFORDS. Mr. President, I rise that incredible feat. It is not an easy guished Senator from Utah noted, as today in support of the Kassebaum- task putting together a health care re- incremental. It has been criticized as Kennedy bill. Before I do that, I want form bill that every member of the even meager. But I urge my colleagues, to express my deep appreciation for the committee can vote for, but it hap- as the Senator from Utah noted, not to efforts that were put in, in 1994, by pened. The Health Insurance Reform underestimate the importance of this Senator CHAFEE, in trying to reach a Act makes great strides in addressing legislation. consensus on what we can do to move many of the problems in the insured market and also begins to level the One of the major failings of our health care forward. We worked long playing field in the self-funded ERISA health care system in this country is and hard, many of us, and the issues which we are involved with today in S. market by apply the same national the difficulty thousands of Americans rules to both segments of the market- face each year when they change jobs 1028 were some of those which gave us the greatest concern. place. or look for new jobs. But they find they Chairman KASSEBAUM’s approach cannot change jobs because they will I also want to thank Senator BEN- NETT for his work with the Republican from the beginning was to build a bill no longer be eligible for health insur- around two areas of consensus—portance. This is what is known in the task force on health care. His work has been invaluable to us as we move for- ability and elimination of discrimina- trade as ‘‘job lock.’’ This problem for tory treatment of preexisting condition many Americans would be addressed ward to try and find, again, the kind of consensus that is necessary to get us rules. The Kassebaum-Kennedy bill under the Kassebaum-Kennedy bill. In- provides Americans the security of surers would be required to offer cov- good health care reform. What a re- freshing experience it is to have Sen- knowing that their health insurance erage, with no preexisting condition will be portable from job to job and exclusions, for those moving from one ator Frist with us, who has given us the invaluable knowledge of a practic- that all people who have insurance group plan to another or from a group today will be able to purchase afford- plan to an individual plan. ing physician, who kept us from going too far astray in our efforts. It is won- able insurance tomorrow even if they I expect, Mr. President, we will see derful that we have this kind of a coali- get sick. That is a critical phrase— many amendments to this proposal, even if they get sick, or change or lose tion. Senator ROCKEFELLER, who I have many of which I have supported in the worked with, also, is so helpful in the their jobs. past. Though laudable, these additional This is accomplished by converting health care reform area. provisions could jeopardize the more the rules in today’s insurance market I am beginning to feel confident that immediate and important goal of en- which reward excluding people into we will do something constructive here acting insurance market reforms. rules where health plans can take all in health care reform, and hopefully it Those of us who worked to enact comers. There is a tendency to want to will happen in the next few days. Of health care reform 2 years ago know all exclude sick people, naturally. You course, my chairman and my ranking too well the consequences of attempt- make more money if that happens. member, Senator KENNEDY, who both ing to do too much with respect to This will step in and say, ‘‘Hey, no.’’ S. have shown outstanding leadership in health care reform. We failed to enact 1028 provides much-needed improve- getting our committee to come out 16 comprehensive health care reform in ments at the national level, but at the to 0 on a bill, this is a miracle in itself. 1994. You try to do too much and you same time allows States the flexibility I am deeply appreciative of all their ef- end up getting nothing. We have been they need to move ahead in their own forts. through that experience, Mr. Presi- reform efforts. I rise in support of the Kassebaum- As we attempt to make coverage dent, not only with the health care Kennedy Health Insurance Reform Act. measure that we tried in 1994, but in more widely available, we must also If we send this legislation to the Presi- not lose sight of affordability, particu- other efforts in the past. dent, the 104th Congress will be remem- In the last 2 years, over a million larly in a market where employers and bered in history for taking the first individuals are not mandated to pur- Americans lost their health insurance steps toward real market-based health coverage. Although this proposal, the chase insurance. We must be very care- care reform. Market reform is not as ful as we reform the insurance market, Kassebaum-Kennedy proposal, does not easy as it may sound, for the simple include many of the health reforms because if we are not, reforms that we reason you must take into consider- hope will reduce costs and improve ac- which I advocated 2 years ago, I strong- ation the State’s responsibility for reg- ly support its enactment as a sound cess may do just the opposite. ulating insurance versus the Federal How is this possible? Today, over 92 first step toward reform and improve- responsibility for regulating ERISA, percent of the people who have private ment in our Nation’s health care sys- employee benefit plans. health coverage are part of a group—92 tem. That word, ERISA, is one that trou- percent are part of a group. Most of So I congratulate the two principal bles many. The reason it troubles peo- these people get it through their em- cosponsors of this legislation and am ple is because there is not much there. ployer under an ERISA health benefit delighted to be listed as a cosponsor We have the authority and the respon- plan. The key concern regarding myself. I thank the Chair. sibility to provide good health care ERISA is the risk segmentation that Mrs. KASSEBAUM. I thank the Sen- conditions for the self-funded plans, occurs in the private market due to the ator from Rhode Island. He, too, has but we have exempted the self-funded preemption clause. ERISA preemption been a long-time worker in the vine- plans from State regulations. That is effectively blocks States from regulat- yards of health care, a staunch leader why we are here today and why this is ing most employer-based health plans. in the last Congress to find some an- an important move forward. ERISA preempts States from being in swers and to bring people together to Finding the right balance between in- this area. present health care reform. I value his surance regulation and employee bene- Although many employers still pur- support in helping us work through the fits, while trying to incrementally re- chase health coverage from a State- language in this bill. form the market, is something like regulated health insurer that is subject Mr. JEFFORDS addressed the Chair. mastering the Rubic’s cube. Just when to State insurance regulation, em- The PRESIDING OFFICER. The Sen- you think you have all the sides lined ployer plans that cover 44 million peo- ator from Vermont. up, you find out one square is out of ple have elected to self-fund and avoid S3520 CONGRESSIONAL RECORD — SENATE April 18, 1996 the State insurance laws. These laws state regulation of health plans, including mandated benefits accounted for about 12 deal with financial solvency, market mandated benefit laws. In particular, you percent of claims costs; earlier studies esti- conduct, benefit coverage, and pre- asked us to provide information on— mated that mandated benefits in Maryland mium taxes. States impose taxes on in- 1. state requirements affecting fully in- cost 22 percent of claims and in Iowa cost 5 sured health plans and how they compare percent of claims. In general, cost estimates surers for general revenues, as well as with federal requirements affecting self- are higher in states with more mandated for financing specific programs like funded health plans, benefits and in states that mandate more State guaranty funds and high-risk 2. the number of states that have enacted costly benefits, such as mental health serv- pools. particular mandated benefit laws, ices and substance abuse treatment. We also Preemption made a lot of sense 20 3. estimates of the costs of mandated bene- found that self-funded health plans often years ago when the multistate employ- fits in particular states, and offer similar benefits, even though they are ers and unions were looking for a way 4. the extent to which commonly mandated exempt from state-mandated benefit laws. benefits are provided by self-funded health to offer uniform benefits to employees For example, a survey by KPMG Peat plans that are exempt from state laws. Marwick found that a large percentage of throughout the country. Most of the This letter provides interim information self-funded health plans offer benefits simi- plans were offered through insurers. based on our ongoing work for you on the lar to those mandated for health insurers in Most of the plans were offered through factors affecting the costs of state health in- many states. insurers. As States started to weigh surance regulation. As part of this effort, we REGULATORY FRAMEWORK DEPENDS ON WHETH- down the insured market with man- interviewed officials from the National Asso- ciation of Insurance Commissioners (NAIC); ER A HEALTH PLAN IS FULLY INSURED OR dated benefits, employers saw self- SELF-FUNDED funding as a means of flexibility and several state insurance commissions; and national organizations representing actuaries, While states are able to regulate health in- plan design. health insurers, and self-funded employers. These are two reasons why employers surance, state regulation does not directly We reviewed documents and used data pro- affect everyone with private health cov- have left the insured marketplace. In a vided by these groups as well as available erage. ERISA preempts states from directly preliminary report I just received from studies on mandated benefits. In addition, we regulating employer provision of health GAO, the estimated additional costs of included and updated information from pre- plans. This results in a very different regu- these mandated benefits range from a vious GAO reports on state insurance regula- latory framework depending on whether an high in Maryland of 22 percent addition and the Employee Retirement Income employer purchases its health care coverage tional cost and low in Iowa of 5 per- Security Act of 1974 (ERISA). Our review was from an insurer that the state regulates or cent. conducted between January and March 1996 self-funds its health plan is not directly af- in accordance with generally accepted gov- 1 Mr. President, I ask unanimous con- fected by state regulation. ernment auditing standards. We expect to States focus their regulation on the finan- sent that excerpts of the GAO prelimi- issue a report to you later this year that will nary estimate be printed in the cial soundness of insurers and their market provide a more detailed analysis of the fac- conduct, including benefit coverage. In addi- RECORD. tors affecting the costs of state health insur- tion, states impose taxes on insurers for gen- There being no objection, the mate- ance regulation. eral revenues as well as for financing specific rial was ordered to be printed in the RESULTS IN BRIEF programs. While federal requirements in- Record, as follows: We found that states have an average of 18 clude fiduciary and other responsibilities, in GENERAL ACCOUNTING OFFICE, mandated benefits that health insurers must many other areas no federal requirements Washington, DC, April 15, 1996. cover but the number of mandated benefits exist for self-funded health plans that are Hon. JAMES M. JEFFORDS, varies from a low of 6 in Idaho to a high of comparable to state requirements for health U.S. Senate. 39 in Maryland. However, assessing the costs insurers. In particular, self-funded health Washington, DC. of mandated benefits is difficult because plans are exempt from state laws that man- DEAR SENATOR JEFFORDS: The Congress is their impact varies depending on state laws date insurers to include coverage for specific considering proposals intended to enhance and employer practices. Published studies benefits. Table 1 companies the requirements the availability of health insurance. This de- provide a range of cost estimates. For exam- that fully insured and self-funded health bate has led to specific questions about the ple, a recent study found that Virginia’s plans must meet. TABLE 1.—COMPARISON OF RELEVANT STATE AND FEDERAL PROVISIONS AFFECTING FULLY INSURED AND SELF-FUNDED HEALTH PLANS

State insurance regulations affecting fully insured health plans ERISA provisions affecting self-funded health plans 1

Financial requirements: Licensing ...... States license insurance companies and the agents who sell insurance to ensure that com- No comparable requirements. panies are financially sound and reputable and that agents are qualified. Financial solvency ...... States set standards for and monitor financial operations of insurers to determine whether No solvency requirements but fiduciary duty to act in a prudent manner solely in the inter- they have adequate reserves to pay policyholders’ claims. States restrict how insurers in- ests of plan participants and beneficiaries. vest their funds. Rate reviews ...... States review and approve rates to ensure that they are both reasonable for consumers and No comparable requirements. sufficient to maintain the solvency of insurance companies. Some states regulate insurer rating practices in the small group market to determine the No comparable requirements. factors insurers may use in setting premiums 2. Market conduct requirements: Plan benefit coverage and description ...... States review and approve insurance policies to make sure that they are not vague or mis- Disclosure requirements to provide summary plan description to participants and the De- leading and to ensure that they meet state requirements, such as mandatory benefit pro- partment of Labor. No requirements to provide specific benefits. visions. Consumer protections and complaints ...... States monitor insurers’ actions to make sure that they are not engaging in unfair business Plan must reconsider denied claims at participant’s request. States have no authority to practices or otherwise taking advantage of consumers by investigating their complaints, pursue consumer complaints regarding self-funded plans. Department of Labor has re- answering questions, and conducting educational programs. sponsibility for complaints regarding self-funded health plans. Small group reforms ...... Most states require insurers selling to small employers to accept and renew employees who States are preempted from applying small group reforms to self-funded health plans. want health insurance coverage, establish short waiting periods for preexisting conditions, and require portability of coverage even when an individual changes jobs or insurers 2. Tax requirements: Premium taxes ...... States assess premium taxes on insurers ...... States are preempted from assessing premium taxes on self-funded health plans. Guaranty funds ...... States assess insurers to finance guaranty funds that provide financial protections to en- States are preempted from requiring self-funded health plans to participate in guaranty rollees who have outstanding medical claims in the case of an insurer insolvency. funds. High-risk pools ...... Some states assess insurers to finance losses in high-risk pools that provide health cov- States are preempted from requiring self-funded health plans to participate in high-risk erage for individuals who otherwise had been denied health coverage due to a medical pools. condition. 1 ERISA requirements apply to all private employer and union health plans, including fully insured and self-funded health plans. See Employer-Based Health Plans (GAO/HEHS–95–167, July 25, 1995). While states are preempted from regulating self-funded health plans directly, some states regulate third-parties that provide administrative services for self-funded health plans and stop-loss insurance carriers that reimburse self-funded health plans for claims that exceed a predetermined threshold. 2 For a listing of states that have enacted these reforms, see Health Insurance Regulation: Variation in Recent State Small employer Health Insurance Reforms (GAO/HEHS–95–161FS, June 12, 1995).

NUMBER AND TYPE OF MANDATED BENEFITS est number of mandated benefits. In con- erage for some types of providers like optom- ADOPTED BY STATES VARY trast, Idaho has only 6 mandated benefits; etrists and chiropractors. States typically Alabama, Delaware, Vermont, and Wyoming mandate that insurers cover specific benefits On average, states have enacted laws man- 2 each have 8 mandated benefits. in all plans sold, whereas some states merely dating about 18 specific benefits. As shown in States most frequently mandate coverage mandate that each insurer make this service figure 1, 15 states have over 20 mandated ben- for preventive treatments like mammograms efits while 9 states have 10 or fewer man- and well-child care or for treatment of men- available in at least one plan that it offers. dates. Maryland (39), Minnesota (34), and tal illness or alcohol and drug abuse. (See In some cases, the mandates are limited to California (33) are the states with the high- table 2.) In addition, states often require cov- particular types of plans such as health April 18, 1996 CONGRESSIONAL RECORD — SENATE S3521 maintenance organizations or group insur- mography screening, account for fewer than Assessing the cost differences between self- ance plans. 1 percent of costs. Furthermore, in some funded and fully insured health plans result- cases, mandated benefits covering services ing from mandated benefits is difficult. To TABLE 2.—COMMONLY MANDATED BENEFITS offered by some alternative types of provid- the extent that self-funded health plans offer ers, such as nurse midwives, may reduce benefits that are similar to state-mandated Number of States costs because they substitute for more costly benefits, they do not have lower claims costs Cover Offer Total forms of care. However, some provider man- due to their exemption from state-mandated dated benefits may also increase the demand benefit laws. For less commonly offered ben- Treatment-related: for services, thereby increasing costs. For efits, such as in vitro fertilization, self-fund- Mammography screening ...... 42 4 46 ed employers would face additional claims Alcoholism treatment ...... 23 16 39 example, while chiropractic services may be Mental illness ...... 15 16 31 a less expensive alternative for some treat- costs if they were required to meet the state Well-child care ...... 21 4 25 ments, mandating their coverage may also mandates. Drug abuse treatment ...... 13 10 23 Please contact me at (202) 512–7119 or Mi- Pap smear ...... 17 0 17 lead to increased use. Infertility treatment/in vitro fertiliza- One limitation of most studies on man- chael Gutowski, Assistant Director, at (202) tion ...... 12 2 14 dated benefits is that they have examined 512–7128 if you or your staff have any ques- Temporomandibular joint disorders ... 11 3 14 tions. Other major contributions to this let- Off-label drug use ...... 13 0 13 the impact of mandated benefits on claims Maternity care ...... 11 2 13 costs, which does not necessarily capture the ter are John Dicken and Carmen Rivera- Breast reconstruction following mas- actual effect on employers’ costs. In particu- Lowitt. tectomy ...... 9 2 11 Sincerely yours, Provider-related: lar, multistate employers note that varying Optometrists ...... 46 1 47 state-mandated benefits result in additional JONATHAN RATNER, Chiropractors ...... 43 3 46 administrative cost. Employers that pur- Associate Director, Psychologists ...... 42 0 42 Health Systems Issues. Podiatrists ...... 38 0 38 chase health insurance must modify their Social workers ...... 26 0 26 plans to meet these differences in state-man- FOOTNOTES Osteopaths ...... 21 0 21 dated benefits. Furthermore, employers are 1 ERISA preemption effectively blocks states from Nurse midwives ...... 15 0 15 Physical therapists ...... 14 0 14 concerned that mandated benefits limit their regulating most employer-based health plans, but it Nurse practitioners ...... 13 1 14 flexibility in designing the most cost-effec- permits states to regulate health insurers. The ma- tive health benefit plan to best meet the jority of employers purchase health coverage from a Source: NAIC, Compendium of State Laws on Insurance Topics: Mandated needs of their employees. third-party insurer that is subject to state insurance Benefits (Kansas City, Missouri: NAIC, 1995). regulation. However, for plans covering about 44 SELF-FUNDED HEALTH PLANS OFTEN COVER STUDIES VARY IN THEIR ESTIMATES OF THE million people in 1993 the employer chose to self- BENEFITS COMMONLY MANDATED BY STATES COSTS OF MANDATED BENEFITS fund and retain at least some financial risk for its The actual cost impact of mandated bene- health plan. Because these self-funded health plans Studies conducted in several states be- fits to employers also depends on whether are not deemed to be insurance, ERISA preempts tween 1987 and 1993 provide varying esti- the employer offers a comprehensive or lim- them from insurance regulation and premium tax- mates of the costs associated with mandated ation. For a fuller discussion of the regulatory dif- ited health plan, which in turn is often relat- benefits. (See table 3.) Among the most references, see Employer Based Health Plans (GAO/ ed to the size of the employer. Many of the cent, the Virginia State Corporation Com- HEHS-95–167, July 25, 1995). commonly mandated benefits are often of- 2 mission has required insurers to report cost The calculation of the number of mandated bene- fered by employers, even those who self-fund fits includes requirements that insurers provide or and utilization information annually for and are not subject to the state mandates. In continue coverage for specific populations, such as each of the mandated benefits in the state. general, large employers are more likely to dependent students, as a mandated benefit. Thus, Overall, the commission reports that Vir- self-fund their health plans and also tend to the number of mandated benefits per state includes ginia’s mandated benefits accounted for these requirements as well as treatment-related and offer more comprehensive benefits than about 12 percent of group health insurance provider-related mandated benefits. See Blue Cross small employers. For small employers, who claims in 1993. An earlier study in Maryland, and Blue Shield Association, State Legislative typically purchase fully insured health plans the state with the most mandated benefits, Health Care and Insurance Issuers: 1995 Survey of and are less likely to offer health coverage Plans (Washington, D.C.: Blue Cross and Blue Shield estimated that mandated benefits represent at all, mandates may impose claims costs for Association, 1995) for a list of mandated benefits for 22 percent of average claims costs in 1988. At benefits that they otherwise might not have each state. the other extreme, a 1987 study in Iowa esti- 3 covered. The data in figure 2 represent the percentage of mated that the potential costs of introduc- covered workers in conventional health plans. Studies have shown that self-funded health ing several commonly mandated benefits KPMG Peat Marwick reports similar findings for plans typically offer many of the benefits would be about 5 percent of claims costs. workers in preferred provider organizations and that are commonly mandated by states for point-of-service plans that are either self-funded or fully insured health plans. For example, as fully insured. KPMG Peat Marwick is currently ex- TABLE 3.—STUDIES OF THE COSTS OF MANDATED shown in figure 2, a KPMG Peat Marwick amining to what extent these differences in the BENEFITS IN SELECTED STATES survey of employer benefits among all firm rates of benefits coverage among self-funded and sizes indicates that self-funded health plans fully insured health plans can be explained by dif- Percent of ferences in firm size and premium levels. State Year total claims are more likely to offer well-child care out- Mr. JEFFORDS. Because the em- costs patient alcohol treatment, outpatient drug treatment, mental health benefits, and ployer frequently pays a significant Maryland ...... 1988 22.0 portion of the premium, a large major- Massachusetts ...... 1990 18.0 chiropractic care than fully insured health Virginia ...... 1993 12.2 plans. This survey also reports similar pat- ity of the eligible employee—both Oregon ...... 1989 8.1 terns for other benefits that are not typi- young and old, sick and healthy— Wisconsin1 ...... 1989 7.9 Iowa2 ...... 1987 5.4 cally mandated, including prescription choose to enroll in an employer-spon- drugs, adult physicals, and dental benefits.3 sored plan. Since so many people par- 1 Includes six mandated benefits: alcohol and other drug abuse treatment, Similarly, a survey of Wisconsin insurers chiropractic care, diabetes care, home health care, skilled nursing facility ticipate in group plans, the average per care, and kidney disease treatment. also found that: ‘‘self-funded health plans employee price of coverage stays rel- 2 The study in Iowa examined potential costs of six commonly mandated provide at least as many of the managed ben- benefits, including mental health, alcohol and drug abuse, podiatrists, op- efits as insured health plans and in some atively low and remains affordable for tometrists, registered nurses, and physical therapists. Iowa has not adopted all of these mandates; according to the Blue Cross and Blue Shield Associa- cases provide more generous coverage.’’ each employee, since the insurance tion, Iowa’s current mandates are mammography screening, well-child care, This result may partially be due to the risk is spread over a large pool of peo- chiropractors, dentists, registered nurses, optometrists, and diabetic edu- tendency of large employers to both self-fund cation. ple. and offer more comprehensive benefits. The individual market, on the other To some extent, the differences in the cost Although self-funded plans often offer the hand, contrasts in many ways from the estimates reported by the various studies are same types of benefits as are commonly group market. For instance, those who related to the number of mandated benefits mandated by states for insurers, they may buy individual health insurance pay included in each state. For example, the include features that differ from the require- studies that showed the highest estimated ments of state mandates. For example, state the entire premium out of their own costs were for Maryland and Massachusetts, mandates generally specify a minimum num- pockets, whereas, in most cases, a busi- states that have more mandated benefits ber of days of care that insurers must cover ness picks up most of the tab. If an in- than most states. Thus, these cost estimates for inpatient mental health care. One em- dividual buys it, it is out of his own cannot be generalized to other states. ployer association indicated that many em- pocket. Not only do the people receive While the studies report varying cumu- ployers prefer designing more flexible men- no subsidy from the employer, they lative costs in different states, they gen- tal health benefits; for example, requiring also do not receive the same tax advan- erally agree that several specific mandated case management rather than specifying a tages afforded to employer-sponsored benefits account for a large share of the ad- limited number of days of care. Thus, even ditional costs. In particular, mental health though 97 percent of self-funded plans offer health plans. This is a critical dif- and substance abuse are often cited as the inpatient mental health care services, all ference. Therefore, costs to the individ- most costly mandated benefits whereas other these plans would not meet the state re- ual is a major concern. When individ- commonly mandated benefits, such as mam- quirement for fully insured health plans. uals leave a group coverage situation S3522 CONGRESSIONAL RECORD — SENATE April 18, 1996 and decide not to purchase in the indi- the group purchasing in the small the American Academy of Actuaries vidual market, it is because they can- group market. First, continuing to seg- addressing my amendment, they stat- not afford it or because they are ment the market by creating different ed: healthy and have decided they do not rules for insured and self-insured . . . this amendment is unlike State man- need the coverage and do not want to MEWA’s is a mistake. dates that require coverage of specific medi- pay the amount of money they would Second, giving the Department of cal services. This is a Federal mandate that have to pay. Labor the additional responsibility of appears to greatly increase the security pro- The individual market is so price now being the insurance regulator for vided plan participants by raising their po- sensitive, as prices go up, healthy and all self-insured MEWA’s takes away a tential benefits to $10 million. less costly people leave the market, current State responsibility and hands This is also important. CBO has esti- causing the prices to continue to spiral it over to the Federal Government. mated that premiums would only in- upward. This vicious cycle makes it in- This seems totally inconsistent with crease by 0.16 of a percent, while at the evitable that individual coverage will the philosophy and fiscal reality of less same time reducing Federal and State become less affordable for hundreds of Federal Government and more respon- expenditures in the Medicaid Program. thousands, if not millions, of Ameri- sibility for the States. I think we So what we would do is to prevent the cans. should be careful when we are looking horrendous situation we have now. What is the solution? We must en- at this in the conference committee. How do you take care of the sick peo- courage purchasing cooperatives in the Requiring purchasing cooperatives to ple in this country that have an insur- individual and small group market. offer only fully insured products, as in ance policy that has a lifetime cap? Group purchasing is the first tool to the case of S. 1028, is a much better so- What happens? You reach the cap and bring down costs of individuals. The lution. Although the group purchasing then you have to, under the present sit- key concern regarding ERISA is the section of the Kassebaum-Kennedy bill uation, drain all your resources until risk of segmentation. is good, I hope we will be able to im- you are poor. And then you apply for I was very pleased when Senators prove upon it in conference with the Medicaid, and you are eligible for Med- KASSEBAUM and KENNEDY included in House. I hope we can take the lead icaid. I want to point out that I think the health plan purchasing coalition from Governor Whitman accomplished that is a terrible way to handle things. section my own bill which I offered in New Jersey. She saw the need to I also point out that other informa- with Senator NUNN, S. 1062. I believe look at the impact overburdened State- tion that we have received from rep- that the key to making health insur- mandated benefits laws can have in a utable organizations has backed us up ance more affordable for individuals small group market and developed a in the fact that this is a de minimus and small employers is properly de- variety of distinct benefit packages cost to most employers, and it is a signed voluntary group purchasing ar- that small employers can choose to huge benefit to the Federal budget. The rangements. purchase for their employees. This National Taxpayers Union has said Employer group purchasing is not in strikes me as a critical step at expand- that the net savings could be as much the concept. Many employers have ing health care coverage. as $2 billion in Federal savings and $3 been pooling funds and contracting Fixing what is broken in our current billion in State and local savings by with entrepreneurs to offer health ben- health insurance system should be just passing this amendment, at a very efits to their employees at reduced what is accomplished in this year of in- minimal cost to employers. rates for many years through some- cremental reform. Although I believe As U.S. Senators, we have the peace thing defined as multiple employer the Kassebaum-Kennedy bill is a good of mind in knowing that our health in- welfare arrangements, referred to as bill, I believe it can be a great one. surance will be there if a catastrophic MEWA’s, under ERISA. A MEWA is an That is the main reason Senator SIMON illness or injury strikes one of our fam- and I plan to offer an amendment that arrangement where two or more em- ilies. In our plan, there is no cap. Any- would raise lifetime limits, caps, to $10 ployers group together to purchase thing can be covered. In a large number million. We want to ensure that this health benefits. The more that group of HMO’s, there are no lifetime caps, bill lives up to its basic promise. What together, the lower the per employee and in some other group policies there good does it do to pass a law that pre- cost or employer cost. are no lifetime caps. So I want to focus While a number of MEWA’s form im- vents insurers from excluding individ- your attention on that. Hopefully, in portant gaps in our health care system, uals with preexisting conditions if you the time before I offer the amendment, some MEWA administrators have let employers set lifetime caps at you will learn more about this and taken advantage of the confusion as to $50,000—which is probably 1 day or 1 agree with us. who bears responsibility for regulatory week for those people—to meet the For now, I would like to, once again, oversight, the Feds or the States. It is needs of those conditions? commend both Senators Kassebaum very, very confusing. They have been It is critically important, in my and Kennedy for bringing this bill to able to create and run ponzi schemes, mind, that we make sure that we make the floor of the Senate. I urge my col- designed to take premium payments this remain a good bill and that we with no intention of covering any pass a good bill. I will mention that I leagues to vote for its passage. I am major health claims. My esteemed co- offered this amendment in committee, hopeful that when we finally do get to my amendment, you will keep in mind sponsor of S. 1062, Senator NUNN, led and they said at that time that we the effort to uncover the corruption of wanted to come out with a 16 to 0 bill. that what we will do will be almost an fraudulent MEWA’s when he chaired This was the step that people have to unmentionable expense to most em- the Senate Permanent Committee on understand—that I would not offer this ployers, but will save people from in- Investigations. He was instrumental in in committee, but I said I would offer credible experiences of having to go drafting the section of the bill that ad- it on the floor. There was some concern through bankruptcy in order to get dresses MEWA reform. It is important. raised about having amendments to health care coverage, and also will I bring it up, also, as I will mention this bill. But I point out that this is allow us to reduce the cost of Medicaid later, because of what is in the House important to the bill in order to make to State, local, and Federal Govern- bill. it work. ment. The bill Senator NUNN and I intro- This is not an extraneous amend- Mr. President, I yield the floor. duced makes clear, once and for all, ment, unrelated to the purpose of the Mr. KERREY addressed the Chair. that the States are responsible for reg- bill. If we do not prevent insurers from The PRESIDING OFFICER. The Sen- ulating all MEWA’s. Therefore, the reducing lifetime caps, then we have ator from Nebraska is recognized. number of States that have moved for- the very likely situation where they PRIVILEGE OF THE FLOOR ward in this area will no longer have to will reduce the caps if they have to Mr. KERREY. Mr. President, I ask be involved in costly litigation, using take sick people in. If we do that, we unanimous consent that Karen Dav- precious State resources, to prove they will have lost the great benefit of what enport, a fellow in my office, be al- are regulated. we are trying to do today. lowed privileges of the Senate floor I must say, I am very concerned Let me talk about the lifetime cap during our debate and consideration of about the way the House bill handles amendment. In a letter I received from S. 1028. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3523 The PRESIDING OFFICER. Without jobs have job lock as a result of the that is the goal—we spend $400 billion a objection, it is so ordered. lack of portability and the lack of abil- year in Federal direct spending in tax Mr. KERREY. Mr. President, I rise to ity to be able to purchase with pre- benefits for health care. We spend a support the Kassebaum-Kennedy bill, existing conditions. Nearly 3.8 million sufficient amount. If we would change S. 1028. I believe it is a long-overdue American workers lost their jobs in the way eligibility occurs, one of the change. As the Senator from Rhode Is- March. It is a rather substantial para- things we have to do in order to be able land and others have said already, it is dox that it has become a fact of life to get there is we all have to face the regarded by some as very incremental. that even at a time when the economy true cost of health care and very often I regard it as one of those very impor- continues to grow, even as we have a we do not. Somebody else is paying for tant pieces of legislation. recovery underway, that we have lay- it. The insurance company is paying Earlier, we enacted a piece of legisla- offs that are close to the same number for it—the Government. So we really tion, ironically, that Senator KASSE- that were occurring during the last re- do not worry about whether or not the BAUM actually took the lead on last cession that we experienced in the bill is high or the bill is low. The more year, which consolidated the job train- early 1990’s. Thus, this change in the that we can face that cost directly and ing programs and gave the States a lot law accommodates rather substantial understand that, if we do not have the more flexibility in designing their own change in our economy. resources to pay for it—it is paid for programs. I said at the time that I One of the things that a lot of us who out of an insurance pool, paid for with thought this law was the second most are older—I am 52—sometimes fail to Medicaid or Medicare, somebody else is important thing we could take up this recognize is that the cost of health essentially paying our bills—the more year because we know, with certainty, care as it has gone up has changed the that we can face that fact the more that it is going to effect some 20 mil- way people in the market, working likely it is that we will move quickly lion people. It does not cost the tax- people and particularly younger peo- to a point where, if you are an Amer- payers any money. It does make a ple, face health care expenditures. For ican or legal resident, you will know change of the law, the Federal law and example, when my babies were born 20 for certainty that you have health in- will alter the way the market works. and 19 years ago I was able to pay cash surance. But it is not the first time that we for them. I did not insure against the This morning June O’Neill, the Di- have interfered with the health care risk of having a baby because it was a rector of the Congressional Budget Of- market. relatively modest amount of money. fice, appeared before the Senate Budget One of the most expensive inter- You paid for it out of pocket. It was Committee and laid down a rather ferences that we have with the health not considered to be a big deal. Today stark warning; that is, even if the care market is that we allow health in- you need to be insured because the nor- President’s budget or the Republican surance to be deducted with offsets mal delivery is expensive. But almost budget were adopted, we still have not against FICA by employers, as well. It any extended stay in the hospital can controlled the growth of entitlement is a very important deduction, but it put a young family in a great deal of fi- programs. I say that to colleagues be- also must be seen by citizens as an in- nancial distress. cause I think once we get beyond the terference with the market because it That is just one of many, many ex- Presidential election we are going face is for upper income people in particu- amples that one could cite; a very relin 1997 a really rather difficult fact. lar. For people like myself, if I am buy- evant example because it is a rather And I believe June O’Neill laid it out ing private health insurance, it pro- common experience. There are 4 mil- for us this morning; that is, we have vides me with a substantial subsidy. lion live births a year in the United commitments on the mandatory side It has been a very important way to States, and an awful lot of those births that are going to make it difficult for allow people who otherwise would not are in families that are uninsured. This us to fund education, to fund transpor- be able to purchase health insurance to will make it more likely that those tation, to fund defense, to fund space, buy it. So it is not as if this kind of ac- families will have insurance and have to fund law enforcement, and to fund tion is without precedent. There is no coverage. all sorts of other things that are going doubt that close to 21 million Ameri- It certainly will not get us to where on. Unfortunately, very often that oc- cans will be positively affected by this. I would like to see us; and, that is, at curs because people believe that they They will be able to purchase with a point where every single American have a right to something, that they their own money health insurance, and and legal resident knows with cer- have a benefit that actually is paid up, still in many cases it is going to be tainty that they have insurance. I hope the money is all there, and it is set quite high. But nonetheless they are this is a first step. aside for them—no problems, do not going to have an opportunity to buy it. I will support Senator KASSEBAUM’s worry about it—when in fact that is They are not going to be denied the op- and Senator KENNEDY’s request to vote not the case. portunity to purchase. It does not ob- against all amendments. I believe that It gets back, it seems to me, to a literate the high-risk pool States like this bill needs to go across in an problem that we have whether it is the Nebraska. We started one when I was amendment-free fashion. I do not know tax deductibility, or whether it is Med- Governor. It does not affect States that if I ever stated what Senator KASSE- icare part B. There is sort of a sense worked on this for years to try to pro- BAUM is going to support. But I believe that somebody else is paying for it. vide some way to have all of us share a this bill is too important for me to be Why should I have to worry about it? bit of the risk. supporting, as Senator JEFFORDS ear- As a consequence, we just are not en- This bill, as I see it, is designed to ac- lier indicated, an amendment that I gaged personally as we ought to be in commodate or rather radically change would under normal circumstances trying to control the cost of health the economy where we are seeing a lot support. I will vote against that care, and as a result, it seems to me, it of downsizing, particularly in larger amendment because I believe the bill is difficult for us to take the next step. corporations. You have individuals needs to be clean and clear. It came out So again I want to say how much I that are covered by group policies from of the Labor Committee with unani- really appreciate very much and ap- those corporations. They will find mous support. We have an opportunity plaud the determination of the Senator themselves very quickly running out of to help 21 million Americans. I think it from Kansas, and the Senator from their benefits and having to purchase is very important, in spite of my re- Massachusetts. They and the Labor individual policies. And very often they spect for the Senator from Vermont Committee voted this out unani- find themselves faced with the inabil- and admiration for him personally, as mously, and 21 million Americans will ity to make the purchase. This law will well as my normal inclination to vote be affected positively. Taxpayers will basically say we are all going to share for that amendment. I believe an not be on the hook for this thing. It the risk of that in the marketplace so amendment-free strategy is the right has been measured. It will cost no more that these individuals can make the one to adopt. than 2 percent in premiums across the purchase. As has already been pointed Mr. President, one of the things that country and with reasonable changes out, nearly 25 percent of all working I think we need to do as we move to- in the law given what is happening out Americans who have private sector ward universal coverage—and I hope in the marketplace. S3524 CONGRESSIONAL RECORD — SENATE April 18, 1996 I hope this body will pass it as quick- ica woke up to a couple of things: existing condition. It would require in- ly as possible and get it on to the First, that small-business America surers to offer health insurance to indi- President for his signature. could not afford an employer mandate viduals who have lost jobs and seek I yield the floor. because they could not pass it on to such insurance. And it would require Mr. JEFFORDS. Mr. President, I their consumers like big corporations insurers to issue health coverage to in- want to comment briefly on the com- can do; second, middle-class, taxpaying dividuals who want to purchase insur- ments of the Senator from Nebraska people saw their rates going up, or if ance for their employees on a group about my amendment. I point out that, their rates did not go up the services basis. unlike all of the other amendments, that they received from the health care The bill defers to health insurance this one is very relevant to this bill industry and from the health insurance reforms passed by the States. This is and will improve the bill. It is not ex- industry would have gone down. very important for my State of Iowa, traneous to it. If we do not keep track You remember that was part of a big because in my State we have enacted a of what the lifetime caps are, then this effort we had in 1993 and 1994 where we very good health insurance reform law. bill will be a mockery because, if we re- were going to insure everybody. Obvi- It went into effect on April 1 just past. quire the insurers to take sick people ously, when there is 13 or 14 percent of Enactment of the Kassebaum bill on, one way of getting out of that is to the people who do not get insurance should not disrupt the reforms that are reduce the lifetime caps so that as soon and a large percentage of them that going on in my State. So, in my State, as they come in they are out the other cannot afford it, somebody is going to Iowans would continue to receive end. It was offered in committee with pay. There is no doubt about it. There health insurance under the terms of the understanding that it would be is no free lunch in our system of doing the Iowa reforms. brought forward at this time. business in America. I thank Senator KASSEBAUM and her I just wanted to bring that to the The middle class saw this problem, very capable staff for working with me Senator’s attention and hope that I that we were trying to reduce the cov- and my staff and with some of the will make an exception to his decision erage, affordability and quality of Iowans who helped put together the in that regard. health care to middle class working Iowa reforms. The modifications Sen- Mr. President, I yield to the Senator America as we were trying to solve the ator KASSEBAUM will offer to her bill from Iowa. problems of the 13 or 14 percent of the would help make sure that Iowa and Mr. GRASSLEY addressed the Chair. American people who did not have any similar State reforms would not be dis- The PRESIDING OFFICER (Mr. health insurance. Of course, it only rupted when this bill is enacted. As a consequence of these changes, Iowa, SANTORUM). The Senator from Iowa. took about 3 or 4 months until work- and probably several other States Mr. GRASSLEY. Mr. President, I am ing, taxpaying American citizens found should be able to carry out their own very glad that this debate is taking out what Congress was proposing to do, reforms without undue interference place before this body. Having had an and they turned against the Clinton opportunity on two separate occasions from the Federal level. health care proposal. For States which have not imple- to push concepts similar to what is in Then that message really did sink in mented their own reforms, this bill this legislation to accomplish the same to the President of the United States would then reform both the group and goal in maybe not exactly the same because after the November election in the individual health insurance mar- way, I am glad that we are here today 1994, when the Republicans took over kets in those particular States. As I and that there is a bipartisan effort to the Congress, the President said he was said earlier, these reforms would re- get this legislation passed. I think not going to attempt to have that com- spond to some of the most pressing being truly bipartisan is a continu- plete overhaul of the American health problems encountered by small busi- ation on these issues of guaranteeing care provisions he incorporated in his nesses and individuals when they need some health insurance to people who 1993 and 1994 proposals, and that if he health insurance. can afford it—things that we have tried was going to do anything it was going For the group market, this bill would to accomplish before in a bipartisan to be done incrementally. require insurers who offer group health fashion. So you have a President, thankfully, plan coverage to offer such coverage to I respect Secretary of Treasury Bent- waking up to the realities of what all groups that apply. This would pro- sen because when he was chairman of grassroots America wants, particularly hibit insurers from denying health in- the Senate Finance Committee he had what middle class America wants, they surance coverage to employers whose proposals which I think were biparti- liked their health care plans and want- work force the insurer believes is not san with the ranking Republican at ed to keep them from being diluted. healthy enough to insure. that time included in H.R. 11, a major You have the President waking up to Next, the Kassebaum bill would re- tax bill. And those health insurance that reality, on the one hand, and then quire insurers to offer coverage to all provisions went through without any you have Republicans who had accept- individuals in a group without regard debate on the floor of this body because ed these noncontroversial parts of the to their health status. This would pro- they were accepted as things that President’s health care provisions, the hibit insurers then from denying cov- should be done. To see that happen was noncontroversial parts, being debated erage for an individual member of a good. Obviously, President Bush vetoed in this Chamber today, which bring to- group plan based on that individual’s that bill because he did not like the tax gether the bipartisan efforts that are health status. This legislation would provisions that were in it. going to make this legislation very require insurers to renew group health Then, if you remember the next step, successful. plans at the option of the employer. there was a fairly bipartisan effort to So I just wanted to give that back- Renewal may not be denied for reasons make these provisions part of basic ground before I express my words of of health status of those in the plan. law. It was during the health care re- support for and cosponsorship of this Thus, an insurer would not be able to form debate of 1993 and 1994. They were very important piece of legislation, be- refuse to renew a health insurance plan relatively noncontroversial provisions cause the American people for the last to a group based on changes in the of much more controversial efforts by 6 or 7 years, as expressed by this his- health profile of the individual. the Clinton administration to have the tory I just gave you, believe it is high This legislation would limit an insur- Government totally dominant in the time Congress passed legislation which er’s ability to deny coverage for pre- delivery of health care in America and provides basic health insurance protec- existing conditions to 12 months. This do it through a provision that we tions for individuals and small busi- waiting period would be reduced by 1 called employer mandates, meaning nesses. The Kassebaum bill is our op- month for every month during which every employer, large or small, would portunity to respond to these concerns. an individual was continuously covered have to provide health insurance to This bill would assure greater port- under a prior health plan. Thus, Mr. their employees. ability of health insurance for individ- President, an individual who had main- Of course, that came down to total uals. It would limit the ability of in- tained continuous coverage for 12 defeat in 1994 because the middle class surers to deny health insurance cov- months could not be denied coverage and the small business people of Amer- erage because an individual has a pre- because of preexisting conditions. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3525 I think it is simple to say, Mr. Presi- these insurers feel the numbers of in- goal. That peace of mind should not be dent—as far as I can tell—the provi- sured are going to go up. Some of them enough for everybody to buy into this, sions I have just outlined in this bill, would say the numbers would increase because there are some shortcomings the provisions which apply to the greatly. But going up greatly, com- that we have to admit to the American group health insurance market only, pared to not having any of this busi- people. This bill would not completely are relatively unopposed. ness had these reforms been adopted in eliminate the denial of coverage for This bill would also reform the indi- 1993, is the difference between night every preexisting condition. It would vidual market. This bill would guaran- and day, as far as I can tell. not require employers to offer insur- tee the availability of health insurance It is the case that the bill would not ance to their employees. It would not coverage for individuals leaving group forbid health insurers from rating indi- provide portability between different coverage, who want to get individual viduals and charging them a higher individual policies. And it would not insurance coverage, as long as they premium if such rating indicates that necessarily mean that currently unin- have been covered under their previous they are greater health risks than any sured individuals would have to be sold group plan for 18 months. other individuals. I would think that a health insurance policy. If those individuals were eligible for would help this problem for these indi- It is for these reasons that I support coverage under current Federal law, vidual policy companies to some ex- the addition to the bill of provisions and we call that law by the acronym tent. But as far as we can tell from which would increase the tax deduct- COBRA, these individuals must have analysis done by the independent actu- ibility of health care costs for the self- exhausted that coverage before they aries, the premium price increases employed. That is not only to pick up can be guaranteed coverage in the indi- caused by the bill should be very mod- a hole that is in this bill but to also vidual market. But that is the only re- est. bring some equity to the difference be- quirement that keeps these individuals The analysis done by the health in- tween the deductibility at 30 percent of from getting insurance. surers’ association, the Health Insur- health insurance for self-employed and This legislation would require that ance Association of America, wants us the 100-percent deductibility for health health plan insurers renew individual to believe that the premiums would in- insurance for employees of corpora- policies at the discretion of the indi- crease in the neighborhood of 15 per- tions. In my State of Iowa, that is like vidual, similar to group policies being cent. But in making my decision to saying that the farmers of my State renewed at the discretion of the em- support the Kassebaum bill vis-a-vis are denied equity when they can only ployer providing the group policy. Now, this problem I am just describing, I deduct 30 percent of their health insur- without a doubt, there has been a lot of took into consideration the analyses ance from their income tax, where concern expressed about this provision, done by independent actuaries such as John Deere, for its workers, can deduct and it continues to be expressed. It the American Academy of Actuaries, 100 percent of the cost of insurance for continues to be expressed by insurers and Hay Huggins, which was done that corporation. who operate primarily in the individual under contract with the Congressional I support the addition of medical sav- market. Research Service at the request of Sen- ings accounts. Both the tax deductibil- I might say to these companies that ator KASSEBAUM, and even the non- ity of health care costs for the self-em- I am talking about here, that have this partisan Congressional Budget Office. ployed and MSA’s, together, at a mini- concern—and I am not going to say All these found that any premium in- mum should make health insurance that this concern is not legitimate— creases attributable to the enactment more affordable, improve portability, but, as far as practical matters are of this legislation should be very mod- as well as providing a greater degree of concerned, I want to remind these com- est, in the range of 1 to 5 percent. The tax fairness. In any case, if enacted, panies that if we were to have passed Congressional Budget Office estimates the bill would be a step forward. The the Clinton health reform plan of 1993, that this increase would be no more majority of those who are paying at- there would not have been any individ- than 2 percent as a result of the group tention to our debate since it began ual market out there. These companies to individual portability provisions. If several years ago very much want to would have been out of business. A lot this bill is enacted, it should help pro- see Senator KASSEBAUM’s bill enacted. of the companies in my State that do a vide some peace of mind for a lot of We have been promising these reforms, majority of group coverage still have a people. as I indicated at the opening of my re- vast minority of their business in the But we should make it clear to the marks, since the Bentsen bill passed individual market. That portion of public what this bill would not do. As a this body in 1992, without any debate— their market would have been wiped lot of people have said here already, it indicating, then, that it was the best out. I hope these companies that have would not solve the problems of those thing to do. It was a good thing to do. some concern about this provision I am people who cannot afford to have It was a bipartisan thing to do. speaking about here realize that they health care insurance. But that is what So most of us have been saying since have a lot of friends in this body that the term ‘‘incremental’’ meant. When that date in 1992, or years before that, believe in the free market and do not President Clinton, after the November we could easily enact such reforms as want to hurt individual insurance cov- 1994 election, when the Republicans those that are in this bill. Remember, erage. A lot of Americans want individ- gained control of Congress, was asked then, what incremental health reform ual insurance coverage, not necessarily about health care reform, he indicated is. Incremental reforms were what because it is better than group, but be- he had learned a lesson from the debate most Republicans were saying was the cause that may be the only way they of 1993 and 1994, and he was going to way to go and we have the President of can have it and get the type of health promote the incremental approach. Ba- the United States, in November 1994, care that they want. These companies sically that means we should provide a saying the same thing. Now we have have that business today because we marketplace out there so people who before us a bill that will deliver incre- stopped the Clinton health care reform want and can afford health insurance mental health insurance reform if it is plan that would have wiped out indi- are going to be able to buy it. enacted. We should pass it. vidual insurance coverage for health We are going to be able to get a bet- We have before us a bill that will de- care. ter handle on what the cost is out liver these incremental health insur- Now, what do these companies fear? there, for those who cannot afford in- ance reforms if this bill is enacted—and They fear that the group to individual surance. Maybe we can help those peo- it will be enacted—and we should pass provisions in the Kassebaum bill would ple without screwing up the best health it. Thank you. have the ultimate effect of greatly care system in the world, which would Ms. MIKULSKI addressed the Chair. raising premiums in the individual have been done with the effective Gov- The PRESIDING OFFICER. The Sen- market and hence, I suppose, cutting ernment takeover of health care, if the ator from Maryland. out a lot of their business because Clinton health care proposal had gone Ms. MIKULSKI. Thank you, Mr. some people might drop it. The mar- through in 1993. President. ketplace kind of dictates as the price But peace of mind for this percentage I rise to voice my very strong sup- goes up you sell less of something. So of people that can afford it is only one port for this health insurance reform. S3526 CONGRESSIONAL RECORD — SENATE April 18, 1996 This is a tremendous opportunity There is much more that I would like promote solutions that expand health today to provide greater access to to be able to do to make insurance cov- care choices and, most of all, in the health care for millions of Americans erage affordable, accessible, portable final analysis, do something about and their families. The Kassebaum- and undeniable. I would like to see cov- cost. When you talk about health care, Kennedy health insurance bill, of erage for long-term care, and I would what do you usually end up talking which I am a cosponsor, is an excellent like to see a comprehensive benefit about? Cost. Availability, of course, step in that direction. package for women and children, but then cost. This bill will be a great relief for this is a very important step. We have I happen to favor medical savings ac- most working Americans. They will a tremendous opportunity to improve counts. I think this gives the kind of not have to worry about losing their the lives of many Americans, and I am discipline to health care costs that in- insurance if they change jobs. Insur- pleased to support this bill. dividuals give when they are respon- ance companies will not be able to Mr. President, I yield the floor. sible for making some of the decisions. deny coverage or make it prohibitively The PRESIDING OFFICER (Mr. Self-employed deductibility is fair expensive for a preexisting condition. SHELBY). The Senator from Wyoming. and equitable, and we should have done What this means, Mr. President, is Mr. THOMAS. Mr. President, I rise in it long, long ago. Eighty percent of that this bill is a safety net for work- support of the Kassebaum bill. I sup- that is good. Administrative sim- ing Americans and their families. This pose most of us today and on through plification, of course. And I believe legislation will make health insurance the night will be saying much the same when we talk about costs, we ought to portable and affordable, and it will give thing. We have not all said it yet, so we concern ourselves with malpractice re- a benefit package that is both reliable will have to keep doing it. But this is form. I do not think there is any ques- and renewable. a bill that is very important to us, and tion but what there are substantial I was disappointed that we were not we ought to comment on it. costs there. able to enact comprehensive health in- It provides, I think, long-awaited re- Mr. President, I have been dismayed surance reform. After that debate came forms. We have all worked on health that the President is threatening to to a close, I pledged to continue the care for a very long time. I have had a veto health insurance reform over fight to reform health care. This is an particular interest in rural health care some of these provisions. I believe the important step in that direction, and in that the delivery systems in rural veto flies in the face of what the Amer- Senator KASSEBAUM and Senator KEN- States are necessarily quite different ican people want. NEDY should be thanked for their great than they are in other States. As part of the changes that have oc- effort in bringing us this far. This is an incremental move, and I curred in Washington last fall, I am Many Americans have medical his- am for that. The portability is impor- committed to bringing quality health tories of preexisting conditions that tant so that people are not afraid to care to rural America, some equity to make it difficult for them to get insur- change jobs. Certainly, not prohibiting rural America, and that is why I have ance coverage. They stay locked in preexisting conditions and allowing an amendment to offer that corrects their jobs and unable to move to im- small businesses to form purchasing the formula used to set payments for prove their standard of living because cooperatives are terribly important. So rates under managed care plans that they fear they will not be able to get these are practical and affordable re- participate under Medicare. We will see insurance coverage. This legislation forms that we need—really relief from will end job lock. This legislation will increasing numbers of managed care trying to change the whole system. I end the penalty for having a preexist- plans, and more and more people in think Congress will meet this chal- ing condition, like diabetes. People Medicare going into them. lenge. The formula is not fair, the formula who work in small business, especially The Health Insurance Reform Act many women, will now be able to get is not equitable, and we need to make helps each and every American, more health insurance. some adjustments. To give an example, The bill before us today goes a long than any other bill that has passed this the payments made in rural areas of way toward eliminating the barriers to year. Wyoming ranchers and farmers South Dakota are $177 a month. Pay- coverage. For 81 million Americans and owners of small businesses and ments for similar services in New York who have preexisting medical condi- folks in the mineral industry will no are $678 a month based on historical tions, insurance companies can no longer be excluded from care they de- utilization. That needs to be changed. longer exclude them from coverage. serve. S. 1028 is compassionate, and I That is unfair. When we have a pro- Millions of Americans will be able to challenge President Clinton to sign gram like Medicare that is treated be secure in the knowledge that if they this bill for the sake of all Americans. somewhat uniformly, that is a 367-per- change or lose their jobs, they will not There has been a major shift in the cent gap, and we can change that, and lose their health insurance. And for debate, of course, over the last couple I think we should. those entrepreneurs who start and of years. It is historical when you look The longer these disparities exist, work in small business, this legislation at how far we have come since we ini- the longer rural seniors will be left will provide increasing purchasing tially discussed health care reform. No with less health care choices. power for them and their families. longer are we considering the Clinton So I am in support of this bill. I I am pleased that the bill has the po- approach to a Government-run system. think it could be stronger. I hope it is. tential to help millions of women and That was rejected by Americans, and I But I am supporting it. I think we their families. This legislation will think properly so. Instead, we are should have this bill. Access to health help women who start a new job with going to move incrementally into some insurance is, of course, a little com- an employer who provides health insur- commonsense reforms. There will be forting for those who need it. ance. A woman will not be denied in- some changes, and there have been Mr. INHOFE. Will the Senator yield? surance for herself and/or family if some changes suggested by the man- Mr. THOMAS. Yes, I yield. there is a preexisting condition. Like agers, moving closer to the House pro- Mr. INHOFE. I recall the Senator when she is pregnant, she will be able posal, in terms of high-risk pools. bringing up and discussing some of to get immediate coverage for the In 1991, my State of Wyoming re- these things that need to be done with- pregnancy, even if she is already preg- sponded to the health care concerns of in our health care system. I remember nant. Her newborn or adopted child individuals with serious illnesses es- so well back when we had the proposal will receive health insurance coverage tablishing a State insurance pool, a by the President to have Government as well. high-risk pool allowing States to con- take over a system that has been run This bill will stop the terrible prac- tinue these measures, rather than be well but needed some improvements, tice of denying women insurance if forced to enact other individual insur- we committed ourselves at that time they are victims of domestic violence. ance reforms. I think this is very help- to incremental improvements. I think that is crucial. This bill will ful to rural States like Wyoming. I think the bill that is before us stop that horrible practice of denying Moving incrementally does not mean today is good. But I also think that the women health insurance if they are keeping every worthwhile proposal off amendments that will be offered, some victims of domestic violence. the table, however. I think we should of the provisions of which the Senator April 18, 1996 CONGRESSIONAL RECORD — SENATE S3527 has talked about, are going to make it Members of this body. It has been a the only reason they really give is be- better. The MSA element of this bill I real pleasure to work with her in the cause you got sick. That was what they think is very significant. You know, so-called Chafee-Breaux Group where bought insurance for in the first place. this is the only product or service any- we have been trying to come together If you get sick you have insurance. It where in America where it has built in to come up with a balanced budget. I takes care of the hospital and the doc- a factor to pay more. I do not know of commend her for her efforts in that re- tor bills. anyone in America, that once they pay gard, but particularly in bringing this But today, unfortunately, in this so- their deductible on a health policy, Kassebaum-Kennedy bill to the floor; ciety we have people who get sick and watches what they spend as much as if and, of course, for the years of tireless then have their insurance canceled just they were paying their own money. service by the senior Senator from when they need it the most. So they do This is human nature. Massachusetts, because he has really not have it today. This legislation, for I am hoping that this bill that is a been dedicated over the years in trying the first time, says that you are not good bill, can be made a much better to come up with health care legislation going to be able to cancel someone’s bill and we can come through and take that really serves the needs of the peo- health insurance because they got care of some of the things that the ple of this country. sick—sort of a logical thing I think we Senator is talking about. I am particu- Let me start by saying that this in- should have done a long time ago. But larly interested in some items that are deed is a large coalition. It is a large this legislation does accomplish that. not going in there. I would like medical coalition—65 Members of Congress in The second point is, people, in my malpractice reform but I also realize the Senate alone have endorsed and State and other States, that have tried that would be a very heavy thing that have agreed to cosponsor this legisla- to buy health insurance, and, some- would cause it to go down and perhaps tion. So that in itself is very rare in to- times, because they have had a pre- cause a veto. I think with these very day’s atmosphere of high partisanship existing condition, they are prohibited moderate and modest reforms that the that we see more and more, unfortu- from buying a health insurance policy. Senator is talking about, I think it will nately. So anytime you can get a coali- I do not think that is basically fair. be a better bill, better bill for our tion of 65 cosponsors of a major piece of Health insurance shares the risks. health delivery system in America. I legislation indeed that is very, very There are a lot of sick people that are applaud the Senator for bringing these good news. in the insurance pool. There are a lot up and discussing them. Let me also say that while the coali- of well people in the insurance pool. On Mr. THOMAS. I thank my colleague. tion is large, the coalition is very frag- balance, the insurance companies Before I sit down, I do want to com- ile. It is very fragile because it does make money and people get health in- pliment the Senator from Kansas. This not do as much as what many Members surance. is the product of a great deal of work would like to see it do. And there are That is how the system is supposed and great deal of leadership and some- still things that this legislation does to work. So this legislation addresses thing that we do need to do. I want to not do that it should address. It prob- the problem of people who have had say, however, in closing, that I think ably does more than some people would preexisting conditions and brings them we have made some real progress in the like to see done with requirements in a fair fashion into the system in a last couple years in the industry, in from a Federal level that certain way that I think makes a great deal of the private sector. And even though I things be required when you sell health sense. think there are some problems that we insurance in this country. The other problem of all those people will have to deal with as we go about But the real accomplishment of the who do not have health insurance in it, managed care has been helpful, two Senators in bringing this legisla- my State and, again, in the other 49 managed care has done something to tion today to the floor of the Senate is States is because they have had to control prices. the fact that it is a large coalition, it change a job. And we all know in this I think more and more people are be- is a bipartisan coalition. It does, I mobile society as people change jobs coming aware of their responsibility think, accomplish some very important because of downsizing, or because of with regard to payments. I think it is things that need to be done in the area changes in technology, they are able to true that third-party payers have been of health insurance for the people of get a better job through education and part of the problem of costs. We can America. training, they could move on to an- work that out. So in any event, I rise In my own State of Louisiana there other field, the problem is that many in support of the basic bill. It guaran- are nearly a million people who are un- people will not change jobs, will not tees coverage of the type of insurance insured, a million people who do not get a better job even if it means better particularly important today, and I have enough money to buy a private economic conditions for themselves compliment the Senator for it. I yield insurance policy or who earn more and their families. Guess why? Because the floor. than they are allowed to earn and qual- they will lose their health insurance. Mr. BREAUX addressed the Chair. ify for Medicaid, the Federal-State So we have a situation referred to as The PRESIDING OFFICER. The Sen- health insurance program. So a million ‘‘job lock’’ where our people would like ator from Louisiana. people walk around my State every to move on to better jobs—or maybe Mr. BREAUX. I thank the Presiding day—go to work in most cases every even forced to change to a new job be- Officer. day—but do not know how they are cause of downsizing—and cannot do so Let me start by saying what I would going to treat their children, their because they lose their health insur- imagine has already been said a num- spouses, if they should get seriously ill ance, which is one of the most impor- ber of times; that is, to compliment the other than through the charity of oth- tant things that the job market can junior Senator from the State of Kan- ers or the charity of the hospital sys- provide. But if you cannot be guaran- sas, Senator KASSEBAUM, and the sen- tems in my State of Louisiana. teed that coverage you have today will ior Senator from the State of Massa- Many people do not have insurance be with you tomorrow when you are in chusetts, Senator KENNEDY, for bring- for reasons that are corrected by this a different job, well then, people say, ing together a unique, I think in these legislation. For instance, there are ‘‘I’m just going to stay right here.’’ Or times, coalition of Members to support many people who had insurance but if they get laid off and they have to a major, major legislative effort in one when they got sick and needed it the move to another job, they do so per- of the most important areas that this most, it was canceled. How many of us haps without any insurance because Congress could be dealing with, and as Members know a family or perhaps a they are uninsurable when they move that is the health care of the citizens member of our own families that have into the new position. of this country. had health insurance, but then when So what we have today through the This body is going to miss the Sen- they need it the most, when they get Kassebaum-Kennedy legislation is a ator from Kansas for her wisdom and sick, after the illness is over, they get major, major health reform package her balance and her willingness to a little note in the mail from an insur- which I enthusiastically am a cospon- work in a bipartisan fashion to accom- ance company that says, ‘‘Well, we’re sor of and congratulate the people who modate the various interests of the going to cancel your insurance’’? And have brought this monumental piece of S3528 CONGRESSIONAL RECORD — SENATE April 18, 1996 legislation to us. It will, when it section of the proposed Dole amend- that Senator DOLE has offered, and I passes, and President Clinton signs it, ment and proceed to pass this legisla- think most of them, from my personal be, I think, a shining example of what tion, hopefully with the other amend- observation, are good. I think we Congress can do when we are willing to ments that the majority leader is pre- should accept them. But certainly not work in a bipartisan fashion to accom- pared to offer. the medical savings account at this plish something as monumental as this Let me tell you why I think medical time. legislation does. savings accounts are a bad idea. I say, Let me conclude, once again, saying I know the majority leader has a first of all, at one time I thought they to Senator KENNEDY and Senator package of amendments that he is were a great idea. At one time I intro- KASSEBAUM, my congratulations to you going to present at a later time. I as an duced legislation to create medical for bringing to the Senate a real oppor- individual Senator and a member of savings accounts. Boy—they sound ter- tunity to do real health care reform in the Finance Committee looked over a rific. I asked my staff—‘‘What is the 1996. We hope that the Senate and the lot of the suggestions in the proposed problem?’’ At the time, we—like many House would ultimately pass this legis- amendments that he has submitted. others—did not have the full picture to lation, and the President should sign You know, a lot of them are good ideas. understand the problems. Few had ana- it. They have not yet worked their way lyzed the effects of medical savings ac- Mr. FEINGOLD. Mr. President, I rise through the committee. That gives me counts. in support of this bipartisan health in- a little concern about how these new The problem was that while it is real- surance reform bill, a measure that I ideas are going to be paid for. Our ly terrific for healthy people, it is not was pleased to cosponsor. There are a staffs are now, as we speak, looking at so terrific, in fact, potentially very number of reasons to support this leg- the legislation and the series of amend- bad, for people who are not healthy. If islation introduced by my good friends, ments. I think, by and large, most of you take, for example, young people—I the Senator from Kansas and the Sen- them are pretty good—80 percent tax have four children who are relatively ator from Massachusetts. deductibility for self-employed people young and very healthy, thank good- Let me focus my remarks on ways in who buy insurance. All the people ness—a medical savings account is very which this measure should provide around the country that are self-em- attractive for them. Their employer some meaningful help for one group in ployed, now, can only deduct about 30 can contribute money to an account, particular. That is our Nation’s small businesses. percent of their premiums. With this and they would use that account to pay From existing companies trying to amendment, you would be able to de- for their initial medical bills during maintain health care coverage to indi- the course of the year. If they did not duct 80 percent of your health insur- viduals who are trying to start a small have to use it at all, they get to keep ance premiums. I think that is pretty business, this bill addresses several the money. What a great deal if you darn good, just like a company that problems confronting smaller firms are 20, 25 years old and very healthy. contributes to a policy can deduct 100 trying to provide health insurance for So, in the past, we had only looked at percent of their contributions. So we their employees. how it affected one group of people— should do something for the self-em- First, Mr. President, and I want to ployed people in this country. That healthy, basically young people. A ter- emphasize this, the measure addresses amendment does that. rific idea for them. What we failed to the barriers often posed by preexisting Penalty-free IRA, individual retire- look at is how it affected other people conditions. An estimated 81 million ment accounts, withdrawals for large who buy insurance because they may Americans have some kind of preexist- medical expenses and for the unem- get sick—generally, more elderly peo- ing medical condition that could, un- ployed to pay their health insurance ple, and people who do get sick during fortunately, affect their insurability. premiums. That is a good idea. We have the course of their life. If they have a The legislation limits the ability of in- talked about that. I think this should very high deductible policy, as high as surers to impose exclusions for pre- be bipartisan in that amendment. I $3,000 for a family, they have a prob- existing conditions. think that is good. lem, because they will incur medical In addition, the bill requires insurers My point, as I reach to a conclusion expenses during the year. If they have to sell and renew group health policies here, is that we have a large coalition, to pay for it out of their pocket, it is a for all employers who want coverage but it is a fragile coalition. I suggest really serious problem for them. Again, for their employees, and it prohibits that if people come up with amend- it is not a problem for people who are group health plans from excluding any ments that are very controversial, that young and never have to go to the doc- employee based on health status. there is not a consensus on, or that we tor during the course of the year. Now, Mr. President, this can be espe- have not had hearings on, or amend- Incentives for the medical savings cially helpful to our small businesses. ments that have not been reported out, account have a tendency to suck out The problem of getting insurance does like this bill has, by a full committee all the healthy people from the insur- not just affect individuals with pre- of the Senate, that we will run into ance pool, put them into a medical sav- existing conditions. Whole industries problems, and we will miss what I ings account where they will not be have been denied coverage by certain think is a golden opportunity to, in using a lot of medical health care, but insurers because they are not to em- fact, create legislation which makes a leaving behind people who do get sick, ploy people who are more likely than lot of sense for all Americans. who do have to go to the doctor and do others to get sick. One of the amendments I will just have to go to a hospital during the A study by the Congressional Re- mention is a so-called medical savings course of a year. If the only people research Service found that several in- account. This is a classic example of maining in an insurance pool are peo- surers routinely denied coverage to ‘‘if it sounds too good to be true, it ple who have to use doctors and hos- dozens of different types of businesses probably is.’’ I think that when you pitals, the risk becomes so great be- ranging from some of the following: look at this concept—and I found after cause of the loss of healthy people, auto dealers, barber shops, beauty par- looking at it—that it, in fact, is too that their premiums would rise so high lors, hotels, lodges, and restaurants. good to be true and causes problems that insurance would soon be Mr. President, even businesses and in- that greatly outweigh the benefits. It unaffordable for them as well. dividuals that have health insurance is not to say that medical savings ac- My fear is that while a medical sav- cannot be sure of maintaining their counts do not have some benefits; they ings account takes care of one group of coverage if illness strikes. do. But I do not think that we are cer- people, it causes far greater problems Insurers can, therefore, collect pre- tain enough about those benefits as op- than are justified for everybody else, miums for years and then just suddenly posed to the negative problems that which is the vast majority of the re- refuse to renew coverage in individuals will occur to automatically accept this maining people in this country. or employees who begin to incur large provision without a great deal of dis- I think at the appropriate time we health care costs. So, requiring insur- cussion. should set aside the medical savings ers to renew policies can certainly help I hope when that amendment is of- account, with an amendment if we address that problem. This bill finally fered we will be able to strike out that have to, look at the other amendments helps move us down this road. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3529

Mr. President, the bill also guaran- ator KASSEBAUM and Senator KENNEDY But the fact of the matter is that tees renewability of individual policies in crafting a measure that, finally, has even though my State of Minnesota and prohibits insurers from denying in- a real good chance of becoming law, at has passed such a piece of legislation, surance to those moving from group a time of very heightened political sen- saying, no, that is not fair, there has to coverage to individual coverage. We sitivities on this issue. be a mother and a doctor and the fam- know that the inability to retain Before any measure is enacted, it has ily in consultation making decisions health care coverage once somebody to navigate the choppy waters of each about what is good for that mother, leaves a job can trap many people in body, a conference committee, going about 40 percent of the citizens in Min- the jobs they wish to leave. This is back to each body again, and, finally, nesota would not be covered because often referred to as ‘‘job lock,’’ a prob- receive Presidential approval. they are in a self-insured plan. lem, according to one survey, that may That is no mean feat at any time, but This is an extremely important piece touch one quarter of all American it is especially difficult in the political of legislation. I hope it is not so workers—individuals that stay in jobs environment of a Presidential election weighted down with killer amendments they would otherwise leave, because year. that it does not pass. This is a biparti- they fear losing their health care cov- If this bill becomes law, as I hope it san effort, and I think we ought to take erage. will, its enactment would be in no this step for one reason more than any Mr. President, this job-lock effect small part due to the legislative skills other; it is just a matter of elementary has an impact on small business, as of the Senator from Kansas and the fairness. I have not seen polls on this, well. Unless you inherit wealth, or Senator from Massachusetts, and, I but I think the Senator from Kansas maybe win the lottery, the chances are might add, to the fondness and respect and the Senator from Massachusetts, pretty good that anyone who wants to many of us in this body have for both and all the rest of us that are cospon- start a small business will be some- of them. sors, would go forward regardless, but I Mr. President, I congratulate my body’s employee—at least as they just bet that 99 percent of the country friends, and I yield the floor. would agree with the proposition that make the decision to become a small Mr. WELLSTONE addressed the if you have paid your premium on business person. If you or a member of Chair. your family have any kind of preexist- The PRESIDING OFFICER. The Sen- time, just because you now have a bout ing condition, you may be faced with ator from Minnesota is recognized. with breast cancer, or some other kind of illness, it would be outrageous to all this job lock. The inability to get PRIVILEGE OF THE FLOOR of a sudden find yourself without cov- health insurance prevents those indi- Mr. WELLSTONE. Mr. President, viduals from leaving their existing jobs first of all, I ask unanimous consent erage, or you should leave one job and to start their new business. that Dr. Maimon Cohen, a fellow on my go to another job and not be able to ob- Mr. President, I think this barrier staff, have the privilege of the floor tain coverage. Most all Americans just find that to has a major impact on our economy by during the pendency of this legislation. discouraging new business startups. We The PRESIDING OFFICER. Without be an outrageous proposition. My wife, all know that small business is the real objection, it is so ordered. Sheila, has been my teacher when it foundation of our economy. We have an Mr. WELLSTONE. Mr. President, I comes to domestic violence issues. And insurance practice that discourages think every Senator who came to the with the support of both the Senators people from taking their good ideas floor has thanked both Senator KASSE- from Kansas and Massachusetts in and starting new businesses that will BAUM and Senator KENNEDY for their markup, we have a provision in here employ many more people. That is a fine work. I wish to join in that. I also that we think is important dealing real, real restraint on the growth of say to the Senator from Kansas, who is with issues of family violence. I wish our economy. chair of the Labor and Human Re- these issues were not out there. But we Mr. President, finally, I want to com- sources Committee, that along with ev- want to make sure battered women are mend the authors of this measure for eryone else, I will miss her. I think she not battered again. If a woman is beat- the provisions that help make it easier has been a great Senator for Kansas en up and comes to a hospital with her for small businesses to form private, and for the benefit the country. I mean children and reports that, which is voluntary coalitions to purchase that sincerely. what she should do, and which is the health insurance, and to also negotiate Mr. President, I think this is a very first step in being able to leave a very with providers in health plans. important piece of legislation for a dangerous home—and, unfortunately, While the economic power of big number of different reasons. I would homes are not always the safest places businesses has enabled many larger like to start out talking about that. I in the world—she would not find her- firms to contain health care costs and am going to be relatively brief, I say to self without coverage for that condi- improve the quality of health care for other colleagues, who may want to tion. their employees, small businesses con- come down to the floor for opening So this is really a piece of legislation tinue to see health care costs climb. statements. that is a matter of basic fairness. I The Senate Labor and Human Re- I think this is important because, know GAO has estimated that some 25 sources Committee reported that while first of all, we will not be able to have million Americans could benefit. I also health care costs for large employers any kind of regulation if we do not do want to make the point that most of declined 1.9 percent in 1994, small em- it at the Federal level because of the uninsured in our country are unin- ployers saw an average increase of 6.5 ERISA exemption—in other words, pre- sured because they cannot afford cov- percent. This is a very large discrep- emption. In other words, so many citi- erage, not because they are denied cov- ancy, and one that really discourages zens in our States are insured by self- erage. small business at the same time that insured plans, and really it is impos- So, in other words, we have a piece of larger businesses are benefited. sible for States—and Minnesota has legislation that deals with accessibil- By providing small employers and in- run into this—to pass reforms that, in ity and with portability. For those of dividuals with the kind of economic le- fact, will help people and cover every- you listening to the debate, that means verage in the marketplace that is cur- one because self-insured plans are ex- you can go from one job to another and rently enjoyed by large employers, empt from that coverage. We ran into not lose your coverage or be locked out these provisions should help bring the this the other day when we marked up because of a preexisting condition. We costs of health insurance down for an important piece of legislation that I are not still dealing with affordability. small businesses and individuals. hope will come to the floor, where we In Minnesota, there are 400,000 Min- Mr. President, as you know, there are said, look, you really do not want to nesotans without insurance coverage, over 50 cosponsors of this measure, have a family be put in the situation and 91,000 of them are children. In the pretty evenly divided between Demo- where a mother with a newborn is told, main, that is not because of preexisting crats and Republicans. Of course, this after 24 hours, regardless of cir- conditions, it is because the families is an indication of the broad desire for cumstances, ‘‘You are out.’’ I mean, cannot afford the coverage. Nation- health insurance reform. But it is also that is something that people in the wide, the uninsured now number 40 an indication of the care taken by Sen- country do not think is fair. million people. S3530 CONGRESSIONAL RECORD — SENATE April 18, 1996 I hope that we will get to the point, piece of legislation to bringing this With this legislation, it is going to be again, in this Congress when, in fact, amendment to the floor with my col- possible to make the health insurance we make sure that every citizen in our league, Senator DOMENICI. Mr. Presi- system work for all Americans so that country has at least as good a health dent, I do not know that there has been all Americans can get access to health care coverage as we have as Senators another Senator who has been a insurance and get it when they need it and Representatives. This piece of leg- stronger voice in this area for those most, which is when they have serious islation does not do all that, but it is citizens who are struggling with men- medical problems. an important step forward. tal illness. The same thing can be said I would like to give special thanks to One other concern I have, Mr. Presi- for his wife Nancy. For Sheila and I, the chair, Senator KASSEBAUM, and to dent—and I just want to make this this has emerged as a professional and Senator KENNEDY for their efforts to point—you cannot do everything in one a personal friendship. I look forward to work with those of us from Oregon. Or- piece of legislation. I am out here to being able to proudly bring this amend- egon has been one of the States, as the support it. I worry a little bit that ment out to the floor with my col- Chair knows, that has consistently what might happen is that the insur- league and good friend, Senator DO- been out in front in terms of health re- ance companies might say, ‘‘OK, when MENICI, and I hope in the spirit of what form. We have done it with the Oregon you shift from job to job, or you move I think is bipartisanship that we will Health Plan, for example, innovative in from one job and now you want to set be able to get good, strong support. terms of senior programs, and we have up your own small business, or what- I yield the floor. been on the cutting edge with insur- ever, we will not deny you coverage be- Mrs. KASSEBAUM. Mr. President, ance reform as well. There is a very cause of a preexisting condition, but we may I respond for a moment to the special State effort supported by Re- will raise your premium to $8,800 a Senator from Minnesota, who is a val- publicans and Democrats alike at year or $9,000 a year,’’ in which case, ued member of the Labor and Human home. We have initiated a number of my fear is that it will become the func- Resources Committee? important insurance reforms at the tional equivalent of preexisting condi- When he mentioned the rate increase State level that we felt had to be pro- tion discrimination. Let us hope we possibly coming if we do not cap any of tected. Through the good offices of the have the cooperation of the insurance the premiums, I would just say also chair, Senator KASSEBAUM, and Sen- industry. But I just flag that as a po- that we do not preempt States from doing community weighting or a cap, if ator KENNEDY that has been possible. tential problem. I have been notified in writing that Last point, Mr. President. I have a State so desires. That is one of the the Oregon insurance reforms that been doing a lot of work with my col- flexibilities that I believe is important. have been initiated on a bipartisan league from New Mexico, Senator DO- It is one of the reasons we have the basis are working well according to the MENICI. A couple of years ago, we start- strong support of the State insurance insurance industry, and consumer ed a working group on mental health. commissioners. That flexibility which groups alike are protected under this Both of us, and other Senators, feel has been built into this also has strong very strongly about this issue. We are support from the National Governors’ legislation. Finally, Mr. President, let me add working on an amendment that I think Association. that no one should be mistaken about is real important. It is an amendment Mr. WELLSTONE. Mr. President, I how much more is left to do in the area that would provide equitable health never argue or disagree with the chair- of health reform. If I had my way, for care coverage for mental illness and man of my committee. I think it is a example, a very important, albeit mod- substance abuse services. In other point well taken. I do hope at the State words, what we want to make sure of is level we will have in fact that over- est, change that we would add to this that we, once and for all, put a stop to sight and that accountability. legislation would be to open up the na- the discrimination that all too often Mr. WYDEN addressed the Chair. tional practitioner data base to the takes place in the health care field. We The PRESIDING OFFICER. The Sen- public so that the citizens of this coun- are simply talking about parity—par- ator from Oregon is recognized. try could get access to the disciplinary ity in coverage for physical and mental Mr. WYDEN. Mr. President, thank record where the medical profession health and substance abuse services, you very much. has disciplined one of their colleagues. and not different co-pay requirements, Mr. President, I take the floor today I wrote this law as a Member of the not arbitrary caps on visits with physi- to speak on behalf of this extremely House of Representatives—again, a cians or other health care providers. I important bill. In doing so, I want to statute that has bipartisan support. have to say that I believe this amend- commend the chair, Senator KASSE- Today in that data bank lay thousands ment, which we have worked very hard BAUM, and also Senator KENNEDY for and thousands of names of physicians on, is an extremely important amend- what I think is exactly the kind of who have been disciplined formally by ment. spirit of bipartisan effort that is need- their colleagues, and the American I believe that Senators, regardless of ed to produce an important health bill. people cannot find out about it. The reason this legislation is very political party—Senator DOMENICI and Senator BOXER has done yeoman I certainly do not agree on all issues, important is it will provide a new path work on this issue. A number of our but we have been immersed in this for upward mobility in American life. I colleagues on both sides of the floor issue for several years now. We have have seen again and again in my home have approached me on this. If I had seen all of the ways in which people, State—this goes back to the days when my way, we would be on the floor today who are struggling with these health I was director of the Grey Panthers, a including this important change that care problems, fall between the cracks. senior citizens group at home—I have would be of benefit to consumers. We have seen the discrimination. And seen citizens cut off from economic op- But as a number of our colleagues this amendment, which will really portunity because this bill was not law. have noted, it is not possible to get all focus on the importance of parity, You could have, for example, a young the way to health reform in America. which will make sure there is no dis- person just starting their career in Or- It is not possible today to get all of the crimination in this area, I think, is ex- egon. They are working hard. They are work done that needs to be done to pro- tremely important. committed, doing well in the market- tect consumers and to insure universal I will have data to bring to the floor. place, playing by the rules, and show- coverage. But I think it is quite clear I will talk about some of the insurance ing the kind of discipline to get ahead that a major step forward is being plans right now that do not discrimi- in the work force. But they, in effect, taken as a result of the bipartisan nate and will talk about why this part end up being cut off because they have work done by Senator KASSEBAUM and is so important. I will talk about the a medical problem. So, if they hear Senator KENNEDY. differences it can make for women and about a better job across town, another I urge my colleagues to support this men being able to work, to live lives of economic opportunity where they can legislation and then, as it goes to con- dignity, and to contribute to the com- make a better wage, they lose out sim- ference, to reject the number of munity. ply because today’s insurance system anticonsumer provisions that were But I do look forward at some point does not work all that well unless you added in the House. For example, in in time as we move along with this are healthy and wealthy. the House—it seems, again, incredible April 18, 1996 CONGRESSIONAL RECORD — SENATE S3531 to see this kind of anticonsumer re- on this issue, and on other important health ability or the need for portability. Ba- treat—the House wants to roll back the matters. sically, there was agreement on the protections for older people who buy Sincerely, issue of letting people who have pre- policies to supplement their Medicare RON WYDEN, existing conditions get health insur- U.S. Senator. care. The late Senator Heinz of Penn- ance. That was very important. Let sylvania and others fought for years U.S. SENATE, COMMITTEE ON small businesses form purchasing pools for this legislation. The House wants to LABOR AND HUMAN RESOURCES, so their employees could get a better roll it back. The House wants to roll Washington, DC, April 18, 1996. price for health insurance. There was back the fight against fraud and waste. Hon. RON WYDEN; and is agreement on that. So, I hope today that the Senate will U.S. Senate, These are basic mainstream prin- vote for this important bipartisan leg- Washington, DC. ciples. I am happy to say that they are DEAR RON: Based on my understanding of islation—it is an important step for- the Oregon plan, it would clearly meet the embodied in the legislation that we ward—and then to reject the legisla- requirements for an alternative State mech- have before us today. tion in conference coming from the anism under the State flexibility mechanism The Kassebaum-Kennedy legislation House. of the Kennedy-Kassebaum bill. My under- would create major positive changes in Mr. President, I ask unanimous con- standing is that your program offers a pro- the health insurance market, and it sent that my letter to Senator KEN- gram for all individuals leaving insured would do so without imposing new NEDY on the Oregon reform proposal group coverage that allows them to remain mandates on employers or creating and his reply to me be printed in the in a pool with employed persons remaining new Government bureaucracies. It in the entire insured market. For those indi- would give workers the flexibility to RECORD. viduals leaving self-insured coverage, access There being no objection, the letters to an open high risk pool meeting the stand- change jobs without losing their health were ordered to be printed in the ards of the bill is guaranteed. insurance coverage. It would protect RECORD, as follows: Yours sincerely, families from losing their health insur- U.S. SENATE, EDWARD M. KENNEDY. ance if a family member loses his or Washington, DC, March 29, 1996. Mr. WYDEN. Mr. President, I yield her job. Hon. EDWARD M. KENNEDY, the floor. Mr. President, according to the Gen- Ranking Member, Committee on Labor and Mr. DEWINE addressed the Chair. eral Accounting Office, the bill would Human Resources, Russell Senate Office The PRESIDING OFFICER. The Sen- provide health care security to 25 mil- Building, Washington, DC. ator from Ohio. lion additional Americans. This is DEAR SENATOR KENNEDY: The development Mr. DEWINE. Mr. President, I would genuinely a far-reaching health reform of S. 1028, the ‘‘Health Insurance Reform Act like to say a few words in support of that I believe does in fact preserve the of 1995,’’ certainly is one of the current Con- gress’ most important advances in assuring the pending legislation. bipartisan support it is receiving in the access to quality health care. I look forward Our distinguished colleagues, the Chamber. I am glad today to be able to to the debate of this significant legislation Senator from Kansas and the Senator add my voice in support of this legisla- on the floor of the Senate. from Massachusetts, I believe, have tion. I am, however, concerned that our efforts crafted a sensible piece of legislation Let me, if I could, turn very, very to extend health insurance coverage and end that really represents the broadest pos- briefly to another issue, and I had in- ‘‘job-lock’’ not impede significant advances sible consensus on health reform that tended to speak and still intend to made by individual states in the health in- we can achieve at this point. speak sometime today or tomorrow or surance reform arena. One such effort is Back in 1994 when I was a candidate early next week at length on this, but coming to culmination in my home state of Oregon, and I write to you today to inquire for the U.S. Senate, the President was I wish to take a minute right now to if the Oregon reform proposal likely would trying to get Congress to enact a call my colleagues’ attention to this be subject to a favorable exemption ruling by health reform bill. That was a health and also the American people. the Secretary under the language of Section reform bill that went substantially fur- Next week is National Organ Donor 112 of your legislation. The section’s flexibil- ther than the national consensus on Awareness Week. I again will speak at ity in this regard will be an important ele- health care would allow. For better or length about this in the future. But the ment in my consideration of the overall leg- for worse, the American people made a basic facts are that we lose people islation. decision. They made a decision and de- every day in this country, 7, 8, 9, 10 Embodied by Oregon State Senate Bill 152, our group-to-individual portability plan was termined that they would not support a people, people who medical science, designed by a working group of state insur- bill that threatened a large expansion medical capabilities could save, but we ance officials, insurance carrier representa- of Federal involvement in health care. lose these people, their families lose tives and health insurance agents. This en- They made the decision that that sim- them, because they are on a waiting acted state law will extend affordable health ply was not good. list, a waiting list to get an organ insurance coverage by mandating that all During that debate when I was run- donor transplant. state-regulated group insurance carriers ning for the Senate, I said that the fail- They die because, frankly, there sim- offer portability plans to persons leaving ure to enact the President’s plan did ply are not enough organ donations groups after having had six months of con- not mean that we would have to give made in this country every day. The tinuous insurance coverage. This plan also demands that carriers offer up on health care reform. And we reason that there are not enough is a choice between both a moderately priced should not. In fact, what we should do, very simple. It is that too many fami- insurance package based on the average of as I said at the time we should do, is to lies, when faced with life’s most hor- the State’s most popular HMO plans, and a try to get a consensus, that there were rible tragedy, and that is the loss of a lower-priced, catastrophic coverage option. things that we could agree on, there loved one, do not really know what to Finally, group carriers that have individ- were things that Democrats and Re- do when they are asked whether or not ual products can offer them as their port- publicans could agree on, liberals and they will donate their loved one’s ability products as long as they offer both conservatives. We ought to agree on organ or organs. the prevailing (HMO average-best) and low- I encourage my colleagues and fami- cost options. those things. We ought to put that into The Oregon insurance reform program, due legislation, and we ought to pass it. I lies across the country to talk about to go into effect October 1, 1996, with port- think what we have in front of us today this issue because I am convinced that ability plans on the market by January 1, is just that. It is that bipartisan con- the vast majority of American people 1997, has other encouraging elements as well. sensus. It is a consensus of what we can are caring, loving people who want to For your information, I attach a copy of a agree on. help other people when they can and March 22, 1996, letter to me by two members There was, going back 2 years ago, a who, if they think about this for any of the working group which produced the broad agreement on several aspects of period of time at all, will conclude that plan. Should you have any questions regard- this health care reform—disagreement if, heaven forbid, something traumatic ing this letter, please don’t hesitate to contact me, or Steve Jenning of my staff at 224– on some areas but agreement on oth- would happen to them and they would 1084. ers. One of the areas where there clear- be killed, they would want their organs Thank you for your consideration of this ly was agreement was on the problem to be donated to somebody else, so matter. I look forward to working with you of portability, or the challenge of port- somebody else could see, so somebody S3532 CONGRESSIONAL RECORD — SENATE April 18, 1996 else could live, so somebody else could to address health care for two reasons. This bill addresses that issue of ac- carry on a productive life. One, to provide broader access to cess—not for everybody, but it does it As I said, I will speak more about health care. And two, to try to do in a way that pulls together those this at length later. I see my colleague something about the escalating costs things that we agree on. This includes from North Dakota is present and of health care. dealing with the limits on exclusions ready to speak. I am not going to hold I happen to think the proposal that for preexisting conditions. This bill is a him up at this point. But I just again he made was too bureaucratic. It would very modest approach that solves part call my colleagues’ attention to this. have not advanced the solution in both of that problem, a major part of that National Organ Donor Awareness Week of those areas that I think was appro- problem, for many of the American is next week. It is one of the rare times priate. But that does not mean we do people. in public office or in public debate in not have problems in both areas that A whole lot of people are locked in this country where, when we talk we must address. This piece of legisla- their jobs because of this issue of pre- about an issue, we can help solve it. It tion addresses one of those. It address- existing conditions. They are unable to does not cost any money to do it. It is es the issue of access to health care. move, because if they move they can- just a question of getting people to be Again, this is exactly what we should not carry that insurance with them more aware of the tragedy that occurs be doing when we have a disagreement, and no other insurance carrier will every single day to someone who could a substantial disagreement about a pick them up because they have had a be saved, when someone who could re- major policy issue. What we ought to preexisting condition. This piece of leg- main with their family and be produc- do in those instances is find where is islation deals with that in the right tive and live a good life dies because there an area of agreement, and that is way. other individuals, not knowing really what happened with this legislation. This legislation says to insurance what to do, make a decision not to This legislation addresses the issue of companies: if someone has been a good allow their loved one’s organs to be do- access. It brings together those varying customer of yours, buying your policy nated. viewpoints in the Senate into one bill for years, you cannot drop coverage So, Mr. President, I appreciate the on which we can all agree that, yes, simply because that person gets sick. Chair’s indulgence and my colleagues’ this advances the issue of access to This piece of legislation also addresses indulgence, and I will today or tomor- health care. That is why I am pleased the issue of portability, and does it in row be talking further at length about to have been a cosponsor of the legisla- exactly the right way. this important issue. tion and am pleased today to speak in So I am pleased that we are here on I thank the Chair. favor of it. the floor with this piece of legislation. The health care system in this coun- Mrs. KASSEBAUM. Mr. President, I It is exactly the kind of thing we ought try is a remarkable system. You do not should like to recognize first the valu- to do. Instead of continually talking see very many Americans who get sick able work that the Senator from Ohio about what we cannot agree on, we and decide to get on an airplane and go has done on the Labor and Human Re- should find the areas where we can to some other country for health care. sources Committee. Senator DEWINE agree to begin moving toward a solu- That would be a very unusual thing to has worked hard to help us get this put tion to a problem. That is exactly what see. What you see instead is people get- together. He was worked hard on all ting on an airplane or getting on some this piece of legislation does. the other health issues that have come Let me end where I began, by com- other means of transportation and before the committee, and as he men- plimenting the Senator from Kansas, coming to America to get health care tioned is a major leader along with Senator KASSEBAUM. This body will be because we have a wonderful system of Senator FRIST on the organ donation diminished by your leaving at the end health care. issue. So I appreciate his assistance But we have two problems. One, not of this year, but you will have left your with the legislation. everyone has access to it, and, two, its mark here in many, many ways. You Mr. DORGAN addressed the Chair. cost is escalating. It has diminished a and Senator KENNEDY will have left an The PRESIDING OFFICER. The Sen- little bit in recent years, but it has indelible mark, if we can pass this leg- ator from North Dakota. been escalating double and triple the islation, by advancing this issue of ac- Mr. DORGAN. Mr. President, I too rate of inflation every year for many cess to a wonderful health care system commend the Senator from Ohio. I years, and that prices health care out to millions and millions of additional know he has done a great deal of work of the reach of too many of our Amer- Americans who ought not be left out of on the issue of organ donation—work ican citizens. the system. that I support very strongly. I hope we All of us understand that our health So I compliment Senator KASSEBAUM will advance public understanding and care system is a system that offers and Senator KENNEDY for their diligent knowledge about organ donation, not miracles to many Americans—new work and I hope we can do exactly the only in this legislation but in other hips, new knees, cataract surgery, even same thing on other issues in the com- pieces of legislation as we move for- heart transplants. The list is endless. ing weeks. If we disagree, let us figure ward. I would suggest that anyone who out where we disagree, but then let us I did want to say as I begin—and I wonders about where all of this comes find the center. We ought to come to will be very brief since there are others from might go out to the National In- the floor to move toward solving prob- in the Chamber who wish to speak—I stitutes of Health. Take a look at lems, rather than being so intractable cannot think of two more able Sen- something they have out there called in our own camps and deciding we sim- ators to bring a piece of legislation the ‘‘Healing Garden,’’ where they do ply cannot solve problems. like this to the floor than Senator research on a range of plants and all I look forward to casting a final vote, KASSEBAUM and Senator KENNEDY. This kinds of other things that produce all an aye vote on this legislation. I hope Senate will be diminished when Sen- of these wonderful new medicines. it does not get too loaded down as it ator KASSEBAUM leaves, but she has They do research on a whole range of moves along. I hope the Senate will act done outstanding work on this legisla- health care issues and develop new sur- with some haste to try to move this to tion and she and Senator KENNEDY de- gical techniques and new approaches. a conference. serves to be complimented for bringing We have invested a substantial I yield the floor. this to the floor. In my judgment, the amount of money that has produced The PRESIDING OFFICER (Mr. approach we’ve taken to this legisla- enormous rewards for our society. And CAMPBELL). The Senator from Idaho, tion—finding the issues that we all with all of those miracles and all of [Mr. CRAIG], is recognized. agree on—is the kind of thing we this wonderful medicine, the two re- Mr. CRAIG. Mr. President, I come to should be doing routinely. I did not maining questions are, one, how do we the floor this afternoon in support of support the Clinton health care plan. I provide to people more access to this the intent of S. 1028. Let me join my did not cosponsor the Clinton health wonderful system, and, two, how do we other colleagues in thanking the Sen- care plan because I believed then that bring the cost down so it does not rise ator from Kansas for her work in get- it was too bureaucratic. But he was out of the reach of too many American ting this kind of health care reform asking the right questions. We needed people? legislation to the floor, and also the April 18, 1996 CONGRESSIONAL RECORD — SENATE S3533 Senator from Massachusetts for the be extremely cautious and ensure that knows about and likes. They are often work that he has done in this area. there is a minimal impact on the cost, coupled with a catastrophic health care Health care in some form has been on or the increased costs of insurance, es- policy, but some models have been con- the congressional agenda for several pecially in the individual market. ducted in combination with managed years. It is an important issue, and I One thing we can do is to address the care plans. A limited amount can be hope by the end of this process we will issue of cost in this bill. A number of deposited annually, usually equaling have a health care insurance reform valuable provisions for addressing the amount of the high deductible. At proposal that will make health care in- these consumer concerns were included the end of the year, the unused amount surance more accessible and more af- in the Balanced Budget Act. However, is rolled into the next year, allowing fordable. that was vetoed by the President, so for savings to accrue. The purpose of S. 1028, the Health In- they are not yet available to cor- If an individual does experience a surance Reform Act of 1995, is to in- respond with this legislation when it catastrophic illness, savings can be crease access to health care insurance, becomes law. used to meet the annual deductible, as improve the portability of benefits, Therefore, Mr. President, while I well as cover any copayment that may give people greater security, and in- agree on the intent of S. 1028, to im- be included as part of the catastrophic crease the purchasing power of individ- prove access, I do have concern about plan. uals as well as small employers. The the issue, of affordability. In order to MSA’s are portable because they be- bill does this through a series of insur- fully address access to health care cov- long to the individual. If we are re- ance market reforms. For example, the erage we must look at affordability. forming health care insurance, why do bill would reduce the duration of exclu- While we create potential flexibility in we not create a vehicle that provides sions for preexisting conditions by the marketplace, if we drive the cost increased opportunity for individuals crediting enrollees for maintaining beyond the reach of the individual, the to possess health insurance? continuous coverage through a pre- family or the employer, then what Regardless of your employment sta- vious employer. Another important have we solved? What old problems tus, your MSA’s stay with you. So, the component would be the portability of have we only changed into new ones? job-lock question is less likely to coverage from a group plan into the in- In order to fully address access to occur. In addition, savings you accrue dividual insurance market. health care coverage, we must look at can then be taken with you and used to The bill also includes a proposal that the whole issue of affordability. There pay for insurance premiums if you are would create new State-based health are several key amendments that I between jobs. If you want to start your insurance purchasing cooperatives, or think are going to be offered by the own business and step away from an HIPC’s, based on a program that was leader which will help us a great deal employer who provides insurance, the included in the Clinton-Mitchell health in solving this potential problem, such MSA stays with you. You can buy your care reform bill. These HIPC’s are in- as increasing tax deductions and imple- own insurance with it. tended to give small businesses and in- menting medical savings accounts, or It certainly creates tremendous dividuals greater purchasing power in MSA’s, as the public has grown to choice and flexibility for the individual negotiating more favorable rates. know them. MSA’s should be a part of and families, and that is what we are Many Idahoans complain that they this bill. That amendment will be of- concerned about here, the freedom of are locked into their current jobs be- fered. I certainly hope the Senate will the individual and families to make cause they fear losing their health care respond as they should to the question sure they can provide for themselves. insurance. Several of my colleagues of affordability, rounding out this leg- Health care insurance coverage and have been on the floor in the last few islation by addressing the cost compo- MSA’s can play a tremendous role in hours, giving examples of this kind of nent. doing just that. very real problem that Americans face. Title III of this legislation, S. 1028, Because MSA’s have a higher deduct- In some instances, entrepreneurs avoid includes a sense of the committee lan- ible and lower premiums, they are a starting their own businesses because guage that MSA’s should be enacted. If workable alternative for small employ- they are unsure that they would be they should be enacted—and that is ers who currently cannot afford to pro- able to provide health care insurance what the committee says and what the vide insurance as a benefit. So they for their families in the way that they legislation says—then why do we not even offer the small employer greater were covered under their current em- do it? Let me read what the sense of opportunity to provide health insur- ployer. This is a problem that has ex- the committee is. ance benefits to his or her employees. isted in this country in an increasing It is the sense of the committee on Labor A catastrophic policy and a deposit way over the last decade, and it simply and Human Resources of the Senate that the in an MSA for the annual deductible needs to get corrected. This legislation establishment of medical savings accounts, are lower in cost than any other type offers that correction. including those defined in . . . the Public of insurance coverage. In addition to Another problem commonly raised is Health Service Act . . . should be encouraged as part of any health insurance reform legis- the lowering of cost to the employer that individuals who have had major lation passed by the Senate, through the use providing insurance, MSA’s provide the illnesses or preexisting conditions can- of tax incentives relating to contributions beneficiary greater flexibility in how not obtain coverage if they change to, the income growth of, and the qualified those health care dollars are spent and jobs. In other words, once you have a use of, such accounts. limit out-of-pocket exposure. medical record, insurance companies, That is what the legislation says. Finally, because savings can accrue, by that record, can disallow you cov- That is what the law would say. But, if this is an opportunity to save over an erage for that problem under a new in- we do not add an amendment to it, it is individual’s lifetime for those hefty, surance policy. These kinds of fears are fine rhetoric but it does not address late-in-life health care costs such as real. Real life examples are given, and the needs of the American people. And long-term care. That is real health care they are faced by individuals and fami- it does not, in my opinion, create the reform. That is real health care insur- lies every day. The security issue I component of affordability that this ance reform. mentioned, as part of the intent of this Senate must be responsive to, if we are The cost of long-term care is a big bill, is a very important component of to bring about this kind of insurance problem that Senators have tried to health care insurance reform. reform. deal with on this floor and that cer- We must all be mindful that health I said the language is supportive, but tainly the seniors of our country have insurance reform will have an impact it does not change anything. Instead of faced themselves for a long time. Many on the marketplace. These kinds of re- using this bill to speak to the issue, we of us at our age in life, who have par- forms that are being proposed in this should be using it as an opportunity to ents who are nearing a time when they legislation are not without cost. As we give consumers this valuable tool to fi- may need long-term care, all of a sud- cause the insurance market to change, nance health care costs. den begin to factor some of those finan- the marketplace will price itself dif- MSA’s work much like individual re- cial costs into our own budget, if we ferently. In our effort to improve ac- tirement accounts, something that the are capable of doing so, in caring for cess to health care coverage we need to consuming public of this country the elderly of our family. S3534 CONGRESSIONAL RECORD — SENATE April 18, 1996 MSA’s could help solve this problem vidual or family seeking regular, preventive nesses, such as diabetes. A few years in a generational way if this Senate care services. With Medical Care Savings Ac- ago, several individuals who live with and this Congress would simply quit counts, however, that same individual or diabetes complained to me that many family would have this critical money in talking about the value of them and their account to pay for the needed services. of the health care costs they incurred allow them to become available to all We feel that, while the Medical Care Sav- are not covered by insurance. For ex- Americans. ings Account concept does not provide the ample, the glucose testing strips, the Mr. President, I have been frustrated total solution to the crisis in health care ac- syringes for insulin, dieticians or nu- by some of the references about MSA’s, cess, it does begin to address the critical as- tritional services, and the pharma- that they are an extreme idea that will pects of increasing costs and utilization by ceuticals are not always fully covered help only the healthy and the wealthy. consumers. We hope that you will join us as cosponsors by insurance but are necessary in order It could not be further from the truth. of this legislation. If you have any questions to avoid more expensive, catastrophic Rather, I argue that MSA’s are a com- please contact us or have your staff contact illnesses. monsense response to the current prob- Laird Burnett of Senator Breaux’s staff. With a medical savings account, a di- lems of our health care system, incor- Sincerely, abetic could pay for these expenses porating individual choice and respon- JOHN BREAUX. from his or her MSA. In addition, if sibility. The American people under- DAVID BOREN. they did experience a catastrophic ill- stand that and I think the American TOM DASCHLE. ness, they would be covered once their RICHARD LUGAR. people are ready to use this health care high deductible was met. DAN COATS. Mr. President, some will claim that insurance tool in a way that works to SAM NUNN. MSA’s will cause people to forgo need- their benefit. Mr. CRAIG. Mr. President, this letter The history of this issue has been one ed health care treatment. This is sim- outlines many of the beneficial aspects ply not the case. I must say, while that of bipartisan support. In both the of MSA’s, or medical savings accounts, allegation is made, there is no proof House of Representatives and the Sen- in addition. I found it quite interesting that MSA’s would have that effect. Un- ate, MSA bills have been cosponsored that as part of his pension simplifica- like most health care coverage plans, and supported by Republicans and tion proposal, President Clinton would MSA’s give consumers an incentive to Democrats alike. allow withdrawals from individual re- stay healthy because the money you I have a copy of an old ‘‘Dear Col- tirement accounts for catastrophic league’’ letter on a bipartisan bill, S. health care insurance needs. That is a spend is your own. In addition, they 2873, the Medical Cost Containment great idea. But that is an MSA. Wheth- provide access to funds for preventive Act of 1992. Mr. President, I ask unani- er Bill Clinton knew it or not, by his health care services which may not be mous consent that the letter be printed endorsement of this approach, he has, covered by insurance plans. Let me respond to the other half of in the RECORD. in effect, endorsed medical savings ac- the argument that MSA’s are just an- There being no objection, the letter counts, and I applaud him for doing so. was ordered to be printed in the Since the healthy-and-wealthy asser- other tax break for the rich. Working RECORD, as follows: tions have been made, I want to take a families will benefit greatly from U.S. SENATE, moment to address this issue, because MSA’s. The United Mine Workers of Washington, DC, September 8, 1992. it is phony, phony, phony. America have a provision similar to DEAR COLLEAGUE: The United States is Anyone who has experienced chronic MSA’s in their current contracts. Mine faced with a crisis in health care on two health problems or a catastrophic ill- workers and other working families, in fronts: access and cost control. So far, most ness realizes how difficult it is to cover my opinion, do not meet the definition of the proposals before Congress attempt to of those who claim this is just for the deal with access but do not adequately ad- out-of-pocket expenses. If that health dress the more important factor—cost con- care problem is not covered by insur- rich. I think those are hard-working trol. We have introduced legislation that ance, you get no assistance in helping people who want and need good health will begin to get medical spending under finance the cost incurred. We have peo- care coverage for their families. That control by giving individual consumers a ple who have minimal coverage and are is exactly why the United Mine Work- larger stake in spending decisions. making limited incomes, and they can- ers Union negotiated it with their em- We have introduced a bill, the Medical not afford the out-of-pocket costs to ployers, because it was something the Cost Containment Act of 1992 (S. 2873), which get across the deductible threshold to employers could afford and it gave would allow employers to provide their em- those working men and women greater ployees with an annual allowance in a ‘‘Med- get the benefits of their insurance, in ical Care Savings Account’’ to pay for rou- many instances. For families and indi- opportunities for coverage. tine health care needs. This allowance would viduals on fixed incomes, this is espe- I must say I grow saddened by the not be subject to income tax if used for cially problematic. kind of rich demagoguery that is qualified medical expenses. Any money not I had a constituent who expressed to played on the floor of this Senate on a spent out of a given year’s allowance could me a frustration that even though she variety of issues when we try to expand be kept by the employee in an account for had great health care insurance, it did the base and expand the opportunity future medical needs during times of unem- not provide comprehensive dental ben- for all Americans by giving tax incen- ployment or for long term care. In order to efits. She needed to get a tooth capped, tives or tax breaks that allow them to protect employees and their families from do certain things beneficial to their catastrophic health care expenses above the which would cost her at least $500 out amount in the Medical Care Savings Ac- of pocket. Her alternative was that she well-being. count, an employer would be required to pur- should live with the discomfort until Mr. President, regardless of income, chase a high-deductible catastrophic insur- more serious problems occurred with if you get an MSA and catastrophic ance policy. the tooth that would be covered by her plan from your employer, your em- Unlike many standard third party health insurance. ployer will be making the same con- care coverage plans, Medical Care Savings Her frustration was that this was the tribution to your account. In addition, Accounts would give consumers an incentive only health care problem she had expe- MSA catastrophic plans are a less ex- to monitor spending carefully because to do rienced in the last 2 years and the only pensive option for an employer, espe- otherwise would be wasting their ‘‘own’’ money. That is, money that they would oth- cost incurred other than her annual cially small businesses, providing an- erwise be able to save in their account for fu- physical and dental checkup. She had other affordable option for employers ture needs. not met her deductible, but would have who currently do not provide insur- Once a Medical Care Savings Account is es- to find $500 in her monthly budget to ance. That is what insurance reform tablished for an employee, it is fully port- pay for capping a tooth or go take out should all be about; as I said, to create able. Money in the account can be used to a loan, if she could qualify, to cap a affordability and to expand the oppor- continue insurance while an employee is be- tooth and then spread that cost over tunity for access to this kind of cov- tween jobs or on strike. Recent studies show erage. that at least 50% of the uninsured are unin- several months. If my constituent had sured for four months or less. an MSA, the $500 would have been cov- Finally, MSA’s give lower income in- Today, even commonly required small dol- ered by funds in her account. dividuals an account to draw from for lar deductibles (typically $250 to $500) create Medical savings accounts would also primary care and other preventive a hardship for the financially stressed indi- benefit individuals with chronic ill- services that otherwise would be paid April 18, 1996 CONGRESSIONAL RECORD — SENATE S3535 out of pocket. The out-of-pocket issue Early reports and reactions to Idaho’s So under the Idaho medical savings to those less fortunate in our country program have been very, very favor- account plan in Ada County, the tax- is a very real issue, Mr. President. In able. Ada County, the largest metro- payers of that county and Gary’s fam- other words, MSA’s eliminate the up- politan county in my State, was the ily are realizing real benefits. Mr. front deductible required with most in- first major employer in Idaho to offer President, why cannot we be smart surance policies and provide, in es- the plan. It is saving the county a lot enough to provide that to all Ameri- sence, by this very action, first-dollar of money and providing greater flexi- cans—to give them at least the option, coverage. bility for county employees. Passing a the choice? That is real insurance re- For example, with a traditional em- Federal MSA plan will enhance what is form. That is real flexibility. That is ployer-provided insurance policy, a de- already a beneficial program in my real portability. MSA’s are an idea ductible must be reached before the in- home State of Idaho. It will allow our whose time has come. We ought to do surance policy kicks in. A low-income MSA program to be even more effec- it. Today, though, in this bill we only parent with a sick child has to find tively used across the State. In short, offer the rhetoric. I hope the amend- funding out of his or her monthly budg- Mr. President, passing a federal MSA ment that will be offered by the major- et to pay for the doctor or for any pre- plan will enhance what is already a ity leader will pass and become a part scription. With an MSA, the worry is beneficial program in Idaho. of this important law. gone because the money has been Let me tell you about one of our Let me say in closing that S. 1028 is placed by the employer in the MSA. county commissioners in Idaho who a good bill. What I have talked about is Furthermore, if the problem is cata- has been a great advocate of medical making it a better bill, a more com- strophic, once the deductible is met savings accounts and was instrumental plete reform of the health care system. from funds in the MSA account, the in bringing that county on line with an Not the adjustments around the edges, catastrophic policy provides the cov- MSA policy once the State legislature but major reform in a way that fits 21st erage. passed the law. Gary Glenn, an Ada century Americans. It gives them the In most cases, out-of-pocket exposure County commissioner, participates in freedom of choice, access, the individ- for individuals with MSA’s is less than the optional MSA plan, as do about 20 ual decisionmaking authority, the buy- with other types of insurance coverage percent of the Ada County employees. ing power they need, and it is effective policies. In fact, low-income families Ada County’s medical savings ac- for all levels of our society, the poor have an opportunity to benefit from count plan saves taxpayers’ dollars, and the rich alike. That is what it the savings that would accrue in an maximizes patients’ choices, and re- should be about. MSA over time. wards responsible health care consump- Mr. President, I ask unanimous con- Consider the following: Janet earns tion. The benefits to Gary’s six-mem- sent that an editorial from the Idaho $13,000 a year. She is 20 years old and ber family are illustrated in these ex- Statesman be printed in the RECORD. keeps her MSA through to age 60. If her amples. The county’s old indemnity The headline says ‘‘Congress Can Fol- employer deposits $1,800 a year in her program provided Gary’s family typical low County Lead on Medical Savings medical savings account and she re- coverage, $100 per person deductible, Accounts.’’ mains in good health and spends an av- with a maximum of $300 per family, This editorial urges this Congress, erage of $250 a year from her MSA, by plus a 20-percent copay. The monthly this Senate, and the President himself the age of 60, assuming an 8 percent in- premium was $494, of which Gary and to become modern, to become thinkers terest rate per year, Janet would have his family paid $158 a month. and not prohibitors, and add to this $433,661 in her medical savings account. Under the new MSA, Gary’s family major reform package the concept of Now, that is an optimum scenario. has catastrophic coverage with a $2,000 medical savings accounts. I hope we Let me give a more likely one. Under per person deductible—the maximum can accomplish that. the same scenario, with Janet experi- per family, though, is $3,000—and 100 There being no objection, the article encing more health problems, and let percent coverage or payment above was ordered to be printed in the us say she is spending $1,000 a year that deductible. The new monthly pre- RECORD, as follows: from her medical savings account for mium is $194. Gary still pays $158, but [From the Idaho Statesman, Apr. 1, 1996] health care, she would still accrue the county pays $36 per month instead CONGRESS CAN FOLLOW COUNTY LEAD ON $223,000-plus in her medical savings ac- of $336.00 for the old indemnity plan. MEDICAL SAVINGS ACCOUNT count by the time she is 60. That is the This is a dramatic reduction in the Ada County is leading the way in health- opportunity that exists today if this overall cost of insurance on a per insurance reform by its use of medical sav- Senate and this Congress will awaken month basis. This provides a savings of ings accounts. Too bad many Democrats in to what the American consuming pub- $3,600 per year. Out of the savings, the Congress and President Clinton are among lic wants. county will deposit $2,100 in Gary those most afraid to follow. Under a traditional fee-for-service Glenn’s medical savings account. The U.S. House endorsed medical savings HMO–PPO program, Janet would have Under the old indemnity plan, Gary’s accounts Thursday as part of its legislative health care coverage as long as she family faced a much higher financial package on health care, but the outcome in stayed with her employer. She would risk. In the worst case, they would be the Senate is less certain, especially with Clinton’s threat of a veto looming over the have to pay her annual deductible out forced to pay $5,100 in deductibles and whole bill. of pocket and a copayment for service copays out of pocket and after taxes. The nation loses if medical savings ac- once she met that deductible. At age Under the medical savings account, counts are stripped out of the final legisla- 60, if she retired, she would have no with a $3,000 deductible, no copayment, tion in a compromise. health care insurance and no medical and $2,100 in his medical savings ac- As local experience shows, they can be an savings account. That is the current count, the most they would have to effective way to save insurance expenses and law. Even this legislation does not spend out of pocket in 1 year would be give consumers more control over decisions really address that problem upon re- $900. That is important to remember. about their own health care. Instead of traditional and expensive tirement, for those individuals who are Instead of $5,100 out of pocket, they health-insurance policies, Ada County buys not yet 65. Medical savings accounts would spend $900. And the county is only catastrophic policies for the 20 percent do. saving literally thousands of dollars as of its work force signed up for the program. So, let us change S. 1028 from rhet- the employer. The savings are put into the accounts of par- oric to reality by amending it and put- In addition, by reducing Gary’s out- ticipating individuals and can be used for ting medical savings accounts in it. of-pocket family risk by 82 percent and routine medical expenses. While Janet may not be a real person, providing them with maximum flexibil- The measures in Congress works about the there are plenty of real Janets waiting ity in how they spend their health care same. dollars, any portion of the $2,100 de- Individuals could make tax-deductible con- to benefit from medical savings ac- tributions of up to $2,000 (or $4,000 for fami- counts. posit in their account—Gary Glenn’s lies) in a medical savings account and would Mr. President, my home State of account now—is left to spend on health be required to purchase a high-deductible Idaho was one of the first States to im- care, state income tax-free, or to carry health insurance policy for catastrophic ill- plement a statewide MSA program. forward and earn interest. nesses. S3536 CONGRESSIONAL RECORD — SENATE April 18, 1996 The system saves money because workers Even President Clinton, in a dra- ture. I think that is very important. have an incentive to shop around for medical matic departure from his earlier pro- Let us consider those items separately care. Bargain hunters can motivate doctors posal for a Government-run health care that might serve to bring this down and hospitals to compete, which in turn in- system, has now embraced health in- and view them at another time in such jects needed market forces into the health surance reforms that are remarkably industry. a way that we do not jeopardize the en- By eliminating the middle man—insurance similar to those which President actment of the pending bill. companies—the accounts allow people more George Bush proposed back in 1992. I think what we need, sometimes, is direct control of how, when and where they Whatever one might be attempted to an old-fashioned trait known as self-re- spend their medical dollars. say about the irony of all of that, it straint. Perhaps we could even adopt Sadly the issue of medical savings account clearly indicates that we now have a self-restraint as the theme for the next has become embroiled in partisan politics in unique opportunity to correct the prob- several hours as we consider the bill. It Congress. But reforming health care and giv- lems that pose the most serious threat would surely be an appropriate manner ing consumers more options should not be a to the health coverage of millions of partisan issue. in which to recognize Senator KASSE- It is simply a matter of giving consumers Americans. BAUM’s tremendous leadership on this greater clout as the nation seeks an im- Though each of us can think of var- issue, and to preserve a thoughtful bill proved health-care industry. ious ways in which we would like to ex- that will provide important health in- Mr. KENNEDY. Mr. President, just pand upon the pending legislation, the surance protections to millions of for the information of the Senators, we reality is that the bipartisan appeal of Americans. have been on the legislation since 9:30 the bill will be lost if we go too far in Finally, I note the senior Senator this morning, 5 hours, and we have not amending. I intend to be very cautious from North Dakota is not on the floor. had amendments. In the earlier part of about amendments that are offered for I hope he will have an opportunity to the Senate’s consideration, even in the day, I think both Senator KASSE- address my remarks. I admire him. He cases where I might support the BAUM and I were urging our colleagues is a friend. We have worked together. amendment on its merits. I say this be- to come over and make comments He has come forward and said that we cause I would rather pass legislation about it. We have been blessed with so should put aside our agendas, put aside that actually becomes law, even if it is many bipartisan comments on the leg- our own causes, work in harmony and not as far reaching and perfect as I islation. concert. I hear that, yet I also hear would like it to be, than to make a We are expecting an amendment by each and almost every day my good legal statement with legislation that the majority leader momentarily to be friend from North Dakota stirring up ends up in the great scrap heap of un- put down, also a unanimous-consent some issue in some way, usually with a finished business—and there will be agreement in the process of being cir- partisan twist. I think that if we are plenty of that in this session of Con- culated so we might be able to move going to do that, just note the pending gress, things that stood on principle toward the consideration, or we are business of the Senate on the calendar. and could not get into law because you going to find a situation as the evening The pending business of the Senate is did not have the votes to get them into time comes that Members will say, the illegal immigration bill. It is not law. Unfinished business—that stack. ‘‘Why can we not attend to some of our When I hold town meetings in Wyo- moving simply because the Senator other responsibilities in the evening?’’ ming—I do not know how many of us from North Dakota wishes to place an We want to try and accommodate ev- still do that; I do—the message I al- amendment on it with regard to the eryone, but we are open for business. ways come away with is that people balanced budget and Social Security. But the first business, we had hoped, are thirsty for action. They are not in- I am not speaking in a partisan way. would be the majority leader’s amend- terested in excuses or rhetoric or polit- I have been here before. I remember my ment, and then to have a good debate ical maneuvers from either party. No dear friend Senator John Heinz placed on that. Part of the debate will be on matter how clever or imaginative we amendments on illegal immigration the medical savings account, and we are in explaining ourselves, they just bills. Even my ranking member has will address that issue in a more com- do not buy it. They have had a bellyful done such heinous activity from time plete way at that time. of petty partisan squabbles. What they to time, the Senator from Massachu- I just wanted to at least give some long for is to see a Congress identify setts. I have seen him do that. I am not indication to our colleagues about areas of agreement, as Senators KASSE- talking about partisanship. If we are where we are in the course of the de- BAUM and KENNEDY have done with this going to do this—we have a bill that is bate. legislation, and then act in the best in- stalled right now. We will see how long Mr. SIMPSON. Mr. President, I cer- terests of the American people, with- it will stall out. There are three tainly will not take 10 minutes. out agonizing who will win or who will amendments ready to be voted upon. I want to add my voice to the biparti- lose, who will be the top dog, who will Where it is all held up, that bill is held san chorus of support for S. 1028, the be the underdog when it is finished, or up for a single particular reason: Be- Health Insurance Reform Act. I am politically, how to simply portray cause of the Senator from North Da- proud to say I was an early supporter Members of the other party in the kota, because of an eternal amendment of this one. I signed on as a cosponsor worst possible light. that he has with regard to Social Secu- back on July 17, 1995, just 4 days after The pending bill would allow us to do rity, saying that no balanced budget it was introduced by Senator KASSE- something beneficial, I think, for mil- can ever be done, and we do not do any- BAUM. lions of Americans who are at most thing with Social Security, which is an I commend her and I commend Sen- risk of losing their health coverage. extraordinary thing in itself because ator KENNEDY for their determined ef- The General Accounting Office reports Social Security is going broke. The forts to advance this legislation as many as 21 million Americans would people that are telling us it is going through the Senate in the politically benefit if preexisting-condition exclu- broke are the trustees, the stewards of charged atmosphere of an election sions are waived for people who main- the system, who are saying the system year. She has created a bill that detain continuous health coverage, and, will go broke in the year 2020. serves the support of Republicans and furthermore, another 4 million would So how do you keep ducking it, un- Democrats alike. no longer experience job lock if port- less you are just carrying water for the The provisions of this bill have been ability of health insurance is insured. AARP and the Committee for the Pres- well covered—portability, guarantee- I believe it is time to move forward, ervation of Social Security and Medi- ing availability and renewability of adopt these protections to the extent care and other 800-pound gorillas in coverage, preexisting medical condi- that more sweeping measures are need- that particular Social Security debate. tions, and maintaining continuous ed to make health insurance more af- So I hope that we will proceed. I say health coverage, making it easier for fordable, more accessible. I will help to my friend from North Dakota—my small employers to voluntarily form with that. I surely agree that there is friend and sometimes adversary—heed purchasing cooperatives—and would much more we can do. thine own advice. I will be waiting. bring about changes that a vast major- I worked with Senators CHAFEE and Ms. MOSELEY-BRAUN addressed the ity of us agree upon. BREAUX on issues of a bipartisan na- Chair. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3537 The PRESIDING OFFICER. The Sen- in my opinion, is real reform, or a step This bill is about incremental re- ator from Illinois is recognized. in the right direction. form, but real reform nonetheless. It Ms. MOSELEY-BRAUN. Mr. Presi- In my own State of Illinois, over 2 will help virtually every working dent, about 2 years ago, this Congress million people are currently without American, as well as millions of Ameri- blocked attempts to act on comprehen- health insurance. This bill will make a cans who are temporarily out of the sive health care reform. While that critical difference in their lives and in work force. The bill itself will work be- year’s effort to achieve the major re- the lives of similarly situated people cause it is based on what is actually forms that are so needed and so long all across our Nation. going on in the world of real people overdue did not succeed, the problems Those who are now without insurance who need health care. that led the President to make that are far from the only beneficiaries of Mr. President, it is worth thinking a proposal have not disappeared. Far this legislation. For Americans who moment about those everyday reali- from it. might want to leave their jobs and ties. Statistics tell us that the average There are over 40 million Americans start their own businesses, or who American works at a job for about 41⁄2 without health insurance, and over 23 might have to leave their jobs because years. Over the course of a working ca- million of those are employed. Over a of corporate restructuring, but who reer, therefore, an average working million working Americans have lost might have a preexisting condition or American could hold seven or more health care coverage over the past 2 family medical history that would cur- jobs. That fact alone makes it all too years; 60 percent or more of all Ameri- rently make it difficult or impossible clear just how important it is for the cans currently worry about losing their for them to purchase an individual American people to have portable current health insurance coverage. health policy, this bill will make a health care coverage. That fact alone is Over the last few years, the rate of huge difference. It will guarantee their a good indication of how necessary it is private health care cost increases has ability to access health insurance. to end preexisting condition restric- dropped substantially, but there are This bill will also guarantee that tions that result in Americans having now increasing concerns about the small businesses with only a few em- to pay enormous sums for new health quality of care. Public health care ployees would not lose their group care policies, losing access to the one costs continue to increase at an health care coverage because one of the they had, or end up with no access to unsustainable rate. The case for re- people in the group develops a serious health insurance at all. Eighty-one million Americans have form, therefore, is perhaps even more health problem, as is the case now. preexisting conditions that could affect compelling now than it was 2 years ago Moreover, it will make health insur- their insurability. More than half of all when we first took up this issue. ance more affordable for those small American workers are enrolled in I am, therefore, proud to be one of groups, making it more likely that health insurance plans that impose the cosponsors of S. 1028, the Health In- more small businesses will provide some form of preexisting condition ex- surance Reform Act. It is not the com- health insurance benefits for their em- clusion. As I stated earlier, when you prehensive reform that we looked at to ployees. consider that most of us will change begin with, but it is a good and impor- Families with small children suffer- jobs several times in the course of a tant step in the right direction. Indeed, ing from a serious health problem will lifetime, the preexisting condition this may well be the first step on the no longer face the prospect of being un- problem affects virtually every Amer- road to reform that everyone can agree able to obtain health insurance if the ican family. child’s parent changes jobs, ensuring upon. I say to the Senator from Kansas Mr. President, every American wants and the Senator from Massachusetts that the child’s parents are not them- and needs health care security. It is as that this legislation is brilliant in its selves job locked because of the condi- important to them as retirement secu- simplicity, precisely because it cuts to tion of a member of the family. It is rity, an objective that should command the heart of the issues that concern the tough enough for families to deal with absolute consensus in this country. American people most about health serious health problems affecting one That vision and importance of retire- care coverage. of their children without having to face ment security led to the creation of So- Mr. President, in my view, there are the additional problem of losing access cial Security. That is why we provide four cornerstones of health care re- to health insurance if they are laid off tens of billions of dollars in annual tax form: Universal coverage, cost contain- or restructured out of their jobs or if incentives to companies to provide ment, maintaining the quality of care they want to change jobs for a new, pension plans for their workers. That is that we enjoy in this country, and re- perhaps better paying job that could why we support pension plans and retaining freedom of choice for the help their families in other ways. tirement programs and savings. American people in terms of health Women who have had breast cancer Health care security is no less essen- care delivery and the providers of or other diseases will no longer face tial to the American people than re- health care. higher premiums or loss of access to tirement security, not only because This bill moves us in the direction of health insurance altogether if they you cannot enjoy retirement if you are universal coverage by keeping people change jobs once this bill becomes law. in poor health, but because lack of ac- insured who might otherwise not be. If And young college graduates starting cess to affordable health care insurance there is any concern which everyone their first jobs would not be barred can literally mean bankruptcy. Being has regarding health insurance, it is from access to health insurance simply able to roll over your insurance cov- the trap of preexisting conditions. All because they suffer from a childhood erage, therefore, is just as important as too often, individuals find themselves ailment or a continuing disability from being able to roll over pension savings. excluded from coverage because of a an unfortunate accident. Maintaining health security deserves preexisting condition. In some cases, The Health Insurance Reform Act, the same level of attention that we the individuals themselves are not even therefore, represents a practical, car- give to retirement security, and meas- aware of the existence of that preexisting set of reforms to deal with the real ures that protect and enhance that ing condition. health care problems facing so many kind of health security deserve the By limiting exclusions for preexist- Americans, based on their everyday re- same kind of consensus support. ing conditions, by making health in- alities. It does not require Americans Mr. President, the really good news surance coverage available for small to radically change their behavior. It is that so many of our colleagues—57, businesses, and by ensuring portability does not add another bureaucracy or a in fact—and so many different organi- and ending job lock, this legislation huge new paperwork system. It does zations, and the President, support this deals with the concerns of millions of not require new Federal spending or legislation. The American people sup- Americans. It will help to make health new taxes. It does not create any new port this. Facing the fear of loss of insurance coverage more available for unfunded mandate on State or local health insurance, facing the preexist- millions of Americans and for small governments. At most, it will increase ing exclusion, those kinds of uncertain- businesses, help hold down health care the costs for private health insurance ties will be resolved when we take this costs for Americans, and further help companies by less than one-quarter of 1 step in the direction of incremental re- to expand access to health care. That, percent. form. S3538 CONGRESSIONAL RECORD — SENATE April 18, 1996 This legislation has been carefully I would like to begin by making a vate health insurance—many people worked out. It represents a real com- prediction. That prediction is, if we who are young and healthy and who are promise by both Democrats and Repub- adopt this bill as it is written, at the very modest users of health care as licans who support it. I congratulate end of the first full year of its imple- well as many people who are older and the chairman of the Labor and Human mentation, the cost of individual pri- less healthy and who are heavy users of Resources Committee, Senator KASSE- vate health insurance policies will rise health care are all buying insurance. BAUM, and the ranking Democratic by a minimum of 10 percent. I also be- Since many young people buy private member, Senator KENNEDY, for their lieve that this is a conservative esti- health insurance in order to lock in leadership and for all the hard work mate. guaranteed health coverage in the fu- they have put into bringing this bill to I believe that group policy rates will ture, to the degree that we mandate this point. As I said earlier, it really is go up because we are going to produce, that insurance companies sell people brilliant in its simplicity. I congratu- through this effort, several undesirable health insurance no matter what the late them for the bipartisan nature of effects. I want to go through them to state of their health is, we eliminate this debate so far and for the efforts in be absolutely sure that anybody who one of the primary reasons that young bringing us together as representatives really wants to understand can do so, people buy private health insurance. So of the American people, whatever po- and because I think they make the ar- the first negative impact of this bill is litical party, bringing us together to gument for medical savings accounts the creation of a new incentive for get this badly needed legislation and other reforms to try to offset the young people not to buy private health passed. basic cost increase that is going to reinsurance. If there is one matter that commands sult from this bill as it is currently Under this bill we also have some consensus, it is what this bill addresses written. rather extreme provisions. Before I because it addresses it so brilliantly, in First of all, this bill guarantees that mention one of them, let me say that I my opinion. if a person wants private health insur- understand, when you are talking I urge Senators on both sides of the ance, they can get it. There may be a about health care, that it is hard to aisle to put aside partisan differences, delay in the availability of benefits, de- have a rational debate because you are put aside other good ideas, and let us pending on where the person works and talking about sick people who we can when they have private health insur- move forward and pass this legislation all empathize with. But I think it is ance, but under this bill, anybody who so that it can be law and so we will important that we understand what we wants private health insurance at any have done the job the American people are doing if we are going to have a real time, under some circumstances, can have every right to expect that we will debate in the Senate because, after all, get it. Furthermore, when someone do. that is our job—to understand what the comes into a group plan, no matter Thank you very much. implications are and to try to see that what the state of their health, they I yield the floor. we make a rational decision. Mr. GRAMM addressed the Chair. cannot be charged more than any other Under this bill, not only will young member of that group and if somebody The PRESIDING OFFICER. The Sen- people with guaranteed ability at a leaves a private employer, they must ator from Texas, [Mr. GRAMM], is rec- later point to buy private health insur- be offered an individual insurance pol- ognized. ance have an incentive not to buy it Mr. GRAMM. Mr. President, I want icy. What is the result of this going to be? today, but in designating a series of to talk about the bill that is before the health benefits for which there is no Senate and the amendment that Sen- It seems to me there are going to be positive as well as negative results. waiting period, we create a special ator DOLE will offer on behalf of him- The entire debate so far has been about class of people who will buy health in- self and others. I will also cosponsor surance when they know they are that amendment. I want to try to ex- the positive result: 21 million people that do not have private health insur- going to need it, such as in a preg- plain why it is essential that we have ance will be able to get it, because we nancy, and then cancel the policy after measures which will promote efficiency are saying by law that insurance com- they receive the benefit—only to buy and cost savings if we are going to panies must sell it to them. An esti- another policy when they are ready to adopt this bill. mated 4 million people who are locked use the benefit again. Let me say that making insurance into their job because they fear the It is very difficult to quantify this, portable and permanent is something loss of their health insurance if they but anyone who read the article in the that I support. But I think that, if we move will benefit since they will be April 5 issue of the Wall Street Journal are going to be honest with ourselves, guaranteed the issuance of health in- knows this is happening in States it is very hard to do this with a surance when they change jobs. These which have done exactly what we are straight face, which is what has been are the positive impacts of the pro- proposing to do. done in virtually every speech that has So the first negative impact of this posed changes. been given on the floor of the Senate But it is generally true, in the real bill is that it eliminates one of the this morning. We are talking about 25 world we live in, that not all impacts prime incentives for young, healthy million Americans who are going to of dramatic changes are positive; let people to buy private health insurance, benefit from this bill. This is a number me outline some of the negative im- and the second negative impact is that that has been established independ- pacts. it distorts the risk pool in the process. ently of the Senate. We all rejoice in No. 1, we are going to end up, by The third thing it is going to do, it—25 million beneficiaries of this bill, guaranteeing availability, distorting which is part of the positive impact, is which is supposedly just a technical health coverage. Young, healthy peo- that the 21 million people who are sick amendment. Yet I would point out to ple, knowing that they are going to be today and as a result of being high risk my colleagues, if you look through this able to qualify for private health insur- have opted not to pay the going mar- bill, it does not appropriate one penny. ance in some form—either through a ket rate—or in some cases they simply It does not provide one cent. group or as individuals—are going to have not been able to afford health in- Now ask yourself, how are 25 million have a greater incentive to not obtain surance—the positive thing for them people going to benefit from this bill, the coverage that they have today. will be that they will now be able to through greater availability of health Why do young workers who are basi- buy health insurance. The fact that insurance and lower prices, if the Gov- cally healthy buy private health insur- they will opt for coverage, while ernment and the Congress which passes ance right now? Some might buy it be- younger healthier people, knowing this bill are not providing one single cause they are risk averse. But many they can get it later, will opt not to penny? Is it somehow magic that buy it because they want to guarantee get the coverage, however, will further through Government edict we can be- that in the future, when they may not distort the risk pool of insurance. What stow billions of dollars of benefits on be as healthy, they will have locked in this will mean is that in America there our fellow citizens at no cost and no their coverage. will be more young, healthy people who dislocation whatsoever? The answer to What this produces is a balanced dis- do not opt for health insurance than we that is clearly no. tribution of people who are buying pri- have today, and there will be more April 18, 1996 CONGRESSIONAL RECORD — SENATE S3539 older, less healthy people who do. count is to change the Tax Code to other 100 million people in order to pay Given the inherent cost of changing allow an individual or a family to for it. The way to do that is with a the mix of people who are buying pri- choose a high deductible insurance pol- medical savings accounts and medical vate health insurance, the inevitable icy instead of a low deductible policy, liability reform. result of this is going to be that you and to put the savings from the result- In and of itself, this bill simply drive up the cost of insurance pre- ing lower premiums into an account transfers income and assets from one miums. which is designated solely for the pur- group of Americans to another, and in This is not just something that is pose of paying the policy’s deductible. the whole you have 25 million winners theoretical, I know we have some study At the end of the year, if they do not but you have 100 million losers. which says that costs are going to go spend that money on the deductible, With reform, we can see that vir- up by some minuscule amount. I do not they can roll it over for their retire- tually every American family wins. If believe, however, that anybody who ment or take it out as income and pay all we are doing is simply shifting risk, has looked at the experience of States taxes on it. we are not dealing with the fundamen- like Washington could possibly believe What that means is that for routine tal health care problem in America. this. I think what we are really looking type care they are spending their own So I hope my colleagues will vote for at in this bill, independent of any other money. Medical savings accounts em- the Dole amendment. I think it is very changes, is younger, healthier people power the individual consumer to be important. I totally reject the idea dropping out and older, sicker people cost conscious and provide a mecha- that this is a simple bill and that we opting in. The net result of these shifts nism that will save the concept of fee- ought not to load it up with other is going to be a substantial increase in for-service medicine so those who do items. If we do not have fundamental insurance rates for those who have not want to be members of an HMO or savings, this bill is going to cause in- bought health insurance, for those a prepaid system can opt to stay in fee- surance rates to explode, and we are who, in many cases, bought it when for-service medicine and yet have in- going to be right back here 2 years they were young and healthy in order centives to be cost conscious. from now debating socialized medicine If we adopt the amendment of the to have a guarantee of insurability. again. I have debated that once, I am distinguished majority leader, we will The net result of this bill is going to be not eager to do it again, but if it is re- fundamentally change the health care rising insurance costs. quired, I certainly will. Now, this bill, in fact, anticipates market, and those savings will offset I yield the floor. this result and sets up a series of pow- several times over the cost that is in- Mr. HELMS. Mr. President, more ers to help the States try to deal with volved in driving up insurance rates for than 80 percent of Americans younger these potential impacts. At some later 100 million Americans to help the 25 than 65 are covered by health insur- point I am going to debate and possibly million who will be beneficiaries of this ance, but if one of them changes jobs, program. offer an amendment dealing with a pro- or is laid off, he or she may be denied A second reform, which is not con- vision on page 40 that gives the Sec- health insurance because of a preexist- tained in the Dole amendment, deals ing problem, or because his health in- retary of Health and Human Services with medical liability. We have some surance cannot move with him or her. the power to disallow a State program estimates which indicate that 20 per- A genuine fear therefore exists that the to deal with rising costs unless it im- cent of the cost of medical care in security of health insurance could very plements a mechanism to spread the America comes from expenditures that well be lost. In fact, opinion polls show risk and to limit rate increases. I do are aimed at keeping people out of the that as many as one-third of employees not think we ought to be dictating to courthouse instead of keeping people fear that if they switch jobs they will the States what they can and cannot out of the hospital and out of the be unable to obtain new health insur- do in order to deal with a problem that grave. this bill is going to cause. If we are going to make the changes ance. We have before us a bill that is going envisioned in this bill, which in essence The American people believe, and I to help people, 25 million of them, and transfers costs to the people who have agree, that they should be able to for these individuals it is going to be a private health insurance—by raising change jobs without losing their health godsend. But another 100 million peo- their premiums—from people who do insurance. Congress needs to insist ple, who already have private health not have health insurance today, the that health insurance be made portable insurance and who are going to see way to offset that burden on people so that the fear of losing their health their rates go up, are going to be losers who have in essence done what we insurance should not plague the Amer- from this reform. We are going to wanted them to do—bought private ican people when they change or lose change behavior by inducing younger health insurance—is by allowing for their jobs. This bill permits insured people to not buy into the system, and medical savings accounts and dealing employees who leave one employer to as a result rates will be raised. We are with medical liability. be covered immediately upon taking also going to bring sicker people into If we do not make these two changes, another job that offers employees the system, and the final result is my fear is that 2 years from today, in- health insurance, regardless of their going to be a spike in insurance rates— surance rates, especially on individual health status. just as has happened all over the coun- policies outside of group plans—be- This bill does not establish commu- try in States with similar programs. cause under this bill we guarantee the nity rating. Community rating is a We have now some 29 States that availability of a policy to somebody grave threat to the insurance market. I have gone about this in a different way who leaves their group plan—I am con- have heard many cite the dismal fail- by creating risk pools to help people cerned that without medical savings ure of guaranteed issue in States such who have a preexisting condition get accounts or without medical liability as New York. These States coupled health insurance. We are, in essence, reform, we are going to see insurance guaranteed issue with price controls going to kill that off this approach by rates spike and we are going to see that kept premium prices equal for ev- mandating that the insurance policy be States try to hold them down with ra- eryone regardless of age, health status, sold in the way we dictate at the Fed- tioning mechanisms and price controls. etc. This combination ensures collapse eral level. I think they are going to fail, as they of the health insurance market. How- There is a way to get the advantages are failing in Washington State today, ever, S. 1028 narrowly defines guaran- to the 25 million people who will bene- and I think we are going to be right teed issue in order to avoid the dev- fit from the bill and offset the cost to here 2 years from now debating a astating effects of pushing healthy peo- the 100 million who will lose from it. health care bill again, and the demand ple out of the health insurance market. The way to do that is with fundamen- will be made to do something about ex- There must be a limit to preexisting tal reform which, it seems to me, can ploding costs. Yet we will have pro- condition restrictions that now prevent take two basic approaches. No. 1 is duced these exploding costs with this many citizens from obtaining or hold- with medical savings accounts as will bill. ing onto health insurance. I am con- be offered by the majority leader. The We have it in our power to help 25 vinced, Mr. President, that small busi- idea behind the medical savings ac- million people and yet not hurt an- nesses should be encouraged to form S3540 CONGRESSIONAL RECORD — SENATE April 18, 1996 groups to build joint purchasing power we all pay, in the form of higher insur- character presents an accurate and moving when buying health insurance for their ance premiums and lower income. vision. The essence of that vision is the con- employees. Forbes is not the only company to sensual relation between the patient and the These provisions of the Kassebaum benefit from an incentive-based pro- physician. The patient was free to choose his physician, and the physician free to accept bill will be welcome and overdue im- gram. Dominion Resources, a public or reject the patient. provements in the health insurance utility holding company in Richmond, In Mr. Solzhenitsyn’s words, ‘‘among all market, and I wholeheartedly support VA, has likewise developed an innova- these persecutions [of the old doctor] the them. tive method of reducing its health care most persistent and stringent had been di- However, Mr. President, in the de- expenses, a medical savings account. rected against the fact that Doctor bate on health insurance reform, per- An MSA works: The employer buys Oreschenkov clung stubbornly to his right to haps the most innovative solution has its employees a health insurance policy conduct a private medical practice, although been given the shortest shrift—the with a high deductible. This kind of this was forbidden.’’ medical savings account. This solu- policy has two attributes: First, it pro- ‘‘EASIER TO FIND A WIFE’’ tion—that will provide the greatest tects the insured against catastrophic In the words of Dr. Oreschenkov in con- freedom—has been successfully used by health care expenses; and second, its versation with Lyudmila Afanasyevna, a many businesses to keep their health premiums are less expensive. longtime patient and herself a physician in the cancer ward: ‘‘In general, the family doc- care costs down and employee satisfac- The employer then establishes a spe- tor is the most comforting figure in our tion up. In a truly American way, med- cial account for each employee to pay lives. But he has been cut down and fore- ical savings accounts harness the free for routine medical treatment. What shortened. . . . Sometimes it’s easier to find enterprise profit motive to promote the employee does not spend from the a wife than to find a doctor nowadays who is sorely needed efficiencies in the health account, he keeps. This incentive en- prepared to give you as much time as you care economy. MSA’s confer upon indi- couraged 75 percent of Dominion’s em- need and understands you completely, all of viduals an incentive, a reason, to spend ployees to enroll in a high-deductible you.’’ their health care dollars wisely by plan. And guess what—since 1990, Do- Lyudmila Afanasyevna: ‘‘All right, but how many of these family doctors would be turning part of the savings over to the minion’s health care costs have risen needed? They just can’t be fitted into our employees, in effect rewarding effi- less than 1 percent per year; premiums system of universal, free, public health serv- ciency. have not increased in 3 years. ices.’’ Mr. President, many private busi- Forbes and Dominion Resources are Dr. Oreschenkov: ‘‘Universal and public— nesses are already using cash incen- but two examples of private industry yes, they could. Free, no.’’ tives and medical savings accounts to enterprise coming up with health care Lyudmila Afanasyevna: ‘‘But the fact that reduce their health care costs while, at solutions that work. Incentive-based it is free is our greatest achievement.’’ the same time, achieving great em- solutions work for the company and Dr. Oreschenkov: ‘‘Is it such a great achievement? What do you mean by ‘free’? ployee satisfaction with the health they work for the employee. As one The doctors don’t work without pay. It’s just care afforded them. economist, Gerald Musgrave, put it, that the patient doesn’t pay them, they’re One company cut its health care ‘‘We have thousands of years of experi- paid out of the public budget. The public costs significantly. In 1992, Forbes ence with how people handle their own budget comes from these same patients. magazine was spending $2.3 million per money.’’ Treatment isn’t free, it’s just depersonalized. year for health insurance from CIGNA So, why not let Americans continue If the cost of it were left with the patient, at an average cost of about $5,000 per to handle their own health care dollars he’d turn the ten rubles over and over in his employee. In order to encourage em- and help them realize their role in cost hands. But when he really needed help he’d ployees to be more cost conscious, Mal- come to the doctor five times over. . .. savings? Time and time again, Ameri- ‘‘Is it better the way it is now? You’d pay colm Forbes, Jr., decided to reward his cans have shown that they can and will anything for careful and sympathetic atten- employees with a bonus for not filing make cost-conscious health care deci- tion from the doctor, but everywhere there’s major-medical and dental claims. sions when given a sensible incentive a schedule, a quota the doctors have to meet; Forbes explained the choice to its to do so. next! . . . And what do patients come for? employees: If, during the year, an em- So, Mr. President, insurance can be For a certificate to be absent from work, for ployee minimized the number of claims made more accessible by assuring sick leave, for certification for invalids’ pen- filed with the insurance company, Americans that their policies will not sions; and the doctor’s job is to catch the Forbes agreed to pay that employee a be canceled because of an illness or frauds. Doctor and patient as enemies—is that medicine?’’ bonus of up to $1,200. Employees enthu- when they are changing jobs. These are ‘‘Depersonalized,’’ ‘‘doctor and patient as siastically embraced this plan; insur- some obvious flaws in the market and enemies’’—those are the key phrases in the ance claims dropped dramatically. As I believe further progress can be made growing body of complaints about health of 1994, while premiums for other by addressing the Tax Code. But I am maintenance organizations and other forms CIGNA clients rose between 21 and 25 convinced that we’re on the right of managed care. In many managed care sit- percent, Forbes’ major-medical pre- track. uations, the patient no longer regards the miums fell 17.6 percent. Mr. President, I ask unanimous con- physician who serves him as ‘‘his’’ or ‘‘her’’ The obvious lesson learned from the sent that an April 17, 1996 Wall Street physician responsible primarily to the pa- Forbes example is that employees will tient; and the physician no longer regards Journal article entitled ‘‘A Way Out of himself as primarily responsible to the pa- control their health spending—if they Soviet-Style Health Care’’ by Milton tient. His first responsibility is to the man- are allowed to keep the savings. Of Friedman be printed in the RECORD. aged care entity that hires him. He is not en- course, in the case of employees who There being no objection, the article gaged in the kind of private medical practice are really sick, they file the necessary was ordered to be printed in the that Dr. Oreschenkov valued so highly. claims and receive bonuses in lesser RECORD, as follows: For the first 30 years of my life, until amounts. Employees choosing to pay [From the Wall Street Journal, Apr. 17, 1996] World War II, that kind of practice was the out-of-pocket for routine health ex- norm. Individuals were responsible for their A WAY OUT OF SOVIET-STYLE HEALTH CARE own medical care. They could pay for it out- penses instead of filing claims, get the (By Milton Friedman) of-pocket or they could buy insurance. ‘‘Slid- bonuses at the end of the year. In a chapter in his novel ‘‘The Cancer ing scale’’ fees plus professional ethics as- Consider, Mr. President, how this Ward’’ titled ‘‘The Old Doctor,’’ Alexander sured that the poor got care. On entry to a kind of commonsense incentive will Solzhenitsyn compares ‘‘private medical hospital, the first question was ‘‘What’s change the public attitudes about practice’’ with ‘‘universal, free, public health wrong?’’ not ‘‘What is your insurance?’’ It health care costs. For example, one service’’ through the words of an elderly may be that some firms provided health care Forbes employee regularly needs four physician whose practice predated 1918. A by- as a benefit to their workers, but if so it was different prescriptions filled, but as a product is an eloquent statement of the the exception not the rule. result of the Forbes bonus program, major advantages of medical savings ac- The first major change in those arrange- counts for the U.S. in 1996. ments was a byproduct of wage and price this employee now shops around for the Mr. Solzhenitsyn himself had no personal controls during World War II. Employers, best price. Before, he didn’t care how experience on which to base his account and pressed to find more workers under wartime much a prescription cost because insur- yet, in what I have long regarded as a strik- boom conditions but forbidden to offer high- ance paid it. And when insurance pays, ing example of creative imagination, his er money wages, started adding benefits in April 18, 1996 CONGRESSIONAL RECORD — SENATE S3541 kind to the money wage. Employer-provided in the MSA at his or her discretion for den- If the job is eliminated, it may mean medical care proved particularly popular. As tal or vision care that is typically not cov- no more health care insurance—ever. something new, it was not covered by exist- ered under most health plans. No need to get For the person who wants to better ing tax regulations, so employers treated it ‘‘authorization’’ from a gatekeeper or an in- as exempt from withholding tax. surance company to visit a specialist or to himself or herself by taking a new job, It took a few years before the Internal have a medical procedure—until the cata- or starting a new business, it may Revenue Service got around to issuing regu- strophic policy takes over. mean no more health insurance—pe- lations requiring the cost of employer-pro- LIMITING COMPETITION riod. We can all imagine that fear. vided medical care to be included in taxable The managed care industry has come to These insurance company decisions wages. That aroused a howl of protest from recognize that MSAs might threaten its affect working people who play by the employees who had come to take tax exemp- growing control of American medicine by of- rules. They pay their insurance pre- tion for granted, and Congress responded by fering a more attractive alternative. As a re- miums when they can get coverage. exempting employer-provided medical care sult, the managed care industry has recently from both the personal and the corporate in- But they find themselves in untenable become a vigorous enemy of MSAs. Every be- situations. come tax. liever in competition will recognize that op- Because private expenditures on health They are unable to have the most position for what it is: a special interest care are not exempt from income tax, almost using government to limit rather than ex- basic insurance of all—for themselves all employees now receive health care cov- pand competition. and their families—to not have to erage from their employers, leading to prob- Medical savings accounts are not a pana- worry about health care coverage. lems of portability, third party payment and cea. Many problems would remain for an in- It is demeaning to all Americans if rising costs that have become increasingly dustry that now absorbs about a seventh of people cannot better themselves and serious. Of course, the cost of medical care the national product. However, I believe that comes out of wages, but out of before-tax their families’ situations for fear of they offer the closest approximation that is losing health care insurance. This leg- rather than after-tax wages, so that the em- currently feasible to the private medical ployee receives what he or she regards as a practice that Dr. Oreschenkov cherished. islation will free many working people higher real wage for the same cost to the em- from the stagnation of being unable to ployer. Mr. BRYAN. Mr. President, today is remarkable. At long last—on the floor accept new job opportunities. A second major change was the enactment The Health Insurance Reform Act of the Senate—we are considering of Medicare and Medicaid in 1965. These guarantees that private health insur- added another large slice of the population health care reform legislation that the to those for whom medical care, though not American people both want and sup- ance coverage will be available, renew- completely ‘‘free,’’ thanks to deductibles and port. And at long last, it is legislation able, and portable to working Ameri- co-payments, was mostly paid by a third with significant bipartisan support. cans. party, providing little incentive to econo- I am proud to be a cosponsor of this This legislation will make it easier mize on medical care. The resulting dra- bill. It will provide health care insur- for individuals and employers to buy matic rise in expenditures on medical care and keep health insurance, even when a led to the imposition of controls on both pa- ance protection for thousands of Ne- vadans, and millions of Americans. family member or employee has a pre- tients and suppliers of medical care in a fu- existing condition. This legislation tile attempt to hold down costs, further un- This incremental bill is our best oppor- dermining the kind of private practice that tunity to get working Americans the makes health care coverage portable so Dr. Oreschenkov ‘‘cherished most in his health care access they deserve. workers would no longer be locked into work.’’ We have been close to this point be- jobs or prevented from starting their The best way to restore freedom of choice fore. It seems like ancient history own business for fear of losing their to both patient and physician and to control when I think back to cosponsoring health coverage. costs would be to eliminate the tax exemp- former Senator Lloyd Bentsen’s small Small businesses and self-employed tion of employer-provided medical care. business insurance health care reform. individuals are particularly victimized However, that is clearly not feasible politi- under the current system, because they cally. The best alternative available is to ex- It too had incremental insurance cov- tend the tax exemption to all expenditures erage improvements that many in this lack the bargaining power of larger on medical care, whether made by the pa- body supported—yet once again, the corporations. This legislation addresses tient directly or by employers, to establish a final hurdle could not be overcome. their problem by encouraging them to level playing field, in terms of the currently Many times—and over many years— form private, voluntary coalitions for popular cliche. Nevadans have shared with me their purposes of purchasing health plans Many individuals would then find it attrac- heart breaking stories. Families whose and negotiating with providers. By tive to negotiate with their employer for a forming these groups, the costs of higher cash wage in place of employer-fi- children have medical conditions that nanced medical care. With part or all of the prevent the family from being able to health plans would be more competi- higher case wage, they could purchase an in- purchase health insurance, because no tive for small employers and individ- surance policy with a very high deductible, insurer will take a child with a pre- uals, as compared to large employers, i.e., a policy for medical catastrophes, which existing condition. Working individ- by giving them more clout in the mar- would be decidedly cheaper than the low-de- uals who develop chronic health condi- ketplace. ductible policy their employer had been pro- tions, and cannot leave their current This bill is the foundation for incre- viding to them, and deposit all or part of the employment for fear of not being able mental health reform. Although this difference in a special ‘‘medical savings ac- insurance reform legislation will not count’’ that could be drawn on only for medi- to get health insurance in their new cal purposes. Any amounts unused in a par- job. solve all of the problems of the Na- ticular year could be allowed to accumulate Health insurance is often denied for tion’s health care system, it will pro- without being subject to tax, or could be the very illnesses most likely to remote greater access and security for withdrawn with a tax penalty or for special quire medical care. Eighty-one million health coverage for all Americans. Pri- purposes, as with current Individual Retire- Americans have conditions that could vate insurance carriers will compete ment Accounts—in effect, a medical IRA. subject them to such exclusions if they based on quality, price and service, in- Many employers would find it attractive to lose their current coverage, and some- stead of by their ability to refuse cov- offer such an arrangement to their employ- times these exclusions make them erage to those who need it the most. ees as an option. Some enterprises already have managed to completely uninsurable. We all know there will be attempts do so despite the tax penalty involved. MSAs People with preexisting conditions to add amendments to this legislation. have proved very popular with employees at are penalized twice. First, they have a Some of those amendments are going all levels of income, and they’ve been cost- serious health care condition that re- to be very hard to vote against. effective for employers. The employee has a quires medical care—a situation they But we must keep focused on what it strong incentive to economize, but also com- did not choose. Second, they are at the is we are trying to accomplish here. plete freedom to choose a physician, and the mercy of insurers who decide whether We have the opportunity to provide equivalent of first-dollar coverage. There are they will have coverage, or be cut off. access to health care insurance for mil- no out-of-pocket costs. Until the employee For the person with a preexisting lions of Americans who each and every spends more than the total amount in the MSA. Such costs are then limited to the dif- medical condition, who has been lucky day face the uncertainty of whether ference between the amount in the account enough to get health care insurance they will have coverage. and the deductible in the catastrophic pol- through his or her job, the secondary We can do something to allay those icy. Moreover, the employee can use money fear is keeping their job. fears. S3542 CONGRESSIONAL RECORD — SENATE April 18, 1996 Passing this bill is a big step to en- this is a reasonable, sensible first step and maybe can’t afford to purchase insuring health care coverage is avail- and will go a significant distance to- surance for her handful of employees. able to working Americans. Other steps ward guaranteeing coverage for mil- S. 1028 will give this woman a chance are needed—but they need not be taken lions of American workers and their to succeed. She will not be discrimi- today. families. nated against because of her preexist- Let us first take this big step, and Mr. President, we owe it to those ing condition, and under the provisions get the job started. And from there, we families to pass this bill, and pass it in of this bill—small businesses and indi- can and will, work to ensure even bet- its current form. To do anything which viduals are permitted to form coopera- ter health care for all Americans. could jeopardize the fragile coalition of tives to purchase insurance and nego- Mrs. MURRAY. Mr. President, during support for this bill would be irrespon- tiate with providers and health plans. the 103d Congress many of us worked sible and bad public policy. This arrangement will spread adminis- very hard to try to enact comprehen- I appeal to my colleagues not to try trative costs and empower the partici- sive health care reform. Despite our ef- and load up this bill with amendments pants to negotiate for better prices. forts and what felt like endless debate, that will ultimately kill the bill. Let In other words, S. 1028 will help this politics prevailed and we came up emp- us show our constituents that we can woman and her children put their trou- tyhanded. Perhaps we were too opti- work together and we can put political bled pasts behind them. mistic to think we could accomplish differences aside for the greater good. Mr. President, the examples are end- such broad and sweeping reforms in Much of what we are discussing here less. We have heard many stories 1993; but unfortunately health reform will not be news to people in my State. today, and as Senator KASSEBAUM remains a critical high priority issue In 1993, we passed one of the most com- pointed out—we all know someone who for every family in this country. prehensive health care measures in the could be helped by this bill. Well, political realities are still very country, and even after serious modi- Even though this bill may not be as real factors in determining the out- fication the people in Washington still comprehensive as I personally would come of legislative initiatives here in have many of these same protections. like, I want to reiterate my strong Congress. And here we are again dis- In some areas, like limits on pre-ex- hope that we can pass S. 1028 without cussing health care reform, only in a isting conditions, my State actually any controversial additions and move much more limited and focused way. has a shorter limit of 3 months, which forward to address the many other is- I am encouraged that the dialogue is the Kassebaum-Kennedy bill will not sues facing America’s families. That’s open once again, and that we are tak- preempt. why we’re here. ing positive steps toward addressing Earlier I said that we owe it to work- Mr. COHEN. Mr. President, I rise in the many health-related issues con- ing families to pass this bill. I am talk- support of S. 1028, the Health Insurance fronting people across our country. ing about people across the country Reform Act, which promises to relieve If I had it my way, we would not just who have to worry about their health the anxiety that millions of Americans be talking about health insurance re- care coverage, people who want to are feeling that they may lose their form today. We would be doing more, work and take care of themselves and health care coverage if they change especially for our most precious re- their families. People like: their jobs, lose their jobs, or become source, children. We should be doing The working family of three. Dad ill. more, like: ensuring better pre- and wants to change jobs to a higher pay- Health care reform is certainly not a post-natal care for women and their ba- ing company, but his daughter has new issue for any of us. In fact, I intro- bies; boosting rates of immunization multiple sclerosis. Under this bill, he duced my first comprehensive health even higher for children across our na- wouldn’t have to worry that she will care reform bill back in 1990. It was 76 tion; working even harder to reduce ad- not be able to get coverage under the pages long and it dealt with these same olescent health problems like teen new employer’s plan. He plays by the issues—the availability and afford- pregnancies, substance abuse and rules, he pays his premiums—this fam- ability of health insurance. STD’s; improving child nutrition pro- ily will not be confronted with a pre- Over the subsequent 6 years, we have grams and strengthening our overall existing condition exclusion period. spent countless hours studying and de- national commitment to children and By requiring insurance companies bating the issue. If we have learned family health and well-being. and employers to credit prior insurance anything, it is that the American peo- But, I recognize the realities of the coverage, this bill will give workers ple want health care reform, but they 104th Congress, and realize that some- with disabled family-members peace of want something they can understand times progress comes one step at a mind and the flexibility to change jobs and afford, and something that builds time. I am proud to be a cosponsor of without fear of losing their insurance. upon rather than reinvents the current S. 1028, the Health Insurance Reform Or a woman who had breast cancer system. Act. I believe this is a commonsense who is starting a new job. Today, she The American public wisely rejected measure that will directly benefit could possibly be denied coverage or the big-government approach proposed working families across our country. I charged a higher premium because of in the last Congress by the administra- sincerely hope we can pass this bill and her cancer history. But, tomorrow— tion—that 1,400 page proposal literally send it to the President for his signa- under S. 1028—because insurance com- collapsed under its own weight. More ture. panies and employers would be prohib- Government bureaucracy is clearly not We should not weigh this bill down ited from discriminating against work- the way to lower health care costs or with amendments that could undo the ers because of past medical problems, ensure access to care. broad bipartisan support we so rarely this woman would be treated no dif- But rising health care costs and ex- see in this Congress. I applaud Sen- ferently than anyone else covered panding gaps in coverage are still very ators KASSEBAUM and KENNEDY for under the same plan. much on the minds of the American their ongoing leadership and commit- And, the new small business owner people. Poll after poll continues to ment to enacting this legislation. and her three children. Mom was show that health care remains a top S. 1028 was carefully crafted so that abused in her former marriage and is priority. In fact, a poll conducted late we could pass it overwhelmingly and trying to start over. A woman in this last year by Princeton Survey Re- see it enacted into law with the full situation is going to need all the help search Associates found that more support of the White House. For this she can get to provide for herself and Americans are concerned about their reason, I will join my colleagues in op- her kids. own health care coverage than they are posing any controversial amendments Today, she could be facing not one about crime, high taxes, the political that are offered, even those which I but two obstacles to starting her new system, or the economy. support in principle. We should learn life for herself and her family. First, Americans clearly want health care from the past, Mr. President, and not she could be denied coverage for herself reform. But what they mean when they try to bite off more than we can chew. for any preexisting condition that was say that is: ‘‘If I lose my job or get As I said, this bill is not a cure-all. caused by her years of being abused. sick, I want to keep my health insur- We need to do more, of course. But, Second, she is a new business owner ance and I don’t want it to cost so April 18, 1996 CONGRESSIONAL RECORD — SENATE S3543 much.’’ They want Congress to enact Newsweek has termed ‘‘a little more plan, and rightly so. The plan focused sensible, targeted reforms to make peace of mind.’’ on setting up new bureaucracies, that health insurance more affordable and We should not underestimate the im- it completely ignored the people who available, and to ensure that they do portance of providing this peace of would have been affected by it. not lose the coverage that they cur- mind to people like Susan Rogan, of This legislation takes a clear-headed rently have. Herndon, VA, who testified before the approach, responding to one problem We have that opportunity today. De- Labor Committee last summer. that people face regarding preexisting spite the partisan and sometimes bitter She told the committee that the ex- conditions. It follows the conclusions debate over this issue in recent years, perience of obtaining health insurance of the Senate health care task force, of there is now broad-based, bipartisan after her husband’s employers had gone which I am pleased to have been a support for this bill, which would bene- bankrupt had been a nightmare, even member for several years. We came up fit as many as 25 million Americans though he quickly found a new job. In- with the lessons learned from the Clin- each year, at no additional cost to the surers were reluctant or unwilling to ton health care debacle, and topping taxpayers. The legislation currently cover the family because their daugh- the list was the fact that there simply has 65 Senate cosponsors and is sup- ter has cerebral palsy. cannot be a government-run health ported by a wide range of diverse orga- She urged us to work together, say- care system. Period. The only sane, re- nizations including the National Gov- ing: sponsible way to address particular ernors’ Association, the U.S. Chamber It is your responsibility, in Congress, to problems that may arise is to take a of Commerce, the American Associa- find a solution to the insurance problems very narrow, targeted approach. In tion of Retired Persons, and the Amer- that have caused so much heartache for so other words, you don’t solve a problem ican Medical Association. many American families. We voted for you, with grandiose, wholly unworkable The Health Care Reform Act of 1996 and we expect no less of you. schemes. You solve a problem with a builds upon and strengthens our cur- And Susan Rogan is right. She should commensurate response. rent private insurance system to make expect no less of us. It is our respon- In this case, we have the problem of it easier for individuals and their em- sibility to work together and take this coverage for preexisiting conditions. ployers to buy and keep their health positive step forward to tear down the The goals of this bill are strickly de- insurance. It contains a number of barriers that millions of working fined and few. They are to: common sense, market-based reforms Americans and their families face in First, develop insurance reform legis- that are designed to guarantee that obtaining and keeping essential health lation that builds upon and strength- private health insurance coverage will care coverage. ens the current private market system; be affordable, available, and portable. I therefore join the chairman and Second, make it easier for individ- Most of these reforms have been in- ranking member of the Labor Commit- uals to keep and obtain private health cluded in my own health care bills over tee in urging my colleagues to resist insurance coverage, including meas- the years, and they have also been the temptation to weigh down this im- ures to limit preexisting condition ex- common elements of legislation intro- portant piece of legislation with highly clusions and expand portability; duced in past Congresses by both Re- controversial or extraneous amend- Third, increase the purchasing clout publicans and Democrats. ments. of individuals and small groups. First, the bill limits the ability of in- Some of the amendments that may With that said, let me enunciate surers and employers to restrict or ex- be offered today are ones that I would, what this bill will not do. clude coverage for pre-existing health under other circumstances, support. It will not require employers to offer conditions like heart disease or cancer, For instance, I have been a long-time or pay for health insurance coverage. It will not require individuals to pur- making it easier for workers to change supporter of Senator DOMENICI’s legislation to provide people with serious chase health insurance. jobs and eliminating job lock. Insurers It will not impose new and expensive mental illness with health benefits and will also be prohibited from dropping regulatory requirements on individ- coverage that are comparable to those or denying coverage for an individual uals, employers, or States. when they or a family member be- provided to people with physical ill- It will not create new Federal boards, comes ill. ness. commissions, or regulatory bodies. The legislation also provides a safety However, this is neither the time nor It will not contain a standard benefit net for people who lose their employer- the vehicle, and I intend to vote package or mandated benefits. paid coverage—insurers will now be re- against all such extraneous amend- It will not subject ERISA plans to quired to sell them individual policies. ments. We simply do not want to run state regulation. Some have expressed concern that this the risk of having this very sensible It will not impose any new taxes. provision will cause premiums in the and eminently doable package grow This is not ‘‘Clinton Lite;’’ this is a individual market to skyrocket. How- into yet another 1,400-page bundle of modest, narrow, targeted proposal. ever, our experience in Maine—where expensive mandates, more Government This is the way health care reform insurers have been required to sell poli- bureaucracy, and untested proposals. should be accomplished: not consumed cies to any individual who applies since We should not let the ghosts of with utopian visions and grand 1993—shows that this change should health reform past destroy the promise schemes of expensive government have only minimal price consequences. that this important piece of legislation power, but realistic and down-to-earth. In fact, one Maine insurer reduced holds for resolving some of the most se- I believe we have finally got it right. rates for its individual policies by 16 rious problems plaguing our health I know that many of my constituents percent last year. care system, and I urge my colleagues in Washington State, and many Ameri- And finally, the bill assists employ- to join me in supporting it. cans, are concerned any time Congress ers and individuals in forming private, Mr. GORTON. Mr. President, let me addresses the issue of health care re- voluntary coalitions to purchase make an important point about this form. With the memory of the Clinton health insurance and negotiate with bill. It is very narrow in scope, address- plan fresh in their minds, they cer- providers and health plans. These kinds ing portability and health coverage for tainly have reason to be wary. But I of arrangements can provide small em- preexisting conditions. It in no way re- believe that, once they know what is in ployers and individuals with the same sembles the expansive Clinton health this bill, they will be pleasantly sur- kind of purchasing clout enjoyed by care proposal this body defeated 2 prised. This Congress has neither the large employers, making insurance years ago. intention nor the desire to let the gov- coverage more affordable. In the summer of 1994, many hun- ernment take over American health No one pretends that the reforms dreds of Washington state citizens care, the best health care system in the contained in this bill are the answer to gathered in Westlake Mall in down- world. This Congress wants to take a all of our Nation’s health care woes. town Seattle to protest the proposed very limited approach to specific prob- They are targeted and they are spe- Government takeover of their health lems. cific. But they will provide all Ameri- care. They were outraged by the hubris The Health Insurance Reform Act is cans with what Robert Samuelson of and the arrogance of that health care in concert with the beliefs of most S3544 CONGRESSIONAL RECORD — SENATE April 18, 1996 Americans, who do not want govern- surance coverage to a larger segment Some insurers today impose preexist- ment-run health care, but who do ex- of the American population. ing condition limitations or exclusions pect Congress to address and resolve I am proud to serve as an original co- on individuals when they first become certain problems in the system. That is sponsor of this bill and would like to covered by an insurer. what this bill does, and I am glad to take this opportunity to commend the These exclusions may limit coverage support it. distinguished chairman and ranking of a medical condition for a certain pe- Mr. GLENN. Mr. President, as a co- minority member of the Committee on riod or longer or may exclude coverage sponsor of S. 1028, the Health Insurance Labor and Human Resources, Senator of a medical condition—forever. Reform Act, I am pleased that the Sen- KASSEBAUM and Senator KENNEDY, for Under the provisions of S. 1028, insur- ate is considering this important legis- the outstanding contribution they have ers, HMO’s, and self-insured firms lation, and I urge its passage. I com- made in helping to provide literally would be limited in the ability to use mend Senator KASSEBAUM and Senator millions of Americans with peace of preexisting condition limitations to no KENNEDY for their leadership in mind that they will not lose their more than 12 months after the enroll- crafting this bipartisan measure which health coverage. ment date. will help many working Americans As my colleagues are aware, insur- In addition, benefit limits or exclu- keep important health insurance pro- ance market reform is a bipartisan sions could not be imposed for tection for themselves and their fami- issue and it is something we have been newborns, newly adopted children, chil- lies. working toward for many years. I am dren newly placed for adoption, or for The purpose of the Health Insurance thinking back to the Bentsen-Duren- benefits for pregnancy. Reform Act is to ensure that people berger bill which many of us cospon- Another important component of this who have employer-provided health in- sored 4 years ago. bill is the provision regarding the guar- Indeed, as most of my colleagues surance will not lose their insurance if anteed issue of health coverage bene- know, the Senate and House have spent they change jobs, lose their jobs or be- fits. considerable time and energy over the Under this provision, an insurer or come sick. This legislation makes past 5 years debating various proposals health plan is required to cover any changes in the private insurance mar- designed to address problems with our group or individual who applies, with- ket to protect employees, and to make Nation’s health care system overall. out regard to health status or claims insurance more affordable for small Perhaps no other issue in recent experience. The bill would require all businesses and individuals. years has captured the attention and The Health Insurance Reform Act re- insurers who offer group coverage to concern of the American people than accept coverage for all groups that quires insurers and health maintenance the issue of health care reform and the organizations to provide and renew apply. role of the Federal Government in Insurers would be required to offer group coverage to employers with two shaping that reform. individual coverage to all individuals or more employees who want to pur- But I submit that today is not the moving from group coverage to individ- chase it, and this coverage must be time to debate measures of such tre- ual coverage as well. However, to be el- available to all employees regardless of mendous scope. igible for this guarantee, the individual their health status. In addition, this Unlike the President’s approach, S. must satisfy the following four cri- legislation makes insurance portable 1028 is targeted and narrowly focused teria: by limiting pre-existing condition ex- reform aimed at assisting nearly 25 First, the individual must have been million Americans in obtaining health clusions and by requiring group to indi- covered under one or more group insurance coverage. vidual coverage. health plans for at least the past 18 S. 1028 limits to 12 months exclusions Most of us in the Senate recall the innumerable hours spent considering months; for pre-existing conditions which oc- Second, the individual must not be President Clinton’s legislation that curred within the 6-month period prior eligible for group health coverage, or, was ultimately rejected by the Amer- to receiving insurance coverage. This if eligible for continuation coverage 12-month limit will be imposed only ican people and by the Congress. One of the lessons we learned from under the Consolidated Omnibus Budg- one time for individuals who maintain et Reconciliation Act of 1985, or continuous coverage even if they that endeavor was the need to provide for greater access to health insurance COBRA, or a similar State program, change jobs or insurance plans. Individ- then they must have elected, and ex- uals who lose employer-provided health than what is currently available. And access to health insurance is un- hausted that coverage; insurance will be guaranteed the oppor- Third, the individual must apply for tunity to purchase an individual policy questionably one of the fundamental problems facing Americans today. individual coverage not more than 30 if they had continuous coverage for 18 The current health insurance market days after the last day of coverage months in a group plan, if they have provides too little protection for indi- under the group plans, or the termi- exhausted their COBRA continuation viduals and families with significant nation date of COBRA benefits; and coverage, and if they are not eligible health problems and makes it too dif- Fourth, the individual must not have for coverage under another group ficult for employers—particularly lost group coverage due to nonpayment health plan. These provisions will go a small employers—to obtain coverage of premiums or fraud. long way toward ending the current for their employees. Accordingly, in order to be eligible problem of job lock, and ensuring that The health insurance reform bill is for insurance coverage in the individ- people who have been participating in specifically designed to address this ual market, we have incorporated im- health insurance plans do not lose pro- problem. portant benchmarks to foster individ- tection when they change jobs or be- It will reduce many of the current ual responsibility and accountability come sick. barriers to obtaining health coverage in the purchasing or insurance plans. S. 1028 is not comprehensive health by making it easier for people who We are all aware that this bill has en- care reform. It does not provide univer- change jobs or lose their jobs to main- gendered considerable debate on how it sal coverage for all Americans, and in- tain adequate coverage, and by provid- would impact existing premiums. surance costs will be unaffordable for ing increased purchasing power to The American Academy of Actuaries others. However, it is a very important small businesses and individuals. has studied this issue in great detail step forward in addressing problems in The bill will not only increase access and estimates that people who are our current health insurance system, to health care coverage, but will also newly eligible for individual coverage and it will provide peace of mind to provide portability of insurance cov- would pay an average of two to three many working Americans who have erage and increase the purchasing times the standard-risk premium rate, health insurance but fear losing it. power of individual and small employ- unless States restrict premiums. Mr. HATCH. Mr. President, I rise in ers who wish to seek to purchase insur- The Academy further states that S. strong support of the Health Insurance ance. 1028 will have no effect on individual Reform Act, S. 1028. This important Specifically, the bill restricts the use insurance premiums for those cur- legislation represents a significant and of preexisting condition limitations by rently purchasing coverage in the vast reasonable step in extending health in- insurance carriers. majority of States. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3545 In States that restrict premiums, S. S. 1028 does not require employes to gress. The fact that the bill currently 1028 would lead to individual market pay for health insurance coverage. has 65 cosponsors and was reported premium increases in the range of 2 to And, S. 1028 contains no unfunded unanimously by the Labor and Human 5 percent, spread out over a 3-year pe- mandates on State, local, or Indian Resources Committee serves as a testi- riod. tribal governments. monial to its strong bipartisan support Thus, I believe that fears the bill will In effect, this bill contains none of in the Senate. lead to large increases in premiums are the onerous provisions contained in the It is clear that this important piece unwarranted. However, I recognize ill-fated Clinton health care reform of legislation with its strong bipartisan those concerns, and I will be monitor- bill. support has the potential to be signed ing this situation closely. Mr. President, I will state in all can- into law by the President as he indi- Another important provision in this dor that initially I had reservations cated in his State of the Union Address legislation addresses insurance port- about supporting this legislation. in January. ability. As a general rule, I believe the Fed- I commend Senators KASSEBAUM and During our consideration of health eral Government should not intervene KENNEDY, and all the cosponsors, and care reform, it was clear that the use in areas where consumer choice and hope that we can move this key legisla- of preexisting condition provisions in natural marketplace conditions deter- tion forward today. insurance plans has contributed to a mine the level and costs of products Mr. ROTH. Mr. President, I rise in problem referred to as ‘‘job lock’’. and services. support of the pending legislation. In effect, employees are locked into And, indeed, in the past I have sup- Labor and Human Resources Commit- their current jobs because changing ported what I believe were true mar- tee Chairman KASSEBAUM and Senator jobs might subject them to periods ket-based reform proposals in the KENNEDY deserve to be commended for without health insurance coverage be- health care area. However, the problem there efforts in crafting the bill before cause of a preexisting health condition. of access to health insurance has long the Senate which assures that workers For an employee with a medical con- been a problem to millions of Ameri- who intend to change jobs will no dition, or a dependent with a medical cans. longer experience the fear of losing condition, loss of coverage during a This problem remains, and it will their health care coverage. Not only limitation period, or worse, exclusion continue to remain until appropriate have Senator KASSEBAUM, other mem- of coverage of the condition forever Federal action is taken. bers of her committee, and their staffs could mean significant out-of-pocket Over the course of the past year, we labored many long hours to draft the health care expenditures. have worked to develop and fine-tune bill, they have also successfully built a As a result, guaranteed issue and the provisions embodied in S. 1028. strong coalition of support. Thanks to limits on the use of preexisting condi- Most of these modifications were de- Senator KASSEBAUM and Senator KEN- tion provisions by insurers provide veloped to more clearly reflect the in- NEDY this bill is supported by big busi- needed portability of coverage for tent of the bill. ness, small business, a wide array of American workers. These revisions were principally de- advocacy groups, many insurance com- It is also important to note that the signed to provide more certainty to panies, and many Americans. legislation provides specific guidance States and insurers as well as to re- While I do think the Kassebaum-Ken- with respect to State flexibility in spond to concerns that the Secretary of nedy bill could be improved, I think it compliance with this new law. the Department of Health and Human is a critical step forward. At a later Federal provisions for group to indi- Services was given too much discretion time, I will join the majority leader in vidual portability only become effec- over alternative State programs. offering an amendment which makes tive if States do not have programs I am pleased that the manager’s health insurance more affordable. meeting Federal requirements for ac- amendment deals with concerns ex- The Kassebaum-Kennedy health in- cess. pressed to me from constituents in surance reform bill has an important S. 1028 will provide for state flexibil- Utah over the need to revise the bill’s focus. The bill will assist people who ity for compliance with Federal provi- provisions regarding conflict of inter- want and need to make necessary and sions. est language as it applies to purchasing correct decisions about their health State mechanisms could include cooperatives. care needs—people who work, people guaranteed issue or open enrollment And, I would like to thank Senator who join their group health care plans programs by one or more plans, a high KASSEBAUM’s cooperation in resolving and have paid their premiums continu- risk pool, or mandatory conversion these issues. ously for no less than 12 months. The policies. This legislation will now permit in- bill eliminates ‘‘job-lock’’ for workers In my State of Utah, we have already surers, agents, and brokers to serve on who fear they will lose their health enacted many of these reforms. purchasing cooperative boards or be coverage when they change jobs, and The legislation would permit a waiv- employed by a cooperative as long as the bill eliminates the fear of losing er from Federal law if a State could they do not personally benefit from the coverage for individuals who have demonstrate that its law achieved the sale of services or products to that co- maintained their group coverage and objectives of affordable individual mar- operative. have a preexisting condition. ket portability and renewability. I believe we have come as close as Recently my office was contacted by And finally, S. 1028 promotes group possible in this present political envi- a lady who has always been insured and purchasing by small businesses by as- ronment in developing a viable meas- paid her premiums. Yet she finds her- sisting employers and individuals in ure that will appropriately address the self today in a situation where she is forming private, voluntary coalitions problem of access to health insurance unable to obtain health care coverage to purchase health insurance and nego- for millions of Americans. because of a preexisting condition. tiate with providers and health plans. The General Accounting Office esti- Nancy Miller is 56 years old, after a di- These coalitions will provide small mates that passage of S. 1028 will help vorce from a 27-year marriage, she was employers and individuals with the at least 25 million Americans each allowed access to continued group kind of clout in the marketplace cur- year. health coverage through her former rently enjoyed by large employers. According to the GAO, an estimated spouse’s employer plan at the group It’s important to note what this bill 43 million Americans or 18.7 percent of premium rate for 3 years. Mrs. Miller’s does not contain. the nonelderly population were with- 36 month COBRA coverage expires at S. 1028 does not impose new, expen- out health insurance coverage for some the end of May. To make sure she will sive regulatory requirements on indi- period of time in 1995. not have a gap in health coverage, Mrs. viduals, employers or States. This bill will truly help people, and I Miller has worked with her current in- S. 1028 does not create new Federal believe it deserves our strong support. surer, called many other insurers, con- bureaucracies or agencies. It is clear that insurance market re- tacted our office, worked with an in- S. 1028 does not contain any new form is one area which enjoys wide bi- surance broker and yet she has been re- taxes, spending, or price controls. partisan support in both houses of Con- jected from every health plan she has S3546 CONGRESSIONAL RECORD — SENATE April 18, 1996 applied to. Mrs. Miller has a preexist- been minimal; therefore I agree with for health reform fizzled out. Partisan ing condition. She can not get health the bill’s goal to retain a strong state fights and interest group influence won care coverage because she contracted role in the individual market. This sec- the day. breast cancer 2 years ago. tion of the bill provides the needed It will serve no good purpose to re- Mrs. Miller’s situation could apply to flexibility for States to be creative. hash the health reform battles of the anyone, because anyone could get sick. It’s important to note that the bill past. We now have the opportunity to Mrs. Miller has not gamed the system builds on responsible behavior because move beyond party squabbling. Con- seeking insurance only when she need- it requires that individuals have pre- gress can clearly demonstrate the will ed it. For years she was healthy, and vious continued group health care cov- to enact a bipartisan health reform for her entire life she has been insured. erage in order to qualify for the port- bill. Or we can choose to remain The letter Mrs. Miller’s insurance ability provisions. This is the case with gridlocked and at the mercy of special broker recently wrote her could be a Mrs. Miller who responsibly main- interests. I believe that choice is an letter received by many women. The tained her group coverage. easy one. following is the letter she received The pending bill provides that health Fortunately, there still is a broad from her broker: plans can not impose preexisting condi- consensus in this country in favor of This letter is to inform you that we have tion limits on individuals who had health insurance reform. Americans contacted all of our standard individual prior group coverage. In fact no pre- want to know that they won’t lose cov- health insurance carriers and are unable to existing condition limits can be im- erage if they or someone in their fam- find one that is capable of writing a policy posed on individuals who join a group ily gets sick. Individuals and busi- for you because of your pre-existing condition. We have been advised by all of the car- health plan if they had continuous nesses want the ability to pool re- riers that they will not consider you for in- group health coverage for the previous sources to get the best insurance cov- surance until you are 5 years out from your 12 months. For individuals leaving a erage possible at an affordable price. time of release from the doctor. group plan, they must have had 18 The Health Insurance Reform Act The Kassebaum-Kennedy bill will months of continuous coverage in order does not seek to change our Nation’s provide assurances to responsible to qualify for an individual policy health care structure drastically. In- Americans. In particular, the bill pro- without any preexisting condition lim- stead, it takes a careful approach to vides portability in two settings: When its. In either case, if individuals have remedy widely acknowledged problems individuals change from one group less than the required months of cov- in the health insurance market. For health plan to another group health erage, their new plan would have to the first time, preexisting condition plan (group to group), and when indi- credit them for the time that they exclusions would be limited, health viduals leave their group health plan were covered. coverage availability and renewability and seek coverage as an individual pol- Most Americans with private health would be guaranteed, and small busi- icyholder in the market (group to indi- insurance receive their coverage ness group purchasing would be easier. vidual). through their employers, and the ma- At the same time, State flexibility For group to group portability, the jority of the uninsured are also tied to would be maintained. bill establishes uniform Federal stand- the workplace. The Kassebaum-Ken- Many States have taken the initia- ards for insurers, health maintenance nedy bill will strengthen the employer- tive and made notable progress by en- organizations [HMO’s], and employers based health care system we now have, acting market-related reforms. But who self-fund their health plan. There and it will help responsible Americans States are unable to achieve the most is a broad consensus that these meas- like Mrs. Miller retain their coverage. effective reforms because some busi- ures should be enacted, and a very In fact, the General Accounting Office nesses have federally protected self-in- broad coalition of business as well as estimates that as many as 21 to 25 mil- sured health plans. This bill provides the insurance industry and advocacy lion people per year could be affected continuity by applying the same stand- groups support these provisions. There by Federal portability standards in all ards to all employment-based plans. is a need to establish uniform Federal markets. This is a good first step. The bill is also notable for what it standards for the group to group port- Mr. KOHL. Mr. President, I rise as an does not do. It won’t require employer ability measures as the bulk of em- enthusiastic cosponsor of the Health mandates, limit provider choice, set up ployer sponsored health coverage is Insurance Reform Act of 1995 and call new bureaucratic health structures, or self-funded and exempt from State reg- on my colleagues to keep this straight- create a global health spending budget. ulation. Under the Employee Retire- forward measure clear of legislative Many strongly believe that health ment Income Security Act [ERISA], land mines. care reform should go farther than this the Federal Government regulates pri- Passing this bill will help address a bill. In fact, many Senators, including vate self-funded employer plans. problem all too common in our health myself, worked hard last Congress on ERISA prohibits States from regulat- care system—the fact that people can comprehensive measures to control ing employer sponsored self-insured lose their insurance coverage when health costs and expand health cov- plans. Therefore, States cannot achieve they get sick even if they have paid erage. But those efforts turned out too all the reforms needed to assure port- their premiums. complex to retain broad support. ability when workers change jobs be- Mr. President, there are a number of We now have a more narrow consen- cause the Federal ERISA law prohibits bipartisan initiatives that can and sus measure that can pass. Yet some States from regulating any group should be passed before we adjourn this Senators may offer a whole host of health plan which is self-funded. fall. Chief among these proposals is amendments to address special con- For those individuals leaving their this Health Insurance Reform Act. cerns. A few of these are popular, oth- group health care coverage and seeking Under the strong bipartisan leader- ers problemmatic. The sponsors of this coverage in the individual market, the ship of Chairman KASSEBAUM and Sen- bill have taken careful steps to ensure bill provides access to coverage to indi- ator KENNEDY, the bill unanimously that the bill is narrow and bipartisan. viduals. The bill also provides States passed the Labor and Human Resources It should remain that way. For that with important flexibility to meet the Committee 8 months ago. It has since reason, I too will oppose controversial, goals of this section of the bill. While languished in the confounding waste special interest amendments. there have been concerns raised regard- zone between full Committee endorse- As we learned from previous ating the bill’s provision to guarantee ment and Senate floor action because tempts at reform, a consensus bill may that insurers make health coverage some are opposed to even narrow be the only way we can pass health re- available to individuals, I think this health reform. form this year. I urge my colleagues to section is important if we are to truly Last Congress the American people refrain from condemning this bill guarantee portability and access to called for comprehensive health re- under a weight of controversial addi- coverage. States currently regulate inform. Unfortunately, consensus could tions. surance provided to individuals who not be reached on a single plan. In- Nonetheless, we should not hold out are not in a group plan. The Federal stead, the country watched in dis- on improvements if they are bipartisan role in this area of the marketplace has appointment as a golden opportunity and avoid endangering final passage. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3547 As a long-time supporter of health good reason to have greater confidence sister is having getting health insur- care fraud and abuse legislation, I be- in their elected officials and this insti- ance. Belinda’s sister has the same con- lieve it is imperative that we act to tution. We should get the job done and dition and can not get affordable tackle rampant abuse. If strong anti- pass the Health Insurance Reform Act health insurance because of her health fraud provisions, such as those in- now. problem. cluded in Senator COHEN’s anti-fraud Mr. BAUCUS. Mr. President, I rise in MONTANA AND HEALTH INSURANCE bill, can be added without stalling the support of this bill. I am very pleased Mr. President, that is wrong. We bill, they most certainly should. Simi- to see that today, Congress is putting should not tolerate it even in one case. larly, provisions helping the self-em- aside its petty divisions and rivalries And the sad fact is that it is not just ployed afford insurance and incentives to work together on a bill that will one case. Thousands of Montanans, and for long-term care may be possible. help people. Today, when the Senate millions of Americans, have concerns However, there are other compelling votes on the Health Insurance Reform just about as grave as those of the Byrd issues that, if attached to the Health Act, we show our support for a biparti- sisters. Insurance Reform Act, may kill this san effort that will address the health As I have walked across the State in bill. We should not ingore those issues. needs of millions of Americans and the past 2 years, a few subjects come They can and should be taken up at a thousands of Montanans. up everywhere. In towns, on ranches, at later date. RECORD OF THE CONGRESS small businesses, and in roadside coffee Mr. President, if we keep this bill That is a truly important step for- shops. The need to raise the minimum clean, we will take a huge step toward ward for this Congress, and not only on wage. The low cattle prices. And the addressing compelling insurance prob- health policy. At the beginning of 1995, fear of losing health insurance. lems facing the Nation. In the process, a lot of Montanans had high hopes for For individuals, today’s bill will Congress will prove that it can act in a this Congress. make a big difference. It will let self- bipartisan fashion to help hard work- But those hopes have vanished in the employed people deduct most of their ing Americans. mess of bumbling revolutionary experi- health insurance costs. Big businesses There are over 40 million people ments and government shutdowns can already do this. Folks who are self- without health insurance in our coun- which the leadership, particularly in employed and buy their own health in- try. I am proud to say that Wisconsin the House has created. surance out of pocket should be able to has one of the lowest numbers of unin- Rather than make people a little deduct it too. That is basic fairness and sured people. However, there are still more prosperous and secure, the Con- decency. With this reform, we raise the too many Wisconsinites without health gress seems to have deliberately done deduction from today’s 30 percent of in- coverage and still too many who fear just the opposite. It has gone from surance costs to 80 percent. It is not all losing their coverage. closing Yellowstone and Glacier, to a the way to 100 percent, but it is a very The Health Insurance Reform Act proposal to let Medicare wither on the big step forward. will not solve all of the problems vine, to bills that would set up a Com- For farmers, ranchers, and small plaguing our health care system, but it mission on closing National Parks and business owners, health insurance will does fill a huge gap by solving job lock. dump all the public lands on the be available and more affordable. We Workers will no longer have to live States. may have to do more down the line, with the fear that if they change their The fact is, the 104th Congress has let but we are making a good start here. jobs, they may lose their health cov- our state down pretty badly. All too And for people like the Byrd sisters erage. often, rather than do something good who have pre-existing health condi- No doubt, there is special interest op- and positive for the people, it has done tions, this means justice and security. position to this bill. It is a rare legisla- something irrational and destructive. No longer will having an illness, no tive initiative that doesn’t have crit- A SECOND CHANCE matter how treatable it is, mean going ics. But this bill is a positive first step. without affordable health insurance. The Health Insurance Reform Act But this health insurance reform is a does not provide a handout to the pub- second chance for the Congress. A sign MEDICARE FRAUD AND ABUSE lic. No one gets a free ride at the ex- that with some more maturity and ex- Finally, we take some initial steps to pense of insurance companies. People perience, we can accomplish something fight health care fraud and abuse, par- must maintain their payments for a good. ticularly in Medicare and Medicaid. full year-and-a-half before qualifying This bill, taken as a whole, means Today, anywhere from 5 percent to 10 for coverage guarantees. They also some more security and stability for percent of our Nation’s entire trillion must be ineligible for another group hard-working people. dollar health care bill goes to fraud. We policy and exhaust their COBRA bene- It means that if you lose your job, need to step up our Federal efforts to fits. Finally, people will still have to you won’t also face the loss of your fight this problem and I support efforts pay the rates charged by insurance health insurance and the constant to do so. companies. These requirements were threat of lifelong debt in the case of an However, I would caution that the added to minimize affects on insurance accident. savings we get from fighting fraud and premiums. However, it is important to It means that if you own a small abuse in Medicare or Medicaid must go note that States would not be pre- business, you will have more ability to to guarantee solvency for these essen- vented from going further on insurance buy insurance for yourselves, your tial programs. It should not pay for reform. family and your employees. new tax breaks as last year’s Medicare Mr. President, you cannot satisfy ev- And it means you can upgrade your cuts would have done, nor to pay for eryone, but this bill comes close. While skills and change your job without untested ideas like Medical Savings there are opponents and critics on both being denied insurance due to health Accounts. sides, a large majority of Americans troubles. CONCLUSION support passage. BELINDA BYRD Mr. President, I am very happy to be If Senators need more impetus to Look at the case of Belinda Byrd here supporting this bill. It is a sign allow this bill to go forward, the Gen- from Great Falls, Montana. that Congress is getting the message. eral Accounting Office estimates that She wrote to me last year to explain Moving away from partisanship and passing the Health Insurance Reform her case and that of her sister. Belinda revolutionary experiments. And mov- Act will help 25 million Americans suffers from hydrocephalus, or ‘‘water ing toward practical, effective steps each year obtain or retain health cov- on the brain,’’ and she is about to un- that makes life better and more secure erage. That evidence alone is a compel- dergo her fourth brain surgery. for Montanans and all Americans. ling reason to pass a clean bill. She is fortunate enough to receive I appreciate the work of the Labor Mr. President, Americans have had coverage through the Government Committee Chair, Senator NANCY little proof this session that Congress Champus program. But she wrote to me KASSEBAUM and her counterpart, Sen- can act to help solve problems plaguing about the problem with pre-existing ator TED KENNEDY. They have done their families. Let’s give them one conditions because of the problems her this country a great service with their S3548 CONGRESSIONAL RECORD — SENATE April 18, 1996 work on crafting this bill and moving that this bill, because it is so narrowly In California, it’s even worse with it through the legislative process. I targeted at certain insurance practices, only about 50 percent of people covered hope it will get the Senate’s support. could have unintended consequences. I by employer sponsored insurance in Mr. BRADLEY. Mr. President, I am hope that if rates do increase sharply, 1994; and very pleased to lend my strong support or if insurers cut back certain areas of With California’s unemployment re- to the Kennedy-Kassebaum health in- business, Congress should be willing to maining above 7 percent for the last 5 surance reform bill. At long last, we look at slightly broader solutions that years—employer sponsored insurance is are actually moving forward on the would address the health care crisis getting more scarce. basic reforms that will make health in- without unintended consequences. Preexisting conditions: The problem surance once again serve the function I am generally confident, however, of people being denied insurance be- of insuring and protecting American that this legislation will serve the pur- cause of preexisting health conditions families against devastating illness or pose of protecting American families is one of the most serious concerns peo- injury. from the double risk of economic and ple have today about their health care. The problem of health insurance is health insecurity. I hope action will be As a matter of fact, 81 million Ameri- right at the center of the economic in- completed quickly so that the Presi- cans have preexisting health conditions security gripping American families. dent can implement these reforms that could affect their health insur- The 40 million or so people who have no without delay. ance; insurance live in fear that a headache Mrs. FEINSTEIN. Mr. President, I Over 9 million Americans changed or stomach-ache will turn out to be a rise to support the Kennedy-Kasse- jobs in 1995; and costly illness. But other workers, who baum legislation on health insurance have health insurance, are hardly reform. This legislation, while not the Millions more want to change jobs. blessed with security and comfort. As comprehensive health care reform The GAO estimates that as many as 4 the American economy changes, they called for earlier, takes an important million employees are ‘‘locked into’’ know that they can lose their jobs at and long overdue step in addressing the their jobs because they fear that the any moment, with no certainty of insecurity many Americans feel about insurer for the next employer would being able to find new insurance, or if their health insurance. refuse to insure them because of a pre- they do find new insurance, it might Americans expect their insurance to existing health condition. not cover the one medical concern that be there when they need it. That is why Take cancer as an example: is most likely to become a problem. we buy it. And yet many Americans Over 1 million people are diagnosed We have lost the idea of health insur- find that, just when they need their with cancer each year. Over 10 million ance as real insurance, in which we all health insurance, it is not there, or Americans alive today have a history pay premiums to spread our own risks they are denied coverage, or they can’t of cancer. over a lifetime, and to share risks afford the policy premiums. About 184,300 new cases of breast can- across a larger number of people. In- This bill provides a measure of health cer will be diagnosed this year—the stead, health insurance has increas- security in a number of ways. most common form of cancer among ingly become a short-term privilege, No arbitrary, discriminatory termi- women. And, 44,300 will die of breast that comes and goes with the job, that nations: This bill protects employers cancer this year. only comes with certain kinds of jobs, from having their policy terminated if We probably all have some condition. and that comes with exceptions and their employees incur large medical And yet most policies sold to individ- uncertainties. When you combine that costs. Insurers could not impose pre- uals, and over half of all plans provided with the increasing insecurity about existing condition limitations for more by employers, deny coverage for some jobs, working families can’t afford the than 12 months. This means that em- period of time for the conditions most risk. People are trapped in jobs just to ployees could change jobs without fear likely to require insurance. keep their insurance, rather than mov- of losing their insurance. Guaranteed access: Under this bill, This bill addresses this serious prob- ing on to find the job that would better insurers are required to offer insurance lem by prohibiting insurers from im- use their skills, or setting out as an en- to all groups, regardless of the health posing preexisting conditions for more trepreneur, as many dream of doing. than 12 months. This bill would restore the original status of any member of the group. Nongroup coverage guaranteed: It The Problem for Small Employers: concept of insurance to health care. It protects people who leave their job Small employers acting alone often would allow workers to change jobs from losing access to coverage. People lack the leverage to negotiate good without putting insurance coverage at who have had 18 months of prior em- prices and benefits that large employ- risk, to move from group to individual ployer group coverage and have ex- ers can get. More than half of all unin- plans, and to buy insurance despite a hausted their extended coverage— sured employees work in small firms. preexisting condition. It will help through COBRA—would be guaranteed Administrative costs are higher for small businesses afford insurance, and access to an individual policy. small groups. One survey shows that help people who want to start their Enlarging small groups: The bill cre- health costs for large employers de- own businesses to do so without worry- ates incentives for small employers to clined 1.9 percent in 1994, while small ing about the arbitrary nature of form cooperatives to strengthen their employers had an increase of 6.5 per- health insurance. It will help only bargaining power with insurance com- cent. some of the 40 million without insur- panies. ance to become insured, but it will pre- This bill creates incentives for small Need for the bill: The need for insur- employers to form cooperatives to vent that number from continuing to ance reform is very real: increase. strengthen their bargaining power with Over 41 million Americans have no insurance companies. Mr. President, I hope that after this insurance. That is a 4-million increase This approach can work. In 1993, Cali- legislation becomes law, we will not since 1993; stop here but continue to closely watch In California, almost 23 percent of fornia formed a health insurance pur- the health insurance market and make the population is uninsured—7.4 mil- chasing cooperative for small busi- whatever further changes need to be lion people. And two-thirds of these un- nesses; 2,500 small businesses joined. made to keep the focus on health and insured people are under the age of 34; One year after formation, rates were security. The first such change, which Twenty-three million Americans lose 10 percent to 15 percent lower than con- I hope will occur by Mother’s Day, and their insurance every year; ventional insurance plans. perhaps even before this bill gets Eighteen million people change in- Individuals: Finally, there are 10 to through conference, is to end the prac- surance policies annually when some- 20 million individual Americans seek- tice of insurance companies forcing one in their family changes jobs; ing to buy insurance on their own. new mothers and their infants out of Employer sponsored insurance is de- These people, who are not part of a the hospital within a few hours, even clining, going from 61 percent of em- large pool where risk can be offset, against the best judgment of the moth- ployed workers in 1986 to 54 percent in often find themselves excluded or un- er’s doctor. In general, I am concerned 1996; able to afford the premiums. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3549 Genetic discrimination: I especially cal Center, reached similar conclu- This bill can help make health insur- appreciate the agreement of Senators sions. ance available to many who need it and KASSEBAUM and KENNEDY to include in Here are a few examples of real-life who want to buy it. It can bring peace the managers’ amendment provisions cases: of mind to millions of Americans. It barring genetic discrimination by em- An individual with hereditary can restore insurance to what insur- ployer-based plans. hemochromatosis—excessive iron—who ance is supposed to be. The language included in this bill is runs 10K races regularly, but who had I hope my colleagues will join me similar to S. 1600, a bill I introduced no symptoms of the disease, could not today in voting for this important bill. with Senator MACK, to prohibit health get insurance because of the disease. Ms. SNOWE. Mr. President, I rise in insurers from denying health coverage An 8-year-old girl was diagnosed at 14 support of The Health Insurance Re- based on genetic information of the in- days of age with PKU—phenyl- form Act of 1995, and would like to sured or applicant for insurance ketonuria—a rare inherited disease, thank the Chairwoman of the Labor Last fall, as co-chairs of the Senate which if left untreated, leads to retar- and Human Resources Committee, Sen- Cancer Coalition, Senator MACK and I dation. Most States require testing for ator KASSEBAUM, for bringing this com- held a hearing on the status and use of this disease at birth. Her growth and mon sense health care reform bill to genetic tests. Witnesses testified about development proceeded normally and the floor. Her knowledge and efforts in the great promise of genetic testing in she was healthy. She was insured on the area of health care have made predicting and managing a range of dis- her father’s employment-based policy, progress on this issue possible, and her eases, but they also cautioned about but when he changed jobs, the insurer ability to craft consensus on this com- the potential for discrimination. at the new job told him that his daugh- plex issue deserves enormous praise In the past 5 years, there has been a ter was considered to be a high risk pa- from both sides of the aisle. virtual explosion of knowledge about tient and ‘‘uninsurable.’’ I would also like to compliment the genes. Scientists are decoding the basic The mother of an elementary school ranking Member, Senator KENNEDY, units of heredity. student had her son tested for a learn- and the rest of my colleagues who We know that certain diseases have ing disability. The tests revealed that serve on the Labor and Human Re- genetic links, including cancer, Alz- the son had Fragile X Syndrome, an in- sources Committee—the strong biparti- heimer’s disease, Huntington’s disease, herited form of mental retardation. san vote that brought this bill out of cystic fibrosis, and Lou Gehrig’s dis- Her insurer dropped her son’s coverage. Committee restores my hope that bi- ease. Altered genes play a part in heart After searching unsuccessfully for a partisanship is not completely lost in disease, diabetes, and may other more company that would be willing to in- this Chamber. It has been interesting to me, having common diseases. sure her son, the mother quit her job so ‘‘survived’’ the health care wars of the These advances pose some potential she could impoverish herself and be- last Congress, to read some of the problems. Witness after witness at our come eligible for Medicaid as insurance things that have been written about hearing discussed the potential and the for her son. this bill. Talk about role reversal—you reality of health insurance discrimina- Another man worked as a financial now have some members on this side of tion based on genetic information. officer for a large national company. the aisle complaining that S. 1028 does They recounted actual cases where His son had a genetic condition which not go far enough, and we have mem- insurers denied or refused to renew left him severely disabled. bers on the other side of the aisle com- coverage based on genetic information. The father was tested and found to be plaining that the bill isn’t small This type of discrimination could have an asymptomatic carrier of the gene enough. What a difference a year which caused his son’s illness. His wife a catastrophic impact if it is not ad- makes! dressed: and other sons were healthy. But one thing that has not changed is About 15 million people are affected His insurer initially disputed claims the fact that the American people con- by one or more of the over 4,000 cur- filed for the son’s care, then paid them, tinue to demand changes in the health rently identified genetic disorders; ge- but then refused to renew the employ- care system. This bill, while not as netic disorders account for one-fifth of er’s group coverage. The company then large or as complex as the changes we all adult hospital occupancy, two- offered two plans. All employees except considered in 1994, would provide secu- thirds of childhood hospital occupancy, this father were offered a choice of the rity to millions of Americans—25 mil- one-third of pregnancy loss and one- two. He was allowed only the managed lion according to the General Account- third of mental retardation; and an care plan. ing Office. It would reassure them that even larger number of people are car- A woman was denied health insur- their health care coverage could not be riers of genetic disease. The June, 1994 ance because her nephew had been di- taken from them if they changed jobs, issue of Scientific American estimated agnosed as having cystic fibrosis and if they became pregnant, if their fam- that every person has between 5 and 10 she was found to carry the gene that ily situation changed, or if they lost defective genes though they often are causes the disease. The insurer told her their jobs. not manifested. that neither she nor any children she It does not solve all our Nation’s Insurance companies are poised to might have would be covered unless her health care problems—but we tried the discriminate: husband was determined not to carry complicated, complex, approach with a In a 1992 study, the Office of Tech- the CF gene. more than 1,000 page bill in 1994 and we nology Assessment found that 17 of 29 These are real horror stories. got nowhere. So what is wrong with insurers would not sell insurance to in- If people with genetic conditions or taking a step in the right direction? It dividuals when presymptomatic testing predispositions cannot buy health in- doesn’t mean that this is the only revealed the likelihood of a serious, surance on the private market, they change that Congress can or should chronic future disease. usually have nowhere to turn. To qual- make. Fifteen of the thirty-seven commer- ify for Medicaid, the primary public It is said that every journey begins cial insurers that cover groups said health insurance program for the non- with a single step. So let us consider that they would decline an applicant; elderly, families have to ‘‘spend down’’ the Kassebaum-Kennedy bill before us and or impoverish themselves. today as Congress’ first step on the Underwriters at 11 of 25 Blue Cross- Fear of discrimination can also have road to overhauling our health care re- Blue Shield plans said they would turn adverse health effects. If people fear reform system so that all Americans will down an applicant if presymptomatic taliation by their insurer, they may be have access to affordable, quality testing revealed the likelihood of dis- less likely to provide their physician health care by the provider of their ease. with full information. They may be re- choice that can never be taken away. The study also found that insurers luctant to be tested. This means that The Health Insurance Reform Act of price plans higher—or even out of physicians might not have all the in- 1995 will achieve part of that shared reach—based on genetic information. formation they need to make a solid di- goal by ensuring access to health care Another study conducted by Dr. Paul agnosis or decide a course of treat- that can not be taken away. It will en- Billings at the California Pacific Medi- ment. sure that workers who are offered a S3550 CONGRESSIONAL RECORD — SENATE April 18, 1996 new job opportunity with a different problems, but it is a big step in the condition exclusions to deny coverage company will be able to accept it—in- right direction and will help millions to those who most need health insur- stead of turning it down because they of Americans retain their health care ance, and the lack of portability when are afraid that a pre-existing condition coverage. workers change jobs. Addressing these will prevent them from obtaining I would like to address one of the ar- issues will guarantee access to health health care coverage at their new firm. guments being made against this bill. insurance for an estimated 25 million It will ensure that workers who lose Opponents of reform have argued that Americans who would otherwise be their job and have had insurance cov- while the bill ensures access, the prac- subject to these barriers. erage for the last 18 months will be tical problem will be that the cost of However, it is important to remem- able to obtain an individual policy. premiums will soar, making coverage ber that, although this is an extremely They will still have a lot to worry unaffordable for many. The American important step, it is only a first step. about—but at least they will know that Academy of Actuaries, however, has es- It guarantees access to health insur- they can obtain insurance for their timated that any premium increases ance, but it does not guarantee that family. would be quite small, ranging between the available insurance will be afford- And it will ensure that small busi- 2 and 5 percent. In fact, this potential able. And, as a representative of a rural nesses will no longer find themselves increase is lower than the increases we State, I wish this bill improved access dropped from the insurance roles be- have seen in recent years: over the last to health care services in medically un- cause one of their workers has medical 10 years the average rate paid for indi- derserved areas. Thus, when we com- problems. vidual insurance premiums has in- plete the first step by enacting this Every Senator—every Member of creased between 8 and 15 percent annu- bill, our health insurance reform jour- Congress—has received letters or spo- ally. ney will not be complete. There is lots ken with individuals who have been de- And in my own State of Maine, which of room for further progress in making nied coverage or had their coverage—or has had a law on the books guarantee- health care available and affordable. their firm’s coverage—dropped because ing issue for employers with fewer than Mr. President, with that caveat, let of a preexisting condition. Yet these 25 employees since 1992 and guaranteed me explain why this bill is so impor- are the people who need the coverage issue for individuals since 1993, these tant. Today, millions of Americans are most. It is estimated that 81 million changes have not resulted in premium denied insurance because they or some- Americans suffer from a preexisting increases that are outside the bounds one in their family have so-called pre- medical condition that endangers their of the normal increases in the cost of existing conditions. This means the access to health care coverage. This health care coverage. family of a child born with a heart bill will provide them that protection. By passing this bill we will be renew- murmur can’t find insurance because The Kassebaum-Kennedy bill re- ing our commitment to the American no insurance company wants to take stricts health insurance exclusions on public that we have heard and have un- the risk of covering the costs of treat- preexisting conditions by prohibiting derstood their demand that we act on ing this heart condition. And it means insurers and employers from limiting health care reform. It will provide se- that someone who has paid insurance or denying coverage under group plans curity for millions of Americans who premiums through an employer-spon- for more than 12 months for a medical currently fear losing their health care sored plan but then leaves that job be- condition that was diagnosed or treat- coverage, and will provide access to cause she needs a major medical proceed during the previous 6 months. For more affordable coverage for our small dure—for example, an organ trans- example, if an individual had been cov- businesses as they band together to en- plant—may not be able to get insur- ered under another employer’s plan for hance their purchasing power. Passage ance when she tries to return to the 8 months, they would only have to of this bill will leave us with a long workplace. That’s just wrong. No one work for 4 months in their new job be- road ahead of us to address the out- should be forced to stay in a job she fore being covered. standing issues of health care reform, hates because she fears she will lose The bill also prevents group health but at least we will finally be on the her health insurance if she tries to plans from excluding any employee road. change jobs. And no one who has paid from coverage based on health status I urge my colleagues to join me in insurance premiums faithfully for and requires insurers to renew cov- supporting passage of this bill and I years should lose his insurance because erage for both groups and individuals yield the floor. he becomes sick and an insurance com- as long as the premiums were paid. Mr. CONRAD. Mr. President, I want pany refuses to renew his employer’s Once an individual had been covered to express my strong support for S. policy. for 12 months, no new pre-existing con- 1028, the Health Insurance Reform Act. This bill fixes these problems. It dition could ever be imposed, even if Over the past several years, access to strictly limits preexisting condition they changed jobs or insurance plans. health care has been one of the most exclusions when a person or a family The bill also will help make health important issues facing Americans. Far applies for health insurance for the care coverage more affordable for too many Americans—over 40 million first time. It prohibits any preexisting America’s small businesses by lifting this year—are uninsured, and an equal condition exclusions for people who barriers to the formation of private, number are affected each year by pre- have faithfully paid their insurance voluntary coalitions to purchase existing condition exclusions and the premiums for at least 18 months and health insurance. For states like job lock that results when workers fear then need to get new insurance because Maine, where small businesses are the that they will lose all or part of their they change jobs or lose their jobs. backbone of our economy, this provi- insurance if they change jobs. This means that people who change sion will be particularly helpful. Band- Two year ago, I and many of my col- jobs can rest assured that their new ining together to obtain health insurance leagues spent countless hours trying to surance policy will fully cover them. coverage will give our small businesses find a compromise health care reform The bill also requires insurance com- the ability to spread the risk among a bill that would ensure access to health panies to provide coverage to any em- larger population and to use their ne- insurance and health care, maintain ployer with two or more employees. gotiation power to get quality coverage choice and quality for consumers, and This keeps insurance companies from at the best price. This bill will give em- control the skyrocketing growth in denying insurance to certain types of ployers and employees the ability to health care costs. Given the impor- business just because the company obtain quality coverage at a competi- tance of this effort to millions of thinks the employees are likely to get tive price. Americans, I was disappointed that our sick. It prevents the cancellation of The Health Insurance Reform Act of effort to find a moderate solution to coverage for a company just because 1995 is a commonsense approach to a these issues was blocked. one of its employees has gotten sick serious problem in this country—access The bill before us today takes a mod- and incurred large medical costs. And to affordable, quality health care that est step in the right direction. It at- it allows small businesses and other can never be taken away. It is not the tacks the most egregious barriers to groups to band together in voluntary complete answer to our health care health insurance: the use of preexisting cooperatives to bargain as a larger April 18, 1996 CONGRESSIONAL RECORD — SENATE S3551 group for lower premiums and better All too often, people are forced into a limiting the ability of health insurers coverage. situation where they feel they must re- to deny coverage for people with pre- Finally, the bill requires individual main in a job they would rather leave existing medical conditions. Once an insurance companies to provide cov- just because they have long-term initial exclusion period of no longer erage to individuals who lose their job health care needs and have no other than 12 months was exhausted no pre- or become self-employed and exhaust source for insurance other than existing condition exclusion could ever their conversion coverage under through their employer. This ‘‘job be applied to a policy holder again. It COBRA. Coming from a State with lock,’’ coupled with skyrocketing would also guarantee that a group or large numbers of self-employed farmers health care costs, makes the prospect individual who purchased an insurance and other small business men and of paying for your own medical costs policy and faithfully paid their pre- women, I am keenly aware of the fra- without insurance, a frightening, and miums, could never have their cov- gility of the individual insurance mar- financially crippling situation. People erage taken away from them or can- ket. Average premiums in this market simply can’t afford to take this risk. celed. are much higher than in the group in- Over the past few years, my home Mr. President, the health care debate surance markets because of adverse se- State of Colorado has taken a very pro- is one that goes to the heart of the lection. gressive approach in dealing with the quality of life of all Americans. Access Although critics of this so-called issues of health insurance portability to quality health care is a fundamental group-to-individual portability provi- and preexisting conditions and has human need and is in my view a fun- sion greatly exaggerate its likely effect worked cooperatively with the health damental right in a democratic soci- on this market, their arguments are insurance industry to develop what ev- ety. Our challenge is to achieve a situ- not groundless. This provision will re- eryone seems to recognize as a positive ation in which every American has ac- sult in more sick people entering the step forward. I have often had constitu- cess to affordable, quality health care. individual market. In order to prevent ents tell me how surprised they are to While there is much more that I would this from greatly increasing premiums learn how little other States have done like to do to ensure that each and for those who are already in this mar- in the area of health insurance reform. every American is guaranteed the same ket, I hope States will proceed very The Colorado State legislature was in- high quality comprehensive care, the carefully in applying rating restric- strumental in making this law, and in bill before us today makes important tions that could inadvertently worsen conjunction with employers, have steps toward accomplishing this goal the adverse selection inherent in this forged a partnership that seeks to and improving the lives of over 25 mil- market. I am encouraged that the bill cover as many Coloradans as possible lion Americans and I urge its imme- gives States great flexibility in design- in the most cost-effective manner. In diate passage. ing their own approaches to meet the fact, many of the safeguards and re- The PRESIDING OFFICER (Ms. goals of this legislation. This allows forms already instituted within the SNOWE). The Senate majority leader. them to develop innovative solutions State of Colorado are very similar to Mr. DOLE. Madam President, I think tailored to the special needs of their the Kassebaum, Kennedy bill. Cur- we have partial agreement here so we population while ensuring that workers rently, there are roughly 20 States that can move ahead. I want to associate still have access to affordable health don’t have this kind of insurance pro- myself with most of the remarks, prob- insurance without unreasonable pre- tection, and I believe that through this ably all of the remarks made by my existing condition exclusions. bill, we can cooperatively work to mir- colleague from Texas. We do not want Mr. President, this legislation takes ror at the Federal level some of the to have to refight that battle again. I a major step forward in reforming the provisions the State of Colorado al- think he raised some excellent points. I private insurance market. It removes ready enjoys. hope in part they have been addressed the biggest barriers to health insur- I feel this bill will establish a much- in the so-called Dole-Roth amendment, ance and will enable Americans to needed standard for the health insur- that I think does improve this bill sub- change jobs freely without fear of los- ance industry and will work toward stantially. ing all or part of their insurance cov- achieving the goal that all Americans But I ask unanimous consent that erage. I urge my colleagues to reject have access to more cost-effective and during the consideration of S. 1028, the the controversial special-interest pro- affordable insurance. I don’t believe health insurance reform bill, and fol- visions added in the House that threat- anyone can deny the need for this. lowing opening statements and adop- en to kill this important effort, and to Mr. President, I yield the floor.∑ tion of the managers’ amendment as instead pass a bill that commands Mr. SARBANES. Mr. President, I rise original text, the majority leader or broad bipartisan support. today to express my support for S. 1028, his designee be recognized to offer his Mr. CAMPBELL. Mr. President, I The Health Insurance Reform Act of amendment concerning tax provisions take this opportunity to support the 1995. While S. 1028 is not the com- and medical savings accounts. health insurance reform bill, offered by prehensive reform of our health system I further ask that during the pend- Senators KASSEBAUM and KENNEDY. I which would be necessary to guarantee ency of the Dole amendment, Senator am pleased to be a cosponsor of this quality health care for all Americans, KASSEBAUM be authorized to move to legislation. it does make important strides in re- strike the medical savings account pro- Reforming our Nation’s health care ducing the barriers to coverage for over vision, there be 2 hours equally divided system has been a concern for many 25 million people in this Nation. in the usual form on the motion to Americans. I believe the bill before us The legislation before us today, S. strike, and that no amendments be in today, although limited to the health 1028, would attempt to make modest order to the Dole amendment or the insurance industry, is a significant incremental reforms in the health in- language proposed be stricken prior to step toward addressing some of the is- surance market by addressing only the vote on or in relation to the mo- sues we face with health insurance— those provisions upon which there is tion to strike. cost, portability, and preexisting con- broad bipartisan agreement. In fact, The PRESIDING OFFICER. Is there ditions. Although this legislation will the President and over 65 of my Senate objection? not fix all of our health care problems, colleagues are in agreement, support- Several Senators addressed the I think we all need to recognize that it ing this legislation which would have Chair. does make some progress toward ad- an immediate impact on the lives of Mrs. KASSEBAUM. Reserving the dressing these issues. over 25 million people. right to object, I would just like to ask Currently, reports indicate there are For these Americans who are unable the majority leader, when we first dis- an estimated 40 million uninsured to change jobs, who cannot leave their cussed this we had 2 hours equally di- Americans. This, in and of itself, high- jobs to start a new business, or who vided. So much time elapsed since lights one of the biggest problems lose their jobs, S. 1028 would provide an then, I suggest that we would like to within the health care industry—the assurance of continued access to health have the vote no later than 3:45, and availability of affordable, flexible in- insurance coverage. It would end the time then be equally divided until that surance policies. incidence of job lock in this country by time because we have already eaten up S3552 CONGRESSIONAL RECORD — SENATE April 18, 1996 so much. It had been my hope we could In other words, they were ‘‘pay-fors,’’ does improve the bill and it does pro- get through to some other amendments and if the MSA’s were stricken we will vide a great deal of opportunity for as well, since we had some considerable take those ‘‘pay-fors’’ out of the bill. I many Americans who are now denied time, and still will, on discussing the think it has been cleared by both Sen- health care. Let me tell you why. provisions of the Finance Committee ator KASSEBAUM and Senator KENNEDY. I am committed to passing this bill package. If that would be agreeable? The PRESIDING OFFICER. Without and the amendment is designed to help Mr. DOLE. Obviously, I would have objection, it is so ordered. make that happen. no objection to that. I will modify the Mr. DOLE. I will send the amend- For many years self-employed indi- request to say the vote occur not later ment to the desk on behalf of myself, viduals have been uncertain as to than 3:45 p.m., and that any time be- Senator ROTH, and others. whether they could deduct their health tween the time we start the debate on Mrs. KASSEBAUM addressed the insurance premiums. And the Demo- that motion and 3:45 p.m. be equally di- Chair. crat-controlled Congress refused to vided. The PRESIDING OFFICER. The Sen- make the deduction permanent to en- Mr. GORTON. Madam President, re- ator from Kansas. sure that it would apply year after serving right to object. Amendment No. 3675 year. The PRESIDING OFFICER. The Sen- Last year, one of the first things Re- (Purpose: To provide for a substitute publicans did when we took control of ator from Washington. amendment) Mr. GORTON. Madam President, the the House and Senate was to make this Mrs. KASSEBAUM. Madam Presi- deduction permanent, and to increase Senator from Washington would like a dent, first I send to the desk a sub- clarification. I have just presented a it to 30 percent. stitute amendment and ask it be con- But we said then and we say now that small technical amendment to the Dole sidered original text for purpose of fur- amendment to the chairman of the Fi- 30 percent is not enough. The amend- ther amendment. ment I now offer would raise the deduc- nance Committee. I want that amend- The PRESIDING OFFICER. The ment to be in order. tion for the self-employed to 80 percent clerk will report. by phasing in increases over the next 10 If the understanding is that second- The legislative clerk read as follows: degree amendments would be in order years. The Senator from Kansas [Mrs. KASSE- This will provide equity and much if the Dole amendment is not tabled or BAUM] for herself and Mr. KENNEDY, proposes needed tax relief to farmers, small rejected, then I will have no objection. an amendment numbered 3675. business men and women, and other I just want to make certain that before (The text of the amendment is print- self-employed Americans. the Dole amendment is adopted that it ed in today’s RECORD under ‘‘Amend- My attempts to raise the deduction is itself subject to amendment. Is that ments Submitted.’’) for the self-employed are not new. An correct? Under the unanimous-consent The PRESIDING OFFICER. Under amendment I offered last year passed request? the agreement, the amendment is the Senate with strong bipartisan sup- Mr. DOLE. That will be—let me just agreed to and is considered as original port, but that did not stop the Presi- proceed with the request. text. dent from vetoing it, just as he vetoed Mr. GORTON. I just want clarifica- The amendment (No. 3675) was agreed our $500 per child tax credit. tion my amendment will be in order to. My amendment will also provide im- some time before the adoption of the AMENDMENT NO. 3676 TO AMENDMENT NO. 3675 portant tax relief regarding long-term Dole amendment. care expenses. The Internal Revenue Mr. DOLE. Is it an amendment to the (Purpose: To amend the Internal Revenue Code of 1986 to improve health and long- Service has not seen the wisdom to Dole amendment or a separate amend- term care coverage in the group and indi- allow taxpayers a deduction for long- ment? vidual markets by making health and long- term care expenses or premiums paid Mr. GORTON. An amendment to the term care insurance more accessible and on long-term care policies. Dole amendment. affordable) So this amendment is needed to force Mr. DOLE. I think the way it is going Mr. DOLE. Now I ask my amendment the IRS to recognize that expenses to to work, it would be in order. Because be called up. care for those unable to care for them- I would hope to have, if the motion to The PRESIDING OFFICER. The selves are legitimate medical expenses strike fails, we would then get on the clerk will report. that should be deductible. Dole amendment. But I could not get The legislative clerk read as follows: It is in the best interest of the coun- that agreement, so the answer would The Senator from Kansas [Mr. DOLE], for try to provide appropriate incentives be yes. himself, Mr. ROTH, Mr. NICKLES, Mr. PRES- for families to give proper long-term Mr. GORTON. I have no objection. SLER, Mr. LOTT, Mr. CRAIG, Mr. MCCONNELL, care for family members or to plan for Mrs. BOXER. Madam President, I Mr. COVERDELL, Mr. GRASSLEY, Mr. D’AMATO, future expenses, such as by purchasing think this could be accommodated eas- Mr. GREGG, Mr. SANTORUM, Mr. SHELBY, and long-term care insurance. Families ily. I have been waiting just to make a Mr. FAIRCLOTH, proposes an amendment want to care for their own and the IRS 3-minute statement on the overall bill. numbered 3676 to amendment No. 3675. should not stand in the way. I greatly would appreciate having that Mr. DOLE. Madam President, I ask This provision is particularly impor- opportunity before we get into the de- unanimous consent that reading of the tant for Americans who are likely to bate on the medical savings account. amendment be dispensed with. face these expenses in the near future Mr. DOLE. I will be happy to accom- The PRESIDING OFFICER. Without for their parents and grandparents. Ex- modate the Senator from California. objection, it is so ordered. penses to provide long-term care of a Mrs. BOXER. I thank the majority (The text of the amendment is print- disabled or elderly relative could bank- leader. ed in today’s RECORD under ‘‘Amend- rupt a family. We cannot and will not The PRESIDING OFFICER. Is there ments Submitted.’’) let that happen. And neither should my any objection? Without objection, it is Mr. DOLE. Madam President, I will Democratic friends, although they so ordered. explain, as will the distinguished chair- have voted against this relief in the Mr. DOLE. The vote will occur then. man of the committee, Senator ROTH, past and the President has already ve- Also following that vote the Senator explain in some detail what this toed this tax relief once before. from North Dakota would like 15 min- amendment does. It is a very impor- I have also included medical savings utes in a general statement. Prior to tant amendment. It is about a $10 bil- accounts in this amendment. You may discussion, then, the Senator from lion amendment. It is paid for. And it have heard a lot about MSA’s already. California would have 3 minutes. does help make health care more avail- But let me tell you about them. First I also ask, if the Kassebaum motion able and more affordable. That is the of all, they are hardly a radical new to strike is agreed to, then the Dole thrust of this bill and that is why, even concept. They are being used today in amendment be immediately modified though we certainly want to accommo- 13 States and have enjoyed bipartisan to reflect that chapters 2 and 3 of sub- date Senator KASSEBAUM and Senator support for many years. title (f) of title IV be withdrawn. KENNEDY, as far as amendments are MSA’s provide individuals with Let me explain what that is. concerned, we think this amendment choice and flexibility. If an individual April 18, 1996 CONGRESSIONAL RECORD — SENATE S3553 chooses to accept an MSA, the individ- tal health insurance bill that would long-term care expenses so that fami- ual can tailor his or her own health solve many of the problems with the lies have real incentives to plan for care to his or her own needs. Individ- availability and affordability of insur- their later years. It also provides for uals would have their own personal ance. tax-exempt high-risk pools, and allows savings accounts dedicated to health During the Bush administration, for tax-free accelerated death benefits. care spending—similar to the way they however, the Democrat-controlled Con- In addition, this amendment makes have IRA’s for their retirement sav- gress refused to give President Bush’s medical savings accounts available to ings. proposal the time of day. all Americans. Under the MSA proposal in this And then came the Clinton adminis- Medical savings accounts are not a amendment, individuals could purchase tration, and President Clinton’s insist- new concept and have enjoyed biparti- a high-deductible plan and then use the ence that turning the American health san support. My view is that medical money they accumulated in their sav- care system over to the Federal Gov- savings accounts are another choice for ings account, up to the deductible ernment was the only solution. It was Americans. They may not be right for limit, for health care expenses. They a solution chock full of mandates, Gov- everyone. They may appeal to many could deduct the amount they contrib- ernment intrusion, and untold costs. others. They are included in this ute to the MSA and the savings would And the American public took one good amendment as another option. Choice, accumulate tax free. look at it and said, ‘‘No thanks.’’ after all, is one of the greatest virtues Who could argue against providing From almost the very first day of the of American health care. additional options and flexibility? The Clinton administration through the en- These are all provisions to help make answer is the same people who thought tire long national debate over the insurance more affordable thereby in- that the best way to reform the health President’s plan, I said the same thing creasing the number of people who are care system was to hand it over to the day after day after day. And what I insured. Federal Government—to impose more said was this: Fix what needs fixing, Madam President, this Congress has mandates and Government controls. makes changes in the insurance mar- worked very hard to keep the promises The American people are thankful that ket so that more Americans are able to we made to the American people when the Democrat efforts to turn the health obtain and afford health care, and they gave us a majority. This bill rep- care system over to the Government leave the many very good parts of resents relatively noncontroversial failed, and they hope that Democrats American health care alone. needed change—change we have prom- will fail in their effort to block this Here we are, however, 2 years later, ised for a long time. We owe it to the amendment. and still talking about insurance re- millions of Americans who need our Let us remember that the Joint Tax forms that are still badly in need. And help to do today what we should have Committee recently analyzed this MSA the tragedy of that, Mr. President, is done several years ago. proposal and concluded that 88 percent that there are millions of Americans Passage of this bill will not only im- of the MSA tax benefits would go to who could have been helped these past prove our health care system, it could those making under $100,000 a year, 2 years, had President Clinton not in- very well restore the faith of the Amer- with 78 percent of the benefits going to sisted on his plan or nothing. ican public that the work for the Con- those making under $75,000 a year. Madam President, our first priority gress is not just a series of political I urge my colleagues on both sides of is to start with portability. This will stalemates. Even in an election year, the aisle to join with me in support of assure that no American is denied cov- we can work on a bipartisan basis to substantial tax relief for Americans. Madam President, health insurance erage because he or she changes or pass legislation that will improve the reform is, by no means, a newly de- loses a job. I am committed to passing lives of so many Americans. Let me indicate that the distin- bated issue in this Chamber. In fact, it that change because it will help mil- guished Senator from Maine, Senator predates many individuals in this lions of job-locked Americans with pre- town. The concern about the availabil- existing medical conditions and their COHEN, will discuss his part of this ity and affordability of health insur- families. amendment, proposals to clamp down ance goes back as early as the Nixon As I have said, eliminating job lock on health care fraud and abuse. Sen- administration when President Nixon should have passed at least 2 years ago. ator COHEN has been working on it for declared that the American health care Regrettably it did not. a number of years, and they save about system was in need of repair, particu- Before we get much further into this $3 billion. They are a very important larly when it came to affordability. debate, I want to underscore at the part of this overall amendment. Madam President, that was 25 years outset that it is very important that I will just say, as I said earlier, this ago. Since then, there have been dozens we pass a bill, once and for all, that is a very important piece of legislation. of health care bills debated in this can be signed into law. There is no hid- It is a bill that should be passed. It is Chamber—the Bentsen bill, the Dole- den agenda—no surprises—no smoke a bill that can be signed into law. Packwood bill, and others, all of which and mirrors. This is serious work that There is no hidden agenda, no sur- were drafted with the sole purpose of we have promised to the American pub- prises, no smoke, and no mirrors. This making health care more available and lic for a very long time. is a serious work product that we have more affordable. I also want to take a moment now, promised to the American people for a To this date, Madam President, none that I will elaborate on later, to de- long time. It seems to me we can get has been signed into law. scribe an amendment Senator ROTH this done yet today. The House has We now have before us a bipartisan and I plan to offer to this bill. In that passed a different version. We will go bill that contains the kinds of com- amendment there will be a number of to conference. In my view, we can come monsense insurance reforms that this tax provisions that will enhance the in- up with a very reasonable proposal Senator and many of my Republican surance reforms in this bill. that I think President Clinton will colleagues have long advocated. I com- Again, I want to underscore, this sign. mend my colleague from Kansas, Sen- amendment is not meant to defeat this We have offered what we believe will ator KASSEBAUM, for her hard work and bill or diminish its chances of being be an amendment to strengthen this determination to craft a health insur- signed by the President. To the con- bill. I happen to believe the medical ance reform bill that could be sup- trary, my amendment will strengthen savings account is another addition ported by the vast majority—if not all this bill and help more people obtain that will strengthen this bill. I know Members—on both sides of the aisle. affordable health insurance—all with- there is some objection to it. But all Madam President, as I stand here, I out the overdose of Government con- this is done without an overdose of have to say that I feel a great sense of trol the American people already re- Government control which the Amer- relief—as I am sure many Americans jected. ican people rejected just a few years will feel—that common sense has fi- My amendment will include an in- ago. nally prevailed. crease in the deduction of health insur- For all the reasons I can think of, I For nearly a decade now Republicans ance premiums paid by the self-em- urge the adoption of this amendment have been trying to pass an incremen- ployed and provides deductions for without anything being stricken from S3554 CONGRESSIONAL RECORD — SENATE April 18, 1996 it. I hope at 3:45 the motion to strike I yield the floor, Madam President. Medicaid. This provision will provide will be defeated, and then we can deter- Mr. ROTH addressed the Chair. an additional source of funds for the mine if we can vote on the Dole-Roth The PRESIDING OFFICER. The Sen- terminally and chronically ill to at- amendment or should there be other ator from Delaware. tend to their health care needs and at amendments. Maybe the Senator from Mr. ROTH. Madam President, the the same time will reduce the burden Washington has other amendments or purpose of the leadership amendment on Medicaid for their care. maybe other people. We can then dis- to the Kassebaum-Kennedy health in- This amendment also includes tax-fa- pose of those amendments. surance reform bill is to help individ- vored medical savings accounts. Our I yield the floor, and I thank the uals and employers purchase affordable medical savings account proposal per- Chair. health and long-term care insurance, mits an individual with a high-deduct- The PRESIDING OFFICER. The Sen- and it will particularly help small busi- ible health plan to make tax-deductible ator from California. ness men and women go a long way to- contributions to an MSA. Contribu- Mrs. BOXER. Madam President, will ward combating fraud and abuse in the tions to the medical savings account you tell me when my 3 minutes are up? Medicare system. are limited to $2,000 for single coverage That is all I really need. Affordability of health and long-term and $4,000 for family coverage. Dis- I believe we can have a rational de- care insurance has long been a major tribution from the medical savings ac- bate about this bill. The Senator from problem in our country, and the leader- count can be used for medical expenses Texas said it is hard to be rational ship amendment provides concrete so- without being taxed. when you debate health care, but I lutions. By eliminating many of the fi- Excess funds in a medical savings ac- think Senator KASSEBAUM is a very ra- nancial barriers to affordable health count can be carried over to the next tional woman, and I think Senator and long-term care insurance, Ameri- year, would be available to pay for un- KENNEDY is a very rational Senator. I cans will take greater responsibility expectedly high health costs, long- think the two of them have come to- for their health and long-term care term care insurance, or to continue gether. They have brought us a bill needs, relying less on the Federal Gov- health insurance during periods of un- that I am very proud to support. ernment. employment, often called COBRA cov- In 1993, I authored a bill that would The leadership amendment provides erage. Madam President, among the make it unlawful to cancel or reduce affordable health and long-term care great freedoms that Americans cherish an employee’s benefits because the em- insurance and personal responsibility is the ability to make choices and deci- ployee suffered from a particular dis- by increasing the health insurance de- sions about how to take care of their ease or illness, and it made it unlawful duction for self-employed individuals families. Medical savings accounts will for employers to impose different bene- to 80 percent. On average, employers place control of America’s health care fit caps for different diseases. pay about 80 percent of their employees back in the family. It does so in signifi- What happened, as we all know, is we health insurance costs. But under cur- cant ways that create the right incen- got off track with health care reform. rent law, employers can exclude this tives for health care. It was derailed, and it took us some benefit tax. With the medical savings accounts, time to mend some frayed feelings, and In comparison, Madam President, Americans will be able to choose their now we are back here in a bipartisan under current law, self-employed indi- physician, their hospital, and their effort. We are on the brink of a biparti- viduals can only deduct 30 percent of health care plan. Not only will Ameri- san success to bring some fairness to their health insurance. Raising the cans be allowed to go to the doctor of this world of health insurance cov- health insurance deduction for self-em- their choice, but to the optometrist, erage. ployed individuals will eliminate this the dentist, or the chiropractor of their Clearly, millions and millions of inequity and will be a good first step choice as well. Traditional low-deduct- Americans are going to be better off as toward putting self-employed individ- ible health insurance may not cover a result of the Kassebaum-Kennedy uals on a par with workers who receive visits to the dentist or optometrist, bill, because we know we will have health insurance from their employer. but the medical savings accounts will. portability now of health care cov- But this is not all this amendment In addition, Madam President, many erage. Many Americans who are locked provides. It provides tax clarification traditional low-deductible health in- in jobs because they fear losing their for long-term care insurance. Under surance plans do not pay for preventive insurance—and I know so many myself this amendment, long-term care insur- care. For working poor Americans, this who are in that situation—will no ance that meets certain consumer feature of medical health savings ac- longer be fearful of that. standards will receive the same favor- counts will be especially helpful. That We think that will impact 25 million able tax treatment as medical insur- is because Americans with medical sav- Americans. This bill will prohibit ance. The consumer standards require ings accounts will have the money to group health plans from excluding any insurance companies to disclose infor- pay for preventive care for their fami- employee based on their health status. mation to consumers that will aid lies, whereas they may not have the We know that we do not want to en- them in buying a long-term care policy money in the absence of a medical sav- courage people just buying insurance that best fits their individual needs. ings account. when they get sick, so we require a 12- Long-term care insurance tax clari- Beyond offering patients a choice, month waiting period, and then they fication will provide the much needed medical savings accounts will lower cannot be denied for a preexisting con- incentive for Americans to buy this in- health care spending by empowering dition. We think 81 million Americans, surance. All too often individuals with- people to become knowledgeable about Madam President, have conditions that out long-term care insurance end up health care costs. As a result, medical could subject them to such exclusions, depleting their life savings for their savings account users become more ef- so we are talking about more than 100 care and end up on Medicaid. Long- fective consumers of health care and million Americans benefiting from term care insurance will give Ameri- reject unnecessary or duplicative this, as well as small businesses. cans with long-term care needs the dig- treatment. Unused medical savings ac- I strongly urge us to support the nity of providing their own care and at count funds will accumulate from year Kassebaum-Kennedy bill. I think if we the same time reducing the burden on to year, providing an incentive for peo- can support Senator KASSEBAUM’s Medicaid. ple to remain healthy and consume amendment to the Dole amendment, it Additionally, Madam President, this medical care wisely. would be far better off, because the amendment allows tax-free benefits In addition, Madam President, medi- medical savings accounts are good for from the early termination of life in- cal savings accounts will also restore some of the wealthiest and healthiest surance. It permits terminally and the physician-patient relationship, in our Nation but would be damaging chronically ill individuals to take tax- something that has eroded over time. to the vast majority of Americans. free withdrawals from their life insur- Patients are finding their choice of So I look forward to voting for this ance. Many terminally and chronically health care providers being limited and bill. I think it will be a bright moment ill individuals end up depleting their bureaucracies are interfering with for this U.S. Senate. life savings for their care and end up on their doctor-patient relationships. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3555 With medical savings accounts, a pa- the Federal Government that must The doctors don’t work without pay. It’s just tient can go to any doctor, nurse, or now move ahead with the idea. that the patient doesn’t pay them, they’re other health care provider of their Madam President, strong efforts have paid out of the public budget. The public choice without worrying about whether been made to defeat medical savings budget comes from these same patients. Treatment isn’t free, it’s just depersonalized. their insurance will cover the bill. account legislation by those who have If the cost of it were left with the patient, Madam President, we already know a vested interest in the current health he’d turn the ten rubles over and over in his about the success of medical savings care system that is not working for hands. But when he really needed help he’d accounts because hundreds of compa- millions of Americans. The real win- come to the doctor five times over. * ** nies, including the United Mine Work- ners under medical savings accounts ‘‘Is it better the way it is now? You’d pay ers, are experimenting with them with will be the hundreds of thousands of anything for careful and sympathetic atten- great success. Companies that offer Americans who will grab control over tion from the doctor, but everywhere there’s medical savings accounts have experi- their family’s health care spending. a schedule, a quota the doctors have to meet; enced significant reductions in health I hope the encouragement from hun- next! * * * And what do patients come for? For a certificate to be absent from work, for care spending by their employees. Most dreds of companies with successful sick leave, for certification for invalids’ pen- of these companies find that medical medical savings account programs and sions; and the doctor’s job is to catch the savings accounts are attractive to the many States that are pioneering in frauds. Doctor and patient as enemies—is workers in both low- and high-income medical savings accounts will serve as that medicine?’’ categories and workers in all health strong incentives for my fellow col- ‘‘Depersonalized,’’ ‘‘doctor and patient as conditions. In fact, the Joint Commit- leagues to join me in supporting the enemies’’—those are the key phrases in the tee on Taxation anticipates that about medical savings account provisions and growing body of complaints about health 78 percent of medical savings account the leadership amendment. maintenance organizations and other forms of managed care. In many managed care sit- users will have an annual income of Madam President, I ask unanimous uations, the patient no longer regards the less than $75,000. consent to have an editorial in the physician who serves him as ‘‘his’’ or ‘‘her’’ Madam President, the problem with Wall Street Journal by Nobel Prize- physician responsible primarily to the pa- current medical savings accounts is winning economist Milton Friedman tient; and the physician no longer regards that employees are treated worse under entitled ‘‘A Way Out of Soviet-Style himself as primarily responsible to the pa- the tax laws by selecting a medical Health Care’’ printed in the RECORD. tient. His first responsibility is to the man- savings account and high-deductible There being no objection, the edi- aged care entity that hires him. He is not en- health plan. At the end of each year torial was ordered to be printed in the gaged in the kind of private medical practice that Dr. Oreschenkov valued so highly. the employee must include the full RECORD, as follows: For the first 30 years of my life, until amount of the money deposited in his [From the Wall Street Journal, Apr. 17, 1996] World War II, that kind of practice was the or her medical savings account as in- A WAY OUT OF SOVIET-STYLE HEALTH CARE norm. Individuals were responsible for their come. That is a grossly unfair result own medical care. They could pay for it out- (By Milton Friedman) when employees with traditional low- of-pocket or they could buy insurance. ‘‘Slid- deductible insurance do not pay tax on In a chapter in his novel ‘‘The Cancer ing scale’’ fees plus professional ethics as- their employer provided insurance. Ward’’ titled ‘‘The Old Doctor,’’ Alexander sured that the poor got care. On entry to a Furthermore, medical savings ac- Solzhenitsyn compares ‘‘private medical hospital, the first question was ‘‘What’s practice’’ with ‘‘universal, free, public health counts advance an important goal of wrong?’’ not ‘‘What is your insurance?’’ It service’’ through the words of an elderly may be that some firms provided health care Senator KASSEBAUM’s health insurance physician whose practice predated 1918. A by- as a benefit to their workers, but if so it was reform bill, and that is health insur- product is an eloquent statement of the the exception not the rule. ance portability. Health insurance major advantages of medical savings ac- The first major change in those arrange- portability is something Americans counts for the U.S. in 1996. ments was a byproduct of wage and price have been requesting for years. The Mr. Solzhenitsyn himself had no personal controls during World War II. Employers, lack of health insurance portability is experience on which to base his account and pressed to find more workers under wartime a problem with the current health in- yet, in what I have long regarded as a strik- boom conditions but forbidden to offer high- ing example of creative imagination, his er money wages, started adding benefits in surance market and results in job lock character presents an accurate and moving for millions of Americans. Medical sav- kind to the money wage. Employer-provided vision. The essence of that vision is the con- medical care proved particularly popular. As ings accounts will help end job lock for sensual relation between the patient and the something new, it was not covered by exist- millions of American workers because physician. The patient was free to choose his ing tax regulations, so employers treated it they will be able to take their medical physician, and the physician free to accept as exempt from withholding tax. savings account with them when they or reject the patient. It took a few years before the Internal change jobs. This would promote con- In Mr. Solzhenitsyn’s words, ‘‘among all Revenue Service got around to issuing regu- tinuity of insurance coverage. these persecutions [of the old doctor] the lations requiring the cost of employer-pro- Another feature of a medical savings most persistent and stringent had been divided medical care to be included in taxable rected against the fact that Doctor account is that it will allow a lower wages. That aroused a howl of protest from Oreschenkov clung stubbornly to his right to employees who had come to take tax exemp- cost insurance alternative to millions conduct a private medical practice, although of self-employed Americans. American tion for granted, and Congress responded by this was forbidden.’’ exempting employer-provided medical care farmers and small businesses will be EASIER TO FIND A WIFE from both the personal and the corporate in- able to buy high-deductible health in- In the words of Dr. Oreschenkov in con- come tax. surance and fund a medical savings ac- versation with Lyudmila Afanasyevna, a Because private expenditures on health count to provide for their family’s longtime patient and herself a physician in care are not exempt from income tax, almost health care needs. This feature has the the cancer ward: ‘‘In general, the family doc- all employees now receive health care cov- potential of removing millions of peo- tor is the most comforting figure in our erage from their employers, leading to prob- ple from the ranks of the uninsured. lives. But he has been cut down and lems of portability, third party payment and Madam President, it is interesting to foreshortened. * * * Sometimes it’s easier to rising costs that have become increasingly note that 13 States and at least one find a wife than to find a doctor nowadays serious. Of course, the cost of medical care who is prepared to give you as much time as comes out of wages, but out of before-tax city have passed medical savings ac- you need and understands you completely, rather than after-tax wages, so that the em- count legislation and dozens more are all of you.’’ ployee receives what he or she regards as a moving to pass similar legislation. For Lyudmila Afanasyevna: ‘‘All right, but higher real wage for the same cost to the em- example, Jersey City, NJ, has imple- how many of these family doctors would be ployer. mented medical savings accounts as an needed? They just can’t be fitted into our A second major change was the enactment alternative for their city employees. system of universal, free, public health serv- of Medicare and Medicaid in 1965. These Ohio is implementing a test program ices.’’ added another large slice of the population for State employees. Clearly, medical Dr. Oreschenkov: ‘‘Universal and public— to those for whom medical care, though not yes, they could. Free, no.’’ completely ‘‘free,’’ thanks to deductibles and savings accounts offer Americans a Lyudmila Afanasyevna: ‘‘But the fact that co-payments, was mostly paid by a third choice about their health care that it is free is our greatest achievement.’’ party, providing little incentive to econo- should be fundamental in a country Dr. Oreschenkov: ‘‘Is it such a great mize on medical care. The resulting dra- built on free-market principles. It is achievement? What do you mean by ‘free’? matic rise in expenditures on medical care S3556 CONGRESSIONAL RECORD — SENATE April 18, 1996 led to the imposition of controls on both pa- permits penalty-free withdrawals from earned-income credit compliance provi- tients and suppliers of medical care in a fu- IRA’s for health and long-term care in- sions in the House health care bill. tile attempt to hold down costs, further un- surance. The leadership amendment Mr. President, I recognize that there dermining the kind of private practice that encourages people to purchase health are many other popular tax proposals Dr. Oreschenkov ‘‘cherished most in his work.’’ insurance by allowing penalty-free championed by other Members that The best way to restore freedom of choice withdrawals from IRA accounts to buy would likely find their way into this to both patient and physician and to control health and long-term care insurance bill. However, this is a health insur- costs would be to eliminate the tax exemp- and to pay for major medical expenses. ance reform bill. The focus of this and tion of employer-provided medical care. This provision will allow unemployed other amendments should be on ex- However, that is clearly not feasible politi- workers the ability to access their IRA panding the affordability of health and cally. The best alternative available is to ex- funds to continue their health insur- long-term care insurance for Ameri- tend the tax exemption to all expenditures ance for their families. cans. To stray from the purpose of this on medical care, whether made by the patient directly or by employers, to establish a The leadership amendment provides amendment may doom the entire level playing field, in terms of the currently tax exemptions to State-sponsored, health insurance reform effort. I sug- popular cliche´. high-risk insurance pools, a provision gest that no Senator wants to do that. Many individuals would then find it attrac- that will encourage States to set up in- Mr. COATS. Madam President, the tive to negotiate with their employer for a surance pools from which high health Congressional Budget Office reported higher cash wage in place of employer-fi- risk individuals can purchase afford- that health care spending, rather than nanced medical care. With part or all of the able insurance. cost, is the major problem in U.S. higher cash wage, they could purchase an in- Madam President, the leadership surance policy with a very high deductible, health care. The report states that ‘‘a i.e., a policy for medical catastrophes, which amendment also contains new tools for major reason for high and rapidly ris- would be decidedly cheaper than the low-de- law enforcement to aggressively attack ing health cost is the failure of the nor- ductible policy their employer had been pro- fraud and abuse in health care. GAO es- mal discipline of the marketplace to viding to them, and deposit all or part of the timates that as much as 10 percent of limit the quantity of services sup- difference in a special ‘‘medical savings ac- health spending in the United States is plied.’’ count’’ that could be drawn on only for medi- lost to fraud and abuse. Law enforce- Today, nearly 80 percent of medical cal purposes. Any amounts unused in a par- ment officials believe that most health expenses are paid by somebody other ticular year could be allowed to accumulate care fraud goes undetected. than the patients themselves. without being subject to tax, or could be withdrawn with a tax penalty or for special The leadership amendment makes Out-of-pocket expenditures have de- purposes, as with current Individual Retire- substantial new funds available to the clined from 60 percent of the Nation’s ment Accounts—in effect, a medical IRA. Justice Department, the FBI and the total health bill in 1960 to 20 percent Many employers would find it attractive to IG of the Department of Health and today. Since that time, the Govern- offer such an arrangement to their employ- Human Services for investigation and ment’s share has doubled to 46 percent. ees as an option. prosecution of health care fraud. These This means that most health care ex- Some enterprises already have managed to provisions also create for the first time penditures in the United States today do so despite the tax penalty involved. MSAs a criminal statute for health care are paid for by someone other than the have proved very popular with employees at all levels of income, and they’ve been cost- crimes, tough new penalties for fraud consumer of health care—by the Gov- effective for employers. The employee has a in Federal health programs, including ernment or by insurance carriers. Un- strong incentive to economize, but also com- Medicare and Medicaid. like any other purchase, when Ameri- plete freedom to choose a physician, and the Madam President, these health care cans receive medical care, they use equivalent of first-dollar coverage. There are fraud and abuse provisions were crafted someone else’s money. no out-of-pocket costs until the employee by Senator COHEN over the past 3 Our health care system has effec- spends more than the total amount in the years. I commend him and his staff on tively insulated Americans from the MSA. Such costs are then limited to the dif- their tireless and important work. cost of care. There is little incentive to ference between the amount in the account spend wisely. There is no need to look and the deductible in the catastrophic pol- Madam President, the leadership icy. Moreover, the employee can use money amendment is actually paid for. The for the best buy for the health care dol- in the MSA at his or her discretion for den- offsets are, first, large corporations lar. tal or vision care that is typically not cov- will no longer be permitted to borrow Six years ago, I introduced the first ered under most health plans. No need to get corporate-owned life insurance and de- MSA legislation in the Senate. My plan ‘‘authorization’’ from a gatekeeper or an in- duct the interest. The provision is a provides a financial incentive for surance company to visit a specialist or to major corporate tax loophole that will Americans to choose a healthy lifestyle have a medical procedure—until the cata- be closed. The same proposal was in- and to be better consumers of health strophic policy takes over. cluded in the Balanced Budget Act of care. Under my plan, employers pro- LIMITING COMPETITION 1995 and is similar to the administra- vide an umbrella catastrophic policy The managed care industry has come to tion’s proposal in its fiscal year 1997 and invest the rest of the money in a recognize that MSAs might threaten its tax free account for each employee. I growing control of American medicine by of- budget. fering a more attractive alternative. As a re- Second, expatriates, those persons am pleased to be a cosponsor of the Fi- sult, the managed care industry has recently who leave the United States for tax nance Committee amendment which become a vigorous enemy of MSAs. Every be- avoidance purposes, will be subject to builds on these same principles. liever in competition will recognize that op- taxation upon exit from the United For example, the average employer position for what it is: a special interest States. The proposal is similar to the spends $4,500 on health benefits for an using government to limit rather than ex- expatriation provision in the Senate employee. Under the typical MSA, an pand competition. version of the Balanced Budget Act of employer would buy a catastrophic pol- Medical savings accounts are not a pana- icy—with a $3,000 deductible—at an av- cea. Many problems would remain for an in- 1995. dustry that now absorbs about a seventh of Third, starting in 1996, thrift institu- erage cost of $1,500. The remaining the national product. However, I believe that tions will calculate their tax deduction $3,000 would be given to the employee they offer the closest approximation that is for bad debts the same way as banks. to cover out-of-pocket medical ex- currently feasible to the private medical This provision will facilitate future penses. Whatever is unused would be practice that Dr. Oreschenkov cherished. legislation to harmonize the bank and given to the employee. We would pro- Mr. ROTH. Madam President, in his thrift charters, and has widespread vide a financial incentive both to stay editorial, Dr. Friedman recognizes support. A similar proposal was in- healthy and to shop for bargains in the medical savings accounts can be an im- cluded in the Balanced Budget Act of system. portant factor in restoring the freedom 1995 as well as an administration reve- I was discussing this idea with some of choice for both the patient and phy- nue proposal in the fiscal year 1997 constituents in Indianapolis. One sician and to control health care costs. budget. woman told me she knew exactly what These important provisions in the Fourth, a measure to combat fraud I was driving at. She called her local leadership amendment are not all that and the earned-income credit program. hospital to inquire how much a mam- we are offering. Our amendment also This proposal is identical to the mogram would cost. When told $300, April 18, 1996 CONGRESSIONAL RECORD — SENATE S3557 she asked if they ever offered any sales. than those who had the traditional We are paying a high price for our so- Sure enough, Mother’s Day week, the plan. I had no out-of-pocket expenses cial and behavioral attitudes, our per- screenings cost only $50. However, be- and still had $37 come back to me. sonal lifestyle choices. The United cause her insurance covered the cost, There was nothing to lose, and every- States pays $52 billion each year on ill- she had no incentive to purchase the thing to gain.’’ nesses related to smoking. Unhealthy care at the reduced price. In addition to empowering people, eating habits contribute directly to 5 This sounds complicated, but the ef- medical savings accounts help control of the 10 leading causes of death in the fect would be simple. People would be the costs of providing coverage for Nation. Two out of three deaths in the allowed to choose their own doctors, many companies. United States can be linked to tobacco make their own health care decisions, In Indiana, 81 percent of employees use, alcohol use and abuse, controllable have a financial incentive to live a at Golden Rule Insurance elected the high blood pressure, overeating, trau- healthier life, and control medical medical savings account option the matic injury, and lack of preventative costs through increased competition. first year it was offered. These workers care. Medical savings accounts are work- got $468,000 in reimbursements from One man in Indiana commented, ‘‘the ing. People with these plans are look- their MSA’s. Not surprisingly, the next plan has also given me a better outlook ing for and finding bargains. And they year, 90 percent of the employees se- on staying healthy. It provides finan- are getting more preventative care lected the MSA option. Golden Rule cial incentive for not over utilizing from their doctors. benefited as well—the company saw no health care, but at the same time provides a way to cover the more routine Listen to a letter from one woman in increase in health care costs for 2 expenses which one would incur at reg- Indiana: straight years, with $734,000 refunded to employees, an average of $1,000 per ular intervals. Getting a regular check When the MSA account became an option employee. up could help prevent more costly at my company, I decided to try it with my family. For the last half of [the first year], Dominion Resources has encouraged health care bills. Its nice to have an our family will be receiving a refund for our workers to opt for a high deductible outlet to pay for expenses when you unused portion. With five on our policy, this plan and to place the monthly pre- really should go to the doctor instead was a nice surprise. mium savings into a health account. of waiting to the last minute because ‘‘I was told I would be needing sur- Some 80 percent of Dominion’s employ- our deductible is not satisfied.’’ gery performed in the near future. I ees have selected this plan and the The MSA is the only health reform have already made arrangements to company has seen no increases in pre- plan that provides incentives to remain pay our [catastrophic] deductible in miums since 1989. healthy. Indeed, the Kennedy bill enti- full * * * the total surgeon’s charge was Knox Semiconductor in Rockport, tles those at high risk of sexually $9,843. However, they have agreed to ME, has experienced only one rate in- transmitted disease more health care take off $3,797. With this account I crease in the last 4 years under its than it does to others not considered at have realized there is no set doctor’s Health-Wealth Program. Its president, risk. The Kennedy bill requires all charge.’’ John Marley, claims that the program Americans to pay for smoking ces- This Indiana woman has become a saved his company more than $100,000 sation classes regardless of whether or wise consumer of health care services. in 3 years—a significant savings for a not you smoke. So smokers get more She bargained and saved nearly $4,000 small business. care than nonsmokers under the Ken- in surgery costs. She scrutinizes her These savings are particularly im- nedy bill. Under the MSA, non-smok- bills and makes sure that she is getting pressive given the cost increases expe- ers, who likely will remain healthier what she pays for. rienced by companies in conventional than smokers, reap the rewards of their Another Hoosier had this to say: plans. The Clinton-Mitchell bill, for in- behavior. stance, claims it will achieve its major ‘‘The MSA plan has helped me be- The Wall Street Journal recently edi- savings through encouraging HMO torialized, ‘‘Most of the health bills become a more frugal shopper of health styled delivery of services. But even fore Congress remind us of Henry care for myself and my family. I now HMO costs are rising—13.6 percent a Ford’s philosophy behind the Model-T ask the doctor for generic prescriptions year between 1988 and 1992. In 1993, car: ‘‘You can have any color you want when available, and try to utilize our they jumped another 6.5 percent. as long as its black.’’ [but] health care family doctors when available, instead MSA’s could potentially achieve sav- reform that includes medical savings of the more expensive immediate care ings in another significant way. Not accounts would represent real centers.’’ only would they unleash the collective consumer sovereignty; patient self-in- Another Indiana resident was sur- bargaining power of the American terest would be harnessed to keep costs prised to learn that the price of treat- consumer, but they could significantly down, and workers would build up tax- ment does vary depending on the sta- reduce the administrative burden on free health care funds for when they tus of her insurance. Treatment to an our health care system. Less than 15 were between jobs. Health care secu- ear damaged in an auto accident was percent of all Americans spend $3,000 a rity would be enhanced, but not at the $900 through insurance, but only $200 year on medical care, and therefore the cost of quality or freedom of choice.’’ since she paid out-of-pocket. accumulated cost of paperwork proc- This Congress faces a fundamental A resident of Indianapolis writes, ‘‘I essing are for small claims. By paying choice. We can use the lessons of our am a single parent who receives no out- these bills directly, our health care experience—Americans empowered side support. Therefore, it is very im- system would realize significant sav- choose wisely—competition in the free portant for me to have insurance cov- ings in paperwork reduction and sub- market enhances quality and drives erage for my 12-year-old daughter and stantially reduce the $90 billion in ad- down costs—principles which guide re- I. I made the decision to try the medi- ministrative costs we spent each year. form through medical savings ac- cal savings account because although Forbes magazine has experimented counts. Medical savings accounts leave vision and dental expenses were not with this concept. In order to cut down health care choices where they be- covered under the traditional plan, I small claims, they give each employee long—in the hands of individuals. I would be able to use the MSA money an annual account of $1,200. For every urge my colleagues to support real re- for these expenses * * * both my daugh- dollar filed in medical claims, the em- form—and to retain medical savings ter and I wear glasses. Both our pre- ployee loses $2 from the account. Em- accounts. scriptions had changed this past year, ployees can keep what is left in the ac- AMENDMENT NO. 3677 TO AMENDMENT NO. 3676 therefore I incurred the cost of the count at the end of the year. This sys- (Purpose: To strike medical savings exams along with the cost of new glass- tem obviously encourages employees to accounts) es. pay for small claims out-of-pocket. Mrs. KASSEBAUM. Madam Presi- ‘‘I did have necessary medical ex- After the system was implemented, the dent, I send to the desk an amendment penses last year that used all but $37 of paperwork on routine claims fell dra- and ask for its immediate consider- my MSA fund. While I may have re- matically. The company’s health costs ation. ceived less than others who had MSA’s fell by 17 percent in 1992 and by 12 per- The PRESIDING OFFICER. The last year, I gained a great deal more cent the following year. clerk will report. S3558 CONGRESSIONAL RECORD — SENATE April 18, 1996 The legislative clerk read as follows: not really enhance the provisions of put forward what I believe are positive The Senator from Kansas [Mrs. KASSE- this bill that we are debating today. additions to our bill. It is my hope that BAUM] proposes an amendment numbered I do believe that medical savings ac- those additions can be accepted and 3677 to amendment No. 3676. counts are of benefit, particularly to that medical savings accounts, with The amendment is as follows: the healthiest and most financially se- my motion to strike, will be defeated. Strike subtitle C of title IV. cure Americans. They do not really ad- I yield the floor. Mrs. KASSEBAUM. Madam Presi- dress those with preexisting condi- Mr. KENNEDY. Madam President, dent, the purpose of this amendment is tions, nor those with catastrophic ill- how much time does the Senator from to strike the portion of the package nesses at the time, nor those without a Connecticut need? put forward by Senator DOLE and Sen- job or income who need coverage the Mr. DODD. Seven minutes. ator ROTH regarding medical savings most. The PRESIDING OFFICER. The Sen- accounts. It is difficult for me to stand I think the medical savings accounts ator is recognized for 7 minutes. and do so because I think the rest of could provide a false sense of security Mr. DODD. Madam President, 2 years the provisions in the package that have because it does offer choices to individ- ago the 203d Congress spent a great been put forward are ones that are gen- uals. It lends encouragement to invest deal of time discussing the merits of erally agreed to on both sides of the wisely. It lends to a shelter in the Tax comprehensive health care reform. The Committee on Labor and Human aisle. Senator DOLE has been a long- Code which would allow one to build up Resources held more than 40 hearings time leader of efforts to increase the support that could be used at times debating the issue. deductibility for those who are self-em- that are important. However, it is a And in the end those opponents of ployed. It is a very positive amend- false sense of security, Madam Presi- comprehensive reform, who said we ment. It will be a very positive part of dent, I believe. They are sold as giving Americans needed to go slow, won the day. this bill. freedom to exercise choice and that I, for one, thank that was a mistake. Also, Senator DOLE has been a long- But, at the same time, I understand time leader in wanting to address long- people will be protected when they get catastrophic illnesses. However, as our the apprehension of my colleagues term care and to be able to provide colleague, Senator JEFFORDS knows, about comprehensive reform. some means of helping those who have most so-called catastrophic policies Well today, the legislation before us high costs for family and long-term have very low lifetime limits. He will today—the Kassebaum-Kennedy Health care. This will provide tax credits to do be offering an amendment, as a matter Insurance Reform Act—gives us the op- so. portunity to pass sensible, incremental The chairman of the Finance Com- of fact, to address that concern. So, people are not protected for truly cata- and common-sense health reform meas- mittee, Senator ROTH, has also been a ures that will help millions of Ameri- long-time proponent of such measures. strophic illnesses. Medical savings accounts are an experiment, not without cans. I think the way in which the measure merit. From the States that are al- This bill may not solve every prob- is crafted is a very constructive addi- ready experimenting with the accounts lem in our health care system. But, it tion to the legislation before the Sen- and have passed legislation, we will be is good public policy. ate. And it will make a real difference in When the ranking member of the able to gather data which will be useful to us. the lives of millions of Americans. Labor Committee, Senator KENNEDY, I suggest that Blue Cross Blue Shield And if we, as a body, believe that and myself completed the work of the of Ohio has shown that MSA’s would American workers should not live in committee in a unanimous vote last increase, not decrease, employer costs fear of losing their health care when August, we agreed that we would not because there would be less money in they change their job, then we must support any additional amendments the pool to cover above average costs pass these sensible reforms. that were highly contentious. This in- of high-risk individuals. There needs to In fact, recollecting our debates from cluded ones that individually we would be the ability to have a risk pool, to 2 years ago, it’s hard to imagine that support, as well as those that we would have reinsurance, so that those costs this bill would not pass on a unani- oppose. Cumulatively, they could cause can be spread, of which all of us would mous vote. a real collapse if they carried too much have to pay. That is not going nec- Not once in our many committee baggage, plus or minus. Therefore, we essarily to lead to escalating premiums meetings did any member argue for the have agreed, whether we individually so much as spreading the costs across preservation of exclusions based on supported those amendments or not, to the board. preexisting conditions. not support any amendments which Blue Cross and Blue Shield has ob- Not once did anybody argue against were going to prove to be controver- served that there is a concern that insurance portability. Even while we sial. MSA’s will segment the market into were debating health care reform on I would like to speak for a moment people who are very healthy and people the Senate floor, not once did anybody about medical savings accounts and my who are not healthy. If that happens, raise objection to the sort of market own concerns regarding them. As has you lose the ability to spread the risk reforms that are included in this bill. been pointed out, 13 States have now in pool. Senator BREAUX spoke to that THE HEALTH CARE PROBLEM place such savings accounts and I earlier this morning. So for all those And, I think we all recognize the think that is going to be useful to ana- reasons, Madam President, I have some huge scope of the problem. lyze the effect of medical savings ac- serious reservations. Senator COHEN Almost 40 million Americans have no counts. The proponents say it will from Maine, as Senator ROTH pointed health care insurance. bring down health care costs by en- out, has legislation regarding fraud and Approximately 12 million of those couraging consumers to shop more abuse that helps provide savings, which uninsured are children under the age of wisely for health care, that they will has been incorporated in this amend- 21. increase coverage by making health ment. I think that is a positive part of In my State of Connecticut, 300,000 care that is affordable for individuals, the package put forward by Senator people were uninsured in 1993. and they will reduce health care spend- DOLE and Senator ROTH. That is 12.1 percent of the popu- ing for employers. But as long as medical savings ac- lation, up from 9.7 percent in 1992. Nevertheless, we are not really cer- counts have such a high degree of un- That’s a 25 percent increase. tain, and I still believe that we need to certainty, I think it is a package that In fact according to a recent poll, 22 carefully consider what medical sav- should be viewed with some skepticism percent of Connecticut Residents who ings accounts are about. I think it is as we regard this particular proposal needed health care did not go to a doc- not a question of either/or. Medical before us, which has universal support tor or receive health care services be- savings accounts should be considered and will continue to have if we give cause it was either too expensive or and we should debate the merits of some care to the amendments that are simply inaccessible. medical savings accounts. I strongly added to it. These are unacceptable statistics, question whether they should be at- I have the highest regard for the ef- and they make clear the need for re- tached to this particular bill as they do forts of the majority leader, as he has form. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3559 JOB LOCK But, this is not the time to be focus- ents, the Mine Workers know that MSAs are And, throughout Connecticut and the ing on our individual projects, particu- not a panacea for the health care crisis. It Nation as a whole, millions of others larly at the expense of genuine reforms would be unthinkable to leave such a group live in fear that if they change their that we can all agree upon. of people, many of whom suffer from injuries or disease brought on from working in the job, they will lose their health care as Today, we have the opportunity to mines, dependent on MSAs for their health well. help 25 million Americans with the care coverage. Various surveys have found that as Kassebaum-Kennedy bill and applying Sincerely, many as 30 percent of Americans report MSA’s or any other provision to this CECIL E. ROBERTS, that either they or a family member bill will only undermine that effort. International President. suffer from job lock. The Kassebaum-Kennedy bill truly Mr. DODD. Madam President, I com- Too many Americans are being represents common sense, effective re- mend our two colleagues. It has been a forced to stay at a job because they form. long ordeal, dealing with this very im- simply can not afford to lose their These are reforms that will spare portant piece of legislation. They de- health care coverage. millions of Americans the pain and suf- serve our universal acclaim for their But if this legislation passes, the pro- fering of losing their health care or efforts. It was a very good process in visions in this bill would relieve as being denied coverage because of pre- our committee. As the chairman of the many as 3 to 4 million Americans from existing conditions. committee, Senator KASSEBAUM, point- the burden of job lock. Today, we have a historic oppor- ed out, this particular proposal was KASSEBAUM-KENNEDY IS A GOOD FIRST STEP tunity to make a real difference in the unanimously voted out of committee. While I think that even my col- lives of millions of Americans. To the credit of all of our members on As I do not need to remind most of leagues Senator KENNEDY and Senator the committee, Republicans and Demo- you, cynicism toward Congress runs KASSEBAUM would agree that this bill crats alike, we all have ideas that we rampant in this Nation. will not solve every problem with would have liked to have incorporated Too often the American people look America’s health care system, it is a in this legislation. But the agreement to Washington and they shake their crucial step in the right direction. was that we would try and limit the head at the partisan political games we The KASSEBAUM-KENNEDY would bill to those areas where there was con- play. limit exclusions for pre-existing condi- sensus, so that we could deal with the tions. In the last two elections they have demanded that we start working to- problems that 25 million Americans It would allow small businesses to face today. With the passage of this form purchasing alliances, which would gether, Democrats and Republicans, and pass legislation that makes a real legislation, and a Presidential signa- be a difference for the 30 percent of em- ture, we would solve the problems im- ployees at firms with 10 or less workers difference in their lives. And I believe that if we polled the mediately for 25 million Americans. It who do not have health insurance. would immediately solve the problems And most important it would guaran- American people and asked them: Should Congress remove preexisting they face with portability and preexist- tee to every American worker that if ing conditions—not to mention some of you change your job, you will not lose conditions in the health insurance industry? the proposals in the leadership amend- your health insurance. ment, which the Senator from Kansas The GAO estimates that 25 million Should Congress make health insur- pointed out we all agree with and go Americans would be helped by this leg- ance more portable? back many years supporting. islation. Should Congress guarantee that if These are common sense reforms and you lose your job you do not lose your We have a wonderful opportunity I believe that is one of the main rea- health insurance? here. It has been almost since last Au- sons this bill is receiving huge biparti- I think, the vast majority of the gust that this bill came out of commit- san support. American people would respond with a tee. We are almost in May now, and the The Kassebaum-Kennedy bill not resounding yes. weeks are rolling by. Here is a chance only has more than 60 cosponsors, of So today, let us uphold our respon- to do something for 25 million Ameri- which I am one, but it also passed our sibility to the American people and cans, without getting into a real dis- committee unanimously. pass these sensible and commonsense agreement and argument over a con- reform measures. troversial proposal—the medical sav- CLEAN BILL Madam President, I ask unanimous ings accounts. With this clear level of bipartisan consent to have printed in the RECORD support it is hard for me to understand Madam President, I would like to a letter dated today from Cecil E. Rob- why many of my colleagues are insist- spend a few minutes on that particular erts, international President of the ing on offering amendments to this subject matter. I will leave the re- United Mine Workers of America. bill, that they know will make it im- marks I have inserted in the RECORD There being no objection, the letter possible for it to pass. that go to the general provisions in the was ordered to be printed in the Unfortunately, over the past few bill, which have been discussed today RECORD, as follows: years it has become increasingly dif- at some length. I compliment my col- ficult for this body to reach com- UNITED MINE WORKERS OF AMERICA, league from Kansas and my colleague Washington, DC, April 18, 1996. promise on any issue. from Massachusetts for doing a re- Senator BOB DOLE, I think all my colleagues, from both markably fine job in putting those pro- Hart Senate Office Building, Washington, DC. visions together. sides of the aisle, bemoan this lack of DEAR SENATOR DOLE: In recent days, cer- bipartisan agreement. tain special interest groups have wrongly I have inserted the letter from the And today we have a bill with over 60 portrayed members of the United Mine United Mine Workers because there has cosponsors, with wide bipartisan sup- Workers of America as recipients of Medical been some discussion here on the floor port and with endorsement from much Savings Account akin to those that would that this was one organization that has of the health insurance industry and become more widely available under an a medical savings account. Without yet several of my colleagues stub- amendment you are slated to offer to S. 1028. reading the entire letter, let me read The UMWA has been grossly misrepre- paragraphs 2, 3, and 4 of the letter: bornly insist that we allow amend- sented by these groups who have wrongly ments to be tacked on to this bill. counted us as supporters in their effort to The UMWA has been grossly misrepre- In particular, the insistence of some weaken the health care system through Med- sented by these groups who have wrongly of my colleagues to add medical sav- ical Savings Accounts. counted us as supporters in their effort to ings accounts, or MSA’s, to this bill In recent collective bargaining agree- waken the health care system through Medi- threatens the enactment of any health ments, we have negotiated a comprehensive cal Savings Accounts. In recent collective bargaining agree- reform measure this year. health care plan for our members. Our members also receive a bonus and are responsible ments, we have negotiated a comprehensive We all have provisions we would like for pay equivalent deductibles under their health care plan for our members. Our mem- to see included in this legislation. I, for medical plan. This plan is not an MSA. bers also receive a bonus and are responsible one, would like to see greater health Representing more than 200,000 working for paying equivalent deductibles under their care coverage for our Nation’s children. and retired coal miners and their depend- medical plan. This plan is not an MSA. S3560 CONGRESSIONAL RECORD — SENATE April 18, 1996 Representing more than 200,000 working from Massachusetts, or the Senator through long-term care, through nurs- and retired coal miners and their depend- from Kansas. That is the American ing homes, or through home care is im- ents, the Mine Workers know that MSAs are Academy of Actuaries speaking. mensely important. The idea that we not a panacea for the health care crisis. It We have a wonderful opportunity to would be unthinkable to leave such a group have long-term care insurance included of people, many of whom suffer from injuries deal with something we all agree on, in in this legislation, I think, is com- or disease brought on from working in the a bipartisan way. The current bill is bi- mendable. mines, dependent on MSAs for their health partisan, as we have some 60 cospon- The leader as well has identified ad- care coverage. sors. Why take on an MSA issue that is ditional areas—providing the deduction I think that is important, since their highly controversial with major pri- for the self-employed; the small busi- names have been used as an example of vate sector groups and consumer nesses around this country, in rural an organization with an MSA, and by groups that are saying, ‘‘Please do not towns and in cities as well, have a par- implicit suggestion that they are sup- do this’’? This is not the right sugges- ticular disadvantage in terms of the porters of MSA’s. I voted twice for tion at this hour. It jeopardizes what cost of health care for their employees. medical savings accounts, back when we could do for 25 million Americans, And certainly there is a strong jus- we considered the larger health care by eliminating the problem of port- tification for that provision. package. I am proud of those votes. I ability and preexisting conditions, is- I believe the provisions which apply have no inherent objection to the idea sues that we all agree on. as well in terms of terminal illnesses, of a medical savings account. But they I do not know of anybody who stood to help those that have terminal ill- need to be, as the Senator from Kansas up and suggested that we ought not to ness, to give them at least some assist- suggested, in the context of a larger make those changes. We have the ance in terms of the tax system, again, discussion of health care. chance to do that in a bipartisan way. to give them some tax relief, is a com- Whether you agreed or disagreed If you add the MSA’s, given all the ar- mendable system. with the large health care proposal of a guments raised by the private sector, So I hope at the time we have an op- year or so ago, in that context, medical consumer groups, and others, including portunity to address those particular savings accounts make sense. In the the American Academy of Actuaries, issues that we will find broad biparti- absence of it, you are running the risk and the Blues, who have looked at this san support throughout the Senate on of leaving people aside who cannot af- issue carefully, then you do great dam- those measures. There may be a fea- ford to get into these programs. age and jeopardize what we can accom- ture or two that we might discuss, but It is very controversial, too. As many plish this afternoon by passing a good I commend the leader for bringing at- have pointed out, the major insurance bill and showing the American public tention to that and for adding that par- groups and consumer groups, which we care about their concerns and we ticular measure. rarely agree on these matters, all agree are determined to see to it that they Mr. President, I agree that those is- on this point—that this could create are addressed. sues have been debated and discussed. some real problems. They all agree I strongly urge the adoption of the There is broad understanding of them that this would segment and under- Kassebaum amendment to strike the and broad support for them, and we are mine the insurance market. They MSA provisions, adopt the other provi- certainly justified in accepting those. would divide the health care system sions, and then adopt this overall piece But the issue in terms of the medical and cater to the healthier and wealthi- of legislation. savings account is another matter ener people at the expense of those with I yield the floor. tirely. financial constraints, leaving those in Mr. KENNEDY. Mr. President, how For the reasons that have been out- traditional plans to pay a higher price much time remains? lined, the overall Kassebaum/Kennedy tag on health care costs, as their risk The PRESIDING OFFICER (Mr. legislation has broad support. Senator pool shrinks and as the percentage of KEMPTHORNE). The Senator has 241⁄2 KASSEBAUM and I are in agreement that individuals with serious health condi- minutes. we will resist amendments that do not tions increases. Mr. KENNEDY. I yield myself 10 min- have the overwhelming support of the They point out that according to the utes of our time. Members. There are many different Joint Committee on Taxation, it would Mr. President, our distinguished col- provisions that I would like to see cost taxpayers about $1.8 billion. league and friend, Senator KASSEBAUM, which I think have been tried and test- Again, I am not talking about one has outlined, I think very effectively, ed and for which there is a very impor- group versus another. The insurance the reasons why we should reject the tant need. industry, consumer groups, the Blues, part of Senator DOLE’s proposal that My good friend from Vermont has are not saying that they are totally op- deals with medical savings accounts. talked about lifting the lifetime limits posed to this, but that in this context, Senator KASSEBAUM has outlined the in terms of health insurance because it does not make a great deal of sense. principal issues which are at stake— many of those that have serious dis- I also point out there have been some both the cost and the health implica- abilities run up against the top limits studies done on the medical savings actions of MSAs, and I am in total agree- in their health insurance. I would like counts. According to the Congressional ment. My friend and colleague from to support that measure. Senator JEF- Budget Office, medical savings ac- Connecticut has expanded on those FORDS spoke passionately about it, and counts could threaten the existence of thoughts in a very effective way. he believes in it, and I look forward to standard health insurance, placing a I think many of the provisions that working very closely with him on a dif- far greater burden on lower-income pa- the majority leader has introduced are ferent health care proposal. I am con- tients, individuals with chronic ail- useful and, by and large, helpful. He vinced that we will pass that proposal ments, and patients with disabilities, brings focus on the need for long-term here in the U.S. Senate and the House who have larger out-of-pocket ex- health care for the American people. If of Representatives. penses. The Blue Cross Blue Shield of there is a part of our Social Security I agree with my friend, Senator DO- Ohio, as the Senator from Kansas system that has been really left out MENICI from New Mexico, who is one of pointed out, says, ‘‘MSA’s would bank- over the period of the recent years, it the real leaders in this body in terms of rupt our current system of financing has been the failure to deal effectively mental health issues. During the health care and significantly add to the with long-term care for our parents, for course of the debate the last time we cost of medical care.’’ That is their neighbors, for friends, for communities, addressed the comprehensive issues of language, not mine. and for the American people. We are health reform, one of the real impor- The American Academy of Actuaries blessed and fortunate to have people tant features that we effectively said, ‘‘Less healthy individuals will living longer lives and more productive worked out was that we were going to likely pay more for their coverage, lives. That is an increasing phenome- consider the challenges of mental ill- since the most healthy and highest per- non. The fragile elderly increasingly ness as well as physical illness simi- sons in the group are likely to select are an important concern before us. To larly and treat them equitably. They MSA programs.’’ That is not the Sen- be able to attend to their particular are not treated equally under current ator from Connecticut, or the Senator needs in a thoughtful way either law. I have supported that. We debated April 18, 1996 CONGRESSIONAL RECORD — SENATE S3561 it. There is broad support for it. It is So I hope that the proposal of Sen- to $3,000 for a sickness over the period justified as a health improvement ator KASSEBAUM to strike this provi- of that next year. That is the deduct- measure. sion will be acceptable. ible, $3,000. They know that by and I support mandatory preventive serv- Let me mention briefly why I am op- large they are not going to get sick ices for children. That has been an posed and others are opposed to medi- during that period of time. So they are issue where there has been broad sup- cal savings accounts. First of all, over not really at risk. They know they port. It passed overwhelmingly in the 10 years this is $3.2 billion. It is going only need help if something serious is Finance Committee as part of our pre- to cost $3.2 billion. The fact of the mat- going to happen to them. vious discussions. There is strong jus- ter is, we have to ask ourselves: Are we So the healthy and the individuals tification for providing the range of going to raise the deficit by $3.2 billion who have the resources are going to be services—immunizations, preventive, when many of us were around here try- the ones who use those MSA’s. What screening, and attention for children in ing to increase education programs, about everyone else? Are they going to our society. It is not costly. We have trying to even increase the various pro- use it? Probably not. Because they the expenditures for that proposal. Out grams on Head Start? We were told we know they are going to have of the list that is included in here, we did not have the money when we tried deductibles and they know that they certainly could have worked on that to expand support for education on the are going to have particular health measure. There is broad support. But Goals 2000, increasing academic care needs like every family has. we have resisted that. Why? Because, achievement. We do not have that And the health implications of this as has been pointed out before, the money. When we were out here trying are profound. It means that the general range of different supporters that we to do something about increasing child insurance pools are going to continue have been able to gather for this meas- care, we did not have the money. Now to include the sicker people, and the ure—we have said that on this issue, on suddenly we have $3.2 billion. That is premiums are going to go up for every- this bill, we will not accept provisions the cost, $3.2 billion. one because they are going to have the which are going to be untested, un- So we have to ask ourselves: Well, sicker Americans and they are going to tried, and controversial in terms of $3.2 billion, who is going to benefit have the working Americans who can’t their health implications and their from the $3.2 billion? Is this going to be afford the MSA’s. And what is going to cost implications. something that is going to be across happen, the premiums are going to go There is not a lot of difference in this the board in terms of beneficiaries? We up and therefore workers are going to body—Republican and Democrat— can start right out and say, as the begin to disband their commitment to about providing preventive health care Joint Tax Committee has pointed out, health care for themselves because the services for children. There is not a lot no one whose income is below $20,000 costs are going up. of difference in this body in trying to will benefit one nickel—not one. Only We have to ask ourselves: Does this equate mental health with other phys- one percent of all the benefits from the really have an advantage in terms of ical challenges. There is not a lot of MSA proposal, will go to individuals savings? Is this a new process of deliv- difference I say in raising lifetime lim- who earn less than $30,000—only 1 per- ering health care that many of us had its. cent of the benefits. Ninety-seven per- hoped the HMO’s would be? We hoped Those are measures that I feel cent of the benefits will go only to peo- that by having the payment for health strongly about and that I would like to ple above the median family income in care at the beginning of the year and support, but we do not have those this country—only 3 percent of the the incentives on the various kinds of measures up here. The reason we do benefits from MSAs will go to those HMO’s to develop preventive programs not have them up here is because we below the median family income. that they would keep people healthier have an understanding; we have an Who benefits from this? Who benefits so they save money through preven- agreement that we are going to keep are the wealthiest individuals. Sound tion. But with MSA’s, this won’t hap- this legislation as close to the target familiar? Sound familiar? The higher pen. as we possibly can in trying to deal income individuals are the ones that To the contrary, every time a woman with the problems of preexisting condi- will be participating in this program. goes and gets a mammography test, tions so that individuals who are work- So we ask ourselves at the beginning: they are going to have to pay out. Is ing and are playing by the rules of the Can we afford the $3.2 billion? If we get that covered by your health insurance? game and are paying their premiums it, not according to my estimates, not No. Because you are not up to $3,000. are going to be able, if they lose their by the various actuary and other Every time a woman gets a pap smear, job or change their job, to take their groups, but by the Joint Tax Commit- she has to pay out. Is that going to be insurance with them. We are going to tee, Republican and Democrat alike, it offset by health insurance? Absolutely provide the incentives in terms of has been pointed out that the great not. They are going to have to pay out. small business so that they can pull to- majority of Americans will not be eli- All the screening for children, for the gether and develop the economic ad- gible. sons and daughters of working fami- vantages that the major corporations And why? It is quite understandable. lies, are they going to be encouraged to have. We have agreed to move in that They do not have the income to pay go to preventive health care? Abso- area. the deductibles for the MSA’s. So lutely not, because they are going to Now we have medical savings ac- therefore it does not do them any good. have to pay out. counts. I have myself serious problems In order to be able to benefit from an Finally, make no mistakes—medical with that issue. Others have expressed MSA, an individual has to be able to af- savings accounts are also part of the support. The question should not be so ford the deductibles, and ordinary long-term Republican anti-Medicare much how we stand on these particular working Americans simply will not be agenda. Every senior citizen and every issues, but I want to just express very able to do that; they won’t be making Senator who cares about Medicare briefly my very serious concerns about enough money. should be aware of this Trojan horse. it. But, nonetheless, it is highly divi- Secondly, we can ask, what is going The special interests who are urging sive, highly controversial, and highly to be the impact on our whole health this provision now are part of the ongo- unacceptable. I think all of us under- care system? Well, the various reports ing effort to undermine Medicare by stand that if this measure is included that we have received—and we will turning it over to the private insurance in the proposal, school is out—school is have a chance perhaps to get into them industry. If we open the door to medi- out in terms of amendments; school is in greater detail—demonstrate that cal savings accounts for the non-elder- out in terms of what may be added or what is going to happen in this situa- ly today, we will be opening the door to what may be subtracted; school is out tion is that the younger people and the medical savings accounts for the elder- in terms of the focus and attention on wealthier people are going to take this ly tomorrow and that is not a step Con- a very important proposal that has the opportunity to participate in the gress should take. broad support and the unanimous sup- MSA’s. They are going to take the op- So, Mr. President, in summary, this port of Republicans and Democrats out portunity. Why? Because they know proposal is skewed financially. The fi- of our committee. they are not going to need to spend up nancial benefit goes to the wealthiest S3562 CONGRESSIONAL RECORD — SENATE April 18, 1996 individuals and to the healthiest peo- Mr. ROTH. I yield 10 minutes of the Now, what is right about that? That ple. It is poor health policy because it leader’s time to the Senator from makes no sense, no sense whatsoever. is going to disadvantage the incentives Oklahoma. This bill is going to help fix this. in the areas where you can provide true The PRESIDING OFFICER. The Sen- What about an individual who maybe savings on health care, and that is ator from Oklahoma is recognized for does not work, is unemployed. They going about the business of providing up to 10 minutes. need health care just as much as any- preventive health care. Mr. NICKLES. Mr. President, I thank body else. This bill helps fix that. And One of the extraordinary ironies in you. I thank my colleague from West the Senator from Massachusetts does terms of our budget policy here is you Virginia. I will be happy to accommo- not want to allow it to happen. He said, do not get any credit in terms of CBO date my friend as well. I think it would well, school is out if we allow medical when you move towards preventive be better if we go back and forth a lit- savings accounts. Medical savings ac- care. Even though you save the Gov- tle bit, if that is possible. I say to my counts are the only thing, the only ernment millions and millions of dol- colleague from Massachusetts, that thing, that will benefit somebody who lars over the period of years, you can- was my interest because my colleague does not have a job and wants to get not get credit for any kind of preven- from Massachusetts has generated a health care. We do not help them in tive care. That is where savings come little interest in me to respond. other areas. We are going to help them. about—when you immunize children, I also compliment the Senator from We are going to say, yes, you can get when you give well-baby care, when Massachusetts and the Senator from health care; you can have your medical you give an expectant mother good Kansas for their work, but particularly savings account; it is yours; it is port- kinds of care and nutrition so the child I wish to compliment the Senator from able; you do not have to have a job; it is going to be healthy rather than have Delaware and the Senator from Kansas, goes with you. It is not contingent on medical complications at birth. the majority leader, for this amend- a job. This vote is not just about medical ment. This amendment is probably the We use the Tax Code to encourage savings accounts. It is also about most significant health care provision homeownership and so we say, you are whether Americans will get the genu- that the Senate has considered in a entitled to an interest deduction on ine health insurance reform they de- long time. your home. And we do not say you have I have heard a lot of people say we serve. Senator KASSEBAUM and I have to have a job to get the interest deduc- want to make insurance more portable; pledged that we will resist controver- tion; it is yours; you designed the we want to make insurance more af- sial amendments, because they will house, or you can buy the house. That fordable. If you do, then we need to kill this bill. We intend to vote against is your decision, and it is your deduc- support Senator DOLE and Senator even controversial amendments that tion. We do the same thing for other ROTH’s amendment. That would include we support. Many other Senators on things. You make that decision. But we some tax equalization. The Tax Code is both sides of the aisle have made the do not do it on health care. We say, really skewed. It is really inequitable. same pledge. This vote is the test. If well, you have to work for a generous Senators insist on their narrow agenda, It is not fair. Let me just give you a couple of ex- employer. You get a real nice benefit. this health reform will die. You work for yourself, you only get a This is an unwise, untested, unjusti- amples. The amendment that we have dealing both with the medical savings third as much. You get a 30-percent de- fied measure. It is effectively a poison duction. pill. There are many other, more de- account and deductibility for self-insured help fix the problem—not totally, This bill takes it up to 80 percent for serving health care issues that we self-employed. And that is about what ought to be accepting or addressing but they certainly improve it. The Tax Code right now discrimi- the average of a lot of companies is. So ourselves to that are a lot less costly that is pretty equitable. It takes some than this particular measure, and I nates against people who do not work for generous employers. If you work for time to get there, I might mention. We hope that Senator KASSEBAUM’s amend- do not do it overnight. But at least it ment is accepted. a generous employer, they can pay for your health care benefits and the indi- gets it up to 80 percent. That is a good I would be glad to yield 12 min- move. utes—— vidual can receive that tax free benefit, does not have to pay anything for it. It I compliment Senator DOLE. When we Mr. NICKLES addressed the Chair. passed this originally in the Balanced Mr. KENNEDY. Twelve minutes to is nice. If you work for General Motors, Budget Act, it only went to 50 percent the Senator, 12 minutes to the Senator they can deduct 100 percent for health and Senator DOLE said, ‘‘Let’s make it from West Virginia. care costs. The PRESIDING OFFICER. The Sen- What if you do not work for a gener- 80 percent.’’ He was right. That is equi- ator from Massachusetts controls 10 ous employer? What if you work for an table, and that means that Don NICK- minutes. employer who maybe cannot afford it LES’ janitor service gets just about as Mr. KENNEDY. Twelve minutes to or does not subsidize your health care? good a deal as a manufacturing com- the Senator from West Virginia. Then as an individual you have to pay pany in 7 years. The PRESIDING OFFICER. Does the for your health care with after-tax dol- That is a good provision. It needs to Senator from Oklahoma have an in- lars. That is not fair. pass. But equally as important is that quiry? What if you are self-employed? Right individual who does not have a job or Mr. NICKLES. Mr. President, I be- now, if you pay for your health care, that individual who is unemployed or lieve that both the Senator from Dela- you get a 30-percent deduction. Let me that individual who works for an em- ware and the Senator from Massachu- make sure everybody understands that. ployer that does not give anything to setts have control of the time, and I If you work for General Motors or a their health care. Right now, they have also think the Chair has usually recog- generous corporation, they get a 100- to buy their health care with after-tax nized Senators seeking recognition, percent deduction, the company does. dollars. And they need health care as and then the Senators delegate how If you are self-employed, you get a 30- much as somebody working for any they allocate that time, I think is the percent deduction. company in America. Let us help them. normal procedure. That is not right. I used to run a Medical savings accounts will help Mrs. KASSEBAUM. Mr. President, manufacturing company, and at one them, and they are not something not to intervene here, but I would sug- time we paid 100 percent of health care untested and untried, as my colleague gest that I think the Senator from costs. It was all deductible, a tax-free from Massachusetts said. We have Oklahoma has been waiting quite some benefit for employees. I also used to be something like 3,000 firms right now of- time to speak. And while I am not in self-employed. Right now, they get 30 fering those. charge of the time at this point, it percent. I used to have a janitor service Seventeen States now have MSA would seem to me best to let that when I was self-employed. They only laws, an additional 11 States have back-and-forth proceed. get 30 percent. But a big manufactur- called on Congress to enact MSA legis- Mr. ROTH addressed the Chair. ing company or a little manufacturing lation. We ought to do it. Everybody The PRESIDING OFFICER. The Sen- company, a corporation, they get 100 ought to have the opportunity to have ator from Delaware. percent. this choice. We are not mandating it on April 18, 1996 CONGRESSIONAL RECORD — SENATE S3563 anybody, but it should be a choice. It stays with them. It is not contingent also having a devastating impact on They should have the opportunity. on employment. It is a good provision. strained State Medicaid budgets. Long- What is the choice? Yes, they can So I am very disappointed in some of term care costs are draining away Med- buy insurance, I think pretty good in- the comments that have been made. icaid resources that are needed to pro- surance. They can buy insurance that This is a good provision. It will make vide health care for indigent and dis- is for the catastrophic illness. We say a health care more portable. It is the abled Americans. We cannot continue medical savings account is very com- most portable health care plan you can to rob Peter to pay Paul much longer. parable to an Individual Retirement have. It goes with the individuals. It is America’s elderly population is ex- Account. Individuals can put in $2,000, theirs. If they save the money and they pected to increase by almost 25 percent families or couples can put in $4,000, do not spend it, it grows, it accumu- between 1993 and 2011, and this will and then use it for medical expenses. lates. They can use it for later times. place an unbearable burden on the They have to buy at least catastrophic Also, it makes it more affordable. Medicaid Program unless decisive ac- coverage, to cover the really expensive People are a lot more frugal with their tion is taken. This bill provides essen- care. That makes sense. own money than they are with em- tial private financing options for long- We are encouraging this with medical ployer money or than they are with term care, and takes a positive step to- savings accounts. A lot of the private Government money. ward meeting the long-term care needs sector is doing the same thing. In our Mr. President, I urge my colleagues of future generations of Americans. company we used to ensure the first to pass the medical savings account Again, I want to thank the chairman dollar coverage on anything. That is provision, to vote against the amend- for addressing this issue in his amend- very expensive and it is not what insur- ment to delete this provision, and then ment, and look forward to having it ance is for. When you buy car insur- also to pass the underlying Dole-Roth signed into law. ance you do not buy car insurance to amendment. It is an excellent amend- Mr. SANTORUM. Mr. President, I fill the car up with gasoline or fill it up ment that will help expand coverage to wanted to take some time to discuss a with oil. You buy car insurance for col- countless Americans that right now, specific provision included in the ma- lision or something that is really ex- because of inequities in the Tax Code, jority leader’s amendment. pensive that you need insurance for. really come up short. I have had the pleasure of working That also makes sense in the medical Again, I thank my colleague from with the long term care industry in field, to let people use their own dol- Delaware for his leadership. And also Pennsylvania during my service in lars for the small things, the routine Senator DOLE for proposing this Congress. I am extremely pleased that things, the doctor’s office visit. And amendment. I hope my colleagues will the leadership amendment included they will use their own money. If they agree to it. long-term-care provisions which will do not use it they can save it. It is not Mr. ROTH. Before we conclude action fill a void in the security of older use it or lose it. They can save it, accu- on the measure before us, I want to Americans. I wrote my Senate col- mulate it. We encourage savings and specially commend the Senator from leagues this past week as well as the they can use that money later for Kentucky, Senator MCCONNELL, for his majority leader directly urging the in- something that really is serious, that invaluable contribution to this effort. clusion of the long-term-care language. is problematic. Or they can use it for His introduction of S. 1658, the Family The long-term-care section will im- long-term health care. Choice in Long-Term Care Act, along prove this bill by giving long-term-care This is a good provision. This will with his behind-the-scenes advocacy on insurance the same Federal tax treat- help countless middle-income families. this issue, has made the difference in ment as health insurance and by estab- Mr. President, 88 percent of the benefit getting long-term care on the must-do lishing Federal long-term-care insur- falls to individuals who make less than list of health care reforms. Senator ance standards and consumer protec- $100,000. It is not for wealthy people, it MCCONNELL has shown tremendous con- tions. is for American families and it will cern for the long-term care needs of el- The cost of long-term care is easily help people who get no help whatsoever derly Americans and their families, the biggest financial threat facing el- from the present Tax Code. If we want and he has played a key role in propos- derly Americans. The average cost of to eliminate a lot of this tax inequity, ing common sense and compassionate nursing home care has risen to $38,000 medical savings accounts will go a long solutions to the problem. We all know per year. We also know that more than way to doing that. Let us give them how some people just talk about an 40 percent of those who turn 65 this some benefit. Right now they get zero. issue; the junior Senator from Ken- year will require nursing facility care An individual who is unemployed, an tucky works issues, and the legislation at some point in their lives. Medicaid individual who works for a corporation before us reflects the work that Sen- does pay for nursing home care, but that does not subsidize his or her ator MCCONNELL has devoted to this only after the costs of long-term care health care, they get zero tax benefits. crucial health care concern. makes the recipient destitute. Basi- Finally, if we pass this they will get Mr. MCCONNELL. Let me thank the cally, people in need of long-term-care something and to me that is a very chairman for his generous remarks and services must pay for the care out of positive contribution. for his tremendous work on this legis- pocket until they spend down all their So I urge my colleagues, let us not lation. The need to provide meaningful assets to the point of poverty. Then make this a partisan issue. I know Sen- long-term care coverage cannot be and only then do they qualify for Med- ator BREAUX introduced a MSA bill in overstated. It is estimated that at least icaid. 1992. Senator DASCHLE, Senator NUNN, 40 percent of those aged 65 and over The real crime here is that people do Senator BOREN, Senator Dixon—they will require nursing home care at some not know that they will have to lose cosponsored the bill. Representative point, costing an average of $38,000 per all their assets to obtain long-term- GEPHARDT, in 1994—almost all Members year. As the chairman knows, this care services. They think Medicare but one of the Democrat Party on poses a terrible Hobson’s choice for covers it. Ways and Means supported Mr. GEP- most seniors and their families. Many Even after 30 years of Medicare, HARDT’s provision that had medical seniors are forced to liquidate their life many Americans remain confused re- savings accounts. So why all of a sud- savings and sell off family heirlooms garding what Medicare does and does den are we being partisan? This is a just to pay for this expensive care, and not cover—particularly regarding long- good provision. It is a bipartisan provi- only when they have depleted nearly term care. Year after year, public sur- sion. It should be passed. all of their assets will Medicaid pick up veys show that nearly half of Ameri- We should help individuals. We are the tab. Because of the massive costs cans believe that Medicare covers long- not helping individuals. We should involved, private insurance has thus term care. Because of this misconcep- make insurance truly portable and we far played a negligible role in the fi- tion, many Americans come to a rude do that with medical savings accounts. nancing of long-term care, accounting awakening when they need long-term It is not contingent on a job. If they for less than 2 percent of long-term care for which they have not prepared. lose their jobs they still have their care payouts. The dearth of private Helping individuals and families under- medical savings account. It is portable. planning options for long-term care is stand the limits on Government long- S3564 CONGRESSIONAL RECORD — SENATE April 18, 1996 term-care assistance and giving them additional minutes for debate, equally The bill is gone. An opportunity is fin- incentive to prepare for their needs divided in the usual form. ished. will encourage more Americans to plan The PRESIDING OFFICER. Without I hope people will take moral respon- for, save for, and insure against the objection, it is so ordered. Who yields sibility in considering the decision costs of long-term care. time? which they are making. In fact, every We currently allow acute health care Several Senators addressed the single serious health policy analyst— expenses and insurance premiums to be Chair. and you can laugh at them, except deducted. State laws require car insur- The PRESIDING OFFICER. The Sen- when you realize they are just about ance, home or flood insurance, and ator from Delaware is recognized. the whole gamut—they all say that other protections for individuals and Mr. ROTH. I am sorry, I did not hear. giving a tax break for medical savings families. Yet we do not require, much Mrs. KASSEBAUM. There will be 10 accounts is a very bad idea. I repeat— less encourage, people to plan for additional minutes added, equally di- it is a very bad idea. Medical savings something that more than likely will vided. accounts, they say, would cherry pick impact them—the need for long-term- Mr. ROTH. I ask whether, because we the healthy people —yes—and drive up care services. agreed to a very brief time, whether at health care costs for the sick—yes. The language in the leadership least on our side we could have another Medical savings accounts would further amendment would correct this. Specifi- 10 minutes, total of 15 minutes. destabilize an already seriously frag- cally, the provisions will give long- Mr. KENNEDY. I will give you my 5. mented insurance risk pool. And of term-care insurance the same Federal Mrs. KASSEBAUM. That gives you 10 course we understand what that means. tax treatment as health insurance and minutes additional. The insurance risk pool gets frag- link tax provisions to Federal long- Mr. ROTH. Can I have 15? mented when companies self-insure; term-care insurance consumer protec- Mrs. KASSEBAUM. I think maybe many big companies do that now. They tions. This second part is so important you better take it. A bird in the hand did not 25 years ago. That puts more because it ensures that policies offer is worth two in the bush. pressure on the small business market value to consumers and pay appro- The PRESIDING OFFICER. Who where you have individual insurance. It priately and adequately for quality yields time? The Senator from Massa- is a very, very risky business in any long-term care when needed. chusetts. event, without thrusting MSA into it. Not only would greater use of long- Mr. KENNEDY. Mr. President, how Another thought worries me. The Re- term-care insurance help protect indi- much time do we have remaining? publicans put MSA’s into reconcili- viduals and families from impoverish- The PRESIDING OFFICER. The Sen- ation, with respect to Medicare. CBO ment due to long-term-care costs, but ator from Massachusetts has 14 min- has determined that only about 1 or 2 it would also help control Medicaid utes and 55 seconds. percent of Medicare beneficiaries costs. Mr. President, in the long run Mr. KENNEDY. I yield 10 minutes to would, in fact, select a medical savings this will save money for the Medicaid the Senator from West Virginia. account. But let there be no doubt in program. The PRESIDING OFFICER. The Sen- the mind of anyone here that what is In a 1994 article in Health Affairs, ator from West Virginia is recognized hoped is that the MSA’s would spread, Marc Cohen, Nanda Kumar, and Stan- for up to 10 minutes. indeed, to the whole concept of Medi- ley Wallack estimated that having a Mr. ROCKEFELLER. Mr. President, I care. This should represent to every long-term-care insurance policy re- agree with the Senator from Oklahoma one of my colleagues a very severe duces the probability of spending down that this could be the most significant threat to the future of Medicare. That, to Medicaid eligibility levels by some health care legislation that we have I think, is what is in mind here. Fur- 39 percent. The authors estimate that, passed in a long time, which is why I thermore, CBO concluded that healthy in the aggregate, Medicaid expendi- think it is terribly important that we seniors would opt in and out of tradi- tures would be reduced by $8,000 to pass it. What has been made very clear, tional Medicare based on whether they $15,000 for every nursing home entrant very distinct throughout this discus- thought they would be using health who had a long-term-care insurance sion, is that we are in an argument now services in that particular year. In policy. According to the analysis, this on MSA. We have not been in an argu- other words, there would be no predict- translates into cutting what Medicaid ment on anything else. We are in an ar- able pattern. pays per nursing home entrant in half gument on MSA. The agreement, from Lewin-VHI, a well respected consult- for long-term-care policy purchasers. It the very beginning, was to take the ing firm, concluded that ‘‘An optional is in our best interest to encourage controversial stuff out; leave that for health coverage program that promises people who can meet their long-term- now, and do it later. It will probably potential cash benefits to persons who care needs to do so. Medicaid will then pass on its own, but now is not the are able to keep their health spending take care of truly needy individuals. time. low will experience extreme selection The majority leader’s amendment as- To back that up, I have a letter from bias.’’ sists America’s elderly and their fami- the NFIB. This NFIB letter, signed by The American Academy of Actuaries lies with long-term care by putting Dan Danner, says, ‘‘The NFIB opposes has also been quoted. This is an inter- policies in place that help assure the the adoption of any amendment to S. esting quote from them. ‘‘Those who affordability and value of long-term- 1028 which would draw a Presidential have little or no health care expendi- care insurance. Giving Americans tax veto or cause the bill to be defeated in tures. . .would save money on MSA’s. incentives to insure against the poten- the Senate.’’ The greatest losses will be for those employ- tial costs of long-term care will also I repeat the statement of administra- ees with substantial health care expendi- save Medicaid dollars in the long run. tion policy from the White House, in tures. Those with high expenditures are pri- Since we cannot continue to rely so which they indicated, as their first primarily older employees and pregnant heavily on scarce Government dollars ority, that for the bill to include medi- women. to pay for long-term care, individuals cal savings accounts would, as they A report from the Congressional Re- and families should be encouraged to say, ‘‘create grave risks to the passage search Office, written by the non- plan for, save for, and insure against and enactment of this bipartisan legis- partisan folks there says, ‘‘If MSA’s the potential long-term-care costs. I lation.’’ I think those who are pushing only attracted the healthy, the cost of urge my colleagues to vote for this the MSA, for whatever the various in- insurance for everyone else would in- amendment and to support this specific teresting reasons that have floated crease due to adverse selection.’’ language. around here for the past several days, The Kaiser Family Foundation has Mrs. KASSEBAUM addressed the ought to bear very carefully in mind concluded that, ‘‘Enrollees who leave Chair. that they are putting the entire bill in the traditional Medicare plan would be The PRESIDING OFFICER. The Sen- jeopardy. If the amendment passes healthier on average than those who ator from Kansas. with MSA’s, as the Senator from Mas- remain in the traditional plan.’’ Mrs. KASSEBAUM. Mr. President, I sachusetts said, ‘‘school is out.’’ Every- Again, notice that threat—the Medi- ask unanimous consent that there be 10 thing else comes in. The bill is down. care beneficiaries lost to MSA’s would April 18, 1996 CONGRESSIONAL RECORD — SENATE S3565 be healthier on average than those who Mr. President, in contrast, the gen- Mr. President, the rules of the Senate remain in the traditional plan.’’ eral philosophy of Republicans in Con- should not deprive the American people That foreshadows an ominous future gress supports health care reform that of the most meaningful free-market for Medicare. And you have this broad, benefits and empowers Americans and health care reform measure that we broad coalition that is saying exactly their families on an individual scale. could give them. the same thing. As these charts illustrate, this philoso- Perhaps the most important debate Mr. President, I do not think it is phy is about improvements for individ- that we can have is a debate on medi- any secret that there have been special uals, not big government. cal savings accounts. It is unfortunate interests working very hard on this in On my chart, I have included four that the administration has already the last several days, and those who principles: affordability, availability, tried to poison this debate by threaten- are in the process of making up their flexibility, and portability. In the bill ing to veto a health care reform bill mind at this point, I think, might con- we are now debating, Senator KASSE- that contains them. Their accusation sider that there is really one group BAUM has done a fine job of addressing is that anyone who wants to include that is especially interested in this two of these principles. In the provi- medical savings accounts wants to kill particular medical savings account ac- sions for insurance reform and for in- the Kassebaum bill. That simply is not tivity. Their president was working the surance purchasing pools, Senator true. The truth is the President knows entire Capitol yesterday and saw a KASSEBAUM’S bill takes important that if medical savings accounts be- number of people. In exchange, they steps to improve the availability and come law, they will drive the final are hoping to win approval of a special portability of health care coverage. nails in the coffin of the Clinton plan, tax break that they hope will throw It is my strong and sincere hope that and bury his dream of nationalized millions of dollars in new insurance we can further improve this legislation health care. business their way. Is that a crude by amending it to include provisions Once individual Americans have the thing to say? I do not know. I think it that enhance the flexibility and afford- power to control how their own health is a major part of this debate, and I ability of health care coverage for all care dollars are spent, they will never think it is a major part of the reason Americans on an individual basis. The allow the Government to take that that we are in a debate we should not provisions I have in mind include those power back. be in at all. Debate on this bill was to that I have placed on my chart: medi- In his last State of the Union Address be based on the clear premise that we cal malpractice reform, increased de- the President stated that ‘‘the era of agree that controversial stuff should be ductibility of insurance for self-em- big-government is over.’’ I wonder if he left out—so we can take, as the Sen- ployed individuals, and medical savings really meant it, or if he was just echo- ator from Oklahoma said, 25 million accounts. ing a decision already made by the vot- kids and adults and improve their lives The majority of uninsured Americans ers in the last elections. Regardless, substantially, in terms of health care. are adults who work full-time jobs, the decision has been made. We should This is a bill which enjoys strong bi- usually in small businesses. Measures pass health care reform that ensures partisan support. MSA’s do not enjoy like more favorable rules for the for- that the power to make health care de- strong bipartisan support. I have to mation of voluntary purchasing pools, cisions is placed in the hands of indi- conclude that the vote on this will be increased deductions for health care vidual Americans, not big-government. very close, and I hope as people vote, expenses, medical malpractice reform, That means health care reform that in- they will consider the pressures which and medical savings accounts would cludes medical savings accounts. have been brought, particularly by one give small employers more options at I applaud the decision of Chairman single company, on Members on both lower costs to help them offer the ROTH and the majority leader to bring sides of the House and the Senate. health coverage they currently cannot an amendment to the floor that con- Are we really going to do their bid- afford. Under these proposals the deci- tains medical savings accounts. Just as ding, or are we going to help 25 million sionmaking will remain where it be- he has done so many times in the past people in this country when we have a longs, with individuals and their em- Senator DOLE has shown the leadership historic chance to do it? I think the an- ployers. necessary to make the difficult deci- swer is easy. I hope my colleagues will To reduce the number of uninsured sions, and push aside the administra- move to strike the MSA provision. I Americans, President Clinton proposed tion’s rhetoric. thank the Presiding Officer. an employer mandate that would have Mr. President, there are very dif- The PRESIDING OFFICER. Who required all businesses to cover their ferent goals involved in this debate. yields time? employees with a Cadillac plan de- Our goal should be health care reform Mr. ROTH. I yield 4 minutes to Sen- signed in Washington. The result of based on improvements for individuals, ator FAIRCLOTH. this policy would have been hundreds not health care reform based on big- The PRESIDING OFFICER. The Sen- of thousands of lost jobs, and hundreds government solutions. ator from North Carolina is recognized of billions of dollars in increased costs I plan to strongly support the Dole- for up to 4 minutes. for businesses. Roth amendment, and I urge my col- Mr. FAIRCLOTH. Thank you, Mr. President Clinton also proposed that leagues to do the same. President. his nationalized health care system Thank you Mr. President, I yield the Mr. President, what a difference 2 would have been run by a system of floor. years makes. All of us remember that health alliances. Through a complex The PRESIDING OFFICER. The Sen- at this time 2 years ago, the Clinton system of cost controls and rationing, ator’s time has expired. administration was struggling to keep the bureaucrats who ran these alli- Mr. FAIRCLOTH. I plan to support afloat their Health Security Act—the ances would have decided what Ameri- the Dole amendment and urge my col- Clinton plan for a nationalized health cans spent health care dollars on, and leagues to do the same. care system. how much they spent individually and Mr. ROTH. I yield 5 minutes to the In case anyone’s memory needs re- collectively. If medical savings ac- Senator from Pennsylvania. freshing, I have reproduced the chart counts were available to Americans, The PRESIDING OFFICER. The Sen- that Senator SPECTER used to illus- any individuals who chose them would ator from Pennsylvania is recognized trate the workings of the Clinton plan. gain full control of their own health for 5 minutes. Once Members of Congress and the care decisions. Mr. SANTORUM. Thank you, Mr. American people saw what was behind As chairman of the Labor Commit- President. I appreciate that. the President’s rhetoric, nothing could tee, Senator KASSEBAUM has done a As I always like to say, I was one of save the Clinton plan. Once the Amer- commendable job of advancing the dif- the first Members of Congress in either ican people realized that the Clinton ficult issue of health insurance reform the House or Senate to introduce a plan was a big-government power grab within the jurisdiction of her commit- medical savings account bill. I intro- on the most enormous scale ever at- tee. But, medical savings accounts fall duced a bill with JOHN KASICH, TOM tempted in this country, they rejected within the jurisdiction of the Finance DELAY and John Miller, a former Mem- it. Committee. ber from Washington, back in January S3566 CONGRESSIONAL RECORD — SENATE April 18, 1996 1992. I have followed it for a long, long We hear so much from so many peo- Mr. ROTH. Mr. President, I yield 2 time prior to corporate lobbyists being ple on both sides of the aisle about minutes to the Senator from Texas. up here on the Hill, and I believe very being compassionate, about caring for The PRESIDING OFFICER. The Sen- strongly in its concept. people, about doing things to give peo- ator from Texas is recognized for up to Let me explain. I guess we had a lot ple choices and to give people the abil- 2 minutes. of talk about what is going on here ity to do what is best for them and Mrs. HUTCHISON. Thank you, Mr. with this specific MSA bill. Let me ex- their families. What we have here is a President. plain the concept behind medical sav- situation going on in the private sector I appreciate the chairman’s generos- ings accounts and the fear many of us in America where that choice is going ity in letting me talk on this very im- have with, the best way I can put it, away. Private practice is almost a portant issue. I wanted to speak on two the ‘‘corporatization’’ of the health thing of the past in many communities points on the amendment. First, the care field and how we see medical sav- and is growing more apparent in all deductibility for the self-employed is ings account as, really, the last chance States across this country. such an important step forward that for patient choice and for compassion What medical savings accounts do is the people who are self-employed will in an industry that is becoming more provide a chance, an opportunity, for be encouraged to get health care cov- and more regulated by third parties in the traditional doctor-patient relation- erage for themselves, and that is what the fundamental relationship between ship to be restored where now the in- we are trying to do here. It is what we doctors and patients. centive is on the patient to be cost con- have been trying to do for 2 years. To If I can, let me just walk back to the scious. How? Because, instead of the increase the tax deductibility for them system we had before managed care old system where you had first-dollar to 80 percent from 30 percent is a big came into place. What we had was a coverage and the insurance company step in the right direction to encourage doctor/patient relationship. That was pays for everything, we are going to more people to get health care cov- the problem. There was nobody in this say, look, we are going to take a higher erage. relationship who had any incentive to deductible policy like an auto insur- The issue of medical savings ac- control costs. As a rule, costs escalated ance policy—we do not pay, as Senator counts—‘‘patient choice accounts’’ is a out of control. Why? NICKLES said, for gasoline or oil great name for it because it really will If you were the patient and had first- changes—but you pay for the inciden- make a difference for so many people dollar coverage, who asked how much tal costs of health care, the day-to-day and so many small businesses in this things cost? Who asked whether you costs, and we insure you for the cata- country, giving them an opportunity needed one or two or five of these? You strophic illness or for a year where you they would not have had. took whatever the doctor suggested had a lot of serious problems. Senator KENNEDY’s bill in 1994 had and you did not pay for it, so why did So you take a high-deductible policy language saying that they hoped there you care? and you pay for the out-of-pocket ex- would be medical savings accounts in- So, on the other side is the doctor, pense and you afford that because, cluded in the health reform bill passed and what is the doctor’s incentive in when you take a higher deductible pol- by the Senate. This is not a partisan this doctor/patient transaction? The icy, the cost of that policy is less. issue. Congressman JACOBS and Con- more the doctor does, the more money Senator CRAIG gave an example ear- gressman TORRICELLI today wrote the he gets paid. The more the doctor does, lier where a policy with a $250 deduct- President of the United States asking the less chance the doctor gets sued. So ible and a $500 cap and a 20-percent him to support MSA’s. you have a doctor who gets more copay cost $458 a month for a family. A Let me give you some examples of money, with less chance of being sued, $3,000 deductible policy, same cov- companies that have benefited from and you have a patient who does not erages, no copay, costs two-thirds less, MSA’s, medical savings accounts, pa- pay for anything. costs under $200 a month. Where did tient choice accounts. Then we sat back and wondered sev- that savings go between the $200 and Dominion Resources in Richmond, eral years ago, gee, why are health care $450? It went into the pocket of the per- VA. Since 1989, the company’s health costs going up? It was very simple. son who had the medical savings ac- care costs have risen less than 1 per- There was nobody with any incentive count. cent a year while other health care to control costs. We understood that It would go, under this bill, tax free costs all over this country have risen and companies understood that and in- into an account you set up at your over 10 percent. Here we are at 1 per- surance companies understood that, bank. You get a little debit card. You cent a year. Not only have their costs and they did a very logical thing. They could then use it to purchase health come down, but their employees are brought someone in to control costs, care. You could use it to make choices happy because they have had improved the gatekeeper, the insurance com- about what doctor you wanted to go to, and expanded medical benefits under pany, who came in; and now they are what hospital, and how much you their medical savings accounts. governing the relationship between the wanted to spend. Knox Semiconductor in Rockport, doctor and patient. If you want some- I always ask people, ‘‘Who are the ME. Their president says they have thing done, you go through the insur- lowest paid doctors in this country?’’ saved the company $100,000 over 3 ance company. You get approval, and it Well, they are pediatricians and family years. That is with just 42 employees. can be done. That is now the governor, practitioners and dentists because they The National Center for Policy Anal- the one who is in charge of this rela- are not covered under insurance. Why? ysis in Dallas, TX, has been on the tionship. They have to charge people who pay leading edge of giving their employees What many of us believe is that that out of pocket, so they have to keep the choices. They have been able to is not the most compassionate, and their costs down. Just imagine if we contain their health care costs, and some would suggest that it may not re- did that to most of the health care sec- their employees are happier with their sult in the best quality of care. It cer- tor in this country. It would be an coverage. tainly does not result in the maximiza- enormous contraction, I believe, in Mr. President, medical savings action of patient choice. So what we have costs in our society. It would not lead counts are a key part of the reform put forward is a concept called medical to higher costs in other areas, in other that is necessary to give more health savings. I think it is really misnamed. insurance pools. I think this is a dra- care coverage to more people, more I think we should call it ‘‘patient matic step forward. This is the reason working people, in our country. That is choice accounts,’’ because that is what that I applaud Senator DOLE for fight- why it is important to keep this is left. If we do not do medical savings ing to the end because this is the kind amendment, the medical savings ac- accounts, if we do not do patient choice of dramatic reform that this country count, in the bill. Thank you, Mr. accounts, the doctor-patient relation- needs to preserve freedom of choice for President. I thank the chairman. ship which we know will disappear in patients. The PRESIDING OFFICER. Who America. It will disappear. It is dis- Mr. ROTH addressed the Chair. yields time? appearing, has disappeared, in a lot of The PRESIDING OFFICER. The Sen- Mr. ROTH. I yield 4 minutes to the communities already in this country. ator from Delaware. Senator from Iowa. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3567 The PRESIDING OFFICER. The Sen- prices to attract medical savings ac- than that if we can, on a bipartisan ator from Delaware controls 2 minutes count holders as patients. Medical sav- basis, strike the MSA portion of the 30 seconds. ings accounts can also help to put the Dole amendment and pass this bill in- Mr. ROTH. With 11⁄2 minutes of leader patient back into the health care equa- tact, as we know we can. time, we have a total of 4 minutes. tion. If we do that we can look back on The PRESIDING OFFICER. Without Patients should make more cost-con- this Congress with some satisfaction objection, it is so ordered. scious choices about routine health that we have done our best under these The Senator from Iowa is recognized care. Patients with medical savings ac- circumstances to address some of the for 4 minutes. counts would have complete choice of real health care problems working Mr. GRASSLEY. Mr. President, the providers. Medical savings accounts Americans face. best thing we can do for health care re- should make health care coverage I yield the floor. form is to let the marketplace operate more dependable. Medical savings ac- Mr. ROTH. Mr. President, medical to a greater extent in the delivery of counts are completely portable. Medi- savings accounts are among the most health care. This issue is the most im- cal savings accounts are still the prop- important steps that must be taken to portant one that faces us today. You erty of the individual, even if they can address this country’s health care know how strong our argument is from change jobs. needs, particularly the need for port- the weakness of the argument made by Hence, for those reasons, I support ability. MSA’s are of such importance those on the other side of this ques- medical savings accounts. I very much in our effort to address our health con- tion. thank the leadership for providing this cerns that on September 8, 1992, several The other side’s argument is that we amendment. I yield the floor. of my distinguished colleagues signed a should leave this medical savings ac- Mr. DASCHLE. Mr. President, I know letter calling for the introduction of count provision out of this bill because that we want to have a vote by 4 MSA’s as part of their bill. it happens to be controversial. Well, o’clock so I will divide the time re- Let me quote a portion of that letter: that is the strength of their argument: maining with the distinguished Sen- Unlike many standard third-party health it is controversial in Washington, DC; care coverage plans, Medical Care Savings ator from Delaware. Accounts would give consumers an incentive that is, inside the beltway. Well, Mr. How much time remains? to monitor spending carefully because to do President, medical savings accounts The PRESIDING OFFICER. Six min- otherwise would be wasting their ‘‘own’’ are not controversial outside of Wash- utes and twenty-two seconds. money. . . Once a Medical Savings Account ington, DC. Mr. DASCHLE. I yield 3 minutes to is established for an employee, it is fully The people who oppose this amend- our side and leave the Senator from portable. Money in the account can be used ment are some of the same people who Delaware the final 3 minutes. to continue insurance while an employee is believe that Washington knows best, Mr. President, given the very short between jobs or on strike. Recent studies that Washington knows how to dictate period of time we have remaining, and show that at least 50 percent of the uninsured are uninsured for four months or the delivery of health care better than the fact that all of the arguments have less. . . . Today, even commonly required the people themselves do, particularly been made, let me simply summarize small dollar deductibles (typically $250 to people at the grassroots. It seems to the case against including MSA’s on $500) create a hardship for the financially me a weak argument when the strong- this bill. stressed individual or family seeking regu- est argument against this legislation is Two years ago we all agreed that lar, preventative care services. With Medical that it is controversial. Since when is comprehensive health care reform Savings Accounts, however, that same indi- giving people more choice in health would not pass. In the last year and a vidual or family would have this critical care controversial? That is what people half we have all agreed that we can money in their account to pay for the needed services. want. That is what people know will only pass something which enjoys work better. This is the usual big Gov- broad bipartisan support. It was with Mr. President, these are important ernment argument against any that understanding and with the re- arguments that were made for MSA’s changes. markable leadership of the Chair of the over 3 years ago. They are equally, if It is the argument in favor of big Labor Committee, the distinguished not more, important today. That letter government versus letting the free Senator from Kansas, and the Senator was signed by Senators BREAUX, marketplace work. It is the old in favor from Massachusetts, we now have a bill BOREN, DASCHLE, LUGAR, COATS, and of big government making decisions for that we all agree is the only health re- NUNN, a formidable bipartisan coalition of Senators taking a necessary stand people, as opposed to letting people form legislation that can pass this Con- on a critical issue. themselves make decisions. gress with broad, bipartisan support. Mr. President, I have a copy of a let- Medical savings accounts give people This narrowly drafted bill some of the ter received from the Vice President of choice. It is letting people control most pressing health problems facing the NFIB that makes it clear that they their resources for health care. Quite Americans. are supporting the MSA. This letter, frankly, it is going to save us a lot of Portability and coverage for preexist- dated today, April 18, 1996, to the Hon- money and reduce health care costs. ing conditions are two of the most im- orable DON NICKLES says, ‘‘Overall, I am very happy that the leadership portant issues we face. So let there be NFIB members need health care re- puts forth this amendment, because al- no mistake, we have an opportunity form. It has been a top priority for lowing medical savings accounts is a today to pass something, but we also years. MSA’s are among the provisions step in the right direction. They are have an opportunity to kill that very we have consistently supported. These basically like IRA’s, giving people an bill with this MSA provision in this also include portability, no preexisting opportunity to save for their retire- amendment. The NFIB clearly stated condition exclusion, deductibility, and ment. Medical savings accounts are in a letter dated today, and they have small business purchasing groups. We giving people an opportunity to save said very clearly, ‘‘We oppose any will continue to fight for all these pro- for themselves and to control their re- amendment which will bring about a visions of importance to small busi- sources for their own medical expenses. defeat of the legislation before us.’’ ness.’’ There is a widespread use of medical They recognize the importance of For these reasons, Mr. President, I savings accounts already in this coun- this moment. They recognize what an urge my colleagues on both sides of the try that speaks better than any of us opportunity we have before us. We aisle to vote against the motion to can to their legitimacy and to their should not blow it. We should not kill strike. I yield the floor. hope for success. They should reduce this bill. Let us recognize there will be The PRESIDING OFFICER. All time health care costs. Administrative costs another day to have yet another debate has expired. The question is on agree- are lower. Consumers with MSA’s about many other health care issues. ing to the KASSEBAUM amendment No. should use health care services in a But let us not destroy the golden op- 3677. more discriminating manner. Consum- portunity we have today to pass mean- Mr. KENNEDY. I ask for the yeas and ers with MSA’s should be more selec- ingful legislation, by adding something nays. tive in choosing providers. This should as controversial as MSA’s. We can do The PRESIDING OFFICER. Is there a cause those providers to lower their better than that. We will do better sufficient second? S3568 CONGRESSIONAL RECORD — SENATE April 18, 1996 There is a sufficient second. nities in conference. We wanted as A major step we can and must take The yeas and nays were ordered. many votes as we could have. We have toward Medicare reform is to crack The PRESIDING OFFICER. The one absentee so I think we have about down on the fraud and abuse that clerk will call the roll. 47 or 48 votes, which puts us in a strong drives up the costs of health care for The legislative clerk called the roll. position in the conference. senior citizens and taxpayers. Esti- Mr. LOTT. I announce that the Sen- But, in any event, the outcome here mates are that Medicare loses over $18 ator from Florida [Mr. MACK] and the may permit us to conclude action on billion each year to fraud and abuse, Senator from Colorado [Mr. CAMPBELL] this bill today, hopefully. I trust that and that fraudulent schemes cost the are necessarily absent. is what the managers have in mind. entire health care system and our The VICE PRESIDENT. Are there So, perhaps maybe Senator DORGAN economy over $100 billion each year. any other Senators in the Chamber de- might proceed at this time so we would The investigation of the Senate Spe- siring to vote? not lose any time, if he wants to take cial Committee on Aging, which I The result was announced—yeas 52, his 15 minutes now while we are check- chair, has revealed that it is nays 46, as follows: ing to see if we can go ahead and have shockingly simple to commit health [Roll Call Vote No. 72 Leg.] the vote? care fraud, and that the size, complex- YEAS—52 Mr. DORGAN. I say to the majority ity, and splintering of the current leader, if the majority leader wishes to Akaka Feinstein Levin health care system creates an environ- Baucus Ford Lieberman proceed I will defer my time until after ment ripe for abuse. Biden Glenn Mikulski the vote. I do not need to intervene at Health care fraud is equal oppor- Bingaman Gorton Moseley-Braun this point. All I want to do is get the Bond Graham Moynihan tunity employer that does not dis- Boxer Harkin Murray appropriate time following the vote. criminate against any part of the sys- Bradley Hatfield Nunn Mr. BUMPERS. Will the majority tem. All Government health care pro- Breaux Heflin Pell leader yield for a question? grams—Medicare, Medicaid, CHAMP- Bryan Hollings Pryor The PRESIDING OFFICER. The Sen- US, and other Federal and State health Bumpers Inouye Reid ate is not in order. Byrd Johnston Robb Mr. DOLE. I will be happy to yield to plans, as well as private sector health Chafee Kassebaum Rockefeller plans, are ravaged by fraud and abuse. Conrad Kennedy Sarbanes the Senator. Daschle Kerrey Simon Mr. BUMPERS. Mr. President, I won- Similarly, no one type of health care Dodd Kerry Wellstone der if it is too early for the majority provider or provider group corners the Dorgan Kohl Wyden leader to tell us if plans have been market on health care fraud. Scams Exon Lautenberg against the system run the gamut from Feingold Leahy made for a session tomorrow and, if so, small companies or practitioners who NAYS—46 will votes be included tomorrow? Mr. DOLE. If we can complete action occasionally pad their Medicare bil- Abraham Gramm Nickles lings because they know they’ll never Ashcroft Grams Pressler on this bill tonight I do not anticipate Bennett Grassley Roth any votes tomorrow. We will probably get caught, to large criminal organiza- Brown Gregg Santorum move to term limits, unless we could tions that systematically steal mil- Burns Hatch Shelby have some agreement. There would not lions of dollars from Medicare, Medic- Coats Helms Simpson aid, and other insurers. According to Cochran Hutchison Smith be any votes. Cohen Inhofe Snowe I do not believe there are that many the FBI, health care fraud is growing Coverdell Jeffords Specter amendments left on this bill. So, as much faster than law enforcement ever Craig Kempthorne Stevens soon as I check with the Senator from anticipated, and even cocaine distribu- D’Amato Kyl Thomas DeWine Lott Thompson Texas, we will be able to proceed. tions are switching from drug dealing Dole Lugar Thurmond Mr. COHEN. Will the Senator yield? I to health care fraud schemes because Domenici McCain Warner inquire whether or not he included the the chances of being caught are so Faircloth McConnell small—and the profits so big. Frist Murkowski antifraud provision in his amendment? Mr. DOLE. We included the Cohen Of particular concern is the growing NOT VOTING—2 antifraud provision, which I think will evidence that health care fraud has in- Campbell Mack save $3 billion. filtrated the health care industries pro- So the amendment (No. 3677) was Mr. COHEN. According to the CBO, viding services to our nation’s elderly agreed to. they scored a $3 billion savings. I want and disabled Americans, and in turn, Mrs. KASSEBAUM. Mr. President, I to commend Senators DOLE and ROTH contributing to the runaway costs of move to reconsider the vote. for including it in the package. We are these entitlement programs. Mr. KENNEDY. I move to lay that losing roughly $18 billion a year just The Inspector General of the Depart- motion on the table. out of the Medicare Program itself, and ment of Health and Human Services, The motion to lay on the table was we are losing about $100 billion itself for example, has cited problems in agreed to. throughout the health care system. It home health care, nursing home, and Mr. DOLE. Mr. President, I suggest works out to about $275 million a day, medical supplier industries as signifi- the absence of a quorum. $11.5 million an hour. I would also like cant trends in Medicare and Medicaid The PRESIDING OFFICER (Mr. to thank Mary Gerwin, Helen Albert, fraud and abuse. Padding claims and CRAIG). The clerk will call the roll. and Priscilla Hanley from the Aging cost reports, charging the government The assistant legislative clerk pro- Committee for all their hard work on and patients outrageous prices for ceeded to call the roll. the fraud legislation. unbundled services, and billing Medi- Mr. DOLE. Mr. President, I ask unan- Mr. President, last spring the Medi- care for costs that have nothing to do imous consent that the order for the care trustees, on a bipartisan basis, is- with patient care are just a few of the quorum call be rescinded. sued an urgent warning that the Medi- schemes that are occurring in these in- The PRESIDING OFFICER. Without care hospital trust fund will go broke dustries. objection, it is so ordered. by the year 2002, unless major changes Unscrupulous providers are enjoying Mr. DOLE. Mr. President, we had are made to protect the system. Since a feeding frenzy on Medicare and Med- hoped that we might have a vote on the that alarm was sounded, the Congress icaid, while taxpayers are picking up Dole amendment, a rollcall vote here. I has been wrestling with ways to bring the tab for their feast. need to check with one Senator on this Medicare spending under control, in It is time that we crack down—and side. Is there any objection on the order to forestall impending bank- shut down—these schemes that are other side to having a vote at this time ruptcy and to strengthen Medicare for bilking billions of dollars from Medi- or not? Are you prepared? both current and future beneficiaries. care and other health care programs. If Mr. DASCHLE. Yes. The debate over how—and how we have asked honest health care pro- Mr. DOLE. I would say with reference much—to control the unsustainable viders to take cuts in reimbursement to the last vote, I think it was a close growth of Medicare spending was part and asked Medicare and Medicaid re- vote. As one of the conferees on the tax of the budget reconciliation process cipients to pay more out-of-pocket side, I think there will still be opportu- which now remains stalled. costs to bring spending under control, April 18, 1996 CONGRESSIONAL RECORD — SENATE S3569 we have an absolute duty to ensure the National Nutritional Foods Associa- should be coordination with existing American public that their health care tion. In general their concerns—which databases. dollars are not lining the pockets of I share—focus on the potential abuse of Mr. HATCH. I appreciate my col- criminals and greedy providers who are the fraud provisions we are passing league’s actions to accommodate my manipulating the system through fraud today. I am sure my colleague is aware, concerns here. Turning to another con- and abuse. for I know he shares my strong support cern I have with respect to reporting I was very pleased that the budget for alternative medicine, that provid- action on licensing and certification of reconciliation bill includes anti-fraud ers of alternative medical treatments health care providers, suppliers and li- legislation that I introduced last year sometimes find themselves in the cross censed health care practitioners, I un- as a result of an investigation of the hairs of the more traditional medical derstand that the Senator intends that Special Committee on Aging and I am establishment. Personally, I believe the actions to be reported are final ac- pleased that my legislation is included that both alternative and traditional tions, after completion of due process. in the leadership amendment on the medicine are important and that both Is my understanding correct? Kassebaum bill. can benefit patients. But, this coopera- Mr. COHEN. That is correct. I would Specifically, the proposal creates tive coexistence has not been fully re- want to make certain that participants tough new criminal statutes to help alized it seems. in the system can avail themselves of prosecutors pursue health care fraud While we are all supportive of strong due process guarantees, and that only more swiftly and efficiently, increases efforts to weed out health care fraud final actions be included in the new fines and penalties for billing Medicare and abuse, I hope the Senator from database. and Medicaid for unnecessary services, Maine will agree that we do not want Mr. HATCH. The last issue I wish to overbilling, and for other frauds to create an opportunity for those who raise is with respect to a data base re- against these and all Federal health might want to eliminate or discourage quirement of reporting providers, sup- care programs, and makes it easier to such alternative treatments by threat- pliers, and licensed health care practi- kick fraudulent providers out of the ening fraud actions under the new lan- tioners who are excluded from partici- Medicare and Medicaid Program, so guage we are considering today. pation in Federal or State health care they do not continue to rip off the sys- Mr. COHEN. My colleague is correct. programs. This is my concern. Increas- tem. I have long been interested in promot- ingly, managed care organizations are Most importantly, the bill estab- ing alternative medical treatments and excluding providers from participation lishes an antifraud and abuse program I do not have any desire to enact a new solely because of economic concerns, to coordinate Federal and State efforts law which might treat such providers not because of any wrong-doing or pro- against health care fraud, and substan- unfairly. Could the Senator from Utah gram violations. For example, a physi- tially increases funding for investiga- share with me specific concerns? cian could be excluded from a managed tive efforts, auditors, and prosecutors. Mr. HATCH. I would be glad to. I care organization certified by the State According to the Congressional Budg- have concerns in four specific areas. to care for the Medicaid population et Office, these provisions will yield First of all, would the Senator agree solely because that provider may have over $3 billion in scorable savings to that the mere practice of unconven- ordered more services than the man- Medicare—without costing a penny to tional or non-standard therapies would aged care plan allows. If a provider senior citizens. I am convinced that the not fall within the definition of fraud? were excluded from participation in long-term savings are much greater, I am not asking you to amend the bill such a plan because of such ‘‘economic and that billions more will be saved here, but rather to give me your assur- decredentialing,’’ could that provider once dishonest providers realize that ances and the implementing agencies be reported to the data base? we are cracking down on fraud, and your guidance that such is the case. Mr. COHEN. That is certainly not my that they can no longer get away with Mr. COHEN. I agree with my col- intent. I have revised the language in illegally padding their bills to pad league that the practice of alternative the bill to state specifically that only their own pockets. medicine in itself would not constitute exclusions for program violations are The legislation has received the sup- fraud. to be reported. port of the FBI Director, the Attorney Mr. HATCH. Thank you. My next Mr. HATCH. I thank Senator COHEN General, the HHS’ Secretary, and the concern relates to creation of the very much for his work in this area, Congress, which passed it as part of health care fraud and abuse data col- and specifically for his efforts to clar- Budget Reconciliation. We should not lection program. As you know, some ify the bill with respect to the treat- let an opportunity to pass this bill go people are concerned about the very es- ment of alternative medical providers. by. We lose as much as $275 million per tablishment at the Federal level of this I think that his changes have improved day or as much as $11.5 million per new program. I understand those con- the bill greatly. I appreciate his efforts hour to health care fraud and abuse. cerns, but I also am very sympathetic in this regard. Every day we wait, will be a victory to to my colleague’s argument that this Mr. PELL. Mr. President, I ask unan- those unscrupulous providers who are would be a strong weapon in our Fed- imous consent to speak as in morning bankrupting our public health pro- eral arsenal to fight the fraud and business for 4 or 5 minutes. grams. abuse which are costing our health The PRESIDING OFFICER. Without I urge my colleagues to support this care system so many billions of dollars objection, it is so ordered. important endeavor and I would like to each year and robbing us of valuable f thank Senators ROTH and DOLE for in- resources which would be better used cluding this proposal as part of the for patient care. THE TRAGEDY IN LEBANON leadership amendment. The specific concern I want to raise Mr. PELL. Mr. president, I am deeply Mr. HATCH. If my colleague would now is that the program not duplicate upset by this morning’s news from Leb- yield for a moment, I would like to existing data bases which already col- anon. As many of my colleagues have take this opportunity to discuss some lect information about credentialing, heard, Israeli shells hit a United Na- concerns I have with the section which licensing, and malpractice violations tions base in the village of Cana near pertains to establishment of a new against providers. Is that the Senator’s the city of Tyre, within which approxi- health care fraud and abuse data col- intent? mately 500 Lebanese civilians had lection program. Mr. COHEN. My language does not taken refuge from the recent fighting Mr. COHEN. I would be glad to yield cover malpractice at all. Further, it is between Israel and Hezbollah. Accord- to my colleague. my intent that the new data collection ing to early press reports, the shelling Mr. HATCH. As you may be aware, system be coordinated with existing caused the death of at least 75 Leba- the alternative medicine community data bases, so that there is no costly nese refugees—and perhaps many more has expressed concerns about this pro- and burdensome duplication of effort. I than that—including men, women, vision. I have received communications have revised the language to reflect my children, and the elderly. At least 120 from, for example, the American Pre- colleague’s concerns in this area. The have been wounded, and two Fijian ventive Medical Association and the new language makes it clear that there peacekeepers were killed. S3570 CONGRESSIONAL RECORD — SENATE April 18, 1996 Both the United Nations and Israel President Clinton has just announced I just ask you all, what would happen agree that minutes before the Israeli that U.S. Special Middle East Coordi- if across the Mexican border Katyusha attack, Hezbollah guerrillas had fired nator Dennis Ross—and subsequently rockets were being fired into El Paso, Katyusha rockets at Israel from a posi- Secretary of State Christopher—will go TX, on a regular basis and the Mexican tion roughly 300 meters from the refu- to the region to try to end the vio- Government did nothing whatsoever to gee camp. Clearly the Israelis were re- lence. I join the President in calling for stop the terrorists from that action? Is sponding to the Katyusha attack, and an immediate cease-fire. After today’s there any American who would say we unintentionally hit the refugee camp. tragedy, I would urge Israel—our should withhold taking action on the Israeli officials, including Foreign Min- friend, ally, and presumably the most grounds that we are crossing an inter- ister Barak, have issued assurances advanced democracy in the region, to national border? I think we would not that Israel is not targeting civilians show greater restraint. As the stronger even think twice about it. and would not have fired intentionally and more enlightened party, Israel I regret deeply the mistaken target on a U.N. base. even should contemplate a unilateral that was, in fact, hit. I am confident If today’s early news reports are cor- cease-fire. I understand fully that Is- the Israelis do as well. But we should rect, then we have witnessed a tragedy rael faces enormous security risks, but be putting international pressure on in the classic sense of the word—the its obligations to avoid miscues such as Syria and Lebanon to act and deal with deaths of these innocent civilians need today are equally great. the Hezbollah operating almost in not have occurred. Hezbollah has no Several Senators addressed the plain view across the Israeli border ter- right to launch rockets in such proxim- Chair. rorizing Israeli citizens. ity to a refugee camp, apparently hop- The PRESIDING OFFICER. The Sen- I yield the floor and thank my col- ing to use the refugees as a shield ate majority leader. leagues. against Israeli retribution. Israel, by f the same token, has no right to re- f spond as it did if it had any inkling HEALTH INSURANCE REFORM ACT that civilians would be harmed. If ei- The Senate continued with the con- HEALTH INSURANCE REFORM ACT ther party had put the best interests of sideration of the bill. The Senate continued with the con- the refugees first, then some 75 inno- Mr. DOLE. Mr. President, I wonder if sideration of the bill. cent noncombatants would be alive we can get the yeas and nays on the VOTE ON AMENDMENT NO. 3676, AS AMENDED, AS right now. Dole-Roth amendment. I ask for the MODIFIED I do not dispute that Israel has a yeas and nays. The PRESIDING OFFICER. The right to its own self-defense. I have The PRESIDING OFFICER. Is there a question occurs on agreeing to amend- taken care not to criticize Israel for its sufficient second? ment No. 3676, as amended, as modified, actions in Lebanon for the past 8 days There appears to be a sufficient sec- offered by the majority leader. because I understand well the threat ond. The yeas and nays have been ordered. The yeas and nays were ordered. that Hezbollah poses to Israel’s secu- The clerk will call the roll. rity. I am keenly aware of—and con- Mr. DOLE. Maybe that vote can follow the statement of the Senator from The bill clerk called the roll. demn—Hezbollah’s actions and inten- Mr. LOTT. I announce that the Sen- tions towards Israel. There can be no Delaware, if it is all right with the ator from Colorado [Mr. CAMPBELL] and doubt that Hezbollah aims squarely to Senator from North Dakota to wait for the Senator from Florida [Mr. MACK] undermine the Middle East peace proc- a later time. Then after 3 minutes for the Senator are necessarily absent. ess, and I, in fact, agree with the wide- The PRESIDING OFFICER (Mr. ly held public sentiment that Israel from Delaware, we can start the vote DEWINE). Are there any other Senators was prodded into this latest operation on the Dole-Roth amendment. in the Chamber desiring to vote? in Lebanon. The overwhelming carnage f The result was announced—yeas 98, of the past 8 days, however, compels TRAGIC MISTAKE IN LEBANON nays 0, as follows: me to call attention to what increasingly looks to be a disproportionate Is- Mr. BIDEN. Mr. President, I thank [Rollcall Vote No. 73 Leg.] raeli response. We cannot wring our the majority leader. I was not going to YEAS—98 hands about Hezbollah attacks against take the occasion today, but in light of Abraham Feinstein Lugar civilians and say nothing of Israeli ex- the distinguished Senator from Rhode Akaka Ford McCain Ashcroft Frist McConnell cesses, whether or not they were inten- Island speaking on this issue, I do not take issue with what he said but em- Baucus Glenn Mikulski tional. Human life, after all, means as Bennett Gorton Moseley-Braun much on one side of the border as the phasize a very important point, from Biden Graham Moynihan other. my point of view: this issue of sov- Bingaman Gramm Murkowski ereignty in Lebanon and whether or Bond Grams Murray In the effort to root out Hezbollah, Boxer Grassley Nickles the Israelis appear to be attempting to not there was a tragic mistake made in Bradley Gregg Nunn cripple Lebanon’s civilian economy and this particular raid. I do not deny there Breaux Harkin Pell infrastructure. But as it tries to turn was a tragic mistake that was made. Brown Hatch Pressler I know we all know and heard that Bryan Hatfield Pryor Lebanon against Hezbollah, Israel is Bumpers Heflin Reid running the risk that Lebanese Gov- the Israeli military had no intention of Burns Helms Robb ernment and people will lose any stake striking the target they, in fact, Byrd Hollings Rockefeller struck. That happens in war. But the Chafee Hutchison Roth in settling their differences with Israel Coats Inhofe Santorum peacefully. I fail to see how such an full responsibility, in my view, falls on Cochran Inouye Sarbanes outcome serves Israel’s long-term in- the Lebanese Government and the Syr- Cohen Jeffords Shelby terests. ian Government. How can we talk Conrad Johnston Simon about sovereignty, how can we talk Coverdell Kassebaum Simpson In being critical of Israel, I do not Craig Kempthorne Smith wish to absolve the Lebanese Govern- about the notion that you cannot vio- D’Amato Kennedy Snowe ment or Syria of their own responsibil- late a nation’s borders when, in fact, Daschle Kerrey Specter ities. Lebanon does not have the luxury one nation—and the nation in this DeWine Kerry Stevens Dodd Kohl Thomas of throwing up its hands and saying case, Lebanon—has within its borders Dole Kyl Thompson that it has no control over Hezbollah, Hezbollah that is, in fact, not under its Domenici Lautenberg Thurmond and then complaining when Israel control but within its mandate, and Dorgan Leahy Warner takes matters into its own hands. That take no action to stop the action they Exon Levin Wellstone Faircloth Lieberman Wyden is having it both ways. And I reserve are taking, firing Katyusha rockets Feingold Lott special criticism for Syria. Syria has into civilian populations into Israel both the power and the means to shut and Syria, which has control of much NOT VOTING—2 down Hezbollah, but cynically lacks of that area, refusing to do anything to Campbell Mack the will and has allowed Hezbollah’s stop it, and then criticize Israel for So the amendment (No. 3676), as terrorism to go unchecked. acting. amended, as modified, was agreed to. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3571

Mr. MCCONNELL. Mr. President, 2 I am particularly supportive of the couple can be tapped through an estate years ago, the Senate debated Presi- long-term care provisions included in recovery action to compensate the dent Clinton’s massive, 1,400-page pro- the Finance package. The ability to ac- State for the couple’s Medicaid ex- posal to radically restructure Ameri- cess quality, private long-term care in- penses. ca’s health care system. After great fan surance plans is pivotal to families fac- Since 1990, Medicaid expenditures for fare, this big-government era proposal ing the emotional and financial chal- long-term care have been increasing by faltered under the crushing weight of lenges of long-term care. almost 15 percent annually, causing its 8 new entitlements, 17 new taxes, 50 Traditionally, a family member, costs to double every 5 years. Medic- newly-minted government bureauc- most likely a wife or daughter, has aid’s service as the sole long-term care racies, 177 new State mandates, and cared for an ailing spouse or parent at safety net for middle class seniors may nearly 1,000 new Federal powers and re- home. However, today’s pressures of seriously impair the program’s ability sponsibilities. work, child-rearing, and family mobil- to serve the underprivileged. While Republicans promised then that we ity greatly restrict the ability of adult low-income families accounted for 73 would provide the focused, consumer- children to administer to the day-to- percent of Medicaid’s beneficiaries in based health care reform plan that day needs of a chronically ill parent. In 1993, nearly 60 percent of expenditures Americans have asked for by an over- addition, the rigors of home-based care went to nursing home care and other whelming margin. Today, under the can have a debilitating impact on the long-term care services. For example, leadership of Senator KASSEBAUM, Sen- health and well-being of a caring in 1993, Kentucky’s Medicaid spending ator ROTH, and Senator DOLE, we de- spouse. per enrollee for children was $964; while liver on that promise. As America’s population ages, the the cost for elderly beneficiaries was S. 1028, the Health Insurance Reform need for long-term care increases. In $6,540. Without relief, a harsh battle be- Act, focuses on alleviating key burdens 1993, almost 33 million Americans were tween generations may emerge. that restrict the ability of Americans over the age of 65, and by 2011, the el- Mr. President, I am pleased that my to obtain and maintain health care derly population is estimated to num- work with Senator ROTH has produced coverage—a lack of portability and the ber close to 40 million. While the op- a sound plan in response to this critical barrier of preexisting conditions. portunity for a happy and healthy re- health care need. The Finance amend- Today when Americans change jobs or tirement is better than ever, an Octo- ment includes several reforms which I face layoffs, they are at-risk of becom- ber 1995 long-term care survey by Har- supported through my own long-term ing uninsured or subject to preexisting vard/Harris revealed that one in five care bill: providing long-term care in- condition exclusions. When employers Americans over age 50 is at high risk of surance with the same favorable tax are forced to frequently change health needing long-term care during the next treatment now available to medical in- care plans to control costs, employees 12 months. surance; allowing tax-free withdrawals with medical conditions find them- Today, a variety of long-term care from life insurance policies for termi- selves further exposed to coverage services are available, from help in nally and chronically ill patients; and gaps. cleaning one’s home and getting gro- establishing sound consumer protec- S. 1028 presents reforms that defini- ceries to skilled nursing care with 24- tions. tively address these problems. This bill hour supervision. However, the means Private long-term care insurance limits the ability of insurers and em- to pay for long-term care are still very translates into quality, flexible care ployers to impose preexisting condition limited and the expense can be over- for seniors, more Medicaid funds for exclusions. It prevents insurers from whelming. For example, $59 billion was low-income families and the disabled, dropping coverage when an individual spent on nursing home care for the el- and essential support for families who changes jobs or a family member be- derly in 1993, and 90 percent was cov- want their loved ones to be safe and se- comes sick. It helps small companies ered by out-of-pocket payments and cure. These are priorities that all mem- gain more purchasing clout in the mar- Medicaid. bers of Congress share. We should not ket by allowing them to voluntarily The cost of paying out-of-pocket for 1 miss this opportunity to help Ameri- form purchasing coalitions. According year in a nursing home is more than ca’s families prepare for the challenges to GAO, S. 1028’s portability reforms triple a senior’s average annual in- of long-term care. will help 25 million Americans each come. Long-term care expenses put a I regret that the Senate was unsuc- year. lifetime of work and investment at cessful in retaining Finance’s proposal By alleviating job lock and providing risk. To gain Medicaid coverage, sen- to provide Americans with the choice States with greater flexibility to ad- iors must ‘‘spend down’’ their assets in of Medical Savings Accounts, better dress the coverage needs of high-risk order to meet State eligibility require- known as MSAs. Today, we have wit- consumers, S. 1028 presents broadly ments. While Medicare takes care of nessed a full-court press against MSAs supported, commonsense reforms that build upon successful State health care hospital costs and home care, it pro- by those who favor greater government initiatives. vides only limited coverage for short- management of health care rather than I am proud to join with 64 of my col- term stays in skilled nursing facilities. the expansion of private-sector health leagues in cosponsoring S. 1028’s rea- The medical side of long-term care care choice. They raise the specter of sonable plan to promote private sector has seen enormous advances over the how MSAs would wreck havoc across competition and market-driven innova- years in new technologies, facilities, our Nation’s health care system, and tion. This proposal fulfills Americans’ treatment methods, and even psycho- present the threat of a Presidential request 2 years ago for sound, focused logical studies of the effects of long- veto of any health care bill that con- solutions to our Nation’s health care term care on patients. But the financ- tains MSAs. concerns. ing side of long-term care has simply Mr. President, I find this attitude S. 1028’s reforms to enhance the failed to keep up, and as a result it is starkly contrasts the promotion of availability of health care coverage is ill-prepared for seniors’ future needs. MSAs by the Democratic leadership further supported by the Finance Today, private insurance pays for less just a few years ago. In 1992, Senator amendment’s provisions to address the than 2 percent of long-term care costs. DASCHLE viewed MSAs as a means to affordability of health care insurance. As Federal mandates for Medicaid cov- effectively control medical spending by First, the Finance amendment in- erage have increased, States have at- allowing employers to provide their creases the tax deduction for self-em- tempted to contain costs by restricting employees with an annual allowance ployed who purchase health insurance services for the elderly. State-imposed through a MSA to pay for their routine by 5-percent increments from the cur- caps on the number of Medicaid-spon- health care needs. During the 1994 con- rent 30 percent to 80 percent. sored nursing home beds has separated sideration of the Clinton health care Second, it provides tax exemptions to families from their loved ones because plan, Representative GEPHARDT offered State-sponsored risk pools which help the only Medicaid beds available were a MSA plan in his leadership proposal, bring down the cost of health insurance hundreds of miles away from their and all but one Democratic member of for businesses and high-risk individ- community. Most disturbingly, the re- the House Ways and Means Committee uals. maining assets of a deceased elderly supported it. S3572 CONGRESSIONAL RECORD — SENATE April 18, 1996 Just last week, President Clinton We want to complete action on this rules, and can set their own benefits. called for an expanded use of retire- bill. If we do, we will not have votes to- They also have less paperwork—comment accounts to pay for certain morrow. We may have debate on term plying with one general standard as op- health care expenses. Ironically, Demo- limits, but no votes. We need to composed to 50 different State standards cratic members tell us today that the plete this to keep on schedule here. We saves a lot of trees. President firmly rejects the specific es- still have to go back and finish illegal So we see that unions and big busi- tablishment of a medical account to immigration. We have a day or two to ness have it easy when it comes to cov- pay for health care costs. make up there. Maybe we can do that ering their members or workers. What This inconsistent rhetoric blurs the next week, and, if not, the following about the small businessperson? potential benefits of a MSA option. In week. Well, the self-employed or small busi- 17 states, 3,000 businesses as well as I hope anybody who has amendments ness owner does not have the bargain- state and local governments are using will come to the floor. I know the Sen- ing power of a large corporation or MSAs. Based on a recent survey by ator from North Dakota wishes to union. They do not qualify for ERISA Blue Cross/Blue Shield, 67 percent of speak. That will be 15 minutes. So any- exemption. They have to comply fully employers surveyed were interested in body that has an amendment, if you with State regulations. MSAs. For employers who can not af- can be on the floor at, say, 5:30, it So, says the National Federation of ford conventional coverage, and par- would be helpful to the managers. Independent Businesses, small busi- ticularly for lower income workers, Mr. LOTT. Mr. President, I want to nesses’ premiums are 30 percent higher MSAs offer an affordable option to se- talk about a needed addition to the than large corporations due to State curing much-needed health care insur- Kennedy-Kassebaum legislation. mandates. Also, small businesses pay ance. If you are an employee of a Fortune 30 percent more for similar benefits As the House health care bill con- 500 company, you will probably make than larger corporations. tains MSAs, it is my hope that this out okay under Kennedy-Kassebaum. If We talk a lot about the uninsured in provision will be included in the con- you are a union member, you’ll defi- this body. The Kennedy-Kassebaum bill is one way of addressing part of the ference committee’s final legislative nitely come out ahead. problem. A large source of uninsured proposal for health care reform. But there is not enough in Kennedy- Mr. President, in sum, S. 1028 and the Kassebaum to address the needs of Americans though, is the inequity be- reforms included in the Finance working families and small businesses. tween small businesses and large businesses and unions. Kennedy-Kassebaum amendment provide sensible, fun- How can you have health care port- does not adequately address this issue. damental solutions to America’s health ability when you cannot afford health Any final bill should include what care concerns. President Clinton has care, like many small businesses can- the House did, and allow small busi- promised that ‘‘the Era of Big Govern- not afford to provide for their employ- nesses to form groups to purchase full ment is over.’’ In fulfillment of his ees? health coverage or cover their employ- In the House-passed health port- promise, the President should support ees under self-insured health plans. Al- S. 1028’s effort to provide health care ability bill, there was a pro-small busi- lowing small companies to join to- security through greater consumer ness provision that I think we should gether would give them bargaining choice, not greater Federal regulation. include in any bill sent to the Presi- powers similar to big businesses or Mr. KENNEDY. Mr. President, it is a dent. unions. They would be exempt from little after 5 now. We started off early The provision, which the House certain burdensome State mandates. today at 9:30. We had a number of called the Health Coverage Availabil- Also, the House proposal allows speeches, a good debate, and, I think, ity and Affordability Act of 1996, clari- States that allow small employers ac- we had two enormously significant fies existing law. It allows small em- cess to the small group market to opt votes here which, I believe, open up the ployers to join together to purchase out of the bill. The House bill balances way for an early conference. Hopefully, health insurance for their employees. the need for uniformity of laws across if our good friends in the House view This act also included provisions allow- States, while maintaining States’ the medical savings accounts the way ing individuals to open medical savings rights. it was reflected here in the Senate, we accounts—something I support. The House bill is a good bill, and can have this bill on the President’s But let me dwell on the small-busi- would have an immediate effect. desk in very short order. ness pooling aspect of this act. Right About 85 percent of the 40 million un- The leaders have instructed that we now, before we pass any bill in this insured are in families with at least will stay here through this evening. We Chamber, certain groups can pool their one employed worker, many of whom want to deal with these various meas- resources to buy lower cost insurance work for small businesses. That is a lot ures. Earlier today, we asked Members, for their members or employees. These of people who could be covered if we if they had amendments, to come up certain groups are large corporations changed the rules. and see us. We are working through and unions. For years, these groups The National Center for Policy Anal- some, which are effectively universally could bargain for lower prices with in- ysis says that one in five small compa- accepted. We will try and make sure surers. If you are bigger, you can dic- nies that do not now offer health insur- they are. If they are controversial and tate better terms. That is just econom- ance would do so if they could get free not unanimously supported, we will re- ics. of heavy State mandates. sist them. We want to try to move this Unions and big business also could If these companies could have the along. exempt themselves from burdensome same opportunity as big companies and We have had a good day. We still State regulations. Each State has a dif- unions, 6.3 million people would have have some outstanding amendments, ferent list of benefits that insurers usu- access to health care. Immediately, but there is no reason we cannot finish ally must pay for. you would take care of almost 16 per- this by 8 or 9 o’clock this evening. So Back in 1974, there were only 158 cent of the uninsured in America. Oth- we hope the Members who have amend- State-mandated benefits. Now, there ers say 50 percent of the uninsured ments will come in now. There are are over 1,000 State-mandated benefits could probably have access to health some people that will just wait and see. that insurers usually must cover. Some care. But Senator KASSEBAUM and I are com- benefits covered in various States in- Whatever the number, we can take a mitted to trying to get this finished up cluded massage therapy, acupuncture, substantial leap toward providing in short order. We will ask those that hairpieces—and there are more exotic health care for all Americans—all planned to offer their amendments, if treatments. Many of these mandates without new taxes or unfunded man- they would, to contact us right away. are expensive. No wonder health costs dates. Otherwise, we will move to third read- are going up each year. I am not the only one who thinks ing. I said that insurers usually must this is a good idea. Mr. President, I will Mr. DOLE. Mr. President, let me in- cover these benefits. Under the Federal soon submit for the RECORD two letters dicate and underscore what the Sen- ERISA law, unions and large corpora- to the House leadership from the Na- ator from Massachusetts just stated. tions are exempted from some State tional Association of Manufacturers April 18, 1996 CONGRESSIONAL RECORD — SENATE S3573 and the National Restaurant Associa- approach. The NAM is therefore pleased both gether to purchase health insurance for tion in support of the House bill. to endorse and to enthusiastically support their employees. Also, the chamber of commerce, Na- your plan. This act also included provisions al- tional Association of Independent Busi- Sincerely, lowing individuals to open the medical JERRY JASINOWSKI, nesses, National Retail Federation, and President. savings accounts that we have already other groups supported the bill I have dealt with this afternoon. I really do been talking about here. NATIONAL RESTAURANT think there is a real justification for So there is much support for this, ASSOCIATION, small businesses to be able to join and I hope at least in conference we Washington, DC, March 27, 1996. pools and provide coverage for their can look at this issue, and provide House of Representatives, workers. That could be a pool through some relief for small business and the Washington, DC. the Restaurant Association, the Na- DEAR REPRESENTATIVE: On behalf of the self-employed. I personally believe that National Restaurant Association and the tional Federation of Independent Busi- we have been unfair to the job creators 739,000 foodservice units nationwide, we urge ness, or within their own corporation. and those who want to be their own you to support H.R. 3103, the Health Cov- I realize that it is not as simple as it boss. erage Availability and Affordability Act. sounds, but it is something that should Right now, self-employed people can As you may know, our industry has been be done. I think it would help a lot of only deduct 30 percent of their health working to enact healthcare reform legisla- people now that work for small busi- care costs. Big businesses and unions tion for years. Our research continues to nesses—particularly fast food serv- can deduct 100 percent. This year, Con- demonstrate that the basic reason why em- ices—be able to get access to insurance ployers and individuals do not purchase gress passed a bill that would have health insurance is because of the cost. This through these pools. raised this 30 to 50 percent. Guess legislation takes a major step forward by So I will be working with the con- what? The President vetoed it! Is this eliminating some of the barriers that pre- ferees to try to get them to take a look fair? Is this pro-business? Is the Presi- vent people from purchasing health insur- at this and see if we cannot perhaps dent for entrepreneurship in this coun- ance, while at the same time helps keep perfect some of the language that was try? down the cost. in the House bill and allow this cov- I think it is high time that the Presi- The restaurant industry is dominated by erage to be available. dent signs the bill he vetoed, and we small businesses. More than four out of ten I know of many instances where peo- eating and drinking places are sole propri- should eventually pass the House bill etorships or partnerships. Nine out of ten ple are working for hamburger places that expands health care for Americans eating and drinking places have less than 50 or pizza places, where most employees who work for small businesses. paid employees. Seventy-two percent of eat- have no coverage. They cannot afford The large companies and the unions ing and drinking places have sales of $500,000 it, and the employer cannot provide it. have had the benefits and advantages a year or less. While many would like to This would give them a way to get it for too long. If they can do it, a small offer their employees health benefits, the through pools. businessman in Pascagoula should be cost has proven to be prohibitive. I hope we will look at this approach In addition to addressing key concerns in the conference, since it is in the able to cover his family and employees. about portability and preexisting condition Let us help small business in this limitations, H.R. 3070 would increase the de- House bill. If we cannot work it out chamber. Remember them in this deductibility of health insurance for the self- there, let us see if we cannot find an bate we are having about health care. employed from 30 percent to 50 percent. For opportunity to give serious consider- I ask unanimous consent that the small businessmen and women—and their ation to this at the earliest oppor- letters I mentioned be printed in the families—deductiblity of health insurance tunity. RECORD. premiums is a must. Other important compo- Mr. KENNEDY. Mr. President, we There being no objection, the mate- nents of the legislation tackle medical mal- have some provisions in here to encour- rial was ordered to be printed in the practice reform, fraud and abuse and admin- age pooling among small businesses. istrative simplification. Also, this legisla- We would be glad to work with the RECORD, as follows: tion will allow small businesses to form vol- NATIONAL ASSOCIATION OF untary purchasing pools which would help Senator from Mississippi in reviewing MANUFACTURERS, level the playing field by giving them some that language, since the House has Washington, DC, March 8, 1996. of the negotiating tools of large businesses similar language, to find out how we Hon. J. DENNIS HASTERT, and reducing the cost of providing coverage. may be able to make that more effec- Chief Deputy Whip, House of Representatives, The National Restaurant Association is tive. And we will certainly be glad to Washington, DC. strongly opposed to any amendment that visit with him prior to the time of the DEAR REPRESENTATIVE HASTERT: I am de- would raise the cost of health coverage with conference and see if we cannot find lighted to hear that the House Republican federal mandates or by expanding COBRA leadership has put together a package of re- coverage. If employers cannot control the ways of making it more effective. He alistic and achievable health care reforms costs of their own health care plans because has identified a very important prob- and will pursue them as part of the 1996 leg- Congress mandates certain types of cov- lem and challenge, and we attempted islative agenda. It is my understanding that erage, employers will be forced to drop their to make some important, modest steps, these reforms include: coverage altogether. but very important steps, I think, to Portability reforms to ensure that employ- We urge you to support H.R. 3103, the encourage this kind of activity and ees won’t be denied health coverage if they Health Coverage Availability and Afford- programs. He has additional ideas, and change or lose their jobs; ability Act. Medical malpractice reforms so that valu- Sincerely, we look forward to talking with him. Mr. LOTT. I thank the Senator. I will able dollars intended for health care won’t be ELAINE Z. GRAHAM, wasted on frivolous litigation; Senior Director, Gov- be glad to work with him on this issue. Increased health insurance deductibility ernment Affairs. AMENDMENT NO. 3678 for the self-employed to further mitigate un- CHRISTINA M. HOWARD, (Purpose: To provide equitable relief for the fair differences based solely on the form of Legislative Represent- generic drug industry) doing business; ative. Mr. BROWN. Mr. President, I send an Reforms to facilitate small group pooling Mr. LOTT. Mr. President, I had an and thereby improve both affordability and amendment to the desk and ask for its access for small businesses; amendment that I drafted, which I will immediate consideration. Medical savings account provisions to fur- not offer at this time for a variety of The PRESIDING OFFICER. The ther improve both choice and affordability reasons. I do want to move this legisla- clerk will report. for all Americans; and tion along. But in the House-passed The bill clerk read as follows: Accountability provisions to curb fraud bill, there was a pro-small-business The Senator from Colorado [Mr. BROWN] and abuse, leading to lower costs throughout provision, and I think we should in- proposes an amendment numbered 3678. the system. clude that in any bill that we send to Mr. BROWN. Mr. President, I ask These are all provisions which NAM has the President. The provision, which the supported in the past and continues to sup- unanimous consent that reading of the port. In our view, this kind of targeted, in- House called the Health Coverage amendment be dispensed with. cremental approach, which retains the pri- Availability and Affordability Act of The PRESIDING OFFICER. Without vate, voluntary health system while improv- 1996, clarifies existing law. It allows objection, it is so ordered. ing and strengthening it, is exactly the right small business employers to join to- The amendment is as follows: S3574 CONGRESSIONAL RECORD — SENATE April 18, 1996 At the appropriate place in title III, insert an approved drug that is the subject of an ap- take that we need to correct at this the following: plication described in subsection (b); or time. SEC. . EQUITABLE TREATMENT FOR THE GE- (2) the importation by the applicant into The first time we brought this issue NERIC DRUG INDUSTRY. the United States of an approved drug or of to a vote on the floor was December 7, (a) SENSE OF THE SENATE.—It is the sense active ingredient used in an approved drug of the Senate that the generic drug industry that is the subject of an application de- 1995. On that particular vote, the vote should be provided equitable relief in the scribed in subsection (b). cast in the Senate was 48 to 49. There same manner as other industries are pro- (g) APPLICABILITY.—The provisions of this was one abstention. There was one ab- vided with such relief under the patent tran- section shall govern the approval or effective sent Senator. And since that day, since sitional provisions of section 154(c) of title date of approval of all pending applications that particular delay, I think it might 35, United States Code, as amended by sec- that have not received final approval as of be interesting to note that very few—a tion 532 of the Uruguay Round Agreements the date of enactment of this Act. handful of drug companies—Glaxo spe- Act of 1994 (Public Law 103–465; 108 Stat. Mr. BROWN. Mr. President, this is 4983). cifically, have made a profit, or a gross (b) APPROVAL OF APPLICATIONS OF GENERIC not a new subject for Members of Con- income, because of this variation in the DRUGS.—For purposes of acceptance and congress. This is one we have considered GATT Treaty giving a particular ex- sideration by the Secretary of an application before. I will make my remarks very ception, a particular benefit, to a hand- under subsections (b), (c), and (j) of section succinct. I know other Members are ful of drug companies. There has been 505, and subsections (b), (c), and (n) of sec- waiting to speak. an extra $5 million per day in income tion 512, of the Federal Food, Drug, and Cos- What this does is complete our con- to these companies. Since December 7, metic Act (21 U.S.C. 355 (b), (c), and (j), and sideration of GATT. In the GATT 360b (b), (c), and (n)), the expiration date of 1995, we have seen an income of $665 a patent that is the subject of a certification agreements, the provisions with regard million extra to these drug companies under section 505(b)(2)(A) (ii), (iii), or (iv), to exclusive use of drugs was extended. that is being paid out of the pockets of section 505(j)((2)(A)(vii) (II), (III), (IV), or But the GATT provided specifically for the consumers especially for drugs section 512(n)(1)(H) (ii), (iii), or (iv) of such exceptions where people have made such as Zantac; $665 million—a windfall Act, respectively, made in an application substantial investments in generic profit gift that we have given to these submitted prior to June 8, 1995, shall be drugs. This goes along with the lan- particular companies, and especially to deemed to be the date on which such patent guage in the GATT agreement. It puts would have expired under the law in effect on a company called Glaxo. the day preceding December 8, 1994. us in conformity with what other coun- We also note that Senator HATCH (c) MARKETING GENERIC DRUGS.—The rem- tries are considering. It allows us to wrote a letter to us, the sponsors of edies of section 271(e)(4) of title 35, United provide the original length of protec- this amendment, on December 13. He States Code, shall not apply to acts— tion that was planned for drugs. said he promised hearings on February (1) that were commenced, or for which a Without action on this amendment, 27, 1996. So we waited and waited and substantial investment was made prior to what we stand to have is American June 8, 1995; and waited around for that hearing. Ac- (2) that became infringing by reason of sec- consumers lose roughly $5 million a cording to his promise, the distin- tion 154(c)(1) of such title, as amended by day. The impact on U.S. consumers is guished chairman, Senator HATCH, held section 532 of the Uruguay Round Agree- roughly $5 million. Every day we delay a hearing. By that time another $310 ments Act (Public Law 103–465; 108 Stat. enacting this means a day in which million had been given to the drug 4983). consumers are denied generic drug al- companies in a windfall profit situa- (d) SUBSTANTIAL INVESTMENT.—For pur- ternatives, which can save them $5 mil- poses of this Act and section 154(c)(2)(A) of tion. title 35, United States Code, with respect to lion a day. We have already delayed to We waited another month—until a product that is subject to the requirements a point where, by the end of this March 28, 1996. The Judiciary markup of subsections (b)(2) or (j) of section 505, or of month, U.S. consumers will have lost was scheduled, and it was abruptly can- subsections (b)(2) and (n) of section 512, of over $700 million, and the price tag celed. So once again there was a delay. the Federal Food, Drug, and Cosmetic Act rises dramatically. This morning, on April 18, 1996, an- (21 U.S.C. 355(b)(2) and (j), and 360(b)(2) and A bill we had up in committee was other Judiciary markup on S. 1277 to (n), the submission of an application de- put off. It is, thus, imperative that we correct this egregious error in GATT scribed in subsection (b), and only the sub- offer this on this vehicle. It is an enor- mission of such an application, shall con- was held. And, when the Senators ar- stitute substantial investment. mous savings to American consumers. rived at the markup, it was noted that (e) NOTICE.— Mr. President, it is fairness because a Senator had put a hold on the mark- (1) IN GENERAL.—Unless the notice required it gives drug companies the same pro- up, that there would be no actual vote by this subsection has previously been protection for which they planned on all on S. 1277. And, therefore, Mr. Presi- vided, when an applicant submitting an ap- along. But it does not give them a dent, another $665 million in profits for plication described in subsection (b) receives windfall, or more than what was a very few drug companies. notice from the Secretary that the applica- planned. tion has been tentatively approved, such ap- Now it is noted that the chairman plicant shall give notice of such application Mr. President, I yield the floor at this morning stated that if possible we to— this point. will have a hearing in the Judiciary (A) each owner of the patent which is the Mr. PRYOR addressed the Chair. Committee next week on the 25th of subject of the certification or the represent- The PRESIDING OFFICER. The Sen- April, and possibly we could mark this ative of such owner designated to receive ator from Arkansas. bill up, S. 1277. such notice; and Mr. PRYOR. Mr. President, I thank But in the meantime, Mr. President, (B) the holder of the approved application the Chair for recognizing me. under section 505(b) or section 512(c)(1), re- the clock is running. We feel that this spectively, for the drug which is claimed by Mr. President, I am very pleased and is a health bill, that this is the proper the patent or a use of which is claimed by honored to join with my friend from way to bring this bill to the attention the patent or the representative of such Colorado, Senator BROWN, in the intro- of our colleagues, and it is the proper holder designated to receive such notice. duction of this amendment. This is the measure to attach this correction to (2) CERTIFICATION OF NOTICE.—The appli- so-called GATT Glaxo amendment. The the GATT Treaty. cant shall certify to the Secretary the date issue has been presented here on the We hope that our colleagues will sup- that such notice is given. The approval of floor. In fact, this is a simple way of port this measure. such application by the Secretary shall not be made effective until 7 calendar days after correcting a major mistake that Con- Mr. President, I thank the Chair for the date so certified by such applicant. gress made in adopting the GATT Trea- recognizing me. I yield the floor. (f) EQUITABLE REMUNERATION.—For acts de- ty. It was an oversight. It has been tes- Mr. HATCH. Mr. President, although scribed in subsection (c), equitable remu- tified to time and time again by Mick- I understand that the Senator from neration of the type described in section ey Kantor—our then U.S. Trade Rep- Colorado plans to withdraw his amend- 154(c)(3) of title 35, United States Code, as resentative who negotiated this par- ment, I want to take this opportunity amended by section 532 of the Uruguay ticular treaty—that it was a mistake, to express my opposition to both the Round Agreements Act (Public Law 103–465; and that it needs to be corrected. The Brown/Pryor/Chafee amendment and 108 Stat. 4983) shall be awarded to a patentee only if there has been— Patent Office said it was a mistake, the idea that it should be included as (1) the commercial manufacture, use, offer and all up and down the line people part of the Kassebaum-Kennedy health to sell, or sale, within the United States of agree that this was an enormous mis- insurance reform measure. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3575 I said it on December 7, and I say it amendment that would achieve a result MINIMUM WAGE AND SOCIAL today: ‘‘Here we go again.’’ which is clearly intended by Congress. SECURITY Four months ago, we considered the Again today we heard the now famil- Mr. DORGAN. Mr. President, I intend Pryor language in this chamber. That iar litany on the issue of intent. We to yield some of that time to the Sen- time, it was an amendment to the par- heard about Ambassador Kantor, FDA ator from South Carolina. tial birth abortion ban bill the Presi- Deputy Commissioner Bill Schultz, and Mr. President, everyone has a right dent just vetoed. We agreed then, by a all the other Administration represent- to characterize or mischaracterize the vote of this body, that the Judiciary atives who attend the school of revi- activities of the Senate. A colleague of Committee should hold hearings on the sionist history on this issue. mine during the previous debate on the issue. What has become apparent to me motion to strike came to the floor and On December 13, I sent a letter to during this debate, a fact which has in that debate characterized the series Senators PRYOR, BROWN, and CHAFEE, not been revealed today by any of my of things that had happened earlier and I made a commitment to hold a colleagues, is that the argument on in- this week—or rather mischaracterized hearing on February 27 and a markup tent has been rejected by the Court of them—and described the certain cir- by the end of March. Appeals for the Federal Circuit, which cumstances as highly partisan, just In fact, the committee did hold the could find no definitive evidence of in- politics, and so on. hearing on February 27, as I promised. tent. I felt it necessary that I correct the I agreed to hold a markup the week of In the November, 1995 Royce deci- RECORD and not allow this moment to March 25, but had to delay that be- sion, the Federal Circuit stated: pass without responding. I want every- cause of lengthy committee consider- The parties have not pointed to, and we one to understand that there are times ation of the immigration bills. I re- have not discovered, any legislative history here in the Chamber when amendments scheduled the markup at the first op- on the intent of Congress, at the time of pas- are offered that it is not convenient for portunity. In fact, it was to have been sage of the URAA, regarding the interplay people, amendments are offered that today, but as my colleague may have between the URAA and the Hatch–Waxman just are uncomfortable for people. But heard, we did not get a quorum. Act. the way the system works here is I still intend to press forward expedi- Perhaps some day my colleagues can sometimes you do not have an oppor- tiously for consideration of this issue explain why it is that the Federal Cir- tunity to offer an amendment except in in the committee. It will be on the cuit, a neutral judicial tribunal, is hav- the certain circumstance, and then you agenda for the next markup and that is ing so much trouble finding any evi- must offer it, or you are never going to my commitment. dence on the question of intent, a ques- have a chance to have the Senate con- I find it ironic that proponents of tion that seems to lie at the center of sider it. this amendment are using the same this debate. We had a circumstance earlier this timetable as I. There is no disagree- Perhaps some day my colleagues can week where a bill was brought to the ment here. The process is moving for- explain why, in their quest to ‘‘level floor of the Senate. Senator KENNEDY, ward. the playing field,’’ they have created a I, and some others were intending to In sum, I have lived up to my word. special benefit for one industry. I chal- offer an amendment. Senator KENNEDY As a matter of fact, I have bent over lenge them to identify any industry was going to offer an amendment on backwards to accommodate the inter- that has attempted, let alone suc- the minimum wage, which I support. ests of this body in a full and fair exceeded, to use the GATT transition That is inconvenient for some people. amination of the issue. rules to reach the market prior to expi- They do not want to debate the mini- We had 10 witnesses at the February ration of the newly extended patents. mum wage. Some in this Chamber say 27 hearing, 5 on each side. It was a good It just hasn’t happened, and it probably we do not want to deal with the mini- session, one during which I believe we will not unless anyone can identify mum wage issue. Some of us do. Some all learned a lot. acts that would not have been infring- of us think when you have gone 6 years I plan to go ahead with the markup. ing before we enacted the URAA that without a change in the minimum We will try to work out a resolution. I continued and became infringing after wage that at least those on the lower hope we will be able to. I don’t think the URAA was enacted. rung of the ladder have lost one-half that the Brown amendment today It is curious to me that a lawyer for dollar of their purchasing power from meets that test. the generic drug industry would argue the minimum wage, and maybe people The GATT/pharmaceutical patent to the Supreme Court that ‘‘the most in this Chamber ought to care a little issue is unquestionably one of the most obvious intended beneficiary of this about that. I know there are no high- complicated we have seen, as it in- statutory licensing system was the ge- paid lobbyists out beyond this Chamber volves the confluence of patent law, neric drug industry . . . In fact, since saying, ‘‘Yes, we care about the people trade policy and food and drug law and the adoption of TRIPS and the URAA, at the bottom of the economic ladder.’’ regulations. no industry other than the generic If we are working on issues that dealt Its resolution has potentially enor- with the people at the top of the lad- mous consequences, both on the future drug industry has emerged as being potentially affected by the equitable re- der, you can bet the halls would be full of biomedical research in this country of high-paid lobbyists. But not for the and on the ability of consumers to have muneration system.’’ I will not prolong my remarks today. minimum wage. access to the most safe, effective, and Some of us insist that these are is- I look forward to exploring these and low cost drugs possible. sues that we ought to be debating. other issues in much greater detail at The proponents of this amendment Is it partisan? No. It is public policy. argued today, as they have in the past, the markup. The second issue which I introduced that this is a case of Congress making In closing, I want to reiterate my as an amendment on Monday dealt a simple mistake and that now we strong opposition to the amendment, with the Social Security issue. It is should act to fix this mistake by adopt- and my disappointment that we are mischaracterized as totally partisan, ing this technical mistake. considering it here today prior to the irrelevant, and a troublemaking This is the type of argument that is Judiciary Committee’s scheduled amendment. often made when this body acts markup. Let me describe what this issue is. through unanimous consent. Mr. DORGAN addressed the Chair. Let me go back to 1983. In 1983 this I wonder how many times we have The PRESIDING OFFICER. The Sen- Congress passed the Social Security debated a purported technical correc- ator from North Dakota. Reform Act. I know that because I tions bill for 3 hours—as we did on De- Mr. DORGAN. Mr. President, I re- helped write it. I was a member of the cember 7—then split almost down the quest to be able to use the 15 minutes Ways and Means Committee in the U.S. middle on a 49–48 vote that cut across that I am allotted under the former UC House. If anybody wants to go back to party lines. that was decided by the Senate. the record of the markup, you will find There is no foundation for the argu- The PRESIDING OFFICER. Without that I offered the amendment in 1983 ment that this is a simple perfecting objection, it is so ordered. during the markup that said let us not S3576 CONGRESSIONAL RECORD — SENATE April 18, 1996 use the Social Security revenues we With respect to Social Security, So- auctions. Fine. That is his privilege are going to begin to save to meet our cial Security is going to have problems and no one disrespects it. But we needs when the baby boomers retire. beginning in the year 2018. That is the should not cry foul when other mem- Let us not use them as other operating point at which the surplus discontinues bers talk about Social Security and revenues. Let us truly save them. So accumulating. From 2019 down to 2029 balancing the budget. let us create a firewall. Let us prevent or so we run out of surplus. The fact is The truth of the matter is that we people from misusing, or taking, the in order to accumulate that surplus, we are in a Catch-22. This Senator has pro- Social Security trust funds and using must set the surplus trust funds aside. duced balanced budgets. I had a AAA them for other purposes. In 1983 I of- That is what the Senator from South credit rating as the South Carolina’s fered that amendment. It was defeated Carolina and I have been trying to do Governor. I voted for a balanced budget in the Ways and Means Committee. for a long while. I encourage those who in 1968–69. Since that time, as chair- I have tried since repeatedly. The wonder about motives to go back to man of the Budget Committee, I have Senator from South Carolina has tried, 1983 and the Ways and Means records proposed freezes, Gramm-Rudman-Hol- and in some cases successfully. The and see who was making those motions lings, and, yes, tax increases to try and fact is we have a law that prevents the 13 years ago on this very issue, and balance the budget. So this is not a Social Security funds from being mis- then call them political today, if you casual political maneuver to get high used for other purposes, and the law is will. But you are wrong. ground in any political campaign. It is ignored. The Senator from South Carolina has done in an attempt to get us to keep My intention was to bring to the been on this floor many times and I our word—to not use Social Security floor on Monday an amendment that I have been on the Senate floor and the trust funds in calculating the deficit. offered that angered some people, an House floor many times in the last 13 We cannot keep it when the leadership, amendment that said, if we are going years on this subject, and I will con- in considering the constitutional to consider a constitutional amend- tinue to do so. It might be inconven- amendment to balance the budget, ment to balance the budget which the ient to have offered the sense-of-the- which this Senator has voted for al- majority leader said he will require us Senate resolution last Monday, but we ready three times—— to do under reconsideration, a proce- will vote on it at some point. I said The PRESIDING OFFICER. If the dure that will allow no amendments then I would agree to a 20-minute time Senator will suspend, let the Chair try and no debate—if we are going to do limit; it does not matter to me. I just to get order in the Senate. If those that—I said let us have the Senate vote want this Senate to go on record on Members who are having discussions, on a sense-of-the-Senate amendment to those issues. Maybe that is partisan in please, could retire to the cloakroom. create a firewall between the Social the minds of some. To me it is a very The Senator is entitled to be heard. Mr. HOLLINGS. I thank the distin- Security trust funds and other reve- important public policy. guished Chair. Mr. President, I yield the remaining nues because, if we do not do that, I voted for a balanced budget. I wish what will happen is $600 to $800 billion time to the Senator from South Caro- to vote for a balanced budget amend- of Social Security trust funds will be lina [Mr. HOLLINGS]. ment to the Constitution. But I will The PRESIDING OFFICER. The Sen- misused. That is not trivial, and is not not vote to repeal the firewall that we ator from South Carolina. partisan. It is policy. have in the law for the Social Security Mr. HOLLINGS. Mr. President, I I understand that for some it is a trust fund. Let us have really truth in thank my distinguished colleague from nuisance. For some it is inconvenient. budgeting. For some it is troublesome to have to North Dakota. We have been working I commend the distinguished Senator deal with this. in the vineyards together in trying to from North Dakota in bringing his So the result was people got in a end the practice of applying Social Se- amendment up in this particular fash- pique and decide to put the Senate into curity surpluses toward the deficit. Ev- ion. It is unfortunate that we had no a recess so one person or another can- eryone is interested in balancing the other option. We are not trying to not speak. It is not the way this place budget. But what happens in all of delay the immigration bill. I commend works. these budgets, both the Republican and the Senator from Wyoming and the We will vote on that sense-of-the- the administration budgets, is that Senator from Massachusetts on their Senate resolution. We did not on Mon- they use Social Security trust funds to leadership on immigration. I am ready day. But we will vote on it. We have obscure the size of the deficit. to vote for their bill. We are ready to the right to offer it, and we have the This minute, we owe $502 billion to agree to a time agreement. But we right to insist on a vote on it. Social Security. Over the next 6 years, want to vote on this issue to really fix The same will be true with minimum we will borrow another $600 billion into the conscience of the body that wage, and the same will be true with from that trust fund. So even if we suc- when we say it is a trust fund, we mean several other issues that we think are ceed in enacting these so-called bal- to protect it and not dip into those sur- important matters of policy. This is anced budget plans, by 2002 we will pluses. That is what the chairman of not about individuals on the Senate have destroyed the Social Security pro- the Budget Committee on the House floor. gram; we will owe Social Security over side said they did last evening. They The PRESIDING OFFICER. If the $1 trillion. No one is going to raise dipped once again into our children’s Senator will suspend for a moment, taxes some $1 trillion to make good on piggy bank. will those Members in the Senate who the Social Security trust fund. That piggy bank is there to protect are having discussions please retire to The time to stop that nonsense is retirement. Senator THURMOND and I, the Cloakroom, and members of staff here and now. In order to do so, 98 Sen- we are going to get ours. In fact, we are as well? ators in this Chamber, as the Senator getting ours now. But I can see some The Senator from North Dakota. from North Dakota stated, voted for young folks around here; when their Mr. DORGAN. Mr. President, how the Heinz-Hollings-Moynihan amend- time comes, they are never going to be much time do I have remaining? ment on October 18, 1990. President able to receive it. Why? Because we The PRESIDING OFFICER. The Sen- George Bush, on November 5, 1990, have got this nonsense about a unified ator has 10 minutes and 20 seconds. signed section 13301 of the Budget En- budget. Mr. DORGAN. Let me finish, and forcement Act into law. Here is the budget law. If you can then I will yield to the Senator from Republicans charge that offering the find the word unified in there, I’ll jump South Carolina under the 15 minutes. Dorgan amendment is delaying action off the Capitol dome. There is no such My only point is this: I respect any on the immigration bill. But what is thing as a unified budget in the budget Member who stands up and ascribes good for the goose is good for the gan- law, but the administration goes along motives to others, but if they are mo- der. On yesterday afternoon, in the with it; the Congress goes along with tives that, in my judgment, do not middle of the terrorism bill, the distin- it. They violate the law. Let us join comport with what we are trying to do, guished majority leader saw fit to with the distinguished Senator from then I think we have a right to say come to the floor to talk about bal- North Dakota and stop violating the that is not the case. ancing the budget through spectrum law. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3577 I yield back the remainder of my how to do that’’—and their solutions too long, remember for 17 years—my time. always have to do with raising the pay- dearest friend, Senator John Heinz, Several Senators addressed the roll tax, ladies and gentlemen, and proposed an amendment on—guess Chair. guess who pays the payroll tax? Not what? Social Security. What was it The PRESIDING OFFICER. The Sen- the senior citizens. that time? Listen to this one. I said to ator from Massachusetts. Now, if we are going to deal with this John Heinz, my old friend—and remem- Mr. KENNEDY. I am just going to issue, then I am going to begin to come ber, we put together a package that take one moment and then yield the to the floor each and every time we said that the COLA would always be floor. We have a measure that is before come to this issue of Social Security paid out, but if the inflation was ever 3 us, and I see the Senator from Ver- and balanced budgets concepts and percent or less that we would not in- mont, who has an amendment, who had begin to get one singular thing across. crease the COLA. If it was less than 3 spoken to us earlier today and is wait- Hear it. There is no Social Security percent we would not give a COLA on ing to move towards that amendment. trust fund, ladies and gentlemen. There Social Security.’’ We are going to, in just a few mo- is no Social Security trust fund. None. It was that year at 1.5 percent or ments, ask unanimous consent to final- And the reason there is none is be- something, or perhaps 2. And we came ize the list of amendments. We have cause, when Franklin Delano Roosevelt to the floor and Senator Heinz, who been able to work through many of and the Congress put this package to- really was spectacular—in fact—if he them. So we are expecting probably gether, they said that if there is any were here today we would not be in the some votes that will be continuing surplus in the Social Security system health care conundrum we are in. He along until we are able to hopefully get it will be invested in the securities of was that good. He could have led us out this concluded. We can do that in a pe- the United States Government, secured of that. riod of time, but I hope that our mem- by the full faith and credit of the Unit- I said, ‘‘John, you know it will pass. bership will not be coming to us at 7, ed States. And every shred of this sur- All you have to do is mention Social 7:15 asking for windows and other kinds plus—and it is big and it is going to get Security or a COLA and you know it of things, because we were able to real- a lot bigger—every shred of it is in- will pass—or if you mention veterans, ly move this and follow the admonition vested in the securities of the United you know it will pass.’’ We have all of both the majority and minority States Government in a series of IOU’s. been there. We are all bright people. leaders. So we are going to ask for a You know that and I know that. But, We know this. consent that we have received all the better yet, the trustees know that. And So, there it was. An impasse. And fi- amendments in just a few moments. So who is this group of people telling us nally he removed it from the immigra- if any of the Members are interested, about this? They are called the trust- tion bill, placed it on another one, and this is really the last call. ees of the Social Security system, so it is much like this one. We all know Mr. SIMPSON addressed the Chair. three of whom are in the President’s what this is. There is not a soul in this The PRESIDING OFFICER. The Sen- Cabinet: Robert Rubin, Donna Shalala, building, a soul in this city, a soul who ator from Wyoming. and Robert Reich; one Republican, one follows this, like BOB KERREY and JACK DANFORTH did, who does not know that f Democrat, and the Commissioner of Social Security. And they are the stew- there is no Social Security trust fund— BALANCED BUDGETS AND SOCIAL ards of Social Security. There are no zero—zip—nothing. To hear it contin- SECURITY ued to be bandied about is an extraor- other designated stewards of it. Mr. SIMPSON. Mr. President, I just In the trustees little booklet of their dinary adventure in fantasy. Mr. HOLLINGS. Will the distin- want to speak for a few moments on annual review which is about that guished Senator yield? this issue of Social Security and bal- thick, and I hope you will read it, it anced budgets. I have the greatest re- Mr. SIMPSON. I will yield for a ques- says that in the year 2029, without tion. spect for Senator Fritz HOLLINGS and doing something for Social Security, it Mr. HOLLINGS. With respect to Sen- my colleague Senator Kent CONRAD, will go broke. It will be out of business. ator KERREY and Senator Danforth’s who sits there, and his friend and mine But, more important, in the year 2012, recommendations, fine—I support their BYRON DORGAN. They are a very re- when the payments coming in will not particular report. It is not a question markable duo from North Dakota, and cover the payments going out, you are of fixing Social Security. It is a ques- they have been working hard on this going to start cashing in the bonds. tion of not using the surpluses to ob- issue a good long while, and so has my And then you begin to use up the inter- scure the size of the deficit and using old friend Senator HOLLINGS. est. And between the year 2012 and the them for Social Security. If we are going to debate this issue of year 2029, it is history. I am sure the Senator was with me, Social Security, we are going to have So, every time we hear this old saw, on October 18, 1990. And I am sure he to deal with reality. The reality has I want to be right here too and tell the supports that law. come to me and should come to every- American people, just as the trustees You and I act like there is some dif- one in this Chamber simply by study- would if they were here—I will speak ference. There is no difference in our ing the work of the entitlements com- for them—that there is no Social Secu- belief that changes will have to be mission, the Bipartisan Entitlements rity trust fund. It is a floating pile of made to protect the integrity of social Commission, where Senator BOB IOU’s. You know it and I know it. So, security. But the law says thou shalt KERREY and Senator JOHN DANFORTH of when we come here to this Chamber to not use the Social Security moneys to Missouri sat for a year and presented talk about cooperation, coordination, obscure the size of the deficit? That is to 32 Americans, including many of us subjugating our own obsessions or our the law, 13301. The chairman of the in this Chamber, what is going to hap- own agenda’s to the body work of this Budget Committee is here, he is totally pen to Social Security. then let us talk about that fact every familiar with it. Isn’t that correct? There is no way to duck it. There is time. Mr. SIMPSON. Mr. President, I do no way to finesse it. There is no way to I have been through this plenty of not think anybody would try to ob- demagog it. That is no way to go. Be- times in this Chamber. I do not keep scure anything—at least this Senator cause if you are going to talk about score of how many times I may have is not. The obfuscation and the obscur- something that is worth $360 billion come to the floor on any issue. But I ing is to tell the American people that and leave it ‘‘off the table’’ in a fashion can tell my colleagues I do know how there is a trust fund that we are using that no one in this body is supposed to many times some people have come to moneys from. There is not any trust touch it or say a word about Social Se- the floor on this singular issue—time fund there to be using. It is not there. curity while the senior citizens groups after time after time; and fully know- It is a series of IOU’s. So, when we say, beat your head in and my head in and ing that there is no trust fund. ‘‘Oh, you are doing a terrible thing. not allow us to even touch a system We were just involved in a bill, talk- You are hiding something or you are and keep telling us, and warning us, ing about a rather interesting issue using the money that should have been ‘‘Oh yes, it will need to be corrected’’ called illegal immigration reform. Sev- there for us,’’ that is simply not the and, ‘‘Oh yes, we have a way to tell you eral years ago—and I have done this case. S3578 CONGRESSIONAL RECORD — SENATE April 18, 1996 Let me just review just for the body told by those who wanted an affirma- amendment, if I may propose a unani- in 4 more minutes eight rather recent tive vote on the constitutional amend- mous consent request on behalf of Sen- votes on this issue. I can only find ment to balance the budget that the ator DOLE. eight in the last 30 minutes, since I Senator supported that, even though Let me yield and say, evidently, this knew that this would come up on the they had argued that it was not being has not been cleared fully on both floor. The amendments are not always used to balance the budget, they would sides, so we will return to Senator offered up by the same Senator. They stop using it to balance the budget by BROWN’s amendment. are offered by different people each the year 2008. Mr. KENNEDY addressed the Chair. time. It is kind of like we do with a How does one reconcile that if there The PRESIDING OFFICER. The Sen- ‘‘rolling hold.’’ You kind of fire the one is not a trust fund? If there is not a ator from Massachusetts. barrel and then you fire another barrel. trust fund, how can you stop using it in Mr. KENNEDY. Mr. President, we So here it all is, of recent vintage. the year 2008? want to try and accommodate the On January 26, 1995, Senator HARKIN Mr. SIMPSON. Mr. President, I say greatest number of Members. We have offered an amendment. Senator to my friend from North Dakota that several Senators who are here with KEMPTHORNE made a second-degree the travesty is that it is not being their amendments ready to address amendment on it. The Kempthorne used. It is a series of IOU’s. There is no them and ready to act on them. We be- amendment said that implementing Social Security trust fund. And the lieve that if we are able to do that, we legislation should not cut Social Secu- money is being invested. can afford, whoever wants to speak, as rity. We all agree with that. You can- You can say we will cut it back. You much time as they want to speak on not miss on that one. If you simply, cannot. It is in T-bills. Some people other kind of matters. But we are here each time, want to talk about the bal- here own T-bills. Banks own T-bills. to deal with this legislation. anced budget and add to it that we will There is no Social Security trust fund. We have been urging Senators to never ‘‘cut’’ Social Security, that is a I have never gone to my people and come over here and offer their amend- snapper in here—except for a few of us said we are stealing from the Social ments. They are here now, and we can who will cast that opposite vote and Security trust fund because I just either do this later—I plan to stay here know very well that it just does not fit. stepped up to the plate and said there until it is done, but the greater num- Then Senator REID tried to table is none. So, when you bring that up, bers of Members would like to have at that. That failed. Senator you are bringing up a fiction. least some finality to the legislation. I KEMPTHORNE’s amendment then passed. Mr. HOLLINGS. Mr. President, how believe we can do it. It is 6 o’clock now Then Senator HARKIN tried a perfecting would it be if we had IOU’s for the and we had the chance for general dis- amendment to add his language back, same time, I ask the Senator? cussion during the course of the day. saying that the balanced budget itself The PRESIDING OFFICER. The Sen- Many of our colleagues have come over should exempt Social Security. That ator from Wyoming has the floor. here to address these issues and to vote was tabled. Mr. HOLLINGS. How can it be in- on them, and they have been waiting as On February 10, 1995, Senator DOLE vested and become an IOU? If it is in- well. offered the amendment to ask the vested, it is presumably going to be I hope we will urge our colleagues Budget Committee to report instruc- paid back? That is our problem, it is who are not going to talk on these tions not affecting Social Security. being spent on the deficit. That is my matter—we know they can; people can That passed 87 to 10, like we all knew point. get up and address any other matters— it would. Then it was done. Mr. SIMPSON. Mr. President, not but out of consideration of other Mem- only the fiction of it, but since 1938, by Then Senator REID presented an bers, please try and see if we cannot amendment, February 14 of 1995, saying law, the trust fund buys T bills which focus on the matter that is at hand, Social Security is now counted in the are IOU’s that the Government must and that is the Kassebaum-Kennedy balanced budget amendment. And Sen- pay back. FDR did that, and that is bill, which is of enormous importance what it is. There is no mystery to it. It ator DOLE tabled that, 57 to 41. to many American families. is a series of IOU’s, and when those are On February 28, 1995 Senator FEIN- I see other Members here, and I am outstanding and then the revenue from STEIN offered a substitute for the bal- sure they will do what they have to do, anced budget amendment with the ex- Social Security will not cover—it is a but we are trying to conclude this and clusion of Social Security. That was pay-as-you-go, do not forget, Social Se- then to let others speak so that at tabled 56 to 39. curity is pay-as-you-go, and if it does least others will not be here tomorrow. On February 28, 1995, Senator GRA- not cover, you have to cash in the We are going to end up being here to- HAM put forward an amendment to IOU’s and you have to get more money morrow as sure as I am standing here eliminate ‘‘held by the public’’ from through the payroll tax, or reducing unless we are able to make progress. the debt limit, so as to get the bal- benefits or issuing some new kinds of That is fine with me, if that is what it anced budget to exclude Social Secu- securities. is. But with some cooperation of the rity. That was tabled 59 to 40. Mr. HATCH. Will the Senator yield Members, we have a very good chance Another Graham amendment was ta- for a unanimous consent request? of finishing this. Otherwise, Members Mr. SIMPSON. Yes. bled 57 to 43. ought to understand we are going to be This issue has been voted on time f here late tonight voting and end up and time and time again. I think it is HEALTH INSURANCE REFORM ACT starting the votes later this evening and tomorrow. time that it not be voted on again, es- The Senate continued with the con- We are just about to ask for the final pecially for this issue, on either illegal sideration of the bill. list so that we can agree with that. But immigration or health care. Find a new Mr. HATCH. Mr. President, I under- in the meantime, we have the Senators line of work. stand the pending business is the who are here who are prepared to move Several Senators addressed the chair. BROWN amendment. It is my under- ahead. Senator BROWN is here, and Sen- Mr. DORGAN. Will the Senator yield standing that he will make his argu- ator JEFFORDS was here just a few mo- for one brief question? I wonder if the ments and then withdraw the amendments ago to deal with an extremely Senator will yield for a brief question? ment; am I incorrect on that? The PRESIDING OFFICER. The Sen- Mr. BROWN. Mr. President, the Sen- important measure and has been here ator from Wyoming has the floor. ator is correct. now for an hour and a half trying to Mr. SIMPSON. I yield for a question. Mr. HATCH. I am correct. gain the floor. Mr. DORGAN. I appreciate that. I Mr. SIMPSON. I yield the floor. Mr. CHAFEE addressed the Chair. guess it is the Senator’s contention Mrs. KASSEBAUM addressed the The PRESIDING OFFICER. The Sen- that there is no Social Security trust Chair. ator from Rhode Island. fund. I just ask this question. The PRESIDING OFFICER. The Sen- AMENDMENT NO. 3678 We were told early on that the Social ator from Kansas. Mr. CHAFEE. Mr. President, I am Security trust fund was not being used Mrs. KASSEBAUM. Mr. President, going to address the amendment that for any other purpose. Then we were prior to returning to Senator BROWN’s is before us, the Brown amendment, April 18, 1996 CONGRESSIONAL RECORD — SENATE S3579 but I say to the managers of the bill, I brand-name companies themselves, obliged the United States to change its pat- join with them in their enthusiasm to neither intended nor expected. ent laws to conform with those of the rest of finish it up. I do not see why we do not The cost to consumers is enormous. the world. They had the effect of extending some American patents for up to 20 months. seek time agreements, in case we get The drugs that are covered by the off on another Social Security argu- windfall are widely prescribed, and are Mr. President, those are the opening ment, whatever it might be. But that is used for everyday ailments that affect lines of the editorial. The simple fact is this. We had people up to the managers. millions of Americans. Keeping the ge- Mr. President, I have a statement neric version off the shelf for up to 3 research drugs and put the investment into it and receive the full length of that I wish to make that deals with the years means that Americans—includ- their exclusivity that this Congress has subject Senator BROWN has been ad- ing and especially older Americans— supported and put into statute. The dressing, and Senator PRYOR, likewise, are paying far more than was ever in- GATT agreement gave a serendipitous and which I joined in the past. tended for their medications. extension to that. In other words, All I can say, Mr. President, is I just Not only are consumers paying for under the GATT agreement and the wish we would address this matter, this error, but so are State govern- conforming changes of law that this both in the committee, and I under- ments and the Federal Government—in Congress adopted, people who had in- stand Senator BROWN has been trying the form of higher reimbursements for vested in and relied on our laws got a to achieve that, but also on the floor of prescription drugs for the elderly, vet- longer period of patent protection than the Senate. We have had one vote. It erans, and low-income Americans. they have ever planned for. But the This is not right. We made a mistake. was a one-vote margin difference. Per- GATT agreement also had a provision, haps people’s minds have been changed We should fix it. In this case, the solu- an exception for that extended protec- since then. Nonetheless, I support the tion is obvious and easy: simply enact tion when someone had made a sub- efforts of Senators BROWN and PRYOR. the missing conforming amendment. stantial investment in reliance on our Congress and the administration That is exactly what Senator PRYOR, laws in providing competitive products. made a simple—but costly—error in Senator BROWN, and I—and many oth- In other words, what we propose in drafting the Uruguay Round Agree- ers—have been working to do. this amendment is nothing more than ments Act of 1994. That inadvertent Let me take a moment to put to rest absolutely the process that was con- error is costing consumers, State gov- a few red herrings. Our amendment templated and planned for under ernments, and the Federal Government would not affect our GATT commit- GATT. And, I might mention, Mr. millions of dollars, while providing an ments or our efforts to promote patent President, many countries have done unintended windfall to a handful of protection worldwide. Our amendment exactly the same thing. As a matter of drug companies. I don’t believe we would not upset the balance in U.S. fact, this country has done a similar should let that error stand. drug patent laws, nor impede research kind of thing with other products. What happened? The facts of the case and development of new drugs. If any What this amendment simply sug- are straightforward. Back in 1994, Con- of these misrepresentations were true, gests is that where we have given gress was drafting omnibus trade legis- we simply would not be sponsoring this someone an unexpected, unplanned ex- lation designed to bring the United amendment. It is that simple. tension in their patent protection, that States into conformity with the impor- It is time to correct this injustice— we make an exception for that exten- tant new global trade agreement an injustice to consumers in our Na- sion where someone else has made a known as the GATT. As part of our tion, an injustice to the Federal and substantial investment in producing commitment to fulfill our new GATT State governemnts that are paying and providing a competitive product— obligations, the United States pledged extra and needless sums into Medicaid in this case, a generic drug. to increase patent protection for future and Medicare and an injustice to the If we do not adopt this, we will have patents. In addition, the United States generic manfuactures who made the in- said to people who produce products in also pledged to boot protection for pat- vestment in reliance on the law as it reliance to our laws, ‘‘After you have ents already in existence—a key point was supposed to be. made the investment, after you have that goes to the heart of the issue be- It is time we fixed this unfairness. put the money into it, after you have fore us today. Mr. BROWN addressed the Chair. made under the terms of what will be Accordingly, the trade bill that Con- The PRESIDING OFFICER. The Sen- the statute a substantial investment gress wrote, boosted existing patent ator from Colorado. on reliance of our laws, we are going to terms by up to 3 years, giving current Mr. BROWN. Mr. President, it is my pull the rug out from under you and patentholders a valuable extension on intention to try and expedite the delib- change the rules retroactively.’’ their patents. To be fair to generic erations here tonight. In that regard, Mr. President, that is not right. That manufacturers who had been preparing my thought would be to make a state- is not honest. That is not fair. That is not a good way to do business. We have to go to market on the old patent expi- ment, hopefully, shedding some light talked about the horrible damage—and ration date, Congress fashioned a com- on this amendment. I know Senator it is enormous damage—done to con- promise: generic companies who had PRYOR has worked so hard in this area. sumers by this unjustified quirk of the made a substantial investment in pre- He wants to make a statement, and ratification document. paring for market would be allowed to then it will be my intention to withdraw the amendment. I withdraw it re- But I want to focus the Members’ at- proceed as planned, but would have to tention on what is unfair to business. I pay equitable remuneration—that is, a luctantly, because I think it needs to be considered and dealt with as soon as believe it is unfair to business to say, royalty—during the extended term. ‘‘Look, here are the laws. Here is how This carefully balanced compromise possible. But I am persuaded that we will not have some votes that we need long you have for patent protection. became law as part of the 1994 Uruguay And by the way, we’re going to change to adopt it if we insist on attaching it Round Agreements Act. the law retroactively, and even though However, in drafting this 653-page to this measure. Having said that, let me simply out- you made substantial investment in bill, Congress and the administration producing a competing product, we’re line the issue that is before us. It is made a small—but very costly—mis- not going to let you compete.’’ Now, well described in a New York Times take. A simple conforming amendment that is what has happened. to an FDA statute was omitted. Yet editorial of February 28. I will quote a If we do not pass this bill as it is in the impact was enormous: the omission portion of that, because I think it is committee or the amendment as we singlehandedly prevented the generic quite succinct and to the point: offer it on the floor, what you are drug industry from going to market Congress finds it hard to remedy the sim- going to do is not only impact consum- during the extended term. The result is plest mistakes when powerful corporate in- ers to the tune of billions of dollars, that a handful of brand-name drug terests are at stake. In 1974, when Congress approved a new trade pact with more than but you are going to say to businesses companies have received a staggering 100 other countries, it unintentionally hand- that have relied on the law, that it is $4.3 billion windfall, at the expense of ed pharmaceutical drug companies windfall tough luck, you should not have be- consumers, that Congress, United profits. More than a year later, Congress has lieved us. You should not have relied States trade officials, and even the yet to correct the error. The trade pact on what we did. S3580 CONGRESSIONAL RECORD — SENATE April 18, 1996 Why is it important to pass it on this laws. The result is that the transitional Washington, DC, March 27, 1996. bill or pass it quickly? I think that is clause now applies to every industry but Honorable HANK BROWN, a fair question. I must tell the Mem- drugs. That set off a huge lobbying and pub- Senate Judiciary Committee, U.S. Senate, Hart bers, I am disappointed I have not been lic relations war with the generic manufac- Senate Office Building, Washington, DC. turers enlisting the support of consumers’ DEAR SENATOR BROWN: We understand the able to persuade all the other people organizations and Glaxo Wellcome invoking Senate Judiciary Committee plans to mark- who support the concept that it is im- the sacred inviolability of an American pat- up legislation addressing and General Agree- portant to pass it on this measure. ent. ment of Tariff and Trade (GATT) patent It is important because the impact of Mickey Kantor, the president’s trade rep- pharmaceutical issue tomorrow. We urge you this, if it goes uncorrected, could be resentative, who managed the trade bill for to support legislation (S. 1277) sponsored by over $2 billion, according to the Wash- the administration, says that the omission Senators Chafee, Pryor, and Brown to cor- ington Post. It is important because was an error, pure and simple. But it has cre- rect an oversight in the GATT implementing legislation that will save consumers and tax- this costs consumers up to $5 million a ated a rich benefit for one company in particular. A small band of senators led by payers billions of dollars in prescription drug day while we delay. Mr. President, let costs. We urge you to oppose any alternative me repeat that because I am not sure David Pryor (D-Ark.) has been trying to right this by enacting the missing clause, measures that would maintain this costly people have focused on the impact of but so far it hasn’t got far. Glaxo Wellcome and unintended loophole under GATT. As you know, because of an oversight in delay. It costs up to $5 million a day to and the other defenders of drug patents are patent changes approved under the GATT consumers in this country if we do not winning. Other drugs are also involved, inci- treaty implementing legislation, the avail- dentally, although Zantac is by far the most act. Some estimates indicated it may ability of lower-priced generic versions of important in financial terms. have cost consumers already $700 mil- more than 25 widely-prescribed drugs must lion. Drug prices are a particularly sensitive be delayed for up to an additional three Mr. President, this is not anything area of health economics because Medicare years. As a result, seniors and other consum- other than fairness. This is not any- does not, in most cases, cover drugs. The ers will wait longer for access to less-costly thing other than saying the patent pro- money spent on Zantac is only a small frac- generic drugs. tection that was planned in the law tion of the $80 billion a year that Americans Every day Congress delays in correcting spend on all prescription drugs. Especially ought to be delivered as it was planned this oversight costs consumers $5 million for the elderly, the cost of drugs can be a ter- dollars in additional prescription drug costs. in the law. rifying burden. That makes it doubly dif- In fact, the delay has already cost consumers Mr. President, I will not prolong the ficult to understand why the Senate refuses an additional $500 million dollars. The big- argument. I know the distinguished to do anything about a windfall that, as far gest losers among U.S. consumers are senior Senator from Arkansas has worked on as the administration is concerned, is based citizens, as older Americans consume about this and has some remarks, but I ask on nothing more than an error of omission. one-third of the prescription drugs sold in unanimous consent to have printed in the United States. On fixed incomes and with the RECORD the editorial from the THE SENIORS COALITION, PROTECTING no pharmaceutical coverage under Medicare, THE FUTURE YOU HAVE EARNED, three out of four seniors cite prescription Washington Post, a letter from The drugs as their largest out-of-pocket expense. Seniors Coalition, a letter from the Na- Washington, DC, April 17, 1996. Hon. HANK BROWN, On behalf of our millions of members and tional Committee to Preserve Social U.S. Senate, supporters, the National Committee to Pre- Security and Medicare, a letter from Washington, DC. serve Social Security and Medicare urges you to support and report out of Committee the National Women’s Health Network, DEAR SENATOR BROWN: The Seniors Coali- the Chafee/Pryor/Brown generic drug legisla- a letter from the Citizen Action, a let- tion urges you to support legislation offered tion. ter from the Gray Panthers, a letter by Senator Brown in the Judiciary Commit- Sincerely, from the Generic Drug Equity Coali- tee to correct an egregious mistake made in MARTHA A. MCSTEEN, the implementation of the GATT treaty. tion, a letter from the Consumer Fed- President. eration of America, and a letter from This mistake has cost the consumers, and primarily the elderly, of this nation millions the Citizen Advocacy Center, all per- NATIONAL WOMEN’S HEALTH NETWORK, of dollars. This loophole has allowed a few taining to this subject and advocating Washington, DC, March 21, 1996. drug companies to take advantage of a situa- DEAR JUDICIARY COMMITTEE MEMBER: In the position of this amendment. I ask tion that was unintended and to line their unanimous consent that all of these this time of federal, state and local budget- pockets with unearned money from Amer- cutting, threats to Medicare and Medicaid, letters be printed in the RECORD. ican citizens. and continually rising medical costs, health There being no objection, the mate- I ask you to read the article ‘‘What you care savings are more important than ever rial was ordered to be printed in the don’t know about brand name drugs is cost- to the American public. Given the serious- RECORD, as follows: ing you millions’’ (pp. 4–5) in our latest edi- ness of skyrocketing health care costs, it is [From the Washington Post, Dec. 4, 1995] tion of The Senior Class which outlines the unconscionable that Congress has so far problem and then to vote to support the cor- THE ZANTAC WINDFALL failed to address an error that needlessly in- rection. Your support for this effort is criti- creases the cost of health care for millions of All for lack of a technical conforming cal to the financial well being of thousands Americans, and unnecessarily boosts costs to clause in a trade bill, full patent protection of senior citizens. the federal government, as well. for a drug called Zantac will run 19 months I submitted testimony to the Senate Judi- More than a year ago, Congress discovered beyond its original expiration date. Zantac, ciary Committee on this issue when the com- that the legislation implementing the GATT used to treat ulcers, is the world’s most mittee held hearings on this issue in Feb- Treaty contained an unintended loophole for widely prescribed drug, and its sales in this ruary. At that time I called for the Congress some pharmaceutical drug companies. An country run to more than $2 billion a year. to correct the mistake and reject the efforts error of omission granted the manufacturers The patent extension postpones the date at of brand name companies to thwart the cor- of brand-name drugs treatment unique in all which generic products can begin to compete rection. The so-called ‘‘compromise’’ that of American industry. with it and pull the price down. That pro- has been drafted by Glaxo and may be offered By failing to include generic drugs in its vides a great windfall to Zantac’s maker, by a member of the Judiciary Committee is rules concerning transition to new patent Glaxo Wellcome Inc. terms under the GATT Treaty, Congress has It’s a case study in legislation and high- nothing more than a thinly veiled effort to codify the mistake that was made. A careful done a disservice to women’s health, specifi- powered lobbying. When Congress enacted cally, and to consumers and taxpayers, gen- the big Uruguay Round trade bill a year ago, reading of the language will find that it does even more damage to the ability of consum- erally. While the mistake was unintentional, it changes the terms of American patents to the consequences are grave. Each day that a new worldwide standard. The effect was to ers, especially seniors, to find safe and affordable pharmaceutical products in the passes without Congressional action to cor- lengthen existing patents, usually by a year rect this error costs millions of dollars; the marketplace. or two. But Congress had heard from compa- total cost is expected to exceed $2 billion. nies that were counting on the expiration of Again, please support Senator Brown and The beneficiaries of the current situation competitors’ patents. It responded by writ- his effort to correct this mistake. Now is the are the handful of giant pharmaceutical cor- ing into the trade bill a transitional provi- time for the Congress to do something for porations that will enjoy windfall profits for sion. Any company that had already invested the American public. three additional years. Their glee at this unin facilities to manufacture a knock-off, it Sincerely, anticipated windfall is evidenced by the said, could pay a royalty to the patent-hold- THAIR PHILLIPS, fierceness with which the lobbyists for these er and go into production on the patent’s CEO. companies are fighting to preserve their pro- original expiration date. tected status. But Congress neglected to add a clause NATIONAL COMMITTEE TO PRESERVE The exemption of drug companies from the amending a crucial paragraph in the drug SOCIAL SECURITY AND MEDICARE, GATT transition rules was a mistake. It April 18, 1996 CONGRESSIONAL RECORD — SENATE S3581 would be intolerable to compound this mis- Chafee-Brown-Pryor amendment is intro- stead, this amendment provides for equal take by failing to correct it. Please support duced in the near future, I urge you and your treatment, and would compel brand-name the solution proposed by Senators BROWN, colleagues to do the right thing and correct drug manufacturers to live under the same CHAFEE and PRYOR. this Congressional oversight and save Amer- rules as every other American industry. Sincerely, ican taxpayers from a costly mistake. In the interest of consumers, taxpayers CYNTHIA PEARSON, Please support the Chafee-Brown-Pryor and fairness, we urge you to support the ef- Program Director. amendment and close the GATT loophole. forts Senators, BROWN, CHAFEE, and PRYOR Sincerely, have made to redress this costly error. CITIZEN ACTION, DIXIE D. HORNING, Sincerely, Washington, DC, March 26, 1996. Executive Director. MERN HORAN, DEAR JUDICIARY COMMITTEE MEMBER: On Legislative Representative, behalf of Citizen Action and our three mil- GENERIC DRUG EQUITY COALITION, Consumer Federation of America. lion members, I would like to ask your sup- Washington, DC, March 29, 1996. port for a proposal which will shortly be of- To: Members, United States Senate CITIZEN ADVOCACY CENTER, fered by Senators Brown, Chafee and Pryor. FR: Generic Drug Equity Coalition Elmhurst, IL, March 25, 1996. This proposal would undo a legislative error RE: No More Delays, Pass Chafee/Pryor/ DEAR JUDICIARY COMMITTEE MEMBER: An oversight in the legislation implementing which, if not corrected, will cost U.S. con- Brown sumers hundreds of millions of dollars in un- the GATT Treaty has granted the pharma- When the Senate adjourns today for the ceutical industry a privileged status at the necessary prescription drug costs. Spring recess, consumers and taxpayers will When Congress passed new patent terms expense of consumers and taxpayers. More have paid $580 million more for prescription under the GATT Treaty, it failed to include than a year after the implementing legisla- drugs than they should have because of a prescription drugs under its transition rules. tion was adopted, Congress has yet to cor- mistake Congress and the administration GATT extends patent terms of U.S. products rect this windfall benefit. Now, Senators made in December 1994, $580 million. Every- from 17 to 20 years. Because many manufac- Brown, Chafee, and Pryor have developed a day that passes costs consumers and tax- turers had already invested millions of dol- solution that is fair and reasonable and de- payers $5 million more. lars in competing products in expectation of serving of your support. By the time you return in two weeks, the GATT is premised on opening world mar- the 17-year limit, Congress adopted transi- cost to consumers and taxpayers will have kets to competition. Under our implement- tion rules to allow those companies to intro- reached $650 million. ing legislation, however, manufacturers of duce generic alternatives on the date that Yet, despite written commitments to generic drugs, alone among all industries in the 17-year patent would have expired. markup a bill to close the GATT loophole in the United States, are prohibited from bring- The omission of prescription drugs in the the Senate Judiciary Committee in March, ing products to market until the full twenty- transition rule means that makers of lower- nothing has happened. year patent term has expired for brand-name cost generic drugs will be unable to bring A few companies continue to reap unin- drugs. This anticompetitive windfall is esti- their products to market until the full 20- tended windfall profits at the expense of mated to be worth two billion dollars in prof- year term of patent protection has expired. American consumers, taxpayers and generic its. Health care consumers are thus forced to This loophole will allow a few large pharma- drug manufacturers. pay higher costs, as will taxpayers, who fund ceutical companies to reap more than $2 bil- While you are away observing the Easter drug purchases through a number of govern- lion in windfall profits. Because lower-cost and Passover Holidays be sure to think ment programs. The City of Elmhurst has a generics will be kept off the market, con- about Americans like 69-year old Eleanor high percentage of Senior Citizens, a group sumers will be forced to pay higher prices for Black and her 89-year old mother Sally who that is disproportionately harmed by high more than a dozen drugs, including big-sell- spend $339 a month, one quarter of their health care costs, and the adverse effects of ers Zantac and Capoten. the as yet uncorrected legislation. Without a correction, taxpayer-funded fed- monthly income, for Zantac because of the GATT loophole. Congress did not intend to bestow this eral and state health programs, as well as in- windfall on drug companies when it adopted dividual purchasers of prescription drugs, The Generic Drug Equity Coalition urges you to support the Chafee/Pryor/Brown pro- the transitional rules for GATT. We urge will be forced to pay higher than necessary you, in the interest of consumers, seniors, costs. The Department of Veterans Affairs posal and close the GATT loophole. The Judiciary Committee leadership has and taxpayers, to correct this oversight and estimates that it alone will spend $211 mil- to not be lulled into inaction by the multi- lion in additional costs over the next three missed its own, self-imposed deadline. It is time for a vote on the Senate floor. million dollar lobbying blitz of the compa- years. nies enjoying this windfall daily. The Judiciary Committee has an oppor- Senators Brown, Chafee and Pryor have CONSUMER FEDERATION OF AMERICA, tunity to correct a provision that will have proposed a simple solution that would pro- Washington, DC, March 27, 1996. grave consequences for consumers. Again, tect the balance of interest between generic DEAR SENATE JUDICIARY COMMITTEE MEM- Citizen Action urges that you act now to re- and brand-name manufacturers envisioned in BER: The Senate Judiciary Committee plans move this unique loophole which rewards the Hatch-Waxman Act of 1984. It’s time to this week to examine the loophole in the certain large pharmaceutical companies at support their proposal. General Agreement on Tariffs and Trade the expense of taxpayers and consumers. Very truly yours, (GATT) which exempts the pharmaceutical Sincerely, THERESA AMATO, industry from patent transition terms. We CATHY L. HURWIT, Executive Director, urge you at this time to support the efforts Legislative Director. Citizen Advocacy Center. of Senators BROWN, CHAFEE, and PRYOR to redress this unintended and potentially cost- Mr. PRYOR addressed the Chair. GRAY PANTHERS PROJECT FUND, The PRESIDING OFFICER. The Sen- AGE AND YOUTH IN ACTION, ly, effect of the GATT Treaty. Washington, DC, February 29, 1996. As you know, an error of omission in the ator from Arkansas. Hon. HANK BROWN, legislative language implementing the GATT Mr. PRYOR. Mr. President, my U.S. Senate, Senate Hart Office Building, Treaty has exempted the pharmaceutical in- apologies to the Senator from Colo- Washington, DC. dustry from the patent transition terms. As rado. Has the Senator from Colorado DEAR SENATOR BROWN: Attached please a result, the pharmaceutical drug industry— finished his statement? find copies of Tuesday’s ABC World News To- alone among all industries—enjoys a 20-year Mr. BROWN. Yes. night news story focusing on the negative patent term, and generic manufacturers are Mr. PRYOR. Mr. President, I will impact that the GATT loophole will have on unable to market long-planned products. take but a few moments of the Senate’s American consumers like Eleanor Black and The unintended effects of the patent exten- time this evening. We need to move on. sion include diminished market competition, her mother Sally. In addition, attached are The distinguished managers have re- copies of the testimony submitted to the Ju- an undeserved windfall to pre-GATT patent diciary Committee from Ms. Black and my- holders, and further inflated costs to mil- quested that we move to final resolu- self, as well as Wednesday’s New York Times lions of Americans. The Congressional Budg- tion of this very important measure. editorial on the issue. et Office (CBO) has estimated that this sim- But I would like to take, Mr. Presi- With the Senate Judiciary Committee ple mistake will cost consumers and tax- dent, in opening, a few moments to dis- hearings on GATT now behind us, Senators payers as much as $2 billion as drug compa- cuss our particular concerns over this Chafee, Brown, and Pryor have vowed to in- nies reap windfall profits in the absence of uncorrected error in our laws which troduce legislation within the next few competition. This windfall was not intended has led to unnecessarily high drug weeks that will correct this loophole and by Congress, nor envisioned in the GATT prices. treaty itself. bring relief to millions of consumers like the I would like to quote from my good Blacks who rely on the savings that generic Senators, BROWN, CHAFEE, and PRYOR have pharmaceuticals offer. proposed closing the loophole, thereby pro- colleague who is departing the Senate In December, an effort to bring the Chafee- tecting consumers’ health and taxpayers’ and is a great friend, Senator PAUL Brown-Pryor amendment to the Senate floor wallets. This solution would not convey spe- SIMON of Illinois. Senator SIMON re- was narrowly defeated by one vote. When the cial status on the generic drug industry; in- cently spoke on the issue of correcting S3582 CONGRESSIONAL RECORD — SENATE April 18, 1996 this problem in the GATT treaty. I Mr. President, I ask unanimous con- Mr. PRYOR. Mr. President, finally, quote from Senator SIMON when he sent that a copy of that Des Moines let me say we all know what this issue said, ‘‘This is a classic example of spe- Register editorial be printed in the is about. We have debated this issue to cial interests versus the public inter- RECORD. some extent on the floor of the Senate est.’’ There being no objection, the edi- and to a great extent in the Judiciary Mr. President, that is what this de- torial was ordered to be printed in the Committee. We heard our U.S. Trade bate, I am afraid, has boiled down to. I RECORD, as follows: Representative, Ambassador Kantor know my friend from Colorado, Sen- [From the Des Moines Register, Nov. 27, 1995] conclusively explain the situation, and ator BROWN, in his eloquent statement A COSTLY OVERSIGHT I quote: has placed into the RECORD a recent FINE PRINT IN GATT LAW COULD COST ZANTAC The provision was written neutrally be- editorial of December 4, 1995 from the USERS MILLIONS cause it was intended to apply to all types of Washington Post. I will read a para- The nation’s prescription drug makers are patentable subject matter, including phar- graph from that editorial: at war again, with a $1 billion-plus purse maceutical products. Conforming amend- All for lack of a technical conforming going to the winner. If the brand-name drug ments should have been made to the Federal clause in a trade bill, full patent protection manufacturers win, the losers will include Food, Drug and Cosmetic Act and section 271 for a drug called Zantac will run 19 months the millions of Americans who suffer from of the U.S. Patent Act, but were inadvert- beyond its original expiration date. Zantac, ulcers or heartburn, and take the drug ently overlooked. used to treat ulcers, is the world’s most Zantac regularly to combat the problem. It’s One other quote from Ambassador widely prescribed drug, and its sales in this going to cost each of them about $1,600. Kantor: Zantac is made by GlaxoWellcome, the big- country run to more than $2 billion a year. We intended to apply this grandfather pro- I continue quoting from the Washing- gest in the business. Here’s what started the current war: vision to the pharmaceutical area. S. 1277 ton Post editorial: When a new prescription drug hits the would result in a level of protection that is The patent extension postpones the date at market, generic drug manufacturers await consistent with our original intent. which generic products can begin to compete the patent expiration so they can enter the Mr. President, let me say, Senator with it and pull the price down. That pro- market with the same drug. They offer it for BROWN, Senator CHAFEE and myself vides a great windfall to Zantac’s maker, sale without the brand name, usually at a have tried to proceed in good faith. Glaxo Wellcome, Inc. fraction of the brand-name price. There are Members on each side of the That is the beginning paragraph, Mr. The new international GATT treaty signed aisle that have stated their concern by the United States and 122 other countries President, of the Washington Post edi- about, and in some cases their objec- torial. To conclude from that editorial, sets the life of a patent at 20 years from the date of application. Former U.S. law pro- tion to, certain language that we had let me read: vided patent protection for pharmaceuticals in this legislation. We have attempted That makes it doubly difficult to under- for 17 years from the date of approval. Be- to meet with them. We have attempted stand why the Senate refuses to do anything cause the difference could have a significant to compromise. We have certainly gone about a windfall that, as far as the adminis- impact on the number of years a firm could to the negotiating table and attempted tration is concerned, is based on nothing market its patented drug without competi- more than an error of omission. to bargain in good faith and see what tion. Congress made special provisions for their concerns are. Well, once again, this issue is with drugs under patent at the time GATT was Truly, Mr. President, I believe that us. We failed by one vote back on De- approved last summer. we now have come together and crafted cember 7 to rectify this mistake. Since But when the legal beagles got done read- an amendment that is acceptable to all that time, a few companies like Glaxo ing all the fine print, it turned out that Zantac was granted a 19-month extension of those concerned with doing what is Wellcome have earned more than $600 its patent life—and it is such a hugely popu- right for consumers, businesses which million in extra revenues because of a lar drug that that translates into a multi- have relied upon the law in good faith congressional error. It also means that million-dollar windfall. and for our compliance with a very im- the Veterans Administration, the Med- Generic drug makers call the windfall a portant treaty. The amendment rep- icaid programs, the consumers of congressional oversight, and estimate the resents the simplest and best means for America, and especially the elderly of difference is worth $2.2 billion to Glaxo, be- us to correct the egregious flaw that America are having to pay double for cause the generics can’t enter the market for 19 more months. Glaxo counters that Con- persists today because of unconscion- Zantac than what they would be pay- gress made no mistake, that the extension able delays and the efforts of special ing had we allowed a generic to come was part of the compromise with generics. It interests. into the marketplace and compete. won’t wash. Nothing in the GATT treaty was Mr. President, I want to say in con- This is not fair, Mr. President. We intended to further enrich the happy handful clusion that I have thoroughly enjoyed know that this is not fair. The Judici- of brand-name drug makers who hold lucra- working with Senator BROWN of Colo- ary Committee this morning had tive patents—or to personalize the users of rado and Senator CHAFEE of Rhode Is- scheduled a markup, one which has al- the drugs. land, my colleagues on the other side ready been delayed from last month. A month’s supply of Zantac ordinarily sells for around $115; the generic price—meaning of the aisle. I hope we can bring this They continue to promise that they are the same drug without the Zantac label— matter to a resolution in the very near going to mark up S. 1277, the measure would be around $35, the generic makers con- future. offered by Senator BROWN and Senator tend. Unless Congress changes the wording of The PRESIDING OFFICER (Mr. GOR- CHAFEE and myself to correct this mis- the law regarding transition to GATT provi- TON). The Senator from Colorado. take in the GATT treaty. sions, Zantac users will pay the difference But, once again, this morning an for 19 months longer. Mr. BROWN. Mr. President, the vote unnamed Senator objected to the Sen- Some generic drug manufacturers had al- on this measure was close, as has been ate Judiciary Committee marking up ready spent a bundle preparing to enter the noted. Since that time, I believe we this measure, and, once again, it means market before the GATT treaty took effect. have persuaded others to join us in ad- They lose. So do taxpayers, who pay for Med- vocating this amendment. The amend- more and more windfall profits for icaid prescriptions. The Generic Drug Equity undeserving companies at the expense ment has been compromised to the Coalition estimates that the higher costs of point that specifically we have spelled of consumers. These delays are com- Zantac and some other drugs affected by the out in the compromise version that is pletely unacceptable and unwarranted. mistake (such as Capoten, for high blood The American public simply cannot pressure) will cost Iowa Medicaid $3.5 mil- before the Senate right now a very abide further delays on behalf of spe- lion. Further, say the generic drug makers, clear, bright-line test of what substan- cial interests. it will tack another $1.2 million onto the tial investment is. It is easy and clear What is at stake? Back on November cost of health-insurance premiums for Iowa to work with. I think we have ad- state employees. dressed the problems. I am confident 27, 1995, an editorial in the Des Moines Glaxo’s political action committee has Register stated that: we have the votes. doubled its contributions to Congress in re- However, because of the urgency of A month’s supply of Zantac ordinarily sells cent months. Glaxo wants the mistake to for around $115; the generic price—meaning stay in the law. Generic drug manufacturers the particular underlying measure that the same drug without the Zantac label— want it out. is here, some Members whose votes we would be around $35, the generic makers con- So should ulcer sufferers. So should tax- need and count on are unable to sup- tend. payers. So should Congress. port this amendment because they fear April 18, 1996 CONGRESSIONAL RECORD — SENATE S3583 it would bring controversy to the bill. Bennett relevant; Burns, telemedicine; plication by an employee health benefit plan It is, therefore, necessary for me to re- Boxer, ban HMO gag rules; Conrad, or a health plan issuer offering a group luctantly withdraw this measure. nurse practitioner, nurse anesthetists, health plan of any limits, exclusions, or I must mention, Mr. President, it advance nurse practitioner; Feinstein, other forms of cost containment mechanisms with respect to coverage under the plan does seem to me this is the appropriate nonprofit insurance; Graham-Baucus, other than the aggregate limit permitted kind of thing that ought to be consid- Medicare fraud; Harkin, fraud and under paragraph (1). ered on a prompt basis. Literally, to abuse; Harkin, fraud and abuse; Ken- (4) DISCLOSURE.—Any limits, exclusions, or fail to act costs consumers $5 million nedy, relevant; Pryor relevant; other cost containment mechanisms per- or more a day, and literally if we fail Wellstone, two domestic violence; mitted under paragraph (3) shall be disclosed to act very promptly, the issue be- Simon is a sense-of-the-Senate resolu- as provided for in section 105(c). comes moot because the time simply tion; Dorgan, organ donations; (5) APPLICATION OF SUBSECTION.—This sub- runs out. I believe in fairness to com- section shall not apply to a health mainte- Lieberman, MM data banks; Kennedy, nance organization that meets the require- panies that have reinvested, and, in nursing care; Daschle, relevant; Boxer, ments of title XIV of the Public Health Serv- fairness to consumers, we should and biomed devices. ice Act. must act quickly. Mr. KENNEDY. Would the Senator (6) EFFECTIVE DATE.—This paragraph shall I simply want to serve notice that we add Wellstone, relevant, sense of the become effective with respect to health plans will be looking for other vehicles to Senate. on the date that is 2 years after the date of offer on this floor in a rather prompt The PRESIDING OFFICER. Is there enactment of this Act. fashion. objection to the unanimous consent re- At the end of section 105, add the following With that, I reluctantly withdraw quest? new subsection: (c) DISCLOSURE OF LIMITS AND EXCLU- the amendment. Without objection, it is so ordered. SIONS.—An employee health benefit plan or a The PRESIDING OFFICER. The Sen- Mrs. KASSEBAUM. Mr. President, I health plan issuer offering a group health ator has the right to withdraw the believe Senator JEFFORDS has been plan shall disclose, as part of its solicitation amendment. waiting, and I believe he is next to be and sales materials and in a form and man- So the amendment (No. 3678) is with- recognized. ner that is conspicuous and understandable drawn. Mr. JEFFORDS. Mr. President, I to a reasonable individual, any limits, exclu- Mrs. KASSEBAUM. Mr. President, I yield to the Senator from Arkansas. sions, or cost containment mechanisms with very much appreciate the sponsors of Mr. PRYOR. Mr. President, if we respect to coverage provided under the plan. the amendment withdrawing it. Sen- could ask a question, Mr. President, Section 3711 of title 31, United States Code, is amended by adding at the end the follow- ator BROWN and Senator PRYOR are while the two distinguished managers ing new subsections: very persuasive in their arguments, as are on the floor. It is 6:15; I did not re- ‘‘(g)(1) If a nontax debt or claim owed to Senator CHAFEE was as well. I am sym- alize there were quite as many amend- the United States has been delinquent for a pathetic to the purpose of the amendments. period of 180 days— ment. Mrs. KASSEBAUM. Neither did we. ‘‘(A) the head of the executive, judicial, or As was noted by the sponsors, it is Mr. PRYOR. Are we planning to go legislative agency that administers the pro- controversial. For that reason, we on into the evening? gram that gave rise to the debt or claim would have to oppose it on the health Mrs. KASSEBAUM. Yes, Mr. Presi- shall transfer the debt or claim to the Sec- retary of the Treasury; and insurance reform bill. I appreciate the dent, I say to the Senator from Arkan- sas, I think it is the hope not only of ‘‘(B) upon such transfer the Secretary of thoughtfulness in their withdrawal. the Treasury shall take appropriate action the managers but also of the minority UNANIMOUS-CONSENT AGREEMENT to collect or terminate collection actions on Mrs. KASSEBAUM. Mr. President, I leader and the majority leader that we the debt or claim. put forward on behalf of the majority finish tonight. ‘‘(2) Paragraph (1) shall not apply— leader a unanimous-consent agree- Mr. PRYOR. Good night, Mr. Presi- ‘‘(A) to any debt or claim that— dent, thank you. ‘‘(i) is in litigation or forelosure; ment. ‘‘(ii) will be disposed of under an asset I ask unanimous consent during the AMENDMENT NO. 3679 (Purpose: To establish a minimum amount sales program within 1 year after the date remainder of the Senate’s consider- the debt or claim is first delinquent, or a ation of S. 1028, the following amend- that may be applied as an aggregate lifetime limit with respect to coverage under greater period of time if a delay would be in ments be the only first-degree amend- an employee health benefit plan or a group the best interests of the United States, as de- ments in order, that they may be sub- health plan) termined by the Secretary of the Treasury; ‘‘(iii) has been referred to a private collec- ject to relevant second-degree amend- Mr. JEFFORDS. Mr. President, I ments, and following the disposition of tion contractor for collection for a period of have an amendment at the desk. time determined by the Secretary of the the listed amendments and the com- The PRESIDING OFFICER. The Treasury; mittee substitute, the bill be advanced clerk will report. ‘‘(iv) has been referred by, or with the con- to third reading, and the Senate then The legislative clerk read as follows: sent of, the Secretary of the Treasury to a proceed to the House companion bill, The Senator from Vermont [Mr. JEFFORDS] debt collection center for a period of time that all after the enacting bill be PROPOSES AN AMENDMENT NUMBERED 3679. determined by the Secretary of the Treas- stricken, the text of the Senate bill be ury; or Mr. JEFFORDS. Mr. President, I ask ‘‘(v) will be collected under internal offset, inserted, the bill be advanced to third unanimous consent reading of the reading and the Senate proceed to vote if such offset is sufficient to collect the amendment be dispensed with. claim within 3 years after the date the debt on passage of H.R. 3103, as amended, The PRESIDING OFFICER. Without or claim is first delinquent; and without any intervening action or de- objection, it is so ordered. ‘‘(B) to any other specific class of debt or bate. At the end of section 103, add the following claim, as determined by the Secretary of the The list that I have of the amend- new subsection: Treasury at the request of the head of an ex- ments would be: Nickles, relevant; Jef- (g) LIMITATION ON LIFETIME AGGREGATE ecutive, judicial, or legislative agency or fords, lifetime caps; Thomas, rural LIMITS.— otherwise. health; McCain, biological medical de- (1) IN GENERAL.—Except as provided in ‘‘(3) For purposes of this section, the Sec- retary of the Treasury may designate, and vices; Gramm, relevant; Coats, medical paragraph (2), an employee health benefit plan or a health plan issuer offering a group withdraw such designation of debt collection volunteer liability coverage; Domenici, health plan may not impose an aggregate centers operated by other Federal agencies. mental health; Specter, public health; dollar lifetime limit of less than $10,000,000 The Secretary of the Treasury shall des- pecter, public health; Specter, public (such amount to be adjusted for inflation in ignate such centers on the basis of their per- health; Gregg, choice care; Helms, fiscal years subsequent to the fiscal year in formance in collecting delinquent claims study of access by HHS; Senator BROWN which this subsection becomes effective) owed to the Government. has withdrawn his amendment; McCon- with respect to coverage under the plan. ‘‘(4) At the discretion of the Secretary of nell, medical malpractice; Bond, ad- (2) SMALL EMPLOYERS.—Paragraph (1) shall the Treasury, referral of a nontax claim may not apply to a group health plan offered to or be made to— ministration simplification; Pressler, maintained for employees of a single em- ‘‘(A) any executive department or agency CRNAS; D’Amato, fair tax treatment; ployer that employs 25 or fewer employees. operating a debt collection center for servic- Kassebaum, relevant; Dole, relevant; (3) RULE OF CONSTRUCTION.—Paragraph (1) ing, collection, compromise, or suspension or Roth, relevant; Simpson, commission; shall not be construed as prohibiting the ap- termination of collection action; S3584 CONGRESSIONAL RECORD — SENATE April 18, 1996 ‘‘(B) a contractor operating under a con- ‘‘(h)(1) The head of an executive, judicial, ance company has the right to change tract for servicing or collection action; or or legislative agency acting under subsection its benefits, or it can say, ‘‘OK, we will ‘‘(C) the Department of Justice for litiga- (a)(1), (2), or (3) of this section to collect a lower the lifetime cap. So when we tion. claim, compromise a claim, or terminate col- take you on, as soon as we pay what- ‘‘(5) nontax claims referred or transferred lection action on a claim may obtain a under this section shall be serviced, col- consumer report (as that term is defined in ever level of funds we reduce the limit lected, or compromised, or collection action section 603 of the Fair Credit Reporting Act to, you are gone, finished, you have no thereon suspended or terminated, in accord- (15 U.S.C. 1681a)) or comparable credit infor- more coverage.’’ ance with otherwise applicable statutory re- mation on any person who is liable for the Well, this amendment would rectify quirements and authorities. Executive de- claim. that and say we have to put—as a na- partments and agencies operating debt col- ‘‘(2) The obtaining of a consumer report tionwide standard, with the exception, lection centers may enter into agreements under this subsection is deemed to be a cir- we admit it could cause some problems with the Secretary of the Treasury to carry cumstance or purpose authorized or listed with small businesses, so we exempt 25 out the purposes of this subsection. The Sec- under section 604 of the Fair Credit Report- and under. We say you have to have $10 retary of the Treasury shall— ing Act (15 U.S.C. 1681b).’’. million of coverage. Why the $10 mil- ‘‘(A) maintain competition in carrying out Mr. JEFFORDS. Mr. President, I lion? The $10 million lifetime cap is be- this subsection; know that we have had a difficult day cause the standard for the industry for ‘‘(B) maximize collections of delinquent today. We are having a difficult time many years was a million dollars. But debts by placing delinquent debts quickly; trying to face the facts of life that the ‘‘(C) maintain a schedule of contractors that was 20 years ago. That million bill we are amending is a very impor- and debt collection centers eligible for refer- dollars is worth about $100,000 now. So ral or claims; and tant one, one which I have been an we say, let us go back to the standard ‘‘(D) refer delinquent debts to the person original cosponsor and one which part of 20 years ago and put on that cap. most appropriate to collect the type or of the bill is mine. It is something that I want to point out that when we do amount of claim involved. I worked very hard on. I believe it is an this, we are obviously going to cause ‘‘(6) Any agency operating a debt collec- excellent job. tion center to which nontax claims are re- some costs. I will explain that later. However, I also believe that it has a But let us take a look at who we are ferred or transferred under this subsection very serious flaw in it. Thus, at the may charge a fee sufficient to cover the full talking about when we are talking cost of implementing this subsection. The time the committee was meeting—and about those covered under this provi- agency transferring or referring the nontax I want to point out that we have al- sion. We are talking about those that claim shall be charged the fee, and the agen- ready made an exception today—the are working for businesses, as I say, cy charging the fee shall collect such fee by Finance Committee came and said, that get sick. All of a sudden they have retaining the amount of the fee from ‘‘Hey, we have a bunch of amend- some pretty big bills. Remember, some amounts collected pursuant to this sub- ments.’’ Most of them have been ac- of the lifetime caps out there on these section. Agencies may agree to pay through cepted. So we have already made sev- insurance plans are $50,000. That is one a different method, or to fund an activity eral exceptions to the nonamendment from another account or from revenue re- day in a hospital sometimes. So you go ceived from the procedure described under rule. I want to remind people of that. in there sick, and all of a sudden you section 3720C of this title. Amounts charged Now, I submitted this amendment, have no coverage. We are trying to cor- under this subsection concerning delinquent which I have before this body, at the rect that. claims may be considered as costs pursuant committee. I am a member of the com- Now, let me point out to you, again, to section 3717(e) of this title. mittee, ranking Republican on the what we are talking about from a na- ‘‘(7) Notwithstanding any other law con- committee. At that time it was said, tional policy perspective. What hap- cerning the depositing and collection of Fed- ‘‘Hey, we want to get out of here a pens now to that sick person? That per- eral payments, including section 3302(b) of unanimous bill. We may have prob- this title, agencies collecting fees may re- son is sick. They have been allowed to tain the fees from amounts collected. Any lems.’’ So I said, ‘‘OK, I will wait until be covered and then chopped off be- fee charged pursuant to this subsection shall the floor.’’ So I come to the floor to cause they have reached the lifetime be deposited into an account to be deter- offer an amendment, which I think limit of, say, $50,000. What happens? mined by the executive department or agen- about everybody agrees ought to be on Under the law right now, in order for cy operating the debt collection center it, and they said, ‘‘No. No amend- them to qualify for Medicaid, they can- charging the fee (in this subsection referred ments—except for the Finance Com- not have resources beyond a certain to in this section as the ‘Account’). Amounts mittee amendments.’’ level. So what we are talking about— deposited in the Account shall be available I understand that the ranking Repub- and I will give some examples in a until expended to cover costs associated with lican and the chairman of the commit- the implementation and operation of Gov- minute—is middle income people, or ernmentwide debt collection activities. Costs tee are bound by their commitment to even higher income people, who sud- properly chargeable to the Account include— no amendments, but nobody else is. No- denly are placed in a position where ‘‘(A) the costs of computer hardware and body else is in this body. So I hope the only way they can get care for software, word processing and telecommuni- Members would say he deserves to be their loved one is to get rid of all of cations equipment, and other equipment, heard. He has told me I could raise this their assets and then they will qualify supplies, and furniture; amendment on the floor, and here it is. for Medicaid. So the household has to ‘‘(B) personnel training and travel costs; Now we will talk about what the go through that—getting rid of its as- ‘‘(C) other personnel and administrative amendment is and why we are here. costs; sets—and then they qualify for Medic- ‘‘(D) the costs of any contract for identi- The bill is one which provides, if a per- aid. Should our policy in this Nation do fication, billing, or collection services; and son is working for a business and that? I say no, and I am sure you will, ‘‘(E) reasonable costs incurred by the Sec- changing jobs, or whatever else, has a too. This is not good policy. retary of the Treasury, including services health problem, that they are guaran- Let me talk a little about some of and utilities provided by the Secretary, and teed an issuance of a policy or a con- the people involved. I think all of you administration of the Account. tinuance of a policy, notwithstanding have probably heard the ads of Chris- ‘‘(8) Not later than January 1, of each year, the fact that they are sick. That is topher Reeve, or watched them on tele- there shall be deposited into the Treasury as miscellaneous receipts an amount equal to very important. This is an important vision, or read the editorials in the the amount of unobligated balances remain- breakthrough. That is why I supported newspapers and the stories that have ing in the Account at the close of business the bill. covered this. If you want an example as on September 30 of the preceding year, minus However, what we were not aware of to whether or not it could happen to any part of such balance that the executive at the time and I brought to the com- you, here is ‘‘Superman,’’ who was in- department or agency operating the debt col- mittee’s attention, but perhaps there volved in a very serious accident. He lection center determines is necessary to was too little time to consider it, is the was thrown off his horse and he be- cover or defray the costs under this sub- fact that there is no requirement now comes a C–2, which is a broken neck. section for the fiscal year in which the de- He has lost the functions below the posit is made. under the Federal law for any kind of a ‘‘(9) To carry out the purposes of this sub- certain level of cap. neck level, without some assistance. section, the Secretary of the Treasury may Now, what could happen to us is, OK, He has a cap of $1.2 million, and it is prescribe such rules, regulations, and proce- we require the insurance company to costing him $400,000 a year. In 3 years, dures as the Secretary considers necessary. take a sick person, but then the insur- he will be past that cap. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3585 Let us take Jim Brady, who is an- people like this all over the Nation. cost is small to the employer and to other one—not an example of the life- Barbara has a 12-year-old son who was the employee with the insurance pol- time cap, because he is on worker’s in a car accident 3 years ago. He has a icy. But because of the huge number compensation, but he had a head injury very similar condition to Christopher for which we spread it, it makes it rea- caused by a bullet when he was with Reeve. Since the accident, medical ex- sonable for a family to afford. President Reagan. He would be far be- penses have ranged from $20,000 to Let me remind all of my colleagues yond a million-dollar cap, to say noth- $50,000 annually. Her policy through that we all have no lifetime cap. None ing of a $50,000 cap at this time. her employer does not have a cap, and of the Federal employees have any- Let me talk about some of the people she is wary because if she loses her job, thing to worry about. We are all cov- that do not have the resources of a as it is under this law now, and she ered, whatever the costs are. In addi- Christopher Reeve, or the protection of tries to go somewhere, she will not tion to that, as this chart shows, we the law with respect to worker’s comp, have the cap, or it may be only $50,000. are one of the 20 percent in this coun- like Jim Brady. Let me go through There is no protection for her. try that have no limits whatsoever. some of these so that you understand These are the kinds of real-life situa- There are those that have more than $1 better what kind of people we are talk- tions. Is it appropriate for us to say million, about 6 percent. The biggest ing about. that the way these people should get group is that one that has been carry- This story is about Donelle and Kyle their continuous care is to get rid of all ing the $1 million forward for the last Meniketti, from the Washington Post. their assets and live in poverty for the 20 years as long they have been in busi- For 4 years, Donelle Meniketti waged a rest of their lives, as long as their child ness. That is 46 percent. So already we tremendous fight to save her son Kyle survives? No, that is not what the pol- are at over 70 percent. Then we go on from suffering death or severe brain icy of this Nation ought to be. This down. damage as a result of a rare breathing amendment would make sure that I will be candid with you. The lower, disorder that struck when he was 18 those occurrences do not occur. of course, your lifetime caps, especially days old. It says: I hope that people will take into con- when you get to the really low levels, When he sleeps, said the Livermore, CA, sideration that this is an amendment you obviously start covering more woman, his airway collapses and his brain which will correct the deficiencies in things than normally, and you end up does not tell him to breathe. He needs a the bill before us by saying that there with more cost. But the thing I am try- breathing machine at night and an oxygen monitor. When he sleeps, he must have some- will be a cap out there, which will be ing to make sure you understand is the one there all the time to make sure he is sufficient to take care of the expenses cost that is spread around is not that breathing. of these people to whom we are saying, high. Home nursing care costs alone can be ‘‘You have a good deal because you can Let us take a look at what some of $10,000 a month, and even though Mrs. continue your coverage.’’ Right now, the people say about what those costs Meniketti has spent sleepless nights the expectations are not there, and would be. First of all, let me run watching over her son rather than pay they can be changed at any moment. through some of these that have given for a nurse, his medical care is making So I want to urge you to consider us some costs. constant claims on the health insur- that this is something that is impor- The American Academy of Actuaries, ance plan of her husband Keith. As tant to the bill before us. It is an for instance, has given us a cost analy- these claims mounted, they face the amendment to the bill before us. It is sis which demonstrates what we are terrible prospect of the child’s expenses to correct the serious problem in the talking about. Let me go to Price soon reaching the million-dollar cap. bill before us. What we are talking Waterhouse first. Price Waterhouse is a He is 4 years old. So far he has es- about here, as far as the impact, is, ob- noted accounting firm, which we often caped it. But they will be forced into viously, if somebody is paying some look to give us accurate information, Medicaid if this amendment does not money, somebody is going to have to estimates that the Jeffords amendment succeed. shell out some money somewhere else. would save $7 billion in Medicaid Then there is Heather Fraser. I wish If they are being paid to have their costs—$7 billion—over 7 years. And you would have seen her. She appeared health taken care of—first of all, let more importantly, the cost to busi- at our press conference the other day. me review for a moment the kinds of nesses would be somewhere in the area She is 23 years old and suffers from costs involved with these actions. of—especially those in the larger cystic fibrosis. She has suffered already Look at this chart. It will show you areas—would be somewhere around 1 many times. She does not know from about children with hemophilia. There percent of their premiums. one day to the next whether she is are about 7,000 children with hemo- Let us go to another one. We have going to have one of these respiratory philia, not many in terms of 250 mil- several on this. infections. She has had chronic prob- lion. The average cost per year per per- Also the National Taxpayers Union; lems of all different kinds and will con- son is $100,000. Life expectancy is 40 let me tell the people on my side of the tinue to do so. She graduated from col- years. Lifetime cost per person for he- aisle what the National Taxpayers lege, is 23, and is looking forward to mophilia is $4 million. Do you want to Union says. They are supporting it. the future. What is going to happen? put them all under Medicaid? They say it will be scored as a direct The average cost per year to treat a Cystic fibrosis, the case I talked spending reduction in the Medicaid moderate case of cystic fibrosis is about earlier; the prevalence is about Program by approximately $2.8 billion $46,000. More severe cases cost roughly 4,000 in this country. That is not many over a 5-year period. In addition, $2.1 $79,000. To date, Heather’s medical ex- relative to the huge population. It is billion may be saved through State and penses have exceeded $800,000. Research easy to spread around the cost. The av- local Medicaid Programs. is going on, but right now she will be erage cost per person per year is How can you say that this is not beyond the cap and on Medicaid. $18,000, and the average life expectancy something that should be done when Another one is Lauren Yandell of is 30 years; $2.5 million. we know what it is going to do to help Williston, VT. Her policy has a cap of This is the kind of situation which us address the budget problems which $1 million. Lauren has a son who has we are talking about. we have? Do you know what that suffered from a chronic and very rare Let us take a look. There are other amount of money means? That is going neurological disease since birth. Be- examples. Spinal injury and head trau- to be replaced by the insurance pre- cause of medications and frequent sur- ma, you can also see where the costs miums? But it does not even cover the gery and personal care, his medical ex- are—around $5 million for a lifetime money that is drained out of all those penses are extremely high—last year situation. families that went out for expenditures alone, over $70,000. He is only 5 years Now let us review the question of on health care. old. At this rate, Lauren believes her why this is going to be a reasonable The Consumers Union, the other side son will exhaust the limit within 10 cost with respect to the existing situa- of the aisle usually looks forward to years. tion. Again, insurance—the main pur- the lifetime cap amendment which Barbara Church, in Shelburne, VT— pose of insurance is to spread costs would significantly benefit consumers. these are Vermonters, but there are over a larger population so that the The Consumers Union agrees that, if S3586 CONGRESSIONAL RECORD — SENATE April 18, 1996 health insurance policies have lifetime that. He mentioned the case of Chris- kinds of situations is incredible and in- caps, it would be no lower than $10 mil- topher Reeves. Christopher Reeves and credibly difficult, and all of us are fa- lion to the people exposed. They say it an actor named Robin Williams, when miliar with stories of families being is important and essential. they were students, made a pact that bankrupt because of these ceilings Then, of course, we have to look to they would support one another if they which are out there. Most of them were the Congressional Budget Office and we ever faced this kind of an emergency. about $1 million just until very re- have CBO’s estimates. This came to us Robin Williams, as an actor who makes cently, some of them as high as $2 mil- today. The Congressional Budget Office a great deal of money, is able to help lion. says the amendment would increase Christopher Reeves. But what about I agree with the Senator, and it pains the Federal deficit. They are the only the thousands of Americans who do not me to oppose him on this particular ones who say it is a cost after you bal- have a Robin Williams? measure. I was mindful of that during ance out the deductions for taxes—$120 It is very interesting. Senator JEF- his presentation. million. So by the worst-case scenario FORDS talked about the cost. We I ask the Senator what his disposi- we have an offset for this. You could changed the Federal insurance. In tion is, whether he might take a voice have a tiny, itty-bitty negative impact other words, all Federal employees, in- vote here. Does he prefer that we make of $120 million over 5 years. cluding everyone here in the Senate a tabling motion, or is he willing to So it is almost a no-brainer. It is right now—all of us—had some take—— hard to find out why anybody is changes. We had two major changes. Mr. JEFFORDS. That, of course, is against it. The most costly was adding mental the Senator’s option. I cannot stand This is the Congressional Budget Of- health coverage for all Members—not here representing 100 groups who sup- fice again. The proposal would initially only Members but all Federal employ- port this amendment and taking into raise private insurance premiums by ees. Do you know what that cost? It consideration the tremendous effort 0.4 percent. You want to keep in mind costs 27 cents each pay period. That is that Christopher Reeves has put into that, if you are an employer, you have the additional mental health coverage this personally to try and convince this options. You can increase your pre- cost. Twice a month we pay 27 cents. I body to do this reasonable thing, and miums, or you can increase your tried to find out what taking the $1 not, unfortunately, from the Senator’s deductibles. million cap off cost us, and nobody perspective, ask for a recorded vote. I do not mean to embarrass the Members So it may not even cost the business- knows what it cost. It is such a small on this, but I just remind them that I man anything. So again, the Congres- amount. sional Budget Office says that we have My guess is, if you took that chart was told I could come to the floor and offer it, and I am being precluded. But something here which either costs that Senator JEFFORDS has there of nothing or something which is going to companies that have a $1 million limit I understand that all got changed as we save the Treasury billions of dollars and the 22 percent that do not have any went along the way, and I do not hold any grudges against anybody. I under- over 7 years. limit, that you would find really no dif- stand you have to stand by that no So it is just hard for me to figure out ference in the rates charged; no pattern amendment outside of the Finance why there can be any opposition to do of difference. You are talking about Committee. I just would suggest to my this. Not only that. But Senator KEN- something that does not affect very colleagues that they are not bound by NEDY, and I think Senator KASSEBAUM, many Americans. So the total cost is any such thing and would urge them to have suggested that this is a great very limited. vote in favor of the amendment. amendment and that it ought to be on I talked earlier today—four reporters Incidentally, I have now heard some- some other bill. What other bill? Why stopped me out here, as they stop all of thing which occurs when you get peo- not the one it is most relevant to? Why us. I said to the reporters, when they ple nervous here, that there has been a not on the one with which we are try- were asking me about this, ‘‘Do you rush to find a new cost from CBO, and ing to make sure is helping people with know what kind of limits you have on apparently they are ready to rush over their transfer from job to job? your insurance?’’ Well, Adam Clymer and claim I do not have enough money. I understand the complexity of try- of the New York Times knew, but the Well, I am always ready for those cir- ing to get a bill through without any other three reporters did not know. I cumstances, and we are rushing over amendments on it. But I remind every- think very few Americans have any with an amendment which will put a one that we have already granted ex- idea what kind of limit they have. sufficient amount of money in it so I ceptions to the Finance Committee, They just know they are covered by in- do not get into a budget problem. If and I asked the committee that be one surance or they are not. they are not around, if we can just get of those exemptions because I offered it We should not impoverish people be- the yeas and nays without going at the committee level, and they said, fore we protect them. That is what we through the necessity of me amending ‘‘No way. Take it to the floor.’’ I come do with Medicaid. I think the Jeffords the amendment, that is fine, too. to the floor. They say, ‘‘Sorry. No amendment makes a great deal of Mr. SIMON. Will my colleague yield? amendments even though it is relevant sense, and I am proud to support it and The PRESIDING OFFICER. The Sen- to the bill.’’ It will save the middle-in- proud to be a cosponsor. ator from Massachusetts has the floor. come people billions of dollars. It will Mr. KENNEDY addressed the Chair. Mr. KENNEDY. I want to be very not cost employers hardly anything, The PRESIDING OFFICER. The Sen- clear. I had joined with the chairman and it will establish for the first time ator from Massachusetts. of the committee in indicating I would a good policy in this situation so that Mr. KENNEDY. Mr. President, it oppose amendments on this that vir- we do not drive people through poverty grieves me greatly to rise to indicate tually were not unanimously accepted. to qualify for Medicaid. my reservation about this amendment I should like very much to accept it. Mr. President, I yield the floor. on this particular bill. I know how hard As I mentioned earlier in the day, Mr. SIMON addressed the Chair. the Senator has worked on this project, there are many different features The PRESIDING OFFICER. The Sen- and in any other forum I would be a which I should like to add. ator from Illinois. strong supporter. I am very familiar I can remember very well I had a son PRIVILEGE OF THE FLOOR with Chris Reeves. He is a resident of who was in an NIH program, and they Mr. SIMON. Mr. President, I ask my State out in the Berkshires. He was terminated the NIH support. It was unanimous consent that Jayson a strong supporter of mine in the last $3,200 for the treatment they had to Slotnik, a fellow on my staff, be per- campaign, a personal friend as well. I give those children every 3 weeks for 3 mitted to be on the floor during the ac- am very familiar with the real chal- days for 2 years, and I was able to af- tion on S. 1028. lenges—first of all, the extraordinary ford it. Mothers and families were out The PRESIDING OFFICER. Without courage of this absolutely incredible there saying, well, my child only gets 5 objection, it is so ordered. human being. It is what I think of first months, 6 months. What chance does Mr. SIMON. Mr. President, I rise in when I think of Christopher Reeves. As that child have to live? support of Senator JEFFORDS’ amend- he has pointed out so well, the human I am very mindful of these situa- ment. I am blessed to be a cosponsor of tragedy of others who are facing these tions. I feel very strongly about them, April 18, 1996 CONGRESSIONAL RECORD — SENATE S3587 and I feel very sympathetic, too. But I The PRESIDING OFFICER. The Sen- Mrs. KASSEBAUM. Mr. President, I am also mindful that we need this leg- ator has the right to modify his amend- ask if there could be about a 5-minute islation, and we have made a commitment. delay to notify everybody to come. ment at the time which I hope the Sen- Is this an amendment to the amend- Mr. JEFFORDS. Mr. President, I sug- ator from Vermont will understand. I ment? gest the absence of a quorum. joined with the chairman of the com- Mr. JEFFORDS. Mr. President, it is The PRESIDING OFFICER. The mittee to that effect. But I will be glad an amendment to the amendment. I clerk will call the roll. to join with him at another time. But will ask to have it reported. The bill clerk proceeded to call the we are going to abide at least by the The PRESIDING OFFICER. The roll. assurances we gave to the other mem- clerk will report. Mrs. KASSEBAUM. Mr. President, I bers of the committee. At the appro- The legislative clerk read as follows: ask unanimous consent that the order priate time I will, or the chairman of The Senator from Vermont [Mr. JEFFORDS] for the quorum call be rescinded. the committee can, make a motion to proposes an amendment numbered 3680 to The PRESIDING OFFICER (Mr. BEN- table. amendment No. 3679. NETT). Without objection, it is so or- Mr. SIMON. Will the Senator from Mr. JEFFORDS. Mr. President, I ask dered. Massachusetts yield? unanimous consent that reading of the Mrs. KASSEBAUM. Mr. President, I Mr. KENNEDY. I will be glad to amendment be dispensed with or we ask that we now proceed to vote on the yield. will be here the rest of the evening. motion to table the amendment of the Mr. SIMON. I cannot speak for the The PRESIDING OFFICER. Without Senator from Vermont. The yeas and chief sponsor, but when you ask for a objection, it is so ordered. nays have been ordered. voice vote, the Senator from Massachu- (The text of the amendment is print- The PRESIDING OFFICER. The setts has a strong voice. If he will be ed in today’s RECORD under ‘‘Amend- question is on agreeing to the motion fairly silent in that voice vote, I would ments Submitted.’’) to lay on the table the amendment of be willing to take a voice vote, but I Mr. JEFFORDS. What this does, Mr. the Senator from Vermont, No. 3679. cannot speak for the Senator from Ver- President, is take an amount of money The yeas and nays have been ordered. mont. which has been verified by CBO, which The clerk will call the roll. Mrs. KASSEBAUM. Mr. President, if has yet to be utilized and also verified The bill clerk called the roll. I may, I, too, am very sympathetic to by OMB, that will cover any conceiv- Mr. LOTT. I announce that the Sen- EFFORDS is ad- the issue that Senator J able cost of this bill, to make sure ator from Colorado [Mr. CAMPBELL] and dressing. I think we all recognize—I be- someone does not come back and say I the Senator from Florida [Mr. MACK] lieve the figures are almost 1,500 Amer- failed to cover any cost of that. are necessarily absent. icans at least that would benefit from I understand there will be maybe a The PRESIDING OFFICER. Are there this legislation. It is more than just motion to table. Let me just urge my any other Senators in the Chamber de- the enormous financial cost. It is an colleagues to please remember what we siring to vote? emotional and difficult issue. The result was announced—yeas 56, are trying to do here. You have 100 dis- However, our agreement was not just nays 42, as follows: with the Finance Committee. Unless ability groups of people who are in favor of this amendment. You have es- [Rollcall Vote No. 74 Leg.] there is a consensus of support on both YEAS—56 sides of the aisle, then we have to op- timates which indicate that we have Abraham Ford Kyl pose the amendments. I think the Sen- eliminated all the small businesses 25 or under. We have not pulled lifetime Akaka Frist Lieberman ator from Vermont knows there are Ashcroft Gorton McCain many in the business community, par- caps. We have gone to $10 million, Bennett Gramm Mikulski ticularly the small business commu- which is exactly the value of what they Bond Grassley Moseley-Braun were many years ago when the million Bradley Gregg Moynihan nity, that have been opposed to this, Breaux Hatch Murkowski who worry a great deal about the im- dollar cap was in fashion. Brown Hatfield Murray plications of it and have said they What we are trying to do is prevent Bryan Heflin Nickles Chafee Hollings Nunn would oppose the whole bill if amend- people going into bankruptcy in order to qualify for Medicaid in order to take Coats Hutchison Pressler ments like this one would be added. We Cochran Inhofe Reid felt that the underlying amendment of- care of their sick ones. It also improves Cohen Inouye Rockefeller fered so much that we then had to also this bill because this bill would allow Coverdell Johnston Sarbanes an insurance company—although they Craig Kassebaum Simpson oppose those other amendments which Daschle Kempthorne Thomas I think have much merit, and it is with are forced to take somebody on the pol- Dodd Kennedy Thompson regret that I would, too, have to oppose icy, they can lower the lifetime caps Exon Kerrey Thurmond Faircloth Kohl it. I certainly am willing to have a roll- and chop them off after a year again, call vote. I think it will be up to the and then they are back out on the NAYS—42 sponsor of the legislation to determine street looking for care and back onto Baucus Feinstein Pell that. Medicaid. Biden Glenn Pryor With that, I would suffer the indul- Bingaman Graham Robb Mr. KENNEDY. I make a motion to Boxer Grams Roth table the Jeffords amendment. gence of a tabling motion at this time. Bumpers Harkin Santorum Mr. JEFFORDS. I would like to The PRESIDING OFFICER. If there Burns Helms Shelby amend my amendment first to have be no further debate, the question is on Byrd Jeffords Simon agreeing to the amendment. Conrad Kerry Smith plenty of money in there so nobody D’Amato Lautenberg Snowe can—— The amendment (No. 3680) was agreed DeWine Leahy Specter Mr. KENNEDY. I am not going to to. Dole Levin Stevens make that argument. That is fine. Mrs. KASSEBAUM. Does any Sen- Domenici Lott Warner ator wish further debate on the amend- Dorgan Lugar Wellstone Mr. JEFFORDS. All right. Feingold McConnell Wyden Mr. KENNEDY. If it is all right with ment, as amended? NOT VOTING—2 Senator KASSEBAUM. I have no objec- If not, I move to table the amend- tion to either doing it—we are not ment of the Senator from Vermont. Campbell Mack making a point of order on the money The PRESIDING OFFICER. The Sen- So the motion to lay on the table the or questioning it at this time. ator from Kansas has moved to table amendment (No. 3679) was agreed to. AMENDMENT NO. 3680 TO AMENDMENT NO. 3679 the amendment of the Senator from Mr. KENNEDY. Mr. President, Sen- (Purpose: To reduce delinquencies and to im- Vermont, as amended. ator DOMENICI has been seeking rec- prove debt-collection activities govern- Mr. JEFFORDS. Mr. President, I ask ognition, and I believe he is willing to ment-wide, and for other purposes) for the yeas and nays. enter into a time agreement. Mr. JEFFORDS. I want to preclude The PRESIDING OFFICER. Is there a Mr. DOMENICI. Senator WELLSTONE, that objection from being registered, sufficient second? how much time? so, Mr. President, I have an amend- There is a sufficient second. Mr. WELLSTONE. I think I need ment to my amendment. The yeas and nays were ordered. about 15 minutes. S3588 CONGRESSIONAL RECORD — SENATE April 18, 1996 Mr. DOMENICI. From the standpoint Without objection, it is so ordered. some figment—it did not come because of proponents, we will settle on 35 min- Mr. DOMENICI. Mr. President, I ask somebody’s mother did not take care of utes. You all can take whatever you for the yeas and nays. them properly; it is a severe disease of would like. The PRESIDING OFFICER. Is there a the brain. If you happen to have one of Mr. KENNEDY. Mr. President, I ask sufficient second? those kinds of persons in your family that we have 40 minutes on the Domen- There is a sufficient second. and you have an insurance policy that ici-Wellstone amendment, 35 minutes The yeas and nays were ordered. is typical in America, it will, for the to be under the control of Senators DO- AMENDMENT NO. 3681 most part, not cover very much, it will MENICI and WELLSTONE, and 5 minutes (Purpose: To ensure that parity is provided have a cap that is very insignificant, under the control of Senator KASSE- under health plans for severe mental ill- and it will be very distinct from the BAUM. ness services) rest of the policy coverage. In other Mr. JOHNSTON. Does the Senator Mr. DOMENICI. Mr. President, I send words, they will go out of their way to from Massachusetts know how many an amendment to the desk and ask for cover mental illness differently and amendments and when we might expect its immediate consideration. with less coverage than the basic cov- to finish tonight? The PRESIDING OFFICER. The erage they are giving to physical ail- Mr. KENNEDY. On our side there clerk will report. ments, diseases that we all understand. would probably be—we have Senator The assistant legislative clerk read The time has come—and we can wait BOXER’s amendment, which I think will as follows: once again, but I believe it is tonight— take a very short period of time. We The Senator from New Mexico [Mr. DOMEN- to send a signal that while we have a have Senator CONRAD on visa, which I ICI], for himself and Mr. WELLSTONE, pro- bill before us that is going to alter think we can work out. We are waiting poses an amendment numbered 3681. some serious shortcomings in insur- for the report of the chairman on the Mr. DOMENICI. Mr. President, I ask ance coverage in America—and we un- immigration control. Senator SIMON, a unanimous consent that reading of the derstand what they are and we com- sense-of-the-Senate which I think will amendment be dispensed with. pliment the committee for taking one be very short. We are on the Domenici- The PRESIDING OFFICER. Without good bite at this problem—but those of Wellstone now. There is one by Senator objection, it is so ordered. us who are worried about the problem DORGAN on the organ cards, which (The text of the amendment is print- of mental health and mental illness, in- hopefully we can accept. ed in today’s RECORD under ‘‘Amend- cluding severe mental illnesses, like I do not think we have any amendments Submitted.’’) manic depression, severe depression, ments here that would require very Mr. DOMENICI. Mr. President, I bipolar or serious depression, we under- much time to deal with. yield myself 10 minutes and ask that I stand that there is medication avail- Mrs. KASSEBAUM. Mr. President, if be advised when I have used 9 minutes the Senator from Massachusetts would able, there is treatment available. But, of that time. occasionally, they have to be treated in yield, there may be some amendments Mr. President, it is with a degree of offered that will be withdrawn—not all an atmosphere that costs a lot of regret that I have to bring this amend- money, in an environment that costs a have been agreed to or cleared. I think ment to the floor on this bill because I we are moving forward. We wish to lot of money. understand that Senators KASSEBAUM, This amendment is very simple. I am complete this by 9:30 or 10 o’clock to- KENNEDY, and the committee of juris- offering it with my friend, Senator night at the latest. We need to know diction have worked very hard on the WELLSTONE. Essentially, Mr. President, exactly who will be wanting a rollcall basic bill that is before us. They have it prohibits insurers and health plans vote on their amendments. I think that made some commitments, which I from imposing treatment restrictions is what everyone would like to know. gather, based on the last vote, that or financial requirements on services Senator DOMENICI’s amendment will they take very seriously. They are be next. There will be a rollcall vote I for the mentally ill that it does not im- going to try to keep this bill clean. believe. At that point, we should know pose on services for the physically ill. I have to say to my fellow Senators We offer this today, although this how many more votes would actually that when you are involved and under- country has come a long way in under- be ahead of us. Mr. JOHNSTON. Will the Senator stand what is going on out there in standing and recognizing the special yield for a question? America with reference to the men- problems of people suffering from men- Mrs. KASSEBAUM. I am happy to. tally ill people and their inability to tal illness. We understand that struc- Mr. JOHNSTON. Would it be out of get adequate insurance coverage, which tural and institutional discrimination the question to stack some votes to- I will explain in a little more detail to continues and persists in our society. night? the Senate, you have to take every op- Stigmas are rampant in this area, and Mrs. KASSEBAUM. We thought not. portunity you can to try to effect some I am referring to another kind of dis- We thought it best to move forward. major change. crimination—that is, the way health After the next vote, we will be able to The country, in terms of insuring insurers and health plans treat these tell you exactly how many more roll- people for various physical disabilities individuals, and I believe this situation call votes there will be. has come a long way. But this country, represents one of the real continuing Mr. DOMENICI. When you ask the in terms of insuring mentally ill peo- injustices in America today. Senator from Kansas a direct question, ple, is going backward instead of for- Although we now understand that she gives you a direct answer, right? ward, because as insurance costs go up, mental illnesses are, in fact, for the The PRESIDING OFFICER. There is insurance company after insurance most part, physical illnesses, they are no unanimous-consent agreement be- company is finding a way to try to still treated differently than other fore the Senate. The Senator from Mas- write cheaper and cheaper insurance, physical conditions. The only dif- sachusetts was propounding one, but it and they look for ways to drop groups ference between the other physical ail- was not formally propounded. of people from coverage by saying they ments and mental illness is that men- UNANIMOUS-CONSENT AGREEMENT are not covering them, or are covering tal illness is a disease of the brain, and Mr. KENNEDY. Mr. President, I ask them so inadequately that they are left it may be more complicated, but we are unanimous consent that on the Domen- back in the arms of their parents or making excellent strides at under- ici amendment that there be 40 min- relatives. So this is happening dramati- standing it. Because this disease mani- utes, with 35 minutes under the control cally across America. When it comes to fests itself in our centers of thought, of Senators DOMENICI and WELLSTONE, 5 mental illnesses, I submit that I know reason, and emotion, many find it easy minutes under the control of Senator a little bit more about severe mental to deride those problems and to deride KASSEBAUM and the Senator from Mas- illnesses because I have worked ac- those who are afflicted, or turn their sachusetts, and that there be no sec- tively in committees on that issue for back on the problem, or act as if the ond-degree amendments in order to the a long time. problem does not exist. Mental illness Domenici amendment. But if you happen to be a parent of is not due to sinful behavior. It is not The PRESIDING OFFICER. Is there somebody who has schizophrenia, a due to a weakness, or frail character. objection? very serious mental disease, and not These illnesses are real, and they are April 18, 1996 CONGRESSIONAL RECORD — SENATE S3589 debilitating, and there are many who ica—because you choose and pick in- I am proud to cosponsor this amend- suffer from them. Nearly 5 million surance companies to cover what you ment, which would require that health Americans suffer from severe forms of want and what you do not want you do plans to provide coverage for mental mental illness. I will repeat just a few not cover—we came today to the Sen- health services commensurate with of them. ate and in 1 day or 2 are going to pass what is provided for other physical ill- Schizophrenia affects about 2 million a marvelous bill that says, in two nesses. adults a year. And I repeat, nobody is areas, you are all going to cover some- For too long, mental health has been at fault because somebody has schizo- thing. I am just asking tonight that, in put in parenthesis; we did not want to phrenia and acts differently and rea- three areas, you say you are going to talk about it, and we did not take it se- sons differently. They are just as sick cover something. riously as a country. The stigma of as your neighbor who has cancer. I know the motion to table will be mental illness has kept many in need Yet only 2 percent of all individuals made, and the argument will be made from seeking help, and it has prevented with mental illnesses are covered by that this is not the right time. And, of policymakers from providing it. And insurance which provides benefits course, I am taking a gamble, because for too long, persons in need of mental equal to the coverage for physical ill- with that kind of power, I might lose health services who reach private cov- nesses. I stated that in generalities a this amendment. But let me suggest, if erage discriminatory limits have been while ago. Now, here is the objective we do—and I hope we do not—you can dumped onto Government-funded pro- number. Through narrowing down the count on it, we are going to be back grams. definitions through caps that are irre- here, and we are going to find and look Mr. President, I support a universal sponsible but save money so insurance until we find a vehicle that sets this health coverage plan, and comprehen- companies do it in their own self-inter- thing straight. sive benefits for mental health serv- est, only 2 percent of Americans with Mr. President, when that bill was ices. While we failed to enact legisla- mental illness are covered with the sent to the desk, I saw some Senators tion to achieve this during the 103d same degree of coverage as if they got watch it go up there and they saw this Congress, we did increase awareness. tuberculosis or cancer instead of very thick bill. I do not want you to But now we are talking about parity, manic-depression or schizophrenia. think there is all kinds of language in and awareness is not enough. You can walk down any street in there about mental illness. What we Our amendment would require health urban America and you will find them. have to do is pay for this. plans to provide parity in their cov- It is time to give these people access to So much of that bill is to defer the erage of physical and mental health. care they need, and as you see them in cost in the first 5 years of this bill, and Plans would be prohibited from requir- urban America sleeping on grates and we have used offsets that are accepting copays, or deductibles, for mental other things, you should realize that able, which Senator WELLSTONE and I health benefits, or establishing life- they probably started out as wonderful have used at other times here but have time limits for mental health benefits, teenage children in some beautiful not become law. So we have offset it as or establishing visit limitations for family. And when the costs got prohibi- best we could. That is what most of mental health services unless the same tive and the behavior uncontrollable, that is. restrictions apply to other health serv- they are abandoned. In fact, you find It is a rather simple bill. We could ices. more of them in jails than in the insti- narrow it down. We chose not to. We All we ask for is equitable treatment. tutions which we ought to have to help talk about mental illness. That in- That is all this amendment does. All them. Most studies reveal that most of cludes all of the severe ones, but it in- this amendment does is say, please let the severely mentally ill are in prisons cludes more, and it says as part of us stop this discrimination. or county or city jails because of mis- treatment, no more discrimination, no Mr. President, many people, or most behavior than in places we put to- more treating them differently. people’s instinctive reaction is to as- gether to treat them. Part of that is We have cost estimates. If it was sume that this amendment would be because resources are not applied, and done across the board in all policies, it expensive. This is not the case. As a part of the reason resources are not ap- would add about 1.6 percent net to the matter of fact, in my State of Min- plied is because the insurance compa- insurance coverage across the land. It nesota, where we have already passed nies—I am not here angry at them, I obviously would not happen overnight. legislation requiring full parity for am not here fighting with insurance It would take some time. But, essen- mental health and substance abuse companies. Because what they say is, tially, we want to give the Senate an services, this was implemented August ‘‘How do we make money? So if we opportunity to vote on this tonight. 1, 1995, and the cost of the parity man- lessen the coverage for mental health, That is my explanation for now. I date was estimated to be 26 cents per we get a better bargain for people who want to say thanks to Senator member provided. Minnesotans who want coverage for the other things.’’ WELLSTONE. He has been kind of my were unable to work full time either But I am submitting that sooner or friend working on this for a long time. because they were too sick or they later we have to say to them that you There are some other Senators on were forced to impoverish themselves all have to cover them. If you are cov- board. in order to qualify for Medicaid bene- ering physical illness and they get 6 I want to yield to him now 7 minutes fits, are now able to work and pay months of hospitalization, you have to of my time for him to tell us his ver- taxes and be productive. Because of do the same for mentally ill people. If sion of why we ought to do that. this discrimination, all too often peo- not, nobody is going to care for them. Thank you very much. ple cannot work so that they can re- Let me tell you, I have seen pur- The PRESIDING OFFICER. The Sen- ceive medical assistance. People are posely and intentionally how this de- ator from Minnesota. forced to impoverish themselves in stroys families. I have been to the Na- Mr. WELLSTONE. Mr. President, I order to qualify for the medical assist- tional Alliance for the Mentally Ill am very pleased to be here with my ance they need. meetings with 1,000 of the finest people colleague, Senator PETE DOMENICI, to Now, in Minnesota—this is what we in America who are there talking introduce an amendment on an issue propose to do for our Nation, because about their children, and in many cases that I feel very strongly about. Our we have parity and we have ended this they are lost because they could not af- amendment deals with one issue, and discrimination—these same Minneso- ford to pay for them when they were 19 we hope that we have our colleagues’ tans are now able to work, to live a life and 20, and they do not even know vote tonight: equitable health care cov- with dignity, and to pay their taxes. where they are. Somebody in this soci- erage for mental illness services. Mr. President, we have a tremendous ety is paying for that. For the most Mr. President, let me say it has been body of evidence, new evidence, prov- part, the ill are paying for it, for they a real honor to work with Senator DO- ing that, without a doubt, mental are not getting taken care of right. MENICI on this issue. He has been a real health disorders can be diagnosed and I thought a bill that was aimed at leader, as has his wife, Nancy, and I treated in a cost-effective manner. correcting the lack of coverage in the personally appreciate all of their ef- In fact, we can show that within a private insurance industry of Amer- forts. very short period of time it costs less S3590 CONGRESSIONAL RECORD — SENATE April 18, 1996 to treat those disorders directly and I do not usually do this on the floor after years of reaching out to us in her appropriately than not treat them at of the Senate, but I would like to dedi- way and us not hearing and us not all. We can say that this is true based cate my remarks to my brother who knowing, she one day decisively pur- upon studies of every sector of our pop- has struggled with mental illness al- chased a pistol and a few hours later ulation—insured and employed, unin- most his whole life. He is doing great purchased the ammunition and went to sured and unemployed, people who now now. an isolated field, removed her shoes, use the private system and those who I yield the floor. sat in a the crouched position in Bowl- now use the public system. Mr. DOMENICI addressed the Chair. ing Green, KY, and blew her chest Mr. President and colleagues, there The PRESIDING OFFICER. The Sen- away. are several arguments for requiring ator from New Mexico. That is what sometimes happens to parity for mental health services. Mr. DOMENICI. How much time does these people, and we think, ‘‘well, but First, we now have cost-effective treat- the Senator from New Mexico have? they should have tried to do something ments for mental illnesses and high The PRESIDING OFFICER. The Sen- for themselves. rates of success are being achieved ator has 13 minutes and 5 seconds. We thought we were doing something across the spectrum of diagnosis. For Mr. DOMENICI. My good friend, Sen- for her. We thought she was finally example, 80 percent of individuals with ator SIMPSON, desires to speak, and I doing it for herself. She was taking depression respond to treatment. Sec- yield him 5 minutes. And then, I say to medication, and it was working. But ond of all, mental illness results in the Senator from North Dakota, I will then something, something unknown, physical illness, inability to work, im- yield him some time. entered her mind and her life and she paired relationships, and sometimes The PRESIDING OFFICER. The Sen- decided not to take the medication crime and homelessness. ator from Wyoming. —knowing what would happen if she Would it not be better to end the dis- Mr. SIMPSON. Mr. President, I hope did not—and then her tragic plan of ul- crimination and have less of the home- that all Members will read the amend- timate rejection came to pass. lessness? Would it not be better to end ment. I know sometimes we forget to There is a group of humans—a par- the discrimination and enable people do that from time to time, it is perhaps ticular vulnerable group in society to work and be productive citizens? one of our failings. It is a very simple that the mental health workers and And finally, Mr. President, mental amendment. It is described as ‘‘par- professionals tell us about who now are health services are already part of ity.’’ I think the Senator from New in their 37th to their 45th year, who health delivery in the United States. Mexico and the Senator from Min- somewhere along the line were perhaps Let us have no doubt about it, this nesota have covered it very well. those involved in the early experimen- amendment leaves all decisions about The important thing that you want tation with drugs, yes. Yes, of course, the delivery of services to the private to hear regarding it is about the rule of but that penalty should not be some- marketplace. The amendment does not its construction. It is just one con- thing visited upon them forever. So I require the provision of mental health struction because people say that it is say there is not a soul in this Chamber services to employees, specify what going to be tremendously costly; or that has not been grievously affected care should be provided, interfere with that this is going to ‘‘open the doors’’ in some way by these things. It is time the discretion of employers and health or that this is the first step toward infor healing. It is time for understand- plans to negotiate reimbursement rates curring tremendous cost. But what the ing more than anything. It is time to as they see fit, or mandate the use of amendment says is this: minister. It is time to love and to be compassionate and time to learn so any particular kind of delivery of need- Nothing in [the subsection previous] shall much more about these tragic things. ed care. be construed as prohibiting an employee What this amendment calls for is just health benefit plan, or a health plan issuer For these are the people who you know offering a group plan, or an individual health parity. Mental illness has touched and see every day, and they are making plan from requiring preadmission screening it, and they never did before, but they many of our families and many of our prior to the authorization of services covered friends. It is for this reason and many are now. If we can put this in this bill under the plan or from applying other limi- in this way with this language, I think others that it is not a partisan issue. tations that restrict coverage for mental it would be a tremendous benefit to Mental illness is a problem affecting health services to those services that are them—and they are our first charge— all sectors of American society. It medically necessary. and to the rest of us in society. shows up in both the rural and urban I think that is a very important I thank the Chair. areas. It affects men and women, teen- thing. That is a very critical part of Mr. DOMENICI. How much time do agers and the elderly, every ethnic this. we have remaining, Mr. President? group and people in every tax bracket. Let me just tell you that about 4 The PRESIDING OFFICER. The Sen- It can be effectively treated just like years ago a most beautiful girl in our ator has 8 minutes and 50 seconds. heart disease or diabetes. Treatment family, the niece of my wife—my wife’s Mr. DOMENICI. Mr. President, I not only saves lives but it also saves twin sister’s daughter, whom we had yield 5 minutes to Senator CONRAD. dollars. That is why this amendment is watched grow and mature from her Mr. CONRAD. Mr. President, I per- so important. birth—left our midst. She was a danc- sonally thank Senators DOMENICI and I look forward to the adoption of this er; she was an artist; she was a poet; WELLSTONE for bringing this amend- amendment and to continuing to work she was a guitarist; she was a singer; ment to the Chamber tonight. with Senator DOMENICI to end discrimi- she was the rainbow of life. I rarely take the time of my col- nation against this very vulnerable We did not get or understand the sig- leagues, in the evening hours, to speak, population and their families. It is only nals in time, and the signals were very because I often feel that it is an impo- old data and old ideas that keep us clear as we all look back now out of sition on their time. Tonight, I think from covering mental health, the same sheer guilt and anguish. She was tough this amendment is so important that it way we cover any other real illness, minded, independent, loving, strong, requires all of us to speak. This amend- whether it is acute or chronic. and forceful. She would come into your ment simply asks that mental illnesses I know there has been some agree- kitchen and just cook up a batch and be treated on a parity basis with other ment on amendments, but I plead and leave the stuff in the sink, and family illnesses. It is inescapable: An illness is implore my colleagues to please vote would say, ‘‘Why doesn’t Susan clean an illness. There should be no differen- for this amendment. Senator DOMENICI up afterwards?’’ And then, ‘‘Why tiation between how we treat those is right. Tonight is just the beginning. doesn’t Susan work? How old will she who have a mental illness and a phys- If we do not win tonight—and I hope we be before she ever works?’’ ical illness. get a very significant vote, and I hope She began to withdraw, and then she When I was the assistant tax com- we do win—then, of course, we will went into some religious and almost missioner in North Dakota, Senator come back. cultish activities, and she had a child. DORGAN was the tax commissioner. We Colleagues, please support us. Please And that is a beautiful child. I know had a young woman who was our recep- end the discrimination. That is what that child. That is the wonderful part tionist. She was a beautiful and vi- this amendment is all about. of it now—because Susan is gone. And brant young woman. She was somebody April 18, 1996 CONGRESSIONAL RECORD — SENATE S3591 who absolutely lit up an office. One tion that were phased in over a period The era of managed care is upon us, day, she just went off the deep end with of time. making tight management of patient a mental illness that none of us knew So I am strongly sympathetic. I just care the norm, and artificial cost that she had. Pictures were speaking to regret this. Hopefully, it will be de- measures to reduce utilization are a her. She had all kinds of aberrant feated. Maybe we are going to continue thing of the past. thoughts. It led to her institutionaliza- to have these votes so people are able I have a number of examples of com- tion. It led to her attempting to take to speak to them. Once again, I can un- panies that have covered with parity of her own life. That was a young woman, derstand the frustration because we treatment and, believe it or not, they because of a suicide attempt, who did have not gone ahead on it. have saved money and added to their enormous damage to herself from It is painful for many of us who are work force in ways that are measurable which she will never fully recover. strongly committed to the whole issue and objectively beneficial to the com- That young woman had a mental ill- of eliminating preexisting condition panies that have so seen fit. ness, and that illness deserved to be and our strong commitment to that, to So, from my standpoint, from the treated like any other illness. She is have to go on record in opposition to standpoint of the Senator from New not alone. There are millions like her these amendments. But if that is the Mexico, I do not seek to kill this bill. all across America. As we sought to cost, and Members of the Senate feel I think it is a marvelous step in the reach out and help this young woman, that is what they want to do to many right direction. But I ask my fellow I became somewhat educated about of us who have been out there working Senators when, if not tonight, will we what was happening in our commu- on precondition year in and year out, ever get around to this issue? If I nities. One thing I learned is that we we are prepared to do it. thought there was another bill coming actually treat differently those with a I will join in urging that the Senate down this year, I would probably have physical illness and those with a men- table this at the first opportunity. made an agreement so that I could The PRESIDING OFFICER. The Sen- tal illness, and it is a tragedy. have the full support of my friend from ator from New Mexico. In our State, we have taken the step Mr. DOMENICI. Mr. President, how Massachusetts and my colleague and to recognize that there should not be much time do I have left? friend from Kansas, Senator KASSE- discrimination between illnesses. What The PRESIDING OFFICER. The Sen- BAUM. But I do not see that coming. we have found is it does not cost more ator from New Mexico has 4 minutes 26 I believe there is plenty of evidence money. Oh, it does as you begin, but as seconds. that the discrimination continues. It you go forward, it does not cost more Mr. DOMENICI. Mr. President, I cer- grows more rampant. The stigma, since money, and it does not cost more tainly do not intend by my action to- that discrimination is rampant, is money because, if you fail to treat, the night to make it painful for Senator growing instead of diminishing, in an physical ailments mount and become KENNEDY, who has been a staunch ad- era when knowledge is beginning to much more expensive. vocate. I hope that is not what he said grow almost exponentially. I would say to my colleagues, we tonight. I just believe very, very sin- So, now is the time. Tonight is the passed this amendment. We passed this cerely that the time is now to get time to send this to conference. Deny in the Finance Committee on Medicaid, something done. the motion to table. Let our Senate during reconciliation. I offered the I want to explain one more time in colleagues take this to conference. Let amendment. It was adopted. It passed just a brief, few words what this us work on the various interests that here on the floor of the U.S. Senate. It amendment does not do, because I will be part of that conference and see was only taken out in conference. think there could be some confusion. if we cannot make this a better bill be- We passed it in the Finance Commit- Let me clear up what it does not do. It cause it would have this amendment tee based on the best evidence that does not provide an open-ended entitle- attached than it would if it fails to- shows over time this will not cost ment to whatever mental health serv- night. money. I submitted detailed studies ices an individual wants. It does not I yield the floor. from North Dakota that demonstrate limit the ability of an insurer or health Mrs. KASSEBAUM addressed the that. plan to limit services to only those Chair. I hope my colleagues will vote for who are medically necessary. It does The PRESIDING OFFICER. The Sen- this amendment tonight. It is the right not institute a service-by-service ator from Kansas. thing to do. I hope my colleagues will equivalency between physical and men- Mrs. KASSEBAUM. Mr. President, I agree to the Domenici-Wellstone tal illness. It does not mandate a bene- know that many here would like to amendment. They will be proud the fit package. vote in favor of this amendment of- rest of their lives that they did. It simply makes the following com- fered by Senator DOMENICI, and Sen- I yield the floor. mon situations illegal. Let me cite a ator WELLSTONE is one. It has been The PRESIDING OFFICER. The Sen- few: carefully crafted. ator from Massachusetts. Policies that allow 365 days in-pa- There is no greater dedication to this Mr. KENNEDY. Mr. President, I yield tient care for physical illness allow legislation than from those who have myself 21⁄2 minutes. only 45 days for in-patient psychiatric spoken to us, as well as Senator KEN- I have difficulty in not commending, care. NEDY who, for a long time, has been a which I do, my good friends and col- Policies that provide a lifetime cap great supporter. leagues with whom I have worked over of $1 million for physical care have a So it is with real disappointment, if a very considerable time on the issues $50,000 cap for mental illness. all debate is over, that I will have to of mental health. This is obviously an Policies providing unlimited out- move to table, as it is not an amend- awkward position for me to have these patient visits for physical care allow ment that has consensus of support. amendments come up and to be fight- only 20 outpatient visits for mental ill- And so for that reason, I only hope we ing these issues. One of the first pieces nesses. can find some other avenue later of legislation passed during President Mr. President, 90 percent of em- through which we can address this. Kennedy’s administration was the com- ployer-sponsored plans impose such I move to table the Domenici- munity health programs which got peo- limits, despite the proven efficacy of Wellstone amendment, and I ask for ple out of institutions, and into the treatments for mental illness. Treat- the yeas and nays. community. I worked with Senator DO- ment for schizophrenia has a 60 percent The PRESIDING OFFICER. Is there a MENICI and Senator WELLSTONE in 1990 success rate; manic depression, 80 per- sufficient second? to move the whole mental health recent; major depression, 65 percent. Yet There is a sufficient second. search out to NIH, against strong oppo- commonly reimbursed procedures such The yeas and nays were ordered. sition at that time. In the health insur- as angioplasty and arthrectomy have Mr. DOMENICI. Has all time expired? ance bill that we passed last year, we only a 41-percent and a 52-percent The PRESIDING OFFICER. The Sen- had effective equivalence between men- ratio, and nobody seeks to treat them ator from New Mexico has 14 seconds tal health and physical health, though with limitations that are imposed on remaining. The Senator from Kansas there were some aspects of hospitaliza- mental illnesses. has 2 minutes. S3592 CONGRESSIONAL RECORD — SENATE April 18, 1996 Mr. DOMENICI. I yield back my would like to have a vote. He has two with that understanding. Would that time. amendments. be possible? Mrs. KASSEBAUM. I yield back my Mr. DOLE. En bloc? Mr. DOLE. I am satisfied with that. I time. Mrs. KASSEBAUM. I would assume think it is a good idea. The PRESIDING OFFICER. The we could vote en bloc. Mrs. KASSEBAUM. As long as there question is on agreeing to the motion Mr. SPECTER. I am right here and are so few left. to lay on the table amendment No. ready to go, madam manager. Mr. DOLE. We can stack three or 3681. Mrs. KASSEBAUM. All right. I am four votes back to back, accept the rest The yeas and nays have been ordered. not sure about Senator THOMAS, wheth- of them, and have final passage. The clerk will call the roll. er he will want a vote on his, and Sen- Mr. LEAHY. Will the majority leader The legislative clerk called the roll. ator GRAMM. I believe those are the yield for a question? Mr. LOTT. I announce that the Sen- only amendments that I have listed Mr. DOLE. Yes. Mr. LEAHY. If we are going to stack ator from Colorado, [Mr. CAMPBELL] that would require—Senator BURNS, I and the Senator from Florida [Mr. believe, has one on telemedicine. them, do we know approximately when the votes will start? MACK] are necessarily absent. Mr. COATS. I have one, also. Mr. DOLE. How much time will the The PRESIDING OFFICER (Mr. JEF- Mrs. KASSEBAUM. I thought we Senator from Pennsylvania take? FORDS). Are there any other Senators were going to try to work that out. Mr. SPECTER. Mr. President, rein the Chamber desiring to vote? Mr. COATS. We are not able to work sponding to the majority leader’s ques- The result was announced—yeas 33, that out, so we are going to have to tion, I think it can be disposed of in 20 nays 65, as follows: have a vote on it. Mr. DOLE. How many from the Sen- minutes, 10 minutes a side. [Rollcall Vote No. 75 Leg.] Mr. DOLE. Each amendment, or ator from Massachusetts? YEAS—33 both? Mr. KENNEDY. We have the Conrad Ashcroft Faircloth Kempthorne Mr. SPECTER. I am going to start Bond Ford Kennedy amendment on J–1 visas, which is ac- with the first amendment. Breaux Frist Kohl ceptable. We have one other amend- Mr. KENNEDY. We would take 5 min- Brown Gorton Kyl ment where somebody wants to intro- Bryan Gramm McCain utes. Chafee Grams Nickles duce it, speak, and withdraw it. Sen- Mr. DOLE. Let us say an hour from Coats Gregg Reid ator DORGAN’s amendment on organ now. Cohen Hollings Rockefeller donor, which, I believe, has been ac- Mr. LEAHY. Votes will start then, an Craig Inhofe Roth cepted, with Senator FRIST. We have Daschle Johnston Smith hour from now? Dodd Kassebaum Thompson Senator HARKIN’s, and we are waiting Mr. DOLE. Yes. to see whether Senator WELLSTONE NAYS—65 AMENDMENT NO. 3682 wants to work out an exchange of lan- (Purpose: To reauthorize and expand the Abraham Glenn Moynihan guage or a vote. And there is a Senator healthy start program to target areas in Akaka Graham Murkowski Baucus Grassley Murray Boxer sense of the Senate. need and to implement community driven Bennett Harkin Nunn Some of those, as I mentioned—the strategies to reduce infant mortality) Biden Hatch Pell Conrad visa amendment, and the organ Mr. SPECTER. Mr. President, I send Bingaman Hatfield Pressler an amendment to the desk and ask for Boxer Heflin Pryor donor amendment—have been worked Bradley Helms Robb out. I think they will just take very its immediate consideration. Bumpers Hutchison Santorum brief comments. The PRESIDING OFFICER. The Burns Inouye Sarbanes Mr. DOLE. So that will be two votes? clerk will report. Byrd Jeffords Shelby The legislative clerk read as follows: Cochran Kerrey Simon Mr. KENNEDY. Potentially, four. I Conrad Kerry Simpson hope we get it down to three. The Senator from Pennsylvania [Mr. SPEC- Coverdell Lautenberg Snowe Mr. DOLE. Let me encourage my col- TER] proposes an amendment numbered 3682. D’Amato Leahy Specter leagues, if there is an opportunity to Mr. SPECTER. Mr. President, I ask DeWine Levin Stevens Dole Lieberman Thomas work these out on either side, we hope unanimous consent that reading of the Domenici Lott Thurmond we can do that and not require a roll- amendment be dispensed with. Dorgan Lugar Warner call vote. If you are going to work out The PRESIDING OFFICER. Without Exon McConnell Wellstone objection, it is so ordered. Feingold Mikulski Wyden your amendment and it is accepted Feinstein Moseley-Braun without rollcall votes, I will look very The amendment is as follows: kindly on those amendments. I will be At the appropriate place in title III, insert NOT VOTING—2 the following new section: a conferee. Campbell Mack SEC. . REAUTHORIZATION OF HEALTHY START Mr. DOMENICI. Mr. President, I ask PROGRAM. So the motion to lay on the table the that the yeas and nays be vitiated on (a) AUTHORIZATION OF APPROPRIATIONS.—To amendment (No. 3681) was rejected. the Domenici amendment. enable the Secretary of Health and Human Mr. DOLE. Mr. President, I move to The PRESIDING OFFICER. Without Services to carry out the healthy start pro- reconsider the vote. objection, it is so ordered. gram established under the authority of sec- Mr. SANTORUM. I move to lay that The amendment is agreed to. tion 301 of the Public Health Service Act (42 motion on the table. So the amendment (No. 3681) was U.S.C. 241), there are authorized to be appro- The motion to lay on the table was agreed to priated $100,000,000 for each of the fiscal years 1997 through 2001. agreed to. Mr. DOMENICI. Mr. President, I (b) EXISTING PROJECTS.— Mr. DOLE. Mr. President, I think we move to reconsider the vote. (1) IN GENERAL.—Of the amount appro- are making progress. I wonder if the Mr. EXON. I move to lay that motion priated under subsection (a) for a fiscal year, managers might be able to identify on the table. the Secretary of Health and Human Services those amendments that would require The motion to lay on the table was shall reserve $30,000,000 for such fiscal year rollcall votes and have the debate on agreed to. among demonstration projects that received those amendments, and then we can Mr. DOLE. Mr. President, I think the funding under the healthy start program for fiscal year 1996. advise our other colleagues that did distinguished Democratic leader want- (2) ELIGIBILITY.—To be eligible to receive not have amendments that we would ed to add a word. funds under paragraph (1), an existing dem- probably be voting, say, at 10 o’clock Mr. DASCHLE. Mr. President, I ask onstration projects shall demonstrate to the or 9:30, or whatever it might be. That the majority leader whether or not, to satisfaction of Secretary of Health and would save everybody from having to accommodate a couple of our col- Human Services that such project has been stay on the floor. When you stay on the leagues, who, I think, were working successful in serving needy areas and reduc- floor, sometimes you get excited and under the understanding that we might ing infant mortality. (3) USE OF PROJECTS.—A demonstration talk. be able to stack votes, whether or not project that receives funding under para- Mrs. KASSEBAUM. Mr. President, I it may be possible to stack the next graph (1) shall be utilized as a resource cen- say to the majority leader, on our side, two or three votes so as to accommo- ter to assist in the training of those individ- I understand that Senator SPECTER date some of those who may have left uals to be involved in projects established April 18, 1996 CONGRESSIONAL RECORD — SENATE S3593 under subsection (c). It shall be the goal of these listings so that my colleagues Mr. SPECTER. Mr. President, in re- such projects to become self-sustaining with- will know how many of these units are sponse to the comments of the Senator in the project area. in existence in their locales. Troy, IN; from Kansas, it is my strong view that (c) NEW PROJECTS.—Of the amount appro- Chicago, IL; New Orleans; the Northern a healthy start program is directly ger- priated under subsection (a) for a fiscal year, the Secretary of Health and Human Services Plains Indian Reservations; commu- mane and directly relevant to the shall allocate the remaining amounts for nities in South Dakota, North Dakota, pending legislation on health care and such fiscal year among up to 35 new dem- Iowa; Oakland, CA; and special projects that it is a jurisdictional question. I do onstration projects. Such projects shall be in Dallas, TX; Essex County, NJ; the not quite understand the argument. community-based and shall attempt to rep- Florida Panhandle; Milwaukee, WI; the This program has been in existence, licate healthy start model projects that have Mississippi Delta; Richmond, VA; and has been a success, and there has been been determined by the Secretary of Health Savannah, GA. no denial by the managers that it is in and Human Services to be successful. The plan is to expand these projects existence and has been a success. It is Mr. SPECTER. Mr. President, this is from the 17 projects which are now— hardly the kind of program which is an amendment which provides for reau- from the 22 projects which are now in going to require additional hearings. It thorization of Healthy Start. This existence, to an additional 35 projects. seems to me that it is right for disposi- amendment would reauthorize the Mr. President, I think the value of tion. That is why I am offering the Healthy Start program for an addi- this program is apparent on its face. It amendment. tional 5 years at $100 million a year. It has been in existence for 5 years. It has The PRESIDING OFFICER. Is there is important that the reauthorization been very successful and does not en- further debate on the amendment? occur on this bill because, given the cumber or impede this bill in any way. Mrs. KASSEBAUM. Mr. President, I Senate calendar, it is highly doubtful It is a little hard to understand why stated the reasons why we have an ob- that this issue will be raised on any it is not accepted, but I think it ought jection. It is a program that has had other bill. to command the attention of this some success. That is very true. And In my capacity as Chairman of the House and the House of Representa- healthy start is very important. It is Appropriations Subcommittee for tives. And I urge its adoption. part of other programs in the public Health and Human Services, I can say The PRESIDING OFFICER. Is there health sector to which that is directed. with some authority that we need the further debate? As I say, I think it should be really reauthorization so that we are prepared Mr. SPECTER. Mr. President, I ask viewed in oversight so we can analyze to make the appropriate appropria- for the yeas and nays. what is being done and what should be tions. The PRESIDING OFFICER. Is there a done. I just feel strongly that in this Healthy Start is a program which is sufficient second? instance it needs to be handled through designed to provide prenatal care to in- There is a sufficient second. the authorizing process rather than an fants. I saw my first 1-pound baby more The yeas and nays were ordered. amendment. than a decade ago at the Alma Ellery Mrs. KASSEBAUM. Mr. President, is The PRESIDING OFFICER. For clar- Clinic in Pittsburgh and, at that time, the Senator from Pennsylvania going ification, there is no unanimous con- I saw a baby about as big as my hand, to offer a second-degree amendment at sent to stack the votes at this time. So weighing a pound. Some babies weigh this time? the pending business is the amendment as little as 12 ounces, and they are Mr. SPECTER. I am not. of the Senator from Pennsylvania. human tragedies, carrying scars for a Mrs. KASSEBAUM. Is the Senator Mrs. KASSEBAUM. Mr. President, lifetime, and they are very expensive going to wait until quarter of 10 to just so I understand, I thought the ma- for our society, costing as much as speak on that? We are stacking the jority leader asked that votes would be $250,000 each. votes. stacked until 9:45. Did I misunder- In my position on the Appropriations Mr. SPECTER. I understand we are stand? Committee, I worked to start this pro- stacking the votes. At this time I am The PRESIDING OFFICER. My un- gram of Healthy Start, and it has had offering this amendment and speaking derstanding is that it was not posed as a really remarkable success. It has about this amendment. a unanimous consent request. been in existence for 5 years, which is Mr. HARKIN addressed the Chair. Mr. DOLE. I now make that request. a relatively short period of time. But The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Is there we already have statistics available ator from Iowa. objection? that show the success of the program. Mr. HARKIN. I understand the floor Without objection, it is so ordered. The 1994 statistics received from the is open for amendments. Mr. HARKIN addressed the Chair. projects demonstrated that from 1984 The PRESIDING OFFICER. There is The PRESIDING OFFICER. The Sen- to 1988, baseline statistics in Philadel- a pending amendment which needs to ator from Iowa is recognized. phia show that infant mortality had be set aside by unanimous consent. AMENDMENT NO. 3683 TO THE COMMITTEE decreased some 28 percent. In Pitts- Mr. HARKIN. I understand, if I am SUBSTITUTE, AS AMENDED BY NO. 3675 burgh, the infant mortality rate de- not mistaken, that we are going to (Purpose: To reduce health care fraud, waste, creased 20 percent since the start of the stack these votes. Is the Senator get- and abuse) Healthy Start Program in 1993. ting a vote right now under the regular Mr. HARKIN. Mr. President, I send The Maternal and Child Health Bu- order? The yeas and nays were ordered. an amendment to the desk. reau reports that for the State of New Mr. SPECTER. As I understand it, we The PRESIDING OFFICER. The York, between 1990 and 1994, infant are stacking the amendments. But I clerk will report. mortality rates decreased by 38 percent am not prepared to set the amendment The bill clerk read as follows: in the Healthy Start project area, com- aside at this point. I would like to see The Senator from Iowa [Mr. HARKIN], for pared to a 22 percent decline citywide. if the managers have contrary argu- himself and Mr. BAUCUS, proposes an amend- Without going into any greater dem- ment. ment numbered 3683. onstration of statistics, Mr. President, Mrs. KASSEBAUM. Mr. President, Mr. HARKIN. Mr. President, I ask I think it is apparent that Healthy yes. This is not acceptable. The reason unanimous consent that reading of the Start is an important program. Dr. is that it is authorizing legislation amendment be dispensed with. Koop commented that with these mini- which I believe needs to come through The PRESIDING OFFICER. Without mal four prenatal visits, women carry- committee and the committee proce- objection, it is so ordered. ing children would not give birth to dure before we would authorize this on (The text of the amendment is print- low-birthweight babies. It, obviously, this bill regarding health insurance reed in today’s RECORD under ‘‘Amend- has been a very important program. It form. ments Submitted.’’) exists in some 22 cities at the present That would be the objection of the Mr. HARKIN. Mr. President, this is time: Boston; New York; Philadelphia; managers of the bill. offered on behalf of myself and Senator Pittsburgh; Baltimore; Washington, Mr. SPECTER addressed the Chair. BAUCUS. the DCPD region; South Carolina; Bir- The PRESIDING OFFICER. The Sen- Mr. President, this amendment deals mingham, AL; Cleveland, OH. I read ator from Pennsylvania is recognized. with the continuing problem of waste, S3594 CONGRESSIONAL RECORD — SENATE April 18, 1996 fraud, and abuse in the Medicare sys- Well, as Shirley later told me, ‘‘I got First, this would provide for im- tem. Over the last several years we so mad because I knew somebody’s got proved information to seniors to allow have had numerous IG investigations, to pay it. Obviously taxpayers or peo- them to better help in the fight against reports, GAO investigations, and GAO ple paying into Medicare are paying for Medicare fraud, waste, and abuse. Sen- reports. The data is overwhelming. No it. Someone is paying for it. I know we iors would be guaranteed the right to one can dispute the findings. The Di- didn’t receive $5,000 in bandages, and I receive itemized bills instead of a sum- rector of HCFA himself has testified want to do something about it.’’ marized report from which it may be before the Labor, Health and Human So she contacted my office, and we difficult to detect billing errors or Services Appropriations Subcommittee worked it through and found out, in- abuses. Every Medicare payment state- as to the validity of these findings. No deed, that she was absolutely right. ment would also have to include a toll- one disputes that there is tremendous Her mother-in-law had never received free hotline number to report suspected waste, fraud, and abuse in Medicare. $5,000 in bandages—maybe $500 worth cases of fraud, waste, or abuse. The GAO has estimated that up to 10 but not $5,000, and yet the bill was Now, to those who may say this is a percent of Medicare funds are lost to paid. The bill was just paid as if noth- burden, let me just point out that waste, fraud, and abuse every year. ing had happened. those who are sending in the bills have Out of a $180 billion program, 10 per- So we know this is going on. And like to keep an itemized record. But when cent, that is up to $18 billion lost to I said, you can ask any person in a they send it to the beneficiary, they waste, fraud, and abuse. That is $500 town meeting about this, especially can just summarize it. So the bene- per beneficiary per year. those who have been in Medicare, and ficiary can look at it, and a lot of I know that we are not going to be they will tell you that they know what times not even know what they are able to get all of it out. I understand we are talking about, too. paying for and a lot of times Medicare that. But at least we can make some So I am offering this amendment to does not know what it is paying for. important strides in saving a lot of this add what I believe are a few more im- They just pay it, but they really do not money. The amendment that was portant commonsense weapons in this know what the itemized bill is. adopted earlier—the Dole-Roth amend- fight against waste and abuse. The reason I know that you can go ment—had some provisions in it to Now, I will for the benefit of my col- back and find the itemized bills is that combat fraud and abuse that I have leagues state at the outset that there the investigations we have done by the pushed and supported for a long time, is one provision I have been pushing for General Accounting Office have gone including increased resources for the for some time that I do not have in this after some of these summarized bills, HHS Inspector General and increased amendment because I know there is op- gone back to the claimant, back to the resources for Medicare contractors to position to it on the floor. I have of- hospital or the nursing home or the fight fraud and abuse, and tougher pen- fered it before. And that is the idea of doctor or whoever it might be and said, alties for fraudulent activities. These competitive bidding. I am not offering OK, what made up this summarized were in the amendment adopted. that as part of this package because I statement? Well, they had to produce I say that these are positive and long know they want to get the bill overdue steps. As I said, they are steps the itemized bill so that the General through, and I am for this bill; I am a Accounting Office could look at it. So that I have pushed and promoted for cosponsor of it. I wish to get it years. However, they are inadequate. they do have that itemized bill. I am through. But, obviously, unbelievable There is much, much more that needs saying it is no more of a problem for as it may seem to me and to others, to be done and can be done right now them just to print that out on the bill there are some who do not believe that to really make a dent in the massive they send to Medicare. This amend- Medicare should adopt competitive bid- amounts of waste and abuse in the sys- ment would guarantee seniors that ding when it comes to medical supplies tem. they could get an itemized bill so that Mr. President, every time I go to so that seniors and the taxpayers get they know exactly what they were town meetings in Iowa and I meet with the best price possible. being charged for and how much they So I did not include it. I took it out the elderly—or just basically anyone were being charged for it. And, as I that has been involved in the Medicare because I know that that some have said, it would also require Medicare to system, like people who have had par- said it’s too controversial. But I am put on each explanation of Medicare ents or grandparents who have received going to be offering that again to get benefits a toll-free hotline number so Medicare help and assistance—when- us to competitive bidding, just like the that a person could report any sus- ever you talk about waste and abuse Veterans Administration has been pected case of fraud or abuse. you get an immediate response. They doing for years. It’s an outrage Medi- That is the first part of my amend- know it exists all too well. When you care is losing millions because its payment. The second part of my amend- talk about looking at their bills and ment system is prone to abuse and ment establishes rewards of up to ask if they ever look at a bill and see waste. Over a period of years I’ve com- $10,000 for those providing information an item on there that they did not pared like bills, like items between that leads to a health care fraud con- really think they received, or maybe Medicare and the Veterans Administra- viction. Again, it is to get people to paid too much for—you watch the tion, same city, same supplier. Medi- step forward, to provide the informa- heads nod—they all have, and they are care is often paying 30 to 50 percent tion that we need, and if it leads to a outraged about it. But what they will more than what the Veterans Adminis- health care fraud conviction they show you is they will hold up the form tration is. Why is that? Because the would be entitled to a reward up to that they got from Medicare, and it Veterans Administration engages in $10,000. will have stamped on the front of it, competitive bidding and Medicare does The third part of my amendment pro- ‘‘This is not a bill.’’ not. But as I said, I have not included hibits Medicare payments for wasteful A couple of years ago a woman by the that in this amendment. I wanted to and unnecessary items such as sports name of Shirley Pollock from Atlantic, make that clear. cars for corporate executives, lucrative IA, got hold of me. She had received All of the provisions in this amend- gifts to executive families and friends, one of these for her mother-in-law who ment that I have offered are the result tickets to sporting and other enter- had been in a nursing home. of extensive hearings held by the tainment events, and other items not For something short of 5 weeks’ Labor, Health and Human Services Ap- related to medical care. time, she was billed over $5,000 for ban- propriations Subcommittee over the In one of the most infuriating cases dages. She was outraged, because she past several years. They are all rec- of abuse we found that health care ex- knew there was no way her mother-in- ommendations of the General Account- ecutives were padding Medicare bills law had used that many bandages. But ing Office, the inspector general of the with all sorts of outrageous items iden- on the front it said, ‘‘This is not a Department of Health and Human tified as indirect costs. For example, bill.’’ So Shirley Pollock complained to Services or other private sector medi- we found the following items charged the Medicare payor about this and was cal experts. All of them are common- to Medicare: $2,433 for a trip to Italy to told: Do not worry about it. You do not sense steps, and I just want to review inspect a piece of sculpture; $10,215 have to pay it anyway. very briefly what they are. billed to Medicare for clocks, watches, April 18, 1996 CONGRESSIONAL RECORD — SENATE S3595 and bowls for employees and friends; they are being asked to pay for on behalf of care experts have said are necessary to thousands of dollars for a golf tour- beneficiaries. The claims submitted by pro- at least stem this tremendous hemor- nament that was only held for execu- viders have no detailed information that rhaging of waste and abuse that we tives; a $4,200 bill for a sporting event, would allow fiscal intermediaries to assess have in Medicare. When you are talk- the claims’ reasonableness. This lack of de- all billed to Medicare as indirect costs. tail exists because HCFA guidance allows ing about up to $18 billion a year, even That is outrageous. providers to bill all medical supplies under 10 if we cannot get all of it, if we could Now, Medicare did take one step broad codes. Billed items are not listed by just get half of it, that is $9 billion a after I prodded them at hearings. No type or amount. A code frequently used to year. That is a lot of money. I see no longer will they pay for alcohol or for record medical supplies is code 270, that is reason why we could not get at least lobbying expenses as indirect costs. medical/surgical supplies, which we found in- half of it with these modest steps that Well, that was a good first step, but cluded many different items such as a $21,437 I am proposing here. they still have not specifically ex- pacemaker, a 75 cent sterile sponge, and even As I said, I did not include the one on daily rental charges of $59 for an aqua pad. cluded these other items. My amend- competitive bidding. We will revisit Consequently, unless fiscal intermediaries that at another time. But I thought in ment would change that. identify these claims for review and request Next, my amendment says that we additional documentation before payment, the spirit of moving this legislation would reduce Medicare waste by giving they will pay for the claims without know- along and offering something that I the private companies that administer ing what the specific purchase was or wheth- thought was modest, that would move Medicare the authority to reduce payer it was covered or medically necessary. us in the right direction, that is why I ments for items they identify as gross- Again, my amendment would address took out competitive bidding. ly overpriced. Currently this can only that and allow them to get that nec- I offer this amendment to enhance be done on a national basis by HCFA essary information so that they would this bill and hopefully make it a better and has only been done once, a process know exactly what they were paying bill for health care in America. That is that took HCFA 3 years. for. That change was recommended and what this bill is about, is to help us in I am familiar with that because I ini- drafted by the General Accounting Of- health care reform. You cannot have tiated it several years ago. We found a fice. real health care reform until you stop blood glucose monitor, a little device Next, my amendment would require the waste, fraud and abuse in Medicare. that you can buy at Kmart or any dis- Medicare to replace its outdated com- It is in that spirit I offer this amend- count store; it is for people who have puter systems with state-of-the-art pri- ment. diabetes. They can get an accurate vate sector computer software to de- I thank the Senator from Montana check on what their blood glucose level tect and stop billing abuse. The Gen- for his strong support over the years, is. It is a little pocket device with a eral Accounting Office found that this trying to weed out this waste, fraud battery in it. We found that Medicare simple change would save about $600 and abuse in Medicare. He has been a was reimbursing up to $200 for each one million a year. Again, this provision leader on this subject. I am happy to of those. I sent my staff down to the carries out their recommended changes have him as a cosponsor on this amendment. local Kmart. They bought one for to save seniors and taxpayers money. I yield the floor. GAO found, in fact, that a number of $49.99—50 bucks. Medicare was reim- The PRESIDING OFFICER. The Sen- bursing up to $200 for it. the private companies that process ator from Montana. So I went to Medicare, to HCFA. I Medicare claims use the more sophisti- Mr. BAUCUS. Mr. President, I hope said, ‘‘Okay, we have to stop it. You cated computer software on their pri- my colleagues listened very closely to can go down and buy it for 50 bucks. vate sector business but are not al- the Senator from Iowa. The big debate Why are you paying $200?″ lowed to use it on their Medicare here is how to save Medicare. Senators Believe it or not, from that moment claims. They actually have to have two on one side of the aisle say we have to to the day that they actually reduced computer systems. They have their cut Medicare to save it. We had this big the price to $50 took 3 years—3 years own that they submit claims to. Then debate over whether we should cut $270 for them to do that. Well, this amend- they have another set that they have billion out of Medicare in the next 7 ment would give a private company to have and another set of software years. We spent a lot of time debating that administers Medicare the author- just for Medicare. this issue. Unfortunately, the majority ity to reduce payments on items that As I said, the General Accounting Of- Members in this body ended up decid- they identify as grossly overpriced. So fice said that just by making this one ing that, yes, we should cut that much if they found something like a blood change, this one change would save money out of Medicare over 7 years. I glucose monitor that they were reim- $600 million a year, and the cost for think every Member on this side of the bursing $200 for and they could buy it doing that was about $20 million. So, aisle voted against that. for 50 bucks, they could reduce the again, it would require Medicare to re- Obviously, if we are going to save price down themselves. Again, right place its computer systems with state- Medicare, we ought to first look at now, it takes HCFA over 3 years just to of-the-art private sector computer waste. It is clear there is waste in Med- do one simple thing like that. This is a technology, just what most private icare. We all know there is waste in change that has been praised both by companies are using today to detect Medicare. The General Accounting Of- Medicare and the HHS Inspector Gen- and stop billing abuse. As the GAO fice has documented the waste. The eral. said, the private sector ones were so Senator from Iowa has listed all the Next, my amendment would better much better at detecting fraud and Federal agencies that documented the assure that rapidly growing home abuse than the Medicare ones were. We millions of dollars lost to waste. Each health services are not subject to abuse have been after Medicare. They say of us, at home, talks to senior citizens, by requiring that Medicare payments they are going to do this; maybe by the to providers and others who, on an an- are not inflated by bills being filed in a end of 1999 they might have it changed. ecdotal basis, tell us about waste in higher payment area outside of where We could change it right now and, as Medicare. We all know there is waste the service was provided, by establish- GAO said, save up to $600 million a in Medicare. ing a fine for knowingly providing a year. We also know it takes a long time to false certification that a patient meets Last, my amendment saves money get something done around here, way Medicare home health coverage cri- and reduces hassle by cutting excessive too long. Too many times we debate is- teria and by requiring that bills sub- Medicare and Medicaid paperwork. sues, not months but years. It takes mitted for surgical dressings are item- There would be a uniform application way too long to get something mean- ized. and benefit claims form that would be ingful accomplished around here. I I will just read a little bit from this established and would eliminate dupli- think tonight we are debating a very GAO report that covered excessive pay- cative forms. important bill. We are going to pass ments for medical supplies. Here is Mr. President, these are really mod- this bill, hopefully tonight, that will what happens. It says: est steps. Again, these are all steps take solid steps to provide better insur- Fiscal intermediaries pay medical supply that the GAO, the inspector general’s ance coverage for millions of Ameri- claims without knowing specifically what office, and other private sector health cans and thousands of Montanans. This S3596 CONGRESSIONAL RECORD — SENATE April 18, 1996 is important and I strongly support It is an important issue, and the very they are not without controversy. If this bill. At the same time, we have the things that Senator HARKIN raised are our objective is to pass the Kassebaum- chance to take the steps necessary to issues Senator COHEN raised. But there Kennedy bill because we want to see cut some of the waste in Medicare. have also been some concerns, and we legislation that guarantees access, af- Tonight, let us pass this amendment. have to be careful, if there are some fordability and portability, it seems to It is not perfect. There will be a lot of problems, to see if we cannot get them me the best thing we can do is stay opportunities to work with it, during worked out or else it poses a problem with the legislation we adopted. That the conference committee, but let us for the underlying bill. is why it was included in the leadership get started. Let us pass this. We all I yield time to the Senator from amendment. know we should. Let us just do it. It Maine. So we have adopted it on several oc- might not be perfect, but we should not Mr. KENNEDY. Mr. President, I won- casions. There may be some merit to let perfection be the enemy of the der if we can possibly get a time under- Senator Harkin’s proposal, but I think good. Every Senator here tonight standing. We have several Members because of the items that are in con- knows that this is a good amendment. here. I know people want to address troversy, it is only going to jeopardize We all know it is on the right track. I, this, and Senator COHEN wants to the legislation. I believe the fraud and for the life of me, do not understand speak on it. I am wondering if the pro- abuse provisions we have adopted are why we just do not accept it tonight, ponents of the amendment are willing an enormous step forward. CBO has work on it in the conference commit- to agree to a time limit. scored the amendment we adopted as tee, maybe fix it up a little bit, get it Mrs. KASSEBAUM. There is very lit- saving some $3 billion, and that is enacted into law, and begin to attack a tle time we need, Mr. President. My going to pay for a number of items in lot of the waste that exists in Medi- guess is, if Senator COHEN says 5 min- the bill itself. care. utes, that is fine. So, Mr. President, I hope that my I hope Senators listened to the exam- Mrs. BOXER. I am sorry, this is a colleagues, when the appropriate time ples the Senator gave tonight. There time agreement? comes, will move to table the Harkin are many more. They are outrageous— Mr. KENNEDY. Just with regard to amendment, that we will enjoy the trips to Italy, sports cars. You would the Harkin amendment, can we agree support of our colleagues, because I be- be amazed what waste, fraud, and that there be 10 minutes evenly di- lieve the Harkin amendment does raise abuse occurs in our Medicare program. vided? I ask unanimous consent that controversial issues, and the last thing It is outrageous. So, let us begin to do there be 10 minutes equally divided. we need at this time is more con- something about it; just begin. We The PRESIDING OFFICER. Without troversy on this bill. heard the figures. GAO says up to 10 objection, it is so ordered. Mr. KENNEDY. I yield myself 2 min- percent. That is $18 billion. The Senator from Maine. utes. Let us be honest, we are not going to Mr. COHEN. Mr. President, if I can be Mr. President, I have worked very get a full $18 billion recovered. We as brief as I can within the 5-minute closely with the Senator from Iowa, know that. But, as the Senator from limitation, the fraud and abuse provi- and I admire all of his extraordinary Iowa says, let us at least make a start. sions that we adopted in the leadership work in all of this area. I think it is Let us not say we are not going to do amendment is something that I have very commendable, and I do not think it tonight because we have a no-amend- worked on now for over 3 years. It we have really ensured that a number ments policy. We have already adopted passed both the House and the Senate of the recommendations have been en- one amendment, and another one, al- last year as part of the budget rec- acted. So I am, again, very sympa- ready tonight. Certainly this is in the onciliation act. It was included in the thetic and supportive of the concept. This is a matter really for the Fi- category of amendments that we know administration’s budget reconciliation nance Committee, and there has been should be passed. Otherwise, we run the proposal. an objection raised on that vote in sup- risk that nothing will happen to fight So the legislation we have passed and port of tabling the amendment. But I fraud and abuse in the Medicare pro- adopted is something that has been give assurances to the Senator, as a gram this year. completely vetted; it has been nego- What is going to happen next year? member of the conference and given tiated through a lengthy process; it has We do not know, as we attempt to ad- the fact the whole issue of fraud will be been through the hearing process; it dress the waste that exists in Medicare. a matter of conference, I will do the I am not going to belabor the issue. has been on the floor on several occa- best I can to see that we are able to in- It is getting late tonight. The Senator sions—in fact, numerous times. clude some of those measures in the from Iowa has listed all the various Additionally, it has received the en- conference. That is the best at least I provisions of his amendment. I just dorsement of the administration, the can do, but I admire his work and look hope we can leave the partisan fighting Attorney General, Secretary of Health forward to joining with him on another and political rhetoric behind and do and Human Services, the Finance Com- occasion. something which we know the people mittee of the House and Senate, as well Mr. HARKIN addressed the Chair. at home whom we represent want. Let as many private groups. The Harkin The PRESIDING OFFICER. The Sen- us begin to take some very critical and legislation has not gone through any ator from Iowa is recognized. concrete steps to address the waste and such review or scrubbing; it has not re- Mr. HARKIN. Mr. President, I appre- fraud that does exist in Medicare. That ceived these endorsements, to my ciate Senator KENNEDY’s comments, is where we should begin, rather than knowledge. In fact, I am sure we do not and I hope we can get some of these just cutting Medicare. First, let us cut know of all the objections to his provi- adopted in conference. I say, again, I the waste out of Medicare and the sions. I do believe that there are sev- appreciate what the Senator from fraud out of Medicare before we cut eral that are the subject of con- Maine has done over the last few years. Medicare services and programs that troversy. He has done a great job of going after help millions of seniors nationwide. I am not here to argue the merits of these issues of waste and abuse. I have I yield the floor. each of the items I am about to raise, no major objections to what was adopt- The PRESIDING OFFICER. The Sen- but I know that both Health and ed earlier. Overall, I think it is a great ator from Kansas, the majority man- Human Services and HCFA, the Health step in the right direction. ager, is recognized. Care Financing Administration, object We probably have been working along Mrs. KASSEBAUM. Mr. President, I to the section that requires HCFA to parallel paths. I am on the Appropria- am speaking somewhat on behalf of acquire commercial software tech- tions Committee and the Senator is on Senator COHEN from Maine. He has nology for Medicare claims processing. another committee, but I first started worked many years on this issue, and I know HCFA has concerns with the having hearings on this 6 years ago, so has worked with Senator HARKIN as Harkin section that requires Medicare we have been working on parallel well, trying to address the issues of payments for certain items. tracks. I do not think there is any need fraud and abuse. Again, I am not here to argue the to debate that. The language that Senator COHEN merits of these particular items to- I was just saying I do not know that had worked on is now part of the bill. night. I merely say to my colleagues, it is necessary before we pass anything April 18, 1996 CONGRESSIONAL RECORD — SENATE S3597 around here that we have to have the aside. What we had tried to do before is ‘‘(k)(1) In the case of a request by an inter- approval of the administration. I find have the few amendments that we have ested State agency or by an interested Unit- that kind of an odd concept at this here incorporated. ed States Government agency for a waiver of time in the Senate that we have to But I am reminded by my chairman the two-year foreign residence requirement that we had one over here and that it under section 212(e) with respect to an alien have that kind of approval. We are the described in clause (iii) of that section, the legislative branch. would be reasonable and fair to do one Attorney General shall not grant such waiv- I point out that every single item I over there, and then we would come er unless— just mentioned has gone through a back to try and do all three of these ‘‘(A) in the case of an alien who is other- process of hearings. We have had nu- here. wise contractually obligated to return to a merous hearings on this. We have had Mr. CONRAD. I wonder if we can get foreign country, the government of such the approval of the inspector general’s at least an order that would be accept- country furnishes the Director of the United office and the GAO. able so that those of us who have been States Information Agency with a statement The Senator from Maine did mention waiting for an extended period might in writing that it has no objection to such one item. Out of all of these, there is get a timeframe so that we will not waiver; and only one item that HCFA opposes, and ‘‘(B)(i) in the case of a request by an inter- just be waiting around and then find ested State agency— that is the provision in there that man- the list somehow gets altered and we ‘‘(I) the alien demonstrates a bona fide dates they use state-of-the-art com- wait some more. offer of full-time employment, agrees to puter technology. That is because Mr. KENNEDY. I was prepared to ac- begin employment with the health facility HCFA has been trying to develop its cept Senator CONRAD’s amendment. It or organization named in the waiver applica- own. I have had some pretty fair bat- is going to take a minute. tion within 90 days of receiving such waiver, tles with HCFA on this. I guarantee the Mr. KASSEBAUM. We are accepting and agrees to work for a total of not less Senator from Maine is right that they it. So if the Senator wants to proceed— than three years (unless the Attorney Gen- eral determines that extenuating cir- do not want that provision. Senator COATS has been waiting too, I am going to tell you they are cumstances exist, such as closure of the fa- but that is fine. It is acceptable. cility or hardship to the alien would justify wrong. There is high quality computer Mr. KENNEDY. Mr. President, I a lesser period of time); and software out in the private sector that make a motion to table the Harkin ‘‘(II) the alien’s employment continues to Medicare can adopt right now. They amendment and ask for the yeas and benefit the public interest; or are wasting money developing their nays. ‘‘(ii) in the case of a request by an inter- own. And I’m afraid by the time that The PRESIDING OFFICER. Is there a ested United States Government agency— the system they are developing won’t sufficient second? There is sufficient ‘‘(I) the alien demonstrates a bona fide solve the problem. The GAO study and second. offer of full-time employment that has been The yeas and nays were ordered. found to be in the public interest, agrees to investigation showed that. I have had begin employment with the health facility Medicare intermediaries say that they Mr. KENNEDY. Mr. President, I ask or organization named in the waiver applica- have the software that Medicare could that the Harkin amendment be tempo- tion within 90 days of receiving such waiver, adopt, and, in fact, I say to the Senator rarily set aside. and agrees to work for a total of not less from Maine that Medicare did adopt The PRESIDING OFFICER. Without than three years (unless the Attorney Gen- some changes of the type I’ve advo- objection, it is so ordered. eral determines that extenuating cir- cated in January of this year. They AMENDMENT NO. 3684 cumstances exist, such as closure of the fa- adopted a little bit of it. It will save (Purpose: To extend State requested waivers cility or hardship to the alien would justify a lesser period of time); and some money, but much more could be of the foreign country residence requirement with respect to international medical ‘‘(II) the alien’s employment continues to saved. benefit the public interest; Lastly, let me just say the amend- graduates, and for other purposes) Mr. CONRAD. Mr. President, I send ‘‘(C) in the case of a request by an inter- ment of the Senator from Maine does ested State agency, the alien agrees to prac- save $3 billion over 7 years. We do not an amendment to the desk and ask for tice medicine in accordance with paragraph have an estimate on how much this its immediate consideration. (2) for a total of not less than three years would save. All I know is, just on the The PRESIDING OFFICER. The only in the geographic area or areas which computer software alone, that was $600 clerk will report. are designated by the Secretary of Health The assistant legislative clerk read million in savings. I believe this and Human Services as having a shortage of as follows: health care professionals; and amendment would save much, much ‘‘(D) in the case of a request by an inter- more. The Senator from North Dakota [Mr. CONRAD] proposes amendment numbered 3684. ested State agency, the grant of such a waiv- Again, I do not see anything here er would not cause the number of waivers al- that is controversial but for that one Mr. CONRAD. Mr. President, I ask lotted for that State for that fiscal year to item where HCFA says they are op- unanimous consent that further read- exceed 20. posed to adopting private sector coming of the amendment be dispensed ‘‘(2)(A) Notwithstanding section 248(2) the puter technology. As I said every single with. Attorney General may change the status of item in this amendment is a direct rec- The PRESIDING OFFICER. Without an alien that qualifies under this subsection and section 212(e) to that of an alien de- ommendation from the Inspector Gen- objection, it is so ordered. The amendment is as follows: scribed in section 101(a)(15)(H)(i)(b). eral, the General Accounting Office or ‘‘(B) No person who has obtained a change other experts as effective methods to At the appropriate place in the bill, insert the following: of status under subparagraph (A) and who stop waste, fraud and abuse in Medi- has failed to fulfill the terms of the contract SEC. . WAIVER OF FOREIGN COUNTRY RESI- care. DENCE REQUIREMENT WITH RE- with the health facility or organization This should be a completely non- SPECT TO INTERNATIONAL MEDICAL named in the waiver application shall be eli- controversial amendment. I hope, GRADUATES. gible to apply for an immigrant visa, for per- again, as the Senator from Montana (a) EXTENSION OF WAIVER PROGRAM.—Sec- manent residence, or for any other change of said, that we will not get caught up in tion 220(c) of the Immigration and National- nonimmigrant status until it is established ity Technical Corrections Act of 1994 (8 that such person has resided and been phys- jurisdictions. ically present in the country of his national- Let us do what is right. What is right U.S.C. 1182 note) is amended by striking ‘‘June 1, 1996’’ and inserting ‘‘June 1, 2002’’. ity or his last residence for an aggregate of is to adopt this and start saving some (b) CONDITIONS ON FEDERALLY REQUESTED at least two years following departure from money in the Medicare system. The WAIVERS.—Section 212(e) of the Immigration the United States. amendment of the Senator from Maine and Nationality Act (8 U.S.C. 1184(e)) is ‘‘(3) Notwithstanding any other provi- is going to save some money. Darn amended by inserting after ‘‘except that in sions of this subsection, the two-year foreign right it is going to save some money. the case of a waiver requested by a State De- residence requirement under section 212(e) But we can save much more by adopt- partment of Public Health or its equivalent’’ shall apply with respect to an alien in clause ing these other provisions. the following: ‘‘or in the case of a waiver re- (iii) of that section who has not otherwise The PRESIDING OFFICER. The Sen- quested by an interested United States Gov- been accorded status under section ernment agency on behalf of an alien de- 101(a)(27)(H)— ator’s time has expired. The minority scribed in clause (iii)’’. ‘‘(A) in the case of a request by an inter- manager is recognized (c) RESTRICTIONS ON FEDERALLY REQUESTED ested State agency, if at any time the alien Mr. KENNEDY. I was going to make WAIVERS.—Section 214(k) (8 U.S.C. 1184(k)) is practices medicine in an area other than an the tabling motion and then set that amended to read as follows: area described in paragraph (1)(C); and S3598 CONGRESSIONAL RECORD — SENATE April 18, 1996 ‘‘(B) in the case of a request by an inter- often have little or no expertise in Mr. SIMON. Mr. President, I recog- ested United States Government agency, if health care issues. Once an agency does nize Senator COATS is going to have his at any time the alien engages in employment agree to participate, the word spreads amendment next. But Senator for a health facility or organization not quickly and soon that agency can be CONRAD’s point that we would like named in the waiver application.’’. flooded with thousands of waiver appli- some kind of knowledge as to what Mr. CONARD. Mr. President, this is cations from across the country. order we are going to come in here— very simple. It is an extension of the Because states can clearly determine some of us have been waiting a long popular J–1 visa program for 6 years. If their own health needs far better than time. And it will take a few minutes. I we fail to do this, the authority runs an agency in Washington, DC, my leg- wonder if there can be some agreement out June 1. Mr. President, the J–1 visa islation now allows states to go di- following the Coats amendment as to waiver permits each of our States to rectly to the USIA to request a waiver. who is going to be up here with their extend 20 waivers a year. And 21 of our It also is relieving some of the burden amendments. States have already done it. More are that participating federal agencies Mrs. KASSEBAUM. After the Coats interested in doing it. They will not have incurred in processing waiver ap- amendment there are only two amend- have a chance if the authority runs out plications. ments I know of at this point that will June 1. The Conrad State 20 Program is still require votes on this side, one is a Mr. President, the amendment I am very new, and not every state has yet Gramm amendment and, I believe, per- sponsoring would extend what has be- elected to use it. But the program is haps a Burns amendment. come known by some as the ‘‘Conrad beginning to work exactly as I had Mr. KENNEDY. Mr. President, I ask State 20 Program.’’ In 1994, I added a hoped. At least 21 States have reported Senator COATS, how long does he ex- provision to the visa extension bill using it to obtain waivers. More states pect to take? that allows state health departments are expected to participate in the com- Mr. COATS. There are one or two or their equivalents to participate in ing months. Unfortunately, the Conrad people that may want to speak on it. the process of obtaining J–1 visa waiv- State 20 program is scheduled to sunset They are not on the floor. I do not in- ers. This process allows a foreign medi- on June 1, 1996, unless Congress ap- tend to take all that long, 15 minutes cal graduate (FMG) who has secured proves an extension. The amendment I or so, 10, 15 minutes. employment in the United States to am offering would extend the program Mr. KENNEDY. All right. The Sen- waive the J–1 visa program’s 2 year for 6 more years. This is not a perma- ator from Illinois was just trying to residency requirement. nent extension. The amendment would get through this. He has been here and As a condition of the J–1 visa, FMGs sunset the program on June 1, 2002. has been prepared, and Senator BOXER. My amendment also puts new restric- must return to their home countries I ask unanimous consent that at the tions and conditions on FMGs who use for at least 2 years after their visas ex- conclusion of the consideration of Sen- the federal program. As a condition of pire before being eligible to return. ator COATS’ amendment, Senator using the Conrad State 20 program to However, if the home countries do not BOXER be recognized, and at the con- acquire a waiver, FMGs must contract object, FMGs can follow a waiver proc- clusion of Senator BOXER, Senator to work for their original employer for ess that allows them to remain and SIMON be recognized. at least 3 years. Otherwise, their waiv- work here in a designated health pro- The PRESIDING OFFICER. Without er will be revoked and they will be sub- fessional shortage area or medically objection, it is so ordered. ject to deportation. My amendment underserved area. Before my legisla- Mr. KENNEDY. Could we get a time, would apply the same 3-year contraction became law, that process exclu- for the benefit of our colleagues here? tual obligation for those who obtain a sively involved finding an ‘‘interested Could we set a time for the Senator’s federal agency’’ to recommend to the waiver through the Federal program. We all know that State amendment? United States Information Agency Mr. COATS. Well, it is difficult for (USIA) that waiving the 2 year require- empowerment has been a major issue of the 104th Congress. The Conrad State me to determine how much opposition ment was in the public interest. The there will be to this amendment. law now allows each State health de- 20 Program is one way of giving States more control over their health care Mr. KENNEDY. I think the opposi- partment or its equivalent to make tion will not take very much time. We this recommendation to the USIA for needs. States that are using the program want to keep it operating for a would request maybe 4 minutes for the up to 20 waivers per year. opposition. This law as necessary for several rea- few more years. They understand that this program does not take away jobs Mr. COATS. I think we can do this sons. Despite an abundance of physi- from American doctors, but instead is then in a total of 15 minutes equally di- cians in some areas of the country, one more valuable tool to help serve vided. other areas, especially rural and inner the health care needs of rural and inner Mr. KENNEDY. Mr. President, I ask city areas, have had an exceedingly city citizens. The Senate passed my unanimous consent that there be an al- hard time recruiting Americans doc- original legislation with strong biparti- location of 20 minutes, 15 minutes for tors. Many health facilities have had san support. I am hopeful the Senate the Senator from Indiana, and 5 min- no other choice but turn to FMGs to will agree that creating the Conrad utes for this Senator. fill their primary care needs. Unfortu- State 20 program was very worthwhile, The PRESIDING OFFICER. Without nately, obtaining J–1 visa waivers for and will agree to accept this modest, 6- objection, it is so ordered. qualified FMGs through the federal year extension. Mr. COATS addressed the Chair. program is a long and bureaucratic I hope we can accept this amend- The PRESIDING OFFICER. The Sen- process that not only requires the par- ment. ator from Indiana is recognized. ticipation of the ‘‘interested federal Mr. KENNEDY. Mr. President, we Mr. COATS. I thank the Chair. agency’’ but also requires approval have talked to the chairman of the Im- Mr. KENNEDY. Mr. President, I ask from both the USIA and the Immigra- migration Committee, Senator SIMP- unanimous consent that we vitiate tion and Naturalization Service. SON. And I, as the ranking minority that unanimous consent request until I Finding a federal agency to cooperate member on that committee, say this get agreement on our side. is difficult enough, considering that makes sense. It is targeting doctors in The PRESIDING OFFICER. Without the Department of Health and Human underserved areas. We welcome this. objection, it is so ordered. The request Services does not participate. States This is effective. It is time sensitive in is vitiated. who are not members of the Appalach- terms of the reauthorization. We urge AMENDMENT NO. 3685 ian Regional Commission, which is eli- the adoption of the amendment. (Purpose: To encourage the provision of med- gible to approve its own waivers, have The PRESIDING OFFICER. Is there ical services in medically underserved had to enlist any agency that is willing further debate? communities by extending Federal liabil- to take on these additional duties. The question occurs on agreeing to ity coverage to medical volunteers) These agencies, such as the Depart- the amendment. Mr. COATS. Mr. President, I send an ment of Agriculture or the Department The amendment (No. 3684) was agreed amendment to the desk and ask for its of Housing and Urban Development, to. immediate consideration. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3599 The PRESIDING OFFICER. The Mr. COATS. Mr. President, the are not necessarily practicing on a full- clerk will report. amendment I offer extends the Federal time basis. But we want to encourage The assistant legislative clerk read tort claim coverage to a health care these individuals—as many of them al- as follows: professional if that health care profes- ready do—to engage in providing medi- The Senator from Indiana [Mr. COATS] pro- sional volunteers his or her medical cal services. poses amendment numbered 3685. services to a medically underserved I think the amendment is pretty Mr. COATS. Mr. President, I ask person. This is the same type of cov- straightforward. There has been a ques- unanimous consent that further read- erage—this is not new. We are not tion about the cost. It is interesting to ing of the amendment be dispensed breaking new ground here. We extend note that when we provided this liabil- with. that same type of Federal tort cov- ity coverage for community health The PRESIDING OFFICER. Without erage for medical services provided in centers, the Congress set aside $10 mil- objection, it is so ordered. Indian health care facilities, in Federal lion a year to cover potential liability The amendment is as follows: community, migrant, homeless, and costs. It is important to note that none At the appropriate place in title III, insert public housing health centers. of this money has been used in the 2 the following new section: What I am attempting to do here is years that this has been in operation. SEC. . MEDICAL VOLUNTEERS. extend it to those volunteer efforts— (a) SHORT TITLE.—This title may be cited People receiving free health care as the ‘‘Medical Volunteer Act’’. not paid—but volunteer efforts on the from professional providers generally (b) TORT CLAIM IMMUNITY.— part of health care professionals if are very grateful for the care and obvi- (1) GENERAL RULE.—A health care profes- those medical services are provided to ously are not looking to sue, yet we sional who provides a health care service to people from underserved areas that are have protected their rights to do so if a medically underserved person without redeemed by the Secretary of Health and negligence occurs or if any liability oc- ceiving compensation for such health care Human Services as medically under- service, shall be regarded, for purposes of curs under the services. That is pro- any medical malpractice claim that may served or medically needy. vided. It just simply is that the cov- arise in connection with the provision of We have built into this significant erage comes under the Federal tort such service, as an employee of the Federal patient protection, indicating that the claims procedure rather than under the Government for purposes of the Federal tort patient must receive notice before pro- private insurance liability coverage of claims provisions in title 28, United States viding the care, and that the provider the medical provider. Code. has agreed not to charge the party for Again, the purpose here is to encour- (2) COMPENSATION.—For purposes of para- any health care that is provided, and graph (1), a health care professional shall be age the provision of free medical serv- deemed to have provided a health care serv- that the medical malpractice liability ices to people who either live in under- ice without compensation only if, prior to is shifted to the Federal Tort Claims served areas—and who of us do not rep- furnishing a health care service, the health Act. resent a State that has underserved care professional— We are not in any way limiting the areas—or to those people of such in- (A) agrees to furnish the health care serv- plaintiff’s right to receive compensa- come level that do not have insurance ice without charge to any person, including tion for negligence or for a successful or do not have the personal where- any health insurance plan or program under award in a suit. We are just simply which the recipient is covered; and withal to purchase the medical service shifting it from the provider’s insur- that is needed. (B) provides the recipient of the health ance coverage to the Federal Tort care service with adequate notice (as deter- This is widely supported. The Amer- Claims Act. The provider is deemed, for mined by the Secretary) of the limited liabil- ican Medical Association supports this, the purposes of providing that vol- ity of the health care professional with re- the Catholic Health Association, the untary service, an employee of the Fed- spect to the service. Christian Medical and Dental Society. (c) PREEMPTION.—The provisions of this eral Government and therefore covered Senators FRIST and KASSEBAUM have section shall preempt any State law to the under the act. extent that such law is inconsistent with The providers have to be licensed in been cosponsors of this bill. And it is such provisions. The provisions of this sec- the State in which the care is provided. supported by professionals throughout tion shall not preempt any State law that The care must be covered under Medic- our States and throughout our commu- provides greater incentives or protections to nities. a health care professional rendering a health aid in that State. In addition, the patient must receive the care in a health I have seen some marvelous examples care service. of efforts where community medical (d) DEFINITIONS.—For purposes of this sec- care facility that is substantially com- tion: parable in nature to the Federal mi- professionals gather together, provide (1) HEALTH CARE PROFESSIONAL.—The term grant and community health centers an acceptable clinic, volunteer their ‘‘health care professional’’ means a person that provide care to underserved popu- time and provide very needed services who, at the time the person provides a to people that need these free services health care service, is licensed or certified lations. This is the protection that is needed in order to ensure that the care in order to receive medical care. by the appropriate authorities for practice in I hope that our colleagues could sup- a State to furnish health care services. is provided in adequate facilities. So (2) HEALTH CARE SERVICE.—The term those facilities that are deemed by the port this amendment. I thought this ‘‘health care service’’ means any medical as- Secretary of Health and Human Serv- was something that we might be able sistance to the extent it is included in the ices as federally certified—if they are to work out. We were not able to do plan submitted under title XIX of the Social provided in substantially comparable that. I will address any questions that Security Act for the State in which the serv- facilities—the coverage will qualify. might be raised in opposition to this. I ice was provided. reserve the balance of my time. (3) MEDICALLY UNDERSERVED PERSON.—The What we are attempting to do here is term ‘‘medically underserved person’’ means to provide a way that medical person- Mr. KENNEDY. Mr. President, I yield a person who resides in— nel can provide medical services to myself 2 minutes. (A) a medically underserved area as de- people who otherwise cannot afford This idea is a good idea. As the au- fined for purposes of determining a medi- them, people who are uninsured but thor of the community health centers, cally underserved population under section where doctors and professionals and we had the Tort Claim Act covering all 330 of the Public Health Service Act (42 providers in the community come to- the medical personnel in there. Then U.S.C. 254c); or there was a downsizing of service corps, (B) a health professional shortage area as gether and volunteer their time. defined in section 332 of such Act (42 U.S.C. We all know the horrendous cost of we had other doctors that came in 254e); medical liability insurance. In many there, and we had an increase in the in- and who receives care in a health care facil- instances these medical providers can- surance costs for the neighborhood ity substantially comparable to any of those not pay or do not choose to pay the ad- health centers as a result of that. designated in the Federally Supported ditional liability cost. One of the pri- About 4 years ago, again, we worked Health Centers Assistance Act (42 U.S.C. 233 mary reasons for this is that many of out with the Treasury and the adminis- et seq.), as shall be determined in regula- these individuals are retired. They are tration an indemnification program for tions promulgated by the Secretary. (4) SECRETARY.—The term ‘‘Secretary’’ retired doctors or dentists or health those doctors in the neighborhood means the Secretary of the Department of care providers. So they do not have health centers. It has worked very Health and Human Services. umbrella liability policies because they well. The reason that has worked well S3600 CONGRESSIONAL RECORD — SENATE April 18, 1996 is because there is supervision and ac- sight in a program that does not need There is a sufficient second. countability at the neighborhood oversight. The yeas and nays were ordered on health centers. The PRESIDING OFFICER. Under the motion to table the Coats amend- That aspect is missing in this pro- the previous order the hour of 9:45 hav- ment. gram. That is why I will vote to table ing arrived the question is on agreeing The PRESIDING OFFICER. Under this measure. Then we will come back, to the Specter amendment No. 3682. the previous order, the Senator from one, on the issue of what the funding Mrs. KASSEBAUM. Mr. President, I California is recognized. level would be in terms of it; and sec- ask if we could delay this for 15 min- AMENDMENT NO. 3686 ond, whether an overall program can be utes. There are a couple more amend- Mrs. BOXER. Thank you very much, worked in terms of the accountability. ments that need to be offered. Mr. President. I would like to be ad- Without an accountability, without The PRESIDING OFFICER. Without vised when I have utilized 4 minutes some ideas of funding, this is not the objection, it is so ordered. and then I will wrap up my side of the place, the time. It is a good idea. Mrs. BOXER. Reserving the right to argument. I commit to working with my friend object, Mr. President, I do not wish to I send an amendment to the desk and from Indiana to try and see if we can- object, but I would like to know how ask for its immediate consideration as not make it a reality in the very near much time is left and what the order a sense of the Senate. future. will be. As I understand it, Senator The PRESIDING OFFICER. The Mr. COATS. Mr. President, I appre- KENNEDY mentioned I would go next, clerk will report. ciate the offer of the Senator from but if you are just going to finish ev- The assistant legislative clerk read Massachusetts to work with us on this. erything up in 15 minutes, that would as follows: leave virtually no time for Senator I hardly think this needs additional The Senator from California [Mrs. BOXER], work. SIMON and virtually no time for me. proposes an amendment numbered 3686. First of all, it is important to under- I am confused about whether we will The Senate finds that: stand that the bill itself addresses the continue after the vote, I guess is the Patients deserve to know the full range of issue that the Senator raised. In the point. I only wish to take 5 minutes on treatments available to them and, definition of ‘‘medically underserved my amendment. Patients should know if doctors receive bonuses for withholding treatment from them. person’’ it says the term ‘‘medically Mr. SPECTER. Mr. President, while we are doing the order here, I think it It is the sense of the Senate that Congress underserved person’’ means a person should thoughtfully examine these issues to who receives care in a health care fa- might be appropriate to spend just a ensure that all patients get the care they de- cility substantially comparable to any minute on a discussion which I had serve. with the distinguished manager, the of those designated in the federally- Mrs. BOXER. Mr. President, this is Senator from Kansas, talking about supported Health Centers Assistance such a straightforward and simple hearings before the Labor Committee, Act as shall be determined in regula- sense-of-the-Senate. It is rather shock- hopefully, by the end of May, looking tions promulgated by the Secretary. ing to me that Members on the other for reauthorization or authorization of The Secretary of Health and Human side of the aisle have objected to it. I the healthy start program. Services has a sufficient amount of have to thank the chairwoman of the Mrs. KASSEBAUM. Mr. President, I control by the promulgation of regula- committee and Senator KENNEDY, who wish the Senator from Pennsylvania tions to certify the types of facilities, were quite willing to accept such a might wait until we worked out the and there is accountability. sense-of-the-Senate resolution. I do not order here. If you feel that you need to have a know what Members oppose this. I can- Federal agency or a Federal supervisor Mr. SPECTER. I am glad to do that. Mrs. KASSEBAUM. I suggest at this not imagine why they have not identi- standing over the shoulder of a health point perhaps we could go an extra half fied themselves to me, Mr. President. I care professional, a doctor who might hour, which I think will then take care just hope that Members will read the be earning $200 or $300 an hour perform- of every amendment that is there to sense-of-the-Senate. ing services but who volunteers his everyone’s satisfaction. Let me tell you a little story about time for free, if you say we cannot The PRESIDING OFFICER. Without why it is so important. trust this person to provide adequate objection, it is so ordered. This is an L.A. Times story, entitled medical care, I think we are selling the Mrs. KASSEBAUM. I respond, if I ‘‘HMO ‘Gag Clauses’ on Doctors Spur medical profession very, very short and may, Mr. President, to the Senator Protests.’’ I will read just a few para- we are crediting the Government with from Indiana. I am a cosponsor, as a graphs: an ability to supervise that it does not matter of fact, of the Senator’s Medical The Santa Monica oncologist thought she have. Volunteer Act. I think it is a very posi- was being a strong advocate for her patient. We do not need a Government agency tive step forward. It encourages medi- In May, she referred the patient—a Los An- to oversee the efforts of nurses and cal voluntarism and brings some small geles woman in her forties, who was rapidly doctors who volunteer their time—vol- losing her battle with metastatic colon can- measure of relief to the current liabil- cer—to a Johns Hopkins University special- unteer their time—to provide needed ity system. There are objections that free medical services to underserved ist using an experimental drug that had have been raised to this on the Demo- proven effective with similar cancers. It was, and low-income individuals. Again, we cratic side, principally, and because of in the doctor’s view, perhaps the best chance are not limiting the liability of any- our need to try and get as strong a con- of extending the woman’s life. body that is served here. We are not sensus as possible for the underlying But the patient’s managed care group had saying they cannot bring a claim. We measure I have to object. a different view of the oncologist. It saw a are simply saying that claim, if At the appropriate time, after all de- doctor who said too much and broke the brought and if successfully brought, rules. She received a reproachful letter from bate is concluded, I would move to the managed care group, stating that the will be paid for under the Federal Tort table the amendment of the Senator Claims Act and not paid for under the Johns Hopkins specialist was not ‘‘in net- from Indiana. work’’ and that the patient should not have liability insurance of the professional. Mr. KENNEDY. As a matter of order, been referred there. Why do we need to do that? We need I think we request to conclude with ‘‘This occurrence,’’ the letter warned, ‘‘had to do that so we can encourage these Senator BOXER and Senator SIMON and been noted in the computer, and a future oc- people to provide the care. Why is it then come back to the other side. I currence may result in suspension of referral necessary for most? Because many of think that is what is the order. privilege or, in an extreme case, a rec- these people are retired and they are The PRESIDING OFFICER. Is there ommendation for termination.’’ not able or in a position to continue to further debate on the Coats amend- Mr. President, this is what is happen- pay the exorbitant medical liability in- ment? ing across the country in HMO’s. Doc- surance, sometimes running $50,000, Mrs. KASSEBAUM. If not, I ask for tors, who refer patients to specialists $60,000, or $80,000, depending on the spe- the yeas and nays and ask that the are being warned that they may be cialty, in order to cover themselves for amendment be set aside. fired. Doctors are receiving bonus pay- the volunteer service they get. The last The PRESIDING OFFICER. Is there a ments from the HMO’s for not giving thing we need is more Federal over- sufficient second? care to patients. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3601 Now, all I am asking in this sense-of- Mr. SIMON. Mr. President, I ask through the medicaid program, it is still the the-Senate is that we look into this. unanimous consent that reading of the only developed nation that does not ensure Already, we have looked into this in amendment be dispensed with. that all of its children and pregnant women have health care coverage. Medicare and, thank goodness, some- The PRESIDING OFFICER. Without (15) The United States should not accept a thing is being done. Last month, the objection, it is so ordered. status quo in which children in many neigh- Department of HHS announced a regu- The amendment is as follows: borhoods are more likely to have access to lation mandating that managed care At the appropriate place in the bill insert drugs and guns than to doctors, or accept a plans serving Medicare and Medicaid the following new section: status quo in which health care is ensured patients reveal any arrangements in SEC. . SENSE OF THE SENATE REGARDING ADE- for all prisoners but not for all children. (b) SENSE OF THE SENATE.—It is the sense which doctors may face financial pres- QUATE HEALTH CARE COVERAGE FOR ALL CHILDREN AND PREGNANT of the Senate that the issue of adequate sures to limit services or referrals to WOMEN. health care for our mothers and children is specialists. (a) FINDINGS.—The Senate finds the follow- important to the future of the United States, What about those who are not on ing: and in consideration of the importance of Medicare, who are not on Medicaid? Do (1) The health care coverage of mothers such issue, the Senate should pass health they not deserve the same protections, and children in the United States is unac- care legislation in the 105th Congress that at a minimum? Doctors across the ceptable, with more than 9,300,000 children will ensure health care coverage for all of the United States’s pregnant women and country are protesting managed care and 500,000 expectant mothers having no health insurance. children. companies’ practices that they contend (2) Among industrial nations, the United Mr. SIMON. Mr. President, all this impede their ability to have candid dis- States ranks 1st in wealth but 18th in infant does, very simply, is say it is the sense cussions with patients about treatment mortality, and 14th among such nations in of the Senate that in the next congres- options. maternal mortality. sional session, starting in 1997, the In this time of shifting health care (3) 22 percent of pregnant women do not 105th Congress pass health care legisla- needs and our attempt to restructure have prenatal care in the first trimester, and tion that protects pregnant women and the health care delivery system, we 22 percent of all poor children are uninsured, children. That is all it does. must not lose sight of the valuable doc- despite the medicaid program under title It is very interesting. Two years ago, XIX of the Social Security Act. tor-patient relationship. We should re- (4) Of the 1,100,000 net increase in unin- we were discussing health care legisla- vere it, we should honor it. We should sured persons from 1992 to 1993, 84 percent or tion, and virtually everyone in this not allow the HMO’s, because of the al- 922,500 were children. body, including the majority leader, mighty bottom line, to interfere in this (5) Since 1987, the number of children cov- said, ‘‘We are going to work out some relationship and gag our physicians ered by employment based health insurance kind of health care for all Americans.’’ from telling their patients that there has decreased, and many children lack I have to say, in fairness to Senator are other treatments for cancer, or health insurance despite the relative afford- PHIL GRAMM, he said right from the whatever other condition it might be. ability of providing insurance for children. start, ‘‘Over my dead body. We are not (6) Health care coverage for children is rel- going to have any national health care I really do not understand why we atively inexpensive and in 1993 the medicaid cannot get a simple sense of the Senate program spent an average of $1,012 per child program.’’ through this body. compared to $8,220 per elderly adult. We are the only western industri- In closing, I am going to read it to (7) Uninsured children are generally chil- alized nation that does not protect all you one more time: dren of lower income workers, who are less of our citizens. Listen to this, Mr. The Senate finds that patients deserve to likely than higher income workers to have President. I ask my colleagues on the know the full range of treatments available health insurance for their families because other side to listen to this. to them, and patients should know if doctors they are less likely to work for a firm that In accepting the Republican nomination receive bonuses for withholding treatment offers insurance, and if such insurance is of- for President in 1928, Herbert Hoover said, from them. It is the sense-of-the-Senate that fered, it is often too costly for lower income ‘‘The greatness of any nation, its freedom Congress should thoughtfully examine these workers to purchase. from poverty and crime, its aspirations and issues to ensure that all patients get the (8) In 1993, 61 percent of uninsured children ideals are the direct quotient of the care of care they deserve. were in families with at least one parent its children. . .There should be no child in Mr. President, we have a very good working full time for the entire year the America that is not born and does not live child was uninsured, and about 57 percent of under sound conditions of health.’’ bill here. We can make it better, I be- uninsured children had a family income at or lieve, by just pledging to look into this That was in 1928, and we have not below 150 percent of the Federal poverty achieved Herbert Hoover’s dream yet in situation and making sure that all of level. 1996. (9) If Congress eliminates the Federal guar- our people throughout this Nation are Let me add, providing coverage for told all of the options, because if they antee of medicaid, an estimated 4,900,000 children may lose their guarantee of health children is the least expensive part of are not told, they may lose their lives. health insurance. As we get older, it is I do not think we ought to have that on care coverage, and those same children may be added to the currently projected 12,600,000 more demanding in terms of expense. our hands. children who will be uninsured by the year But still we do not provide it for all Thank you, Mr. President. I reserve 2002. children. whatever time I have remaining. (10) Studies have shown that uninsured All women and children in Italy have Mr. KENNEDY. Mr. President, I ask children are less likely than insured children health care coverage, but not in the unanimous consent that the Boxer to receive needed health and preventive care, wealthy United States of America. amendment be temporarily set aside. which can affect their health status ad- All women and children in France The PRESIDING OFFICER. Without versely throughout their lives, with such have health care coverage, but not in objection, it is so ordered. children less likely to have routine doctor the wealthy United States of America. visits, receive care for injuries, and have a Mr. SIMON addressed the Chair. All women and children have health The PRESIDING OFFICER. The Sen- regular source of medical care. (11) The families of uninsured children are care coverage in Canada, but not in the ator from Illinois is recognized. more likely to take the children to an emer- wealthy United States of America. AMENDMENT NO. 3687 gency room than to a private physician or All women and children have health (Purpose: To express the sense of the Senate health maintenance organization. care coverage in Great Britain, but not regarding the need to ensure adequate (12) Children without health insurance are in the wealthy United States of Amer- health care coverage for all children and less likely to be appropriately immunized or ica. pregnant women) receive other preventive care for childhood All women and children have health Mr. SIMON. Mr. President, I send an illnesses. care coverage in Germany, but not in amendment to the desk and ask for its (13) Ensuring the health of children clearly the wealthy United States of America. immediate consideration. increases their chances to become productive All women and children have health The PRESIDING OFFICER. The members of society and averts more serious care coverage in Luxembourg, but not or more expensive health conditions later in clerk will report. life, and ensuring that all pregnant women in the wealthy United States of Amer- The assistant legislative clerk read receive competent prenatal care also saves ica. as follows: social costs. All women and children have health The Senator from Illinois [Mr. SIMON] pro- (14) Although the United States has made care coverage in Belgium, but not in poses an amendment numbered 3687. great improvements in health care coverage the wealthy United States of America. S3602 CONGRESSIONAL RECORD — SENATE April 18, 1996 All women and children have health The conclusion is that it is a sense of AMENDMENT NO. 3688 care coverage in The Netherlands, but the Senate. If she wants to agree to (Purpose: To encourage organ and tissue (in- not in the wealthy United States of this, I will knock out all of the cluding eye) donation through the inclu- America. whereases and we will just take the sion of an organ and tissue donation card All women and children have health sense of the Senate that we ought to, with individual income refund payments, care coverage in Portugal, but not in next session of the Congress, pass and for other purposes) the wealthy United States of America. health care legislation for pregnant Mr. KENNEDY. Mr. President, there All women and children have health women and children. are two amendments which have been care coverage in Spain, but not in the Mrs. KASSEBAUM. Mr. President, I agreed to dealing with the organ trans- wealthy United States of America. very much appreciate that Senator plants and information on organ trans- All women and children have health SIMON is always very accommodating. plants, the Dorgan–Frist amendment, care coverage in Finland, but not in The Senator from Illinois is a superb in terms of information on the organ the wealthy United States of America. debater. I would still have to object. If transplants. I would like to send it to All women and children have health there is no further debate, I will move the table and ask for its immediate care coverage in Austria, but not in the to table the Simon amendment. consideration. wealthy United States of America. The PRESIDING OFFICER. Is there a The PRESIDING OFFICER. The All women and children have health sufficient second? clerk will report. care coverage in Denmark, but not in There is a sufficient second. The legislative clerk read as follows: the wealthy United States of America. The yeas and nays were ordered. The Senator from Massachusetts [Mr. KEN- All women and children have health The PRESIDING OFFICER. Are there NEDY], for Mr. DORGAN, for himself and Mr. care coverage in Norway, but not in further amendments? FRIST, proposes an amendment numbered 3688. the wealthy United States of America. Mr. KENNEDY. Mr. President, as I All women and children have health understand, the Senator is also asking Mr. KENNEDY. Mr. President, I ask care coverage in Sweden, but not in the for the yeas and nays on the tabling unanimous consent that reading of the wealthy United States of America. motion of the Boxer amendment. amendment be dispensed with. All women and children have health Mrs. KASSEBAUM. Yes. Mr. Presi- The PRESIDING OFFICER. Without care coverage in Japan, but not in the dent, if I may just speak for a moment, objection, it is so ordered. wealthy United States of America. this is objected to by the Finance Com- The amendment is as follows: Mr. President, what we are just say- mittee because it deals with Medicare. At the end of title III, add the following: ing here is, let us in the next session of They would like to debate that at an- SEC. 3 . ORGAN AND TISSUE DONATION INFOR- Congress—and I am not going to be MATION INCLUDED WITH INCOME other time, even though it is just a TAX REFUND PAYMENTS. here—at least protect pregnant women sense-of-the-Senate resolution. (a) IN GENERAL.—The Secretary of the and children. That is all we ask. It is a Mrs. BOXER. Mr. President, if my Treasury shall include with any payment of sense of the Senate resolution. friend will yield for a minute, we took a refund of individual income tax made dur- I regret that 2 years ago—and I out any reference to Medicare and ing the period beginning on February 1, 1997, blame myself as much as anyone—that Medicaid at the Senator’s suggestion. and ending on June 30, 1997, a copy of the we did not even get a vote on the floor It has nothing to do with Medicare and document described in subsection (b). of the U.S. Senate on the fundamental Medicaid. The way it reads now is sim- (b) TEXT OF DOCUMENT.—The Secretary of issue of health care. Today, my friends, the Treasury shall, after consultation with ply that we should look to see whether the Secretary of Health and Human Services we are going to get a vote. We do not patients are being denied the informa- and organizations promoting organ and tis- say how it should be done; we just say tion they need. We deleted all reference sue (including eye) donation, prepare a docu- it is the sense of the Senate that in the to Medicaid and Medicare and asked ment suitable for inclusion with individual next session of Congress, we are going just for the Congress to look at this income tax refund payments which— to at least protect pregnant women and matter. (1) encourages organ and tissue donation; children. So I tried to be very accommodating, (2) includes a detachable organ and tissue I do not know how we can do any- if my friend would try to help me. As I donor card; and (3) urges recipients to— thing less than that. That is what my say, we do not have any reference in (A) sign the organ and tissue donor card; amendment asks for. here at all. We simply ask that the (B) discuss organ and tissue donation with Mrs. KASSEBAUM. Mr. President, I Congress should thoughtfully examine family members and tell family members recognize it is just a sense-of-the-Sen- the issue of patients, finding out the about the recipient’s desire to be an organ ate resolution. But it is about 6 pages, full range of their treatment, and pa- and tissue donor if the occasion arises; and and it is a fairly extensive direction for tients should know if doctors are re- (C) encourage family members to request the next Congress. While there would ceiving bonuses from the treatment. It or authorize organ and tissue donation if the occasion arises. be certainly a great deal of support for does not mention Medicare and Medic- health care coverage for pregnant aid. Mr. KENNEDY. Mr. President, I have women and children, we are having a Mr. BYRD. Mr. President, parliamen- described what it is. It is information hard enough time in this Congress fig- tary inquiry. on organ transplant in behalf of Sen- uring out what we want to do, let alone The PRESIDING OFFICER. The Sen- ator DORGAN and Senator FRIST. applying some issues and directions to ator will state his parliamentary in- The PRESIDING OFFICER. Is there the next Congress. quiry. further debate on the amendment? If For that reason, Mr. President, I Mr. BYRD. Is not a motion to table not, the question is on agreeing to the would have to oppose. now pending? amendment of the Senator from North Mr. KENNEDY. Mr. President, could The PRESIDING OFFICER. The Sen- Dakota. we ask for the yeas and nays? ator is correct. The amendment (No. 3688) was agreed Mr. SIMON. I ask for the yeas and Mr. BYRD. There is no debate on a to. nays. motion to table. AMENDMENT NO. 3689 Mr. KENNEDY. That it would be in The PRESIDING OFFICER. The Sen- (Purpose: To prohibit the establishment of order to ask for the yeas and nays on ator is correct. certain health plan requirements based on the Boxer amendment. Mr. BYRD. Shall we vote? information relating to domestic violence) Mrs. KASSEBAUM. Mr. President, I The PRESIDING OFFICER. We have Mr. KENNEDY. Mr. President, this move to table and ask for the yeas and a previous order to table the votes in amendment is in behalf of Senator nays. sequential order and vote at 10:15. WELLSTONE, and it is in regards to in- The PRESIDING OFFICER. Is there a Mr. BYRD. Very well. I thank the formation relating to domestic vio- sufficient second? Chair. lence. I send the amendment to the Mr. SIMON. If the Senator from Kan- Several Senators addressed the desk. sas will withhold for 30 seconds for me Chair. The PRESIDING OFFICER. The to respond, she mentions a 5-page The PRESIDING OFFICER. The mi- clerk will report. amendment. These are all whereases. nority manager is recognized. The legislative clerk read as follows: April 18, 1996 CONGRESSIONAL RECORD — SENATE S3603 The Senator from Massachusetts [Mr. KEN- would ask HHS to study options on unknowingly thrown into health care NEDY], for Mr. WELLSTONE, proposes an point of service. It has been agreed to coverage that limits their freedom to amendment numbered 3689. on both sides. choose their own health care providers. Mr. KENNEDY. Mr. President, I ask The PRESIDING OFFICER. The The purpose of my provisions is to unanimous consent that reading of the clerk will report. provide to Congress the information amendment be dispensed with. The legislative clerk read as follows: Congress may need to evaluate whether The PRESIDING OFFICER. Without The Senator from Kansas (Mrs. KASSE- patients continue to have direct access objection, it is so ordered. BAUM), for Mr. HELMS, for himself and Mrs. to specialist and choice of health care The amendment is as follows: KASSEBAUM, proposes an amendment num- provider, both in-network and out-of- On page 9, line 13 insert after evidence of bered 3690. network, as we make changes to the insurability ‘‘(including conditions arising Mrs. KASSEBAUM. Mr. President, I health insurance market place. It will out of act of domestic violence);’’. ask unanimous consent that reading of also determine the cost to the insurer The PRESIDING OFFICER. Is there the amendment be dispensed with. of providing this freedom to choose, further debate on the amendment? If The PRESIDING OFFICER. Without and if the premium dollar collected is not, the question is on agreeing to the objection, it is so ordered. effectively going toward patient care. amendment of the Senator from Min- The amendment is as follows: This study will not only go a long nesota. Amend Title III—Miscellaneous Provi- way to provide our Nation with useful The amendment (No. 3689) was agreed sions, Section 302 (a) by striking ‘‘two part information about health care delivery, to. study’’ on line 19, and inserting ‘‘three-part but it will also emphasize the impor- Mr. WELLSTONE. Is it the Senators’ study’’ and adding Section 302 (d): ‘‘(d) EVALUATION OF ACCESS AND CHOICE.— tance of preserving the patient’s free- understanding that this language that Not later than June 1, 1998, the Secretary of dom of choice when it comes to their we have accepted from the House bill Health and Human Services shall prepare own doctor. ensures that women covered in an em- and submit to the appropriate Committees of The PRESIDING OFFICER. Is there ployment-based health plan, will not be Congress a report concerning— further debate on the amendment? If discriminated against because of a (1) an evaluation of the extent to which pa- not, the amendment is agreed to. medical condition caused by domestic tients have direct access to, and choice of, The amendment (No. 3690) was agreed violence, because of a history of domes- health care provider, including specialty pro- to. tic violence, or because of their status viders, within a network of providers, as well as the opportunity to utilize providers out- AMENDMENT NO. 3691 as a victim of domestic violence? side of the network, under the various types (Purpose: To direct the Health Care Financ- Mr. KENNEDY. Yes; that is my un- of coverage offered under the provisions of ing Administration to determine reim- derstanding. this Act; bursement rates for telemedicine services) Ms. KASSEBAUM. Yes; that is my (2) an evaluation of the cost to the insurer Mr. BURNS. Mr. President, I ask understanding. of providing out-of-network access to provid- unanimous consent that the pending Mr. BURNS addressed the Chair. ers, and the feasibility of providing out-of- amendment be set aside. The PRESIDING OFFICER. The Sen- network access in all health plans offered The PRESIDING OFFICER. Without ator from Montana is recognized. under provisions of this Act. (3) an evaluation of the percent of premium objection, it is so ordered. Mr. BURNS. Mr. President, I thank dollar utilized for medical care and adminis- Mr. BURNS. I send an amendment to my friend from Kansas. We are redraft- tration of the various types of coverage of- the desk. ing different language where one com- fered, including coverage which permits out- The PRESIDING OFFICER. The mittee says the first shall be the last of-network access and choice of provider, clerk will report the amendment. and the last shall be first. under provisions of this Act. The assistant legislative clerk read I would like to yield the floor to my Mr. HELMS. Mr. President, one of as follows: friend from West Virginia who has, I the many reasons for my having op- The Senator from Montana [Mr. BURNS], believe, an amendment to offer. posed the Clinton health plan was the for himself and Mr. HARKIN, proposes an The PRESIDING OFFICER. The Sen- well founded fear that the American amendment numbered 3691. ator from West Virginia. people would have been denied their Mr. BURNS. Mr. President, I ask Mr. ROCKEFELLER. Mr. President, right to choose their medical care. The unanimous consent that reading of the the Senator from West Virginia would enormous bureaucracy of the Clinton amendment be dispensed with. ask simply for 1 minute to make the plan made that apprehension a cer- The PRESIDING OFFICER. Without following observation. tainty—which is why the American objection, it is so ordered. Earlier this evening there was sub- people rejected it. The amendment is as follows: stantial nonpublic discussion as to In the interest of time, I will not On Page 71, line 19, add the following: nondiscrimination and long-term care. offer my amendment to guarantee pa- ‘‘SEC. 302.5. REIMBURSEMENT OF TELEMEDICINE. There was then a very helpful, con- tients the freedom to choose their The Health Care Financing Administration structive, and useful colloquy on the health care provider.—This amendment is directed to complete their ongoing study floor which agreed that in the tax pref- was originally approved by the Senate of reimbursement of all telemedicine serv- erential treatment of long-term care, last October by a vote of 79 to 20 when ices and submit a report to Congress with a that nondiscrimination would be com- we considered Medicare reform.—I have proposal for reimbursement of fee-for-service medicine by March 1, 1997. The report shall pletely treated. There was some dis- no doubt that this provision continues agreement as to what Treasury was utilize data compiled from the current dem- to have strong bipartisan support in onstration projects already under review and saying constituted nondiscrimination the Senate. gather data from other ongoing telemedicine and what the Finance Committee staff However, instead of offering the networks. This report shall include an analy- said constituted nondiscrimination. original amendment I submit this sis of the cost of services provided via tele- There seemed to be a difference. amendment to require the Department medicine. I simply, as a member of the Finance of Health and Human Services to con- Mr. BURNS. Mr. President, this Committee, wanted to go on record as duct a study to make certain that any amendment is sponsored also by my saying that the nondiscrimination as- changes in the health insurance mar- friend from Iowa Mr. HARKIN. pect—this is not just racial, but we are ket will not result in the loss of the The Health Care Financing Adminis- talking just about the higher employer American people’s freedom to choose tration has been reviewing telemedi- as opposed to the lowest employer— their health care provider. cine demonstration projects across the that nondiscrimination be done in the Whether Congress considers Medicare country. They have been studying usual, customary, and effective manner reform or health insurance reform, pa- them about 2 years now. They are ana- for the tax preferential long-term care tients must not be deprived of the right lyzing the cost effectiveness of provid- matters that we are now discussing. to choose their own doctors. Even when ing health services via telecommuni- AMENDMENT NO. 3690 Congress attempts to provide access to cations and how to reimburse health Mrs. KASSEBAUM. Mr. President, I health insurance, that is only half of care providers. have here a study request that I co- the equation. Equally important is Telemedicine is a technology that is sponsored with Senator HELMS which that patients must not find themselves spreading—thankfully—because rural S3604 CONGRESSIONAL RECORD — SENATE April 18, 1996 areas and inner-city areas are in des- HCFA could develop a reimbursement The PRESIDING OFFICER. Is the perate need of health care. Getting means and determine how to reim- Senator modifying the underlying health care services can be a challenge, burse. Boxer amendment? especially if you are 180 miles away We have enough data. They know. We Mr. KENNEDY. The Chair is correct. from a specialist. But even if that spe- have had 3 years of these projects. The The PRESIDING OFFICER. Without cialist is willing and able to visit his date the Senator has there, they can do objection, it is so ordered. patients via telemedicine, HCFA will that easily. They can actually do that The amendment as modified is as fol- not reimburse him for those services. a lot sooner than that. I think the Sen- lows: And as you can imagine, many health ator is generous in giving them that At the appropriate place add: care providers aren’t too willing to much time. It is the sense of the Senate that patients give their time without being com- Nonetheless, there is no doubt they deserve to know the full range of treatments pensated. have enough data—they have it now— available to them. The study is already underway. But that they can do this. Congress should thoughtfully examine there is no anticipated deadline to fin- To echo what the Senator from Mon- these issues to ensure that all patients get the care they deserve. ish the study and put the issue of reim- tana said, telemedicine will improve bursement behind us. In fact, at a re- access to care in rural areas. It will at- Mr. KENNEDY. I will ask for a vitia- cent telemedicine conference, a HCFA tract more doctors to rural areas be- tion of the yeas and nays on that par- representative stated that there would cause then they will have the nec- ticular amendment. be no decision until Congress mandated essary backup they need for correct di- The PRESIDING OFFICER. Without one. agnosis and treatment. It will lower objection, it is so ordered. My amendment basically instructs costs in rural areas by cutting down on The PRESIDING OFFICER. The hour HCFA to decide on reimbursement of travel, and it will allow more services of 10:15 having arrived, the question is telemedicine services by March 1, 1997. to be done like at our rural health clin- on agreeing to the motion to table That gives them almost an entire ics where they can reach out over a amendment No. 3683. That is the year—in addition to the time they have broader area. amendment offered by the Senator So this is a very good amendment already spent studying the issue—to from Iowa, Senator HARKIN. The yeas and one that is going to help a lot in a compile their data, gather data from and nays have been ordered. lot of rural areas in the United States. other ongoing demonstrations, if they Mr. DOLE addressed the Chair. I hope it will be adopted. The PRESIDING OFFICER. The ma- choose, and determine the fee-for-serv- The PRESIDING OFFICER. Is there ice reimbursement for services pro- jority leader is recognized. further debate on the amendment? Mr. DOLE. I wanted to get consent vided via telemedicine. The vote now is on agreeing to the that votes occur in the order in which There is no cost associated with this, Burns amendment. since the study is already ongoing. I The amendment (No. 3691) was agreed they were debated, with 1 minute of de- am simply asking that they finish the to. bate after the first vote to be equally study and let rural areas and urban Mrs. KASSEBAUM addressed the divided for explanation; that all votes residents access the health care serv- Chair. after the first vote be reduced to 10 ices that are currently out of their The PRESIDING OFFICER. The ma- minutes in length. I think that is satis- reach. jority manager is recognized. factory to the managers. The Health Care Financing Adminis- AMENDMENT NO. 3682 WITHDRAWN The PRESIDING OFFICER. Is there tration has been in this process now for Mrs. KASSEBAUM. I would like now objection? The Chair hears none, and it a couple of years and we think it is to have a colloquy with the Senator is so ordered. about time that they bring this to a from Pennsylvania. Senator SPECTER VOTE ON AMENDMENT NO. 3683 close and recommend to the Congress and myself and Senator KENNEDY have The PRESIDING OFFICER. The how they are going to deal with it. We discussed his amendment regarding question is on agreeing to the motion have this new technology. We passed a healthy start and my objection had to table the Harkin amendment No. telecom bill that allows a lot of things been it was authorization on this bill 3683. The yeas and nays have been or- to happen in distance learning, tele- which I felt needed to go through the dered. The clerk will call the roll. medicine, and these kinds of things, committee with some hearings, review The assistant legislative clerk called and we think it is now time that we what has always been an appropria- the roll. move into the next generation of pro- tions matter rather than an authoriza- Mr. LOTT. I announce that the Sen- viding health care to our rural areas tion, and I believe this has been agreed ator from Colorado [Mr. CAMPBELL] and via telecommunications. to by Senator SPECTER and we will the Senator from Florida [Mr. MACK] I appreciate my good friend from have a hearing if possible by the end of are necessarily absent. Iowa being a part of this. May. The result was announced—yeas 62, I yield the floor. Mr. SPECTER addressed the Chair. nays 36, as follows: Mr. KENNEDY addressed the Chair. The PRESIDING OFFICER. The Sen- [Rollcall Vote No. 76 Leg.] The PRESIDING OFFICER. Is there ator from Pennsylvania is recognized. YEAS—62 debate on the amendment? Mr. SPECTER. The distinguished Abraham Ford McConnell Mr. HARKIN addressed the Chair. Senator from Kansas expresses it accu- Ashcroft Frist Moynihan The PRESIDING OFFICER. The Sen- rately. I think that will accomplish the Bennett Gorton Murkowski ator from Iowa is recognized. purpose and lead to authorization, or a Bond Gramm Nickles Mr. HARKIN. Mr. President, I wish to reauthorization. That is acceptable, Breaux Grams Nunn Brown Gregg Pressler congratulate the Senator from Mon- and I formally withdraw the amend- Bryan Hatch Reid tana for offering this amendment. I am ment. Burns Hatfield Robb proud to join with him in this. The PRESIDING OFFICER. Is there Chafee Helms Roth When I was chair of the Labor, objection? Without objection, it is so Coats Hutchison Santorum Cochran Inhofe Shelby Health and Human Services Appropria- ordered. Cohen Johnston Simpson tions Subcommittee, Senator SPECTER The minority manager is recognized. Coverdell Kassebaum Smith and I initiated the funding 3 years ago AMENDMENT NO. 3686, AS MODIFIED Craig Kempthorne Snowe D’Amato Kennedy Specter for the demonstration projects for tele- Mr. KENNEDY. Mr. President, the Daschle Kerrey Stevens medicine. I know Montana was one Senator from California, Senator DeWine Kohl Thomas State, Iowa was another, and there BOXER, proposed a sense-of-the-Senate. Dodd Kyl Thompson were several other States, I think In her behalf, I have a revised sense-of- Dole Lott Thurmond Domenici Lugar Warner Georgia, West Virginia, others that the-Senate and I ask unanimous con- Faircloth McCain were involved in the demonstration sent that it be in order to send it to the projects in telemedicine. desk and that it be in order for consid- NAYS—36 One of the reasons that we had the eration at the appropriate time in the Akaka Biden Boxer Baucus Bingaman Bradley demonstration projects was so that list of amendments. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3605 Bumpers Harkin Mikulski (5) Since 1987, the number of children Senator from Indiana, is that correct, Byrd Heflin Moseley-Braun covered by employment based health insur- and that I had asked for the yeas and Conrad Hollings Murray ance has decreased, and many children lack Dorgan Inouye Pell nays at that time? health insurance despite the relative afford- Exon Jeffords Pryor The PRESIDING OFFICER. The Sen- Feingold Kerry Rockefeller ability of providing insurance for children. (6) Health care coverage for children is ator is correct. Feinstein Lautenberg Sarbanes Mrs. KASSEBAUM. So this is a ta- Glenn Leahy Simon relatively inexpensive and in 1993 the medic- Graham Levin Wellstone aid program spent an average of $1,012 per bling motion. Grassley Lieberman Wyden child compared to $8,220 per elderly adult. VOTE ON AMENDMENT NO. 3685 NOT VOTING—2 (7) Uninsured children are generally chil- The PRESIDING OFFICER. There is dren of lower income workers, who are less Campbell Mack no debate on the amendment. The likely than higher income workers to have question is on agreeing to the motion So the motion to table the amend- health insurance for their families because to lay on the table the amendment of ment (No. 3683) was agreed to. they are less likely to work for a firm that The PRESIDING OFFICER. Under offers insurance, and if such insurance is of- the Senator from Indiana, [Mr. COATS]. the previous order there is a minute to fered, it is often too costly for lower income The yeas and nays have been ordered. be utilized by the sponsor of the bill workers to purchase. The clerk will call the roll. and the opposition. (8) In 1993, 61 percent of uninsured chil- The assistant legislative clerk called Mr. DOLE addressed the Chair. dren were in families with at least one par- the roll. The PRESIDING OFFICER. The ma- ent working full time for the entire year the Mr. LOTT. I announce that the Sen- jority leader. child was uninsured, and about 57 percent of ator from Colorado [Mr. CAMPBELL] and Mr. DOLE. Mr. President, I ask unan- uninsured children had a family income at or the Senator from Florida [Mr. MACK] below 150 percent of the Federal poverty imous consent that after all the are necessarily absent. level. The PRESIDING OFFICER. Are there amendments are disposed of this (9) If Congress eliminates the Federal evening, the vote occur on final pas- guarantee of medicaid, an estimated 4,900,000 any other Senators in the Chamber de- sage of S. 1028, as amended, on Tuesday children may lose their guarantee of health siring to vote? at a time to be determined by the ma- care coverage, and those same children may The result was announced—yeas 47, jority leader after consultation of the be added to the currently projected 12,600,000 nays 51, as follows: Democratic leader. Let me indicate children who will be uninsured by the year [Rollcall Vote No. 77 Leg.] 2002. why I am doing that. Senator MACK’s YEAS—47 (10) Studies have shown that uninsured Akaka Ford Mikulski father passed away. He would like to children are less likely than insured children make the final passage vote, unless Biden Gorton Moseley-Braun to receive needed health and preventive care, Bingaman Graham Moynihan there is some objection. which can affect their health status ad- Boxer Harkin Murray The PRESIDING OFFICER. Without versely throughout their lives, with such Bradley Hatfield Pell objection, it is so ordered. children less likely to have routine doctor Breaux Heflin Pryor Mr. KENNEDY. Is it the intention of visits, receive care for injuries, and have a Bryan Hollings Reid the leader that we move to third read- regular source of medical care. Bumpers Inouye Robb (11) The families of uninsured children Byrd Johnston Rockefeller ing tonight? Cohen Kassebaum Sarbanes Mr. DOLE. Oh, yes. I think there is are more likely to take the children to an Conrad Kennedy Shelby only one additional vote. I believe this emergency room than to a private physician D’Amato Kerrey Simon will be the last vote. or health maintenance organization. Daschle Kerry Snowe Dodd Kohl Wellstone The PRESIDING OFFICER. Does the (12) Children without health insurance are less likely to be appropriately immunized or Feingold Leahy Wyden sponsor of the amendment wish to de- receive other preventive care for childhood Feinstein Levin bate the amendment? If not— illnesses. NAYS—51 Mr. SIMON addressed the Chair. (13) Ensuring the health of children clearly Abraham Faircloth Lugar The PRESIDING OFFICER. The Sen- increases their chances to become productive Ashcroft Frist McCain ator from Illinois, Senator SIMON, is members of society and averts more serious Baucus Glenn McConnell recognized. or more expensive health conditions later in Bennett Gramm Murkowski Bond Grams Nickles AMENDMENT NO. 3687, AS MODIFIED life, and ensuring that all pregnant women Brown Grassley Nunn Mr. SIMON. Mr. President, I ask receive competent prenatal care also saves social costs. Burns Gregg Pressler unanimous consent to vitiate the vote Chafee Hatch Roth (14) Although the United States has made on my amendment and to modify it by Coats Helms Santorum great improvements in health care coverage Cochran Hutchison Simpson dropping 4 words that I have given to through the medicaid program, it is still the Coverdell Inhofe Smith the clerk. only developed nation that does not ensure Craig Jeffords Specter The PRESIDING OFFICER. Is there that all of its children and pregnant women DeWine Kempthorne Stevens objection? Without objection, it is so have health care coverage. Dole Kyl Thomas ordered. (15) The United States should not accept a Domenici Lautenberg Thompson status quo in which children in many neigh- Dorgan Lieberman Thurmond The amendment, as modified, fol- Exon Lott Warner lows: borhoods are more likely to have access to At the appropriate place in the bill insert drugs and guns than to doctors, or accept a NOT VOTING—2 the following new section: status quo in which health care is ensured Campbell Mack SEC. . SENSE OF THE SENATE REGARDING ADE- for all prisoners but not for all children. The motion to lay on the table the (b) SENSE OF THE SENATE.—It is the sense QUATE HEALTH CARE COVERAGE amendment (No. 3685) was rejected. FOR ALL CHILDREN AND PREGNANT of the Senate that the issue of adequate WOMEN. health care for our mothers and children is Mr. COATS. Mr. President, I move to (a) FINDINGS.—The Senate finds the fol- important to the future of the United States, reconsider the vote. lowing: and in consideration of the importance of Mrs. KASSEBAUM. Mr. President, I (1) The health care coverage of mothers such issue, the Senate should pass health move to lay that motion on the table. and children in the United States is unac- care legislation that will ensure health care The motion to lay on the table was ceptable, with more than 9,300,000 children coverage for all of the United States’ preg- agreed to. and 500,000 expectant mothers having no nant women and children. CHANGE OF VOTE health insurance. (2) Among industrial nations, the United Mr. DOLE. Mr. President, I urge that Mr. FORD. Mr. President, on amend- States ranks 1st in wealth but 18th in infant the amendment be agreed to. ment numbered 3681, I am recorded vot- mortality, and 14th among such nations in The amendment (No. 3687), as modi- ing ‘‘yea.’’ Since it will not change the maternal mortality. fied was agreed to. outcome of the vote, I ask unanimous (3) 22 percent of pregnant women do not Mrs. KASSEBAUM addressed the consent to be changed from ‘‘yea’’ to have prenatal care in the first trimester, and Chair. ‘‘nay.’’ 22 percent of all poor children are uninsured, The PRESIDING OFFICER. The ma- The PRESIDING OFFICER. Without despite the medicaid program under title jority manager is recognized. XIX of the Social Security Act. objection, it is so ordered. (4) Of the 1,100,000 net increase in unin- Mrs. KASSEBAUM. Parliamentary Mr. KENNEDY. I understand that sured persons from 1992 to 1993, 84 percent or inquiry. Mr. President, I believe I Senator BOXER’s amendment is ready 922,500 were children. moved to table the amendment of the for final disposition. S3606 CONGRESSIONAL RECORD — SENATE April 18, 1996 Mr. REID. Mr. President, would my What these reforms add up to is port- from State regulation because of friend yield for a unanimous consent ability of health insurance—an end to ERISA in past Congresses. I am very request? ‘‘job lock.’’ Currently, some employees pleased that a key component of S. 1028 Mr. KENNEDY. I think I will get ac- are ‘‘locked’’ into their current jobs be- extends these nondiscrimination and ceptance for the Boxer amendment. cause changing jobs might subject portability requirements to self-in- AMENDMENT NO. 3686 them to periods without comprehensive sured plans. The GAO has estimated The PRESIDING OFFICER. The coverage while preexisting condition that about 44 million Americans are in question is on agreeing to the Boxer limitations were met. Under this bill, a self-insured health plans that states amendment, Amendment 3686, as modi- person with previous group coverage cannot regulate. S. 1028 is long overdue. Nearly 2 years fied. would receive credit from this coverage ago, Congress was engaged in a great The amendment (No. 3686), as modi- toward any new limitation period. battle over how to get health care fied, was agreed to. These portability provisions do not costs under control and make health Mrs. BOXER. I move to reconsider guarantee that an individual currently care services available to all Ameri- the vote. insured would be covered after a job change—the new employer must offer cans. That battle heeded few results Mr. REID. I move to lay that motion and left millions of Americans frus- on the table. coverage for this guarantee to exist. The GAO estimates that ending job trated and disappointed that health The motion to lay on the table was care would continue to be out of their lock will benefit as many as 4 million agreed to. reach. The obstacles that prevented Americans who have stayed in their CHANGE OF VOTE Americans from buying health insur- jobs due to concerns about their pre- Mr. REID. Mr. President, on rollcall ance have not gone away and Congress existing conditions. vote 75, it was my intention to vote now owes it to Americans to pass the ‘‘nay.’’ Therefore, I ask unanimous The individuals who will benefit from this bill are real people who have pre- Kassebaum/Kennedy bill to address consent that I be permitted to change some of the issues that these individ- my vote. This will in no way affect the existing conditions that they were born with or people who become sick or have uals face. outcome. We must pass this bill and make the had a severe accident. Without the The PRESIDING OFFICER. Without modest changes that will make it easi- Kassebaum/Kennedy bill, insurance objection, it is so ordered. er for people to get the health care cov- companies can continue to impose re- CHANGE OF VOTE erage they need. I hope in the future strictions on the coverage they offer to we will be able to come to agreement Mr. BRYAN. Mr. President, on roll- these people whose health conditions call vote 75, I voted ‘‘yea’’ and intended on further health reforms that will ad- are beyond their control. Even worse, dress the skyrocketing cost of health to vote ‘‘nay.’’ I ask unanimous con- someone seeking insurance who has an sent that I be permitted to change my care—simply requiring access to health adverse health condition can be denied insurance coverage does not address vote. This will in no way change the insurance altogether. These are chil- outcome. this looming issue. dren, teenagers, young people trying to Mr. WARNER. Mr. President, at the The PRESIDING OFFICER. Without get jobs for the first time, our broth- objection, it is so ordered. close of debate during the series of roll- ers, sisters, parents, and our grand- call votes, I was prepared to vote in Mr. LEAHY. Mr. President, today parents. We cannot, in good conscience, over 62,000 Vermonters are included in favor of the amendment offered by the risk the well being of people whose distinguished Senator from California, the 39.7 million Americans without health could be dramatically affected if health insurance. Unfortunately, this Senator BOXER, proposing a Senate denied coverage for the care they need. Resolution that the Congress fully ex- number is increasing every year. I am proud to say that Vermont has Health insurance has simply become amine administrative practices of already addressed many of the health Health Maintenance Organizations less available and affordable, especially insurance reforms included in S. 1028. [HMO’s] in which physicians may be for small businesses and individuals. I In 1991, Vermont was the first state in precluded from providing full and com- am proud to cosponsor S. 1028, the the nation to prohibit insurance complete medical counsel, or referral for Health Insurance Reform Act, that will panies from denying coverage or charg- specialized care. address some of the issues blocking ac- ing excessive rates to high-risk groups. I am pleased that Senator BOXER’s cess to coverage that the uninsured In 1992, the state extended this to the amendment was accepted but wish to face today. individual market. Today in Vermont, take this opportunity to indicate that This bill is a good bill and a step in no one can be denied health insurance had there been a rollcall vote, I would the right direction. The bill increases at a reasonable cost from a carrier have voted in favor of the Boxer the availability of insurance by ensur- doing business in the state. Amendment. ing that anyone who wants it, and can However, there is a large exception No physician should feel that they afford it, will be able to buy it. I am to this rule. Due to a Federal law, the are being subjected to a ‘‘gag rule’’ in hopeful that provisions to encourage Employee Retirement Income Security the course of their professional prac- small employers to form voluntary Act [ERISA], the State of Vermont’s tice. Patients are entitled to a full and purchasing pools will give some relief insurance reforms do not apply to busi- open discussion of all medical options from rising health insurance premiums nesses that self-insure their health and physicians should not feel re- by giving them more leverage to nego- benefits programs. strained in the process. tiate lower premiums and better condi- For example, during the health re- LIABILITY FOR BIOMATERIALS tions of coverage. form debate in 1994, I was contacted by Mr. MCCAIN. Mr. President, I had To be clear, however, this bill does a Vermont woman who shared with me planned to offer an amendment which not address the larger issue of the sky- her husband’s experience of losing would ensure the availability of raw rocketing cost of health care which health coverage due to a preexisting materials and component parts for will continue to be a looming problem condition. This gentleman had worked implantable medical devices. This pro- that Americans face. for the same business for over 20 years. vision is necessary if Americans are to What the bill does do is end insur- He had a heart condition, but had al- have continued access to a wide variety ance practices that restrict the avail- ways been covered under his employ- of life-saving devices, such as brain ability of insurance to people with pre- er’s health insurance plan. When his shunts, heart valves, artificial blood existing medical conditions, or avoid employer was bought out by a self-in- vessels, and pacemakers. Unfortu- enrolling or renewing coverage for sured company from another state, the nately, we were unable to obtain agree- older or sicker individuals and groups. new employer deemed the heart condi- ment for this amendment from my col- The GAO estimates that up to 21 mil- tion a preexisting condition and denied leagues on the other side of the aisle. lion Americans a year would benefit insurance coverage. Currently, the manufacturers and from federal laws waiving preexisting Because of stories like this, I have suppliers of materials used in condition exclusions for persons who sought to address the issue of self-in- implantable medical devices are sub- had prior coverage. sured employer plans being exempt ject to substantial legal liability for April 18, 1996 CONGRESSIONAL RECORD — SENATE S3607 selling relatively small amounts of ma- happy and productive straight-A stu- surance system. But issues to acces- terials to medical device manufactur- dent with enormous promise and poten- sibility, affordability and portability ers. These sales generate relatively tial. are national issues as well. small profits and are often used for Tara has already undergone the brain Several of my colleagues have al- purposes beyond their direct control. shunt procedure five times in her brief ready discussed the merits of the Due to their small profit margins and life. However, the next time that she Health Insurance Reform Act. As one large legal vulnerability for these needs to replace her shunt, it is not who is about to change jobs, I strongly sales, some of the manufacturers and certain that a new one will be available support the goal of increasing health suppliers of these materials are now re- due to the unavailability of shunt ma- insurance portability. We must keep fusing to provide them for use in medi- terials. This situation is a sad example this focus in mind. Several amend- cal devices. that our medical liability system is out ments are being offered, which I would It is absolutely essential that a con- of control. It is tragic, but not surpris- normally tend to vote for. However, in tinued supply of raw materials and ing that manufacturers have decided light of our need to ensure that this re- component parts is available for the in- not to provide materials if they are form is passed and signed, I will not be vention, development, improvement subject to tens of millions of dollars of supporting such amendments. Again, and maintenance of medical devices. potential liability for doing so. several of these amendments being Most of these devices are made with It is essential that individuals such considered today are excellent. But if materials and parts that are not de- as Tara continue to have access to the their passage only serves to make signed or manufactured specifically for medical devices they need to stay alive health insurance reform impossible to use in implantable devices. Their pri- and healthy. This amendment would pass, my support would be in vain and mary use is in non-medical products. have helped to ensure the ongoing our goal to increase portability would Medical device manufacturers use only availability of materials necessary to be unmet. small quantities of these raw materials make these devices. It would not, in Increasing the availability and re- and component parts, and this market any way, have protected negligent newability of health coverage for mil- constitutes a small portion of the over- manufacturers or suppliers of medical lions of Americans is a reform Congress all market for such raw materials. devices, or even manufacturers or sup- has sought for years. Individuals While raw materials and component pliers of biomaterials that make neg- should not be refused the opportunity parts suppliers do not design, produce ligent claims about their products. to renew or change health plans based or test the final medical implant, they However, it would have protected man- on their preexisting conditions. Sen- have been sued in cases alleging inad- ufacturers and suppliers whose mate- ator KASSEBAUM’s bill addresses this equate design and testing of, or rials are being used in a manner that is problem and it is estimated it will warnings related to use of, perma- beyond their control. serve over 25 million Americans each nently implanted medical devices. The Mr. President, we must act to ensure year. But I also want to thank Senator cost of defending these suits often ex- the continued availability of biomate- KASSEBAUM for clarifying in her bill ceeds the profits generated by the sale rials to ensure that the lives of Tara that individuals with genetic informa- of materials. This is the reason that and thousands of other Americans are tion that predisposes them to a disease some manufacturers and suppliers have not jeopardized. Because this is a life will also benefit from the Health Insur- begun to cease supplying their prod- and death situation, I will do every- ance Reform Act’s portability condi- ucts for use in permanently implanted thing I can to assure that the Senate tions. This clarifying language is a medical devices. addresses this issue in the near future. first step toward bringing important is- Unless alternative sources of supply HEALTH INSURANCE REFORM AND GENETIC sues surrounding genetics to their fore- can be found, the unavailability of raw INFORMATION front. I would also like to thank Sen- materials and component parts will Mr. HATFIELD. Mr. President, as we ator HARKIN for his leadership on the lead to unavailability of life-saving and are all too aware, the past several Labor Committee in working to see life enhancing medical devices. The months, it has grown exceedingly dif- that genetic information is protected prospects for development of new ficult for Members of Congress to focus in the health insurance reform bill. sources of supply for the full range of their attention on anything other than New biomedical technologies have re- threatened raw materials and compo- sad circumstances of our Federal budg- sulted in scientific breakthroughs un- nent parts are remote, as other suppli- et. As chairman of the Appropriations imaginable just a generation ago. Sci- ers around the world are refusing to Committee, I share in the frustration. entists are working to decode our DNA sell raw materials or component parts Fortunately, I am pleased to see that and will ultimately map and sequence for use in manufacturing permanently in the midst of our negotiations, and every gene in the human body. Such implantable medical devices in the setbacks, excellent progress has been genetic research is our most advanced United States. made in the area of health insurance tool in the search for treatments and The product liability concerns that reform. Senators KASSEBAUM and KEN- cures to diseases such as breast cancer, are causing the unavailability of raw NEDY are to be commended for their ef- Alzheimer’s or Huntington’s disease. materials and component parts for forts this past year. While compromise These are exciting medical frontiers, medical implants is part of a larger may not be in fashion, they have uti- but if the fruit of this labor is to be re- product liability crisis in this country. lized this tool with extreme skill, alized, an unhindered commitment to Immediate action is necessary to en- crafting a bill that makes great strides genetic research must be promoted, sure the availability of raw materials towards improving the infrastructure and this includes protecting an individ- and component parts for medical de- of health care in the United States. ual from the threat of genetic discrimi- vices so that Americans have access to Accessibility to health care was the nation. There have already been cases the devices they need. Addressing this focus of debate in the 103d Congress cited where a physically fit individual, problem will solve some important as- and it has become our focus again. with no previous health problems, is pect of our broken medical product li- Many of you know that the State of Or- denied insurance on the basis of a sin- ability system. egon is already on the cutting edge of gle genetic test result. This issue came to my attention improving accessibility for many This is a problem for two reasons. when I was contacted by one of my groups. The Oregon Health Plan, with First, information about our genes constituents, Linda Flake Ransom, its focus on providing health care cov- tells us much about who we are, but is about her daughter Tara who requires erage under the Medicaid program, has not accurate enough to tell us the a silicon brain shunt. Without a shunt, successfully prioritized those health state of our health in the future. Our due to Tara’s condition called hydro- care services most important to its future medical condition is a complex cephalus, excess fluid would build up in citizens. Oregon is therefore able to puzzle, of which our genetic makeup is her brain, increasing pressure, and provide coverage to thousands of low- just one piece. Health plans should not causing permanent brain damage, income individuals who would other- be discriminating on the basis of this blindness, paralysis and ultimately wise be uncovered. Oregon is also mak- single piece. Second, cases have been death. With the shunt, she is a healthy, ing progress improving its health in- documented of individuals who wanted S3608 CONGRESSIONAL RECORD — SENATE April 18, 1996 to participate in a genetic test, but the maximum lifetime benefit caps in to ensure that, among other things, when they were told that their partici- health insurance plans to $10 million. that participants and beneficiaries are pation may threaten their insurability, The second, offered by Senators DO- not excluded from health care coverage they turned around and walked out of MENICI and WELLSTONE, would require because they participate in activities the lab. health plans to provide mental health such as motorcycling, skiing, horse- This is not in the best interest of re- benefits comparable to their other back riding, snowmobiling, all-terrain search; this is not in the best interest medical benefits. I believe both of vehicle riding, or other similar kinds of of society; and it is certainly not in the these amendments are good policy— activities. I would like to ask the dis- best interest of the individual. Fur- providing meaningful and equitable tinguished manager of the pending bill thermore, while including genetic dis- coverage for those who purchase health whether my interpretation of this pro- crimination in the Health Insurance insurance. Following the no amend- vision is a correct one. Reform Act is a good start, but is just ment strategy of the bill’s managers— Mrs. KASSEBAUM. The Senator the beginning of a process aimed at Senators KASSEBAUM and KENNEDY—I from Illinois is correct. protecting the privacy and insurability regretfully voted to table these amend- Mr. MCCAIN. Mr. President, Ameri- cans deserve the security of knowing of individuals, regardless of their ge- ments. It is the unfortunate outcome that they will not lose their health netic information or family history. the no-amendments strategy to have to care coverage if they get sick or lose As I mentioned earlier, it is esti- table good policy such as these. How- their job or if they can change jobs. mated that this bill will affect about 25 ever, the purpose is intended to main- million each year. I have sponsored a Currently, our system does not provide tain an important yet fragile biparti- this security, and as a result many of separate piece of legislation, the Ge- san coalition to pass necessary insur- neric Privacy and Nondiscrimination our workers have to choose between ance reform. I would otherwise support changing jobs and retaining adequate Act, S. 1416, with Senator MACK, which these policies. health care for themselves or their addresses the needs of millions of Mr. KOHL. Mr. President, earlier families. Others live in fear of losing Americans who may not fit within the today I noted the serious problem this their health insurance if they lose boundaries of the bill we are discussing Congress faced in 1994 when it tried to their job. And many who have paid in- today. S. 1416 also addresses issues of take on too many health care-related surance premiums for years cannot get genetic privacy and employer discrimi- issues under one bill. We learned that insurance at any price if they get sick. nation. I am hopeful that the Senate’s painful lesson during debate on the Clearly these Americans deserve to consideration of genetic information in President’s health care reform pro- know that when they are sick or in- this legislation will open the door posal. jured, they will get the medical atten- For that reason, I mentioned that wider to a deeper understanding of tion that they need when they need it, some amendments that would come up these important issues. without having to worry about losing Mr. KENNEDY. Mr. President, I want today, no matter how meritorious, their homes, savings and financial se- to raise two concerns about the long- should be considered on future meas- curity. term care provisions in the leadership ures and not impede passage of the Rather than attempting to change amendment to the Kassebaum/Kennedy Health insurance Reform Act. the entire health care system at once, health insurance reform bill. Several amendments required votes this is an incremental approach which First, under the leadership amend- today that, in another context, I would targets these specific problems. It will ment, long-term care insurance re- have strongly supported. The issue of make it easier for those who change or ceives the same tax treatment as medi- life-time caps, and treatment of mental lose their jobs to keep their health in- cal insurance. Since long-term care in- health coverage were passionately de- surance, and by limiting exclusions for surance is treated as medical insur- bated and deserve the attention of this preexisting conditions, it will assure ance, I want to make sure long-term Congress. access to health care for many who are care insurance provided to employees My votes on these issues were not in- sick. By making health care portable, by an employer is subject to the same tended to approve or disapprove of the legislation will allow millions of nondiscrimination rules as health in- their merits. My overriding concern Americans to move to better jobs and surance. was that they could complicate this improve their standard of living. And Second, I have a concern that the narrowly crafted proposal and jeopard- by ending ‘‘job lock,’’ the legislation long-term care provisions in the lead- ize any chance at health reform this will improve the fit between workers ership amendment (which includes the year. The sooner we pass this bill to and their jobs and increase the overall National Association of Insurance address insurance problems of pre-ex- productivity of American workers. Fi- Commissioners’ model long-term care isting condition exclusions, portability nally, this legislation will make it consumer protections) precludes States and renewability, the sooner we can ad- easier for small employers to obtain from enacting stronger long-term care dress other pressing problems that af- adequate coverage for their employees. consumers protections. fect the quality of health care in this As a result, health insurance will be Mr. ROTH. Mr. President, with re- Nation. available to more Americans. spect to the first point, long-term care In the interest of time, I believe we In addition to providing portability insurance is treated the same as medi- should pass a clean health reform bill. of health insurance and limiting exclu- cal insurance for tax purposes under I also believe that Congress should sions for preexisting conditions, this the leadership amendment. Since long- carefully consider several of the meas- legislation contains certain other im- term care insurance is treated as medi- ures that failed today as soon as pos- portant provisions. It will increase the cal insurance it is intended that it will sible. tax deduction for health insurance for be subject to the nondiscrimination Ms. MOSELEY-BRAUN. Mr. Presi- the self-employed to 80 percent, grant- rules applicable to medical insurance dent, subpart (a)(1)(B) of Section 101, ing long overdue tax relief to the own- provided to employees by an employer. Subtitle A of Title I of the bill now be- ers of small businesses and farms. The On the Senator’s second point, it is fore us provides that ‘‘an employee legislation also provides tax deductibil- not the intent of the leadership amend- health benefit plan or health plan is- ity for long term care and insurance, ment to preclude States from enacting suer offering a group health plan may making it possible for more Americans stronger long-term care consumer pro- establish eligibility, continuation of to avoid financial difficulty as the re- tections. A clarification of this issue eligibility, enrollment, or premium sult of chronic illness. can be addressed in the conference re- contribution requirements under the Although there is broad bipartisan port to the bill if necessary. terms of such plan, except that such re- support for this legislation, I am aware JEFFORDS-SIMON AND DOMENICI-WELLSTONE quirements shall not be based on of the concerns that it may increase in- AMENDMENTS health status, medical condition, dividual health insurance premiums. Mr. BREAUX. Mr. President, tonight claims experience, receipt of health The legislation addresses this issue in the Senate voted on two amendments care, medical history, evidence of in- two ways. First, the legislation im- to S. 1028. The first offered by Senator surability, or disability.’’ As I under- poses no limit on the rate which indi- JEFFORDS and SIMON, would increase stand it, this formulation is intended vidual insurers may charge those with April 18, 1996 CONGRESSIONAL RECORD — SENATE S3609 preexisting illnesses, allowing pre- cretionary spending is the funding we ‘‘(aa) $14,000,000 in additional budget au- miums to be set at a level which would provide annually for programs through thority and $13,000,000 in additional outlays not raise costs for others. Therefore the appropriations process. for the Office of the Inspector General of the My amendment would have replaced Department of Health and Human Services; any increase in premiums which does ‘‘(bb) $8,000,000 in additional new budget occur will not be the result of this leg- the unprecedented new entitlement authority and $6,000,000 in additional outlays islation but of how each State chooses spending for enforcement in this bill for the Federal Bureau of Investigations; to regulate its individual insurance with a mechanism that would have pro- and, market. Second, the legislation gives vided an automatic upward adjustment ‘‘(cc) $18,000,000 in additional new budget States considerable flexibility in how for Medicare fraud and abuse control authority and $29,000,000 in additional out- they address the requirements of the spending in the appropriations process. lays for the Health Care Financing Adminis- bill. This will allow States to devise The Medicare Fraud and Abuse Con- tration; strategies which fit their individual trol allowance proposed in this amend- ‘‘(II) with respect to fiscal year 1998, ment would have provided an auto- ‘‘(aa) $29,000,000 in additional budget au- situations. thority and $28,000,000 in additional outlays In the past several years, many matic upward adjustment in the discre- for the Office of the Inspector General of the States have taken significant steps to tionary spending caps to make sure ad- Department of Health and Human Services; reform their health care systems, and ditional funding for the Inspector Gen- ‘‘(bb) $17,000,000 in additional new budget they are to be commended for these ef- eral of the Department of Health and authority and $15,000,000 in additional out- forts. For example, my home State of Human Services, the FBI, and HCFA is lays for the Federal Bureau of Investiga- Arizona was one of the first to use not curtailed by budget limits. tions; and, However, under my amendment Con- ‘‘(cc) $78,000,000 in additional new budget managed care to improve the efficiency authority and $89,000,000 in additional out- of publicly funded health care, and has gress would still have been required to lays for the Health Care Financing Adminis- passed legislation which encourages annually review and fund these pro- tration; the use of Medical Savings Accounts. grams. ‘‘(III) with respect to fiscal year 1999, There are certain reforms, however, I want to emphasize two important ‘‘(aa) $41,000,000 in additional budget au- which only the Federal Government points, Mr. President. First, this thority and $40,000,000 in additional outlays can make. These reforms fall in that amendment would have done exactly for the Office of the Inspector General of the category, and it is our responsibility to what we did for increasing funding for Department of Health and Human Services; make them. continuing disability reviews in the ‘‘(bb) $27,000,000 in additional new budget authority and $24,000,000 in additional out- f debt limit bill. Second, the policy effects for Medi- lays for the Federal Bureau of Investiga- FUNDING MEDICARE FRAUD AND tions; and, care fraud and abuse control are ex- ‘‘(cc) $143,000,000 in additional new budget ABUSE CONTROL actly the same as in the current bill. authority and $154,000,000 in additional out- Mr. DOMENICI. Mr. President, ear- The increased funding for fraud and lays for the Health Care Financing Adminis- lier today we adopted an amendment, abuse control would have still oc- tration; now that we have had a chance to re- curred, and the savings would still ‘‘(IV) with respect to fiscal year 2000, view, we find creates a concern. have resulted. ‘‘(aa) $54,000,000 in additional budget au- In effect, in our proper and correct Mr. President, we will never gain thority and $53,000,000 in additional outlays effort to address fraud and abuse in the control of Federal spending unless we for the Office of the Inspector General of the Department of Health and Human Services; Medicare Program, we converted gain control of entitlement spending. ‘‘(bb) $37,000,000 in additional new budget spending that previously had been sub- My amendment would have kept us authority and $34,000,000 in additional out- ject to appropriations into entitlement from heading down the slippery slope lays for the Federal Bureau of Investiga- funding. of creating new entitlements for ad- tions; and, Because of the consent agreement it ministrative expenses. ‘‘(cc) $213,000,000 in additional new budget is too late to fix this problem. I hope that laying down this concern authority and $224,000,000 in additional out- I had an amendment, however, that now, conferees on this bill will attempt lays for the Health Care Financing Adminis- to correct his problem before we take tration; would have corrected the problem. ‘‘(V) with respect to fiscal year 2001, My amendment would have provided final action. ‘‘(aa) $70,000,000 in additional budget au- a different funding mechanism for the I ask unanimous consent that a copy thority and $68,000,000 billion in additional Medicare fraud and abuse control proof the amendment I would have offered outlays for the Office of the Inspector Gen- gram. Instead of funding this program be printed in the RECORD. eral of the Department of Health and Human by creating a very large new entitle- There being no objection, the text of Services; ment program, my amendment would the amendment was ordered to be ‘‘(bb) $49,000,000 in additional new budget have provided a different funding printed in the RECORD, as follows: authority and $58,000,000 in additional outlays for the Federal Bureau of Investiga- At the appropriate place, insert the follow- mechanism. tions; and, ing: The issue is not whether we should ‘‘(cc) $263,000,000 in additional new budget fund the Medicare fraud and abuse con- SEC. . MEDICARE FRAUD AND ABUSE. authority and $274,000,000 in additional out- trol program, but how we should fund (a) ADJUSTMENT TO DISCRETIONARY SPEND- lays for the Health Care Financing Adminis- this program. ING LIMITS.—Section 251(b)(2) of the Balanced tration; and, I strongly support the Medicare fraud Budget and Emergency Deficit Control Act ‘‘(VI) with respect to fiscal year 2002, of 1985 is amended by adding the following and abuse control program, but I am ‘‘(aa) $88,000,000 in additional budget au- new subparagraph: thority and $86,000,000 in additional outlays troubled by the fact that the bill in its ‘‘(I) Health care fraud and abuse control.— for the Office of the Inspector General of the current form would create $1.5 billion ‘‘(i) Whenever a bill or joint resolution Department of Health and Human Services; in new mandatory spending for the ad- making appropriations for fiscal year 1997, ‘‘(bb) $62,000,000 in additional outlays for ministrative expenses for three agen- 1998, 1999, 2000, 2001, or 2002 is enacted that the Federal Bureau of Investigations; and, cies. specifies an amount for health care fraud and ‘‘(cc) $283,000,000 in additional new budget Congress already addressed this issue abuse control under the heading ‘Health Care authority and $294,000,000 in additional out- Fraud and Abuse Control’ for the Office of on the funding mechanism for the Con- lays for the Health Care Financing Adminis- the Inspector General of the Department of tration. tinuing Disability Reviews [CDR’s]. As Health and Human Services, under the head- ‘‘(ii) As used in this subparagraph— part of the debt limit, we provided for ing ‘Health Care Fraud and Abuse Control’ ‘‘(I) the term ‘health care fraud and abuse funding for CDR’s by providing a mech- for the Federal Bureau of Investigations, or control’ means the administration and oper- anism to give these programs addi- under the heading ‘Health Care Fraud and ation of the health care fraud and abuse con- tional funding through the appropria- Abuse Control’ for the Health Care Financ- trol program including the following activi- tions process. My amendment would ing Administration, the adjustments for that ties— have essentially taken the same ap- fiscal year shall be the additional new budg- ‘‘(aa) prosecuting health care matters et authority in that Act for such health care (through criminal, civil, and administrative proach as we did with CDR’s. fraud and abuse control for that fiscal year proceedings); Mr. President, Medicare fraud and and the additional outlays flowing from such ‘‘(bb) investigations; abuse control is currently funded amounts, but shall not exceed— ‘‘(cc) financial and performance audits of through discretionary spending. Dis- ‘‘(I) with respect to fiscal year 1997, health care programs and operations; S3610 CONGRESSIONAL RECORD — SENATE April 18, 1996 ‘‘(dd) inspections and other evaluations; ‘‘(2) REPORTING REVISED SUBALLOCATIONS.— limit preexisting conditions. These are and Following the adjustments made under para- all fundamental, necessary reforms. ‘‘(ee) provider and consumer education re- graph (1), the Committees on Appropriations I want to thank both Senators garding compliance with the health care of the Senate and the House of Representa- KASSEBAUM and KENNEDY for working fraud and abuse program; tives may report appropriately revised sub- ‘‘(II) the term ‘additional new budget au- allocations pursuant to sections 302(b) and with all the members of the committee thority’ means new budget authority pro- 602(b) of this Act to carry out this sub- to strengthen the bill. I am particu- vided for a fiscal year for health care fraud section. larly grateful for their help in making and abuse control under the heading ‘Health ‘‘(3) DEFINITIONS.—As used in this section, sure that the legislation prohibits Care Fraud and Abuse Control’ for— the terms ‘health care fraud and abuse con- group and individual health plans from ‘‘(aa) the Office of the Inspector General of trol’, ‘additional new budget authority’, and establishing eligibility, continuation, the Department of Health and Human Serv- ‘additional outlays’ shall have the same or enrollment requirements based on ices in excess of $53,000,000; meanings as provided in section genetic information. I offered an ‘‘(bb) the Federal Bureau of Investigations 251(b)(2)(I)(ii) of the Balanced Budget and in excess of $39,000,000; and, Emergency Deficit Control Act of 1985.’’. amendment on this issue during com- ‘‘(cc) the Health Care Financing Adminis- (c) CONTROL OF MANDATORY SPENDING.— mittee consideration of S. 1028 and am tration in excess of $407,000,000; and Notwithstanding section 502(b) of this Act, pleased it is included in the bill. ‘‘(III) the term ‘additional outlays’ means funding for medicare fraud and abuse control I am also grateful for their help in outlays flowing from the amounts specified provided by this Act shall only be available ensuring that States are given appro- for health care fraud and abuse control under to the extent provided for in advance by ap- priate flexibility. The legislation takes the heading ‘Health Care Fraud and Abuse propriations Acts. Control’, including outlays in that fiscal into account the progress already made Mr. HARKIN. Mr. President, I am by States like Iowa which just imple- year flowing from amounts specified in Acts pleased to support and serve as a co- enacted for prior fiscal years (but not before mented additional and very significant 1997), in excess of— sponsor of the Health Insurance Re- insurance reforms on April 1 of this ‘‘(aa) $56,000,000 in a fiscal year for health form Act of 1995. Senators KASSEBAUM year. S. 1028 would allow States to pre- care fraud and abuse control by the Office of and KENNEDY have worked together in serve laws such as high risk pools that the Inspector General of the Department of a bipartisan manner to craft legisla- help small groups and individuals pur- Health and Human Services; tion that every Senator should support chase insurance. ‘‘(bb) $38,000,000 in a fiscal year for health because it will help millions of Amer- The provisions in the legislation re- care fraud and abuse control by the Federal ican families. As a member of the Bureau of Investigation; and lated to preexisting conditions are im- ‘‘(cc) $396,000,000 in a fiscal year for health Labor and Human Resources Commit- portant and add some common sense to care fraud and abuse control by the Health tee, I was proud to join in unanimous the current health insurance market. Care Financing Administration.’’ support for the bill in committee. The bill limits the ability of insurers (b) BUDGET ALLOCATION ADJUSTMENT BY This is not perfect legislation. It does to impose exclusions for preexisting BUDGET COMMITTEE—Section 606 of the Con- not fix many of the flaws in the cur- conditions. Under the legislation, no gressional Budget and Impoundment Control rent health care system. But it rep- such exclusion can last for more than Act of 1974 is amended by adding the follow- resents an important step toward re- 12 months. Once someone has been cov- ing new subsection: forming health care and injecting some ‘‘(f) HEALTH CARE FRAUD AND ABUSE AD- ered for 12 months, no new exclusions JUSTMENT.— fairness and common sense into the can be imposed as long as there is no ‘‘(1) IN GENERAL.— system. gap in coverage—even if someone ‘‘(A) When the Committee on Appropria- While supportive of comprehensive changes jobs, loses their job, or tions reports an appropriations measure for health care reform in the last Congress changes insurance companies. fiscal year 1997, 1998, 1999, 2000, 2001, or 2002 I also offered a down payment that The bill also requires insurers to sell that specifies an amount for health care would have provided for insurance re- and renew group health policies for all fraud and abuse control under the heading form, enhanced tax deductibility of ‘Health Care Fraud and Abuse Control’’ for employees who want coverage for their the Office of the Inspector General of the De- health insurance costs for the self-em- employees. It guarantees renewability partment of Health and Human Services, the ployed, and increased efforts to crack of individual policies. Federal Bureau of Investigations, or the down on fraud, waste, and abuse in It prohibits insurers from denying in- Health Care Financing Administration, or health care—all provisions contained surance to those moving from group when a conference committee submits a con- in the bill the Senate is considering coverage to individual coverage. It pro- ference report thereon, the Chairman of the today. hibits group health plans from exclud- Committee on the Budget of the Senate or Millions of Americans would benefit ing any employee based on health sta- House of Representatives (whichever is ap- from the insurance reform provisions propriate) shall make the adjustments re- tus. ferred to in subparagraph (C) to reflect the in S. 1028. Provisions that would gradu- The preexisting condition provisions additional new budget authority for health ally raise the percentage of health in- will help real people who have already care fraud and abuse control provided in that surance costs that the self-employed experienced an illness and want to measure or conference report and the addi- can deduct from 30 percent to 80 per- switch insurers or change jobs. tional outlays flowing from such amounts cent over the next 10 years would pro- For example, just last week a father for health care fraud and abuse control. vide greater equity with larger busi- from Iowa City called my office about ‘‘(B) the adjustments referred to in this nesses. And, I am pleased that the bill his daughter who has a chronic health subparagraph consist of adjustments to— includes provisions to increase funds ‘‘(i) the discretionary spending limits for condition and will graduate from col- that fiscal year as set forth in the most re- for the inspector general to combat lege this spring. He was worried that cently adopted concurrent resolution on the Medicare fraud and establish tougher when she graduates and is no longer budget; sanctions for committing fraud. covered under his health insurance pol- ‘‘(ii) the allocations to the Committees on Mr. President, Americans should not icy she will not be able to find insur- Appropriations of the Senate and the House be denied health care coverage for ance coverage for her chronic health of Representatives for that fiscal year under changing jobs, getting sick or having a condition. sections 302(a) and 602(a); and preexisting medical condition. And if Because the Health Insurance Reform ‘‘(iii) the appropriate budgetary aggregates for that fiscal year in the most recently someone loses their job, they shouldn’t Act would require insurers to credit adopted concurrent resolution on the budget. have to lose their health insurance, prior insurance coverage, his daughter ‘‘(C) The adjustments under this paragraph too. This legislation is designed to re- can move to another health insurance for any fiscal year shall not exceed the levels spond to those concerns. plan without being denied coverage for set forth in section 251(b)(2)(I) of the Bal- The Health Insurance Reform Act her preexisting condition. anced Budget and Emergency Deficit Control will provide American families with The portability provisions in the bill Act of 1985 for that fiscal year. The adjusted more security and choices. It will offer will help with so-called job lock. Work- discretionary spending limits, allocations, some welcome relief for American fam- ers who want to change jobs for higher and aggregates under this paragraph shall be considered the appropriate limits, alloca- ilies worried about losing their health wages or advance their careers often tions, and aggregates for purposes of con- insurance. It will help prevent people have to pass up opportunities because gressional enforcement of this Act and con- from losing their health insurance it might mean losing health coverage. current budget resolutions under this Act. when they become sick. And it will The portability provisions contained in April 18, 1996 CONGRESSIONAL RECORD — SENATE S3611 this legislation would benefit at least one-time insert will give taxpayers the grief and talked and prayed. Ulti- 25 million Americans annually accord- opportunity to learn more about this mately, they decided to donate Bar- ing to the General Accounting Office. important subject and to fill out cards bara’s organs. And, these provisions will provide to become donors. Today, like the Schroeders, Patrick greater security for the millions of Each year, we miss thousands of op- says that confronted with the same de- Americans currently covered under portunities for organ transplantation cision again, ‘‘I’d do the very same group health plans. because of a hesitancy among next-of- thing.’’ I’ve heard from Iowans who have had kin to authorize donation when they do Throughout her life, Barbara’s family to pass up new job offers or forego not know their loved ones wishes. Of and friends say the popular Head Start starting their own small business be- the 20,000 deaths each year that fulfill teacher constantly gave of herself and cause they or someone in their family the medical criteria for becoming taught the children in her care and the has a preexisting condition. Workers organ donors, only about one-fourth people around her important lessons. with a sick child are forced to pass up actually become donors. Through the donation of her organs, career opportunities because their new As a result, eight people die every she has been able to do the same even insurance may not cover a preexisting day while waiting for a transplant. At in death. condition for 6 months or more. These least some of these deaths could be pre- As I have worked for the enactment families have played by the rules and vented through the information cam- of this bill, I have also been motivated have been continuously insured—they paign authorized by the Organ Dona- by the many families who have shared deserve to know that if they pay their tion Insert Card Act. with me their stories of agonizing months spent waiting for a suitable insurance premiums for years, they I understand that authorizing dona- organ and of the joy of receiving a cannot be denied coverage or be sub- tion is a difficult decision for a griev- chance to live. I think it would be ap- jected to a new exclusion for a pre- ing family to make, and their task is propriate to share some of those stories existing condition because they change made much harder when they do not to remind us all that there are names jobs. The Health Insurance Reform Act know their loved one’s wishes. For that would allow people to switch jobs with- and faces behind the statistics. reason, I would like to take a moment Donna Grendahl is a Minnesota mom out worrying about denied coverage for to acknowledge a few of the families I whose son, ROBBy, received a heart preexisting conditions. have heard from who authorized dona- Many States, including Iowa, have transplant in 1986. In her letter to me, tion. Donna wrote: already enacted standards for insur- Gary and Bobbie Schroeder say they My son received the gift of a new heart in ance carriers. In fact, legislation did not give a lot of thought to organ passed in Iowa is more comprehensive transplant surgery 9 years ago. * * * Now 9 transplantation. I suspect that is true years later, he is a 24-year-old college grad- in many respects and includes provi- for many of us. uate. He teaches American history/civics and sions that help make insurance more But on November 26, 1989, their 21- coaches hockey and baseball at the high affordable for small groups and individ- year-old son Jeff was in a fatal car ac- school level. * * * uals. But, Federal legislation is nec- cident. Gary wrote to me, Thanks to the availability of a donor, he essary because States are prevented has been able to enjoy the gift of his second Jeff was a 4th year pre-med college student chance at life to the fullest. from regulating self-funded health in Southern California, when he and his Bonnie Simonet, a wife and mother and a plans—the type of plans that cover the roommate, returning from playing in a col- double-lung transplant recipient, told me: ‘‘I majority of Iowans. This legislation lege basketball tournament, ran into wet suffered for 10 years with a disease to my and slippery roads and had a single car acci- will also provide a national floor and a lungs. . . . guaranteed level of protection for all dent. Jeff sustained a head injury, even Oxygen kept me alive, but my lips and fin- Americans. though wearing his seat belt, causing brain gernails were blue. I was on oxygen 24 hours I support this bill and urge my col- death. * * * a day, and I was only 47-years young, which leagues to not offer amendments that Jeff was on life support, but tests I consider too young to die. I had a life left will weaken it. We should keep this bill showed absence of brain activity, and to live. . . . free of the objectionable provisions he was declared brain dead 4 days later. When my doctor suggested a lung trans- We were then given the opportunity plant, it seemed so drastic, but I wanted to that were included in the House bill— live. I went through a week of evaluation, provisions which will surely prompt of making a decision that would give many tests and had to get approval from my President Clinton to veto the bill, and some purpose to a tragic situation. insurance company. When this was set in that will ultimately deny long-needed * * * Donating Jeff’s organs gave us motion, I was put on the waiting list for a assistance to millions of middle-class the opportunity to start the healing double lung transplant. . . . American families. process. * * * On August 4, 1994, after waiting on the list for 9 months, I was called. . .. I was in sur- ORGAN DONATION INSERT CARD ACT Jeff was a giver in life, always help- gery 6 hours and came out a new person with Mr. DORGAN. Mr. President, first ing others; we know he would want to continue helping others, even in death. a 2nd chance at life and a new attitude about and foremost, I would like to thank the what is important. Jeff’s organs helped sustain life to distinguished managers on both sides Janet Johnston’s 19-month-old grandson, for agreeing to include this critical four other individuals, by giving his Colton, is alive today because he received a provision in the Health Insurance Re- heart, liver, and kidneys. He helped new liver. According to Janet, form Act. give hope and extended life to the re- My grandson, Colton, went through his The Senate’s passage of the Organ cipients and their families. Our deci- first surgery at a month and a half old, Donation Insert Card Act is particu- sion to give has been a step toward which didn’t take care of his problem. He larly timely. Next week is National healthy grieving, and we would make was put on a list in January for a liver trans- Organ and Tissue Donor Awareness the same decision again.’’ plant. We waited six long months, always Week, and the need for organ and tis- Patrick Pins, a high school Social worried if he was going to live long enough Studies teacher in Mandan, ND, also before a liver became available. On July 16th sue donors is more crucial than ever. we got our gift. Right now, the national waiting list for knows firsthand the difficult decision We are pleased to support your proposed an organ transplant has topped 45,000 that families face when a loved one ‘‘Organ Donation Insert Card Act. Please people, and a new name is added to the dies. In 1992, his wife Barbara was at- continue to work hard. There are people who list every 18 minutes. tending a family reunion with her fam- do benefit and have happy endings. The Organ Donation Insert Card ily when she developed a severe mi- Finally, Gary Rux, a heart transplant re- amendment represents a simple, cost- graine, nausea, and neck pain. Al- cipient shares his story: effective way for the Federal Govern- though she was rushed to the hospital, I recently received a copy of your proposed ment to help save the lives of those she had suffered severe brain trauma legislation for an ‘‘Organ Donor Insert who are waiting for an organ trans- and died within 24 hours of arriving at Card.’’ I want you to know that I support plant. The amendment will provide the hospital. this legislation with all of my new heart. . . . millions of Americans with organ and While only a machine kept Barbara’s I have firsthand knowledge of what it is tissue donor information with their in- body alive, Patrick and the couple’s like to spend over 2 years dying, not know- come tax refund checks in 1997. This three children struggled with their ing for sure if I would be around to provide S3612 CONGRESSIONAL RECORD — SENATE April 18, 1996 for my family. In spite of the time I spent The Problem: A worker is laid off, II. Mr. President, during this debate I waiting for a heart, I ask that you offer no and can’t get coverage for a preexisting plan to support the proposed Finance sympathy to me. I am one of the lucky condition in the individual market. Committee Amendment. The provi- ones. .. . There are many, however, who are The Solution: The House bill includes sions in this amendment will increase not so lucky. It is they who need and deserve group-to-individual portability, so that our sympathy. Fortunately for them, you are portability, tax equity, and afford- in a position to do more than simply offer when you leave a job that provided cov- ability. sympathy. I thank you on behalf of the many erage for a chronic condition, you can- Mr. President, it is my understanding individuals who are waiting, and dying, at not be denied coverage in the individ- that the following provisions will be in- this very moment. Bear in mind as you pro- ual market. cluded in the Finance Committee mote this legislation that some of these indi- The Problem: An uninsured entre- Amendment to the Kennedy-Kasse- viduals who are dying are just children. I be- preneur who can’t afford insurance as a baum Health Care Reform Act: an in- lieve they deserve a chance, and with your self-employed person today. crease in the self-employed health care and our support, perhaps they can have that The Solution: The House bill allows tax deduction to 50 percent or higher; chance. the self-employed to deduct 50 percent medical savings accounts providing for Fortunately, these stories all have happy of their premiums from their taxes. In- deposits of $2,000 for individuals and endings and they are heartwarming to hear, creasing deductibility makes health in- but we must also remember the many fami- $4,000 for families; deductibility for lies who do not have a happy ending. In my surance more affordable for self-em- long-term care premiums and expenses; view, the most common tragedy of organ ployed individuals. The Finance Com- and, tax-free treatment of accelerated transplantation is not the patient who re- mittee amendment may increase the death benefits for the terminally ill. ceives a transplant and dies, but the patient deduction to 80 percent. Mr. President, assuming these provi- who has to wait too long, dying before a suit- The Problem: An uninsured person, sions are included in the committee’s able organ can be found. out of work, who can’t afford a costly amendment, it would not be my inten- But today, the Senate has taken a step to individual policy because it is loaded tion to offer any amendments; further, prevent some of these needless deaths. down with State mandated benefits. I would not object to a unanimous con- In closing, I want to thank the many orga- The Solution: The House bill includes nizations and supporters who have endorsed sent (UC) agreement. this bill and that worked tirelessly for its medical savings accounts, so that an However, in the event that any of the enactment. I also want to mention my Sen- individual can buy a high-deductible above provisions are not included in ate colleagues who have cosponsored the bill, policy, with a much lower, more afford- the amendment, I will offer and sup- Senators BRADLEY, COCHRAN, DEWINE, FRIST, able premium. port amendments to replace these pro- HELMS, INOUYE, BOB KERREY, JOHN KERRY, Mr. President, MSA’s offer the ulti- visions. LEAHY, LEVIN, MOSELEY-BRAUN, MURKOWSKI, mate in portability and affordability, III. The importance of MSAs. MSAs ROBB, AND SIMPSON. and I want to further address this criti- are one feature of the House bill—and Finally, I want to again thank the man- cal issue later in my remarks. reportedly the Finance Committee agers, Senators KASSEBAUM and KENNEDY, for The Problem: A small business em- accepting this amendment, and I look for- Amendment—that will increase the ward to working with them to retain it in ployee, whose employer can’t afford to portability, availability, and afford- conference. purchase insurance for his five employ- ability of health insurance. MSA are a Mr. KYL. Mr. President, the U.S. ees, because one of them has a chronic simple, low cost alternative to tradi- Congress has begun the debate on legis- illness. tional health care insurance for the lation that will affect the way millions The Solution: The House bill allows millions of Americans who cannot af- of Americans get their health insur- small businesses to group together to ford today’s health insurance options ance. Both the House and the Senate purchase health insurance. or, who are not happy with available By grouping together, they can share bills are intended to address a serious insurance options. concern among millions of working risk and spread administrative costs Here is how an MSA can work: The Americans who currently have em- over a larger group, lowering premiums employer purchases a high-deductible ployer provided health insurance: the for everyone. health insurance policy and places an These ERISA regulated arrange- threat of losing private health insur- amount of money equal to the employ- ments would be exempted from state ance when they lose or change jobs or, ees’ deductible in a special savings ac- mandated benefits and pooling prohibi- try to obtain coverage when they have count called a medical savings actions that can drive up the cost of care. a preexisting medical condition. The Problem: The federal tax code count. The money in the MSA, tax- The Kennedy-Kassebaum bill con- often discourages citizens from provid- free, to cover most medical costs. The tains some useful provisions and ad- ing for their own health care needs. individual keeps what is not used after dresses some important problems in The Solution: The House bill provides one year, collects interest, and the bal- the health insurance market. However, for tax deductibility for long-term care ance rolls over into the next year, I believe these problems are more effec- insurance premiums and expenses and, when the employer makes additional tively addressed in the health insur- tax free use of accelerated life-insur- contributions to the account. ance reform plan passed on March 27 in ance benefits for health expenses. In addition to covering basic medical the House of Representatives—and re- The Problem: Fear of frivolous law- services, these funds can be used to portedly contained in the Finance suits and outrageous recoveries forces cover services not covered by health in- Committee amendment. many doctors to practice costly ‘‘de- surance, such as elective surgery and I believe the Kennedy-Kassebaum bill fensive medicine.’’ long-term care. Money accumulated in could be improved and expanded by in- The Solution: The House bill reforms an MSA can only be withdrawn for corporating important provisions in medical malpractice claims. Patients medical expenses as established by the the House bill—and in the proposed Fi- who are injured as a result of mal- Internal Revenue Code. For MSAs to nance Committee amendment. These practice deserve to be fully com- receive the same tax treatment as em- provisions more successfully address pensated. ployer-provided health benefits plans, a the health care problems faced by mil- But in today’s system, an enormous high-deductible plan would have to be lions of Americans, such as: amount of money that should be dedi- combined with the MSA. A high-de- The Problem: An ambitious worker cated to health care spending goes in- ductible plan would have a deductible who wants to pursue a career oppor- stead to lawyers—sometimes as much of at least $1,500 in the case of an indi- tunity, but can’t change jobs because as 40 percent to 50 percent. vidual, and $3,000 for a family. Individ- his son has cancer, and wouldn’t be The Problem: Fraud, waste, abuse uals—including the self-employed— covered by a new employer’s insurance. and administrative inefficiency cost could make tax-deductible contribu- The Solution: The House bill guaran- the health care system billions per tions: up to $2,000 if single, $4,000 if tees that anyone with employer pro- year in wasted resources. married. The inside build-up would be vided insurance can move to another The Solution: Tougher penalties for tax-free. The amounts could be with- job with employer provided insurance waste, fraud, and abuse along with ad- drawn from the MSA tax- and penalty- without losing coverage for a preexist- ministrative simplification through free if used for medical purposes. Em- ing condition. electronic billing and uniform forms. ployer contributions to an MSA would April 18, 1996 CONGRESSIONAL RECORD — SENATE S3613 not be taxable to the employee on The accusation that MSAs will work clause is stricken and the text of S. whose behalf the contribution is being only for the wealthy is also inaccurate. 1028, as amended, is inserted in lieu made. According to a 1996 analysis by the thereof and the bill is deemed read a While Congress has been considering Joint Committee on Taxation, middle- third time. MSAs, many companies have gone income Americans will choose MSAs. Under the previous order, the vote on ahead on their own and have developed According to the Joint Committee, one final passage will occur on Tuesday, highly successful MSAs or MSA-type million Americans are expected to sign April 23, at a time to be determined by programs. A March 1995 study by the up for MSAs. An estimated 650,000 peo- the majority leader. Evergreen Freedom Foundation ana- ple who earn between $40,000 and $75,000 f lyzed the experience of 1037 companies a year would chose MSAs., 120,000 with nation-wide who had implemented incomes between $30,000 and $40,000 MORNING BUSINESS MSAs. For instance, in 1994, the Valley would choose MSAs. Mr. ABRAHAM. Mr. President, I ask Surgical Group Health Plan of Phoenix MSAs could lower overall health care that there now be a period for the implemented an MSA plan for its 14 costs. Voluntarily uninsured workers transaction of routine morning busi- employees. According to the Evergreen might receive an incentive to obtain ness, with Senators permitted to speak Report, annual employer costs were re- health insurance as a result of MSAs. for up to 5 minutes each. duced by $400 per employee in the first Younger, healthier workers who don’t The PRESIDING OFFICER. Without year alone. Mr. President, here is why purchase health insurance because objection, it is so ordered. MSAs will work: they believe they will never get sick, f 1. Parity in tax treatment: MSAs would now have an incentive to be cov- CONGRESS MUST STOP JUNK GUN grant high-deductible health plans— ered against major illnesses as a result VIOLENCE paired with an MSA—comparable tax of MSAs. This would increase the num- treatment to that of other forms of em- ber of healthy people in the insurance Mrs. BOXER. Mr. President, in 1968, ployment-based group health plans, pool and would lower overall health Senator Robert Kennedy was assas- and allow people to claim the deduc- costs. sinated in California by an assailant tion even if they do not otherwise Are supporters of MSAs out of the carrying a junk gun. That terrible itemize taxes. mainstream? No. As part of the Ken- event convinced Congress that some- 2. Positive incentives: MSAs provide nedy/Kassebaum bill, the Labor Com- thing had to be done about the dra- Americans the incentives to purchase mittee passed a ‘‘Sense of the Commit- matic increase in gun violence. Specifi- health care more carefully by letting tee’’ resolution that said: cally, Congress concluded that it had them keep what they don’t spend. It is the sense of the Committee that the to act to stem the proliferation of The current unlimited exclusion for establishment of medical savings accounts these junk guns, or as they are also employer-based health care encourages . . . be encouraged as part of any health in- known, Saturday night specials. unnecessary spending. surance reform legislation passed by the Later that year, Congress passed the 3. Major medical protection: MSAs Senate. Gun Control Act of 1968, which barred insure that the necessary coverage will Also in the Kennedy/Kassebaum bill, the importation of junk guns. The guns be there in the event of an illness or there is a provision that allows Medi- affected by the import ban had several accident. care risk HMOs to offer medical sav- things in common: They were cheap. 4. The ultimate in portability: MSAs ings accounts. They were poorly constructed, and provide for real portability. Unlike The Democratic support MSAs. In they lacked important safety devices. other forms of employer-based health 1994, all the Democrats on Ways and Shortly after the passage of the Gun plans, medical savings in the MSA can Means voted to include MSAs in the Control Act, unintended consequences be taken from job to job. Clinton plan. In 1994, Representative began to emerge. Many new companies 5. More choices for consumers: The Gephardt included them in his Demo- were formed to manufacture junk guns MSAs empower people to make their cratic Leadership bill. In 1992, Senator domestically. Protected from foreign own health care decisions. JOHN BREAUX introduced a bipartisan competition and given a virtual mo- Funds in the MSA may be spent, on MSA bill. Senators TOM DASCHLE, SAM qualified medical expenses that may nopoly over the U.S. market, the do- NUNN, Alan Dickson, RICHARD SHELBY, mestic production of junk guns sky- not be covered under high-deductible David Boren co-sponsored the legisla- plan (e.g., prescription drugs, durable rocketed. In fact, all of the companies tion. In 1994, Senator PAUL SIMON was a that produce today’s criminals’ favor- medical equipment, etc * * *). cosponsor of MSA legislation. 6. MSAs Help meet long term care ite junk guns were founded after 1968. Mr. President, MSAs are one of the In 1972, Congress tried to end the dou- needs: MSAs will help people who want keys to portability, affordability, and to protect themselves against future ble standard that allows the domestic choice of health insurance for millions manufacture of junk guns. Sixty eight long-term care needs. of Americans. I believe the Senate MSA funds can be used to purchase Senators—including BOB DOLE and must pass MSAs. STROM THURMOND—voted to close the long-term care insurance or services. The PRESIDING OFFICER. The 7. States are moving toward MSAs: loophole permanently. Unfortunately, question is on agreeing to the commit- despite its more than two to one sup- Arizona is one of 15 states that have al- tee amendment in the nature of a sub- ready passed laws granting favorable port in the Senate, that bill was killed stitute, as amended. in a House committee. tax treatment to MSAs. The committee amendment in the Along with my cosponsors, JOHN The failure to establish federal tax nature of a substitute, as amended, was CHAFEE and BILL BRADLEY, I have in- rules regarding MSAs will inhibit inno- agreed to. vations that many states have decided The PRESIDING OFFICER. The troduced legislation, S. 1654, that is is good health policy. question is on the engrossment and closely modeled after that 1972 bill. Mr. President, in spite of the over- third reading of the bill. The principle of that bill that passed whelming evidence that MSAs are a The bill was ordered to be engrossed the Senate so overwhelmingly nearly viable health insurance alternative for a third reading, was read the third 25 years ago and the bill I have intro- with wide appeal, there are still a few time. duced is simple: if a gun is such a great who say MSAs favor only the healthy The PRESIDING OFFICER. Under threat to public safety that its impor- and wealthy. This is inaccurate. While the previous order, the clerk will re- tation is banned, then its domestic MSAs will be attractive for the port H.R. 3103. manufacture should also be prohibited. healthy, they will be equally attractive The legislative clerk read as follows: Its point of origin is irrelevant. for the sick. The reason: The MSA A bill (H.R. 3103) to amend the Internal By every measure, the problem of gives individuals the ultimate freedom Revenue Code of 1986 to improve portability gun violence has grown worse since to choose their health care providers, and continuity of health insurance coverage, passage of the Gun Control Act. This thereby allowing individuals to seek and for other purposes. indisputable fact was most recently out the best health care services that The PRESIDING OFFICER. By pre- demonstrated in the release last week meet their budget. vious order, all after the enacting of a study by the Children’s Defense S3614 CONGRESSIONAL RECORD — SENATE April 18, 1996 Fund. Among CDF’s findings was the tion who wrote to me, ‘‘There is no trust of the citizens of Maine. These chilling statistic that a child dies from doubt that ‘Saturday Night Specials’ traits enabled him to make the Envi- gunfire every 92 minutes in the United are disproportionately represented in ronment and Public Works Committee States. And over the last 10 years, the homicides and other crimes.’’ Accord- the forum which produced this Nation’s rates of child gun deaths have nearly ing to the Bureau of Alcohol, Tobacco, landmark environmental protection doubled. and Firearms, of the 10 guns most fre- legislation, the Clean Air Act and the A Center for Disease Control survey quently traced at crime scenes, 8 are Water Quality Act. These critical envi- found that on an average day, 1 in 20 junk guns. ronmental statutes changed the way high school students carries a gun to Junk guns’ price and concealability— Americans view our precious natural school. But it is not just a high school the factors that make them so attrac- resources and his work provided the problem. A few years ago in San Fran- tive to criminals—are also the factors foundation upon which all subsequent cisco, a 7 year old second grader was that make them unsuitable for general environmental protection statutes suspended for bringing his mother’s use. have been built. junk gun to school, where he threat- What about junk guns for hunting In addition, his efforts were instru- ened to shoot a classmate. and target shooting? According to fire- mental to the passage of the Congres- What can we do to fight this prob- arms experts, they are totally unsuit- sional Budget Act of 1974, establishing lem? One Step is to end this junk gun able because of low accuracy and high the beginnings of the modern coordi- double standard. failure rates. And what about home nated Congressional budget process. As In my State of California, a bill to and self protection? Again, junk guns the first chairman of the Senate Budg- prohibit the manufacture and sale of are ill suited for the job. These guns et Committee, Ed Muskie was commit- junk guns passed the State senate last are inaccurate, poorly constructed, and ted to the effective disciplined Federal year, but was blocked in an assembly lacking important safety features. spending; demonstrating that promot- committee in January. Keeping a junk gun in the house is an ing fiscal responsibility and meeting However, this is a problem that the invitation to disaster. the needs of our people were com- U.S. Congress created, and it is one I know of one case in which a man plementary objectives. that the Congress should fix. Clearly, a was killed when his gun fell from its Throughout his lifetime of public nationwide ban would be the most ef- holster as he bent over to get a drink service, Ed Muskie was a man his coun- fective way to keep these firearms out of water from a fountain. In another try could turn to in a time of crises. As of the hands of criminals. case, a man was critically injured when a U.S. Senator, a vice-presidential and My bill applies prospectively only. It a junk gun he kept in his car fired then presidential candidate, and as does not affect any guns currently in when the car hit a bump in the road. Secretary of State, he demonstrated an circulation. These tragedies could have been pre- unsurpassed commitment to improving I am proud that my legislation has vented if these junk guns had better the welfare of all Americans. In his been endorsed by the California Police safety features. candid, forthright and honest way, he Chiefs Association and the chiefs of I plan to fight hard for this bill, and encouraged the free exchange of ideas some of California’s largest cities in- I am confident that with the strong within the democratic process, working cluding Willie Williams of Los Angeles, support of law enforcement and citi- to transcend partisan boundaries and Fred Lau of San Francisco, Art zens’ groups around the country, we foster what he called a ‘‘politics of Venegas of Sacramento, and Louis will prevail. trust’’ in this Nation. Cobarruviaz of San Jose. In all, 27 Cali- f One of his many legacies to our coun- fornia police chiefs and sheriffs have try is the large number of former endorsed my legislation. It has also TRIBUTE TO EDMUND S. MUSKIE Muskie staff members who under his been endorsed by the Coalition to Stop Mr. SARBANES. Mr. President, I leadership made such extraordinary Gun Violence, a leading national wish to pay tribute to our wonderful contributions to our Nation’s welfare. antiviolence organization. colleague and dear friend Ed Muskie Many of these individuals continue to I am introducing this measure at the who passed away late last month. A render dedicated public service and same time that Congress is moving distinguished public servant, an accom- they constitute a national asset which backward on gun issues by reopening plished legislator, and a man of great is yet another tribute to Ed Muskie’s the assault weapons ban. I am con- integrity and humanity, Edmund sterling qualities. fident that with the leadership of Sixtus Muskie represented the best of Mr. President, I would like to take President Clinton, Senators DIANNE the Senate and of the Nation. this opportunity not only to honor the FEINSTEIN, PAUL SIMON and others, we Throughout his career in public serv- life and service of Edmund Muskie, but will defeat efforts to roll back our ice Senator Muskie exhibited a rare to extend my deepest and heartfelt progress on assault weapons, but I be- and remarkable gift; his extraordinary sympathies to his wife, Jane, and to his lieve that just holding our ground is ability to see opportunities where oth- children, Stephen, Ellen, Melinda, Mar- not enough. We must continue to move ers could not and to translate those op- tha, and Ned, and their families. We forward. portunities into positive changes for thank them for sharing their husband What is a junk gun? There are many the people of Maine and the Nation. and father with the Nation—America is differences between models, but they Ed Muskie began his career of dedi- a far better place for Ed Muskie’s con- have certain traits in common. They cated public service in the Maine Leg- tributions. are small and light, which make them islature where he initially served as On Saturday, March 30, 1996, an ex- highly concealable. They are made of part of a small Democratic minority. ceptionally moving service for Ed inferior materials like zinc, instead of From this modest beginning, he as- Muskie was held at the Church of the higher quality metal alloys. And they sumed the reins of the Maine Demo- Little Flower in Bethesda, Maryland, lack important safety features that cratic party and revitalized it by exer- followed by burial at Arlington Na- can help prevent accidental shootings. cising the vision and leadership nec- tional Cemetery. At that service, elo- Junk guns are cheap—some can be essary to involve people more fully in quent and heartfelt eulogies were de- bought for as little as $69. The most the political process. His efforts led to livered which greatly moved all of us striking feature in common is that his own election as Maine’s first Demo- who were present. In testimony to Ed junk guns are used disproportionately cratic governor in 20 years, and in 1958, Muskie’s life of quality and honor, I in crimes. he became the first popularly elected ask unanimous consent that these eu- One recent study conducted by the Democratic Senator in Maine’s history. logies be printed in the RECORD. U.C. Davis Violence Prevention Center But the depth and breadth of Ed There being no objection, the eulo- found that junk guns are 3.4 times as Muskie’s vision extended far beyond gies were ordered to be printed in the likely to be used in crimes as are other Maine politics. Upon his arrival in the RECORD, as follows: firearms. This view was confirmed by U.S. Senate, he continued to exhibit REMARKS BY STEVE MUSKIE Chief Ronald Lowenberg, president of the same straightforwardness and inde- Rev. Clergy, President and Mrs. Carter, Ed the California Police Chiefs’ Associa- pendent thinking that won him the Muskie colleagues, family and friends. From April 18, 1996 CONGRESSIONAL RECORD — SENATE S3615 my mother and everyone in our family, I source of your beliefs, where you live or how On the other occasion, and this will be par- want to thank you for coming here today to much money you have doesn’t matter.’’ ticularly memorable to some of you who are remember and honor my father. I expect that When Greg Singleton, from the SW side of on the Senate staff. I was on the Senate floor you will hear others speak about Dad’s polit- Washington, lived with us for several sum- during a budget debate and he called me ical life and the work he did over his long ca- mers, ‘‘It was never any question,’’ said Mar- over. I assumed he wanted my advice on the reer of public service. But I would like to tha, ‘‘that he would be treated exactly like issue at hand. He said, ‘‘I can’t find my fish- take a few minutes to tell you a little about the rest of us.’’ Martha’s statement made me ing pole.’’ He said, ‘‘President Carter is com- some of the things that we, his wife, children realize that we have all grown up and lived ing to Maine to fish and I can’t find my fish- and grandchildren, remember fondly. Thurs- under the strong influence of both the public ing pole.’’ So I called Gayle Cory, the longest day night we had a family dinner to cele- and private Ed Muskie. Today we acknowl- and the loyalist of the Muskie staffers. She brate Dad’s 82nd birthday. We drank a toast edge our love and gratitude and share with was out at his house and I asked her to find to him, sang happy birthday and the young- you a celebration of his life. the pole and I went back and said, Gayle is est of Mom and Dad’s seven grandchildren at the house and she’ll find the pole. And he blew out the candles on two birthday cakes REMARKS BY LEON BILLINGS said, ‘‘Gayle wouldn’t know what a fishing that we brought to the party. Of course, the People who loved Ed Muskie, welcome. As pole looks like.’’ Needless to say, Gayle celebration was bittersweet because Dad was was so often the case in the thirty years I found the pole, I didn’t have to go out to the not physically present. But he was present in worked for Ed Muskie, 15 of which I was house to look for it, and I never learned how spirit, in the thoughts of all of us who paid, I have the honor of speaking for the many fish he caught on the trip. learned from him and loved him, you could staff. Those who actually worked for the I want to close with one story which will see and hear the evidence all around the Senator and those he thought worked for be poignant to those who had the oppor- room—in the sixteen people there—some him. The nameless, faceless staff. A couple of tunity to travel with the Senator, and par- blood relations others bonded by marriage years ago, I had lunch with the Senator. By ticularly to Jane, I think. The Senator al- into the Muskie family. I saw it in their then I was in my early 50s, about the same ways took the window seat on the airplane mannerisms, vocal inflections, proclivity for age he was when he hired me. I decided that and the staff, and Jane, sat on the aisle to puns or quiet contemplation, in a hearty I could start calling him Ed. So we sat down ward off intruders. It was his want to get on laugh or a mischievous twinkle of an eye. and I used his first name and he looked at a plane and lose himself in a book or maga- They were the telltale signs of Dad’s lasting me and said, so its going to be Ed now is it? zine and sometimes not talk to anyone for imprint on our lives. We have all been recall- So Senator * * * Before I tell a couple stories the entire five hour trip. On the occasion ing images of Dad, many of which had been I remember of some of our lighter moments, that Eliot Cutler remembers on a trip to Los lost for a long time, tucked away in the re- I want to say something about your role as Angeles, the Senator said not a word and at cesses of our memories. this nation’s most important environmental the end of the trip as they arrived to the For me, one of the most vivid is an image leader. Many times you would take a globe gate, Eliot got up to proffer him his coat and of cold summer mornings at our Birch Point of the earth in your hand and point out that he looked at Eliot and he said ‘‘what are you cottage on Maine’s China Lake, forty years the earth’s atmosphere was no thicker than doing here?’’ He is smiling now, because I ago. The odor of smoke and the crackling that thin patina of shellac that covered that suspect he would say to us today, ‘‘what are sound of a fire just coming to life greeted globe. And you would say, ‘‘that’s all that we doing here?’’ Senator we came here to say Ellen and me when we padded down the good-bye. We came here to say thank you for stairs and climbed on to Dad’s lap as he sat protects human life. That thin layer, no thicker than that layer of shellac is all that five decades of public service and personal next to the fireplace in a big leather chair. friendship and most of all, we came here to While we warmed ourselves by the fire it was is between humankind and extinction.’’ That analogy in simple terms stated your commit- thank you for being the first steward of the Dad’s way to repeat the story that we most planet earth. enjoyed hearing, a tale of young Biddo Bear ment to achievement of a healthy environ- REMARKS BY MADELEINE ALBRIGHT who woke one cold morning, just as we had, ment. A concept you invented, a concept you and went with his father on a fishing trip. institutionalized and a concept that you Dear friends, my heart is sad for I have lost The story was replete with the kind of sound internationalized. You changed the way the a friend. I asked myself why I feel such a effects the public never heard from Dad dur- world acts towards the environment. That void. Its not only the personal memories, ing speeches. For example, Dad talked about legacy will endure as long as people breathe memories that I share with many of you, al- Biddo Bear’s father’s tug on the starter cord on this earth. From the Clean Air Act of 1970 though that is surely a part of it. It is also of their small boat’s outboard motor— to Global 2000 as Senator and Secretary of the fear that what Edmund Muskie rep- Paroom! Putt-putt-putt! ‘‘They drove down State, you took a problem too few people resented, what he lived for and stood for, the lake to catch some fishes,’’ he said. That cared about and converted it into a move- might somehow go with him. He has been was a time when Dad was governor and the ment and then into a reality. I recall after our connection to each other, he has been demands on his time were less than they the Senate unanimously passed the Clean our link to a proud democratic heritage. He were by the time the last of his children Air Act in 1970, Senator Eugene McCarthy gave validity to a vision of our country and service to it that has influenced each of our were almost grown. My brother Ned recalls said to Senator in the elevator, he said ‘‘Ed,’’ lives. There is an army of us in Washington, that even when Dad was secretary of state, (he could call him Ed) he said, ‘‘Ed you found Maine and around the country who worked he regularly showed up at school, casually an issue better than motherhood, there are for him as he rose through the ranks of serv- dressed and surrounded by security agents to even some people opposed to motherhood.’’ ice to America. Whether we were interested attend a baseball game in which Ned might So everyone here, please take a deep breath, in state government or just plain good gov- be pitching or to help Ned haul luggage and and while holding that breath think just for ernment, clean air and water, a budget proc- boxes into a new dormitory room. Ned of a moment that each of us, our children, our ess that worked, a generous foreign policy course swears the security agents didn’t do grandchildren and the children of centuries that reflected our goodness and strength or any of the work. yet to come, owe a single debt to you, Sen- Another powerful image is of Dad seated at ator Muskie. just because we believed that politics and the dining table surrounded by several of the Sometimes working for you wasn’t a day principles go together. He attracted us. Even youngest grandchildren. They always wanted at the beach. But we were rewarded by your today, when members of the Muskie team to be near him at meal time, because he in- brilliance, your courageousness and your see each other any where, we exchange the evitably played games with them, walking creative public policy mind. You evinced in- political equivalent of the high-five. The rea- his fingers across the table to tickle them or credible loyalty. People stayed with you for son that such a diverse group would have so to catch their tiny hands in his big ones years, for decades. What a luxury it was to much in common is that Ed Muskie didn’t until Mom gently chastised him ‘‘now stop be associated with someone about whom see his public service as compartmentalized. that poppa.’’ The kids grinned feeling they there were no doubt, no doubts about intel- The federal government was not the enemy had gotten away with something. As much as lect, commitment and integrity. And Sen- of state government. Democrats could work I would like to stand here displaying my ator you gave us a lifetime of stories. Some with Republicans. A healthy environment photographs of Dad, these images and others are even repeatable. Each of us has a favorite was important not only here, but globally. like them are much more powerful than and I’m going to tell a couple. Senator While as budget chairman, he often asked those captured by a camera because they im- Muskie was an avid fisherman and though I what was so liberal about wasting money, he prove and evolve with age and the mix of was never invited to accompany him, I want worried about jobs and he never denied the other memories we recall. They will never to recall two occasions both of which in- resources needed to keep America strong. leave us. However wonderful and comforting volved President Carter. On the way back Can you imagine that he actually believed in those images are, more important are the from the funeral of Prime Minister Ohira in the United Nations and Foreign Aid, not lessons we learned and the characters we de- Japan, the President and Senator Muskie only when he was Secretary of State, but veloped as a result of watching and trying to went fishing in Alaska. And when they came even when he was in the Senate. Edmund follow Dad’s strong examples. My youngest back I learned that the President had caught Muskie made history because he understood sister, Martha, told me yesterday that her many fish, and the Senator got one. I asked history. A lot of it he read, a lot of it be ex- interest in social work really grew from him to explain the difference and he said perienced personally and what he didn’t some of those examples. She said: gruffly, ‘‘its easy to catch them if the secret know, he asked about. All of us who have ‘‘Dad believed that all people really are service ties them down.’’ And you know been on the receiving end know how persist- equal. That the color of your skin, the that’s all the explanation I got! ently he could ask questions. The look on his S3616 CONGRESSIONAL RECORD — SENATE April 18, 1996 face or the ‘‘not so gentle’’ reproach when we millions of Americans and the respect of all my friend. Thirty-four years ago this week, I didn’t know the answers became an enor- of us who were privileged to know him. As a received a telephone call that changed my mous incentive to learn. As a result, we grew mark of that respect, citizens across our life. It was from Don Nicoll, Senator with him, In his book we all, but mostly he country and around the world are lowering Muskie’s Administrative Assistant and close himself, were accountable. His roots became the American flag to half staff today. Hillary friend who is here today. He invited me to ours. The great American leaders and their and I extend our deepest sympathy to you come to Capitol Hill to meet the Senator principles became ours. When he arrived at and your family and we hope you will take who was looking for someone from Maine to the State Department in May 1980, having comfort in remembering that your husband fill a vacancy on his staff. To help him evalu- been named by President Carter, he brought has left an enduring legacy of public service ate me, Don asked that I prepare a memo- with him his capacity for endless questions. that continues to inspire us all. We are keep- randum on the legal aspects of an issue that He brought Leon, Carole, Gayle and Berl. ing you in our thoughts and prayers. was then being considered by the Senate. I The foreign policy bureaucracy had a bit of ‘‘Sincerely prepared the memo and went up for the trouble with the approach, not to mention ‘‘Bill Clinton, President of the United interview. I thought the memo was pretty with Leon. In the department and over at the States.’’ good, but unknowingly I had made a huge national security council, there were rum- Dearest Jane, thank you for sharing this mistake. I reached a conclusion that was the blings. ‘‘Why all these questions about envi- great man with us. opposite of the Senator’s. I had never met ronmental consequences, fiscal implications, REMARKS BY GEORGE MITCHELL him but he didn’t bother with any small talk. Within minutes of our introduction, he congressional consultations and public opin- Jane, Steve and Lexi, Ellen and Ernie, unleashed a ferocious cross-examination. He ion.’’ As Secretary of State he did not leave Melinda and Eddie, Martha, Ned and Julia, came out from behind his desk, he towered his old identities behind. He was still Mr. and other members of the family, Cardinal over me, he shook his finger at me and he Clean, the father of the budget process, the Hickey, Bishop Gerry and other members of took my memo apart, line by line. I was chief sponsor of the War Powers Act, an the clergy, President and Mrs. Carter and stunned, so intimidated that I couldn’t con- elected official responsive to the people. Still other distinguished guests and friends of Ed trol the shaking of my legs even though I he insisted on looking at all sides, still he Muskie. Senator Muskie once said that he was sitting down. I tried as best as I could to wanted to reason everything out. That is didn’t like being called ‘‘Lincolnesque’’ but why he got along so famously with his dep- explain my point of view and we had what it fit. With his lanky frame, his long and you might call a lively discussion. As I left uty, Warren Christopher, another who values craggy face, his powerful voice, he was an principle and reason. Together, they worked he said the next time you come in here, imposing figure. He was loved and trusted by you’ll be better prepared. That’s how I patiently to answer the questions and solve the people of Maine because they saw in him the problems our nation faced. Most impor- learned I’d been hired and I sure was better the qualities they most admire, independ- prepared the next time. Ed Muskie was even tant they negotiated the safe return of the ence, fairness, the lack of pretense, the will- hostages from Iran. Reuniting families and more imposing intellectually than he was ingness to speak the truth even when it hurt. physically. He was the smartest person that leaving for the successor administration a He was plain spoken even blunt at times and clean slate from which to begin. When he left I ever met with an incisive analytical mind they admired him for it. He had his faults that enabled him to see every aspect of a his official foreign policy post, along with and he made mistakes as do all human the rest of us in January, 1981, he simply problem and instantly to identify possible beings but he conquered his faults and he solutions. He challenged everyone around began pursuing public policy by private learned from his mistakes and as a result, he him to rise to his level of excellence. No one means. Although he was quite in the opposi- became the greatest public official in quite reached his level, but those who took tion he did not use his various platforms or Maine’s history and one of the most effective up the challenge were improved by the ef- chairmanships, of the Center for National legislators in our nation’s history. He ac- fort. Those who knew him learned from that Policy and Georgetown’s Institute for the complished much in a long and distinguished relationship, those of us who worked for him, Study of Diplomacy to mention two of my career. In that impressive record, nothing most of all. Just about everything I know favorites, for the politics of protest but char- surpasses what he did to protect America’s about politics and government I learned acteristically for the politics of healing. For natural environment. Harry Truman once from him. Just about everything I have ac- example to consider mending relations with said that men make history, not the other complished in public life, can be traced to Cambodia and Vietnam, and in this, as in so way around. In periods where there is no his help. No one ever had a better mentor or many other things he was often ahead of his leadership society stands still. Progress oc- a better friend. No discussion of Ed Muskie time. curs when courageous skillful leaders seize would be complete without mention of his Before I end with a personal message from the opportunity to change things for the bet- legendary temper. After he became Sec- President Clinton, I must say one more ter. Ed Muskie changed things for the better. retary of State, a news magazine in an arti- thing. I would obviously be here in my ca- When he went to the Senate, there were no cle described his temper as entirely tactical, pacity as a proud member of the Muskie po- national environmental laws, there was no something that he turned on and off at will litical family no matter what. But I would environmental movement, there was hardly definitely not be here or anywhere else rep- to help him get his way. I saw him a few days an awareness of the problem. Industries and resenting the President of the United States later, he showed me the article, in fact he municipalities dumped their wastes into the if it were not for Ed Muskie. It might not be read it to me, and then he said laughingly, nearest river and America’s waters were, for the right answer for feminist groups and I do ‘‘all these years you thought my temper was love Eleanor Roosevelt. But the truth is that the most part, stinking open sewers. The air for real.’’ Well, I said, you sure fooled me, this man was my role model. While we all was unhealthy, the water polluted, Ed and a lot of other people. I think the reality had a good laugh when he sometimes slipped Muskie changed that. It’s one thing to write is that it was both. When he yelled at you it into political incorrect vocabulary or shield- and pass a law, it’s another thing to change was terrifyingly real, but you could never be ed his female staff members from some of his the way people live, it’s yet another and a sure that it wasn’t also a tactic to move you salted language, he was the man who earlier far more difficult thing to change the way his way, to get you to do what he wanted than others enabled women to take their people think. Ed Muskie did that. With done and that’s the way he wanted it and place as public servants. Because he had knowledge, skill, determination and patience liked it. Almost as unnerving as one of his faith in us, we had faith in ourselves. He was he won approval of the Clean Air Act and the eruptions was the swiftness with which it the first to name a woman, Karen Hastie- Clean Water Act and America was changed passed and was forgotten. He was a passion- Williams, Chief Counsel of the Budget Com- forever for the better. Any American who ate man and expressed himself with emotion. mittee, as head of the Congressional Budget wants to know what Ed Muskie’s legacy is His point having been made, he moved on, he Office, Alice Rivlin, he gave me the respon- need only go to the nearest river. Before Ed didn’t believe in looking back or nursing sibility as his chief legislative director, for Muskie it was almost surely not fit to drink grudges and maybe that’s how he got past coordinating Leon, Al From, Doug Bennett or to swim or to fish in, because of Ed the disappointments he suffered. It surely and John McKvoy. The U.N. Security Coun- Muskie it is now almost surely clean. A also helped that he was a secure man, con- cil is a piece of cake. No wonder I learned source of recreation even revenue. Despite fident in, and comfortable with his values. about the politics of foreign policy. Finally I the efforts of some to turn back the clock, Those values were simple, yet universal in want to read a letter: these landmark laws will survive because the their reach and enduring in their strength. ‘‘DEAR JANE: Hillary and I were so sorry to American people know what a difference he They were faith, family and country. He was learn of Ed’s death and our hearts go out to has made in their lives. It has been said that constant in his faith. He was comforted by it you. Our nation was blessed to have Edmund what we do for ourselves, leaves this world and he was motivated by its message. The Muskie in public service for so long. As gov- with us, what we do for others remains be- prayer printed on the back of the program ernor, as Senator and Secretary of State. He hind. That’s our legacy, our link with im- today written by Senator Muskie more than was a leader of conscience and conviction mortality. Ed Muskie’s legacy will stand as a quarter century ago with its emphasis on and I will always be grateful for his wise a living memorial to his vision. It is his im- compassion and tolerance was the essence of counsel. His broad knowledge of both inter- mortality. Each of us could say much more his faith. He was totally devoted to his fam- national and domestic affairs. His stalwart about Ed Muskie’s public career but we are ily, especially to Jane. They would have protection of our precious natural resources here today to pay tribute to Ed Muskie the celebrated their 48th anniversary in May and and his unshakable integrity as a public fig- man, so I would like to say a few words for all those years, she supported him, she ure and private citizen earned him support of about the man who was my hero, my mentor, comforted him, she helped him. He was a April 18, 1996 CONGRESSIONAL RECORD — SENATE S3617 passionate believer in democracy and espe- me. I think that Ed was so successful in distance from me I might add, and Ed only cially in American democracy. I had the bringing this coalition together and healing caught one fish. So after we got through privilege of traveling all over Maine and all the disparities between Capitol Hill and the fishing, Ed came up to me and said ‘‘Mr. this country with him. Back when I was on White House, because when he spoke you President, I’d like to make a comment about Senator Muskie’s staff we didn’t have the re- knew at least three things: First, he deeply the trip’’ and I waited for his approval and he sources available today so we used to share believed what he said, second, he knew what said ‘‘you really need to practice your cast’’ a motel room in small towns all across he was talking about, and third, it was the and I said ‘‘thank you very much, Mr. Sec- Maine as I drove him from one appearance to absolute truth. So I admired him from a dis- retary.’’ Later he sent me a wonderful fish- another. And I can recall the many times he tance until the Spring of 1972 when Ed was ing rod that I still have Leon. In the last few spoke of his Father who he greatly admired campaigning for President and he came down days of our administration it was Ed and who he was very influenced by. His Fa- to Atlanta for a fund-raiser. I very eagerly Muskie’s integrity, his sound judgment, his ther was a Polish immigrant who, like many invited him to spend the night with me at wisdom and his determination and his pa- others who fled from tyranny, flourished in the Governor’s mansion because of my admi- tience that had made it possible for us to the free air of this blessed land. No person I ration and because I had in the back of my bring every hostage home, safe into freedom. have ever heard and few in our history could mind, you won’t believe this, the thought Typically, Ed Muskie did not seek any credit match Ed Muskie’s eloquence on the mean- that he was going to get the nomination and for that achievement, he let others take the ing of America. Once in public office, his pro- he might be looking for a southern governor credit. I looked up last night the citation I found respect for American democracy led to be his running mate. So I wanted to make read when I gave Ed Muskie the Presidential him to act always with dignity and re- a good impression on him and I wanted him Medal of Freedom. ‘‘As Senator and Sec- straint, lest he dishonor those he rep- to think that I was a little more sophisti- retary of State, candidate and citizen, Ed- resented. As a result, he was the ideal in cated than I was. So that night in the so- mund Muskie has captured for himself a public service, a man who accomplished called Presidential suite in the front of the place in the public eye and in the public’s much without ever compromising his prin- Governor’s mansion, late at night he was heart. Devoted to his nation and our ideals, ciples or his dignity. Character is what you very tired, he had been campaigning all day, he has performed heroically and with great are when you are alone in the dark as well as and I said ‘‘Senator would you like to have fortitude in a time of great challenge.’’ His with others in the daylight. Ed Muskie’s a drink?’’ He said ‘‘yes Governor I believe I response was you forgot that I was also Gov- character was strong. Strong enough to light would.’’ I said ‘‘well what would you like,’’ ernor. This week I made a statement about up other people’s lives. He taught us that in- he said ‘‘I’d like Scotch and milk.’’ I was my friend Ed Muskie and I closed the state- tegrity is more important than winning. taken aback. I knew about Bourbon and ment by saying of all the people I’ve ever That real knowledge counts more than slo- Branch Water and a few other drinks of that known, no one was better qualified to be gans or sound bites. That we should live our kind but I tried to put on the appearance of President of the United States but Jane, I’d values rather than parading them for public being knowledgeable and I left him in the like to say now that I don’t believe many approval. Many years ago, Maine’s greatest room and went down to the kitchen to pre- Presidents in history have ever contributed poet, Henry Wadsworth Longfellow, wrote of pare a drink. I got about halfway down the as much to the quality of life of people in our another great man these words: ‘‘Were a star hall and a terrible question came to me and nation and around the world as your hus- quenched on high for ages would its light I went back into the room and I think ruined band, Edmund Muskie. I am grateful to him. all my chances of being on the ticket. I said still traveling downward from the sky shine Thank you very much. ‘‘is that sweet milk or buttermilk?’’ He very on our mortal sight. So when a great man Remarks by Edmund S. Muskie, Jr. gently said ‘‘sweet milk.’’ Later when I was dies for years beyond our kin, the light he I could not be more proud than to be here elected President, I turned to Ed Muskie as leaves behind him lies upon the paths of to read to you a prayer that my father one of my closest and most valued advisers. men.’’ A great man has died and for years his wrote. He delivered this prayer at the Presi- He was still a hero to me and I turned to him life will shine upon our paths. Goodbye Ed, dential Prayer Breakfast here in Washing- often. In 1980, as some of you would remem- may God bless you and welcome you. ton, DC in January of 1969. ber, my administration was in trouble. Fifty- Remarks by President Jimmy Carter ‘‘Our father, we are gathered here this three hostages were still being held by mili- morning, perplexed and deeply troubled. We Ed Muskie had the appearance, the man- tants in Iran. In April we tried to rescue are grateful for the many blessings You have nerisms, the actions of a true statesman. I them and my Secretary of State in protest bestowed upon us.—the great resources of first knew about him was when I became resigned with a great deal of public fanfare. land and people—the freedom to apply them Governor and faced the almost overwhelming I was facing a revolution in my own party to uses of our own choosing—the successes lobbying pressure from the power companies from Senator Kennedy and others who were which have marked our efforts. We are per- with their smokestacks spewing forth back more liberal than I and it seemed very plexed that, notwithstanding these blessings, smoke and the thirteen pump mills in our doubtful that I would even be renominated we have not succeeded in making possible a state that were destroying our rivers. I saw as an incumbent President. I turned to Ed life of promise for all our people. In that the difficulty then of an incredible political Muskie who had a secure seat in the U.S. growing dissatisfaction threatens our unity battle. But there was a hero in Washington Senate and I ask him if he would serve as and our progress towards peace and justice. which has been mentioned several times who Secretary of State, and after checking with We are deeply troubled that we may not be faced much greater lobbying pressure from George and others, he said ‘‘yes.’’ In a way I able to agree upon the common purposes and nationwide pollutants of our streams and thought that I was doing him a big favor but the basis for mutual trust which are essen- air. Ed Muskie changed all of that. One of when we had the little ceremony in the tial if we are to overcome these difficulties. my heroes in Georgia was Dr. Benjamin White House, I introduced him as the new And so, our Father, we turn to you for help. Mays a graduate of Bates College which was Secretary of State being willing to serve and Teach us to listen to one another, with the very close to Ed Muskie. And in an his comment was, ‘‘Mr. President, I’m not kind of attention which is receptive to unpublicized way, Ed Muskie was also a going to say thanks, I’m going to wait a few points of view, however different, with a champion of basic civil rights at a time when months and then make a judgment about healthy skepticism as to our own infallibil- it wasn’t popular to be so. And he and Dr. whether I thank you or not.’’ But he brought ity. Teach us to understand one another with Benjamin Mays worked hand-in-hand to in- to the State Department, as Madeleine just the kind of sensitivity which springs from spire people like me and other governors and pointed out, his formidable knowledge as a deeply-seated sympathy and compassion. public servants around the country who long-time Chairman of the Budget Commit- Teach us to trust one another, beyond mere looked on him with great admiration. I hope tee, of every domestic and foreign policy pro- tolerance, with a willingness to take the everyone here will read the prayer on the gram that our nation had and that states- chance on the perfectibility of our fellow back of the program that George just men- manship from Maine that let the members of men. Teach us to help one another, beyond tioned that was given by Ed Muskie at a our Congress, the people of our nation and charity, in the kind of mutual involvement Presidential prayer breakfast in 1969, and see leaders throughout the world know, that which is essential if a free society is to work. how pertinent it is to our nation’s capital here was a man who spoke with absolute in- We ask it in Jesus’ name, Amen.’’ today, how Ed Muskie is needed. We saw tegrity. When the Prime Minister of Japan f then a budget problem in Washington and he passed away, Ohira, who was one of my clos- decided to do something about it. He helped est friends as Leon has pointed out, I wasn’t CRISIS IN LIBERIA orchestrate and get passed a new budget law. going to mention this, we went to the fu- Mr. PELL. Mr. President, the re- He became the first Chairman of the Budget neral with a very devout expression on our sumption of violence in Liberia is of Committee and despite the equally formida- face but arranged to stop in Alaska for a day great concern to me. A factional stand- ble challenges that we now face, that he of fishing which Ed suggested as a way for off over an ousted government minister faced then, he was able to bring order out of me to forget my troubles. I don’t guess he has led to widespread looting, arson, chaos and to work harmoniously not only was worried about his own troubles. We went with the Senators, but members of the House to a little lake about an hour and one-half and murder, plunging the country into of Representatives, jealous of their own pre- helicopter flight from Anchorage and were a state of chaos. This spasm of violence rogatives and with the Presidents who served fishing for Grayling and I have to confirm is the first major interruption of the with him. Democrats and Republicans, Presi- part of Leon’s story, I did catch 15 or 20 Abuja Accords, which have held peace dent Nixon, President Ford, and President Grayling, the Secret Service were quite a together in Liberia since last August. S3618 CONGRESSIONAL RECORD — SENATE April 18, 1996 The deterioration of Liberia is dis- peace. The people of Liberia should not disarmament process and protect innocent heartening. Since 1989, the civil war have to endure any more violence. If civilians; has caused the deaths of more than the United States pulls out of Liberia, And whereas the rebels and government 150,000 people and has displaced more it will certainly put the last nail in the troops, some as young as six are still heavily armed; than 800,000. Thousands of children coffin for this poor, African nation. And whereas the recent carnage that began have been conscripted to the armed Moreover, if the situation in Liberia April 5, 1996 is so war torn that the United forces. The resumption of violence continues to unravel, the regional im- States is evacuating its citizens from Libe- threatens the lives of even more Libe- plications will be of monumental pro- ria; rians. The potential of a massive hu- portions. And whereas the recent massacre of women manitarian disaster is high, as supplies I believe the United States must have and children is so contiguous that Ameri- of food and water dwindle, sanitary an immediate response to this crisis. cans, Americans of Liberian descent, and Li- berians residing in Rhode Island convened on conditions deteriorate, and outbreaks As a result, I am cosponsor of the resolution introduced this afternoon by my April 14, 1996 and after deliberation resolved of cholera erupt. that the organization petitions the United Mr. President, The United States has distinguished colleague from Wiscon- States Government to intervene to help a special responsibility toward Liberia. sin, Senator FEINGOLD. Among others, bring the carnage to an immediate end. Founded in the early 19th century by this resolution urges the administra- We therefore, appeal to the United States freed slaves, the United States and Li- tion to support West African peace- to: beria have had almost 150 years of un- keepers, to influence other nations to 1. intervene directly to bring the carnage interrupted friendship. In World War II, support the peacekeeping force, and to to an end; lead efforts in the United Nations to 2. use it economic, diplomatic and military the airfields and ports of Liberia were leverages to encourage the warring factions a key part of the link to supply the sanction those parties which violate to call for, and honor a true cease-fire and battlefields in North Africa and Eu- the U.N. arms embargo on Liberia. disarmament; rope. During the cold war, the people of I would like to add that it is impera- 3. convene a meeting of the war-lords in Liberia were at many times the only tive that the international community, the United States to work out modalities for reliable ally of the United States in Af- at its highest levels, make public their the enforcement of the cease-fire as in the rica. Liberia served as a ‘‘listening views on the atrocities in Liberia. The case of Bosnia; 4. to help plan, monitor, and enforce the post’’ and headquarters to the United international community, moreover, must actively engage with ECOMOG disarmament process; States intelligence services. At the 5. impose an embargo on the shipment of United Nations, Liberia consistently and ECOWAS, to find a lasting solu- arms to any of the warring factions; voted for the United States position tion. And most importantly, I call 6. freeze all assets of the war-lords, their even when this position was unpopular upon the competing warlords to stop family members, and representatives; and with other developing nations. the pillaging of Liberia. There has al- 7. deny all war-lords, their family members In addition, I would like to add that ready been too much bloodshed, too and representatives visas to travel to the I have a special interest in this war- much hope lost. United States except for a conference to resolve the conflict. EXHIBIT 1 devastated country as so many emi- We call on all peace loving countries of the grants from Liberia have settled in LIBERIAN COMMUNITY ASSOCIATION world, the United Nations and other inter- Rhode Island. Just this morning, a del- OF RHODE ISLAND, INC., national organizations to join the United egation of approximately 400 Liberian- Providence, RI, April 18, 1996. States, a country of goodwill that has prac- Americans who live in my State par- Petition of the Liberian Community Asso- tically resolved all conflicts in modern ticipated in an impressive demonstra- ciation of Rhode Island to the Government times, to do the same for Liberia. We are of the United States tion of their eagerness for peace to be pleading. Please help us. restored to this tragically war-torn Subject: Plea for an Immediate End To the NUCLEAR SECURITY Human Carnage in Liberia country. Mr. BIDEN. Mr. President, I rise These Rhode Islanders, led by long- Whereas the Republic of Liberia was found- today to call attention to the single ed and funded by humanitarian societies in time community leader Lady Bush, greatest security threat to Americans the United States, with the appropriation in the post-cold war ERA—the possibil- marched several miles into downtown and assistance of the American Government Providence where they demonstrated as a safe haven for emancipated people of ity that weapons of mass destruction in front of the Federal Courthouse color; could be acquired by rogue states, Building and met with members of my And whereas throughout its one hundred criminal organizations, or terrorists, staff and the staff of my colleague, forty nine years of independence, the people and used against American targets. and Government of these United States of Senator CHAFEE. In the coming weeks, I hope that this The demonstrators presented a peti- America have manifested friendly and be- body will have the opportunity to act nign interest in Liberia’s right to exist as a on the Chemical Weapons Convention tion, entitled ‘‘Plea for an Immediate sovereign state, lending aid in times of na- End To the Human Carnage in Libe- tional exigencies and emergencies; and reduce one portion of this threat. ria.’’ It urges active U.S. Government And whereas Liberia has always shown its Today, however, as President Clinton efforts to end the fighting and places gratitude and appreciation to the Govern- prepares to join President Yeltsin and the blame for the latest outbreak of ment and people of the United States by the G–7 leaders in Moscow for a nuclear terror and fighting squarely on the as- being staunch ally and trusted African friend safety and security summit over the sorted warlords whose forces control during times and circumstances critical to next 2 days, I would like to focus my the national interest of the United States; remarks on the nuclear threat. various portions of the capital and the And whereas the on-going genocidal civil country. conflict in Liberia resulted from the rash, di- President Clinton has placed nuclear I ask unanimous consent that a copy abolical, dictatorial, and military rules nonproliferation at the top of the U.S. of that petition be printed in the which set the stage for subsequent atrocities national security agenda—he is clearly RECORD at the conclusion of my re- and infrastructure destruction, causing the committed and willing to lead on this marks. displacement at home and abroad of over one issue. Vice President GORE’s regular The PRESIDING OFFICER. Without half the population, many of whom are meetings with Russian Prime Minister stranded in the United States; Chernomyrdin also have advanced nu- objection, it is so ordered. And whereas the civil war since 1989 has re- (See exhibit 1.) sulted into the slaughter of a quarter million clear security. Indeed, in the last 3 Mr. PELL. Mr. President, it is under- people, most of whom are civilians; women, years we have seen important agree- standable that the international com- children and the elderly; ments and cooperative projects be- munity is hesitant about investing And whereas the war-lords do not have the tween U.S. officials and their counter- anything more in Liberia. It is up to fortitude to honor the many peace accords parts in Russia and other Republics of the faction leaders who constituted the that they themselves signed, resulting into the former Soviet Union. last Council of State and who control the carnage that began on April 5, 1996 and Despite these positive steps, however, the rival forces to stop the looting and continues to date, described by the inter- the threat before us remains immense, national press and the United States Govern- killing and to rebuild a sense of nament as the worst in three years; and the path to nuclear security re- tional unity. The rival warlords must And whereas the EMOMOG has proven that mains long and difficult. We need to demonstrate that they are ready for it cannot enforce the cease-fire, monitor the understand the potential magnitude of April 18, 1996 CONGRESSIONAL RECORD — SENATE S3619 the threat, and muster the resolve and mentary economics tells us that with- not been paid in months. I have heard resources to address it effectively. out intervention, a supply curve and a that the senior staff of one nuclear fa- THE NATURE OF THE THREAT demand curve will intersect—and you cility abandon their posts a few hours Mr. President, Soviet nuclear mis- will have a transaction. It is incum- a day to tend to their potato gardens, siles no longer point at American bent upon us to intervene and prevent so that they will have food to eat. It cities. With the START process, we even one of these potentially deadly seems to me that these conditions are have also seen and hopefully will con- transactions from occurring. so ripe for corruption that the threat tinue to see significant reductions in These are the key challenges we face of an inside job is much greater than strategic nuclear weapons in the in doing so: the threat of an outside thief entering former Soviet Union. But these arms How do we develop a comprehensive a nuclear facility—as easy as that may control successes should not give us a accounting system for all nuclear ma- be. false sense of security. terial in the former Soviet Union? Fifth, current border controls Over 100,000 weapons or weapons How do we gather and physically pro- throughout the former Soviet Union equivalent material remain strewn— tect nuclear material in a limited num- are notoriously weak. If smuggled nu- literally strewn—about Russia, ber of secure sites? clear material passes through Europe, How do we safely dispose of excess Ukraine, Kazakhstan, and Belarus. The we have some chance that intelligence nuclear material? officials and law enforcement can centralized system that prevented the How do we prevent the theft and interdict it. However, trafficking possible theft or diversion of this im- smuggling of nuclear material? routes through the Caucasus or Central mense quantity of fissile material dur- And, how do we prevent former So- ing the cold war no longer exists. viet nuclear experts from selling their Asia are another story—the chances of I should also note that each year as knowhow to rogue states or terrorists? successful interdiction are slim to more nuclear warheads are dismantled, The answers to these questions are none. additional tons of weapons-grade mate- not exclusively of concern to the Unit- Finally, we have the problem of the rial move from relatively more secure ed States. They are vitally important thousands of nuclear scientists and military facilities to less secure nu- to Western Europe, Japan, and even to technicians in the former Soviet Union clear storage facilities. The 3,000 war- Russia. with knowledge about nuclear weapons who are looking for ways to make a heads that are dismantled each year THE SITUATION IN THE FORMER SOVIET UNION yield 15 tons of plutonium and 45 tons Perhaps it would be useful if I briefly living in the new world order. Their ex- of highly-enriched uranium. walked through what we know about pertise would certainly be welcome in Of this veritable cornucopia of dan- the situation in Russia today to dem- some aspiring nuclear states that im- gerous fissile material spread across onstrate the difficulties we face in mediately come to mind. the territory of the former Soviet meeting these challenges. THE U.S RESPONSE Union, only a small fraction would be First, the collapse of the Soviet com- After a slow start 4 years ago, many required to wreak unspeakable dam- mand and control security system has of these problems are now being ad- age. been replaced by chaos and the absence dressed by our Departments of Defense It takes only 25 kilograms of highly of many controls at sites where nuclear and Energy. The Energy Department, enriched uranium or 8 kilograms of materials are stored. In the context of for example, has equipped a number of plutonium to create a weapon capable Russia’s current tumultuous social and nuclear facilities in the former Soviet of massive destruction. We are talking economic conditions, we are talking Union with fences, monitors, and sen- about an amount of uranium the size of about an environment conducive to sors. The United States Enrichment a softball—or a baseball in the case of theft and extortion. Corporation has arranged for the pur- plutonium. That small amount of ma- Second, the Soviet Union had no chase of 500 metric tons of highly en- terial could be easily concealed and comprehensive accounting system for riched uranium to be converted into transported in a sturdy briefcase or a nuclear weapons and fissile material— commercial reactor fuel. Newly created backpack. certainly no computerized inventory. international research institutes have As my colleagues know, the greatest In other words, we—including the Rus- employed hundreds of Russian nuclear barrier to overcome in manufacturing sians—do not even know exactly where scientists. Such cooperative efforts a nuclear weapon is acquiring the ap- all of the Soviet Nuclear material is need to be evaluated and duplicated on propriate grade and quantity of fissile stored or how much of it exists. We a much larger scale. material. After that, it just takes a lit- think most nuclear material is located I commend my distinguished col- tle time, money, and technical know- in 80 to 100 sites. But there may be an- leagues Senator NUNN and Senator how. other 40 sites. We think the Soviet LUGAR for bringing attention to global A determined terrorist or rogue state Union produced some 1,200 metric tons proliferation threats through Senator does not even need to build a perfectly of highly enriched uranium and some NUNN’s recent hearings of the Perma- designed atomic bomb with the highest 200 metric tons of plutonium. Needless nent Subcommittee on Investigations grade fissile material to create un- to say, it would be difficult to deter- and Senator LUGAR’s hearings last au- imaginable terror. A weapon built of mine if a few kilograms of this mate- gust on the issue of Loose Nukes. I crude, low-grade nuclear material such rial were misplaced here and there. might add that Senator LUGAR’s hear- as a nuclear radiological device would Third, the lack of physical protection ings are the only hearings that have be sufficient to generate widespread of nuclear material in the former So- been held on this critical issue in the panic. viet Union is shocking. Nuclear mate- Foreign Relations Committee in the This is not just doomsday rhetoric. rial is stored in containers without 104th Congress. Does anyone actually deny that there seals to prevent tampering. Many of Mr. President, I think that it is exists a great demand today for nu- the labs, research centers, and power worth asking: are we directing Ameri- clear material? Those who are not yet plants with nuclear material do not ca’s limited resources proportionately convinced need only consider the have perimeter fences, electronic sen- to meet a clear and present threat chilling incidents that have occurred sors, or monitoring cameras to deter which I and many of my colleagues re- over the last few years. As my col- and detect intruders. Instead, U.S. offi- gard as our greatest national security leagues are well aware, gram and kilo- cials have seen nuclear rods stored in challenge? gram quantities of weapons-grade ura- metal lockers secured with padlocks. In 1991, my colleagues Senators NUNN nium—almost surely leaked from the According to the Russian Government, and LUGAR had the foresight to devise former Soviet Union—have been seized 80 percent of its nuclear facilities—80 the cooperative threat reduction pro- in Moscow, Munich, and Prague. In ad- percent—do not have radiation detec- gram to assist the states of the former dition, dismantled parts of Soviet nu- tors to prevent those on the inside Soviet Union in dismantling nuclear clear missiles have made their way to from walking out the door with nuclear warheads and protecting nuclear mate- Iraq. material. rials. Over the last 5 years funding for We know that the demand exists. We Fourth, there are nuclear technicians the Nunn-Lugar program has totaled also know that the supply exists. Ele- and guards at these facilities who have $1.5 billion—an average of $300 million S3620 CONGRESSIONAL RECORD — SENATE April 18, 1996 per year, or about one-tenth of 1 per- Mr. President, it is my hope that the periment farm to work his way cent of our annual defense budget. In nuclear safety and security summit in through college. After graduating, he addition, this year’s funding level was Moscow this week will help propel the returned to Franklin County, where he cut 25 percent from last year’s level. world’s leaders to take immediate pre- operated a feed mill and poultry com- In contrast, consider how much time, ventative and rational steps toward nu- pany and served in State government. money, and energy we have spent on clear security. The alternative is to One of his children, Elizabeth Camp- the proposed missile defense system to delay action until after our first nu- bell, followed him into public service, meet the improbable long-range ballis- clear terrorist incident—whether in a becoming a Federal magistrate in Bir- tic missile threat, which we are told is Moscow park, a Tokyo subway, or a mingham. at least 15 years away. We have spent New York office building. A.W. Todd was an outstanding public some $35 billion over the years on mis- Mr. President, no other nation can servant who will be greatly missed. I sile defenses. I find it hard to believe match the expertise and resources of was proud to have known and worked that this disparity in spending cor- the United States. We must be the with him over the years. I extend my responds to the threats we face. leader in promoting cooperative efforts sincerest condolences to his wife, As I have repeatedly stated on this to reduce the nuclear threat. Invest- Robbie, and their entire family in the floor, a long-range ballistic missile will ments we make in this area today will wake of this tremendous loss. not be the most likely means of deliv- reap a future return in the form of en- f ery of a weapon of mass destruction to hanced security for all Americans. the United States. No. A much more TRIBUTE TO CHARLES E. f likely scenario is that a terrorist group GRAINGER will smuggle material and parts for a TRIBUTE TO FORMER ALABAMA Mr. HEFLIN. Mr. President, one of nuclear, chemical, or biological device AGRICULTURE COMMISSIONER the major reasons that Huntsville, AL, onto our shores—perhaps by any of the A.W. TODD has been nationally recognized as one many routes used by narcotics traffick- Mr. HEFLIN. Mr. President, my long- of the country’s top high-technology ers—and then reconstruct a weapon of time friend A.W. Todd, who served 3 growth areas is the strength and vital- mass destruction, put it in a van, and terms as Alabama’s commissioner of ity of its community leadership. One of detonate it in near an important Amer- agriculture, passed away at his home these visionary leaders is Charles E. ican landmark. on March 29, 1996. He was regarded as Grainger, vice president of administra- That is the more likely threat, and one of our State’s most popular govern- tion at Teledyne Brown Engineering that is where we should be focusing the ment leaders and one of the most color- and 1992 chairman of the Huntsville- bulk of our energies, not on reviving ful and effective politicians to ever Madison County Chamber of Com- star wars. hold office in Alabama. merce. Recently, he received the cham- THE NUCLEAR SUMMIT A long-time Democrat, A.W. Todd ber’s Distinguished Service Award. Mr. President, I hope that my col- represented Franklin, Colbert, and As chairman of the chamber 4 years leagues recognize that we are engaged Marion Counties in the State Senate ago, Charlie Grainger expanded its eco- in a race against time. Either we will from 1950–1954. Colbert is my home nomic development emphasis to create help secure this material and provide county. His terms as commissioner of a coordinated Partnership for Eco- our citizens with the safety to which the Department of Agriculture and In- nomic Development. Madison County they are entitled, or rogue elements dustries ran from 1955–1959, 1963–1967, led all Alabama’s counties in new plant will procure this material and use it to and 1991–1995. He was also a guber- and equipment investments that year. blackmail civilization. natorial candidate in 1958 and 1966. He As vice president of administration The danger of uncontrolled nuclear had boundless energy and was a tireless at Teledyne Brown, a major defense material is a first level national secu- campaigner. In fact, the last time I saw contractor, Charlie is responsible for rity threat to the United States of him, A.W. told me that he was plan- coordinating governmental relations America and a first level national secu- ning to run again for agriculture com- activities with agencies and Congress. rity threat to our friends and allies. We He has overall management respon- cannot simply ignore the problem and missioner in 1998. He is regarded by many as the best sibility for the departments of human leave if for Russia to solve on her own. agriculture commissioner Alabama resources, facilities, public relations, Likewise, Russia cannot simply down- ever had. The small, family farmer was administrative services, security, tech- play the potential threat and delay im- always foremost in his mind, and the nical communications, and computing plementing concrete measures. Indeed, resources and technology. He has held Russia itself is a target—just last No- agriculture community in the state his current position since 1978, having vember Chechen separatists placed ra- benefitted directly from his devotion served as director of administration dioactive material in a Moscow park. and hard work. Among his many ac- To be successful, the nuclear safety complishments as commissioner was from 1967 to 1978. He joined Brown En- and security summit must build a glob- the coliseum program, which resulted gineering as assistant to the director of al consensus on the nature of the in 6 coliseums being built statewide. He administration in 1963. threat before us and generate wider co- also oversaw the expansion of the farm- Charlie was elected to the Alabama operation for swift action. ers’ market program to Birmingham, House of Representatives in 1968 and The critical first step must be to im- Montgomery, Slocomb, and Mobile. 1970, and was an award-winning legisla- prove the physical protection of nu- The quality of eggs sold in the State tor. He sponsored a water pollution clear material at the source—secure was dramatically improved through control act and a school bus safety act, the material at a limited number of the Todd Egg Law, which placed new both of which became national models. sites and institute a comprehensive ac- inspection requirements on eggs and Both pieces of legislation were named counting system. That, in my opinion, established a grading system. after their sponsor by joint resolution, is the most important agenda item for While serving in his last term, A.W. which is somewhat rare. As a member the leaders of the G–7 and Russia at the Todd had the distinction of being the of the Ways and Means Committee, he nuclear summit. oldest elected State official in Ala- secured funding to begin the University World leaders at the summit will also bama and was among the oldest in the of Alabama in Huntsville nursing edu- discuss ways to improve cooperation in entire country. He took pride in intro- cation program, to establish physical countering nuclear material smug- ducing himself as the country’s oldest health facilities at Alabama A&M Uni- gling. Given the limited success we ‘‘Young Democrat.’’ He was an old- versity, and to complete the Hunts- have had in interdicting narcotics traf- school Democrat who grew up in ville-Madison County Mental Health fickers, I am not optimistic about the Belgreen, Alabama. When he was only Center. He served as an elected mem- prospects of interdiction alone to pre- 13, he was permanently injured in a ber of the Alabama Democratic Execu- vent the proliferation of nuclear mate- hunting accident that resulted in his tive Committee from 1966 through 1990, rial. Nonetheless, much more can and left arm being severed. serving as a delegate to the 1980 Demo- should be done to improve border con- This did not slow him down at all. He cratic National Convention. He was a trols and intelligence cooperation. used a job on Auburn University’s ex- presidential campaign coordinator for April 18, 1996 CONGRESSIONAL RECORD — SENATE S3621

Senator John GLENN in 1984 and Vice He spent a total of 35 years with that ethics dictated that he would let the President AL GORE in 1988. paper, his name and writings becoming facts speak for themselves. He never A native of Lawrence County, Ala- synonymous with Alabama political tried to make a career of finding dirt bama, Charlie grew up in Sheffield, at- coverage and analysis in the nation’s on government officials. He was not a tended Florence State College, and capital. He also served as the Washing- practitioner of yellow journalism and earned a master of science degree in ton correspondent for the Chicago Sun, was not a purveyor of scandal. management from Southeastern Insti- Raleigh News and Observer, and Win- Jim was a gentleman who possessed tute of Technology. His work as a ston-Salem Journal during the 1940’s all the traits that one would expect to member of the Base Realignment and and ’50’s. find in a gentleman—civility, an edu- Closing Commission Community Task His coverage extended from the Great cated mind, sensitivity, courteousness, Force was invaluable during the base Depression and New Deal through and a healthy respect for the views of closure rounds of 1991, 1993, and 1995. He World War II preparations and his own others. has received the Governor’s Air Pollu- combat duty as a Navy Captain in the I was proud to have known Jim Free, tion Control Award; Madison County Pacific; the McCarthy ‘‘Red Scare’’ era; who will long be remembered in the Good Government Award; Alabama the Civil Rights movement; the assas- dual worlds of journalism and politics Water Conservationist of the Year sinations of John and Robert Kennedy for his lifetime of service to the cause Award; and Huntsville-Madison County and Martin Luther King; and all na- of informing citizens about the world Mental Health Distinguished Service tional defense, medical, educational, around them. I extend my condolences Award. and environmental issues that affected to his family in the wake of their tre- He was originally a journalist. He Alabama. He was an on-the-scenes, eye mendous loss. spent several years as a reporter for witness to much of the social change f the Birmingham News. He served as and history of this century. editor and publisher of the Valley His many ‘‘scoops’’ included Presi- BUSINESSWOMAN EULA SIMS Voice, a weekly newspaper published in dent Truman’s 1946 order for the Army DURBIN Tuscumbia. to take over strike-threatened rail- Mr. HEFLIN. Mr. President, Eula One of the secrets to Charlie roads, and he led the national press Sims Durbin, who was a pioneer of the Grainger’s phenomenal success is that with his stories on the Justice Depart- modern poultry industry in Alabama he truly understands that in order to ment’s civil rights decisions. Jim filed and throughout the southeast, passed thrive and grow, the various groups overseas reports on the 1957 Berlin cri- away late last month at the age of 98. and resources within a community sis and NATO operations in the North She earned a place in the annals of Ala- must be united in supporting the bot- Sea, Western Europe, and the United bama business history during the dark tom-line economic imperatives. In Kingdom in 1966. He served as the his- years of the Great Depression when she Huntsville’s case these are the defense torian for the Gridiron Club and was and her husband Marshall used her $500 and space industries. He is an instru- the author of ‘‘The First One Hundred in savings to finance a new business mental unifying force who sees the big Years: a casual chronicle of the Grid- venture, a fish concession. Eventually, picture and Huntsville’s role in that iron Club.’’ the Durbins switched to dressed chick- His World War II service allowed him picture. He is a leader who brings peo- ens because of the great difficulty in to bring special insight into his cov- ple from divergent points of view to keeping fresh fish, and opened their erage of national defense issues. In an common understandings so they can own processing plant in Birmingham. October 1961 article on his time in Ber- work together for the common good. Today, the Birmingham-based Mar- lin, he said, ‘‘* * * our test of strength I congratulate and commend Charlie shall Durbin Companies is the nation’s with Russia in the months and years for all his accomplishments and for his 10th largest poultry producer. ahead * * * will be 90 percent non-mili- superb leadership role in the develop- On April 2, the Birmingham Post- tary. It will be political, economic, sci- ment, growth, and vitality of the Herald carried an excellent story de- entific, and educational. It will be a Hunstville area. He is a unique role tailing the history and growth of Mar- showdown of our way of life against model and a living testament to the shall Durbin Companies and of the cru- theirs.’’ Indeed, history proved him tremendous results which can be real- cial role Mrs. Durbin played in its right. ized through strong partnerships be- enormous success. I ask unanimous While covering the Justice Depart- tween government and industry. consent that the text of the article be f ment, Jim relayed messages from Ala- printed in the RECORD after my re- bama moderates to then-Attorney Gen- marks. TRIBUTE TO JAMES STILLMAN eral Robert Kennedy during the Free- The PRESIDING OFFICER. Without FREE dom Rider bus burning crisis. He was objection, it is so ordered. Mr. HEFLIN. Mr. President, on April also one of the first reporters to ques- (See Exhibit 1.) 3, James Stillman Free, a native of tion in print the validity of charges Mr. HEFLIN. Mr. President, Mrs. Gordo, Alabama and for 33 years the brought against public officials and Eula S. Durbin will long be remem- Washington correspondent for The Bir- private citizens by Senator Joseph bered for her astute business instincts, mingham News, passed away at the age McCarthy. of 87. Jim enjoyed a rich and colorful Jim held a number of leadership posi- for her willingness to take risks, and career as a journalist and historian. tions in his field and received a number for her perseverance in the face of Back in November 1993, I had the op- of honors. In 1967, he was elected presi- great uncertainty and adversity. I ex- portunity to attend his 85th birthday dent of the Washington chapter of the tend my condolences to her family in celebration and it was a wonderful ex- Society of Professional Journalists. In the wake of their loss. perience for his many friends and asso- 1989, he was inducted into the society’s EXHIBIT 1 ciates as we gathered with him to cele- hall of fame. The Raymond Clapper [From the Birmingham Post-Herald, April 2, brate and reflect. Award committee gave him a special 1996] Jim Free attended the public schools citation for exceptional reporting on MRS. DURBIN’S RISKS ARE REMEMBERED of Tuscaloosa, AL; earned his bach- national affairs and he received the (By Patrick Rupinski) elor’s degree at the University of Ala- Outstanding Alumnus Award from the When they write about the seeds of Ala- bama; and obtained his master’s degree University of Alabama alumni associa- bama’s successful businesses, the gamble of from Columbia University. He was part tion. Eula Sims Durbin will be recorded. owner and editor of a weekly Tusca- It is a grand understatement to say Mrs. Durbin risked all of her personal sav- loosa newspaper shortly before joining that Jim Free was a highly regarded ings in a move that helped build the poultry and respected figure. He was a well- industry in both Alabama and the Southeast. the News in 1935. Mrs. Durbin, who co-founded Marshall Dur- Jim’s 33 years as The Birmingham rounded professional and a genuine per- bin Cos. with her husband—the late Marshall News’ Washington correspondent was son of integrity. Jim never tried to Durbin Sr., died Thursday. She was 98. the longest tenure for any Washington purposely harm anyone’s reputation ‘‘She worked to build this company and correspondent for Alabama newspapers. through his reporting. His professional kept an active interest in it even in her 90s,’’ S3622 CONGRESSIONAL RECORD — SENATE April 18, 1996 said Pat Shea, a spokeswoman for Bir- As an associate at the Grand Hotel fice for Redstone Arsenal and the Army mingham-based Marshall Durbin Companies, over the course of these many years, Missile Command in Huntsville, AL. He the nation’s 10th largest poultry producer. Bucky Miller has become the very em- was a dedicated and outstanding public Mrs. Durbin’s place in Alabama’s business bodiment of hospitality. For many servant for 33 years. history occurred as the Great Depression gripped Birmingham in the 1930s. years, he has served as the hotel’s resi- An editorial which appeared in The Her husband wanted to start a business dent expert on mint juleps, all-around Huntsville Times at that time dis- even though businesses were failing in record hospitality ambassador, and official cusses his career and the characteris- numbers. historian. He is well-known throughout tics which make him a truly unique in- Money was tight, but Mrs. Durbin believed Alabama and the South. Once he meets dividual and pleasure with which to in her husband enough to give him her $500 a guest, he never forgets the name or work. I ask unanimous consent that a in savings to finance the venture, a fish con- face. He has taken care of a seemingly copy of the editorial, ‘‘One Who Made a cession at a Birmingham market. Difference,’’ be printed in the RECORD The business struggled, particularly in the endless number of politicians, sports hot Alabama summers when a lack of refrig- figures, actors, and business people following my remarks. eration made keeping fish fresh difficult. But who have been guests at the hotel over The PRESIDING OFFICER. without Mrs. Durbin never shied from taking a risk the decades. objection, it is so ordered and supported her husband’s decision to As an extraordinary hospitality am- (See Exhibit 1.) begin selling dressed chickens. bassador, he has received a great deal Mr. HEFLIN. I commend and con- The move proved popular and soon chicken of recognition and attention for his gratulate Dave Harris for all his ac- sales replaced fish. In time, the Durbins natural skills in making people feel complishments and hard work on be- opened their own chicken processing plant in welcome and comfortable. In 1989, the half of the Army over the years, and downtown Birmingham. hope he is enjoying his well-earned re- It started small with Mrs. Durbin doing the town of Fairhope, which is near Point bookkeeping and other chores, said Ms. Clear, declared the first week of June tirement. Shea, who had interviewed Mrs. Durbin for a ‘‘Bucky Miller Week.’’ That same year, EXHIBIT 1 history of the company. he was chosen along with 17 other Mar- [The Huntsville Times, Friday, Dec. 8, 1995] By the 1950s, the poultry industry was riott associates nationwide to receive ONE WHO MADE A DIFFERENCE changing. No longer did farmers with a few the J.W. Marriott Award of Excellence There are a handful of people who make a hens sell directly to poultry processors. The in recognition of exceptional hospi- difference in any community. They’re usu- industry was becoming highly integrated. tality skills. ally visible personalities like government or By the 1960s, Marshall Durbin Companies community leaders, businessmen or clergy. had become part of the changes. It added As a people-person, Bucky has a caring attitude that really endears him to Dave Harris has made an impact behind the more processing plants plus feed mills, scenes for 33 years. hatcheries, growing facilities and distribu- his guests. He has a talent for making Harris, 65, will retire Jan. 3 as the head of tion centers. people feel like they are special. the public-affairs office for Redstone Arsenal Today, the family-owned company has an- Over the years, Bucky has worked as and the Army Missile Command. During that nual sales of about $200 million with facili- a housekeeping aide, wine steward, bar- time, he’s been a trusted source of informa- ties in three states—Alabama, Mississippi tender, and kitchen steward. He left tion for the media on subjects ranging from and Tennessee. the hotel for a time to serve in World high-tech missiles to traffic accidents. He’s The chickens—processed at a rate of more War II and to teach mathematics, but also been a trusted source for Army employ- than 2 million a week—end up as everything ees, squelching unfounded rumors that could from frozen breaded nuggets at local super- soon returned for good saying, ‘‘This hotel is in my blood.’’ His outgoing affect morale or raising legitimate concerns markets to cut pieces at KFC restaurants in to management’s attention. California and frozen leg quarters shipped to personality soon earned him the title Less well known has been his role as ad- Russia. ‘‘Mr. Hospitality,’’ and resulted in a viser to Redstone commanders, project man- Ms. Shea said Mrs. Durbin however, always continuous flow of favorable guest agers and community leaders on matters of seemed to take the most pride in how her comments and feature articles in news- importance to each. husband taught their son the business. papers and magazines. Harris is uncommon partly because he has Durbin died in 1971. The couple’s son, Mar- been at the same job for so long. He knows shall Durbin Jr., runs the company today. His legendary mint juleps, which he makes from his own recipe with fresh who to call for answers. He has a historical Mrs. Durbin’s interest in the company perspective on weapons development and the never waned. Even in her 90s when she was mint he grows in a garden outside the community and knows how to put both in legally blind, she would have someone read lounge, are internationally known. the proper context for generals, soldiers, her the monthly employee newsletter, Ms. Seagram’s published his recipe in its civil servants and citizens. Shea said. recipe book and named Bucky one of Very few media spokespersons today have Mrs. Durbin was born in Brookhaven, the country’s 100 best bartenders. any actual media experience. Harris worked Miss., and moved to Sulligent after finishing Bucky’s other specialties include his for a newspaper. He is a skilled writer and her education, becoming a secretary to the knows how a story will play. He not only un- president of a lumber company. She met her country lemonade, the Grand Hotel brunch punch, and his hot mint toddy. derstands reporters and tolerates their ec- future husband while in Sulligent. centricities, he likes working with them. Their courtship blossomed after Mrs. Dur- An avid sports fan, he is well-known Those qualities make news stories more ac- bin moved to Birmingham to take another for his philosophical conversations curate and cast the Army in a more positive secretarial job. about football with such notable fig- light. Mrs. Durbin’s funeral will be at 2 p.m. ures as Alabama Coach ‘‘Bear’’ Bryant He has believed in what his Army was today at Ridout’s Valley Chapel, followed by and sportscaster Howard Cosell. doing at Redstone Arsenal. Generals to a private family burial. Survivors besides I am proud to be among those many whom Harris reported describe him as ‘‘the her son include two granddaughters, two privileged patrons of the Grand Hotel heart and soul’’ and ‘‘conscience and om- great-grandsons and six sisters. to have enjoyed the unique charm and budsman’’ of the command. In lieu of flowers, the family suggests me- Dave Harris possesses intelligence, hon- morials to the Eula Sims Durbin Scholarship natural hospitality of Bucky Miller esty, integrity, common sense, a sense of Fund at Birmingham-Southern College, Box over the years. He has always practiced duty and responsibility, and a long-standing 549003, Birmingham, Ala. 35254. what he preaches, which is, ‘‘Let sim- reputation for all the above. He will be dif- f plicity, sincerity, and service be your ficult to replace. motto.’’ As I look toward retirement, I TRIBUTE TO BUCKY MILLER f want to thank and commend him for U.S. FOREIGN OIL CONSUMPTION? Mr. HEFLIN. Mr. President, one of all his hard work and achievements. I HERE’S TODAY’S WEEKLY BOX the most interesting people and charm- am looking forward to enjoying more SCORE ing characters I have met in my life- of his simplicity, sincerity, and service time is Aura J. ‘‘Bucky’’ Miller, who when I return to Alabama next year. Mr. HELMS. Mr. President, the celebrates the 55th anniversary of first f American Petroleum Institute reports coming to work at the Marriott Grand that, for the week ending April 12, the Hotel Resort and Golf Club in Point TRIBUTE TO DAVE HARRIS U.S. imported 7,635,000 barrels of oil Clear, AL, on April 18, 1996. He just Mr. HEFLIN. Mr. President, earlier each day—1,155,000 barrels more than celebrated his 79th birthday on April 12 this year, Dave Harris retired from his the 6,480,000 barrels imported during and, thankfully, has no plans to retire. position as head of the public affairs of- the same period a year ago. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3623 Americans now rely on foreign oil for Concerns about a coming oil crisis have serves by 75 percent. As a result, OPEC’s re- more than 50 percent of their needs, surfaced in the financial markets as well. serves-to-production ratio doubled to ninety and there are no signs that this upward Last October, in an article titled ‘‘Your Last years. trend will abate. Before the Persian Big Play in Oil,’’ Fortune magazine listed The growing dependence on imported oil in several billionaires and ‘‘big mutual fund general and Persian Gulf oil in particular Gulf war, the United States obtained managers’’ who were betting heavily that oil has several potentially serious implications about 45 percent of its oil supply from prices would rise significantly. The magazine for the nation’s economic and national secu- foreign countries. During the Arab oil went on to suggest an investment portfolio rity. First, the United States is expected to embargo in the 1970’s, foreign oil ac- of ‘‘companies that are best positioned to be importing nearly 60 percent of its oil by counted for only 35 percent of Ameri- profit from the coming boom.’’ ten years from now, with roughly a third of ca’s oil supply. Fundamental trends in oil demand and that oil coming from the Persian Gulf. Our Anybody else interested in restoring supply underlie this emerging consensus. trade deficit in oil is expected to double, to domestic production of oil—by U.S. First, the world will probably need another $100 billion a year, by that time—a large and 20 million barrels of oil a day by the year continual drag on our economic health. To producers using American workers? 2010, according to the Energy Information Politicians better ponder the economic the extent that the Gulf’s recapture of the Administration (EIA). The International En- dominant share of the global oil market will calamity that will occur in America if ergy Agency projects an even greater growth make price increases more likely, the U.S. and when foreign producers shut off in demand, following the inexorable tide of economy is at risk. Although oil imports as our supply, or double the already enor- population growth, urbanization, and indus- a percent of gross domestic product have de- mous cost of imported oil flowing into trialization. creased significantly in the past decade, our the U.S.—now 7,635,000 barrels a day. Second, the world’s population is expected economic vulnerability to rapid increases in Mr. President, Joseph J. Romm and to increase by 50 percent by 2020, with more the price of oil persists. Since 1970 sharp in- than half those additional people born in Charles B. Curtis wrote in the April creases in the price of oil have always been Asia and Latin America. And as farm work- followed by economic recessions in the Unit- 1996 Atlantic Monthly an extensive ers move to the city, much more energy and analysis of the impending crisis due to ed States. oil will be needed. The fundamentals of ur- Second, the Persian Gulf nations’ oil reve- U.S. dependence on foreign oil. The ar- banization—commuting, transporting raw nues are likely to almost triple, from $90 bil- ticle, ‘‘Mideast Oil Forever?’’ is very materials, constructing infrastructure, lion a year today to $250 billion a year in thorough and detailed—and I commend powering commercial buildings—all consume 2010—a huge geopolitical power shift of great it to Senators and staff. At the very large amounts of oil and electricity. At the concern, especially since some analysts pre- least, I hope Senators will read several same time, fewer farms will have to feed dict increasing internal and regional pres- paragraphs from this article under the more people, and so the use of mechaniza- sure on Saudi Arabia to alter its pro-Western tion, transportation, and fertilizer will in- subheading ‘‘The Coming Oil Crisis.’’ stance. This represents a $1.5 trillion increase, entailing the consumption of still crease in wealth for Persian Gulf producers Mr. President, I ask unanimous con- more energy and oil. An analysis by one of sent that the text be printed in the over the next decade and a half. That money the Department of Energy’s national labora- could buy a tremendous amount of weap- RECORD. tories found that a doubling of the propor- onry, influence, and mischief in a chron- There being no objection, the mate- tion of China’s and India’s populations that ically unstable region. And the breakup of rial was ordered to be printed in the lives in cities could increase per capita en- the Soviet Union, coupled with Russia’s dif- RECORD, as follows: ergy consumption by 45 percent—even if in- ficulty in earning hard currency, means that [From the Atlantic Monthly, Apr. 1996] dustrialization and income per capita re- for the next decade and beyond, pressure will mained unchanged. MIDEAST OIL FOREVER? build to make Russia’s most advanced mili- Finally, industrialization has an even THE COMING OIL CRISIS tary hardware and technical expertise avail- greater impact on energy use. As countries able to well-heeled buyers. Given that the most recent war America develop industries, they use more energy per fought was in the Persian Gulf, let’s start by The final piece in the geopolitical puzzle is unit of gross national product and per work- that during the oil crisis of the 1970s the examining the likelihood that an oil crisis er. Crucial industries for development are will occur in the coming decade. Forecasting countries competing with us for oil were our also the most energy-intensive: primary NATO allies, but during the next oil crisis a is always risky, especially where oil is con- metals; stone, clay, and glass; pulp and cerned, but consider what a variety of expe- new, important complication will arise; the paper; petroleum refining; and chemicals. In competition for oil will increasingly come rienced energy hands from every point on the United States these industries account the political spectrum have said in the past from the rapidly growing countries of Asia. for more than 80 percent of manufacturing Indeed, in the early 1970s East Asia year alone. Donald Hodel, who was a Sec- energy consumption (and more than 80 per- retary of Energy under Ronald Reagan, has consumed well under half as much oil as the cent of industrial waste). United States, but by the time of the next said that we are ‘‘sleepwalking into a disas- As Fortune has noted, if the per capital en- crisis East Asian nations will probably be ter,’’ and predicts a major oil crisis within a ergy consumption of China and India rises to consuming more oil than we do. few years. Irwin Stelzer, of the American En- that of South Korea, and the Chinese and In- terprise Institute, says that the next oil dian populations increase at currently pro- f shock ‘‘will make those of the 1970s seem jected rates, ‘‘these two countries alone will THE BAD DEBT BOXSCORE trivial by comparison.’’ Daniel Yergin says, need a total of 119 million barrels of oil a ‘‘People seem to have forgotten that oil day. That’s almost double the world’s entire Mr. HELMS. Mr. President, on Fri- prices, like those of all commodities, are cy- demand today.’’ day February 23, 1996, the Federal debt clical and will go up again.’’ James Schles- Barring a major and long-lasting world- broke the 5 trillion dollar sound barrier inger, who was the Secretary of Energy wide economic depression, global energy de- for the first time in history. The under Jimmy Carter, has said, ‘‘By the end mand will be rising inexorably for the fore- records show that on that day, at the of this decade we are likely to see substan- seeable future. The Persian Gulf, with two- tial price increases.’’ In March of last year thirds of the world’s oil reserves, is expected close of business, the debt stood at Robert Dole, the Senate majority leader, to supply the vast majority of that increased $5,017,056,630,040.53. said in a speech at the Nixon Center for demand—as much as 80 percent, according to Twenty years earlier, in 1976, the Peace and Freedom, ‘‘The second inescapable the EIA. Within ten to fifteen years the Per- Federal debt stood at $629 billion, after reality of the post-twentieth-century world sian Gulf’s share of the world export market the first 200 years of America’s history, is that the security of the world’s oil and gas may surpass its highest level to date, 67 per- including two world wars. The total supplies will remain a vital national interest cent, which was attained in 1974. The EIA Federal debt in 1976, I repeat, stood at of the United States and of the other indus- predicts that in the face of increased de- $629 billion. trial powers. The Persian Gulf . . . is still a mand, oil prices will rise slowly to $24 a bar- Then the big spenders went to work region of many uncertainties. . . . In this rel (1994 dollars) in 2010. If, instead, they re- ‘new energy order’ many of the most impor- main low, the Gulf’s share of the world ex- and the interest on the Federal debt tant geopolitical decisions—ones on which a port market may rise as high as 75 percent in really began to take off—and, presto, nation’s sovereignty an depend—will deal 2010. during the past 2 decades the Federal with the location and routes for oil and gas Although non-OPEC nations did increase debt has soared into the stratosphere, pipelines. In response, our strategy, our di- production by almost 15 percent from 1980 to increasing by more than $4 trillion in 2 plomacy, and our forward military presence 1990, they increased proven reserves of oil by decades—from 1976 to 1996. need readjusting.’’ The chairman of the Fed- only 10 percent. The net result is that the re- So, Mr. President, as of the close of eral Reserve, Alan Greenspan, not known for maining years of production for non-OPEC being an alarmist, in testimony before Con- reserves has actually fallen from eighteen business yesterday, Wednesday, April gress last July raised concerns that a rising years to seventeen years. On the other hand, 17, 1996, the Federal debt stood—down trade deficit in oil ‘‘tends to create questions while OPEC increased production by 20 per- to the penny—at $5,146,356,518,536.99. On about the security of our oil resources.’’ cent in the 1980s, it increased its proven re- a per capita basis, every man, woman S3624 CONGRESSIONAL RECORD — SENATE April 18, 1996 and child in America owes $19,445.43 as no idea that the committees they had working conditions, improvement pro- his or her share of that debt. formed with their employees were in ductivity and efficiency, and boost the This enormous debt is a festering, es- violation of the law. As far as they quality of their products. This does not calating burden on all citizens and es- were concerned, they were just good just benefit the employer and the em- pecially it is jeopardizing the liberty of business practice. The committees ployee, it helps our economy. our children and grandchildren. As Jef- kept the employees involved in oper- Mr. President, this provision of the ferson once warned, ‘‘to preserve [our] ations and improved customer satisfac- law may have served its purposes 60 independence, we must not let our tion. years ago, but it is not necessary leaders load us with perpetual debt. We But according to the National Labor today. Small businesses need all the must make our election between econ- Relations Act, employee involvement help they can get to survive in today’s omy and liberty, or profusion and ser- is illegal. The intent of the law, estab- competitive market and being flexible vitude.’’ Isn’t it about time that Con- lished in the 1930’s, was to prevent em- is vital to that success. Small business gress heeded the wise words of the au- ployers from dominating a labor orga- owners need the input, the advice, the thor of the Declaration of Independ- nization. And labor organization is de- cooperation, and the labor of their em- ence? fined as a group of employees that dis- ployees. To prohibit that involvement f cusses terms or conditions of employ- is to squash innovation and prosperity, THE 12TH ANNUAL TUFTONIA’S ment with the employer. That may be the very ideals that make up the Amer- WEEK CELEBRATION AT TUFTS well and good as far as collective bar- ican Dream. UNIVERSITY gaining is concerned—at the time, the I strongly support this legislation, NLRA wanted to stop employers from Mr. President. I hope we can bring this Mr. KENNEDY. Mr. President, next establishing these company unions to to the floor quickly and relieve the week Tufts University in Medford, MA, keep independent unions out—but the stress on our small businesses around will hold its 12th Annual Tuftonia’s law is being interpreted to mean that the Nation who have learned of their Week Celebration. Tufts alumni from discussions of safety, productivity, and allegedly ‘‘illegal’’ business practices. around the world will gather to honor quality are considered conditions of Let us get the government off their their outstanding university. This cele- employment. That’s causing more than backs once again, and let business do bration has special meaning for me be- a little heart burn. what they do best—create jobs and cause my daughter, Kara, is a graduate Let me give you an example. There is produce high quality goods and serv- of Tufts, and I am proud to count my- a Montana company I have heard from, ices for the world to enjoy. self as a member of the Tufts family. and I will not name them since, under- Tufts was founded in 1852, and it now f standably, many small businesses are has over 8,000 students from all 50 afraid of having their practices brought THE INDIVIDUALS WITH DISABIL- States and more than 100 foreign coun- to the attention of the NLRB. But this ITIES EDUCATION ACT REAU- tries. The university offers degrees in a company, with diversified interests, THORIZATION wide range of disciplines, including has formed a committee on safety— Mr. BURNS. Mr. President, an impor- Liberal Arts, Engineering, Occupa- safety not only of employees who work tant bill was recently reported out of tional Therapy, Nutrition Science and the Senate Labor Committee and I Policy, Medicine, Dentistry, Veteri- with a variety of equipment but of the thousands of visitors who use their fa- hope it will make its way to the Senate nary Medicine, and Law and Diplo- floor quickly. This is a bill that was de- macy. cilities every day. This committee signed with not only children in mind— This year, the theme of Tuftonia’s gives the employees ownership of their and that is foremost—but with the Week is community service. The occa- surroundings and results in a safer sion will honor the large number of workplace for everyone. needs of teachers, administrators, and Tufts graduates across the country who This same company also has a com- parents of children with disabilities. are volunteering in their communities mittee on customer satisfaction. The That can be a delicate balance, but I and helping to improve the lives of oth- employees survey the facilities periodi- think it was achieved. S. 1578, the Individuals With Disabil- ers in their neighborhoods through the cally and decide on changes in decora- TuftServe program. Last year, Tufts tions, improvements in the surround- ities Education Act reauthorization, alumni contributed more than 19,000 ings, how to make the area more cus- ensures that children with disabilities volunteer hours, and an even higher tomer friendly—basically how to draw have access to a free appropriate public level of participation is anticipated business in and keep it. Once again, education. At first, that may sound this year. Tufts deserves great credit this is not only a good business prac- like something we would assume is a for its leadership among universities in tice, it is a way to keep the employees guaranteed right of any American citi- emphasizing the value of service learn- energized about their work conditions. zen. And it is. But many children with ing and providing opportunities for stu- How can this possibly be against the disabilities have special needs—needs dents to combine community service law? That is not only the question they that neither the parents nor the with their academic curriculum. are asking, it is one we should all ask. schools can meet without sacrifice. I am honored to take this oppor- Yet, if the National Labor Relations And it seems that when this bill was tunity to congratulate Tufts’ Presi- Board learned about these employee in- first enacted in 1975, the burdens on dent, John DiBiaggio, and the others in volvement teams, according to the law, some were increased. And 21 years the Tufts community for their impres- they could penalize the employer. And later, we have the opportunity to make sive accomplishments. in a number of cases, they already some positive changes. f have. That does not even make sense. Let me just highlight a few of the Now, I know that the Government is changes that are proposed that prompt- THE TEAM ACT famous for not making sense—and that ed me to sign my name on this bill. To Mr. BURNS. Mr. President, I recently is what our regulatory reform efforts begin with, S. 1578 reduces the bureau- became a co-sponsor of S. 295, the are about—but here is one specific cratic maze that schools have been re- Teamwork for Employers and Manage- place we can make a difference. By quired to fight their way through. ment Act, a bill that is scheduled for passing this bill, the Teamwork for Right now, State and local education markup today in the Labor Committee Employees and Management Act, with- agencies must submit a plan or appli- and which the Small Business Commit- out any taxpayers dollars, without any cation every 3 years. Now, they will tee, on which I sit, will consider tomor- new volumes of paperwork, we can let only have to prepare that plan once, row. This bill is very important to business get back to business without unless they institute substantial small businesses. It is important to all fear of the heavy hand of Government changes. And the data they are re- business but, with 98 percent of Mon- coming down on them. quired to collect is cut in half. tana’s businesses considered small, By simply amending the National Some may say, ‘‘But how will that those are the folks I’m hearing from. Labor Relations Act, we can allow affect my child’s education?’’ As I’ve Many of the businesses that have teamwork to continue, and allow busi- visited with school administrators and contacted me were in shock. They had nesses to form teams to safeguard teachers around Montana, it has April 18, 1996 CONGRESSIONAL RECORD — SENATE S3625 amazed me to hear how many resources tee, I look forward to seeing this bill H.R. 842. An act to provide off-budget are tied up with paperwork generating, brought to the Senate floor soon. Our treatment for the Highway Trust Fund, the reporting requirements, and tracking. Nation’s future—our children—depend Airport and Airway Trust Fund, the Inland If it wasn’t required by law, I wouldn’t on it. Waterways Trust Fund, and the Harbor Maintenance Trust Fund. be surprised if schools refused to enroll f children with disabilities. The amount ENROLLED BILLS SIGNED SECRETARY RON BROWN AND of time it takes a school employee to At 2:07 p.m., a message from the BARRY CONRAD keep up with the regulations, the House of Representatives, delivered by amount of financial resources that are ∑ Mr. MACK. Mr. President, I offer my Ms. Goetz, one of its reading clerks, an- used to document school activities and heartfelt condolences and prayers to nounced that the speaker has signed student performance—it’s almost a the family of Commerce Secretary Ron the following enrolled bills: miracle that the school has the time to Brown and to all of the other families H.R. 255. An act to designate the Federal educate the children. who have lost a loved one in this ter- Justice Building in Miami, Florida, as the When we reduce the paperwork, the rible tragedy. ‘‘James Lawrence King Federal Justice reporting requirements, the docu- It is never easy to lose someone close Building.’’ to you. Yet I believe those that Com- H.R. 869. An act to designate the Federal mentation, we free up time and money building and U.S. Courthouse located at 125 to devote to the education of our chil- merce Secretary Brown left behind— Market Street in Youngstown, Ohio, as the dren and we allow those children with his wife Alma, his daughter Tracey, ‘‘Thomas D. Lambros Federal Building and disabilities to achieve as much as they and his son Michael—can be comforted U.S. Courthouse.’’ can possibly achieve. It allows the and given strength by the knowledge H.R. 1804. An act to designate the United teacher to get back to the classroom, that Ron Brown died doing what he States Post Office-Courthouse located at the administrator to get back to mak- loved: Representing the President as South 6th and Rogers Avenue, Fort Smith, ing sure the school is safe and the cur- Commerce Secretary and serving Arkansas, as the ‘‘Judge Isaac C. Parker America by promoting American eco- Federal Building.’’ riculum is top-notch, and the parents H.R. 2415. An act to designate the United to rest easy knowing that their child is nomic interests abroad. States Customs Administrative Building at receiving the same educational oppor- Secretary Brown will be remembered the Ysleta/Zaragosa Port of Entry located at tunities every other child is receiving. for his commitment to our democracy, 797 South Ysleta in El Paso, Texas, as the But one of the most common re- his charisma, and the enthusiasm with ‘‘Timothy C. McCaghren Customs Adminis- marks I’ve heard from Montana schools which he embraced new ideas and chal- trative Building.’’ is that they need more flexibility. And lenges. I will keep Alma, Tracey, Mi- H.R. 2556. An act to redesignate the Fed- this bill gives them that. In particular, chael, and all others who are mourning eral building located at 345 Middlefield Road this great loss, in my thoughts and in Menlo Park, California, and known as the the question of discipline is often Earth Sciences and Library Building, as the raised. Current law prohibits schools prayers during their time of grief. ‘‘Vincent E. McKelvey Federal Building.’’ from suspending a disabled child for I would also like to offer my condo- The enrolled bills were signed subse- more than 30 days even if the child lences at this time to the family of quently by the President pro tempore brought in a dangerous weapon or Barry L. Conrad who was accompany- (Mr. THURMOND). threatened a teacher or student. S. 1578 ing Secretary Brown on his trip to the gives the school some flexibility in de- Balkans. Mr. Conrad was the founder of At 4:09 p.m., a message from the ciding how to handle that violation. If the Barrington Group, a dynamic hotel House of Representatives, delivered by a child with a disability violates such a company in Miami, and had previously Mr. Hays, one of its reading clerks, an- policy, that child may be suspended for headed Burger King’s U.S. franchise op- nounced that the House agrees to the up to 10 school days. In that time, the eration. report of the committee of conference IEP team may designate an alternative In addition to being a successful busi- on the disagreeing votes of the two placement for up to 35 days. And, if the nessman, Mr. Conrad was a very promi- Houses on the amendments of the behavior was not related to the disabil- nent and well-respected member of the House to the bill (S. 735) to prevent and ity, the child can be disciplined as any south Florida community. This is a punish acts of terrorism, and for other other nondisabled child would be. great loss not only for the family and purposes. Mr. President, I want to make sure friends of Mr. Conrad but for the entire that all children have access to a free, State of Florida. f appropriate public education. Whether I am praying for the Conrad family, MEASURED REFERRED a child has a disability, mental or and all others who are mourning as a Pursuant to the order of August 4, physical, whether a child is poor or dis- result of this tragedy.∑ 1977, with instructions that if one Com- advantaged, whether the parents of f schoolaged children have the resources mittee reports, the other Committee MESSAGES FROM THE PRESIDENT to afford special care or not—we need have thirty days to report or be dis- to take the responsibility of educating Messages from the President of the charged, the following bill was read the our future generations very seriously. United States were communicated to first and second times by unanimous And there is a balance we need to the Senate by Mr. Thomas, one of his consent and referred as indicated: maintain. Order and discipline in our secretaries. H.R. 842. An act to provide off-budget treatment for the Highway Trust Fund, the schools is essential to creating an envi- EXECUTIVE MESSAGES REFERRED ronment conducive to learning, for dis- Airport and Airway Trust Fund, the Inland As in executive session the PRESID- Waterways Trust Fund, and the Harbor abled and nondisabled children alike. ING OFFICER laid before the Senate Maintenance Trust Fund; to the Committee There should be a balance between the messages from the President of the on the Budget and the Committee on Gov- parents involvement and the schools United States submitting sundry nomi- ernmental Affairs. efforts in educating a child with dis- nations which were referred to the f abilities. And there is a balance to be Committee on the Judiciary. kept between making sure schools are (The nominations received today are EXECUTIVE AND OTHER accountable for the Federal dollars printed at the end of the Senate pro- COMMUNICATIONS they receive and overburdening them ceedings.) The following communications were with red tape. This bill, S. 1578, strikes f laid before the Senate, together with that balance. MESSAGES FROM THE HOUSE accompanying papers, reports, and doc- I join my colleagues in supporting uments, which were referred as indi- this important legislation and I com- At 11:54 a.m., a message from the cated: mend Senator FRIST for his hard work House of Representatives, delivered by EC–2262. A communication from the Direc- in making sure that both parents and Ms. Goetz, one of its reading clerks, an- tor of the Office of Management and Budget, schools were consulted in proposing nounced that the House has passed the Executive Office of the President, transmit- these changes. With the bipartisan sup- following bills, in which it requests the ting, pursuant to law, the cumulative report port it enjoyed in the Labor Commit- concurrence of the Senate: on rescissions and deferrals dated April 1, S3626 CONGRESSIONAL RECORD — SENATE April 18, 1996 1996; referred jointly, pursuant to the order EC–2276. A communication from the Sec- States Code, for certain former Department of January 30, 1975, as modified by the order retary of Transportation, transmitting, pur- of Defense employees who are separated from of April 11, 1986, to the Committee on Appro- suant to law, a report on tanker navigation service by reason of certain defense base clo- priations, to the Committee on the Budget, safety standards; to the Committee on Com- sures, and for other purposes; to the Com- to the Committee on Agriculture, Nutrition, merce, Science, and Transportation. mittee on Governmental Affairs. and Forestry, to the Committee on Armed EC–2277. A communication from the Sec- By Mr. KERRY: Services, to the Committee on Environment retary of Transportation, transmitting, pur- S. 1687. A bill to provide for annual pay- and Public Works, to the Committee on Fi- suant to law, a report on the evaluation of ments from the surplus funds of the Federal nance, and to the Committee on Foreign Re- oil tanker routing; to the Committee on Reserve System to cover the interest on obli- lations. Commerce, Science, and Transportation. gations issued by the Financing Corporation; EC–2263. A communication from the Presi- f to the Committee on Banking, Housing, and dent of the United States, transmitting, pur- Urban Affairs. REPORTS OF COMMITTEES suant to law, a report of proposed rescissions By Mr. DOLE (for himself, Mr. SIMON, of budgetary resources; referred jointly, pur- The following reports of committees Mr. ABRAHAM, Ms. MOSELEY-BRAUN, suant to the order of January 30, 1975, as were submitted: Mr. MURKOWSKI, Ms. MIKULSKI, Mr. modified by the order of April 11, 1986, to the HELMS, Mr. ROTH, Mr. SANTORUM, and By Mr. CHAFEE, from the Committee on Committee on Appropriations, to the Com- Environment and Public Works, with an Mr. LUGAR): mittee on the Budget, and to the Committee amendment in the nature of a substitute: S.J. Res. 51. A joint resolution saluting and on Armed Services. S. 811. A bill to authorize research into the congratulating Polish people around the EC–2264. A communication from the Chair- desalinization and reclamation of water and world as, on May 3, 1996, they commemorate man of the Federal Maritime Commission, authorize a program for States, cities, or the 205th anniversary of the adoption of Po- transmitting, pursuant to law, the report of qualifying agencies desiring to own and oper- land’s first constitution; to the Committee activities for fiscal year 1995; to the Commit- ate a water desalinization or reclamation fa- on the Judiciary. tee on Commerce, Science, and Transpor- cility to develop such facilities, and for f tation. other purposes (Rept. No. 104–254). EC–2265. A communication from the Ad- f SUBMISSION OF CONCURRENT AND ministrator of the National Aeronautics and SENATE RESOLUTIONS Space Administration, transmitting, pursu- EXECUTIVE REPORTS OF ant to law, a report relative to requests for COMMITTEES The following concurrent resolutions extraordinary contractual relief; to the Com- and Senate resolutions were read, and The following executive report of mittee on Commerce, Science, and Transpor- referred (or acted upon), as indicated: tation. committee was submitted: By Mr. FEINGOLD (for himself, Mrs. EC–2266. A communication from the Ad- By Mr. Stevens, from the Committee on KASSEBAUM, Mr. SIMON, Mr. LEAHY, ministrator of the Federal Aviation Admin- Governmental Affairs: Mr. JEFFORDS, and Mr. PELL): istration, transmitting, pursuant to law, a Robert E. Morin, of the District of Colum- S. Res. 248. A resolution relating to the vi- report relative to foreign aviation authori- bia, to be an Associate Judge of the Superior olence in Liberia; to the Committee on For- ties; to the Committee on Commerce, Court of the District of Columbia for the eign Relations. Science, and Transportation. term of fifteen years. EC–2267. A communication from the Ad- (The above nomination was reported f ministrator of the Federal Aviation Admin- with the recommendation that he be STATEMENTS ON INTRODUCED istration, transmitting, pursuant to law, a confirmed, subject to the nominee’s BILLS AND JOINT RESOLUTIONS report relative to the Traffic Alert and Colli- commitment to respond to requests to sion Avoidance System; to the Committee on By Mr. WYDEN: Commerce, Science, and Transportation. appear and testify before any duly con- EC–2268. A communication from the Ad- stituted committee of the Senate.) S. 1683. A bill to amend part E of title ministrator of the Federal Aviation Admin- f IV of the Social Security Act to re- istration, transmitting, pursuant to law, the quire States to regard adult relatives report of the Aviation System Capital In- INTRODUCTION OF BILLS AND who meet State child protection stand- vestment Plan; to the Committee on Com- JOINT RESOLUTIONS ards as the preferred placement option merce, Science, and Transportation. The following bills and joint resolu- for children, and to provide for dem- EC–2269. A communication from the Chair- tions were introduced, read the first onstration projects to test the feasibil- man of the Federal Trade Commission, and second time by unanimous con- ity of establishing kinship care as an transmitting, pursuant to law, the report of sent, and referred as indicated: accomplishments during fiscal year 1994; to alternative to foster care for a child the Committee on Commerce, Science, and By Mr. SARBANES: who has adult relatives willing to pro- Transportation. S. 1682. A bill to authorize the Secretary of vide safe and appropriate care for the EC–2270. A communication from the Sec- Transportation to issue a certificate of docu- child; to the Committee on Finance. mentation with appropriate endorsement for retary of Transportation, transmitting, pur- THE KINSHIP CARE ACT OF 1996 suant to law, a report relative to export ves- employment in the coastwise trade for the sels; to the Committee on Commerce, vessel Liberty, and for other purposes; to the ∑ Mr. WYDEN. Mr. President, I intro- Committee on Commerce, Science, and Science, and Transportation. duce the Kinship Care Act of 1996. EC–2271. A communication from the Sec- Transportation. Today Representative Connie Morella retary of Transportation, transmitting, a By Mr. WYDEN: S. 1683. A bill to amend part E of title IV is introducing companion legislation in draft of proposed legislation entitled ‘‘The of the Social Security Act to require States the House. Department of Transportation Regulatory to regard adult relatives who meet State Grandparents caring for grand- Reform Act of 1996’’; to the Committee on child protection standards as the preferred children represent one of the most Commerce, Science, and Transportation. placement option for children, and to pro- underappreciated natural resources in EC–2272. A communication from the Sec- vide for demonstration projects to test the retary of Transportation, transmitting, pur- our Nation. They hold tremendous po- feasibility of establishing kinship care as an tential for curing one of our society’s suant to law, a report on waste disposal alternative to foster care for a child who has sites; to the Committee on Commerce, adult relatives willing to provide safe and most pressing maladies: The care of Science, and Transportation. appropriate care for the child; to the Com- children who have no parents, or whose EC–2273. A communication from the Sec- mittee on Finance. parents simply aren’t up to the task of retary of Transportation, transmitting, pur- By Mr. REID: providing children a stable, secure and suant to law, the report entitled ‘‘The Auto- S. 1684. A bill to require that applications nurturing living environment. motive Fuel Economy Program’’; to the for passports for minors have parental signa- There is such a great reservoir of Committee on Commerce, Science, and tures; to the Committee on Foreign Rela- Transportation. tions. love and experience available to us, EC–2274. A communication from the Sec- By Mr. KERRY: and more especially to the tens of retary of Transportation, transmitting, pur- S. 1685. A bill to provide income and eco- thousands of American children who suant to law, a report relative to the Airport nomic security to the American family, and desperately need basic care giving. We Improvement Program; to the Committee on for other purposes; to the Committee on Fi- provide public assistance to strangers Commerce, Science, and Transportation. nance. for this kind of care, but the folks EC–2275. A communication from the Sec- By Mr. FORD (for himself, Mr. COATS, available to provide foster care homes retary of Transportation, transmitting, pur- Mr. LUGAR, Mrs. HUTCHISON, and Mr. suant to law, a report on tanker simulator MCCONNELL): are in short supply. training; to the Committee on Commerce, S. 1686. A bill to provide for early deferred At the same time, inflexibility in Science, and Transportation. annuities under chapter 83 of Title 5, United current regulations often force us to April 18, 1996 CONGRESSIONAL RECORD — SENATE S3627 ignore a precious alternative that is need to do now, as we did for our wel- engage in the grossest of misbehavior right at our doorstep. Our public policy fare system, is start opening the door by a scurrilous parent. And engage in planners have missed the forest for the for States to try new ideas to both pro- it they do. Sadly, the case of Fred and trees. Grandparents can fill the gap. tect children and keep families to- Barbara Spierer is not an isolated inci- They are ready, willing and able to pro- gether. dent. vide the kind of care these youngsters As we reevaluate the effectiveness of International parental abductions so desperately need. our country’s child protection systems, are a growing problem. In 1994, there The legislation I plan to introduce in it’s time that we identify new ideas were over 600 cases of children being the Senate today will give States the and new ways to find loving environ- abducted from the U.S.A. Thousands of flexibility to provide the support these ments for our Nation’s most vulnerable parents are attempting to bring home grandparents need, so that our seniors children. Grandparents can provide the their children who were taken from can help fill the care gap. lynchpin for such a new system.∑ this country by a mother or father. The House included my legislation, While these cases are tracked by the similar to today’s bill, as part of the By Mr. REID: State Department, children’s advocates welfare reform measure last year. My S. 1684. A bill to require that applica- believe many more go unreported. new legislation will continue the proc- tions for passports for minors have pa- Often, the children are snatched during ess of shifting the focus of our child rental signatures; to the Committee on a divorce. The abducting parents usu- welfare system from turning children Foreign Relations. ally have strong ties to a foreign coun- over to strangers, to granting them the THE MIKEY KALE PASSPORT NOTIFICATION ACT try. But sometimes an American-born loving arms of grandparents and other OF 1996 mother or father will take off for an relatives. Mr. REID. Mr. President, I rise to in- unfamiliar nation to flee U.S. law. Re- States have been moving in this di- troduce legislation I intended to offer grettably, such surreptitious travel is rection for over a decade. Over the past as an amendment to the immigration made quite easy because of current 10 years the number of children in- bill. Unfortunately, it does not appear law. Why? Because one parent can pro- volved in extended family arrange- I will have the opportunity to offer this cure the child’s passport without the ments has increased by 40 percent. Cur- as an amendment to that bill. I there- other one knowing. rently, more than 3 million children fore decided to offer this as a free- Left-behind parents are faced with are being raised by their grandparents. standing bill as I believe it is an issue wading through a maze of foreign laws In other words, 5 percent of all families that needs to be addressed whether or and customs in their efforts to secure in this country are headed by grand- not we decide to go back to this bill. their child’s return. Imagine how dif- parents. Much of the debate on the immigra- ficult it is to find a missing child in the It’s time that the Federal Govern- tion legislation involves complex is- United States and then multiply it by ment get with the program and start sues and arcane areas of the law. My 1,000. That’s about how difficult it is to developing policies that make it easier, legislation is pretty easy to under- locate and return a child abducted instead of more difficult, for families stand. It is a common sense legislative overseas. And finding a missing child is to come together to raise their chil- solution to a simple, but troubling, only the start. dren. issue. The issue my bill attempts to re- A parent must then take their case My bill has several parts. The first solve is that of international parental to the foreign country’s legal system. would require States to give preference abductions. Significantly, my bill does Most nations do not recognize custody to relative providers when a child is re- not attempt to right a wrong. Rather, orders from U.S. courts. Even when moved from their parents’ home. Too it attempts to prevent future wrongs criminal charges have been filed often I have heard stories of grand- from occurring. And there is little dis- against the abducting parent in the parents or other relatives, not finding pute that absent legislation, future United States, many nations will not out that their grandchildren have been wrongs will occur. honor a U.S. request for extradition. removed from their children’s home. The wrong that occurs is best illus- Some countries simply discriminate By the time they know what is happen- trated by a living nightmare forced against women. The decision to fight ing, the grandchildren are locked into upon an American family from Hender- for a child’s return consumes enormous the foster care system. son, NV. No parent should ever have to amounts of time and money. Many par- Often I have heard stories where go through what Fred and Barbara ents are simply without the financial brothers and sisters are split up and Spierer went through in 1993. That wherewithal to engage in a protracted grandparents spend years in court try- year, on Valentine’s Day, Barbara international legal battle. ing to reunite their own families. As Spierer’s ex-husband took her son to For a variety of reasons, the Govern- we rethink our child protection sys- his native country, war-torn Croatia. ment is able to do very little to assist tem, we need to rededicate ourselves to She would soon learn that upon their these parents. The current budgetary looking to families, including extended arrival, her ex-husband initiated offi- constraints realistically preclude doing families, for solutions. When a child is cial custody proceedings in a Croatian more to secure the return of abducted separated from their parents, it is usu- court. children. But they do not preclude ef- ally a painful and traumatic experi- Through tremendous emotional and forts to implement additional barriers ence. Living with people that a child financial costs, Fred and Barbara to prevent these tragic abductions knows and trusts gives children a bet- Spierer were able to secure the return from occurring. ter chance in the world and gives fami- of young Mikey. Incredibly, this could My bill takes cost effective steps to- lies a better chance to rebuild them- all have been prevented if our laws ward preventing future abductions. It selves. didn’t permit such easy procurement of implements a system of checks prior to The second part of my bill allows passports for minors. Few would dis- the issuance of a minor child’s pass- States to obtain waivers to set up kin- agree that parental consent should be port. Both parents would be required to ship care guardianship systems where given before a passport is issued to a sign the passport application of a child grandparents and other relative provid- minor child. Both parents ought to be under the age of 16. Or, if the parents ers can receive some financial assist- notified before the State Department were already divorced, the application ance without having to turn over cus- issues a document permitting their would have to be signed by the parent tody of the child to the State, and child to be taken out of this country. of the child having primary custody. If without having to go through the pa- Presently, such joint notification is such a law had been in place by 1993, perwork and bureaucratic hurdles of not required. Under current law, one Barbara Spierer’s ex-husband would the foster care system. parent can apply for a U.S. passport for not have been able to abduct their Our child protection system is where his or her child, receive it, and then de- child to Croatia. The passport would our welfare system was about 10 years part from the country with that child. not have been issued because her writ- ago. We know it isn’t working well, but Again, this can all be accomplished ten permission had not been given. I States and the Federal Government are without the notification of the other believe it is drafted in such a manner still fumbling for solutions. What we parent. Current law is an invitation to so as to give the State Department the S3628 CONGRESSIONAL RECORD — SENATE April 18, 1996 discretion to implement a reasonable Not long ago the Treasury announced fourth in the Nation in loan delin- and flexible rule. that the leading economic indicators quencies, have defaulted on $80 million This bill is not just about parental were up 1.3 percent for February, the in consumer loans. rights and preventing these tragic gross domestic product rose half a per- Mr. President, in these economic international abductions. It is also cent, the stock market is at record lev- times, the average American family about protecting the rights of our chil- els, inflation is subdued, interest rates has four credit cards—each with bal- dren. No one disagrees that the rights, are stable, unemployment is the lowest ances of $4,800. It’s no wonder we are liberties and freedoms provided in our in the industrial world, job growth is anxious. Thousands and thousands of Nation make it the best country in the the highest with over 8 million jobs families are one paycheck away from world. No child should be forced to lose since 1993; and—to topoff all of these economic disaster. But, it took Pat Bu- these rights. No child should be forced positive indicators—the Democratic chanan to wake up the Republican to undergo what Mikey Kale lived economic plan—that passed without Party to do something the Democrats through. No American child, regardless one Republican vote—has cut the defi- have been doing since the Roosevelt ad- of his age, should be abducted to the cit by more than half—down from $290 ministration—fighting for working middle of a war torn part of the world. billion to $140 billion. families and people struggling to make American parents should not be forced We worked hard with the President ends meet. Yet the Republicans have to endure the living nightmare that against Republican stonewalling, done nothing to alleviate this anxiety. the Spierers’ were forced to go gridlock, and continued opposition to They will not even raise the minimum through. If my bill prevents only one make this happen so that even the Re- wage—in fact they have downsized the family from having to endure this publican Chairman of the Federal Re- American dream for millions of hard nightmare it will be judged a success. I serve, Alan Greenspan, told me 2 weeks working families, but voted time and believe that more can be done but this ago, at a Banking Committee hearing, again to increase corporate welfare, is the most cost effective step we can that this is the longest period of the and give huge tax breaks to the take today. most robust and sustained economic wealthiest Americans. I encourage my colleagues to cospon- growth since the end of the Second Therefore, today, to fight back, I am sor this legislation and support it World War, and he expects the econ- announcing that I will introduce the should we return to consideration of omy to continue to grow ‘‘at a steady American Family Income and Eco- the immigration bill. clip.’’ nomic Security Act. Mr. President, I ask unanimous con- But this economic growth is best re- It helps families by increasing the sent that the text of the bill be printed flected in corporate boardrooms—busi- minimum wage, helps them educate in the RECORD. nesses are finding it easier to borrow their kids and re-educate themselves, There being no objection, the bill was money, interest rates are low, execu- helps secure portable, affordable, ordered to be printed in the RECORD, as tive salaries are up and continue to health care with no preexisting condi- follows: mushroom, regulations are being eased tions clause, and makes investments S. 1684 in every sector from financial services for retirement easier. I believe that this legislation can go a long way to Be it enacted by the Senate and House of Rep- to basic manufacturing. But, in living resentatives of the United States of America in rooms across Massachusetts there is restoring faith in the American dream. The American Family Income and Congress assembled, extraordinary anxiety about jobs, Economic Security Act gives incen- SECTION 1. PASSPORTS ISSUED FOR CHILDREN health care, education, wages, and re- tives to businesses that become better UNDER 16. tirement. (a) IN GENERAL.—Section 1 of title IX of corporate citizens and that foster a Mr. President, I have talked to fam- the Act of June 15, 1917 (22 U.S.C. 213) is family-friendly environment that pro- ily after family in Massachusetts who amended— vides high-wage jobs for the 21st cen- told me that people at the top are (1) by striking ‘‘Before’’ and inserting ‘‘(a) tury. IN GENERAL.—Before’’, and doing great, but their friends on the It includes 10 new approaches to fam- (2) by adding at the end the following new shop floor are not. Statistics show that ily economic problems, and 10 initia- subsection: corporate executives are earning 170 ‘‘(b) PASSPORTS ISSUED FOR CHILDREN tives that I have sponsored before. But, times that of their lowest paid worker. what makes this proposal unique is UNDER 16.— Just last year CEO’s had an average ‘‘(1) SIGNATURES REQUIRED.—In the case of that it takes simple, necessary, com- a child under the age of 16, the written appli- salary increase of 15 percent while mon sense steps in the right direction. cation required as a prerequisite to the issu- their workers are downsized into the Each element of this plan can stand ance of a passport for such child shall be street. These workers—whose real alone. It uses the Tax Code to help signed by— wages have fallen half-a-percent every workers keep up, and rewards busi- ‘‘(A) both parents of the child if the child year since 1973—worry about the fu- nesses that reward workers. lives with both parents; ture, about elderly parents getting I believe that these proposals are ‘‘(B) the parent of the child having primary sick, about their kids’ education, about what real families need to make ends custody of the child if the child does not live their own health care if they lose their with both parents; or meet and to feel that they have a ‘‘(C) the surviving parent (or legal guard- job, about the debt they are carrying, chance in the new economy. ian) of the child, if 1 or both parents are de- and about their retirement. Let us start with wages. Under this ceased. I understand how difficult it is when proposal we reward work—those who ‘‘(2) WAIVER.—The Secretary of State may productivity rose 7 percent but real are on the job and off the dole—by in- waive the requirements of paragraph (1)(A) if wages fell 3 percent in the first 6 years creasing the minimum wage from $4.25 the Secretary determines that cir- of the 1990’s. A family that used to and hour to $5.15 an hour. Maybe my cumstances do not permit obtaining the sig- take out a loan for a major expense Republican opponents don’t know what natures of both parents.’’. like a car, now put gas on their credit an increase means in real terms: It (b) EFFECTIVE DATE.—The amendments cards. They took out loans to send kids made by this section shall apply to applica- means an additional $1,800—the equiva- tions for passports filed on or after the date to college, now they take out loans to lent of 7 months of groceries. of the enactment of this Act. send kids to the pediatrician. The Second, when it comes to educating American family is sinking further and kids—while the Republicans are cut- By Mr. KERRY: further into debt and this Republican ting Pell grants and student loans for S. 1685. A bill to provide income and Congress is making it worse. average working families—I want to economic security to the American In 1995 commercial banks earned an use the Tax Code creatively. This profamily, and for other purposes; to the all-time record high profit of $48.8 bil- posal gives every family a $10,000 maxi- Committee on Finance. lion while consumer debt has soared 39 mum deduction for tuition costs; and it THE AMERICAN FAMILY INCOME AND ECONOMIC percent in the last 5 years and now ex- allows their sons or daughters, who SECURITY ACT ceeds $1 trillion. Personal bankruptcies take out a student loan, to deduct the Mr. KERRY. Mr. President, today I rose by 6 percent in 1 year, and con- interest on that loan so they are not am introducing the American Family sumers owe $360 billion on their credit saddled with debt as soon as they grad- Income and Economic Security Act. cards. And families in Massachusetts, uate. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3629 But more than helping families pay ees. Since the average American family investors who hold stock for at least 5 for tuition costs, I want to help parents spends $9,000 a year on daycare, it years. get the lifetime education and training makes sense to help businesses keep Massachusetts leads the Nation in they will need to compete. That is why families together—kids can be a few these cutting-edge technology-driven my proposal encourages companies to floors away rather than a few miles businesses, and is a model for the Na- provide education and training with a away, and we can take away parental tion on making investments count for $5,200 per employee tax deduction for anxiety while we raise their productiv- American working families. Let us training. ity. The Glass Ceiling Commission and make the Massachusetts high-tech ex- These proposals are real-life solu- others said that on-site daycare raises perience, America’s experience. tions to real-life family problems. How the productivity of American workers These businesses are doing it right can we say that everyone should go to by 10 percent. So what are we waiting and expanding into the global market, college—everyone should be trained for? and we should be encouraging that ex- and retrained—and then make it as dif- These are proposals to put more pansion. That is why this plan encour- ficult as we can to do it. How can we money in people’s pockets, and there is ages small businesses to export and not provide incentives to help educate one more proposal that is especially that is why it levels the playing field our workforce when we know that in important to Massachusetts and work- in Federal export financing between 1972 people with advanced degrees ing families everywhere: I am propos- the Export-Import Bank’s 90-percent earned 72 percent more than high ing to create a Federal tax deduction guaranteed coverage and the Small school graduates—when we know that for local sewer and water fees to help Business Administration’s 75 to 80 per- by 1992 those with graduate degrees those hardest hit by soaring water cent coverage. The Coalition of New made 2.5 times more than high school rates that are above 1 percent of a tax- England Companies for Trade strongly graduates—and when we know that payers adjusted gross income. supports this export enhancement idea today high school dropouts earn In and around Boston, water rates because they know it will work. But, scarcely half as much as high school continue to escalate—from $185 per most importantly, it encourages com- graduates and the education gap is wid- year in 1985 to $525 per year in 1992 and panies to keep jobs in this country ening? $618 for 1996. By the year 2000, the rate and—like Aaron Feuerstein—it encour- But education costs and retraining is projected to rise to $800. The Tax ages them to recognize that their em- are not the only hurdles families are Code allows deductions for State and ployees are an asset not a liability. facing. Health care costs and the fear local taxes, and this will similarly My friends, as I meet people across of catastrophic illness of a loved one avoid the double tax on water and this State, I find that many are con- add to America’s insecurities. Every sewer rates for homeowners. cerned about their retirement. Em- American has the right to feel secure And most importantly I reiterate my ployee pension plans should be sacred. that if they get sick, or their child or strong desire to double the income lev- That is why this proposal makes sure parents get sick, they will not face fi- els for those who participate in IRA’s. that private pension plans are not the nancial ruin. So, my plan endorses the I want individuals with incomes of toybox of corporate America. I am pro- Kennedy-Kassebaum bill that makes $50,000 and couples who make $80,000 to posing that we prohibit companies health insurance portable and limits be allowed to deduct IRA contribu- from using pension plans when consid- preexisting condition clauses. But it tions. And I want them to be allowed ering financing mergers and acquisi- goes one step further. early distribution to finance education, tions; and we prohibit companies from We know too well the horrors of a first time home buying, medical bills deducting merger and acquisition ex- family who has tragically lost a loved associated with catastrophic illness penses if the merger results in a 15 per- one at a young age. The entire family, and long-term unemployment. This is a cent reduction in the work force. in a time of grief, can be faced with common sense approach to increasing And we should not be rewarding cor- mounting medical bills. This proposal the national savings rate without porate behavior with misguided tax provides some security for younger breaking the Treasury. This is an inno- loopholes that gives favorable tax families who are forced to sell family vative approach that gives families the treatment to companies that move off- property because of a terminal illness. flexibility to grow and build and cope shore. If nothing else, a good corporate It zeroes-out capital gains taxes for with economic reality. citizen keeps jobs in America, stays in them to give them a chance to recover. These are the creative programs we America, and builds the American I am tired of going around Massachu- should incorporate into the Tax Code economy. I am proposing that we close setts and hearing stories of a family instead of giving tax breaks to Mac- those loopholes immediately. that took 10 years to crawl out from Donalds to finance their foreign adver- To take corporate citizenship one under the burden of debt caused by the tising budget. That is why I sponsored step further, I think we should punish loss of a loved one to breast cancer— a bipartisan bill to cut $60 billion in Federal contractors that hire illegal which strikes 1 in every 9 Massachu- corporate welfare and that is why I am immigrants. The Federal Government setts women—or AIDS—which is the proposing to stop companies from de- should lead by example and not allow leading killer of Massachusetts resi- ducting the salaries of employees who its contractors to hire undocumented dents aged 25 to 44. I am tired of going earn over $1 million a year. foreign workers at the expense of an back to Washington to see Republicans No wonder the average American American job. That is common sense continue their attempts to cut Medi- does not trust Government to help and its the kind of corporate citizen- care and Medicaid and cruelly leave so them. ship that we have every right to de- many of these young families in their To begin helping business move us in mand. political wake. the right direction I am proposing I am also proposing that Congress Young families are the strength of today a seven part business-to-family give its unequivocal support to the idea this Nation. If they work hard they plan that provides direct assistance to of companies granting stock options to have every right to expect success, se- high-growth, high-wage, job-producing people they layoff and downsize out of curity, and a piece of the dream—and it businesses; and punishes businesses a job. Why should not CEO’s with guar- is up to us to help them achieve it. I that put the bottom-line first and fam- anteed golden parachutes give loyal came to the Senate when my daughters ilies last. workers at least a tin parachute to were young and I know how hard it is On the positive side, I am proposing make downsizing easier? to have a career and be a good parent. to completely eliminate capital gains I am also proposing that we retro- Many families cannot afford the cost of taxes for investors who hold stock for actively and permanently extend the daycare, and do not want to be sepa- more than 10 years in qualified small, Research and Development tax credit rated from their children. That is why high-growth, job-creating, critical- that is so critical to a pro-growth, fu- I am proposing that businesses get a technology companies that do at least ture oriented economy that under- tax credit of up to 50 percent of their 75 percent of their business in the stands that responsible, thoughtful in- investment up to $150,000 for establish- United States; and I am proposing to vestment in research and development ing on-site daycare centers for employ- reduce the tax burden by 50 percent for can and will create the kind of high- S3630 CONGRESSIONAL RECORD — SENATE April 18, 1996 wage jobs we need. This provision is, skills and expertise are still needed by ployment before they’re eligible for an perhaps, the most critical of all. It es- the military in the same roles, but in immediate annuity, they see their fed- tablishes our commitment to investing new privatized facilities. Under the 1995 eral retirement benefits lose consider- in the future. It is not a gamble or a Base Closure and Realignment Com- able value. And, employees who with- waste of taxpayers’ dollars. It is a sure mission (BRAC), these employees are draw their retirement contribution not bet; and we should be willing to make still eligible to work for the Federal only forfeit all benefits, but also cost it. Government and receive a Federal pen- the government money up front. We should be willing to accept the sion. I think we can all agree that privat- costs of any and all of these propos- However, this would defeat one of our ization is a key component of reor- als—first because they can be offset by major goals in privatization—to save ganizing our defense priorities in this the $60 billion in savings we get from the taxpayer money. The idea under post-cold-war era of military down- stopping corporate welfare under the privatization is to continue utilizing sizing. But, I believe my legislation is bi-partisan bill that Senator MCCAIN these workers’ much-needed skills, but critical to ensuring that privatization and I sponsored; and second, because in the private sector, at a reduced cost works. we have to step up to the plate for to the taxpayer. Yet, by sending these It can accomplish these goals by pro- what’s right for working families and workers out into the private sector, we viding a deferred annuity with indexing what’s right for America. are asking a huge portion of them to pension benefits for CSRS Department So, what does my American Family give up their retirement benefits. of Defense employees. Their positions Income and Economic Security Act do? These workers are in a catch-22. If will be immediately transferred to con- It helps workers, it supports busi- they move into the privatized facili- tractors assuming the workload des- nesses, and it rewards corporate citi- ties, where they would be performing ignated for privatization. In this way zenship. It addresses the anxieties of the same mission and jobs as they had we can provide a very restricted, but American working families, and it beas Federal employees, they lose hard- common sense way of keeping our mili- gins to move us in the right direction. earned pensions. If they remain in the tary infrastructure running smoothly It fights against the wrong-headedness Federal Government, they could face as we embark on military privat- of Republican policies that have lower paying positions, while the com- ization’s maiden voyage. downsized the American dream and munity loses those workers altogether. And perhaps equally important, my shifted wealth to the top 10 percent of With little incentive to move into legislation sends a clear message to Americans. the private sector, these employees this work force that their loyalty and It is time to begin the shift back at could create a vacuum that private dedication did not go unnoticed. These least enough to protect hard working contractors are unable to fill. Under workers provided our men and women families from the extreme political that scenario everyone loses: Highly in uniform with the finest mainte- agenda of the Republicans in Congress. skilled workers will be underemployed nance, supply and logistics system in So, this proposal is a hedge against the and underpaid. Private contractors the world. The best way we can repay incredible odds that working families won’t be able to meet the challenge of this commitment to excellence is to face every day in meeting the bills for taking over government facilities. And uphold the Federal Government’s end health care, education, and a decent re- the taxpayer will foot the $390 million of the contract made when these work- tirement. It is a hedge against stag- cost-avoidance bill the Navy estimates ers first entered Government Service. nant wages, and it is a challenge to the government faces if they have to That’s in the workers’ best interest and businesses to be good corporate citi- keep these workers on the payroll and in the best interest of the Nation. zens, and to build a family friendly deal with the failure of privatization. I would also like at this time to workplace so that, together, we can This problem was brought to my at- thank Mrs. Carolyn Merk of the Con- build a better stronger American econ- tention when the Louisville Naval Ord- gressional Research Service for her omy. nance Station began the process of pri- outstanding professional work in help- vatization, where unlike other base ing craft this legislation that we’re in- By Mr. FORD (for himself, Mr. closings, moving the work would be a troducing today. COATS, Mr. LUGAR, Mrs. far greater cost than privatizing. But, Mr. President, I ask unanimous con- HUTCHISON, and Mr. MCCON- it is a problem faced by workers in the sent that additional material be print- NELL): same situation all across the country. ed in the RECORD. S. 1686. A bill to provide for early de- That is why I am introducing legisla- There being no objection, the mate- ferred annuities under chapter 83 of tion to provide a deferred annuity for rial was ordered to be printed in the Title 5, United States Code, for certain those Department of Defense employ- RECORD, as follows: former Department of Defense employees who are targeted for privatization, S. 1686 ees who are separated from service by but stand to lose their benefits under Be it enacted by the Senate and House of Rep- reason of certain defense base closures, the Civil Service Retirement System resentatives of the United States of America in and for other purposes; to the Commit- (CSRS). With this legislation, we can Congress assembled, tee on Governmental Affairs. make good on the promise our Govern- SECTION 1. EARLY DEFERRED ANNUITIES OF CERTAIN FORMER EMPLOYEES OF DEFENSE PRIVATIZATION AND WORKER ment made with these employees when THE DEPARTMENT OF DEFENSE. PROTECTION LEGISLATION they entered Government Service, and (a) DEFINITIONS.—For purposes of this sec- Mr. FORD. Mr. President, this coun- assure private contractors that a tion— try has undergone tremendous changes skilled work force will be available to (1) the term ‘‘Civil Service Retirement over the last few years as a result of them when they assume control of System’’ means the retirement system under military downsizing and base closures. former Defense Department facilities. subchapter III of chapter 83 of title 5, United Making the transition has proved very Most Federal employees hired before States Code; difficult to communities all across the 1984 participate in the CSRS, while (2) the term ‘‘defense contractor’’ means any entity that— country and today, in an effort to ease workers hired after 1984 belong to the (A) contracts with the Department of De- that transition, I am introducing legis- Federal Employees Retirement System fense to perform a function previously per- lation with original cosponsors Sen- (FERS). Unlike CSRS, FERS is a port- formed by Department of Defense employees; ators COATS, LUGAR, HUTCHINSON, and able plan, allowing a Federal employee (B) performs that function at the same in- MCCONNELL directed at specific prob- to move between Federal and non-fed- stallation at which such function was pre- lems we’ve seen with privatization of eral employment, without significantly viously performed by Department of Defense these bases. penalizing the accrual of Federal bene- employees or in the vicinity of that installa- I know many of my colleagues are fits. Unfortunately, CSRS participants tion; and aware of the job loss that results from (C) is the employer of one or more trans- do not enjoy this same flexibility, be- ferred employees; downsizing. That is because many jobs cause CSRS is a single component de- (3) the term ‘‘early deferred retirement have become obsolete or redundant. fined benefit plan. age’’ means the first age at which a trans- But, there’s also a whole other cat- Because CSRS-covered employees are ferred employee would have been eligible for egory of affected employees, whose forced to separate from Federal em- immediate retirement under subsection (a) April 18, 1996 CONGRESSIONAL RECORD — SENATE S3631 or (b) of section 8336 of title 5, United States ing on the date on which the transferred em- are—transferring to other Federal positions Code, if such transferred employee had re- ployee attains early deferred retirement age. to maintain and protect their retirement mained an employee within the meaning of (C) Average pay as adjusted by this para- benefits under the Civil Service Retirement section 8331(1) of such title continuously graph may not exceed the limitation on max- System (CSRS). until attaining such age; imum pay, final pay, or average pay (as ap- If many key employees transfer within the (4) the term ‘‘severance pay’’ means sever- plicable) under section 8340(g)(1) (A) or (B) of Government rather than work for a private ance pay payable under section 5595 of title title 5, United States Code. sector contractor, privatization savings to 5, United States Code; (2)(A) This paragraph applies to the com- the Government may not be fully realized. (5) the term ‘‘separation pay’’ means sepa- pensation of an annuity of a transferred em- The Department of the Navy estimates that ration pay payable under section 5597 of title ployee who retires in accordance with this privatization of Louisville and Indianapolis 5, United States Code; and section who immediately before separation would provide up to $390 million in ‘‘cost (6) the term ‘‘transferred employee’’ means from Federal service as described under sub- avoidance’’ to the Government. Unlike other a former employee of the Department of De- section (a)(6)(A) was a prevailing rate em- Base closings, the cost to the Federal gov- fense (other than a temporary employee) ployee as defined under section 5342(2) of ernment to close and move the work at Lou- who— title 5, United States Code. isville and Indianapolis is far greater than (A) while employed by the Department of (B) In the computation of an annuity re- the cost of privatization. The retention of Defense at a military installation to be ferred to under subparagraph (A) for a trans- the Federal employees at these facilities is closed or realigned pursuant to recommenda- ferred employee, average pay under section essential to the private contractor. tions of the Defense Base Closure and Re- 8331(4) of title 5, United States Code, shall be BACKGROUND alignment Commission that were approved adjusted at the same time and by the same The 1995 BRAC Commission directed pri- by the President in 1995 under section 2903(e) percentage that pay rates for positions that vatization of two Navy facilities with a large of the Defense Base Closure and Realignment are in the same area as, and are comparable federal workforce, the Naval Surface Warfare Act of 1990 (title XXIX of Public Law 101–510; to, the last position the transferred em- Center, Louisville, Kentucky and the Naval 10 U.S.C. 2687 note) and while covered under ployee held as a prevailing rate employee, Surface Warfare Center, Indianapolis, Indi- the Civil Service Retirement System, was are increased under section 5343(a) of such ana. In addition, President Clinton directed separated from Federal service in a reduc- title during the period beginning on the date the Air Force to try and privatize two Air tion-in-force resulting from conversion from on which the transferred employee separates Force logistic centers, one in Texas and one performance of a function by Department of from Federal service as described under sub- in California which were ordered to be closed Defense employees at that military installa- section (a)(6)(A) and ending on the date on by the 1995 BRAC. tion to performance of that function by a de- which the transferred employee attains early These Federal employees are different fense contractor at that installation or in deferred retirement age. from other employees adversely affected by the vicinity of that installation; (d) SERVICE FOR A DEFENSE CONTRACTOR downsizing. The key difference is that these (B) is employed by the defense contractor RELATING TO CREDITABLE SERVICE AND employees are not being separated because within 60 days following such separation to HEALTH INSURANCE.—(1) Service performed their services are no longer needed or be- perform substantially the same function per- by a transferred employee for a defense con- cause the work they accomplished is redun- formed before the separation; tractor after separation from Federal service dant or unnecessary. Under the BRAC ‘‘Close (C) remains employed by the defense con- as described under subsection (a)(6)(A) shall and Move’’ scenario, these employees would tractor or a successor defense contractor, or not be treated as creditable service for pur- have been eligible to continue their Federal subcontractor of a defense contractor until poses of computing the amount of an early employment (and qualify for an annuity) at attaining early deferred retirement age or is deferred annuity in accordance with this sec- another federal installation. These employ- involuntarily separated from employment by tion. ees are expected to continue accomplishing the defense contractor before attaining such (2) Nothing in this section shall be con- the same mission as before, but they will be age for reasons other than misconduct; strued to require employee or agency con- working as private sector employees. (D) at the time separated from Federal tributions under chapter 89 of title 5, United Most Federal employees hired before 1984 service, was not eligible for an immediate States Code, for any period of service per- currently participate in the CSRS. Those annuity under the Civil Service Retirement formed by a transferred employee for a de- workers hired after 1984 participate in the System; fense contractor after separation from Fed- Federal Employees Retirement System (E) does not withdraw retirement contribu- eral service as described under subsection (FERS). FERS is different than CSRS be- tions under section 8342 of title 5, United (a)(6)(A). cause it is a portable plan that allows a Fed- States Code; and (e) RECEIPT OF BENEFITS WHILE EMPLOYED eral employee to move between Federal and (F)(i) has not received separation pay or BY A DEFENSE CONTRACTOR.—A transferred non-federal employment. In doing so, the ac- severance pay due to a separation described employee may commence receipt of an early crual of Federal benefits is not significantly in subparagraph (A); or deferred annuity in accordance with this sec- penalized. (ii) has repaid the full amount of such pay tion while continuing to work for a defense However, employees under CSRS have no with interest (as determined by the Office of contractor. portability because it is a single component Personnel Management) to the Department (f) LUMP-SUM CREDIT PAYMENT.—If a trans- defined benefit plan. Therefore, when CSRS- of Defense before attaining early deferred referred employee dies before attaining early COVERED workers are forced to separate tirement age. deferred retirement age, such employee shall from Federal employment before they are el- (b) RETIREMENT BENEFITS OF TRANSFERRED be treated as a former employee who dies not igible for an immediate annuity, their retire- EMPLOYEES.—Notwithstanding the age re- retired for purposes of payment of the lump- ment benefits lose considerable value. Em- quirement under section 8338(a) of title 5, sum credit under section 8342(d) of title 5, ployees who lose their Federal position and United States Code, payment of a deferred United States Code. withdraw their retirement contribution annuity for which a transferred employee is (g) IMPLEMENTING REGULATIONS.—The Of- early will forfeit all benefits from the Fed- eligible under that section shall commence fice of Personnel Management shall promul- eral government and thereby are not eligible on the first day of the first month that be- gate regulations to carry out the provisions for a pension. gins after the date on which the transferred of this section. Employees with the most experience tend employee attains early deferred retirement (h) EFFECTIVE DATE.—This section shall to be covered under CSRS. These are the em- age. take effect on August 1, 1996, and shall apply ployees the contractor taking over the work (c) COMPUTATION OF AVERAGE PAY.—(1)(A) to transferred employees separated from at a government facility considers to be very This paragraph applies to the computation of Federal service on or after that date. valuable. For example, 46% of the employees the annuity of a transferred employee who at the Louisville Naval Surface Warfare Cen- retires under this section who immediately BRAC PRIVATIZATION: THE CSRS ISSUE ter are covered by CSRS and are not eligible before separation from Federal service as de- ISSUE for retirement. Many of these employees, scribed under subsection (a)(6)(A) was em- and those in Indiana, Texas and California ployed in a position classified under the Gen- The 1995 Base Realignment and Closure (BRAC) Commission recommended the pri- who are highly skilled, are seeking to trans- eral Schedule. fer to other Federal positions. Some are even (B) Subject to subparagraph (C), in the vatization of certain military facilities. The accepting lower paid positions within DOD computation of an annuity referred to under President has directed the Air Force to pri- so they may maintain their CSRS retire- subparagraph (A) for a transferred employee, vatize two Air Force logistic centers. For ment benefits. As a result, there is little in- the average pay of the transferred employee privatization to succeed, the maintenance of under section 8331(4) of title 5, United States an experienced workforce is critical. Retire- centive for CSRS employees to accept posi- Code, shall be adjusted at the same time and ment benefits have become recognized as a tions with the private contractor. Therefore, by the same percentage that rates of basic major impediment to the privatization of the the privatization of Federal facilities could pay are increased under section 5303 of title Louisville and Indianapolis Navy facilities fail at a significant cost to the Government 5, United States Code, during the period be- and other Department of Defense (DOD) fa- and the U.S. taxpayers. ginning on the date on which the transferred cilities. LEGISLATIVE REMEDY: employee separates from Federal service as Without legislation to protect their retire- To rectify the CSRS issue, the attached described under subsection (a)(6)(A) and end- ment benefits many employees will—and draft legislation proposes to index a deferred S3632 CONGRESSIONAL RECORD — SENATE April 18, 1996 annuity for certain DOD CSRS Employees. entire FICO interest obligation would SKI, Ms. MIKULSKI, Mr. HELMS, The legislation would address the issue of worsen the disparity between what Mr. ROTH, Mr. SANTORUM, and CSRS employees receiving a retirement ben- banks must pay to such a degree as to Mr. LUGAR): efit by: risk default by the SAIF, which would S.J. Res. 51. A joint resolution salut- Indexing the average pay on which the annuity is computed, and ultimately result in a further drain on ing and congratulating Polish people Allowing a Federal deferred annuity to be the Treasury.’’ around the world as, on May 3, 1996, paid to specific CSRS employees at the indi- Mr. President, this just makes sense. they commemorate the 205th anniver- viduals optional retirement age. The Federal Reserve is controlling a sary of the adoption of Poland’s first The legislation will apply only to Trans- fund with no specific purpose—paid in constitution; to the Committee on the ferred Employees of the Department of De- by banks—and the Congress should Judiciary. fense. A Transferred Employee is one whose turn to this fund first before asking POLAND CONSTITUTION 205TH ANNIVERSARY job is privatized pursuant to a 1995 decision bankers in this country to bear the COMMEMORATION JOINT RESOLUTION of the BRAC Commission and pursuant to a President directive privatizing a base to be burden of recapitalizing the savings as- Mr. DOLE. Mr. President, today I am closed by the 1995 BRAC. This indexedial de- sociation insurance fund. introducing a joint resolution which ferred annuity will be available only to indi- Mr. President, I ask unanimous con- salutes and congratulates Polish people viduals participating in CSRS, and not to sent to have the bill printed in the around the world on the occasion of the those participating in FERS. The proposed RECORD. 205th anniversary of the Polish Con- legislation will apply to only those CSRS There being no objection, the bill was stitution. I am pleased to be joined by employees who are ineligible to retire and ordered to be printed in the RECORD, as Senators SIMON, ABRAHAM, MOSELEY- who accept work with the private contrac- follows: BRAUN, MURKOWSKI, MIKULSKI, HELMS, tor. They will be ineligible for severance pay. S. 1687 ROTH, SANTORUM, and LUGAR. This res- Reasons for legislation: Be it enacted by the Senate and House of Rep- olution is being introduced today in At this time there are no administrative resentatives of the United States of America in the House by Congressman JACK QUINN remedies. Congress assembled, of New York and a number of biparti- Treats employees equitably and thus sta- SECTION 1. SHORT TITLE. san cosponsors. bilizes the work force for privatization. This Act may be cited as the ‘‘Federal Re- Poland is one of America’s oldest and serve Surplus Act of 1996’’. closest friends. Many of its sons and By Mr. KERRY: SEC. 2. TRANSFER OF FEDERAL RESERVE SUR- daughters have crossed the ocean to S. 1687. A bill to provide for annual PLUS FUNDS TO MEET FICO CARRY- our shores over the past 200 years. In- ING COSTS. payments from the surplus funds of the deed, from the very birth of our great Federal Reserve System to cover the (a) IN GENERAL.—Section 7(a) of the Fed- eral Reserve Act (12 U.S.C. 289) is amended nation we have benefited from the tal- interest on obligations issued by the ent and dedication of the Polish people. Financing Corporation; to the Commit- by adding at the end the following new paragraph: When we fought for our independence, tee on Banking, Housing, and Urban ‘‘(4) FICO PAYMENTS.— Thaddeus Kosciuszko—a native son of Affairs. ‘‘(A) IN GENERAL.—During the period begin- Poland—fought alongside General THE FEDERAL RESERVE SURPLUS ACT OF 1996 ning on the date of enactment of the Federal Washington. Today, memorials to ∑ Mr. KERRY. Mr. President, I am in- Reserve Surplus Act of 1996 and ending on Kosciuszko’s courage, military skill, the date on which the Financing Corporation troducing the Federal Reserve Surplus and genuine friendship, can be found in Act of 1996 to provide a solution to an ceases to have any obligations outstanding under section 21(e) of the Federal Home Loan our Capital and in many cities across impending crisis in our financial serv- Bank Act, the Board shall annually transfer the United States. ices industry, and to avoid once again (in addition to the transfers of funds re- Following the War of Independence, having to use taxpayers’ money to bail quired under paragraph (3)) to the Financing Kosciuszko carried back to Poland the out another round of S&L failures. I Corporation, from amounts in the surplus American concept of constitutional de- am happy to join my colleague in the funds of the Federal reserve banks, an mocracy. Poland’s 1791 Constitution House, Congressman BARNEY FRANK as amount equal to $3,000,000,000 divided by the was the first constitution in Central well as other members of the Massa- number of calendar years any portion of and Eastern Europe to secure individ- which falls within such period for use in ac- chusetts delegation, Congressmen JOE cordance with section 21(f)(1) of the Federal ual and religious freedom for all per- KENNEDY, MARTY MEEHAN, and RICHARD Home Loan Bank Act. sons. It also formed a government NEAL, who introduced the companion ‘‘(B) ALLOCATION.—The Board shall annu- much like ours, composed of distinct bill in the House of Representatives. ally determine, on the basis of such factors legislative, executive, and judicial pow- This bill will ease the obligation re- as the Board considers appropriate, the man- ers. I would like to quote from the Pol- maining from the savings and loan cri- ner in which the amount of the obligation of ish Constitution which declares, ‘‘All sis of the 1980’s with a creative ap- the Board under subparagraph (A) shall be power in civil society should be derived proach that does not burden the bank- allocated among the surplus funds of the from the will of the people.’’ ing institutions or taxpayers, but uses Federal reserve banks.’’. Tragically, this Constitution was (b) CONFORMING AMENDMENT.—Paragraph an existing $3.7 billion fund at the Fed- (1) of section 21(f) of the Federal Home Loan only in effect for less than 2 years. eral Reserve. The GAO tells us that be- Bank Act (12 U.S.C. 1441(f)) is amended to However, its principles endured for 2 cause the Federal Reserve’s interest in- read as follows: centuries. And over the last 5 years— come so far exceeds its expenses, we be- ‘‘(1) FEDERAL RESERVE SURPLUS.— since the disintegration of the Warsaw lieve it is highly unlikely the System ‘‘(A) IN GENERAL.—Amounts transferred to Pact—Poland has finally realized the will ever incur sufficient annual losses the Financing Corporation by the Board of promise of freedom and democracy held such that it would be required to use Governors of the Federal Reserve System in the 1791 Constitution. any funds in the surplus account. from the surplus funds of the Federal reserve So, on May 3, 1996, when the citizens Savings and loans are required to pay banks in accordance with section 7(a)(4) of the Federal Reserve Act. of Poland celebrate the 205th anniver- almost $800 million per year in interest ‘‘(B) TREATMENT IN CASE OF BANK INSUR- sary of the adoption of Poland’s first on financing corporation bonds which ANCE FUND MEMBER ASSESSMENTS.—To the ex- Constitution, we want them to know were sold to cover depositor claims on tent Bank Insurance Fund members (as de- that the United States Congress shares S&L’s that failed in the 1980’s. This fined in section 7(l)(4) of the Federal Deposit in their celebration. No doubt, all legislation would use $3 billion from Insurance Act) are subject to any assess- across our 50 States, Polish-Americans the Federal Reserve’s surplus fund as a ments under this subsection, the total will be celebrating and taking pride in contribution toward the payment of amount of such assessments which, but for their rich heritage. This joint resolu- the FICO interest obligation. This this subparagraph, would be imposed on all such members for any year shall be reduced tion salutes and congratulates all Pol- would leave about $1 billion in the by the transferred amount referred to in sub- ish people, wherever they may now refund. paragraph (A) with respect to such year.’’.∑ side, on this great and historic occa- It is generally believed, within the fi- sion. nancial community, as Congressman By Mr. DOLE (for himself, Mr. Mr. President, I ask unanimous con- FRANK has said, that ‘‘continuing to re- SIMON, Mr. ABRAHAM, Ms. sent that the text of the joint resolu- quire the savings and loans to pay the MOSELEY-BRAUN, Mr. MURKOW- tion be printed in the RECORD. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3633

There being no objection, the joint lina [Mr. HELMS] was added as a co- utable to property imported into the resolution was ordered to be printed in sponsor of S. 881, a bill to amend the United States. the RECORD, as follows: Internal Revenue Code of 1986 to clarify S. 1400 S.J. RES. 51 provisions relating to church pension At the request of Mrs. KASSEBAUM, Whereas, on May 3, 1996, Polish people benefit plans, to modify certain provi- the name of the Senator from Indiana around the world, including Americans of sions relating to participants in such [Mr. COATS] was added as a cosponsor Polish decent, will celebrate the 205th anni- plans, to reduce the complexity of and of S. 1400, a bill to require the Sec- versary of the adoption of the first Polish to bring workable consistency to the constitution; retary of Labor to issue guidance as to Whereas American Revolutionary War hero applicable rules, to promote retirement the application of the Employee Re- Thaddeus Kosciuszko introduced the concept savings and benefits, and for other pur- tirement Income Security Act of 1974 of constitutional democracy to his native poses. to insurance company general ac- country of Poland; S. 953 counts. Whereas the Polish constitution of 1791 At the request of Mr. CHAFEE, the S. 1473 was the first liberal constitution in Europe and represented Central-Eastern Europe’s names of the Senator from Nebraska At the request of Ms. SNOWE, the first attempt to end the feudal system of [Mr. KERREY], the Senator from Maine name of the Senator from North Da- government; [Ms. SNOWE], the Senator from Iowa kota [Mr. CONRAD] was added as a co- Whereas this Polish constitution was de- [Mr. HARKIN], and the Senator from sponsor of S. 1473, a bill to authorize signed to protect Poland’s sovereignty and South Carolina [Mr. HOLLINGS] were the Administrator of General Services national unity and to create a progressive added as cosponsors of S. 953, a bill to constitutional monarchy; to permit the posting in space under Whereas this Polish constitution was the require the Secretary of the Treasury the control of the Administrator of no- first constitution in Central-Eastern Europe to mint coins in commemoration of tices concerning missing children, and to secure individual and religious freedom black revolutionary war patriots. for other purposes. for all persons in Poland; S. 968 S. 1505 Whereas this Polish constitution formed a At the request of Mr. MCCONNELL, OTT government composed of distinct legislative, At the request of Mr. L , the name executive, and judicial powers; the name of the Senator from Wyoming of the Senator from Oklahoma [Mr. Whereas this Polish constitution declared [Mr. SIMPSON] was added as a cosponsor INHOFE] was added as a cosponsor of S. that ‘‘all power in civil society should be de- of S. 968, a bill to require the Secretary 1505, a bill to reduce risk to public safe- rived from the will of the people’’; of the Interior to prohibit the import, ty and the environment associated Whereas this Polish constitution revital- export, sale, purchase, and possession with pipeline transportation of natural ized the parliamentary system by placing preeminent lawmaking power in the House of of bear viscera or products that con- gas and hazardous liquids, and for Deputies, by subjecting the Sejm to majority tain or claim to contain bear viscera, other purposes. rule, and by granting the Sejm the power to and for other purposes. S. 1537 remove ministers, appoint commissars, and S. 984 At the request of Mr. ROBB, the name choose magistrates; At the request of Mr. GRASSLEY, the of the Senator from Missouri [Mr. Whereas this Polish constitution provided for significant economic, social, and political name of the Senator from Alaska [Mr. ASHCROFT] was added as a cosponsor of reforms by removing inequalities between MURKOWSKI] was added as a cosponsor S. 1537, a bill to require the Adminis- the nobility and the bourgeoisie, by rec- of S. 984, a bill to protect the fun- trator of the Environmental Protection ognizing town residents as ‘‘freemen’’ who damental right of a parent to direct Agency to issue a regulation that con- had judicial autonomy and expanded rights, the upbringing of a child, and for other solidates all environmental laws and and by extending the protection of the law to purposes. health and safety laws applicable to the peasantry who previously had no re- S. 1028 the construction, maintenance, and op- course against the arbitrary actions of feudal lords; At the request of Mr. WYDEN, his eration of above-ground storage tanks, Whereas, although this Polish constitution name was added as a cosponsor of S. and for other purposes. was in effect for less than 2 years, its prin- 1028, a bill to provide increased access S. 1563 ciples endured and it became the symbol to health care benefits, to provide in- At the request of Mr. SIMPSON, the around which a powerful new national con- creased portability of health care bene- name of the Senator from Louisiana sciousness was born, helping Poland to survive long periods of misfortune over the fol- fits, to provide increased security of [Mr. BREAUX] was added as a cosponsor lowing 2 centuries; and health care benefits, to increase the of S. 1563, a bill to amend title 38, Unit- Whereas, in only the last 5 years, Poland purchasing power of individuals and ed States Code, to revise and improve has realized the promise held in the Polish small employers, and for other pur- eligibility for medical care and services constitution of 1791, has emerged as an inde- poses. under that title, and for other pur- pendent nation after its people led the move- At the request of Mrs. KASSEBAUM, poses. ment that resulted in historic changes in the names of the Senator from Colo- S. 1568 Central-Eastern Europe, and is moving toward full integration with the Euro-Atlantic rado [Mr. CAMPBELL], and the Senator At the request of Mr. HATCH, the community of nations: Now, therefore, be it from New Mexico [Mr. DOMENICI] were name of the Senator from Colorado Resolved by the Senate and House of Rep- added as cosponsors of S. 1028, supra. [Mr. CAMPBELL] was added as a cospon- resentatives of the United States of America in S. 1183 sor of S. 1568, a bill to amend the Inter- Congress assembled, That— At the request of Mr. HATFIELD, the nal Revenue Code of 1986 to provide for (1) the people of the United States salute and congratulate Polish people around the name of the Senator from Hawaii [Mr. the extension of certain expiring provi- world, including Americans of Polish de- INOUYE] was added as a cosponsor of S. sions. scent, as on May 3, 1996, they commemorate 1183, a bill to amend the Act of March S. 1578 the 205th anniversary of the adoption of the 3, 1931 (known as the Davis-Bacon Act), At the request of Mr. FRIST, the first Polish constitution; to revise the standards for coverage name of the Senator from Rhode Island (2) the people of the United States recog- under the Act, and for other purposes. [Mr. CHAFEE] was added as a cosponsor nize Poland’s rebirth as a free and independent nation in the spirit of the legacy of the S. 1355 of S. 1578, a bill to amend the Individ- Polish constitution of 1791; and At the request of Mr. DORGAN, the uals with Disabilities Education Act to (3) the Congress authorizes and urges the names of the Senator from West Vir- authorize appropriations for fiscal President of the United States to call upon ginia [Mr. ROCKEFELLER], the Senator years 1997 through 2002, and for other the Governors of the States, the leaders of from Nevada [Mr. BRYAN], the Senator purposes. local governments, and the people of the S. 1610 United States to observe this anniversary from Arkansas [Mr. PRYOR], the Sen- with appropriate ceremonies and activities. ator from California [Mrs. BOXER], and At the request of Mr. BOND, the name f the Senator from Hawaii [Mr. INOUYE] of the Senator from Arizona [Mr. KYL] were added as cosponsors of S. 1355, a was added as a cosponsor of S. 1610, a ADDITIONAL COSPONSORS bill to amend the Internal Revenue bill to amend the Internal Revenue S. 881 Code of 1986 to end deferral for United Code of 1986 to clarify the standards At the request of Mr. PRYOR, the States shareholders on income of con- used for determining whether individ- name of the Senator from North Caro- trolled foreign corporations attrib- uals are not employees. S3634 CONGRESSIONAL RECORD — SENATE April 18, 1996

S. 1623 ramifications and seriously threaten other 275 days after the submission of the prelimi- At the request of Mr. WARNER, the U.S. interests in west Africa; nary report. names of the Senator from Virginia (3) calls upon all factions to reach a f ceasefire and re-commit themselves to the [Mr. ROBB] and the Senator from Cali- Abuja process; and THE HEALTH INSURANCE REFORM fornia [Mrs. BOXER] were added as co- (4) urges the Administration to: ACT OF 1996 sponsors of S. 1623, a bill to establish a a. scrutinize the Federal budget to identify National Tourism Board and a Na- funds that could be either re-programmed or tional Tourism Organization, and for transferred and used to support additional KASSEBAUM (AND KENNEDY) other purposes. non-Nigerian West African peacekeepers; AMENDMENT NO. 3675 b. consider the provision of excess defense SENATE RESOLUTION 226 articles for communications and logistical Mrs. KASSEBAUM (for herself and At the request of Mr. DOMENICI, the support and training for crowd-control tech- Mr. KENNEDY) proposed an amendment names of the Senator from Virginia niques for non-Nigerian troops to participate to the bill (S. 1028) to provide increased [Mr. WARNER] and the Senator from effectively in a west African peacekeeping access to health care benefits, to pro- Minnesota [Mr. WELLSTONE] were added force; vide increased portability of health as cosponsors of Senate Resolution 226, c. use its influence with other nations with interests in Liberia to solicit further support care benefits, to provide increased se- a resolution to proclaim the week of curity of health care benefits, to in- October 13 through October 19, 1996, as for west African peacekeeping forces, including their participation at the April 26 meet- crease the purchasing power of individ- ‘‘National Character Counts Week.’’ ing of a newly-formed Contact Group in Li- uals and small employers, and for other f beria; and purposes; as follows: d. lead efforts in the United Nations to ac- SENATE RESOLUTION 248— Strike out all after the enacting clause and tivate a Commission in the United Nations insert in lieu thereof the following: RELATIVE TO LIBERIA to develop an implementation plan and sanc- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Mr. FEINGOLD (for himself, Mrs. tions against those parties violating the U.N. arms embargo on Liberia. (a) SHORT TITLE.—This Act may be cited as KASSEBAUM, Mr. SIMON, Mr. LEAHY, Mr. the ‘‘Health Insurance Reform Act of 1996’’. JEFFORDS, and Mr. PELL) submitted the Mr. FEINGOLD. Mr. President, I am (b) TABLE OF CONTENTS.—The table of con- following resolution; which was re- submitting a resolution today on be- tents for this Act is as follows: ferred to the Committee on Foreign half of myself, and Senators KASSE- Sec. 1. Short title; table of contents. Relations: BAUM, SIMON, LEAHY, JEFFORDS, and Sec. 2. Definitions. S. RES. 248 PELL, which includes proposals for TITLE I—HEALTH CARE ACCESS, Whereas, the war in Liberia begun in 1989 United States action in support of the PORTABILITY, AND RENEWABILITY has devastated that country, with more than Liberian peace process. I will be speak- Subtitle A—Group Market Rules 150,000 people killed, up to 1 million forced to ing at length on this later this week. Sec. 101. Guaranteed availability of health flee as refugees to neighboring countries, and f coverage. thousands of children conscripted into the AMENDMENTS SUBMITTED Sec. 102. Guaranteed renewability of health rebel armies; coverage. Whereas, the Abuja Accords signed in Au- Sec. 103. Portability of health coverage and gust 1995 represented the most realistic path limitation on preexisting condi- for lasting peace; THE IMMIGRATION AND NATION- tion exclusions. Whereas, the Senate passed a resolution on ALITY ACT AMENDMENT ACT OF Sec. 104. Special enrollment periods. September 20, 1995, expressing the sense of 1996 Sec. 105. Disclosure of information. the Congress that the United States should Subtitle B—Individual Market Rules strongly support the peace process in Libe- ria, including support for the west African FAIRCLOTH AMENDMENT NO. 3674 Sec. 110. Individual health plan portability. peacekeeping force; Sec. 111. Guaranteed renewability of individ- Whereas the U.S. committed $10 million in (Ordered to lie on the table.) ual health coverage. support for the west African peacekeeping Mr. FAIRCLOTH submitted an Sec. 112. State flexibility in individual mar- force, but has delivered only $5.5 million, amendment intended to be proposed by ket reforms. most of which arrived only in February 1996; him to the bill (S. 1664) to amend the Sec. 113. Definition. Whereas, the peacekeeping force has fewer Immigration and Nationality Act to in- Subtitle C—COBRA Clarifications than 6,000 soldiers, but needs over 15,000 to crease control over immigration to the Sec. 121. COBRA clarifications. carry out its mission; United States by increasing border pa- Subtitle D—Private Health Plan Purchasing Whereas, violence characterized by mas- trol and investigative personnel and Cooperatives sive looting, shelling, and ethnic hostilities broke out in Monrovia on April 6, 1996, forc- detention facilities, improving the sys- Sec. 131. Private health plan purchasing co- ing tens of thousands of people into hiding, tem used by employers to verify citi- operatives. without food and water, halting most hu- zenship or work-authorized alien sta- TITLE II—APPLICATION AND manitarian assistance programs in Liberia, tus, increasing penalties for alien ENFORCEMENT OF STANDARDS and signifying a failure of the west African smuggling and document fraud, and re- Sec. 201. Applicability. peacekeeping force to maintain order and forming asylum, exclusion, and depor- Sec. 202. Enforcement of standards. stability in Monrovia; tation law and procedures; to reduce TITLE III—MISCELLANEOUS PROVISIONS Whereas, 214 U.S. armed forces and 1400 the use of welfare by aliens; and for support personnel have been deployed to Li- Sec. 301. HMOs allowed to offer plans with beria to facilitate the successful evacuation other purposes; as follows: deductibles to individuals with of approximately 1800 people, including over At the appropriate place in the bill, insert medical savings accounts. 300 Americans, from Liberia; the following new section: Sec. 302. Health coverage availability study. Whereas, while the U.S. is the only func- SEC. . REVIEW OF CONTRACTS WITH STANDARD- Sec. 303. Sense of the Committee concerning tioning diplomatic mission in Monrovia, IZED CITIZENSHIP TEST CENTERS. medicare. some nations, such as Japan, have continu- (a) IN GENERAL.—The Attorney General of Sec. 304. Effective date. ing economic concerns in Liberia and other the United States shall investigate and sub- Sec. 305. Severability. nations, such as France, have national inter- mit a report to the Congress regarding the SEC. 2. DEFINITIONS. ests in western Africa; and practices of test centers authorized to ad- As used in this Act: Whereas, negotiations for a ceasefire and minister the standardized citizenship test (1) BENEFICIARY.—The term ‘‘beneficiary’’ the peaceful release of hostages are being led pursuant to section 312.3(a) of title 8, Code of has the meaning given such term under sec- by Ghanian Kojo Tsikata, and Cote D’Ivoire, Federal Regulations. The report shall in- tion 3(8) of the Employee Retirement Income Burkina Faso and others are trying to use clude any findings of fraudulent practices by Security Act of 1974 (29 U.S.C. 1002(8)). their influence to moderate combatants. the centers. (2) EMPLOYEE.—The term ‘‘employee’’ has Therefore, be it resolved, that the Senate (b) PRELIMINARY AND FINAL REPORTS.—Not the meaning given such term under section (1) commends the U.S. Armed Forces and later than 90 days after the date of the enact- 3(6) of the Employee Retirement Income Se- the U.S. Embassy personnel for the success- ment of this Act, the Attorney General shall curity Act of 1974 (29 U.S.C. 1002(6)). ful evacuation of over 1795 people from Libe- submit to the Congress a preliminary report (3) EMPLOYER.—The term ‘‘employer’’ has ria; of the findings of the investigation con- the meaning given such term under section (2) declares that a breakdown of the Abuja ducted pursuant to subsection (a) and shall 3(5) of the Employee Retirement Income Se- process would have disastrous humanitarian submit to the Congress a final report within curity Act of 1974 (29 U.S.C. 1002(5)), except April 18, 1996 CONGRESSIONAL RECORD — SENATE S3635 that such term shall include only employers (vii) Coverage for a specified disease or ill- (B) the health plan issuer can demonstrate of two or more employees. ness. to the applicable certifying authority (as de- (4) EMPLOYEE HEALTH BENEFIT PLAN.— (viii) Hospital or fixed indemnity insur- fined in section 202(d)), if required, that its (A) IN GENERAL.—The term ‘‘employee ance. financial or provider capacity to serve pre- health benefit plan’’ means any employee (ix) Short-term limited duration insur- viously covered participants and bene- welfare benefit plan, governmental plan, or ance. ficiaries (and additional participants and church plan (as defined under paragraphs (1), (x) Credit-only, dental-only, or vision-only beneficiaries who will be expected to enroll (32), and (33) of section 3 of the Employee Re- insurance. because of their affiliation with a group pur- tirement Income Security Act of 1974 (29 (xi) A health insurance policy providing chaser or such previously covered partici- U.S.C. 1002 (1), (32), and (33))), or any health benefits only for long-term care, nursing pants or beneficiaries) will be impaired if the benefit plan under section 5(e) of the Peace home care, home health care, community- health plan issuer is required to offer cov- Corps Act (22 U.S.C. 2504(e)), that provides or based care, or any combination thereof. erage to additional group purchasers. pays for health benefits (such as provider (7) GROUP PURCHASER.—The term ‘‘group Such health plan issuer shall be prohibited and hospital benefits) for participants and purchaser’’ means any person (as defined from offering coverage after a cessation in beneficiaries whether— under paragraph (9) of section 3 of the Em- offering coverage under this paragraph for a (i) directly; ployee Retirement Income Security Act of 6-month period or until the health plan is- (ii) through a group health plan offered by 1974 (29 U.S.C. 1002(9)) or entity that pur- suer can demonstrate to the applicable cer- a health plan issuer as defined in paragraph chases or pays for health benefits (such as tifying authority (as defined in section (8); or provider or hospital benefits) on behalf of 202(d)) that the health plan issuer has ade- (iii) otherwise. two or more participants or beneficiaries in quate capacity, whichever is later. (B) RULE OF CONSTRUCTION.—An employee connection with an employee health benefit (2) FIRST-COME-FIRST-SERVED.—A health health benefit plan shall not be construed to plan. A health plan purchasing cooperative plan issuer offering a group health plan is be a group health plan, an individual health established under section 131 shall not be only eligible to exercise the limitations pro- plan, or a health plan issuer. considered to be a group purchaser. vided for in paragraph (1) if the health plan (C) ARRANGEMENTS NOT INCLUDED.—Such (8) HEALTH PLAN ISSUER.—The term term does not include the following, or any ‘‘health plan issuer’’ means any entity that issuer offers coverage to group purchasers combination thereof: is licensed (prior to or after the date of en- under such plan on a first-come-first-served (i) Coverage only for accident, or disability actment of this Act) by a State to offer a basis or other basis established by a State to income insurance, or any combination there- group health plan or an individual health ensure a fair opportunity to enroll in the of. plan. plan and avoid risk selection. (c) CONSTRUCTION.— (ii) Medicare supplemental health insur- (9) PARTICIPANT.—The term ‘‘participant’’ ance (as defined under section 1882(g)(1) of has the meaning given such term under sec- (1) MARKETING OF GROUP HEALTH PLANS.— the Social Security Act). tion 3(7) of the Employee Retirement Income Nothing in this section shall be construed to (iii) Coverage issued as a supplement to li- Security Act of 1974 (29 U.S.C. 1002(7)). prevent a State from requiring health plan issuers offering group health plans to ac- ability insurance. (10) PLAN SPONSOR.—The term ‘‘plan spon- (iv) Liability insurance, including general sor’’ has the meaning given such term under tively market such plans. liability insurance and automobile liability section 3(16)(B) of the Employee Retirement (2) INVOLUNTARY OFFERING OF GROUP insurance. Income Security Act of 1974 (29 U.S.C. HEALTH PLANS.—Nothing in this section shall (v) Workers compensation or similar insur- 1002(16)(B)). be construed to require a health plan issuer ance. (11) SECRETARY.—The term ‘‘Secretary’’, to involuntarily offer group health plans in a (vi) Automobile medical payment insur- unless specifically provided otherwise, particular market or to require a health plan ance. means the Secretary of Labor. issuer to involuntarily issue a group health (vii) Coverage for a specified disease or ill- (12) STATE.—The term ‘‘State’’ means each plan to a group health plan purchaser in a ness. of the several States, the District of Colum- particular market if the group health plan (viii) Hospital or fixed indemnity insur- bia, Puerto Rico, the United States Virgin was specifically designed for a different mar- ance. Islands, Guam, American Samoa, and the ket. For the purposes of this paragraph, the (ix) Short-term limited duration insur- Commonwealth of the Northern Mariana Is- term ‘‘market’’ means either the large em- ance. lands. ployer market or the small employer market (x) Credit-only, dental-only, or vision-only TITLE I—HEALTH CARE ACCESS, (as defined under applicable State law, or if insurance. PORTABILITY, AND RENEWABILITY not so defined, an employer with more than one employee and not more than 50 employ- (xi) A health insurance policy providing Subtitle A—Group Market Rules benefits only for long-term care, nursing ees). SEC. 101. GUARANTEED AVAILABILITY OF home care, home health care, community- SEC. 102. GUARANTEED RENEWABILITY OF HEALTH COVERAGE. based care, or any combination thereof. HEALTH COVERAGE. (a) IN GENERAL.— (5) FAMILY.— (a) IN GENERAL.— (1) NONDISCRIMINATION.—Except as provided (1) GROUP PURCHASER.—Subject to sub- (A) IN GENERAL.—The term ‘‘family’’ means in subsection (b), section 102 and section sections (b) and (c), a group health plan shall an individual, the individual’s spouse, and 103— the child of the individual (if any). (A) a health plan issuer offering a group be renewed or continued in force by a health (B) CHILD.—For purposes of subparagraph health plan may not decline to offer whole plan issuer at the option of the group pur- (A), the term ‘‘child’’ means any individual group coverage to a group purchaser desiring chaser, except that the requirement of this who is a child within the meaning of section to purchase such coverage; and subparagraph shall not apply in the case of— 151(c)(3) of the Internal Revenue Code of 1986. (B) an employee health benefit plan or a (A) the nonpayment of premiums or con- (6) GROUP HEALTH PLAN.— health plan issuer offering a group health tributions by the group purchaser in accord- (A) IN GENERAL.—The term ‘‘group health plan may establish, under the terms of such ance with the terms of the group health plan plan’’ means any contract, policy, certificate plan, eligibility, enrollment, or premium or where the health plan issuer has not re- or other arrangement offered by a health contribution requirements for individual ceived timely premium payments; plan issuer to a group purchaser that pro- participants or beneficiaries, except that (B) fraud or misrepresentation of material vides or pays for health benefits (such as pro- such requirements shall not be based on fact on the part of the group purchaser; vider and hospital benefits) in connection health status, medical condition, claims ex- (C) the termination of the group health with an employee health benefit plan. perience, receipt of health care, medical his- plan in accordance with subsection (b); or (B) ARRANGEMENTS NOT INCLUDED.—Such tory, evidence of insurability, genetic infor- (D) the failure of the group purchaser to term does not include the following, or any mation, or disability. meet contribution or participation require- combination thereof: (2) HEALTH PROMOTION AND DISEASE PREVEN- ments in accordance with paragraph (3). (i) Coverage only for accident, or disability TION.—Nothing in this subsection shall pre- (2) PARTICIPANT.—Subject to subsections income insurance, or any combination there- vent an employee health benefit plan or a (b) and (c), coverage under an employee of. health plan issuer from establishing pre- health benefit plan or group health plan (ii) Medicare supplemental health insur- mium discounts or modifying otherwise ap- shall be renewed or continued in force, if the ance (as defined under section 1882(g)(1) of plicable copayments or deductibles in return group purchaser elects to continue to pro- the Social Security Act). for adherence to programs of health provide coverage under such plan, at the option (iii) Coverage issued as a supplement to li- motion and disease prevention. of the participant (or beneficiary where such ability insurance. (b) APPLICATION OF CAPACITY LIMITS.— right exists under the terms of the plan or (iv) Liability insurance, including general (1) IN GENERAL.—Subject to paragraph (2), a under applicable law), except that the reliability insurance and automobile liability health plan issuer offering a group health quirement of this paragraph shall not apply insurance. plan may cease offering coverage to group in the case of— (v) Workers compensation or similar insur- purchasers under the plan if— (A) the nonpayment of premiums or con- ance. (A) the health plan issuer ceases to offer tributions by the participant or beneficiary (vi) Automobile medical payment insur- coverage to any additional group purchasers; in accordance with the terms of the em- ance. and ployee health benefit plan or group health S3636 CONGRESSIONAL RECORD — SENATE April 18, 1996 plan or where such plan has not received State law, or if not so defined, an employer (A) the dates that the participant or bene- timely premium payments; with not more than 50 employees); or ficiary was covered under the plan; and (B) fraud or misrepresentation of material (ii) to all other group health plans offered (B) the benefits and cost-sharing arrange- fact on the part of the participant or bene- by the health plan issuer in the State. ment available to the participant or beneficiary relating to an application for cov- (3) PROHIBITION ON MARKET REENTRY.—In ficiary under such plan. erage or claim for benefits; the case of a discontinuation under para- An employee health benefit plan shall retain (C) the termination of the employee health graph (2), the health plan issuer may not the documentation provided to a participant benefit plan or group health plan; provide for the issuance of any group health or beneficiary under subparagraphs (A) and (D) loss of eligibility for continuation cov- plan in the market sector (as described in (B) for at least the 12-month period following erage as described in part 6 of subtitle B of paragraph (2)(B)) in which issuance of such the date on which the participant or bene- title I of the Employee Retirement Income group health plan was discontinued in the ficiary ceases to be covered under the plan. Security Act of 1974 (29 U.S.C. 1161 et seq.); State involved during the 5-year period be- Upon request, an employee health benefit or ginning on the date of the discontinuation of plan shall provide a second copy of such doc- (E) failure of a participant or beneficiary the last group health plan not so renewed. umentation to such participant or bene- to meet requirements for eligibility for cov- (c) TREATMENT OF NETWORK PLANS.— ficiary within the 12-month period following erage under an employee health benefit plan (1) GEOGRAPHIC LIMITATIONS.—A network the date of such ineligibility. or group health plan that are not prohibited plan (as defined in paragraph (2)) may deny (3) DEFINITIONS.—As used in this section: by this Act. continued participation under such plan to (A) PREVIOUS QUALIFYING COVERAGE.—The (3) RULES OF CONSTRUCTION.—Nothing in participants or beneficiaries who neither term ‘‘previous qualifying coverage’’ means this subsection, nor in section 101(a), shall be live, reside, nor work in an area in which the period beginning on the date— construed to— such network plan is offered, but only if such (i) a participant or beneficiary is enrolled (A) preclude a health plan issuer from es- denial is applied uniformly, without regard under an employee health benefit plan or a tablishing employer contribution rules or to health status or the insurability of par- group health plan, and ending on the date group participation rules for group health ticular participants or beneficiaries. the participant or beneficiary is not so en- plans as allowed under applicable State law; (2) NETWORK PLAN.—As used in paragraph rolled; or (B) preclude a plan defined in section 3(37) (1), the term ‘‘network plan’’ means an em- of the Employee Retirement Income Secu- (ii) an individual is enrolled under an indi- ployee health benefit plan or a group health vidual health plan (as defined in section 113) rity Act of 1974 (29 U.S.C. 1102(37)) from es- plan that arranges for the financing and de- tablishing employer contribution rules or or under a public or private health plan es- livery of health care services to participants tablished under Federal or State law, and group participation rules; or or beneficiaries covered under such plan, in (C) permit individuals to decline coverage ending on the date the individual is not so whole or in part, through arrangements with enrolled; under an employee health benefit plan if providers. such right is not otherwise available under (d) COBRA COVERAGE.—Nothing in sub- for a continuous period of more than 30 days such plan. section (a)(2)(E) or subsection (c) shall be (without regard to any waiting period). (b) TERMINATION OF GROUP HEALTH construed to affect any right to COBRA con- (B) LIMITATION OR EXCLUSION OF BENEFITS PLANS.— tinuation coverage as described in part 6 of RELATING TO TREATMENT OF A PREEXISTING (1) PARTICULAR TYPE OF GROUP HEALTH subtitle B of title I of the Employee Retire- CONDITION.—The term ‘‘limitation or exclu- PLAN NOT OFFERED.—In any case in which a ment Income Security Act of 1974 (29 U.S.C. sion of benefits relating to treatment of a health plan issuer decides to discontinue of- 1161 et seq.). preexisting condition’’ means a limitation or fering a particular type of group health plan, SEC. 103. PORTABILITY OF HEALTH COVERAGE exclusion of benefits imposed on an individ- a group health plan of such type may be dis- AND LIMITATION ON PREEXISTING ual based on a preexisting condition of such continued by the health plan issuer only if— CONDITION EXCLUSIONS. individual. (A) the health plan issuer provides notice (a) IN GENERAL.—An employee health bene- (4) EFFECT OF PREVIOUS COVERAGE.—An em- to each group purchaser covered under a fit plan or a health plan issuer offering a ployee health benefit plan or a health plan group health plan of this type (and partici- group health plan may, with respect to a issuer offering a group health plan may im- pants and beneficiaries covered under such participant or beneficiary, impose a limita- pose a limitation or exclusion of benefits re- group health plan) of such discontinuation at tion or exclusion of benefits, otherwise avail- lating to the treatment of a preexisting con- least 90 days prior to the date of the dis- able under the terms of the plan only if— dition, subject to the limits in subsection continuation of such plan; (1) such limitation or exclusion is a limita- (a), only to the extent that such service or (B) the health plan issuer offers to each tion or exclusion of benefits relating to the benefit was not previously covered under the group purchaser covered under a group treatment of a preexisting condition; and group health plan, employee health benefit health plan of this type, the option to pur- (2) such limitation or exclusion extends for plan, or individual health plan in which the chase any other group health plan currently a period of not more than 12 months after participant or beneficiary was enrolled im- being offered by the health plan issuer; and the date of enrollment in the plan. mediately prior to enrollment in the plan in- (C) in exercising the option to discontinue (b) CREDITING OF PREVIOUS QUALIFYING volved. a group health plan of this type and in offer- COVERAGE.— (c) LATE ENROLLEES.—Except as provided ing one or more replacement plans, the (1) IN GENERAL.—Subject to paragraph (4), in section 104, with respect to a participant health plan issuer acts uniformly without re- an employee health benefit plan or a health or beneficiary enrolling in an employee gard to the health status or insurability of plan issuer offering a group health plan shall health benefit plan or a group health plan participants or beneficiaries covered under provide that if a participant or beneficiary is during a time that is other than the first op- the group health plan, or new participants or in a period of previous qualifying coverage as portunity to enroll during an enrollment pe- beneficiaries who may become eligible for of the date of enrollment under such plan, riod of at least 30 days, coverage with re- coverage under the group health plan. any period of exclusion or limitation of cov- spect to benefits or services relating to the (2) DISCONTINUANCE OF ALL GROUP HEALTH erage with respect to a preexisting condition treatment of a preexisting condition in ac- PLANS.— shall be reduced by 1 month for each month cordance with subsections (a) and (b) may be (A) IN GENERAL.—In any case in which a in which the participant or beneficiary was excluded, except the period of such exclusion health plan issuer elects to discontinue of- in the period of previous qualifying coverage. may not exceed 18 months beginning on the fering all group health plans in a State, a With respect to a participant or beneficiary date of coverage under the plan. group health plan may be discontinued by described in subsection (e)(2)(A) who main- (d) AFFILIATION PERIODS.—With respect to the health plan issuer only if— tains continuous coverage, no limitation or a participant or beneficiary who would oth- (i) the health plan issuer provides notice to exclusion of benefits relating to treatment of erwise be eligible to receive benefits under the applicable certifying authority (as de- a preexisting condition may be applied to a an employee health benefit plan or a group fined in section 202(d)) and to each group child within the child’s first 12 months of life health plan but for the operation of a pre- purchaser (and participants and beneficiaries or within 12 months after the placement of a existing condition limitation or exclusion, if covered under such group health plan) of child for adoption. such plan does not utilize a limitation or ex- such discontinuation at least 180 days prior (2) DISCHARGE OF DUTY.—An employee clusion of benefits relating to the treatment to the date of the expiration of such plan; health benefit plan shall provide documenta- of a preexisting condition, such plan may im- and tion of coverage to participants and bene- pose an affiliation period on such participant (ii) all group health plans issued or deliv- ficiaries whose coverage is terminated under or beneficiary not to exceed 60 days (or in ered for issuance in the State are discon- the plan. Pursuant to regulations promul- the case of a late participant or beneficiary tinued and coverage under such plans is not gated by the Secretary, the duty of an em- described in subsection (c), 90 days) from the renewed. ployee health benefit plan to verify previous date on which the participant or beneficiary (B) APPLICATION OF PROVISIONS.—The provi- qualifying coverage with respect to a partici- would otherwise be eligible to receive bene- sions of this paragraph and paragraph (3) pant or beneficiary is effectively discharged fits under the plan. An employee health ben- may be applied separately by a health plan when such employee health benefit plan pro- efit plan or a health plan issuer offering a issuer— vides documentation to a participant or ben- group health plan may also use alternative (i) to all group health plans offered to eficiary that includes the following informa- methods to address adverse selection as ap- small employers (as defined under applicable tion: proved by the applicable certifying authority April 18, 1996 CONGRESSIONAL RECORD — SENATE S3637

(as defined in section 202(d)). During such an (1) IN GENERAL.—In connection with the of- may seek assistance or information regard- affiliation period, the plan may not be re- fering of any group health plan to a small ing their rights under this Act and the quired to provide health care services or ben- employer (as defined under applicable State Health Insurance Reform Act of 1996 with re- efits and no premium shall be charged to the law, or if not so defined, an employer with spect to health benefits that are not offered participant or beneficiary. not more than 50 employees), a health plan through a group health plan.’’ after ‘‘benefits (e) PREEXISTING CONDITION.— issuer shall make a reasonable disclosure to under the plan’’. (1) IN GENERAL.—For purposes of this sec- such employer, as part of its solicitation and Subtitle B—Individual Market Rules tion, the term ‘‘preexisting condition’’ sales materials, of— SEC. 110. INDIVIDUAL HEALTH PLAN PORT- means a condition, regardless of the cause of (A) the provisions of such group health ABILITY. the condition, for which medical advice, di- plan concerning the health plan issuer’s (a) LIMITATION ON REQUIREMENTS.— agnosis, care, or treatment was rec- right to change premium rates and the fac- (1) IN GENERAL.—Except as provided in sub- ommended or received within the 6-month tors that may affect changes in premium sections (c) and (d), a health plan issuer de- period ending on the day before the effective rates; scribed in paragraph (3) may not, with re- date of the coverage (without regard to any (B) the provisions of such group health spect to an eligible individual (described in waiting period). plan relating to renewability of coverage; subsection (b)) desiring to enroll in an indi- (2) BIRTH, ADOPTION AND PREGNANCY EX- (C) the provisions of such group health vidual health plan— CLUDED.—The term ‘‘preexisting condition’’ plan relating to any preexisting condition (A) decline to offer coverage to, or deny en- does not apply to— provision; and rollment of, such individual; or (A) an individual who, within 30 days of the (D) descriptive information about the ben- (B) impose a limitation or exclusion of date of the birth or placement for adoption efits and premiums available under all group benefits, otherwise available under such of a child (as determined under section health plans for which the employer is quali- plan, for which coverage was available under 609(c)(3)(B) of the Employee Retirement In- fied. the group health plan or employee health come Security Act of 1974 (29 U.S.C. Information shall be provided to small em- benefit plan in which the individual was pre- 1169(c)(3)(B)), was covered under the plan; or ployers under this paragraph in a manner de- viously enrolled. (B) pregnancy. termined to be understandable by the aver- (2) HEALTH PROMOTION AND DISEASE PREVEN- (f) STATE FLEXIBILITY.—Nothing in this age small employer, and shall be sufficiently TION.—Nothing in this subsection shall be section shall be construed to preempt State accurate and comprehensive to reasonably construed to prevent a health plan issuer of- laws that— inform small employers, participants and fering an individual health plan from estab- (1) require health plan issuers to impose a beneficiaries of their rights and obligations lishing premium discounts or modifying oth- limitation or exclusion of benefits relating under the group health plan. erwise applicable copayments or deductibles to the treatment of a preexisting condition in return for adherence to programs of (2) EXCEPTION.—With respect to the re- for periods that are shorter than those pro- quirement of paragraph (1), any information health promotion or disease prevention. vided for under this section; or that is proprietary and trade secret informa- (3) HEALTH PLAN ISSUER.—A health plan is- (2) allow individuals, participants, and tion under applicable law shall not be sub- suer described in this paragraph is a health beneficiaries to be considered to be in a pe- plan issuer that issues or renews individual ject to the disclosure requirements of such riod of previous qualifying coverage if such health plans. paragraph. individual, participant, or beneficiary expe- (4) PREMIUMS.—Nothing in this subsection (3) CONSTRUCTION.—Nothing in this sub- riences a lapse in coverage that is greater shall be construed to affect the determina- section shall be construed to preempt State than the 30-day period provided for under tion of a health plan issuer as to the amount reporting and disclosure requirements to the subsection (b)(3); or of the premium payable under an individual extent that such requirements are not pre- (3) require health plan issuers to have a health plan under applicable State law. empted under section 514 of the Employee lookback period that is shorter than the pe- (b) DEFINITION OF ELIGIBLE INDIVIDUAL.—As Retirement Income Security Act of 1974 (29 riod described in subsection (e)(1); used in subsection (a)(1), the term ‘‘eligible U.S.C. 1144). unless such laws are preempted by section individual’’ means an individual who— (b) DISCLOSURE OF INFORMATION TO PARTICI- (1) was a participant or beneficiary en- 514 of the Employee Retirement Income Se- PANTS AND BENEFICIARIES.— curity Act of 1974 (29 U.S.C. 1144). rolled under one or more group health plans (1) IN GENERAL.—Section 104(b)(1) of the or employee health benefit plans for not less SEC. 104. SPECIAL ENROLLMENT PERIODS. Employee Retirement Income Security Act than 18 months (without a lapse of more In the case of a participant, beneficiary or of 1974 (29 U.S.C. 1024(b)(1)) is amended in the than 30 days) immediately prior to the date family member who— matter following subparagraph (B)— on which such individual applies for enroll- (1) through marriage, separation, divorce, (A) by striking ‘‘102(a)(1),’’ and inserting ment in the individual health plan ; death, birth or placement of a child for adop- ‘‘102(a)(1) that is not a material reduction in (2) is not eligible for coverage under a tion, experiences a change in family com- covered services or benefits provided,’’; and group health plan or an employee health position affecting eligibility under a group (B) by adding at the end thereof the follow- benefit plan; health plan, individual health plan, or em- ing new sentences: ‘‘If there is a modifica- (3) has not had coverage terminated under ployee health benefit plan; tion or change described in section 102(a)(1) a group health plan or employee health bene- (2) experiences a change in employment that is a material reduction in covered serv- fit plan for failure to make required pre- status, as described in section 603(2) of the ices or benefits provided, a summary descrip- mium payments or contributions, or for Employee Retirement Income Security Act tion of such modification or change shall be fraud or misrepresentation of material fact; of 1974 (29 U.S.C. 1163(2)), that causes the loss furnished to participants not later than 60 and of eligibility for coverage, other than days after the date of the adoption of the (4) has, if applicable, elected coverage and COBRA continuation coverage under a group modification or change. In the alternative, exhausted the maximum period of coverage health plan, individual health plan, or em- the plan sponsors may provide such descrip- as described in section 602(2)(A) of the Em- ployee health benefit plan; or tion at regular intervals of not more than 90 ployee Retirement Income Security Act of (3) experiences a loss of eligibility under a days. The Secretary shall issue regulations 1974 (29 U.S.C. 1162(2)(A)) or under a State group health plan, individual health plan, or within 180 days after the date of enactment program providing an extension of such cov- employee health benefit plan because of a of the Health Insurance Reform Act of 1996, erage. change in the employment status of a family providing alternative mechanisms to deliv- (c) APPLICATION OF CAPACITY LIMITS.— member; ery by mail through which employee health (1) IN GENERAL.—Subject to paragraph (2), a each employee health benefit plan and each benefit plans may notify participants of ma- health plan issuer offering coverage to indi- group health plan shall provide for a special terial reductions in covered services or bene- viduals under an individual health plan may enrollment period extending for a reasonable fits.’’. cease enrolling individuals under the plan time after such event that would permit the (2) PLAN DESCRIPTION AND SUMMARY.—Sec- if— participant to change the individual or fam- tion 102(b) of the Employee Retirement In- (A) the health plan issuer ceases to enroll ily basis of coverage or to enroll in the plan come Security Act of 1974 (29 U.S.C. 1022(b)) any new individuals; and if coverage would have been available to is amended— (B) the health plan issuer can demonstrate such individual, participant, or beneficiary (A) by inserting ‘‘including the office or to the applicable certifying authority (as de- but for failure to enroll during a previous entitle of the individual who is responsible for fined in section 202(d)), if required, that its rollment period. Such a special enrollment approving or denying claims for coverage of financial or provider capacity to serve pre- period shall ensure that a child born or benefits’’ after ‘‘type of administration of viously covered individuals will be impaired placed for adoption shall be deemed to be the plan’’; if the health plan issuer is required to enroll covered under the plan as of the date of such (B) by inserting ‘‘including the name of the additional individuals. birth or placement for adoption if such child organization responsible for financing Such a health plan issuer shall be prohibited is enrolled within 30 days of the date of such claims’’ after ‘‘source of financing of the from offering coverage after a cessation in birth or placement for adoption. plan’’; and offering coverage under this paragraph for a SEC. 105. DISCLOSURE OF INFORMATION. (C) by inserting ‘‘including the office, con- 6-month period or until the health plan is- (a) DISCLOSURE OF INFORMATION BY HEALTH tact, or title of the individual at the Depart- suer can demonstrate to the applicable cer- PLAN ISSUERS.— ment of Labor through which participants tifying authority (as defined in section S3638 CONGRESSIONAL RECORD — SENATE April 18, 1996 202(d)) that the health plan issuer has ade- ation at least 180 days prior to the date of vidual health insurance laws of such State; quate capacity, whichever is later. the discontinuation of the plan; and or (2) FIRST-COME-FIRST-SERVED.—A health (B) all individual health plans issued or de- (D) except as provided in paragraph (4), im- plan issuer offering coverage to individuals livered for issuance in the State are discon- plement a risk spreading mechanism, cross under an individual health plan is only eligi- tinued and coverage under such plans is not subsidy mechanism, risk adjustment mecha- ble to exercise the limitations provided for renewed. nism, rating limitation or other mechanism in paragraph (1) if the health plan issuer pro- (3) PROHIBITION ON MARKET REENTRY.—In (such as mechanisms described in the NAIC vides for enrollment of individuals under the case of a discontinuation under para- Model Health Plan for Uninsurable Individ- such plan on a first-come-first-served basis graph (2), the health plan issuer may not uals Act) designed to reduce the variation or other basis established by a State to en- provide for the issuance of any individual among the cost of such plans and other indi- sure a fair opportunity to enroll in the plan health plan in the State involved during the vidual health plans offered by the carrier or and avoid risk selection. 5-year period beginning on the date of the available in such State. (d) MARKET REQUIREMENTS.— discontinuation of the last plan not so re- (4) CHOICE OF PLANS.—The Secretary of (1) IN GENERAL.—The provisions of sub- newed. Health and Human Services shall waive the section (a) shall not be construed to require (c) TREATMENT OF NETWORK PLANS.— requirement in subparagraph (D) of para- that a health plan issuer offering group (1) GEOGRAPHIC LIMITATIONS.—A health graph (3) with respect to a State if individ- health plans to group purchasers offer indi- plan issuer which offers a network plan (as uals who meet the requirements of sections vidual health plans to individuals. defined in paragraph (2)) may deny continued 110(b) and 111 in such State are provided with (2) CONVERSION POLICIES.—A health plan is- participation under the plan to individuals a choice of all individual health plans other- suer offering group health plans to group who neither live, reside, nor work in an area wise available in the individual market. purchasers under this Act shall not be in which the individual health plan is of- (5) FUTURE ADOPTION OF MECHANISMS.—With deemed to be a health plan issuer offering an fered, but only if such denial is applied uni- respect to a State that implements an alter- individual health plan solely because such formly, without regard to health status or native mechanism under paragraph (1) after health plan issuer offers a conversion policy. the insurability of particular individuals. the period referred to in paragraph (2)— (3) MARKETING OF PLANS.—Nothing in this (2) NETWORK PLAN.—As used in paragraph (A) the State shall provide notice to the section shall be construed to prevent a State (1), the term ‘‘network plan’’ means an indi- Secretary that such alternative mechanism from requiring health plan issuers offering vidual health plan that arranges for the fi- achieves the goals of sections 110 and 111; coverage to individuals under an individual nancing and delivery of health care services (B) the State alternative mechanism shall health plan to actively market such plan. to individuals covered under such health apply in lieu of sections 110 and 111; (4) CONSTRUCTION.—Nothing in this Act plan, in whole or in part, through arrange- (C) except as provided in subsections (d) shall be construed to require that a State re- ments with providers. and (e), the Secretary may make a deter- place or dissolve high risk pools or other SEC. 112. STATE FLEXIBILITY IN INDIVIDUAL mination as provided for in paragraph (3); similar State mechanisms which are de- MARKET REFORMS. and signed to provide individuals in such State (a) ADOPTION OF ALTERNATIVE MECHA- (D) the procedures described in subsection with access to health benefits. NISMS.— (c) shall apply. SEC. 111. GUARANTEED RENEWABILITY OF INDI- (1) IN GENERAL.—A State, in accordance (b) TIMEFRAME FOR SECRETARIAL DETER- VIDUAL HEALTH COVERAGE. with this section, may adopt alternative MINATION.— (a) IN GENERAL.—Subject to subsections (b) mechanisms (public or private) that are de- (1) IN GENERAL.—With respect to a State and (c), coverage for individuals under an in- signed to provide access to affordable health election under subsection (a)(2)(B), the Sec- dividual health plan shall be renewed or con- benefits for individuals meeting the require- retary of Health and Human Services shall tinued in force by a health plan issuer at the ments of sections 110(b) and 111 (such as not make a determination under subsection option of the individual, except that the re- mechanisms providing for guaranteed issue, (a)(3) until the expiration of the 12-month pe- quirement of this subsection shall not apply open enrollment by one or more health plan riod beginning on the date on which such no- in the case of— issuers, high-risk pools, mandatory conver- tification is made, or until January 1, 1998, (1) the nonpayment of premiums or con- sion policies, or any combination thereof). whichever is later. tributions by the individual in accordance (2) PROCEDURE FOR STATE ELECTION.—If, not (2) RULE APPLICABLE TO CERTAIN STATES.— with the terms of the individual health plan later than 6 months after the date of enact- With respect to a State that makes an elec- or where the health plan issuer has not re- ment of this Act, the Governor of a State notion under subsection (a)(2)(B) and that has a ceived timely premium payments; tifies the Secretary of Health and Human legislature that does not meet within the 12- (2) fraud or misrepresentation of material Services that— month period beginning on the date of enact- fact on the part of the individual; or (A) the State has adopted an alternative ment of this Act, the Secretary of Health (3) the termination of the individual health mechanism that achieves the goals of sec- and Human Services shall not make a deter- plan in accordance with subsection (b). tions 110 and 111; or mination under subsection (a) prior to Janu- ary 1, 1999. (b) TERMINATION OF INDIVIDUAL HEALTH (B) the State intends to implement an al- (c) NOTICE TO STATE.—If the Secretary of PLANS.— ternative mechanism that is designed to Health and Human Services determines that (1) PARTICULAR TYPE OF INDIVIDUAL HEALTH achieve the goals of sections 110 and 111; a State alternative mechanism fails to meet PLAN NOT OFFERED.—In any case in which a such State alternative mechanism shall, ex- the criteria described in subsection (a)(3), or health plan issuer decides to discontinue of- cept as provided in paragraphs (3) and (4), that such mechanism is no longer being im- fering a particular type of individual health apply in lieu of the standards described in plemented, the Secretary of Health and plan to individuals, an individual health plan sections 110 and 111. Human Services shall notify the Governor of may be discontinued by the health plan is- (3) NONAPPLICATION OF MECHANISM.—A such State of such preliminary determina- suer only if— State alternative mechanism adopted under tion and permit the State a reasonable op- (A) the health plan issuer provides notice paragraph (1) shall be presumed to achieve portunity in which to modify the alternative to each individual covered under the plan of the goals of sections 110 and 111 and shall mechanism or to adopt another mechanism such discontinuation at least 90 days prior to apply in lieu of such sections, unless the Sec- that is designed to meet the goals of sections the date of the expiration of the plan; retary of Health and Human Services, in con- 110 and 111. If, after an opportunity to mod- (B) the health plan issuer offers to each in- sultation with the Governor and Insurance ify such State alternative mechanism, the dividual covered under the plan the option to Commissioner or chief insurance regulatory mechanism fails to meet the criteria de- purchase any other individual health plan official of the State, finds that the State al- scribed in subsection (a)(3), the Secretary currently being offered by the health plan is- ternative mechanism fails to— shall notify the Governor of such State that suer to individuals; and (A) offer coverage to those individuals who sections 110 and 111 shall apply in the State. (C) in exercising the option to discontinue meet the requirements of sections 110(b) and (d) ADOPTION OF NAIC MODEL.—If, not later the individual health plan and in offering 111; than 9 months after the date of enactment of one or more replacement plans, the health (B) prohibit a limitation or exclusion of this Act— plan issuer acts uniformly without regard to benefits relating to treatment of a preexist- (1) the National Association of Insurance the health status or insurability of particu- ing condition that was covered under the Commissioners (hereafter referred to as the lar individuals. previous group health plan or employee ‘‘NAIC’’), through a process which the Sec- (2) DISCONTINUANCE OF ALL INDIVIDUAL health benefit plan of an individual who retary of Health and Human Services deter- HEALTH PLANS.—In any case in which a meets the requirements of sections 110(b) and mines has included consultation with rep- health plan issuer elects to discontinue all 111; resentatives of the insurance industry and individual health plans in a State, an indi- (C) offer individuals who meet the require- consumer groups, has adopted a model act or vidual health plan may be discontinued by ments of sections 110(b) and 111 a choice of acts including provisions addressing port- the health plan issuer only if— individual health plans, including at least ability from a group health plan or employee (A) the health plan issuer provides notice one plan comparable to comprehensive plans health benefit plan into the individual to the applicable certifying authority (as de- offered in the individual market in such health insurance market; and fined in section 202(d)) and to each individual State or a plan comparable to a standard op- (2) the Secretary of Health and Human covered under the plan of such discontinu- tion plan available under the group or indi- Services determines, within 30 days of the April 18, 1996 CONGRESSIONAL RECORD — SENATE S3639 adoption of such NAIC model act or acts, exclusion does not apply to an individual exclusion does not apply to an individual that such act or acts comply with the goals otherwise eligible for continuation coverage otherwise eligible for continuation coverage of sections 110 and 111; under this section because of the provision of under this subsection because of the provi- a State that elects to adopt such model act the Health Insurance Reform Act of 1996’’; sion of the Health Insurance Reform Act of or acts shall be deemed to have met the re- and 1995’’; and quirements of sections 110 and 111 and shall (C) in subparagraph (E), by striking ‘‘at (C) in clause (v), by striking ‘‘at the time not be subject to a determination under sub- the time of a qualifying event described in of a qualifying event described in paragraph section (a)(3). section 2203(2)’’ and inserting ‘‘at any time (3)(B)’’ and inserting ‘‘at any time during the (e) STATE HIGH RISK POOLS DEEMED IN COM- during the initial 18-month period of con- initial 18-month period of continuing cov- PLIANCE.—If the Governor of a State notifies tinuing coverage under this title’’. erage under this section’’. the Secretary of Health and Human Services (2) NOTICES.—Section 2206(3) of the Public (2) NOTICES.—Section 4980B(f)(6)(C) of the in a timeframe consistent with either sub- Health Service Act (42 U.S.C. 300bb-6(3)) is Internal Revenue Code of 1986 is amended by section (a)(2) or (a)(5) that such State has a amended by striking ‘‘at the time of a quali- striking ‘‘at the time of a qualifying event high risk pool open to those individuals fying event described in section 2203(2)’’ and described in paragraph (3)(B)’’ and inserting meeting the requirements of sections 110(b) inserting ‘‘at any time during the initial 18- ‘‘at any time during the initial 18-month pe- and 111, that limits preexisting condition month period of continuing coverage under riod of continuing coverage under this sec- waiting periods consistent with section this title’’. tion’’. 110(a)(1)(B) and that with respect to premium (3) BIRTH OR ADOPTION OF A CHILD.—Section (3) BIRTH OR ADOPTION OF A CHILD.—Section rates and covered benefits is consistent with 2208(3)(A) of the Public Health Service Act 4980B(g)(1)(A) of the Internal Revenue Code standards included in the NAIC Model Health (42 U.S.C. 300bb-8(3)(A)) is amended by adding of 1986 is amended by adding at the end Plan for Uninsurable Individuals Act, such at the end thereof the following new flush thereof the following new flush sentence: State high risk pool shall be deemed to have sentence: ‘‘Such term shall also include a child who is met the requirements of sections 110 and 111 ‘‘Such term shall also include a child who is born to or placed for adoption with the cov- and shall not be subject to a determination born to or placed for adoption with the covered employee during the period of continued under subsection (a)(3). ered employee during the period of continued coverage under this section.’’. SEC. 113. DEFINITION. coverage under this title.’’. (d) EFFECTIVE DATE.—The amendments (a) IN GENERAL.—As used in this title, the (b) EMPLOYEE RETIREMENT INCOME SECU- made by this section shall apply to qualify- term ‘‘individual health plan’’ means any RITY ACT OF 1974.— ing events occurring on or after the date of contract, policy, certificate or other ar- (1) PERIOD OF COVERAGE.—Section 602(2) of the enactment of this Act for plan years be- rangement offered to individuals by a health the Employee Retirement Income Security ginning after December 31, 1997. plan issuer that provides or pays for health Act of 1974 (29 U.S.C. 1162(2)) is amended— (e) NOTIFICATION OF CHANGES.—Not later benefits (such as provider and hospital bene- (A) in the last sentence of subparagraph than 60 days prior to the date on which this fits) and that is not a group health plan (A)— section becomes effective, each group health under section 2(6). (i) by inserting ‘‘, or a beneficiary-family plan (covered under title XXII of the Public (b) ARRANGEMENTS NOT INCLUDED.—Such member of the individual,’’ after ‘‘an individ- Health Service Act, part 6 of subtitle B of term does not include the following, or any ual’’; and title I of the Employee Retirement Income combination thereof: (ii) by striking ‘‘at the time of a qualifying Security Act of 1974, and section 4980B(f) of (1) Coverage only for accident, or disability event described in section 603(2)’’ and insert- the Internal Revenue Code of 1986) shall no- income insurance, or any combination there- ing ‘‘at any time during the initial 18-month tify each qualified beneficiary who has elect- of. period of continuing coverage under this ed continuation coverage under such title, (2) Medicare supplemental health insur- part’’; part or section of the amendments made by ance (as defined under section 1882(g)(1) of (B) in subparagraph (D)(i), by inserting be- this section. the Social Security Act). fore ‘‘, or’’ the following: ‘‘, except that the Subtitle D—Private Health Plan Purchasing (3) Coverage issued as a supplement to li- exclusion or limitation contained in this Cooperatives ability insurance. clause shall not be considered to apply to a SEC. 131. PRIVATE HEALTH PLAN PURCHASING (4) Liability insurance, including general plan under which a preexisting condition or COOPERATIVES. liability insurance and automobile liability exclusion does not apply to an individual (a) DEFINITION.—As used in this Act, the insurance. otherwise eligible for continuation coverage term ‘‘health plan purchasing cooperative’’ (5) Workers’ compensation or similar in- under this section because of the provision of means a group of employees or a group of insurance. the Health Insurance Reform Act of 1996’’; dividuals and employers that, on a voluntary (6) Automobile medical payment insur- and basis and in accordance with this section, ance. (C) in subparagraph (E), by striking ‘‘at form a cooperative for the purpose of pur- (7) Coverage for a specified disease or ill- the time of a qualifying event described in chasing individual health plans or group ness. section 603(2)’’ and inserting ‘‘at any time health plans offered by health plan issuers. (8) Hospital or fixed indemnity insurance. during the initial 18-month period of con- (b) CERTIFICATION.— (9) Short-term limited duration insurance. tinuing coverage under this part’’. (1) REQUIREMENT.—If a group described in (10) Credit-only, dental-only, or vision-only (2) NOTICES.—Section 606(3) of the Em- subsection (a), desires to form a health plan insurance. ployee Retirement Income Security Act of purchasing cooperative in accordance with (11) A health insurance policy providing 1974 (29 U.S.C. 1166(3)) is amended by striking this section and such group appropriately benefits only for long-term care, nursing ‘‘at the time of a qualifying event described notifies the State and the Secretary of such home care, home health care, community- in section 603(2)’’ and inserting ‘‘at any time desire, the State, upon a determination that based care, or any combination thereof. during the initial 18-month period of con- such group meets the requirements of this Subtitle C—COBRA Clarifications tinuing coverage under this part’’. section, shall certify the group as a health SEC. 121. COBRA CLARIFICATIONS. (3) BIRTH OR ADOPTION OF A CHILD.—Section plan purchasing cooperative. The State shall (a) PUBLIC HEALTH SERVICE ACT.— 607(3)(A) of the Employee Retirement Income make a determination of whether such group (1) PERIOD OF COVERAGE.—Section 2202(2) of Security Act of 1974 (29 U.S.C. 1167(3)) is meets the requirements of this section in a the Public Health Service Act (42 U.S.C. amended by adding at the end thereof the timely fashion and shall oversee the oper- 300bb-2(2)) is amended— following new flush sentence: ations of such cooperative in order to ensure (A) in subparagraph (A)— ‘‘Such term shall also include a child who is continued compliance with the requirements (i) by transferring the sentence imme- born to or placed for adoption with the cov- of this section. Each such cooperative shall diately preceding clause (iv) so as to appear ered employee during the period of continued also be registered with the Secretary. immediately following such clause (iv); and coverage under this part.’’. (2) STATE REFUSAL TO CERTIFY.— (ii) in the last sentence (as so trans- (c) INTERNAL REVENUE CODE OF 1986.— (A) IN GENERAL.—If a State fails to imple- ferred)— (1) PERIOD OF COVERAGE.—Section ment a program for certifying health plan (I) by inserting ‘‘, or a beneficiary-family 4980B(f)(2)(B) of the Internal Revenue Code of purchasing cooperatives in accordance with member of the individual,’’ after ‘‘an individ- 1986 is amended— the standards under this Act, the Secretary ual’’; and (A) in the last sentence of clause (i) by shall certify and oversee the operations of (II) by striking ‘‘at the time of a qualifying striking ‘‘at the time of a qualifying event such cooperatives in such State. event described in section 2203(2)’’ and in- described in paragraph (3)(B)’’ and inserting (B) EXCEPTION.—The Secretary shall not serting ‘‘at any time during the initial 18- ‘‘at any time during the initial 18-month pe- certify a health plan purchasing cooperative month period of continuing coverage under riod of continuing coverage under this sec- described in this section if, upon the submis- this title’’; tion’’; sion of an application by the State to the (B) in subparagraph (D)(i), by inserting be- (B) in clause (iv)(I), by inserting before ‘‘, Secretary, the Secretary determines that fore ‘‘, or’’ the following: ‘‘, except that the or’’ the following: ‘‘, except that the exclu- under a State law in effect on the date of en- exclusion or limitation contained in this sion or limitation contained in this sub- actment of this Act, all small employers clause shall not be considered to apply to a clause shall not be considered to apply to a have a means readily available that en- plan under which a preexisting condition or plan under which a preexisting condition or sures— S3640 CONGRESSIONAL RECORD — SENATE April 18, 1996 (i) that individuals and employees have a (E) broadly solicit and actively market to consultive, or other services to the coopera- choice of multiple, unaffiliated health plan all eligible employers and individuals resid- tive. issuers; ing within the service area; and (h) LIMITED PREEMPTION OF CERTAIN STATE (ii) that health plan coverage is subject to (F) act as an ombudsman for group health LAWS.— State premium rating requirements that are plan or individual health plan enrollees. (1) IN GENERAL.—With respect to a health not based on the factors described in sub- (2) PERMISSIBLE ACTIVITIES.—A health plan plan purchasing cooperative that meets the section (f)(3) and that contains a mandatory purchasing cooperative may perform such requirements of this section, State fictitious minimum loss ratio; and other functions as necessary to further the group laws shall be preempted. (iii) that comparative health plan mate- purposes of this Act, including— (2) HEALTH PLAN ISSUERS.— rials are disseminated consistent with sub- (A) collecting and distributing premiums (A) RATING.—Except as provided in subsection (e)(1)(D); and performing other administrative func- paragraph (B), a health plan issuer offering a and that otherwise meets the objectives of tions; group health plan or individual health plan this Act. (B) collecting and analyzing surveys of en- through a health plan purchasing coopera- (3) INTERSTATE COOPERATIVES.—For pur- rollee satisfaction; tive that meets the requirements of this sec- poses of this section, a health plan purchas- (C) charging membership fee to enrollees tion shall comply with all State rating re- ing cooperative operating in more than one (such fees may not be based on health status) quirements that would otherwise apply if the State shall be certified by the State in which and charging participation fees to health health plan were offered outside of the coop- the cooperative is domiciled. States may plan issuers; erative. enter into cooperative agreements for the (D) cooperating with (or accepting as mem- (B) EXCEPTION.—A State shall permit a purpose of overseeing the operation of such bers) employers who provide health benefits health plan issuer to reduce premium rates cooperatives. For purposes of this sub- directly to participants and beneficiaries negotiated with a health plan purchasing co- section, a cooperative shall be considered to only for the purpose of negotiating with pro- operative that meets the requirements of be domiciled in the State in which most of viders; and this section to reflect savings derived from the members of the cooperative reside. (E) negotiating with health care providers administrative costs, marketing costs, profit (c) BOARD OF DIRECTORS.— and health plan issuers. margins, economies of scale, or other factors, except that any such reduction in pre- (1) IN GENERAL.—Each health plan purchas- (f) LIMITATIONS ON COOPERATIVE ACTIVI- mium rates may not be based on the health ing cooperative shall be governed by a Board TIES.—A health plan purchasing cooperative status, demographic factors, industry type, of Directors that shall be responsible for en- shall not— duration, or other indicators of health risk suring the performance of the duties of the (1) perform any activity relating to the li- of the members of the cooperative. cooperative under this section. The Board censing of health plan issuers; (C) BENEFITS.—Except as provided in sub- shall be composed of a broad cross-section of (2) assume financial risk directly or indi- paragraph (D), a health plan issuer offering a representatives of employers, employees, and rectly on behalf of members of a health plan group health plan or individual health plan individuals participating in the cooperative. purchasing cooperative relating to any group through a health plan purchasing coopera- (2) LIMITATION ON COMPENSATION.—A health health plan or individual health plan; tive shall comply with all State mandated plan purchasing cooperative may not provide (3) establish eligibility, enrollment, or pre- benefit laws that require the offering of any compensation to members of the Board of Di- mium contribution requirements for individ- services, category of care, or services of any rectors. The cooperative may provide reim- ual participants or beneficiaries based on class or type of provider. bursements to such members for the reason- health status, medical condition, claims ex- able and necessary expenses incurred by the (D) EXCEPTION.—In those States that have perience, receipt of health care, medical his- members in the performance of their duties enacted laws authorizing the issuance of al- tory, evidence of insurability, genetic infor- as members of the Board. ternative benefit plans to small employers, mation, or disability; (d) MEMBERSHIP AND MARKETING AREA.— health plan issuers may offer such alter- (4) operate on a for-profit or other basis (1) MEMBERSHIP.—A health plan purchasing native benefit plans through a health plan where the legal structure of the cooperative cooperative may establish limits on the purchasing cooperative that meets the re- permits profits to be made and not returned maximum size of employers who may be- quirements of this section. to the members of the cooperative, except come members of the cooperative, and may (i) RULES OF CONSTRUCTION.—Nothing in determine whether to permit individuals to that a for-profit health plan purchasing co- this section shall be construed to— become members. Upon the establishment of operative may be formed by a nonprofit or- (1) require that a State organize, operate, such membership requirements, the coopera- ganization or organizations— or otherwise create health plan purchasing tive shall, except as provided in subpara- (A) in which membership in such organiza- cooperatives; graph (B), accept all employers (or individ- tion is not based on health status, medical (2) otherwise require the establishment of uals) residing within the area served by the condition, claims experience, receipt of health plan purchasing cooperatives; cooperative who meet such requirements as health care, medical history, evidence of in- (3) require individuals, plan sponsors, or members on a first come, first-served basis, surability, genetic information, or disabil- employers to purchase group health plans or or on another basis established by the State ity; and individual health plans through a health to ensure equitable access to the coopera- (B) that accepts as members all employers plan purchasing cooperative; tive. or individuals on a first-come, first-served (4) preempt a State from requiring licen- (2) MARKETING AREA.—A State may estab- basis, subject to any established limit on the sure for individuals who are involved in di- lish rules regarding the geographic area that maximum size of an employer that may be- rectly supplying advice or selling health must be served by health plan purchasing co- come a member; or plans on behalf of a purchasing cooperative; operatives to ensure that cooperatives do not (5) perform any other activities that con- (5) require that a health plan purchasing discriminate on the basis of the health sta- flict or are inconsistent with the perform- cooperative be the only type of purchasing tus or insurability of the populations that ance of its duties under this Act. arrangement permitted to operate in a reside in the area served. A State may not (g) CONFLICT OF INTEREST.— State; use such rules to arbitrarily limit the num- (1) PROHIBITION.—No individual, partner- (6) confer authority upon a State that the ber of health plan purchasing cooperatives. ship, or corporation shall serve on the board State would not otherwise have to regulate (e) DUTIES AND RESPONSIBILITIES.— of a health plan purchasing cooperative, be health plan issuers or employee health bene- (1) IN GENERAL.—A health plan purchasing employed by such a cooperative, receive fits plans; cooperative shall— compensation from such a cooperative, or (7) confer authority upon a State (or the (A) objectively evaluate potential health initiate or finance such a cooperative if such Federal Government) that the State (or Fed- plan issuers and enter into agreements with individual, partnership, or corporation— eral Government) would not otherwise have multiple, unaffiliated health plan issuers, ex- (A) fails to discharge the duties and re- to regulate group purchasing arrangements, cept that the requirement of this subpara- sponsibilities of such individual, partnership coalitions, association plans, or other simi- graph shall not apply in regions (such as re- or corporation in a manner that is solely in lar entities that do not desire to become a mote or frontier areas) in which compliance the interest of the members of the coopera- health plan purchasing cooperative in ac- with such requirement is not possible; tive; or cordance with this section; or (B) enter into agreements with employers (B) derives personal benefit (other than in (8) except as specifically provided other- and individuals who become members of the the form of ordinary compensation received) wise in this subsection, prevent the applica- cooperative; from the sale of, or has a financial interest tion of State laws and regulations otherwise (C) participate in any program of risk-ad- in, health plans, services or products sold by applicable to health plan issuers offering justment or reinsurance, or any similar pro- or distributed through that cooperative. group health plans or individual health plans gram, that is established by the State; (2) CONTRACTS WITH THIRD PARTIES.—Noth- through a health plan purchasing coopera- (D) prepare and disseminate comparative ing in paragraph (1) shall be construed to tive. health plan materials (including information prohibit the board of directors of a health (j) APPLICATION OF ERISA.—For purposes about cost, quality, benefits, and other infor- plan purchasing cooperative, or its officers, of enforcement only, the requirements of mation concerning group health plans and at the initiative and under this direction of parts 4 and 5 of subtitle B of title I of the individual health plans offered through the the board, from contracting with third par- Employee Retirement Income Security Act cooperative); ties to provide administrative, marketing, of 1974 (29 U.S.C. 1101) shall apply to a health April 18, 1996 CONGRESSIONAL RECORD — SENATE S3641 plan purchasing cooperative as if such plan enforce the standards and requirements set the Secretary, representatives of State offi- were an employee welfare benefit plan. forth in this Act with respect to group cials, consumers, and other representatives TITLE II—APPLICATION AND health plans and individual health plans as of individuals and entities that have exper- ENFORCEMENT OF STANDARDS provided for under the State enforcement tise in health insurance and employee bene- SEC. 201. APPLICABILITY. plan filed under subsection (a), the Sec- fits, shall conduct a two-part study, and pre- (a) CONSTRUCTION.— retary, in consultation with the Secretary of pare and submit reports, in accordance with Health and Human Services, shall implement this section. (1) ENFORCEMENT.— an enforcement plan meeting the standards (b) EVALUATION OF AVAILABILITY.—Not (A) IN GENERAL.—A requirement or stand- later than January 1, 1998, the Secretary of ard imposed under this Act on a group health of this Act in such State. In the case of a Health and Human Services shall prepare plan or individual health plan offered by a State that fails to substantially enforce the and submit to the appropriate committees of health plan issuer shall be deemed to be a re- standards and requirements set forth in this Congress a report, concerning— quirement or standard imposed on the health Act, each health plan issuer operating in such State shall be subject to civil enforce- (1) an evaluation, based on the experience plan issuer. Such requirements or standards ment as provided for under sections 502, 504, of States, expert opinions, and such addi- shall be enforced by the State insurance 506, and 510 of the Employee Retirement In- tional data as may be available, of the var- commissioner for the State involved or the come Security Act of 1974 (29 U.S.C. 1132, ious mechanisms used to ensure the avail- official or officials designated by the State 1134, 1136, and 1140). The civil penalties con- ability of reasonably priced health coverage to enforce the requirements of this Act. In tained in paragraphs (1) and (2) of section to employers purchasing group coverage and the case of a group health plan offered by a 502(c) of such Act (29 U.S.C. 1132(c)(1) and (2)) to individuals purchasing coverage on a non- health plan issuer in connection with an em- shall apply to any information required by group basis; and ployee health benefit plan, the requirements the Secretary to be disclosed and reported (2) whether standards that limit the vari- or standards imposed under this Act shall be under this section. ation in premiums will further the purposes enforced with respect to the health plan is- (d) APPLICABLE CERTIFYING AUTHORITY.—As of this Act. suer by the State insurance commissioner used in this title, the term ‘‘applicable cer- (c) EVALUATION OF EFFECTIVENESS.—Not for the State involved or the official or offi- tifying authority’’ means, with respect to— later than January 1, 1999, the Secretary of cials designated by the State to enforce the (1) health plan issuers, the State insurance Health and Human Services shall prepare requirements of this Act. commissioner or official or officials des- and submit to the appropriate committees of (B) LIMITATION.—Except as provided in sub- ignated by the State to enforce the require- Congress a report, concerning the effective- section (c), the Secretary shall not enforce ments of this Act for the State involved; and ness of the provisions of this Act and the the requirements or standards of this Act as (2) an employee health benefit plan, the various State laws, in ensuring the availabil- they relate to health plan issuers, group Secretary. ity of reasonably priced health coverage to health plans, or individual health plans. In (e) REGULATIONS.—The Secretary may pro- employers purchasing group coverage and inno case shall a State enforce the require- mulgate such regulations as may be nec- dividuals purchasing coverage on a non- ments or standards of this Act as they relate essary or appropriate to carry out this Act. group basis. to employee health benefit plans. (f) TECHNICAL AMENDMENT.—Section 508 of SEC. 303. SENSE OF THE COMMITTEE CONCERN- (2) PREEMPTION OF STATE LAW.—Nothing in the Employee Retirement Income Security ING MEDICARE. this Act shall be construed to prevent a Act of 1974 (29 U.S.C. 1138) is amended by in- (a) FINDINGS.—The Committee on Labor State from establishing, implementing, or serting ‘‘and under the Health Insurance Re- and Human Resources of the Senate finds continuing in effect standards and require- form Act of 1996’’ before the period. that the Public Trustees of Medicare con- ments— TITLE III—MISCELLANEOUS PROVISIONS cluded in their 1995 Annual Report that— (A) not prescribed in this Act; or SEC. 301. HMOS ALLOWED TO OFFER PLANS WITH (1) the Medicare program is clearly (B) related to the issuance, renewal, or DEDUCTIBLES TO INDIVIDUALS unsustainable in its present form; portability of health insurance or the estab- WITH MEDICAL SAVINGS ACCOUNTS. (2) ‘‘the Hospital Insurance Trust Fund, lishment or operation of group purchasing (a) IN GENERAL.—Section 1301(b) of the which pays inpatient hospital expenses, will arrangements, that are consistent with, and Public Health Service Act (42 U.S.C. 300e(b)) be able to pay benefits for only about 7 years are not in direct conflict with, this Act and is amended by adding at the end the follow- and is severely out of financial balance in provide greater protection or benefit to paring new paragraph: the long range’’; and ticipants, beneficiaries or individuals. ‘‘(6)(A) If a member certifies that a medi- (3) the Public Trustees ‘‘strongly rec- (b) RULE OF CONSTRUCTION.—Nothing in cal savings account has been established for ommend that the crisis presented by the fi- this Act shall be construed to affect or mod- the benefit of such member, a health mainte- nancial condition of the Medicare trust fund ify the provisions of section 514 of the Em- nance organization may, at the request of be urgently addressed on a comprehensive ployee Retirement Income Security Act of such member reduce the basic health serv- basis, including a review of the programs’s 1974 (29 U.S.C. 1144). ices payment otherwise determined under financing methods, benefit provisions, and (c) CONTINUATION.—Nothing in this Act paragraph (1) by requiring the payment of a delivery mechanisms’’. shall be construed as requiring a group deductible by the member for basic health (b) SENSE OF THE COMMITTEE.—It is the health plan or an employee health benefit Sense of the Committee on Labor and plan to provide benefits to a particular par- services. ‘‘(B) For purposes of this paragraph, the Human Resources of the Senate that the ticipant or beneficiary, to all participants or Senate should take measures necessary to beneficiaries, or to any class or group of par- term ‘medical savings account’ means an account which, by its terms, allows the deposit reform the Medicare program, to provide in- ticipants or beneficiaries, in excess of or creased choice for seniors, and to respond to other than those provided under the terms of of funds and the use of such funds and in- the findings of the Public Trustees by pro- such plan. come derived from the investment of such tecting the short-term solvency and long- SEC. 202. ENFORCEMENT OF STANDARDS. funds for the payment of the deductible described in subparagraph (A).’’. term sustainability of the Medicare pro- (a) HEALTH PLAN ISSUERS.—Each State gram. shall require that each group health plan and (b) MEDICAL SAVINGS ACCOUNTS.—It is the SEC. 304. EFFECTIVE DATE. individual health plan issued, sold, renewed, sense of the Committee on Labor and Human Except as otherwise provided for in this offered for sale or operated in such State by Resources of the Senate that the establish- Act, the provisions of this Act shall apply as a health plan issuer meet the standards es- ment of medical savings accounts, including follows: tablished under this Act pursuant to an en- those defined in section 1301(b)(6)(B) of the (1) With respect to group health plans, forcement plan filed by the State with the Public Health Service Act (42 U.S.C. Secretary. A State shall submit such infor- 300e(b)(6)(B)), should be encouraged as part such provisions shall apply to plans offered, mation as required by the Secretary dem- of any health insurance reform legislation sold, issued, renewed, in effect, or operated onstrating effective implementation of the passed by the Senate through the use of tax on or after January 1, 1997. State enforcement plan. incentives relating to contributions to, the (2) With respect to individual health plans, (b) EMPLOYEE HEALTH BENEFIT PLANS.— income growth of, and the qualified use of, such provisions shall apply to plans offered, With respect to employee health benefit such accounts. sold, issued, renewed, in effect, or operated plans, the Secretary shall enforce the reform (c) SENSE OF THE SENATE.—It is the sense on or after the date that is 6 months after standards established under this Act in the of the Senate that the Congress should take the date of enactment of this Act, or Janu- same manner as provided for under sections measures to further the purposes of this Act, ary 1, 1997, whichever is later. 502, 504, 506, and 510 of the Employee Retire- including any necessary changes to the In- (3) With respect to employee health benefit ment Income Security Act of 1974 (29 U.S.C. ternal Revenue Code of 1986 to encourage plans, such provisions shall apply to such 1132, 1134, 1136, and 1140). The civil penalties groups and individuals to obtain health cov- plans on the first day of the first plan year contained in paragraphs (1) and (2) of section erage, and to promote access, equity, port- beginning on or after January 1, 1997. 502(c) of such Act (29 U.S.C. 1132(c)(1) and (2)) ability, affordability, and security of health SEC. 305. SEVERABILITY. shall apply to any information required by benefits. If any provision of this Act or the applica- the Secretary to be disclosed and reported SEC. 302. HEALTH COVERAGE AVAILABILITY tion of such provision to any person or cir- under this section. STUDY. cumstance is held to be unconstitutional, (c) FAILURE TO IMPLEMENT PLAN.—In the (a) IN GENERAL.—The Secretary of Health the remainder of this Act and the applica- case of the failure of a State to substantially and Human Services, in consultation with tion of the provisions of such to any person S3642 CONGRESSIONAL RECORD — SENATE April 18, 1996 or circumstance shall not be affected there- Subtitle E—Penalty-Free IRA Distributions amounts received for personal injuries and by. Sec. 461. Distributions from certain plans sickness and shall be treated as reimburse- may be used without penalty to ment for expenses actually incurred for med- DOLE (AND OTHERS) AMENDMENT pay financially devastating ical care (as defined in section 213(d)), NO. 3676 medical expenses. ‘‘(3) any plan of an employer providing coverage under a qualified long-term care insur- Subtitle F—Revenue Offsets Mr. DOLE (for himself, Mr. ROTH, Mr. ance contract shall be treated as an accident NICKLES, Mr. PRESSLER, Mr. LOTT, Mr. CHAPTER 1—TREATMENT OF INDIVIDUALS WHO and health plan with respect to such cov- EXPATRIATE CRAIG, Mr. MCCONNELL, Mr. erage, COVERDELL, Mr. GRASSLEY, Mr. Sec. 471. Revision of tax rules on expatria- ‘‘(4) except as provided in subsection (e)(3), tion. D’AMATO, Mr. GREGG, Mr. SANTORUM, amounts paid for a qualified long-term care Sec. 472. Information on individuals expatri- insurance contract providing the benefits de- Mr. SHELBY, Mr. FAIRCLOTH, Mr. ating. scribed in subsection (b)(2)(A) shall be treat- GRAMS, and Mr. WARNER) proposed an Sec. 473. Report on tax compliance by Unit- ed as payments made for insurance for pur- amendment to amendment No. 3675 ed States citizens and residents poses of section 213(d)(1)(D), and proposed by Mrs. KASSEBAUM to the bill living abroad. ‘‘(5) a qualified long-term care insurance S. 1028, supra; as follows: CHAPTER 2—REPEAL OF BAD DEBT RESERVE contract shall be treated as a guaranteed re- At the end, add the following new titles: METHOD FOR THRIFT SAVINGS ASSOCIATIONS newable contract subject to the rules of section 816(e). TITLE IV—TAX-RELATED HEALTH Sec. 481. Repeal of bad debt reserve method ‘‘(b) QUALIFIED LONG-TERM CARE INSUR- PROVISIONS for thrift savings associations. ANCE CONTRACT.—For purposes of this title— SEC. 400. SHORT TITLE; AMENDMENT OF 1986 CHAPTER 3—REFORM OF THE EARNED INCOME ‘‘(1) IN GENERAL.—The term ‘qualified long- CODE; TABLE OF CONTENTS. CREDIT term care insurance contract’ means any in- (a) SHORT TITLE.—This title may be cited Sec. 491. Earned income credit denied to insurance contract if— as the ‘‘Health Insurance and Long-Term dividuals not authorized to be ‘‘(A) the only insurance protection pro- Care Affordability Act of 1996’’. employed in the United States. vided under such contract is coverage of (b) AMENDMENT OF 1986 CODE.—Except as CHAPTER 4—COMPANY-OWNED INSURANCE qualified long-term care services, otherwise expressly provided, whenever in ‘‘(B) such contract does not pay or reim- this title an amendment or repeal is ex- Sec. 495. Denial of deduction for interest on burse expenses incurred for services or items pressed in terms of an amendment to, or re- loans with respect to company- to the extent that such expenses are reim- peal of, a section or other provision, the ref- owned insurance. bursable under title XVIII of the Social Se- erence shall be considered to be made to a Subtitle A—Increase in Deduction for Health curity Act or would be so reimbursable but section or other provision of the Internal Insurance Costs of Self-Employed Individuals for the application of a deductible or coin- Revenue Code of 1986. SEC. 401. INCREASE IN SELF-EMPLOYED INDIVID- surance amount, UALS’ DEDUCTION FOR HEALTH IN- ‘‘(C) such contract is guaranteed renew- (c) TABLE OF CONTENTS.— SURANCE COSTS. able, TITLE IV—TAX-RELATED HEALTH (a) IN GENERAL.—Section 162(l) (relating to ‘‘(D) such contract does not provide for a PROVISIONS special rules for health insurance costs of cash surrender value or other money that self-employed individuals) is amended— Sec. 400. Short title; amendment of 1986 can be— (1) by striking ‘‘30 percent’’ in paragraph Code; table of contents. ‘‘(i) paid, assigned, or pledged as collateral (1) and inserting ‘‘the applicable percent- Subtitle A—Increase in Deduction for Health for a loan, or age’’, and ‘‘(ii) borrowed, Insurance Costs of Self-Employed Individ- (2) by adding at the end the following new uals paragraph: other than as provided in subparagraph (E) Sec. 401. Increase in self-employed individ- ‘‘(6) APPLICABLE PERCENTAGE.—For pur- or paragraph (2)(C), and uals’ deduction for health in- poses of this subsection, the term ‘applicable ‘‘(E) all refunds of premiums, and all pol- surance costs. percentage’ means the percentage deter- icyholder dividends or similar amounts, under such contract are to be applied as a re- Subtitle B—Long-Term Care Provisions mined in accordance with the following table: duction in future premiums or to increase fu- CHAPTER 1—LONG-TERM CARE SERVICES AND ture benefits. CONTRACTS ‘‘(2) SPECIAL RULES.— SUBCHAPTER A—GENERAL PROVISIONS ‘‘In the case of tax- The applicable ‘‘(A) PER DIEM, ETC. PAYMENTS PER- Sec. 411. Treatment of long-term care insurable years begin- percentage is: MITTED.—A contract shall not fail to be de- ance. ning in: scribed in subparagraph (A) or (B) of para- Sec. 412. Qualified long-term care services 1997 ...... 35 graph (1) by reason of payments being made treated as medical care. 1998 ...... 40 on a per diem or other periodic basis without Sec. 413. Certain exchanges of life insurance 1999 ...... 45 regard to the expenses incurred during the contracts for qualified long- 2000 ...... 50 period to which the payments relate. term care insurance contracts 2001 ...... 55 ‘‘(B) SPECIAL RULES RELATING TO MEDI- not taxable. 2002 ...... 60 CARE.— Sec. 414. Exception from penalty tax for 2003 ...... 65 ‘‘(i) Paragraph (1)(B) shall not apply to ex- amounts withdrawn from cer- 2004 ...... 70 penses which are reimbursable under title tain retirement plans for quali- 2005 ...... 75 XVIII of the Social Security Act only as a fied long-term care insurance. 2006 and thereafter ...... 80.’’ secondary payor. Sec. 415. Reporting requirements. (b) EFFECTIVE DATE.—The amendments ‘‘(ii) No provision of law shall be construed SUBCHAPTER B—CONSUMER PROTECTION made by this section shall apply to taxable or applied so as to prohibit the offering of a PROVISIONS years beginning after December 31, 1996. qualified long-term care insurance contract Sec. 421. Policy requirements. Subtitle B—Long-Term Care Provisions on the basis that the contract coordinates Sec. 422. Requirements for issuers of long- its benefits with those provided under such CHAPTER 1—LONG-TERM CARE SERVICES term care insurance policies. title. AND CONTRACTS Sec. 423. Coordination with State require- ‘‘(C) REFUNDS OF PREMIUMS.—Paragraph ments. Subchapter A—General Provisions (1)(E) shall not apply to any refund on the Sec. 424. Effective dates. SEC. 411. TREATMENT OF LONG-TERM CARE IN- death of the insured, or on a complete sur- CHAPTER 2—TREATMENT OF ACCELERATED SURANCE. render or cancellation of the contract, which DEATH BENEFITS (a) GENERAL RULE.—Chapter 79 (relating to cannot exceed the aggregate premiums paid Sec. 431. Treatment of accelerated death definitions) is amended by inserting after under the contract. Any refund on a com- benefits by recipient. section 7702A the following new section: plete surrender or cancellation of the con- Sec. 432. Tax treatment of companies issu- ‘‘SEC. 7702B. TREATMENT OF QUALIFIED LONG- tract shall be includible in gross income to ing qualified accelerated death TERM CARE INSURANCE. the extent that any deduction or exclusion benefit riders. ‘‘(a) IN GENERAL.—For purposes of this was allowable with respect to the premiums. Subtitle C—Medical Savings Accounts title— ‘‘(c) QUALIFIED LONG-TERM CARE SERV- ‘‘(1) a qualified long-term care insurance ICES.—For purposes of this section— Sec. 441. Medical savings accounts. contract shall be treated as an accident and ‘‘(1) IN GENERAL.—The term ‘qualified long- Subtitle D—High-Risk Pools health insurance contract, term care services’ means necessary diag- Sec. 451. Exemption from income tax for ‘‘(2) amounts (other than policyholder divi- nostic, preventive, therapeutic, curing, State-sponsored organizations dends, as defined in section 808, or premium treating, mitigating, and rehabilitative serv- providing health coverage for refunds) received under a qualified long-term ices, and maintenance or personal care serv- high-risk individuals. care insurance contract shall be treated as ices, which— April 18, 1996 CONGRESSIONAL RECORD — SENATE S3643 ‘‘(A) are required by a chronically ill indi- amounts are increased pursuant to section In the case of an insured plan, the maximum vidual, and 213(d)(11). amount reasonably available shall be deter- ‘‘(B) are provided pursuant to a plan of ‘‘(e) TREATMENT OF COVERAGE PROVIDED AS mined on the basis of the underlying cov- care prescribed by a licensed health care PART OF A LIFE INSURANCE CONTRACT.—Ex- erage.’’ practitioner. cept as otherwise provided in regulations (d) CONTINUATION COVERAGE EXCISE TAX ‘‘(2) CHRONICALLY ILL INDIVIDUAL.— prescribed by the Secretary, in the case of NOT TO APPLY.—Subsection (f) of section ‘‘(A) IN GENERAL.—The term ‘chronically any long-term care insurance coverage 4980B is amended by adding at the end the ill individual’ means any individual who has (whether or not qualified) provided by a rider following new paragraph: been certified by a licensed health care prac- on or as a part of a life insurance contract— ‘‘(9) CONTINUATION OF LONG-TERM CARE COV- titioner as— ‘‘(1) IN GENERAL.—This section shall apply ERAGE NOT REQUIRED.—A group health plan ‘‘(i) being unable to perform (without sub- as if the portion of the contract providing shall not be treated as failing to meet the re- stantial assistance from another individual) such coverage is a separate contract. quirements of this subsection solely by rea- at least 2 activities of daily living for a pe- ‘‘(2) APPLICATION OF 7702.—Section 7702(c)(2) son of failing to provide coverage under any riod of at least 90 days due to a loss of func- (relating to the guideline premium limita- qualified long-term care insurance contract tional capacity, tion) shall be applied by increasing the (as defined in section 7702B(b)).’’ ‘‘(ii) having a level of disability similar (as guideline premium limitation with respect (e) AMOUNTS PAID TO SPOUSE OR RELATIVES determined by the Secretary in consultation to a life insurance contract, as of any date— TREATED AS NOT PAID FOR MEDICAL CARE.— with the Secretary of Health and Human ‘‘(A) by the sum of any charges (but not Section 213(d) is amended by adding at the Services) to the level of disability described premium payments) against the life insur- end the following new paragraph: in clause (i), or ance contract’s cash surrender value (within ‘‘(10) CERTAIN PAYMENTS TO SPOUSE OR REL- ‘‘(iii) requiring substantial supervision to the meaning of section 7702(f)(2)(A)) for such ATIVES TREATED AS NOT PAID FOR MEDICAL protect such individual from threats to coverage made to that date under the con- CARE.—An amount paid for a qualified long- health and safety due to severe cognitive im- tract, less term care service (as defined in section pairment. ‘‘(B) any such charges the imposition of 7702B(c)) provided to an individual shall be Such term shall not include any individual which reduces the premiums paid for the treated as not paid for medical care if such otherwise meeting the requirements of the contract (within the meaning of section service is provided— preceding sentence unless within the preced- 7702(f)(1)). ‘‘(A) by the spouse of the individual or a ing 12-month period a licensed health care ‘‘(3) APPLICATION OF SECTION 213.—No deduc- relative (directly or through a partnership, practitioner has certified that such individ- tion shall be allowed under section 213(a) for corporation, or other entity) unless the ual meets such requirements. charges against the life insurance contract’s spouse or relative is a licensed professional ‘‘(B) ACTIVITIES OF DAILY LIVING.—For pur- cash surrender value described in paragraph with respect to such services, or poses of subparagraph (A), each of the follow- (2), unless such charges are includible in in- ‘‘(B) by a corporation or partnership which ing is an activity of daily living: come as a result of the application of section is related (within the meaning of section ‘‘(i) Eating. 72(e)(10) and the rider is a qualified long- 267(b) or 707(b)) to the individual. ‘‘(ii) Toileting. term care insurance contract under sub- For purposes of this paragraph, the term ‘‘(iii) Transferring. section (b). ‘relative’ means an individual bearing a rela- ‘‘(iv) Bathing. ‘‘(4) PORTION DEFINED.—For purposes of tionship to the individual which is described ‘‘(v) Dressing. this subsection, the term ‘portion’ means in any of paragraphs (1) through (8) of sec- ‘‘(vi) Continence. only the terms and benefits under a life in- tion 152(a). This paragraph shall not apply Nothing in this section shall be construed to surance contract that are in addition to the for purposes of section 105(b) with respect to require a contract to take into account all of terms and benefits under the contract with- reimbursements through insurance.’’ the preceding activities of daily living. out regard to the coverage under a qualified (f) CLERICAL AMENDMENT.—The table of ‘‘(3) MAINTENANCE OR PERSONAL CARE SERV- long-term care insurance contract.’’ sections for chapter 79 is amended by insert- ICES.—The term ‘maintenance or personal (b) RESERVE METHOD.—Clause (iii) of sec- ing after the item relating to section 7702A care services’ means any care the primary tion 807(d)(3)(A) is amended by inserting the following new item: purpose of which is the provision of needed ‘‘(other than a qualified long-term care in- ‘‘Sec. 7702B. Treatment of qualified long- assistance with any of the disabilities as a surance contract, as defined in section term care insurance.’’. result of which the individual is a chron- 7702B(b))’’ after ‘‘insurance contract’’. ically ill individual (including the protection (c) LONG-TERM CARE INSURANCE NOT PER- (g) EFFECTIVE DATE.— from threats to health and safety due to se- MITTED UNDER CAFETERIA PLANS OR FLEXIBLE (1) IN GENERAL.—The amendments made by vere cognitive impairment). SPENDING ARRANGEMENTS.— this section shall apply to contracts issued ‘‘(4) LICENSED HEALTH CARE PRACTITIONER.— (1) CAFETERIA PLANS.—Section 125(f) is after December 31, 1996. The term ‘licensed health care practitioner’ amended by adding at the end the following (2) CONTINUATION OF EXISTING POLICIES.—In means any physician (as defined in section new sentence: ‘‘Such term shall not include the case of any contract issued before Janu- 1861(r)(1) of the Social Security Act (42 any long-term care insurance contract (as ary 1, 1997, which met the long-term care in- U.S.C. 1395x(r)(1)) and any registered profes- defined in section 4980C).’’ surance requirements of the State in which sional nurse, licensed social worker, or other (2) FLEXIBLE SPENDING ARRANGEMENTS.— the contract was issued at the time the con- individual who meets such requirements as The text of section 106 (relating to contribu- tract was issued— may be prescribed by the Secretary. tions by employer to accident and health (A) such contract shall be treated for pur- ‘‘(d) AGGREGATE PAYMENTS IN EXCESS OF plans) is amended to read as follows: poses of the Internal Revenue Code of 1986 as LIMITS.— ‘‘(a) GENERAL RULE.—Except as otherwise a qualified long-term care insurance con- ‘‘(1) IN GENERAL.—If the aggregate amount provided in this section, gross income of an tract (as defined in section 7702B(b) of such of periodic payments under all qualified employee does not include employer-pro- Code), and long-term care insurance contracts with re- vided coverage under an accident or health (B) services provided under, or reimbursed spect to an insured for any period exceeds plan. by, such contract shall be treated for such the dollar amount in effect for such period ‘‘(b) INCLUSION OF LONG-TERM CARE BENE- purposes as qualified long-term care services under paragraph (3), such excess payments FITS PROVIDED THROUGH FLEXIBLE SPENDING (as defined in section 7702B(c) of such Code). shall be treated as made for qualified long- ARRANGEMENTS.— (3) EXCHANGES OF EXISTING POLICIES.—If, term care services only to the extent of the ‘‘(1) IN GENERAL.—Effective on and after after the date of enactment of this Act and costs incurred by the payee (not otherwise January 1, 1997, gross income of an employee before January 1, 1998, a contract providing compensated for by insurance or otherwise) shall include employer-provided coverage for for long-term care insurance coverage is ex- for qualified long-term care services pro- qualified long-term care services (as defined changed solely for a qualified long-term care vided during such period for such insured. in section 7702B(c)) to the extent that such insurance contract (as defined in section ‘‘(2) PERIODIC PAYMENTS.—For purposes of coverage is provided through a flexible 7702B(b) of such Code), no gain or loss shall paragraph (1), the term ‘periodic payment’ spending or similar arrangement. be recognized on the exchange. If, in addition means any payment (whether on a periodic ‘‘(2) FLEXIBLE SPENDING ARRANGEMENT.— to a qualified long-term care insurance con- basis or otherwise) made without regard to For purposes of this subsection, a flexible tract, money or other property is received in the extent of the costs incurred by the payee spending arrangement is a benefit program the exchange, then any gain shall be recog- for qualified long-term care services. which provides employees with coverage nized to the extent of the sum of the money ‘‘(3) DOLLAR AMOUNT.—The dollar amount under which— and the fair market value of the other prop- in effect under this subsection shall be $175 ‘‘(A) specified incurred expenses may be re- erty received. For purposes of this para- per day (or the equivalent amount in the imbursed (subject to reimbursement maxi- graph, the cancellation of a contract provid- case of payments on another periodic basis). mums and other reasonable conditions), and ing for long-term care insurance coverage ‘‘(4) INFLATION ADJUSTMENT.—In the case of ‘‘(B) the maximum amount of reimburse- and reinvestment of the cancellation pro- a calendar year after 1997, the dollar amount ment which is reasonably available to a par- ceeds in a qualified long-term care insurance contained in paragraph (3) shall be increased ticipant for such coverage is less than 500 contract within 60 days thereafter shall be at the same time and in the same manner as percent of the value of such coverage. treated as an exchange. S3644 CONGRESSIONAL RECORD — SENATE April 18, 1996

(4) ISSUANCE OF CERTAIN RIDERS PER- scribed in the preceding sentence, and the defined in section 7702B(b)) for coverage of MITTED.—For purposes of applying sections adjustment so prescribed shall apply in lieu such individual or the spouse of such individ- 101(f), 7702, and 7702A of the Internal Revenue of the adjustment described in the preceding ual are made, and’’. Code of 1986 to any contract— sentence.’’ (c) CONFORMING AMENDMENT.—Section (A) the issuance of a rider which is treated (3) Paragraph (6) of section 213(d) is amend- 72t(2)(B) is amended by striking ‘‘subpara- as a qualified long-term care insurance con- ed— graph (A) or (C))’’ and inserting ‘‘subpara- tract under section 7702B, and (A) by striking ‘‘subparagraphs (A) and graph (A), (C), or (D))’’. (B) the addition of any provision required (B)’’ and inserting ‘‘subparagraphs (A), (B), to conform any other long-term care rider to and (C)’’, and (d) EFFECTIVE DATE.—The amendments be so treated, (B) by striking ‘‘paragraph (1)(C)’’ in sub- made by this section shall apply to payments shall not be treated as a modification or ma- paragraph (A) and inserting ‘‘paragraph and distributions after December 31, 1996. terial change of such contract. (1)(D)’’. SEC. 415. REPORTING REQUIREMENTS. SEC. 412. QUALIFIED LONG-TERM CARE SERV- (4) Paragraph (7) of section 213(d) is amend- (a) IN GENERAL.—Subpart B of part III of ICES TREATED AS MEDICAL CARE. ed by striking ‘‘subparagraphs (A) and (B)’’ subchapter A of chapter 61 is amended by (a) GENERAL RULE.—Paragraph (1) of sec- and inserting ‘‘subparagraphs (A), (B), and adding at the end the following new section: tion 213(d) (defining medical care) is amend- (C)’’. ed by striking ‘‘or’’ at the end of subpara- (c) EFFECTIVE DATE.—The amendments ‘‘SEC. 6050Q. CERTAIN LONG-TERM CARE BENE- graph (B), by redesignating subparagraph (C) made by this section shall apply to taxable FITS. years beginning after December 31, 1996. as subparagraph (D), and by inserting after ‘‘(a) REQUIREMENT OF REPORTING.—Any SEC. 413. CERTAIN EXCHANGES OF LIFE INSUR- subparagraph (B) the following new subpara- person who pays long-term care benefits graph: ANCE CONTRACTS FOR QUALIFIED LONG-TERM CARE INSURANCE CON- shall make a return, according to the forms ‘‘(C) for qualified long-term care services TRACTS NOT TAXABLE. or regulations prescribed by the Secretary, (as defined in section 7702B(c)), or’’. (a) IN GENERAL.—Subsection (a) of section setting forth— (b) TECHNICAL AMENDMENTS.— 1035 (relating to certain exchanges of insur- ‘‘(1) the aggregate amount of such benefits (1) Subparagraph (D) of section 213(d)(1) (as ance contracts) is amended by striking the paid by such person to any individual during redesignated by subsection (a)) is amended period at the end of paragraph (3) and insert- any calendar year, and by striking ‘‘subparagraphs (A) and (B)’’ and ing ‘‘; or’’, and by adding at the end the fol- ‘‘(2) the name, address, and TIN of such in- inserting ‘‘subparagraphs (A), (B), and (C)’’. lowing new paragraph: dividual. (2)(A) Paragraph (1) of section 213(d) is ‘‘(4) a contract of life insurance or an en- ‘‘(b) STATEMENTS TO BE FURNISHED TO PER- amended by adding at the end the following dowment or annuity contract for a qualified SONS WITH RESPECT TO WHOM INFORMATION IS new flush sentence: long-term care insurance contract (as de- REQUIRED.—Every person required to make a ‘‘In the case of a qualified long-term care in- fined in section 7702B(b)).’’ return under subsection (a) shall furnish to surance contract (as defined in section (b) EFFECTIVE DATE.—The amendment 7702B(b)), only eligible long-term care pre- made by this section shall apply to taxable each individual whose name is required to be miums (as defined in paragraph (11)) shall be years beginning after December 31, 1997. set forth in such return a written statement taken into account under subparagraph (D).’’ SEC. 414. EXCEPTION FROM PENALTY TAX FOR showing— (B) Subsection (d) of section 213 is amended AMOUNTS WITHDRAWN FROM CER- ‘‘(1) the name of the person making the by adding at the end the following new para- TAIN RETIREMENT PLANS FOR payments, and graph: QUALIFIED LONG-TERM CARE IN- ‘‘(2) the aggregate amount of long-term SURANCE. ‘‘(11) ELIGIBLE LONG-TERM CARE PRE- care benefits paid to the individual which (a) IN GENERAL.—Paragraph (2) of section are required to be shown on such return. MIUMS.— 72(t) is amended by adding at the end the fol- ‘‘(A) IN GENERAL.—For purposes of this sec- lowing new subparagraph: The written statement required under the tion, the term ‘eligible long-term care pre- ‘‘(D) PREMIUMS FOR QUALIFIED LONG-TERM preceding sentence shall be furnished to the miums’ means the amount paid during a tax- CARE INSURANCE CONTRACTS.—Distributions individual on or before January 31 of the able year for any qualified long-term care in- to an individual from an individual retire- year following the calendar year for which surance contract (as defined in section ment plan, or from amounts attributable to the return under subsection (a) was required 7702B(b)) covering an individual, to the ex- employer contributions made pursuant to to be made. tent such amount does not exceed the limita- elective deferrals described in subparagraph ‘‘(c) LONG-TERM CARE BENEFITS.—For pur- tion determined under the following table: (A) or (C) of section 402(g)(3), to the extent poses of this section, the term ‘long-term ‘‘In the case of an in- The limitation is such distributions do not exceed the pre- care benefit’ means any amount paid under a dividual with an at- miums for a qualified long-term care insur- long-term care insurance policy (within the tained age before ance contract (as defined in section 7702B(b)) meaning of section 4980C(e)).’’. the close of the tax- for such individual or the spouse of such in- (b) PENALTIES.— able year of: dividual. In applying subparagraph (B), such (1) Subparagraph (B) of section 6724(d)(1) is 40 or less ...... premiums shall be treated as amounts not amended by redesignating clauses (ix) $200 ...... paid for medical care.’’ through (xiv) as clauses (x) through (xv), re- More than 40 but not more (b) DISTRIBUTIONS PERMITTED FROM CER- spectively, and by inserting after clause than 50 ...... 375 TAIN PLANS TO PAY LONG-TERM CARE PRE- (viii) the following new clause: More than 50 but not more MIUMS.— than 60 ...... 750 (1) Section 401(k)(2)(B)(i) is amended by ‘‘(ix) section 6050Q (relating to certain More than 60 but not more striking ‘‘or’’ at the end of subclause (III), by long-term care benefits),’’. than 70 ...... 2,000 striking ‘‘and’’ at the end of subclause (IV) (2) Paragraph (2) of section 6724(d) is More than 70 ...... 2,500. and inserting ‘‘or’’, and by inserting after amended by redesignating subparagraphs (Q) ‘‘(B) INDEXING.— subclause (IV) the following new subclause: through (T) as subparagraphs (R) through ‘‘(i) IN GENERAL.—In the case of any tax- ‘‘(V) the date distributions for premiums (U), respectively, and by inserting after sub- able year beginning in a calendar year after for a long-term care insurance contract (as paragraph (P) the following new subpara- 1997, each dollar amount contained in sub- defined in section 7702B(b)) for coverage of graph: paragraph (A) shall be increased by the medi- such individual or the spouse of such individ- ‘‘(Q) section 6050Q(b) (relating to certain cal care cost adjustment of such amount for ual are made, and’’. long-term care benefits),’’. such calendar year. If any increase deter- (2) Section 403(b)(11) is amended by strik- (c) CLERICAL AMENDMENT.—The table of mined under the preceding sentence is not a ing ‘‘or’’ at the end of subparagraph (A), by sections for subpart B of part III of sub- multiple of $10, such increase shall be round- striking the period at the end of subpara- chapter A of chapter 61 is amended by adding ed to the nearest multiple of $10. graph (B) and inserting ‘‘, or’’, and by insert- at the end the following new item: ‘‘(ii) MEDICAL CARE COST ADJUSTMENT.—For ing after subparagraph (B) the following new purposes of clause (i), the medical care cost subparagraph: ‘‘Sec. 6050Q. Certain long-term care bene- adjustment for any calendar year is the per- ‘‘(C) for the payment of premiums for a fits.’’ centage (if any) by which— long-term care insurance contract (as de- (d) EFFECTIVE DATE.—The amendments ‘‘(I) the medical care component of the fined in section 7702B(b)) for coverage of the Consumer Price Index (as defined in section made by this section shall apply to benefits employee or the spouse of the employee.’’ paid after December 31, 1996. 1(f)(5)) for August of the preceding calendar (3) Subparagraph (A) of section 457(d)(1) is year, exceeds amended by striking ‘‘or’’ at the end of Subchapter B—Consumer Protection ‘‘(II) such component for August of 1996. clause (ii), by striking ‘‘and’’ at the end of Provisions The Secretary shall, in consultation with the clause (iii) and inserting ‘‘or’’, and by insert- Secretary of Health and Human Services, ing after clause (iii) the following new SEC. 421. POLICY REQUIREMENTS. prescribe an adjustment which the Secretary clause: Section 7702B (as added by section 411) is determines is more appropriate for purposes ‘‘(iv) the date distributions for premiums amended by adding at the end the following of this paragraph than the adjustment de- for a long-term care insurance contract (as new subsection: April 18, 1996 CONGRESSIONAL RECORD — SENATE S3645

‘‘(f) CONSUMER PROTECTION PROVISIONS.— ‘‘(ii) The nonforfeiture provision shall pro- apply to denials of applications and any re- ‘‘(1) IN GENERAL.—The requirements of this vide for a benefit available in the event of a fund shall be made within 30 days of the re- subsection are met with respect to any con- default in the payment of any premiums and turn or denial. tract if any long-term care insurance policy the amount of the benefit may be adjusted ‘‘(ii) Section 6G (relating to outline of cov- issued under the contract meets— subsequent to being initially granted only as erage). ‘‘(A) the requirements of the model regula- necessary to reflect changes in claims, per- ‘‘(iii) Section 6H (relating to requirements tion and model Act described in paragraph sistency, and interest as reflected in changes for certificates under group plans). (2), in rates for premium paying policies ap- ‘‘(iv) Section 6I (relating to policy sum- ‘‘(B) the disclosure requirement of para- proved by the appropriate State regulatory mary). graph (3), and authority for the same policy form. ‘‘(v) Section 6J (relating to monthly re- ‘‘(C) the requirements relating to non- ‘‘(iii) The nonforfeiture provision shall pro- ports on accelerated death benefits). forfeitability under paragraph (4). vide at least one of the following: ‘‘(vi) Section 7 (relating to incontestability ‘‘(2) REQUIREMENTS OF MODEL REGULATION ‘‘(I) Reduced paid-up insurance. period). AND ACT.— ‘‘(II) Extended term insurance. ‘‘(C) DEFINITIONS.—For purposes of this ‘‘(A) IN GENERAL.—The requirements of ‘‘(III) Shortened benefit period. paragraph, the terms ‘model regulation’ and this paragraph are met with respect to any ‘‘(IV) Other similar offerings approved by ‘model Act’ have the meanings given such policy if such policy meets— the Secretary. terms by section 7702B(f)(2)(B). ‘‘(i) MODEL REGULATION.—The following re- ‘‘(5) LONG-TERM CARE INSURANCE POLICY DE- ‘‘(2) DELIVERY OF POLICY.—If an application quirements of the model regulation: FINED.—For purposes of this subsection, the for a long-term care insurance policy (or for ‘‘(I) Section 7A (relating to guaranteed re- term ‘long-term care insurance policy’ has a certificate under a group long-term care newal or noncancellability), and the require- the meaning given such term by section insurance policy) is approved, the issuer ments of section 6B of the model Act relat- 4980C(e).’’. shall deliver to the applicant (or policy- ing to such section 7A. SEC. 422. REQUIREMENTS FOR ISSUERS OF holder or certificateholder) the policy (or ‘‘(II) Section 7B (relating to prohibitions LONG-TERM CARE INSURANCE POLI- certificate) of insurance not later than 30 on limitations and exclusions). CIES. days after the date of the approval. ‘‘(III) Section 7C (relating to extension of (a) IN GENERAL.—Chapter 43 is amended by ‘‘(3) INFORMATION ON DENIALS OF CLAIMS.—If benefits). adding at the end the following new section: a claim under a long-term care insurance ‘‘(IV) Section 7D (relating to continuation ‘‘SEC. 4980C. REQUIREMENTS FOR ISSUERS OF policy is denied, the issuer shall, within 60 or conversion of coverage). LONG-TERM CARE INSURANCE POLI- days of the date of a written request by the ‘‘(V) Section 7E (relating to discontinuance CIES. policyholder or certificateholder (or rep- ‘‘(a) GENERAL RULE.—There is hereby im- and replacement of policies). resentative)— posed on any person failing to meet the re- ‘‘(VI) Section 8 (relating to unintentional ‘‘(A) provide a written explanation of the quirements of subsection (c) or (d) a tax in lapse). reasons for the denial, and the amount determined under subsection (b). ‘‘(VII) Section 9 (relating to disclosure), ‘‘(B) make available all information di- ‘‘(b) AMOUNT.— other than section 9F thereof. rectly relating to such denial. ‘‘(1) IN GENERAL.—The amount of the tax ‘‘(VIII) Section 10 (relating to prohibitions ‘‘(d) DISCLOSURE.—The requirements of this imposed by subsection (a) shall be $100 per against post-claims underwriting). subsection are met if the issuer of a long- policy for each day any requirements of sub- ‘‘(IX) Section 11 (relating to minimum term care insurance policy discloses in such section (c) or (d) are not met with respect to standards). policy and in the outline of coverage re- each long-term care insurance policy. ‘‘(X) Section 12 (relating to requirement to quired under subsection (c)(1)(B)(ii) that the ‘‘(2) WAIVER.—In the case of a failure which offer inflation protection), except that any policy is intended to be a qualified long-term is due to reasonable cause and not to willful requirement for a signature on a rejection of care insurance contract under section neglect, the Secretary may waive part or all inflation protection shall permit the signa- 7702B(b). of the tax imposed by subsection (a) to the ture to be on an application or on a separate ‘‘(e) LONG-TERM CARE INSURANCE POLICY form. extent that payment of the tax would be ex- DEFINED.—For purposes of this section, the cessive relative to the failure involved. ‘‘(XI) Section 23 (relating to prohibition term ‘long-term care insurance policy’ against preexisting conditions and proba- ‘‘(c) RESPONSIBILITIES.—The requirements of this subsection are as follows: means any product which is advertised, mar- tionary periods in replacement policies or keted, or offered as long-term care insur- ‘‘(1) REQUIREMENTS OF MODEL PROVISIONS.— certificates). ance.’’. ‘‘(A) MODEL REGULATION.—The following ‘‘(ii) MODEL ACT.—The following require- (b) CONFORMING AMENDMENT.—The table of requirements of the model regulation must ments of the model Act: sections for chapter 43 is amended by adding be met: ‘‘(I) Section 6C (relating to preexisting at the end the following new item: conditions). ‘‘(i) Section 13 (relating to application ‘‘(II) Section 6D (relating to prior hos- forms and replacement coverage). ‘‘Sec. 4980C. Requirements for issuers of pitalization). ‘‘(ii) Section 14 (relating to reporting re- long-term care insurance poli- ‘‘(B) DEFINITIONS.—For purposes of this quirements), except that the issuer shall also cies.’’. paragraph— report at least annually the number of SEC. 423. COORDINATION WITH STATE REQUIRE- ‘‘(i) MODEL PROVISIONS.—The terms ‘model claims denied during the reporting period for MENTS. regulation’ and ‘model Act’ mean the long- each class of business (expressed as a per- Nothing in this subchapter shall prevent a term care insurance model regulation, and centage of claims denied), other than claims State from establishing, implementing, or the long-term care insurance model Act, re- denied for failure to meet the waiting period continuing in effect standards related to the spectively, promulgated by the National As- or because of any applicable preexisting con- protection of policyholders of long-term care sociation of Insurance Commissioners (as dition. insurance policies (as defined in section adopted as of January 1993). ‘‘(iii) Section 20 (relating to filing require- 4980C(e) of the Internal Revenue Code of ‘‘(ii) COORDINATION.—Any provision of the ments for marketing). 1986), if such standards are not in conflict model regulation or model Act listed under ‘‘(iv) Section 21 (relating to standards for with or inconsistent with the standards es- clause (i) or (ii) of subparagraph (A) shall be marketing), including inaccurate completion tablished under such Code. treated as including any other provision of of medical histories, other than sections SEC. 424. EFFECTIVE DATES. such regulation or Act necessary to imple- 21C(1) and 21C(6) thereof, except that— (a) IN GENERAL.—The provisions of, and ment the provision. ‘‘(I) in addition to such requirements, no amendments made by, this subchapter shall ‘‘(3) DISCLOSURE REQUIREMENT.—The re- person shall, in selling or offering to sell a apply to contracts issued after December 31, quirement of this paragraph is met with re- long-term care insurance policy, misrepre- 1996. The provisions of section 411(g) of this spect to any policy if such policy meets the sent a material fact; and Act (relating to transition rule) shall apply requirements of section 4980C(d)(1). ‘‘(II) no such requirements shall include a to such contracts. ‘‘(4) NONFORFEITURE REQUIREMENTS.— requirement to inquire or identify whether a (b) ISSUERS.—The amendments made by ‘‘(A) IN GENERAL.—The requirements of prospective applicant or enrollee for long- section 422 shall apply to actions taken after this paragraph are met with respect to any term care insurance has accident and sick- December 31, 1996. level premium long-term care insurance pol- ness insurance. CHAPTER 2—TREATMENT OF icy, if the issuer of such policy offers to the ‘‘(v) Section 22 (relating to appropriateness ACCELERATED DEATH BENEFITS policyholder, including any group policy- of recommended purchase). SEC. 431. TREATMENT OF ACCELERATED DEATH holder, a nonforfeiture provision meeting the ‘‘(vi) Section 24 (relating to standard for- BENEFITS BY RECIPIENT. requirements of subparagraph (B). mat outline of coverage). (a) IN GENERAL.—Section 101 (relating to ‘‘(B) REQUIREMENTS OF PROVISION.—The ‘‘(vii) Section 25 (relating to requirement certain death benefits) is amended by adding nonforfeiture provision required under sub- to deliver shopper’s guide). at the end the following new subsection: paragraph (A) shall meet the following re- ‘‘(B) MODEL ACT.—The following require- ‘‘(g) TREATMENT OF CERTAIN ACCELERATED quirements: ments of the model Act must be met: DEATH BENEFITS.— ‘‘(i) The nonforfeiture provision shall be ‘‘(i) Section 6F (relating to right to re- ‘‘(1) IN GENERAL.—For purposes of this sec- appropriately captioned. turn), except that such section shall also tion, the following amounts shall be treated S3646 CONGRESSIONAL RECORD — SENATE April 18, 1996

as an amount paid by reason of the death of ‘‘(1) IN GENERAL.—Any reference to a life be allowed under this section for any amount an insured: insurance contract shall be treated as in- paid for any taxable year to a medical sav- ‘‘(A) Any amount received under a life including a reference to a qualified accelerated ings account of an individual if— surance contract on the life of an insured death benefit rider on such contract. ‘‘(A) any amount is paid to any medical who is a terminally ill individual. ‘‘(2) QUALIFIED ACCELERATED DEATH BENEFIT savings account of such individual which is ‘‘(B) Any amount received under a life in- RIDERS.—For purposes of this subsection, the excludable from gross income under section surance contract on the life of an insured term ‘qualified accelerated death benefit 106(b) for such year, or who is a chronically ill individual (as defined rider’ means any rider on a life insurance ‘‘(B) in a case described in paragraph (2)(B), in section 7702B(c)(2)) but only if such contract if the only payments under the any amount is paid to any medical savings amount is received under a rider or other rider are payments meeting the require- account of either spouse which is so exclud- provision of such contract which is treated ments of section 101(g). able for such year. as a qualified long-term care insurance con- ‘‘(3) EXCEPTION FOR LONG-TERM CARE RID- ‘‘(4) PRORATION OF LIMITATION.— tract under section 7702B. ERS.—Paragraph (1) shall not apply to any ‘‘(A) IN GENERAL.—The limitation under ‘‘(2) TREATMENT OF VIATICAL SETTLE- rider which is treated as a long-term care in- paragraph (1) shall be the sum of the month- MENTS.— surance contract under section 7702B.’’ ly limitations for months during the taxable ‘‘(A) IN GENERAL.—In the case of a life in- (b) EFFECTIVE DATE.— year that the individual is an eligible indi- surance contract on the life of an insured de- (1) IN GENERAL.—The amendment made by vidual if— scribed in paragraph (1), if— this section shall take effect on January 1, ‘‘(i) such individual is not an eligible indi- ‘‘(i) any portion of such contract is sold to 1997. vidual for all months of the taxable year, any viatical settlement provider, or (2) ISSUANCE OF RIDER NOT TREATED AS MA- ‘‘(ii) the deductible under the high deduct- ‘‘(ii) any portion of the death benefit is as- TERIAL CHANGE.—For purposes of applying ible health plan covering such individual is signed to such a provider, sections 101(f), 7702, and 7702A of the Internal not the same throughout such taxable year, or the amount paid for such sale or assignment Revenue Code of 1986 to any contract— ‘‘(iii) such limitation is determined under shall be treated as an amount paid under the (A) the issuance of a qualified accelerated death benefit rider (as defined in section paragraph (1)(B) for some but not all months life insurance contract by reason of the during such taxable year. death of such insured. 818(g) of such Code (as added by this Act)), and ‘‘(B) MONTHLY LIMITATION.—The monthly ‘‘(B) VIATICAL SETTLEMENT PROVIDER.—The limitation for any month shall be an amount term ‘viatical settlement provider’ means (B) the addition of any provision required to conform an accelerated death benefit equal to 1⁄12 of the limitation which would any person regularly engaged in the trade or (but for this paragraph and paragraph (3)) be business of purchasing, or taking assign- rider to the requirements of such section 818(g), determined under paragraph (1) if the facts ments of, life insurance contracts on the and circumstances as of the first day of such shall not be treated as a modification or ma- lives of insureds described in paragraph (1) month that such individual is covered under if— terial change of such contract. a high deductible health plan were true for ‘‘(i) such person is licensed for such pur- Subtitle C—Medical Savings Accounts the entire taxable year. poses in the State in which the insured re- SEC. 441. MEDICAL SAVINGS ACCOUNTS. ‘‘(5) DENIAL OF DEDUCTION TO DEPEND- sides, or (a) IN GENERAL.—Part VII of subchapter B ENTS.—No deduction shall be allowed under ‘‘(ii) in the case of an insured who resides of chapter 1 (relating to additional itemized this section to any individual with respect to in a State not requiring the licensing of such deductions for individuals) is amended by re- whom a deduction under section 151 is allow- persons for such purposes— designating section 220 as section 221 and by able to another taxpayer for a taxable year ‘‘(I) such person meets the requirements of inserting after section 219 the following new beginning in the calendar year in which such sections 8 and 9 of the Viatical Settlements section: individual’s taxable year begins. Model Act of the National Association of In- ‘‘SEC. 220. MEDICAL SAVINGS ACCOUNTS. ‘‘(c) DEFINITIONS.—For purposes of this sec- surance Commissioners, and ‘‘(a) DEDUCTION ALLOWED.—In the case of tion— ‘‘(II) meets the requirements of the Model an individual who is an eligible individual ‘‘(1) ELIGIBLE INDIVIDUAL.— Regulations of the National Association of for any month during the taxable year, there ‘‘(A) IN GENERAL.—The term ‘eligible indi- Insurance Commissioners (relating to stand- shall be allowed as a deduction for the tax- vidual’ means, with respect to any month, ards for evaluation of reasonable payments) able year an amount equal to the aggregate any individual— in determining amounts paid by such person amount paid in cash during such taxable ‘‘(i) who is covered under a high deductible in connection with such purchases or assign- year by such individual to a medical savings health plan as of the 1st day of such month, ments. account of such individual. and ‘‘(3) DEFINITIONS.—For purposes of this sub- ‘‘(b) LIMITATIONS.— ‘‘(ii) who is not, while covered under a high section— ‘‘(1) IN GENERAL.—Except as otherwise pro- deductible health plan, covered under any ‘‘(A) TERMINALLY ILL INDIVIDUAL.—The vided in this subsection, the amount allow- health plan— term ‘terminally ill individual’ means an in- able as a deduction under subsection (a) to ‘‘(I) which is not a high deductible health dividual who has been certified by a physi- an individual for the taxable year shall not plan, and cian as having an illness or physical condi- exceed— ‘‘(II) which provides coverage for any bene- tion which can reasonably be expected to re- ‘‘(A) except as provided in subparagraph fit which is covered under the high deduct- sult in death in 24 months or less after the (B), the lesser of— ible health plan. date of the certification. ‘‘(i) $2,000, or ‘‘(B) CERTAIN COVERAGE DISREGARDED.— ‘‘(B) PHYSICIAN.—The term ‘physician’ has ‘‘(ii) the annual deductible limit for any Subparagraph (A)(ii) shall be applied without the meaning given to such term by section individual covered under the high deductible regard to— 1861(r)(1) of the Social Security Act (42 health plan, or ‘‘(i) coverage for any benefit provided by U.S.C. 1395x(r)(1)). ‘‘(B) in the case of a high deductible health permitted insurance, and ‘‘(4) EXCEPTION FOR BUSINESS-RELATED POLI- plan covering the taxpayer and any other eli- ‘‘(ii) coverage (whether through insurance CIES.—This subsection shall not apply in the gible individual who is the spouse or any de- or otherwise) for accidents, disability, dental case of any amount paid to any taxpayer pendent (as defined in section 152) of the tax- care, vision care, or long-term care. other than the insured if such taxpayer has payer, the lesser of— ‘‘(2) HIGH DEDUCTIBLE HEALTH PLAN.—The an insurable interest with respect to the life ‘‘(i) $4,000, or term ‘high deductible health plan’ means a of the insured by reason of the insured being ‘‘(ii) the annual limit under the plan on the health plan which— a director, officer, or employee of the tax- aggregate amount of deductibles required to ‘‘(A) has an annual deductible limit for payer or by reason of the insured being fi- be paid by all individuals. each individual covered by the plan which is nancially interested in any trade or business The preceding sentence shall not apply if the not less than $1,500, and carried on by the taxpayer.’’ spouse of such individual is covered under ‘‘(B) has an annual limit on the aggregate (b) EFFECTIVE DATE.—The amendment any other high deductible health plan. amount of deductibles required to be paid made by subsection (a) shall apply to ‘‘(2) SPECIAL RULE FOR MARRIED INDIVID- with respect to all individuals covered by the amounts received after December 31, 1996. UALS.— plan which is not less than $3,000. SEC. 432. TAX TREATMENT OF COMPANIES ISSU- ‘‘(A) IN GENERAL.—This subsection shall be Such term does not include a health plan if ING QUALIFIED ACCELERATED applied separately for each married individ- substantially all of its coverage is coverage DEATH BENEFIT RIDERS. ual. described in paragraph (1)(B). (a) QUALIFIED ACCELERATED DEATH BENEFIT ‘‘(B) SPECIAL RULE.—If individuals who are ‘‘(3) PERMITTED INSURANCE.—The term ‘per- RIDERS TREATED AS LIFE INSURANCE.—Sec- married to each other are covered under the mitted insurance’ means— tion 818 (relating to other definitions and same high deductible health plan, then the ‘‘(A) Medicare supplemental insurance, special rules) is amended by adding at the amounts applicable under paragraph (1)(B) ‘‘(B) insurance if substantially all of the end the following new subsection: shall be divided equally between them unless coverage provided under such insurance re- ‘‘(g) QUALIFIED ACCELERATED DEATH BENE- they agree on a different division. lates to— FIT RIDERS TREATED AS LIFE INSURANCE.— ‘‘(3) COORDINATION WITH EXCLUSION FOR EM- ‘‘(i) liabilities incurred under workers’ For purposes of this part— PLOYER CONTRIBUTIONS.—No deduction shall compensation laws, April 18, 1996 CONGRESSIONAL RECORD — SENATE S3647

‘‘(ii) tort liabilities, graph (2) or (3). Notwithstanding the preced- ‘‘(A) IN GENERAL.—The tax imposed by this ‘‘(iii) liabilities relating to ownership or ing sentence, any such account is subject to chapter on the account holder for any tax- use of property, or the taxes imposed by section 511 (relating to able year in which there is a payment or dis- ‘‘(iv) such other similar liabilities as the imposition of tax on unrelated business in- tribution from a medical savings account of Secretary may specify by regulations, come of charitable, etc. organizations). such holder which is includible in gross in- ‘‘(C) insurance for a specified disease or ill- ‘‘(2) ACCOUNT TERMINATIONS.—Rules similar come under paragraph (2) shall be increased ness, and to the rules of paragraphs (2) and (4) of sec- by 10 percent of the amount which is so in- ‘‘(D) insurance paying a fixed amount per tion 408(e) shall apply to medical savings ac- cludible. day (or other period) of hospitalization. counts, and any amount treated as distrib- ‘‘(B) EXCEPTION FOR DISABILITY OR DEATH.— ‘‘(d) MEDICAL SAVINGS ACCOUNT.—For pur- uted under such rules shall be treated as not Subparagraph (A) shall not apply if the pay- poses of this section— used to pay qualified medical expenses. ment or distribution is made after the ac- ‘‘(1) MEDICAL SAVINGS ACCOUNT.—The term ‘‘(f) TAX TREATMENT OF DISTRIBUTIONS.— count holder becomes disabled within the ‘medical savings account’ means a trust cre- ‘‘(1) AMOUNTS USED FOR QUALIFIED MEDICAL meaning of section 72(m)(7) or dies. ated or organized in the United States exclu- EXPENSES.— ‘‘(C) EXCEPTION FOR DISTRIBUTIONS AFTER sively for the purpose of paying the qualified ‘‘(A) IN GENERAL.—Any amount paid or dis- AGE 591⁄2.—Subparagraph (A) shall not apply medical expenses of the account holder, but tributed out of a medical savings account to any payment or distribution after the only if the written governing instrument which is used exclusively to pay qualified date on which the account holder attains age creating the trust meets the following re- medical expenses of any account holder (or 591⁄2. quirements: any spouse or dependent of the holder) shall ‘‘(5) ROLLOVER CONTRIBUTION.—An amount ‘‘(A) Except in the case of a rollover con- not be includible in gross income. is described in this paragraph as a rollover tribution described in subsection (f)(5), no ‘‘(B) TREATMENT AFTER DEATH OF ACCOUNT contribution if it meets the requirements of contribution will be accepted— HOLDER.— subparagraphs (A) and (B). ‘‘(i) unless it is in cash, or ‘‘(i) TREATMENT IF HOLDER IS SPOUSE.—If, ‘‘(A) IN GENERAL.—Paragraph (2) shall not ‘‘(ii) to the extent such contribution, when after the death of the account holder, the ac- apply to any amount paid or distributed added to previous contributions to the trust count holder’s interest is payable to (or for from a medical savings account to the ac- for the calendar year, exceeds $4,000. the benefit of) the holder’s spouse, the medi- count holder to the extent the amount re- ‘‘(B) The trustee is a bank (as defined in cal savings account shall be treated as if the ceived is paid into a medical savings account section 408(n)), an insurance company (as de- spouse were the account holder. for the benefit of such holder not later than fined in section 816), or another person who ‘‘(ii) TREATMENT IF DESIGNATED HOLDER IS the 60th day after the day on which the hold- demonstrates to the satisfaction of the Sec- NOT SPOUSE.—In the case of an account holder receives the payment or distribution. retary that the manner in which such person er’s interest in a medical savings account ‘‘(B) LIMITATION.—This paragraph shall not will administer the trust will be consistent which is payable to (or for the benefit of) any apply to any amount described in subpara- with the requirements of this section. person other than such holder’s spouse upon graph (A) received by an individual from a ‘‘(C) No part of the trust assets will be in- the death of such holder— medical savings account if, at any time dur- vested in life insurance contracts. ‘‘(I) such account shall cease to be a medi- ing the 1-year period ending on the day of ‘‘(D) The assets of the trust will not be cal savings account as of the date of death, such receipt, such individual received any commingled with other property except in a and other amount described in subparagraph (A) common trust fund or common investment ‘‘(II) an amount equal to the fair market from a medical savings account which was fund. value of the assets in such account on such not includible in the individual’s gross in- ‘‘(E) The interest of an individual in the date shall be includible if such person is not come because of the application of this para- balance in his account is nonforfeitable. the estate of such holder, in such person’s graph. ‘‘(2) QUALIFIED MEDICAL EXPENSES.— gross income for the taxable year which in- ‘‘(6) COORDINATION WITH MEDICAL EXPENSE ‘‘(A) IN GENERAL.—The term ‘qualified cludes such date, or if such person is the es- DEDUCTION.—For purposes of determining the medical expenses’ means, with respect to an tate of such holder, in such holder’s gross in- amount of the deduction under section 213, account holder, amounts paid by such holder come for the last taxable year of such holder. any payment or distribution out of a medical for medical care (as defined in section 213(d)) ‘‘(2) INCLUSION OF AMOUNTS NOT USED FOR savings account for qualified medical ex- for such individual, the spouse of such indi- QUALIFIED MEDICAL EXPENSES.— penses shall not be treated as an expense vidual, and any dependent (as defined in sec- ‘‘(A) IN GENERAL.—Any amount paid or dis- paid for medical care. tion 152) of such individual, but only to the tributed out of a medical savings account ‘‘(7) TRANSFER OF ACCOUNT INCIDENT TO DI- extent such amounts are not compensated which is not used exclusively to pay the VORCE.—The transfer of an individual’s inter- for by insurance or otherwise. qualified medical expenses of the account est in a medical savings account to an indi- ‘‘(B) HEALTH INSURANCE MAY NOT BE PUR- holder or of the spouse or dependents of such vidual’s spouse or former spouse under a di- CHASED FROM ACCOUNT.— holder shall be included in the gross income vorce or separation instrument described in ‘‘(i) IN GENERAL.—Subparagraph (A) shall of such holder. subparagraph (A) of section 71(b)(2) shall not not apply to any payment for insurance. ‘‘(B) SPECIAL RULES.—For purposes of sub- be considered a taxable transfer made by ‘‘(ii) EXCEPTIONS.—Clause (i) shall not paragraph (A)— such individual notwithstanding any other apply to any expense for coverage under— ‘‘(i) all medical savings accounts of the ac- provision of this subtitle, and such interest ‘‘(I) a health plan during any period of con- count holder shall be treated as 1 account, shall, after such transfer, be treated as a tinuation coverage required under any Fed- ‘‘(ii) all payments and distributions during medical savings account with respect to eral law, any taxable year shall be treated as 1 dis- which the spouse is the account holder. ‘‘(II) a qualified long-term care insurance tribution, and ‘‘(g) COST-OF-LIVING ADJUSTMENT.— contract (as defined in section 7702B), or ‘‘(iii) any distribution of property shall be ‘‘(1) IN GENERAL.—In the case of any tax- ‘‘(III) a health plan during a period in taken into account at its fair market value able year beginning in a calendar year after which the individual is receiving unemploy- on the date of the distribution. 1997, each dollar amount in subsection (b)(1), ment compensation under any Federal or ‘‘(3) EXCESS CONTRIBUTIONS RETURNED BE- (c)(2), or (d)(1)(A) shall be increased by an State law. FORE DUE DATE OF RETURN.—If the aggregate amount equal to— ‘‘(3) ACCOUNT HOLDER.—The term ‘account contributions (other than rollover contribu- ‘‘(A) such dollar amount, multiplied by holder’ means the individual on whose behalf tions) for a taxable year to the medical sav- ‘‘(B) the medical care cost adjustment for the medical savings account was established. ings accounts of an individual exceed the such calendar year. amount allowable as a deduction under this ‘‘(4) CERTAIN RULES TO APPLY.—Rules simi- If any increase under the preceding sentence section for such contributions, paragraph (2) lar to the following rules shall apply for pur- is not a multiple of $50, such increase shall shall not apply to distributions from such poses of this section: be rounded to the nearest multiple of $50. accounts (in an amount not greater than ‘‘(A) Section 219(d)(2) (relating to no deduc- ‘‘(2) MEDICAL CARE COST ADJUSTMENT.—For such excess) if— tion for rollovers). purposes of paragraph (1), the medical care ‘‘(A) such distribution is received by the ‘‘(B) Section 219(f)(3) (relating to time cost adjustment for any calendar year is the individual on or before the last day pre- when contributions deemed made). percentage (if any) by which— scribed by law (including extensions of time) ‘‘(C) Except as provided in section 106(c), ‘‘(A) the medical care component of the for filing such individual’s return for such section 219(f)(5) (relating to employer pay- Consumer Price Index (as defined in section taxable year, and ments). 1(f)(5)) for August of the preceding calendar ‘‘(B) such distribution is accompanied by ‘‘(D) Section 408(g) (relating to community year, exceeds the amount of net income attributable to property laws). ‘‘(B) such component for August of 1996. such excess contribution. ‘‘(E) Section 408(h) (relating to custodial ‘‘(h) REPORTS.—The Secretary may require accounts). Any net income described in subparagraph the trustee of a medical savings account to ‘‘(e) TAX TREATMENT OF ACCOUNTS.— (B) shall be included in the gross income of make such reports regarding such account to ‘‘(1) IN GENERAL.—A medical savings ac- the individual for the taxable year in which the Secretary and to the account holder with count is exempt from taxation under this it is received. respect to contributions, distributions, and subtitle unless such account has ceased to be ‘‘(4) PENALTY FOR DISTRIBUTIONS NOT USED such other matters as the Secretary deter- a medical savings account by reason of para- FOR QUALIFIED MEDICAL EXPENSES.— mines appropriate. The reports required by S3648 CONGRESSIONAL RECORD — SENATE April 18, 1996 this subsection shall be filed at such time riod at the end of paragraph (16) and insert- exempt from the tax imposed by this section and in such manner and furnished to such ining ‘‘; or’’, and by inserting after paragraph with respect to any transaction concerning dividuals at such time and in such manner as (16) the following new paragraph: such account (which would otherwise be tax- may be required by those regulations.’’ ‘‘(17) any payment made to or for the bene- able under this section) if, with respect to (b) DEDUCTION ALLOWED WHETHER OR NOT fit of an employee if at the time of such pay- such transaction, the account ceases to be a INDIVIDUAL ITEMIZES OTHER DEDUCTIONS.— ment it is reasonable to believe that the em- medical savings account by reason of the ap- Subsection (a) of section 62 is amended by in- ployee will be able to exclude such payment plication of section 220(e)(2) to such ac- serting after paragraph (15) the following from income under section 106(c).’’ count.’’ new paragraph: (D) WITHHOLDING TAX.—Subsection (a) of (2) Paragraph (1) of section 4975(e) is ‘‘(16) MEDICAL SAVINGS ACCOUNTS.—The de- section 3401 is amended by striking ‘‘or’’ at amended to read as follows: duction allowed by section 220.’’ the end of paragraph (19), by striking the pe- ‘‘(1) PLAN.—For purposes of this section, (c) EXCLUSIONS FOR EMPLOYER CONTRIBU- riod at the end of paragraph (20) and insert- the term ‘plan’ means— TIONS TO MEDICAL SAVINGS ACCOUNTS.— ing ‘‘; or’’, and by inserting after paragraph ‘‘(A) a trust described in section 401(a) (1) EXCLUSION FROM INCOME TAX.—Section (20) the following new paragraph: which forms a part of a plan, or a plan de- 106 (relating to contributions by employer to ‘‘(21) any payment made to or for the bene- scribed in section 403(a), which trust or plan accident and health plans), as amended by fit of an employee if at the time of such pay- is exempt from tax under section 501(a), this Act, is amended by adding at the end ment it is reasonable to believe that the em- ‘‘(B) an individual retirement account de- the following new subsection: ployee will be able to exclude such payment scribed in section 408(a), ‘‘(c) CONTRIBUTIONS TO MEDICAL SAVINGS from income under section 106(c).’’ ‘‘(C) an individual retirement annuity de- ACCOUNTS.— (d) MEDICAL SAVINGS ACCOUNT CONTRIBU- scribed in section 408(b), ‘‘(1) IN GENERAL.—In the case of an employee who is an eligible individual, gross in- TIONS NOT AVAILABLE UNDER CAFETERIA ‘‘(D) a medical savings account described come does not include amounts contributed PLANS.—Subsection (f) of section 125 is in section 220(d), or by such employee’s employer to any medical amended by inserting ‘‘106(c),’’ before ‘‘117’’. ‘‘(E) a trust, plan, account, or annuity savings account of such employee. (e) EXCLUSION OF MEDICAL SAVINGS AC- which, at any time, has been determined by COUNTS FROM ESTATE TAX.—Part IV of sub- ‘‘(2) COORDINATION WITH DEDUCTION LIMITA- the Secretary to be described in any preced- chapter A of chapter 11 is amended by adding TION.—The amount excluded from the gross ing subparagraph of this paragraph.’’ income of an employee under this subsection at the end the following new section: (h) FAILURE TO PROVIDE REPORTS ON MEDI- for any taxable year shall not exceed the ‘‘SEC. 2057. MEDICAL SAVINGS ACCOUNTS. CAL SAVINGS ACCOUNTS.— limitation under section 220(b)(1) (deter- ‘‘For purposes of the tax imposed by sec- (1) Subsection (a) of section 6693 (relating mined without regard to this subsection) tion 2001, the value of the taxable estate to failure to provide reports on individual re- which is applicable to such employee for shall be determined by deducting from the tirement accounts or annuities) is amended such taxable year. value of the gross estate an amount equal to to read as follows: ‘‘(a) REPORTS.— ‘‘(3) NO CONSTRUCTIVE RECEIPT.—No amount the value of any medical savings account (as ‘‘(1) IN GENERAL.—If a person required to shall be included in the gross income of any defined in section 220(d)) included in the file a report under a provision referred to in employee solely because the employee may gross estate.’’ paragraph (2) fails to file such report at the choose between the contributions referred to (f) TAX ON EXCESS CONTRIBUTIONS.—Section time and in the manner required by such in paragraph (1) and employer contributions 4973 (relating to tax on excess contributions provision, such person shall pay a penalty of to another health plan of the employer. to individual retirement accounts, certain $50 for each failure unless it is shown that ‘‘(4) SPECIAL RULE FOR DEDUCTION OF EM- section 403(b) contracts, and certain individ- such failure is due to reasonable cause. PLOYER CONTRIBUTIONS.—Any employer con- ual retirement annuities) is amended— ‘‘(2) PROVISIONS.—The provisions referred tribution to a medical savings account, if (1) by inserting ‘‘medical savings accounts,’’ to in this paragraph are— otherwise allowable as a deduction under after ‘‘accounts,’’ in the heading of such sec- ‘‘(A) subsections (i) and (l) of section 408 this chapter, shall be allowed only for the tion, (relating to individual retirement plans), and taxable year in which paid. (2) by striking ‘‘or’’ at the end of paragraph ‘‘(B) section 220(h) (relating to medical ‘‘(5) DEFINITIONS.—For purposes of this sub- (1) of subsection (a), savings accounts).’’ section, the terms ‘eligible individual’ and (3) by redesignating paragraph (2) of sub- (i) EXCEPTION FROM CAPITALIZATION OF ‘medical savings account’ have the respec- section (a) as paragraph (3) and by inserting POLICY ACQUISITION EXPENSES.—Subpara- tive meanings given to such terms by section after paragraph (1) the following: graph (B) of section 848(e)(1) (defining speci- 220’’. ‘‘(2) a medical savings account (within the fied insurance contract) is amended by strik- (2) EXCLUSION FROM EMPLOYMENT TAXES.— meaning of section 220(d)), or’’, and ing ‘‘and’’ at the end of clause (ii), by strik- (A) SOCIAL SECURITY TAXES.— (4) by adding at the end the following new ing the period at the end of clause (iii) and (i) Subsection (a) of section 3121 is amend- subsection: inserting ‘‘, and’’, and by adding at the end ed by striking ‘‘or’’ at the end of paragraph ‘‘(d) EXCESS CONTRIBUTIONS TO MEDICAL the following new clause: (20), by striking the period at the end of SAVINGS ACCOUNTS.—For purposes of this ‘‘(iv) any contract which is a medical sav- paragraph (21) and inserting ‘‘; or’’, and by section, in the case of a medical savings account (within the meaning of section 220(d)), ings account (as defined in section 220(d)).’’. inserting after paragraph (21) the following LERICAL AMENDMENTS.— the term ‘excess contributions’ means the (j) C new paragraph: (1) The table of sections for part VII of sub- sum of— ‘‘(22) any payment made to or for the bene- chapter B of chapter 1 is amended by strik- ‘‘(1) the amount by which the amount con- fit of an employee if at the time of such paying the last item and inserting the following: ment it is reasonable to believe that the em- tributed for the taxable year to the accounts ployee will be able to exclude such payment (other than rollover contributions described ‘‘Sec. 220. Medical savings accounts. from income under section 106(c).’’ in section 220(f)(5)) exceeds the amount al- ‘‘Sec. 221. Cross reference.’’ lowable as a deduction under section 220 for (ii) Subsection (a) of section 209 of the So- (2) The table of sections for part IV of sub- such contributions, and cial Security Act is amended by striking chapter A of chapter 11 is amended by adding ‘‘(2) the amount determined under this sub- ‘‘or’’ at the end of paragraph (17), by striking at the end the following new item: the period at the end of paragraph (18) and section for the preceding taxable year, re- inserting ‘‘; or’’, and by inserting after para- duced by the sum of distributions out of the ‘‘Sec. 2057. Medical savings accounts.’’. graph (18) the following new paragraph: account included in gross income under sec- (k) EFFECTIVE DATE.—The amendments ‘‘(19) any payment made to or for the bene- tion 220(f) (2) or (3) and the excess (if any) of made by this section shall apply to taxable fit of an employee if at the time of such pay- the maximum amount allowable as a deduc- years beginning after December 31, 1996. ment it is reasonable to believe that the em- tion under section 220 for the taxable year Subtitle D—High-Risk Pools ployee will be able to exclude such payment over the amount contributed to the accounts. SEC. 451. EXEMPTION FROM INCOME TAX FOR from income under section 106(c) of the In- STATE-SPONSORED ORGANIZATIONS ternal Revenue Code of 1986.’’ For purposes of this subsection, any con- PROVIDING HEALTH COVERAGE FOR (B) RAILROAD RETIREMENT TAX.—Sub- tribution which is distributed out of the HIGH-RISK INDIVIDUALS. section (e) of section 3231 is amended by add- medical savings account in a distribution to (a) IN GENERAL.—Subsection (c) of section ing at the end the following new paragraph: which section 220(f)(3) applies shall be treat- 501 (relating to list of exempt organizations) ‘‘(10) MEDICAL SAVINGS ACCOUNT CONTRIBU- ed as an amount not contributed.’’ is amended by adding at the end the follow- TIONS.—The term ‘compensation’ shall not (g) TAX ON PROHIBITED TRANSACTIONS.— ing new paragraph: include any payment made to or for the ben- (1) Section 4975 (relating to tax on prohib- ‘‘(26) Any membership organization if— efit of an employee if at the time of such ited transactions) is amended by adding at ‘‘(A) such organization is established by a payment it is reasonable to believe that the the end of subsection (c) the following new State exclusively to provide coverage for employee will be able to exclude such pay- paragraph: medical care (as defined in section 213(d)) on ment from income under section 106(c).’’ ‘‘(4) SPECIAL RULE FOR MEDICAL SAVINGS AC- a not-for-profit basis to individuals described (C) UNEMPLOYMENT TAX.—Subsection (b) of COUNTS.—An individual for whose benefit a in subparagraph (B) through— section 3306 is amended by striking ‘‘or’’ at medical savings account (within the mean- ‘‘(i) insurance issued by the organization, the end of paragraph (15), by striking the pe- ing of section 220(d)) is established shall be or April 18, 1996 CONGRESSIONAL RECORD — SENATE S3649

‘‘(ii) a health maintenance organization expatriate to which this section applies shall ‘‘(A) IN GENERAL.—For purposes of para- under an arrangement with the organization, be treated as sold on the expatriation date graph (1), the term ‘deferred tax amount’ ‘‘(B) the only individuals receiving such for its fair market value. means, with respect to any property, an coverage through the organization are indi- ‘‘(2) RECOGNITION OF GAIN OR LOSS.—In the amount equal to the sum of— viduals— case of any sale under paragraph (1)— ‘‘(i) the difference between the amount of ‘‘(i) who are residents of such State, and ‘‘(A) notwithstanding any other provision tax paid for the taxable year described in ‘‘(ii) who, by reason of the existence or his- of this title, any gain arising from such sale paragraph (1)(A) and the amount which tory of a medical condition, are unable to ac- shall be taken into account for the taxable would have been paid for such taxable year if quire medical care coverage for such condi- year of the sale unless such gain is excluded the election under paragraph (1) had not ap- tion through insurance or from a health from gross income under part III of sub- plied to such property, plus maintenance organization or are able to ac- chapter B, and ‘‘(ii) an amount of interest on the amount quire such coverage only at a rate which is ‘‘(B) any loss arising from such sale shall described in clause (i) determined for the pe- substantially in excess of the rate for such be taken into account for the taxable year of riod— coverage through the membership organiza- the sale to the extent otherwise provided by ‘‘(I) beginning on the 91st day after the ex- tion, this title, except that section 1091 shall not patriation date, and ‘‘(C) the composition of the membership in apply (and section 1092 shall apply) to any ‘‘(II) ending on the due date for the taxable such organization is specified by such State, such loss. year described in paragraph (1)(B), and ‘‘(3) EXCLUSION FOR CERTAIN GAIN.—The by using the rates and method applicable ‘‘(D) no part of the net earnings of the or- amount which would (but for this paragraph) under section 6621 for underpayments of tax ganization inures to the benefit of any pri- be includible in the gross income of any indi- for such period. vate shareholder or individual.’’. vidual by reason of this section shall be re- For purposes of clause (ii), the due date is (b) EFFECTIVE DATE.—The amendment duced (but not below zero) by $600,000. For the date prescribed by law (determined with- made by this section shall apply to taxable purposes of this paragraph, allocable expa- out regard to extension) for filing the return years beginning after December 31, 1996. triation gain taken into account under sub- of the tax imposed by this chapter for the Subtitle E—Penalty-Free IRA Distributions section (f)(2) shall be treated in the same taxable year. manner as an amount required to be includ- SEC. 461. DISTRIBUTIONS FROM CERTAIN PLANS ‘‘(B) ALLOCATION OF LOSSES.—For purposes MAY BE USED WITHOUT PENALTY TO ible in gross income. of subparagraph (A), any losses described in PAY FINANCIALLY DEVASTATING ‘‘(4) ELECTION TO CONTINUE TO BE TAXED AS subsection (a)(2)(B) shall be allocated rat- MEDICAL EXPENSES. UNITED STATES CITIZEN.— ably among the gains described in subsection (a) IN GENERAL.—Section 72(t)(3)(A) is ‘‘(A) IN GENERAL.—If an expatriate elects (a)(2)(A). amended by striking ‘‘(B),’’. the application of this paragraph— ‘‘(3) SECURITY.— (b) PENALTY-FREE DISTRIBUTIONS FOR PAY- ‘‘(i) this section (other than this para- ‘‘(A) IN GENERAL.—No election may be MENT OF HEALTH INSURANCE PREMIUMS OF graph) shall not apply to the expatriate, but made under paragraph (1) with respect to CERTAIN UNEMPLOYED INDIVIDUALS.—Para- ‘‘(ii) the expatriate shall be subject to tax any property unless adequate security is pro- graph (2) of section 72(t), as amended by sec- under this title, with respect to property to vided with respect to such property. tion 414, is amended by adding at the end the which this section would apply but for such ‘‘(B) ADEQUATE SECURITY.—For purposes of following new subparagraph: election, in the same manner as if the indi- subparagraph (A), security with respect to ‘‘(E) DISTRIBUTIONS TO UNEMPLOYED INDI- vidual were a United States citizen. any property shall be treated as adequate se- VIDUALS FOR HEALTH INSURANCE PREMIUMS.— ‘‘(B) LIMITATION ON AMOUNT OF ESTATE, curity if— Distributions from an individual retirement GIFT, AND GENERATION-SKIPPING TRANSFER ‘‘(i) it is a bond in an amount equal to the plan to an individual after separation from TAXES.—The aggregate amount of taxes im- deferred tax amount under paragraph (2)(A) employment— posed under subtitle B with respect to any for the property, or ‘‘(i) if such individual has received unem- transfer of property by reason of an election ‘‘(ii) the taxpayer otherwise establishes to ployment compensation for 12 consecutive under subparagraph (A) shall not exceed the the satisfaction of the Secretary that the se- weeks under any Federal or State unemploy- amount of income tax which would be due if curity is adequate. ment compensation law by reason of such the property were sold for its fair market ‘‘(4) WAIVER OF CERTAIN RIGHTS.—No elec- separation, value immediately before the time of the tion may be made under paragraph (1) unless ‘‘(ii) if such distributions are made during transfer or death (taking into account the the taxpayer consents to the waiver of any any taxable year during which such unem- rules of paragraph (2)). right under any treaty of the United States ployment compensation is paid or the suc- ‘‘(C) REQUIREMENTS.—Subparagraph (A) which would preclude assessment or collec- ceeding taxable year, and shall not apply to an individual unless the tion of any tax imposed by reason of this sec- ‘‘(iii) to the extent such distributions do individual— tion. not exceed the amount paid during the tax- ‘‘(i) provides security for payment of tax in ‘‘(5) DISPOSITIONS.—For purposes of this able year for insurance described in section such form and manner, and in such amount, subsection, a taxpayer making an election 213(d)(1)(D) with respect to the individual as the Secretary may require, under this subsection with respect to any and the individual’s spouse and dependents ‘‘(ii) consents to the waiver of any right of property shall be treated as having disposed (as defined in section 152). the individual under any treaty of the Unit- of such property— ed States which would preclude assessment To the extent provided in regulations, a self- ‘‘(A) immediately before death if such or collection of any tax which may be im- employed individual shall be treated as property is held at such time, and posed by reason of this paragraph, and meeting the requirements of clause (i) if, ‘‘(B) at any time the security provided ‘‘(iii) complies with such other require- under Federal or State law, the individual with respect to the property fails to meet ments as the Secretary may prescribe. would have received unemployment com- the requirements of paragraph (3) and the ‘‘(D) ELECTION.—An election under sub- pensation but for the fact the individual was taxpayer does not correct such failure within paragraph (A) shall apply to all property to self-employed.’’. the time specified by the Secretary. which this section would apply but for the (c) CONFORMING AMENDMENT.—Subpara- ‘‘(6) ELECTIONS.—An election under paragraph (B) of section 72(t)(2), as amended by election and, once made, shall be irrev- graph (1) shall only apply to property de- section 414, is amended by striking ‘‘or (D)’’ ocable. Such election shall also apply to scribed in the election and, once made, is ir- and inserting ‘‘, (D), or (E)’’. property the basis of which is determined in revocable. An election may be under para- whole or in part by reference to the property (d) EFFECTIVE DATE.—The amendments graph (1) with respect to an interest in a made by this section shall apply to taxable with respect to which the election was made. trust with respect to which gain is required years beginning after December 31, 1996. ‘‘(b) ELECTION TO DEFER TAX.— to be recognized under subsection (f)(1). ‘‘(1) IN GENERAL.—If the taxpayer elects the ‘‘(c) COVERED EXPATRIATE.—For purposes Subtitle F—Revenue Offsets application of this subsection with respect to of this section— CHAPTER 1—Treatment of Individuals Who any property— ‘‘(1) IN GENERAL.—The term ‘covered expa- Expatriate ‘‘(A) no amount shall be required to be in- triate’ means an expatriate— SEC. 471. REVISION OF TAX RULES ON EXPATRIA- cluded in gross income under subsection ‘‘(A) whose average annual net income tax TION. (a)(1) with respect to the gain from such (as defined in section 38(c)(1)) for the period (a) IN GENERAL.—Subpart A of part II of property for the taxable year of the sale, but of 5 taxable years ending before the expatria- subchapter N of chapter 1 is amended by in- ‘‘(B) the taxpayer’s tax for the taxable tion date is greater than $100,000, or serting after section 877 the following new year in which such property is disposed of ‘‘(B) whose net worth as of such date is section: shall be increased by the deferred tax $500,000 or more. ‘‘SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIA- amount with respect to the property. If the expatriation date is after 1996, such TION. Except to the extent provided in regulations, $100,000 and $500,000 amounts shall be in- ‘‘(a) GENERAL RULES.—For purposes of this subparagraph (B) shall apply to a disposition creased by an amount equal to such dollar subtitle— whether or not gain or loss is recognized in amount multiplied by the cost-of-living ad- ‘‘(1) MARK TO MARKET.—Except as provided whole or in part on the disposition. justment determined under section 1(f)(3) for in subsection (f), all property of a covered ‘‘(2) DEFERRED TAX AMOUNT.— such calendar year by substituting ‘1995’ for S3650 CONGRESSIONAL RECORD — SENATE April 18, 1996

‘1992’ in subparagraph (B) thereof. Any in- ‘‘(3) RELINQUISHMENT OF CITIZENSHIP.—A ‘‘(ii) in addition to any other tax imposed crease under the preceding sentence shall be citizen shall be treated as relinquishing his by this title, there is hereby imposed on each rounded to the nearest multiple of $1,000. United States citizenship on the earliest of— distribution with respect to such interest a ‘‘(2) EXCEPTIONS.—An individual shall not ‘‘(A) the date the individual renounces his tax in the amount determined under sub- be treated as a covered expatriate if— United States nationality before a diplo- paragraph (B). ‘‘(A) the individual— matic or consular officer of the United ‘‘(B) AMOUNT OF TAX.—The amount of tax ‘‘(i) became at birth a citizen of the United States pursuant to paragraph (5) of section under subparagraph (A)(ii) shall be equal to States and a citizen of another country and, 349(a) of the Immigration and Nationality the lesser of— as of the expatriation date, continues to be a Act (8 U.S.C. 1481(a)(5)), ‘‘(i) the highest rate of tax imposed by sec- citizen of, and is taxed as a resident of, such ‘‘(B) the date the individual furnishes to tion 1(e) for the taxable year in which the ex- other country, and the United States Department of State a patriation date occurs, multiplied by the ‘‘(ii) has been a resident of the United signed statement of voluntary relinquish- amount of the distribution, or States (as defined in section 7701(b)(1)(A)(ii)) ment of United States nationality confirm- ‘‘(ii) the balance in the deferred tax ac- for not more than 8 taxable years during the ing the performance of an act of expatriation count immediately before the distribution 15-taxable year period ending with the tax- specified in paragraph (1), (2), (3), or (4) of determined without regard to any increases able year during which the expatriation date section 349(a) of the Immigration and Na- under subparagraph (C)(ii) after the 30th day occurs, or tionality Act (8 U.S.C. 1481(a)(1)–(4)), preceding the distribution. ‘‘(B)(i) the individual’s relinquishment of ‘‘(C) the date the United States Depart- ‘‘(C) DEFERRED TAX ACCOUNT.—For purposes United States citizenship occurs before such ment of State issues to the individual a cer- of subparagraph (B)(ii)— individual attains age 181⁄2, and tificate of loss of nationality, or ‘‘(i) OPENING BALANCE.—The opening bal- ‘‘(ii) the individual has been a resident of ‘‘(D) the date a court of the United States ance in a deferred tax account with respect the United States (as so defined) for not cancels a naturalized citizen’s certificate of to any trust interest is an amount equal to more than 5 taxable years before the date of naturalization. the tax which would have been imposed on relinquishment. the allocable expatriation gain with respect Subparagraph (A) or (B) shall not apply to ‘‘(d) PROPERTY TO WHICH SECTION AP- to the trust interest if such gain had been in- any individual unless the renunciation or PLIES.—For purposes of this section— cluded in gross income under subsection (a). voluntary relinquishment is subsequently ‘‘(1) IN GENERAL.—Except as otherwise pro- ‘‘(ii) INCREASE FOR INTEREST.—The balance vided by the Secretary, this section shall approved by the issuance to the individual of in the deferred tax account shall be in- apply to— a certificate of loss of nationality by the creased by the amount of interest deter- ‘‘(A) any interest in property held by a United States Department of State. mined (on the balance in the account at the covered expatriate on the expatriation date ‘‘(4) LONG-TERM RESIDENT.— time the interest accrues), for periods after the gain from which would be includible in ‘‘(A) IN GENERAL.—The term ‘long-term the 90th day after the expatriation date, by the gross income of the expatriate if such in- resident’ means any individual (other than a using the rates and method applicable under terest had been sold for its fair market value citizen of the United States) who is a lawful section 6621 for underpayments of tax for on such date in a transaction in which gain permanent resident of the United States in such periods. is recognized in whole or in part, and at least 8 taxable years during the period of ‘‘(iii) DECREASE FOR TAXES PREVIOUSLY ‘‘(B) any other interest in a trust to which 15 taxable years ending with the taxable year PAID.—The balance in the tax deferred ac- subsection (f) applies. during which the expatriation date occurs. count shall be reduced— ‘‘(2) EXCEPTIONS.—This section shall not For purposes of the preceding sentence, an ‘‘(I) by the amount of taxes imposed by apply to the following property: individual shall not be treated as a lawful subparagraph (A) on any distribution to the ‘‘(A) UNITED STATES REAL PROPERTY INTER- permanent resident for any taxable year if person holding the trust interest, and ESTS.—Any United States real property in- such individual is treated as a resident of a ‘‘(II) in the case of a person holding a non- terest (as defined in section 897(c)(1)), other foreign country for the taxable year under vested interest, to the extent provided in than stock of a United States real property the provisions of a tax treaty between the regulations, by the amount of taxes imposed holding corporation which does not, on the United States and the foreign country and by subparagraph (A) on distributions from expatriation date, meet the requirements of does not waive the benefits of such treaty the trust with respect to nonvested interests section 897(c)(2). applicable to residents of the foreign coun- not held by such person. ‘‘(B) INTEREST IN CERTAIN RETIREMENT try. ‘‘(D) ALLOCABLE EXPATRIATION GAIN.—For PLANS.— ‘‘(B) SPECIAL RULE.—For purposes of sub- purposes of this paragraph, the allocable ex- ‘‘(i) IN GENERAL.—Any interest in a quali- paragraph (A), there shall not be taken into patriation gain with respect to any bene- fied retirement plan (as defined in section account— ficiary’s interest in a trust is the amount of 4974(c)), other than any interest attributable ‘‘(i) any taxable year during which any gain which would be allocable to such bene- to contributions which are in excess of any prior sale is treated under subsection (a)(1) ficiary’s vested and nonvested interests in limitation or which violate any condition for as occurring, or the trust if the beneficiary held directly all tax-favored treatment. ‘‘(ii) any taxable year prior to the taxable assets allocable to such interests. ‘‘(ii) FOREIGN PENSION PLANS.— year referred to in clause (i). ‘‘(E) TAX DEDUCTED AND WITHHELD.— ‘‘(I) IN GENERAL.—Under regulations pre- ‘‘(f) SPECIAL RULES APPLICABLE TO BENE- ‘‘(i) IN GENERAL.—The tax imposed by sub- scribed by the Secretary, interests in foreign FICIARIES’ INTERESTS IN TRUST.— paragraph (A)(ii) shall be deducted and with- pension plans or similar retirement arrange- ‘‘(1) IN GENERAL.—Except as provided in held by the trustees from the distribution to ments or programs. paragraph (2), if an individual is determined which it relates. ‘‘(II) LIMITATION.—The value of property under paragraph (3) to hold an interest in a ‘‘(ii) EXCEPTION WHERE FAILURE TO WAIVE which is treated as not sold by reason of this trust— TREATY RIGHTS.—If an amount may not be subparagraph shall not exceed $500,000. ‘‘(A) the individual shall not be treated as deducted and withheld under clause (i) by ‘‘(e) DEFINITIONS.—For purposes of this sec- having sold such interest, reason of the distributee failing to waive any tion— ‘‘(B) such interest shall be treated as a sep- treaty right with respect to such distribu- ‘‘(1) EXPATRIATE.—The term ‘expatriate’ arate share in the trust, and tion— means— ‘‘(C)(i) such separate share shall be treated ‘‘(I) the tax imposed by subparagraph ‘‘(A) any United States citizen who relin- as a separate trust consisting of the assets (A)(ii) shall be imposed on the trust and each quishes his citizenship, or allocable to such share, trustee shall be personally liable for the ‘‘(B) any long-term resident of the United ‘‘(ii) the separate trust shall be treated as amount of such tax, and States who— having sold its assets immediately before the ‘‘(II) any other beneficiary of the trust ‘‘(i) ceases to be a lawful permanent resi- expatriation date for their fair market value shall be entitled to recover from the dis- dent of the United States (within the mean- and as having distributed all of its assets to tributee the amount of such tax imposed on ing of section 7701(b)(6)), or the individual as of such time, and the other beneficiary. ‘‘(ii) commences to be treated as a resident ‘‘(iii) the individual shall be treated as ‘‘(F) DISPOSITION.—If a trust ceases to be a of a foreign country under the provisions of having recontributed the assets to the sepa- qualified trust at any time, a covered expa- a tax treaty between the United States and rate trust. triate disposes of an interest in a qualified the foreign country and who does not waive Subsection (a)(2) shall apply to any income, trust, or a covered expatriate holding an in- the benefits of such treaty applicable to resi- gain, or loss of the individual arising from a terest in a qualified trust dies, then, in lieu dents of the foreign country. distribution described in subparagraph of the tax imposed by subparagraph (A)(ii), ‘‘(2) EXPATRIATION DATE.—The term ‘expa- (C)(ii). there is hereby imposed a tax equal to the triation date’ means— ‘‘(2) SPECIAL RULES FOR INTERESTS IN QUALI- lesser of— ‘‘(A) the date an individual relinquishes FIED TRUSTS.— ‘‘(i) the tax determined under paragraph (1) United States citizenship, or ‘‘(A) IN GENERAL.—If the trust interest de- as if the expatriation date were the date of ‘‘(B) in the case of a long-term resident of scribed in paragraph (1) is an interest in a such cessation, disposition, or death, which- the United States, the date of the event de- qualified trust— ever is applicable, or scribed in clause (i) or (ii) of paragraph ‘‘(i) paragraph (1) and subsection (a) shall ‘‘(ii) the balance in the tax deferred ac- (1)(B). not apply, and count immediately before such date. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3651 Such tax shall be imposed on the trust and short taxable year ending on the expatria- (within the meaning of section 877A(e)(3)) each trustee shall be personally liable for the tion date. United States citizenship on or after Feb- amount of such tax and any other bene- ‘‘(2) DUE DATE.—The due date for any tax ruary 6, 1995.’’. ficiary of the trust shall be entitled to re- imposed by paragraph (1) shall be the 90th (2) Section 2107(c) is amended by adding at cover from the covered expatriate or the es- day after the expatriation date. the end the following new paragraph: tate the amount of such tax imposed on the ‘‘(3) TREATMENT OF TAX.—Any tax paid ‘‘(3) CROSS REFERENCE.—For credit against other beneficiary. under paragraph (1) shall be treated as a pay- the tax imposed by subsection (a) for expa- ‘‘(G) DEFINITIONS AND SPECIAL RULE.—For ment of the tax imposed by this chapter for triation tax, see section 877A(i).’’. purposes of this paragraph— the taxable year to which subsection (a) ap- (3) Section 2501(a)(3) is amended by adding ‘‘(i) QUALIFIED TRUST.—The term ‘qualified plies. at the end the following new flush sentence: trust’ means a trust— ‘‘(4) DEFERRAL OF TAX.—The provisions of ‘‘For credit against the tax imposed under ‘‘(I) which is organized under, and governed subsection (b) shall apply to the tax imposed this section by reason of this paragraph, see by, the laws of the United States or a State, by this subsection to the extent attributable section 877A(i).’’. and to gain includible in gross income by reason (4) Paragraph (10) of section 7701(b) is ‘‘(II) with respect to which the trust in- of this section. amended by adding at the end the following strument requires that at least 1 trustee of ‘‘(i) COORDINATION WITH ESTATE AND GIFT new sentence: ‘‘This paragraph shall not the trust be an individual citizen of the Unit- TAXES.—If subsection (a) applies to property apply to any long-term resident of the Unit- ed States or a domestic corporation. held by an individual for any taxable year ed States who is an expatriate (as defined in ‘‘(ii) VESTED INTEREST.—The term ‘vested and— section 877A(e)(1)).’’. interest’ means any interest which, as of the ‘‘(1) such property is includible in the gross (e) CLERICAL AMENDMENT.—The table of expatriation date, is vested in the bene- estate of such individual solely by reason of sections for subpart A of part II of sub- ficiary. section 2107, or chapter N of chapter 1 is amended by insert- ‘‘(iii) NONVESTED INTEREST.—The term ‘‘(2) section 2501 applies to a transfer of ing after the item relating to section 877 the ‘nonvested interest’ means, with respect to such property by such individual solely by following new item: any beneficiary, any interest in a trust reason of section 2501(a)(3), ‘‘Sec. 877A. Tax responsibilities of expatria- which is not a vested interest. Such interest then there shall be allowed as a credit tion.’’. shall be determined by assuming the maxi- against the additional tax imposed by sec- (f) EFFECTIVE DATE.— mum exercise of discretion in favor of the tion 2101 or 2501, whichever is applicable, (1) IN GENERAL.—Except as provided in this beneficiary and the occurrence of all contin- solely by reason of section 2107 or 2501(a)(3) subsection, the amendments made by this gencies in favor of the beneficiary. an amount equal to the increase in the tax section shall apply to expatriates (within the ‘‘(iv) ADJUSTMENTS.—The Secretary may imposed by this chapter for such taxable meaning of section 877A(e) of the Internal provide for such adjustments to the bases of year by reason of this section. Revenue Code of 1986, as added by this sec- assets in a trust or a deferred tax account, ‘‘(j) REGULATIONS.—The Secretary shall tion) whose expatriation date (as so defined) and the timing of such adjustments, in order prescribe such regulations as may be nec- occurs on or after February 6, 1995. to ensure that gain is taxed only once. essary or appropriate to carry out the pur- (2) GIFTS AND BEQUESTS.—Section 102(d) of ‘‘(3) DETERMINATION OF BENEFICIARIES’ IN- poses of this section, including regulations— the Internal Revenue Code of 1986 (as added TEREST IN TRUST.— ‘‘(1) to prevent double taxation by ensuring by subsection (b)) shall apply to amounts re- ‘‘(A) DETERMINATIONS UNDER PARAGRAPH that— ceived from expatriates (as so defined) whose (1).—For purposes of paragraph (1), a bene- ‘‘(A) appropriate adjustments are made to expatriation date (as so defined) occurs on ficiary’s interest in a trust shall be based basis to reflect gain recognized by reason of and after February 6, 1995. upon all relevant facts and circumstances, subsection (a) and the exclusion provided by (3) SPECIAL RULES RELATING TO CERTAIN including the terms of the trust instrument subsection (a)(3), and ACTS OCCURRING BEFORE FEBRUARY 6, 1995.—In and any letter of wishes or similar docu- ‘‘(B) any gain by reason of a deemed sale the case of an individual who took an act of ment, historical patterns of trust distribu- under subsection (a) of an interest in a cor- expatriation specified in paragraph (1), (2), tions, and the existence of and functions per- poration, partnership, trust, or estate is re- (3), or (4) of section 349(a) of the Immigration formed by a trust protector or any similar duced to reflect that portion of such gain and Nationality Act (8 U.S.C. 1481(a) (1)–(4)) advisor. which is attributable to an interest in a before February 6, 1995, but whose expatria- ‘‘(B) OTHER DETERMINATIONS.—For purposes trust which a shareholder, partner, or bene- tion date (as so defined) occurs after Feb- of this section— ficiary is treated as holding directly under ruary 6, 1995— ‘‘(i) CONSTRUCTIVE OWNERSHIP.—If a bene- subsection (f)(3)(B)(i), and (A) the amendment made by subsection (c) ficiary of a trust is a corporation, partner- ‘‘(2) which provide for the proper allocation shall not apply, ship, trust, or estate, the shareholders, part- of the exclusion under subsection (a)(3) to (B) the amendment made by subsection ners, or beneficiaries shall be deemed to be property to which this section applies. (d)(1) shall not apply for any period prior to the trust beneficiaries for purposes of this ‘‘(k) CROSS REFERENCE.— the expatriation date, and section. ‘‘For income tax treatment of individuals (C) the other amendments made by this ‘‘(ii) TAXPAYER RETURN POSITION.—A tax- who terminate United States citizenship, see section shall apply as of the expatriation payer shall clearly indicate on its income section 7701(a)(47).’’. date. tax return— (b) INCLUSION IN INCOME OF GIFTS AND IN- (4) DUE DATE FOR TENTATIVE TAX.—The due ‘‘(I) the methodology used to determine HERITANCES FROM COVERED EXPATRIATES.— date under section 877A(h)(2) of such Code that taxpayer’s trust interest under this sec- Section 102 (relating to gifts, etc. not in- shall in no event occur before the 90th day tion, and cluded in gross income) is amended by add- after the date of the enactment of this Act. ‘‘(II) if the taxpayer knows (or has reason ing at the end the following new subsection: SEC. 472. INFORMATION ON INDIVIDUALS EXPA- to know) that any other beneficiary of such ‘‘(d) GIFTS AND INHERITANCES FROM COV- TRIATING. trust is using a different methodology to de- ERED EXPATRIATES.—Subsection (a) shall not (a) IN GENERAL.—Subpart A of part III of termine such beneficiary’s trust interest exclude from gross income the value of any subchapter A of chapter 61 is amended by in- under this section. property acquired by gift, bequest, devise, or serting after section 6039E the following new ‘‘(g) TERMINATION OF DEFERRALS, ETC.—On inheritance from a covered expatriate after section: the date any property held by an individual the expatriation date. For purposes of this ‘‘SEC. 6039F. INFORMATION ON INDIVIDUALS EX- is treated as sold under subsection (a), not- subsection, any term used in this subsection PATRIATING. withstanding any other provision of this which is also used in section 877A shall have ‘‘(a) REQUIREMENT.— title— the same meaning as when used in section ‘‘(1) IN GENERAL.—Notwithstanding any ‘‘(1) any period during which recognition of 877A.’’. other provision of law, any expatriate (with- income or gain is deferred shall terminate, (c) DEFINITION OF TERMINATION OF UNITED in the meaning of section 877A(e)(1)) shall and STATES CITIZENSHIP.—Section 7701(a) is provide a statement which includes the in- ‘‘(2) any extension of time for payment of amended by adding at the end the following formation described in subsection (b). tax shall cease to apply and the unpaid por- new paragraph: ‘‘(2) TIMING.— tion of such tax shall be due and payable at ‘‘(47) TERMINATION OF UNITED STATES CITI- ‘‘(A) CITIZENS.—In the case of an expatriate the time and in the manner prescribed by the ZENSHIP.—An individual shall not cease to be described in section 877(e)(1)(A), such state- Secretary. treated as a United States citizen before the ment shall be— ‘‘(h) IMPOSITION OF TENTATIVE TAX.— date on which the individual’s citizenship is ‘‘(i) provided not later than the expatria- ‘‘(1) IN GENERAL.—If an individual is re- treated as relinquished under section tion date (within the meaning of section quired to include any amount in gross in- 877A(e)(3).’’. 877A(e)(2)), and come under subsection (a) for any taxable (d) CONFORMING AMENDMENTS.— ‘‘(ii) provided to the person or court re- year, there is hereby imposed, immediately (1) Section 877 is amended by adding at the ferred to in section 877A(e)(3). before the expatriation date, a tax in an end the following new subsection: ‘‘(B) NONCITIZENS.—In the case of an expa- amount equal to the amount of tax which ‘‘(f) APPLICATION.—This section shall not triate described in section 877A(e)(1)(B), such would be imposed if the taxable year were a apply to any individual who relinquishes statement shall be provided to the Secretary S3652 CONGRESSIONAL RECORD — SENATE April 18, 1996 with the return of tax imposed by chapter 1 SEC. 473. REPORT ON TAX COMPLIANCE BY UNIT- mined after the application of clause (i) of for the taxable year during which the event ED STATES CITIZENS AND RESI- this subparagraph). DENTS LIVING ABROAD. described in such section occurs. The preceding sentence shall not apply for Not later than 90 days after the date of the ‘‘(b) INFORMATION TO BE PROVIDED.—Infor- purposes of paragraphs (5) and (6) or sub- enactment of this Act, the Secretary of the mation required under subsection (a) shall section (e)(1). include— Treasury shall prepare and submit to the ‘‘(3) RECAPTURE OF PRE-1988 RESERVES ‘‘(1) the taxpayer’s TIN, Committee on Ways and Means of the House WHERE TAXPAYER CEASES TO BE BANK.—If, of Representatives and the Committee on Fi- ‘‘(2) the mailing address of such individ- during any taxable year beginning after De- nance of the Senate a report— ual’s principal foreign residence, cember 31, 1995, a taxpayer to which para- (1) describing the compliance with subtitle ‘‘(3) the foreign country in which such indi- graph (1) applied is not a bank (as defined in A of the Internal Revenue Code of 1986 by vidual is residing, section 581), paragraph (1) shall apply to the citizens and lawful permanent residents of ‘‘(4) the foreign country of which such indi- reserves described in paragraph (2)(A)(ii) and the United States (within the meaning of vidual is a citizen, the supplemental reserve; except that such section 7701(b)(6) of such Code) residing out- ‘‘(5) in the case of an individual having a reserves shall be taken into account ratably side the United States, and net worth of at least the dollar amount ap- over the 6-taxable year period beginning (2) recommending measures to improve plicable under section 877A(c)(1)(B), informa- with such taxable year. tion detailing the assets and liabilities of such compliance (including improved coordi- ‘‘(4) SUSPENSION OF RECAPTURE IF RESIDEN- such individual, and nation between executive branch agencies). TIAL LOAN REQUIREMENT MET.— ‘‘(6) such other information as the Sec- CHAPTER 2—REPEAL OF BAD DEBT RE- ‘‘(A) IN GENERAL.—In the case of a bank retary may prescribe. SERVE METHOD FOR THRIFT SAVINGS which meets the residential loan require- ‘‘(c) PENALTY.—Any individual failing to ASSOCIATIONS ment of subparagraph (B) for the first tax- provide a statement required under sub- able year beginning after December 31, 1995, section (a) shall be subject to a penalty for SEC. 481. REPEAL OF BAD DEBT RESERVE METH- each year during any portion of which such OD FOR THRIFT SAVINGS ASSOCIA- or for the following taxable year— TIONS. failure continues in an amount equal to the ‘‘(i) no adjustment shall be taken into ac- greater of— (a) IN GENERAL.—Section 593 (relating to count under paragraph (1) for such taxable ‘‘(1) 5 percent of the additional tax re- reserves for losses on loans) is amended by year, and quired to be paid under section 877A for such adding at the end the following new sub- ‘‘(ii) such taxable year shall be disregarded year, or sections: in determining— ‘‘(2) $1,000, ‘‘(f) TERMINATION OF RESERVE METHOD.— ‘‘(I) whether any other taxable year is a Subsections (a), (b), (c), and (d) shall not taxable year for which an adjustment is re- unless it is shown that such failure is due to apply to any taxable year beginning after quired to be taken into account under para- reasonable cause and not to willful neglect. December 31, 1995. graph (1), and ‘‘(d) INFORMATION TO BE PROVIDED TO SEC- ‘‘(g) 6-YEAR SPREAD OF ADJUSTMENTS.— ‘‘(II) the amount of such adjustment. RETARY.—Notwithstanding any other provision of law— ‘‘(1) IN GENERAL.—In the case of any tax- ‘‘(B) RESIDENTIAL LOAN REQUIREMENT.—A ‘‘(1) any Federal agency or court which col- payer who is required by reason of sub- taxpayer meets the residential loan require- lects (or is required to collect) the statement section (f) to change its method of comput- ment of this subparagraph for any taxable under subsection (a) shall provide to the Sec- ing reserves for bad debts— year if the principal amount of the residen- retary— ‘‘(A) such change shall be treated as a tial loans made by the taxpayer during such ‘‘(A) a copy of any such statement, and change in a method of accounting, year is not less than the base amount for ‘‘(B) the name (and any other identifying ‘‘(B) such change shall be treated as initi- such year. information) of any individual refusing to ated by the taxpayer and as having been ‘‘(C) RESIDENTIAL LOAN.—For purposes of comply with the provisions of subsection (a), made with the consent of the Secretary, and this paragraph, the term ‘residential loan’ ‘‘(2) the Secretary of State shall provide to ‘‘(C) the net amount of the adjustments re- means any loan described in clause (v) of sec- the Secretary a copy of each certificate as to quired to be taken into account by the tax- tion 7701(a)(19)(C) but only if such loan is in- the loss of American nationality under sec- payer under section 481(a)— curred in acquiring, constructing, or improv- tion 358 of the Immigration and Nationality ‘‘(i) shall be determined by taking into ac- ing the property described in such clause. Act which is approved by the Secretary of count only applicable excess reserves, and ‘‘(D) BASE AMOUNT.—For purposes of sub- State, and ‘‘(ii) as so determined, shall be taken into paragraph (B), the base amount is the aver- ‘‘(3) the Federal agency primarily respon- account ratably over the 6-taxable year pe- age of the principal amounts of the residen- sible for administering the immigration laws riod beginning with the first taxable year be- tial loans made by the taxpayer during the 6 shall provide to the Secretary the name of ginning after December 31, 1995. most recent taxable years beginning on or each lawful permanent resident of the United ‘‘(2) APPLICABLE EXCESS RESERVES.— before December 31, 1995. At the election of States (within the meaning of section ‘‘(A) IN GENERAL.—For purposes of para- the taxpayer who made such loans during 7701(b)(6)) whose status as such has been re- graph (1), the term ‘applicable excess re- each of such 6 taxable years, the preceding voked or has been administratively or judi- serves’ means the excess (if any) of— sentence shall be applied without regard to cially determined to have been abandoned. ‘‘(i) the balance of the reserves described in the taxable year in which such principal subsection (c)(1) (other than the supple- amount was the highest and the taxable year Notwithstanding any other provision of law, mental reserve) as of the close of the tax- in such principal amount was the lowest. not later than 30 days after the close of each payer’s last taxable year beginning before Such an election may be made only for the calendar quarter, the Secretary shall publish in the Federal Register the name of each in- January 1, 1996, over first taxable year beginning after such date, dividual relinquishing United States citizen- ‘‘(ii) the lesser of— and, if made for such taxable year, shall ship (within the meaning of section ‘‘(I) the balance of such reserves as of the apply to the succeeding taxable year unless 877A(e)(3)) with respect to whom the Sec- close of the taxpayer’s last taxable year be- revoked with the consent of the Secretary. retary receives information under the pre- ginning before January 1, 1988, or ‘‘(E) CONTROLLED GROUPS.—In the case of a ceding sentence during such quarter. ‘‘(II) the balance of the reserves described taxpayer which is a member of any con- ‘‘(e) EXEMPTION.—The Secretary may by in subclause (I), reduced in the same manner trolled group of corporations described in regulations exempt any class of individuals as under section 585(b)(2)(B)(ii) on the basis section 1563(a)(1), subparagraph (B) shall be from the requirements of this section if the of the taxable years described in clause (i) applied with respect to such group. Secretary determines that applying this sec- and this clause. ‘‘(5) CONTINUED APPLICATION OF FRESH tion to such individuals is not necessary to ‘‘(B) SPECIAL RULE FOR THRIFTS WHICH BE- START UNDER SECTION 585 TRANSITIONAL carry out the purposes of this section.’’. COME SMALL BANKS.—In the case of a bank (as RULES.—In the case of a taxpayer to which (b) CLERICAL AMENDMENT.—The table of defined in section 581) which was not a large paragraph (1) applied and which was not a sections for such subpart A is amended by in- bank (as defined in section 585(c)(2)) for its large bank (as defined in section 585(c)(2)) for serting after the item relating to section first taxable year beginning after December its first taxable year beginning after Decem- 6039E the following new item: 31, 1995— ber 31, 1995: ‘‘Sec. 6039F. Information on individuals expa- ‘‘(i) the balance taken into account under ‘‘(A) IN GENERAL.—For purposes of deter- triating.’’. subparagraph (A)(ii) shall not be less than mining the net amount of adjustments re- (c) EFFECTIVE DATE.—The amendments the amount which would be the balance of ferred to in section 585(c)(3)(A)(iii), there made by this section shall apply to individ- such reserves as of the close of its last tax- shall be taken into account only the excess uals to whom section 877A of the Internal able year beginning before such date if the (if any) of the reserve for bad debts as of the Revenue Code of 1986 applies and whose expa- additions to such reserves for all taxable close of the last taxable year before the dis- triation date (as defined in section years had been determined under section qualification year over the balance taken 877A(e)(2)) occurs on or after February 6, 585(b)(2)(A), and into account by such taxpayer under para- 1995, except that no statement shall be re- ‘‘(ii) the opening balance of the reserve for graph (2)(A)(ii) of this subsection. quired by such amendments before the 90th bad debts as of the beginning of such first ‘‘(B) TREATMENT UNDER ELECTIVE CUT-OFF day after the date of the enactment of this taxable year shall be the balance taken into METHOD.—For purposes of applying section Act. account under subparagraph (A)(ii) (deter- 585(c)(4)— April 18, 1996 CONGRESSIONAL RECORD — SENATE S3653 ‘‘(i) the balance of the reserve taken into group (as defined in section 1504) and the pro- individual by the Social Security Adminis- account under subparagraph (B) thereof shall visions of section 5(e) of the Federal Deposit tration (other than a social security number be reduced by the balance taken into ac- Insurance Act (as in effect on December 31, issued pursuant to clause (II) (or that por- count by such taxpayer under paragraph 1995) or similar provisions are in effect.’’ tion of clause (III) that relates to clause (II)) (2)(A)(ii) of this subsection, and (8) Section 595 is hereby repealed. of section 205(c)(2)(B)(i) of the Social Secu- ‘‘(ii) no amount shall be includible in gross (9) Section 596 is hereby repealed. rity Act).’’. income by reason of such reduction. (10) Subsection (a) of section 860E is (c) EXTENSION OF PROCEDURES APPLICABLE ‘‘(6) SUSPENDED RESERVE INCLUDED AS SEC- amended— TO MATHEMATICAL OR CLERICAL ERRORS.— TION 381(c) ITEMS.—The balance taken into ac- (A) by striking ‘‘Except as provided in Section 6213(g)(2) (relating to the definition count by a taxpayer under paragraph paragraph (2), the’’ in paragraph (1) and in- of mathematical or clerical errors) is amend- (2)(A)(ii) of this subsection and the supple- serting ‘‘The’’, ed by striking ‘‘and’’ at the end of subpara- mental reserve shall be treated as items de- (B) by striking paragraphs (2) and (4) and graph (D), by striking the period at the end scribed in section 381(c). redesignating paragraphs (3) and (5) as para- of subparagraph (E) and inserting a comma, ‘‘(7) CONVERSIONS TO CREDIT UNIONS.—In the graphs (2) and (3), respectively, and and by inserting after subparagraph (E) the case of a taxpayer to which paragraph (1) ap- (C) by striking in paragraph (2) (as so re- following new subparagraphs: plied which becomes a credit union described designated) all that follows ‘‘subsection’’ and ‘‘(F) an omission of a correct taxpayer in section 501(c) and exempt from taxation inserting a period. identification number required under section under section 501(a)— (11) Paragraph (3) of section 992(d) is 32 (relating to the earned income credit) to ‘‘(A) any amount required to be included in amended by striking ‘‘or 593’’. be included on a return, and the gross income of the credit union by rea- (12) Section 1038 is amended by striking ‘‘(G) an entry on a return claiming the son of this subsection shall be treated as de- subsection (f). credit under section 32 with respect to net rived from an unrelated trade or business (as (13) Clause (ii) of section 1042(c)(4)(B) is earnings from self-employment described in defined in section 513), and amended by striking ‘‘or 593’’. section 32(c)(2)(A) to the extent the tax im- ‘‘(B) for purposes of paragraph (3), the cred- (14) Subsection (c) of section 1277 is amend- posed by section 1401 (relating to self-em- it union shall not be treated as if it were a ed by striking ‘‘or to which section 593 ap- ployment tax) on such net earnings has not bank. plies’’. been paid.’’. ‘‘(8) REGULATIONS.—The Secretary shall (15) Subparagraph (B) of section 1361(b)(2) (d) EFFECTIVE DATE.—The amendments prescribe such regulations as may be nec- is amended by striking ‘‘or to which section made by this section shall apply to taxable essary to carry out this subsection and sub- 593 applies’’. years beginning after December 31, 1995. section (e), including regulations providing (16) The table of sections for part II of sub- CHAPTER 4—COMPANY-OWNED for the application of such subsections in the chapter H of chapter 1 is amended by strik- INSURANCE case of acquisitions, mergers, spin-offs, and ing the items relating to sections 595 and 596. SEC. 495. DENIAL OF DEDUCTION FOR INTEREST other reorganizations.’’. (c) EFFECTIVE DATES.— ON LOANS WITH RESPECT TO COM- (b) CONFORMING AMENDMENTS.— (1) IN GENERAL.—Except as otherwise pro- PANY-OWNED INSURANCE. (1) Subsection (d) of section 50 is amended vided in this subsection, the amendments (a) IN GENERAL.—Paragraph (4) of section by adding at the end the following new sen- made by this section shall apply to taxable 264(a) is amended— tence: years beginning after December 31, 1995. (1) by inserting ‘‘, or any endowment or an- ‘‘Paragraphs (1)(A), (2)(A), and (4) of the sec- (2) SUBSECTION (b)(7)(B).—The amendments nuity contracts owned by the taxpayer cov- tion 46(e) referred to in paragraph (1) of this made by subsection (b)(7)(B) shall not apply ering any individual,’’ after ‘‘the life of any subsection shall not apply to any taxable to any distribution with respect to preferred individual’’, and year beginning after December 31, 1995.’’ stock if— (2) by striking all that follows ‘‘carried on (2) Subsection (e) of section 52 is amended (A) such stock is outstanding at all times by the taxpayer’’ and inserting a period. by striking paragraph (1) and by redesignat- after October 31, 1995, and before the dis- (b) EXCEPTION FOR CONTRACTS RELATING TO ing paragraphs (2) and (3) as paragraphs (1) tribution, and KEY PERSONS; PERMISSIBLE INTEREST and (2), respectively. (B) such distribution is made before the RATES.—Section 264 is amended— (3) Subsection (a) of section 57 is amended date which is 1 year after the date of the en- (1) by striking ‘‘Any’’ in subsection (a)(4) by striking paragraph (4). actment of this Act (or, in the case of stock and inserting ‘‘Except as provided in sub- (4) Section 246 is amended by striking sub- which may be redeemed, if later, the date section (d), any’’, and section (f). which is 30 days after the earliest date that (2) by adding at the end the following new (5) Clause (i) of section 291(e)(1)(B) is such stock may be redeemed). subsection: amended by striking ‘‘or to which section 593 (3) SUBSECTION (b)(8).—The amendment ‘‘(d) SPECIAL RULES FOR APPLICATION OF applies’’. made by subsection (b)(8) shall apply to prop- SUBSECTION (a)(4).— (6) Subparagraph (A) of section 585(a)(2) is erty acquired in taxable years beginning ‘‘(1) EXCEPTION FOR KEY PERSONS.—Sub- amended by striking ‘‘other than an organi- after December 31, 1995. section (a)(4) shall not apply to any interest zation to which section 593 applies’’. (4) SUBSECTION (b)(10).—The amendments paid or accrued on any indebtedness with re- (7)(A) The material preceding subpara- made by subsection (b)(10) shall not apply to spect to policies or contracts covering an in- graph (A) of section 593(e)(1) is amended by any residual interest held by a taxpayer if dividual who is a key person to the extent striking ‘‘by a domestic building and loan as- such interest has been held by such taxpayer that the aggregate amount of such indebted- sociation or an institution that is treated as at all times after October 31, 1995. ness with respect to policies and contracts a mutual savings bank under section 591(b)’’ CHAPTER 3—REFORM OF THE EARNED covering such individual does not exceed and inserting ‘‘by a taxpayer having a bal- INCOME CREDIT $50,000. ance described in subsection (g)(2)(A)(ii)’’. SEC. 491. EARNED INCOME CREDIT DENIED TO ‘‘(2) INTEREST RATE CAP ON KEY PERSONS (B) Subparagraph (B) of section 593(e)(1) is INDIVIDUALS NOT AUTHORIZED TO AND PRE-1986 CONTRACTS.— amended to read as follows: BE EMPLOYED IN THE UNITED ‘‘(A) IN GENERAL.—No deduction shall be ‘‘(B) then out of the balance taken into ac- STATES. allowed by reason of paragraph (1) or the last count under subsection (g)(2)(A)(ii) (properly (a) IN GENERAL.—Section 32(c)(1) (relating sentence of subsection (a) with respect to in- adjusted for amounts charged against such to individuals eligible to claim the earned terest paid or accrued for any month to the reserves for taxable years beginning after income credit) is amended by adding at the extent the amount of such interest exceeds December 31, 1987),’’. end the following new subparagraph: the amount which would have been deter- (C) The second sentence of section 593(e)(1) ‘‘(F) IDENTIFICATION NUMBER REQUIRE- mined if the applicable rate of interest were is amended by striking ‘‘the association or MENT.—The term ‘eligible individual’ does used for such month. an institution that is treated as a mutual not include any individual who does not in- ‘‘(B) APPLICABLE RATE OF INTEREST.—For savings bank under section 591(b)’’ and include on the return of tax for the taxable purposes of subparagraph (A)— serting ‘‘a taxpayer having a balance de- year— ‘‘(i) IN GENERAL.—The applicable rate of in- scribed in subsection (g)(2)(A)(ii)’’. ‘‘(i) such individual’s taxpayer identifica- terest for any month is the rate of interest (D) The third sentence of section 593(e)(1) tion number, and described as Moody’s Corporate Bond Yield is amended by striking ‘‘an association’’ and ‘‘(ii) if the individual is married (within Average-Monthly Average Corporates as pub- inserting ‘‘a taxpayer having a balance de- the meaning of section 7703), the taxpayer lished by Moody’s Investors Service, Inc., or scribed in subsection (g)(2)(A)(ii)’’. identification number of such individual’s any successor thereto, for such month. (E) Paragraph (1) of section 593(e) is spouse.’’. ‘‘(ii) PRE-1986 CONTRACT.—In the case of in- amended by adding at the end the following (b) SPECIAL IDENTIFICATION NUMBER.—Sec- debtedness on a contract to which the last new sentence: ‘‘This paragraph shall not tion 32 is amended by adding at the end the sentence of subsection (a) applies— apply to any distribution of all of the stock following new subsection: ‘‘(I) which is a contract providing a fixed of a bank (as defined in section 581) to an- ‘‘(l) IDENTIFICATION NUMBERS.—Solely for rate of interest, the applicable rate of inter- other corporation if, immediately after the purposes of subsections (c)(1)(F) and est for any month shall be the Moody’s rate distribution, such bank and such other cor- (c)(3)(D), a taxpayer identification number described in clause (i) for the month in which poration are members of the same affiliated means a social security number issued to an the contract was purchased, or S3654 CONGRESSIONAL RECORD — SENATE April 18, 1996 ‘‘(II) which is a contract providing a vari- as published by Moody’s Investors Service, that section or other provision of the Social able rate of interest, the applicable rate of Inc., or any successor thereto, for such Security Act. interest for any month in an applicable pe- month. (b) TABLE OF CONTENTS OF TITLE.—The riod shall be such Moody’s rate for the last For purposes of clause (i), all persons treated table of contents of this title is as follows: month preceding such period. as a single employer under subsection (a) or TITLE V—HEALTH CARE FRAUD AND For purposes of subclause (II), the taxpayer (b) of section 52 of the Internal Revenue Code ABUSE PREVENTION shall elect an applicable period for such con- of 1986 or subsection (m) or (o) of section 414 Sec. 500. Amendments and table of contents. tract on its return of tax imposed by this of such Code shall be treated as one person. Subtitle A—Fraud and Abuse Control chapter for its first taxable year ending on (C) APPLICABLE PERCENTAGE.—For purposes Program or after October 13, 1995. Such applicable pe- of subparagraph (B), the applicable percent- Sec. 501. Fraud and abuse control program. riod shall be for any number of months (not age is as follows: Sec. 502. Medicare integrity program. greater than 12) specified in the election and For calendar year: The percentage is: Sec. 503. Beneficiary incentive programs. may not be changed by the taxpayer without 1995 ...... 100 percent Sec. 504. Application of certain health anti- the consent of the Secretary. 1996 ...... 90 percent fraud and abuse sanctions to ‘‘(3) KEY PERSON.—For purposes of para- 1997 ...... 80 percent fraud and abuse against Federal graph (1), the term ‘key person’ means an of- 1998 ...... 70 percent. health care programs. ficer or 20-percent owner, except that the (3) SPECIAL RULE FOR GRANDFATHERED CON- Sec. 505. Guidance regarding application of number of individuals who may be treated as TRACTS.—This section shall not apply to any health care fraud and abuse key persons with respect to any taxpayer contract purchased on or before June 20, 1986, sanctions. shall not exceed the greater of— except that section 264(d)(2) of the Internal Subtitle B—Revisions to Current Sanctions ‘‘(A) 5 individuals, or Revenue Code of 1986 shall apply to interest for Fraud and Abuse ‘‘(B) the lesser of 5 percent of the total offi- paid or accrued after October 13, 1995. Sec. 511. Mandatory exclusion from partici- cers and employees of the taxpayer or 10 in- (d) SPREAD OF INCOME INCLUSION ON SUR- pation in medicare and State dividuals. RENDER, ETC. OF CONTRACTS.— health care programs. ‘‘(4) 20-PERCENT OWNER.—For purposes of (1) IN GENERAL.—If any amount is received Sec. 512. Establishment of minimum period this subsection, the term ‘20-percent owner’ under any life insurance policy or endow- of exclusion for certain individ- means— ment or annuity contract described in para- uals and entities subject to per- ‘‘(A) if the taxpayer is a corporation, any graph (4) of section 264(a) of the Internal missive exclusion from medi- person who owns directly 20 percent or more Revenue Code of 1986— care and State health care proof the outstanding stock of the corporation (A) on the complete surrender, redemption, grams. or stock possessing 20 percent or more of the or maturity of such policy or contract dur- Sec. 513. Permissive exclusion of individuals total combined voting power of all stock of ing calendar year 1996, 1997, or 1998, or with ownership or control in- the corporation, or (B) in full discharge during any such cal- terest in sanctioned entities. ‘‘(B) if the taxpayer is not a corporation, endar year of the obligation under the policy Sec. 514. Sanctions against practitioners and any person who owns 20 percent or more of or contract which is in the nature of a refund persons for failure to comply the capital or profits interest in the em- of the consideration paid for the policy or with statutory obligations. ployer. contract, Sec. 515. Intermediate sanctions for medi- ‘‘(5) AGGREGATION RULES.— then (in lieu of any other inclusion in gross care health maintenance orga- ‘‘(A) IN GENERAL.—For purposes of para- income) such amount shall be includible in nizations. graph (4)(A) and applying the $50,000 limita- Sec. 516. Additional exceptions to anti-kick- gross income ratably over the 4-taxable year tion in paragraph (1)— back penalties for risk-sharing period beginning with the taxable year such ‘‘(i) all members of a controlled group shall arrangements. amount would (but for this paragraph) be in- be treated as 1 taxpayer, and Sec. 517. Effective date. cludible. The preceding sentence shall only ‘‘(ii) such limitation shall be allocated apply to the extent the amount is includible Subtitle C—Data Collection and among the members of such group in such in gross income for the taxable year in which Miscellaneous Provisions manner as the Secretary may prescribe. the event described in subparagraph (A) or Sec. 521. Establishment of the health care ‘‘(B) CONTROLLED GROUP.—For purposes of (B) occurs. fraud and abuse data collection this paragraph, all persons treated as a sin- (2) SPECIAL RULES FOR APPLYING SECTION program. gle employer under subsection (a) or (b) of 264.—A contract shall not be treated as— Subtitle D—Civil Monetary Penalties section 52 or subsection (m) or (o) of section (A) failing to meet the requirement of sec- 414 shall be treated as members of a con- Sec. 531. Social Security Act civil monetary tion 264(c)(1) of the Internal Revenue Code of trolled group.’’. penalties. (c) EFFECTIVE DATES.— 1986, or Subtitle E—Amendments to Criminal Law (B) a single premium contract under sec- (1) IN GENERAL.—The amendments made by Sec. 541. Health care fraud. this section shall apply to interest paid or tion 264(b)(1) of such Code, Sec. 542. Forfeitures for Federal health care accrued after December 31, 1995. solely by reason of an occurrence described offenses. (2) TRANSITION RULE FOR EXISTING INDEBT- in subparagraph (A) or (B) of paragraph (1) of Sec. 543. Injunctive relief relating to Fed- EDNESS.— this subsection or solely by reason of no ad- eral health care offenses. (A) IN GENERAL.—In the case of— ditional premiums being received under the Sec. 544. False Statements. (i) indebtedness incurred before January 1, contract by reason of a lapse occurring after Sec. 545. Obstruction of criminal investiga- 1996, or October 13, 1995. tions of Federal health care of- (ii) indebtedness incurred before January 1, (3) SPECIAL RULE FOR DEFERRED ACQUISITION fenses. 1997 with respect to any contract or policy COSTS.—In the case of the occurrence of any Sec. 546. Theft or embezzlement. entered into in 1994 or 1995, event described in subparagraph (A) or (B) of Sec. 547. Laundering of monetary instruments. the amendments made by this section shall paragraph (1) of this subsection with respect to any policy or contract— Sec. 548. Authorized investigative demand not apply to qualified interest paid or ac- procedures. crued on such indebtedness after October 13, (A) section 848 of the Internal Revenue 1995, and before January 1, 1999. Code of 1986 shall not apply to the Subtitle A—Fraud and Abuse Control Program (B) QUALIFIED INTEREST.—For purposes of unamortized balance (if any) of the specified subparagraph (A), the qualified interest with policy acquisition expenses attributable to SEC. 501. FRAUD AND ABUSE CONTROL PRO- respect to any indebtedness for any month is such policy or contract immediately before GRAM. the amount of interest which would be paid the insurance company’s taxable year in (a) ESTABLISHMENT OF PROGRAM.—Title XI or accrued for such month on such indebted- which such event occurs, and (42 U.S.C. 1301 et seq.) is amended by insert- ness if— (B) there shall be allowed as a deduction to ing after section 1128B the following new sec- (i) in the case of any interest paid or ac- such company for such taxable year under tion: crued after December 31, 1995, indebtedness chapter 1 of such Code an amount equal to ‘‘FRAUD AND ABUSE CONTROL PROGRAM with respect to no more than 20,000 insured such unamortized balance. ‘‘SEC. 1128C. (a) ESTABLISHMENT OF PRO- individuals were taken into account, and TITLE V—HEALTH CARE FRAUD AND GRAM.— (ii) the lesser of the following rates of in- ABUSE PREVENTION ‘‘(1) IN GENERAL.—Not later than January terest were used for such month: SEC. 500. AMENDMENTS AND TABLE OF CON- 1, 1997, the Secretary, acting through the Of- (I) The rate of interest specified under the TENTS. fice of the Inspector General of the Depart- terms of the indebtedness as in effect on Oc- (a) AMENDMENTS TO SOCIAL SECURITY ment of Health and Human Services, and the tober 13, 1995 (and without regard to modi- ACT.—Except as otherwise specifically pro- Attorney General shall establish a pro- fication of such terms after such date). vided, whenever in this title an amendment gram— (II) The applicable percentage rate of in- is expressed in terms of an amendment to or ‘‘(A) to coordinate Federal, State, and terest described as Moody’s Corporate Bond repeal of a section or other provision, the local law enforcement programs to control Yield Average-Monthly Average Corporates reference shall be considered to be made to fraud and abuse with respect to health plans, April 18, 1996 CONGRESSIONAL RECORD — SENATE S3655

‘‘(B) to conduct investigations, audits, ‘‘(c) HEALTH PLAN DEFINED.—For purposes ‘‘(ii) MEDICARE AND MEDICAID ACTIVITIES.— evaluations, and inspections relating to the of this section, the term ‘health plan’ means For each fiscal year, of the amount appro- delivery of and payment for health care in a plan or program that provides health bene- priated in clause (i), the following amounts the United States, fits, whether directly, through insurance, or shall be available only for the purposes of ‘‘(C) to facilitate the enforcement of the otherwise, and includes— the activities of the Office of the Inspector provisions of sections 1128, 1128A, and 1128B ‘‘(1) a policy of health insurance; General of the Department of Health and and other statutes applicable to health care ‘‘(2) a contract of a service benefit organi- Human Services with respect to the medi- fraud and abuse, zation; and care and medicaid programs— ‘‘(D) to provide for the modification and es- ‘‘(3) a membership agreement with a health ‘‘(I) for fiscal year 1997, not less than tablishment of safe harbors and to issue in- maintenance organization or other prepaid $60,000,000 and not more than $70,000,000; terpretative rulings and special fraud alerts health plan.’’. ‘‘(II) for fiscal year 1998, not less than pursuant to section 1128D, and (b) ESTABLISHMENT OF HEALTH CARE FRAUD $80,000,000 and not more than $90,000,000; ‘‘(E) to provide for the reporting and dis- AND ABUSE CONTROL ACCOUNT IN FEDERAL ‘‘(III) for fiscal year 1999, not less than closure of certain final adverse actions HOSPITAL INSURANCE TRUST FUND.—Section $90,000,000 and not more than $100,000,000; against health care providers, suppliers, or 1817 (42 U.S.C. 1395i) is amended by adding at ‘‘(IV) for fiscal year 2000, not less than practitioners pursuant to the data collection the end the following new subsection: system established under section 1128E. $110,000,000 and not more than $120,000,000; ‘‘(k) HEALTH CARE FRAUD AND ABUSE CON- ‘‘(V) for fiscal year 2001, not less than ‘‘(2) COORDINATION WITH HEALTH PLANS.—In TROL ACCOUNT.— carrying out the program established under $120,000,000 and not more than $130,000,000; ‘‘(1) ESTABLISHMENT.—There is hereby es- paragraph (1), the Secretary and the Attor- ‘‘(VI) for fiscal year 2002, not less than tablished in the Trust Fund an expenditure ney General shall consult with, and arrange $140,000,000 and not more than $150,000,000; account to be known as the ‘Health Care for the sharing of data with representatives and Fraud and Abuse Control Account’ (in this of health plans. ‘‘(VII) for each fiscal year after fiscal year subsection referred to as the ‘Account’). ‘‘(3) GUIDELINES.— 2002, not less than $150,000,000 and not more ‘‘(2) APPROPRIATED AMOUNTS TO TRUST ‘‘(A) IN GENERAL.—The Secretary and the than $160,000,000. Attorney General shall issue guidelines to FUND.— ‘‘(B) FEDERAL BUREAU OF INVESTIGATION.— carry out the program under paragraph (1). ‘‘(A) IN GENERAL.—There are hereby appro- There are hereby appropriated from the gen- The provisions of sections 553, 556, and 557 of priated to the Trust Fund— eral fund of the United States Treasury and title 5, United States Code, shall not apply in ‘‘(i) such gifts and bequests as may be hereby appropriated to the Account for the issuance of such guidelines. made as provided in subparagraph (B); transfer to the Federal Bureau of Investiga- ‘‘(ii) such amounts as may be deposited in ‘‘(B) INFORMATION GUIDELINES.— tion to carry out the purposes described in ‘‘(i) IN GENERAL.—Such guidelines shall in- the Trust Fund as provided in sections 541(b) subparagraph (C)(i), to be available without clude guidelines relating to the furnishing of and 542(c) of the Health Insurance Reform further appropriation— information by health plans, providers, and Act of 1996, and title XI; and ‘‘(i) for fiscal year 1997, $47,000,000; others to enable the Secretary and the At- ‘‘(iii) such amounts as are transferred to ‘‘(ii) for fiscal year 1998, $56,000,000; torney General to carry out the program (in- the Trust Fund under subparagraph (C). ‘‘(iii) for fiscal year 1999, $66,000,000; cluding coordination with health plans under ‘‘(B) AUTHORIZATION TO ACCEPT GIFTS.—The ‘‘(iv) for fiscal year 2000, $76,000,000; paragraph (2)). Trust Fund is authorized to accept on behalf ‘‘(v) for fiscal year 2001, $88,000,000; ‘‘(ii) CONFIDENTIALITY.—Such guidelines of the United States money gifts and be- ‘‘(vi) for fiscal year 2002, $101,000,000; and shall include procedures to assure that such quests made unconditionally to the Trust ‘‘(vii) for each fiscal year after fiscal year information is provided and utilized in a Fund, for the benefit of the Account or any 2002, $114,000,000. activity financed through the Account. manner that appropriately protects the con- ‘‘(C) USE OF FUNDS.—The purposes de- ‘‘(C) TRANSFER OF AMOUNTS.—The Manag- fidentiality of the information and the pri- scribed in this subparagraph are to cover the ing Trustee shall transfer to the Trust Fund, vacy of individuals receiving health care costs (including equipment, salaries and ben- under rules similar to the rules in section services and items. efits, and travel and training) of the admin- 9601 of the Internal Revenue Code of 1986, an ‘‘(iii) QUALIFIED IMMUNITY FOR PROVIDING istration and operation of the health care amount equal to the sum of the following: INFORMATION.—The provisions of section fraud and abuse control program established ‘‘(i) Criminal fines recovered in cases in- 1157(a) (relating to limitation on liability) under section 1128C(a), including the costs volving a Federal health care offense (as de- shall apply to a person providing informa- of— fined in section 982(a)(6)(B) of title 18, United tion to the Secretary or the Attorney Gen- ‘‘(i) prosecuting health care matters States Code). eral in conjunction with their performance (through criminal, civil, and administrative ‘‘(ii) Civil monetary penalties and assess- of duties under this section. proceedings); ‘‘(4) ENSURING ACCESS TO DOCUMENTATION.— ments imposed in health care cases, includ- ‘‘(ii) investigations; The Inspector General of the Department of ing amounts recovered under titles XI, ‘‘(iii) financial and performance audits of Health and Human Services is authorized to XVIII, and XXI, and chapter 38 of title 31, health care programs and operations; exercise such authority described in para- United States Code (except as otherwise pro- ‘‘(iv) inspections and other evaluations; graphs (3) through (9) of section 6 of the In- vided by law). and spector General Act of 1978 (5 U.S.C. App.) as ‘‘(iii) Amounts resulting from the forfeit- ‘‘(v) provider and consumer education re- necessary with respect to the activities ure of property by reason of a Federal health garding compliance with the provisions of under the fraud and abuse control program care offense. title XI. established under this subsection. ‘‘(iv) Penalties and damages obtained and ‘‘(4) APPROPRIATED AMOUNTS TO ACCOUNT ‘‘(5) AUTHORITY OF INSPECTOR GENERAL.— otherwise creditable to miscellaneous re- Nothing in this Act shall be construed to di- ceipts of the general fund of the Treasury ob- FOR MEDICARE INTEGRITY PROGRAM.— minish the authority of any Inspector Gen- tained under sections 3729 through 3733 of ‘‘(A) IN GENERAL.—There are hereby appro- eral, including such authority as provided in title 31, United States Code (known as the priated to the Account from the Trust Fund the Inspector General Act of 1978 (5 U.S.C. False Claims Act), in cases involving claims for each fiscal year such amounts as are nec- App.). related to the provision of health care items essary to carry out the Medicare Integrity ‘‘(b) ADDITIONAL USE OF FUNDS BY INSPECTOR and services (other than funds awarded to a Program under section 1893, subject to sub- GENERAL.— relator, for restitution or otherwise author- paragraph (B) and to be available without ‘‘(1) REIMBURSEMENTS FOR INVESTIGA- ized by law). further appropriation. TIONS.—The Inspector General of the Depart- ‘‘(3) APPROPRIATED AMOUNTS TO ACCOUNT ‘‘(B) AMOUNTS SPECIFIED.—The amount ap- ment of Health and Human Services is au- FOR FRAUD AND ABUSE CONTROL PROGRAM, propriated under subparagraph (A) for a fis- thorized to receive and retain for current use ETC.— cal year is as follows: reimbursement for the costs of conducting ‘‘(A) DEPARTMENTS OF HEALTH AND HUMAN ‘‘(i) For fiscal year 1997, such amount shall investigations and audits and for monitoring SERVICES AND JUSTICE.— be not less than $430,000,000 and not more compliance plans when such costs are or- ‘‘(i) IN GENERAL.—There are hereby appro- than $440,000,000. dered by a court, voluntarily agreed to by priated to the Account from the Trust Fund ‘‘(ii) For fiscal year 1998, such amount the payor, or otherwise. such sums as the Secretary and the Attorney shall be not less than $490,000,000 and not ‘‘(2) CREDITING.—Funds received by the In- General certify are necessary to carry out more than $500,000,000. spector General under paragraph (1) as reim- the purposes described in subparagraph (C), ‘‘(iii) For fiscal year 1999, such amount bursement for costs of conducting investiga- to be available without further appropria- shall be not less than $550,000,000 and not tions shall be deposited to the credit of the tion, in an amount not to exceed— more than $560,000,000. appropriation from which initially paid, or ‘‘(I) for fiscal year 1997, $104,000,000, and ‘‘(iv) For fiscal year 2000, such amount to appropriations for similar purposes cur- ‘‘(II) for each of the fiscal years 1998 shall be not less than $620,000,000 and not rently available at the time of deposit, and through 2003, the limit for the preceding fis- more than $630,000,000. shall remain available for obligation for 1 cal year, increased by 15 percent; and ‘‘(v) For fiscal year 2001, such amount shall year from the date of the deposit of such ‘‘(III) for each fiscal year after fiscal year be not less than $670,000,000 and not more funds. 2003, the limit for fiscal year 2003. than $680,000,000. S3656 CONGRESSIONAL RECORD — SENATE April 18, 1996

‘‘(vi) For fiscal year 2002, such amount ‘‘(d) PROCESS FOR ENTERING INTO CON- grounds for the imposition of a sanction shall be not less than $690,000,000 and not TRACTS.—The Secretary shall enter into con- under section 1128, section 1128A, or section more than $700,000,000. tracts under the Program in accordance with 1128B of the Social Security Act, or who have ‘‘(vii) For each fiscal year after fiscal year such procedures as the Secretary shall by otherwise engaged in fraud and abuse against 2002, such amount shall be not less than regulation establish, except that such proce- the medicare program for which there is a $710,000,000 and not more than $720,000,000. dures shall include the following: sanction provided under law. The program ‘‘(5) ANNUAL REPORT.—The Secretary and ‘‘(1) Procedures for identifying, evaluating, shall discourage provision of, and not con- the Attorney General shall submit jointly an and resolving organizational conflicts of in- sider, information which is frivolous or oth- annual report to Congress on the amount of terest that are generally applicable to Fed- erwise not relevant or material to the impo- revenue which is generated and disbursed, eral acquisition and procurement. sition of such a sanction. and the justification for such disbursements, ‘‘(2) Competitive procedures must be used (2) PAYMENT OF PORTION OF AMOUNTS COL- by the Account in each fiscal year.’’. when entering into new contracts under this LECTED.—If an individual reports informa- SEC. 502. MEDICARE INTEGRITY PROGRAM. section, or at any other time considered ap- tion to the Secretary under the program es- (a) ESTABLISHMENT OF MEDICARE INTEGRITY propriate by the Secretary, except that the tablished under paragraph (1) which serves as PROGRAM.—Title XVIII is amended by adding Secretary may contract with entities that the basis for the collection by the Secretary at the end the following new section: are carrying out the activities described in or the Attorney General of any amount of at ‘‘MEDICARE INTEGRITY PROGRAM this section pursuant to agreements under least $100 (other than any amount paid as a ‘‘SEC. 1893. (a) ESTABLISHMENT OF PRO- section 1816 or contracts under section 1842 penalty under section 1128B of the Social Se- GRAM.—There is hereby established the Medi- in effect on the date of the enactment of this curity Act), the Secretary may pay a portion care Integrity Program (in this section re- section. of the amount collected to the individual ferred to as the ‘Program’) under which the ‘‘(3) A contract under this section may be (under procedures similar to those applicable Secretary shall promote the integrity of the renewed without regard to any provision of under section 7623 of the Internal Revenue medicare program by entering into contracts law requiring competition if the contractor Code of 1986 to payments to individuals pro- in accordance with this section with eligible has met or exceeded the performance re- viding information on violations of such private entities to carry out the activities quirements established in the current con- Code). described in subsection (b). tract. (c) PROGRAM TO COLLECT INFORMATION ON ‘‘(b) ACTIVITIES DESCRIBED.—The activities ‘‘(e) LIMITATION ON CONTRACTOR LIABIL- PROGRAM EFFICIENCY.— described in this subsection are as follows: ITY.—The Secretary shall by regulation pro- (1) ESTABLISHMENT OF PROGRAM.—Not later ‘‘(1) Review of activities of providers of vide for the limitation of a contractor’s li- than 3 months after the date of the enact- services or other individuals and entities fur- ability for actions taken to carry out a con- ment of this Act, the Secretary shall estab- nishing items and services for which pay- tract under the Program, and such regula- lish a program under which the Secretary ment may be made under this title (includ- tion shall, to the extent the Secretary finds shall encourage individuals to submit to the ing skilled nursing facilities and home appropriate, employ the same or comparable Secretary suggestions on methods to im- health agencies), including medical and uti- standards and other substantive and proce- prove the efficiency of the medicare pro- lization review and fraud review (employing dural provisions as are contained in section gram. similar standards, processes, and tech- 1157.’’. (2) PAYMENT OF PORTION OF PROGRAM SAV- nologies used by private health plans, includ- (b) ELIMINATION OF FI AND CARRIER RE- INGS.—If an individual submits a suggestion ing equipment and software technologies SPONSIBILITY FOR CARRYING OUT ACTIVITIES to the Secretary under the program estab- which surpass the capability of the equip- SUBJECT TO PROGRAM.— lished under paragraph (1) which is adopted ment and technologies used in the review of (1) RESPONSIBILITIES OF FISCAL by the Secretary and which results in sav- claims under this title as of the date of the INTERMEDIARIES UNDER PART A.—Section 1816 ings to the program, the Secretary may enactment of this section). (42 U.S.C. 1395h) is amended by adding at the make a payment to the individual of such ‘‘(2) Audit of cost reports. end the following new subsection: amount as the Secretary considers appro- ‘‘(3) Determinations as to whether pay- ‘‘(l) No payment may be made for carrying priate. ment should not be, or should not have been, out any activity pursuant to an agreement SEC. 504. APPLICATION OF CERTAIN HEALTH made under this title by reason of section under this section to the extent that the ac- ANTI-FRAUD AND ABUSE SANCTIONS 1862(b), and recovery of payments that tivity is carried out pursuant to a contract TO FRAUD AND ABUSE AGAINST FEDERAL HEALTH CARE PROGRAMS. should not have been made. under the Medicare Integrity Program under (a) IN GENERAL.—Section 1128B (42 U.S.C. ‘‘(4) Education of providers of services, section 1893.’’. beneficiaries, and other persons with respect 1320a–7b) is amended as follows: (2) RESPONSIBILITIES OF CARRIERS UNDER to payment integrity and benefit quality as- (1) In the heading, by striking ‘‘MEDICARE PART B.—Section 1842(c) (42 U.S.C. 1395u(c)) is surance issues. OR STATE HEALTH CARE PROGRAMS’’ and in- amended by adding at the end the following ‘‘(5) Developing (and periodically updating) serting ‘‘FEDERAL HEALTH CARE PROGRAMS’’. new paragraph: a list of items of durable medical equipment (2) In subsection (a)(1), by striking ‘‘a pro- ‘‘(6) No payment may be made for carrying in accordance with section 1834(a)(15) which gram under title XVIII or a State health out any activity pursuant to a contract are subject to prior authorization under such care program (as defined in section 1128(h))’’ under this subsection to the extent that the section. and inserting ‘‘a Federal health care pro- activity is carried out pursuant to a contract ‘‘(c) ELIGIBILITY OF ENTITIES.—An entity is gram’’. eligible to enter into a contract under the under the Medicare Integrity Program under (3) In subsection (a)(5), by striking ‘‘a pro- Program to carry out any of the activities section 1893. The previous sentence shall not gram under title XVIII or a State health described in subsection (b) if— apply with respect to the activity described care program’’ and inserting ‘‘a Federal ‘‘(1) the entity has demonstrated capabil- in section 1893(b)(5) (relating to prior author- health care program’’. ity to carry out such activities; ization of certain items of durable medical (4) In the second sentence of subsection ‘‘(2) in carrying out such activities, the en- equipment under section 1834(a)(15)).’’. (a)— tity agrees to cooperate with the Inspector SEC. 503. BENEFICIARY INCENTIVE PROGRAMS. (A) by striking ‘‘a State plan approved General of the Department of Health and (a) CLARIFICATION OF REQUIREMENT TO PRO- under title XIX’’ and inserting ‘‘a Federal Human Services, the Attorney General of the VIDE EXPLANATION OF MEDICARE BENEFITS.— health care program’’, and United States, and other law enforcement The Secretary of Health and Human Services (B) by striking ‘‘the State may at its op- agencies, as appropriate, in the investigation (in this section referred to as the ‘‘Sec- tion (notwithstanding any other provision of and deterrence of fraud and abuse in relation retary’’) shall provide an explanation of ben- that title or of such plan)’’ and inserting to this title and in other cases arising out of efits under the medicare program under title ‘‘the administrator of such program may at such activities; XVIII of the Social Security Act with re- its option (notwithstanding any other provi- ‘‘(3) the entity complies with such conflict spect to each item or service for which pay- sion of such program)’’. of interest standards as are generally appli- ment may be made under the program which (5) In subsection (b), by striking ‘‘title cable to Federal acquisition and procure- is furnished to an individual, without regard XVIII or a State health care program’’ each ment; to whether or not a deductible or coinsur- place it appears and inserting ‘‘a Federal ‘‘(4) the entity meets such other require- ance may be imposed against the individual health care program’’. ments as the Secretary may impose; and with respect to the item or service. (6) In subsection (c), by inserting ‘‘(as de- ‘‘(5) in the case of any contract entered (b) PROGRAM TO COLLECT INFORMATION ON fined in section 1128(h))’’ after ‘‘a State into for years prior to 2000, the entity has en- FRAUD AND ABUSE.— health care program’’. tered into an agreement under section 1816 (1) ESTABLISHMENT OF PROGRAM.—Not later (7) By adding at the end the following new or a contract under section 1842. than 3 months after the date of the enact- subsection: In the case of the activity described in sub- ment of this Act, the Secretary shall estab- ‘‘(f) For purposes of this section, the term section (b)(5), an entity shall be deemed to lish a program under which the Secretary ‘Federal health care program’ means— be eligible to enter into a contract under the shall encourage individuals to report to the ‘‘(1) any plan or program that provides Program to carry out the activity if the en- Secretary information on individuals and en- health benefits, whether directly, through tity is a carrier with a contract in effect tities who are engaging or who have engaged insurance, or otherwise, which is funded di- under section 1842. in acts or omissions which constitute rectly, in whole or in part, by the United April 18, 1996 CONGRESSIONAL RECORD — SENATE S3657 States Government (other than the health ‘‘(F) An increase or decrease in the cost to General shall investigate the subject matter insurance program under chapter 89 of title Federal health care programs (as defined in of the request to determine whether a special 5, United States Code); or section 1128B(f)). fraud alert should be issued. If appropriate, ‘‘(2) any State health care program, as de- ‘‘(G) An increase or decrease in the poten- the Inspector General shall issue a special fined in section 1128(h).’’. tial overutilization of health care services. fraud alert in response to the request. All (b) EFFECTIVE DATE.—The amendments ‘‘(H) The existence or nonexistence of any special fraud alerts issued pursuant to this made by this section shall take effect on potential financial benefit to a health care subparagraph shall be published in the Fed- January 1, 1997. professional or provider which may vary eral Register. SEC. 505. GUIDANCE REGARDING APPLICATION based on their decisions of— ‘‘(2) CRITERIA FOR SPECIAL FRAUD ALERTS.— OF HEALTH CARE FRAUD AND ‘‘(i) whether to order a health care item or In determining whether to issue a special ABUSE SANCTIONS. service; or fraud alert upon a request described in para- Title XI (42 U.S.C. 1301 et seq.), as amended ‘‘(ii) whether to arrange for a referral of graph (1), the Inspector General may con- by section 501, is amended by inserting after health care items or services to a particular sider— section 1128C the following new section: practitioner or provider. ‘‘(A) whether and to what extent the prac- ‘‘GUIDANCE REGARDING APPLICATION OF ‘‘(I) Any other factors the Secretary deems tices that would be identified in the special HEALTH CARE FRAUD AND ABUSE SANCTIONS appropriate in the interest of preventing fraud alert may result in any of the con- fraud and abuse in Federal health care pro- sequences described in subsection (a)(2); and ‘‘SEC. 1128D. (a) SOLICITATION AND PUBLICA- grams (as so defined). ‘‘(B) the volume and frequency of the con- TION OF MODIFICATIONS TO EXISTING SAFE ‘‘(b) INTERPRETIVE RULINGS.— duct that would be identified in the special HARBORS AND NEW SAFE HARBORS.— ‘‘(1) IN GENERAL.— fraud alert.’’. ‘‘(1) IN GENERAL.— ‘‘(A) REQUEST FOR INTERPRETIVE RULING.— ‘‘(A) SOLICITATION OF PROPOSALS FOR SAFE Subtitle B—Revisions to Current Sanctions Any person may present, at any time, a re- for Fraud and Abuse HARBORS.—Not later than January 1, 1997, quest to the Inspector General for a state- and not less than annually thereafter, the SEC. 511. MANDATORY EXCLUSION FROM PAR- ment of the Inspector General’s current in- TICIPATION IN MEDICARE AND Secretary shall publish a notice in the Fed- terpretation of the meaning of a specific as- eral Register soliciting proposals, which will STATE HEALTH CARE PROGRAMS. pect of the application of sections 1128A and (a) INDIVIDUAL CONVICTED OF FELONY RE- be accepted during a 60-day period, for— 1128B (in this section referred to as an ‘inter- LATING TO HEALTH CARE FRAUD.— ‘‘(i) modifications to existing safe harbors pretive ruling’). (1) IN GENERAL.—Section 1128(a) (42 U.S.C. issued pursuant to section 14(a) of the Medi- ‘‘(B) ISSUANCE AND EFFECT OF INTERPRETIVE 1320a–7(a)) is amended by adding at the end care and Medicaid Patient and Program Pro- RULING.— the following new paragraph: tection Act of 1987 (42 U.S.C. 1320a–7b note); ‘‘(i) IN GENERAL.—If appropriate, the In- ‘‘(3) FELONY CONVICTION RELATING TO ‘‘(ii) additional safe harbors specifying spector General shall in consultation with HEALTH CARE FRAUD.—Any individual or en- payment practices that shall not be treated the Attorney General, issue an interpretive tity that has been convicted after the date of as a criminal offense under section 1128B(b) ruling not later than 90 days after receiving the enactment of the Health Insurance Re- and shall not serve as the basis for an exclu- a request described in subparagraph (A). In- form Act of 1996, under Federal or State law, sion under section 1128(b)(7); terpretive rulings shall not have the force of in connection with the delivery of a health ‘‘(iii) interpretive rulings to be issued pur- law and shall be treated as an interpretive care item or service or with respect to any suant to subsection (b); and rule within the meaning of section 553(b) of act or omission in a health care program ‘‘(iv) special fraud alerts to be issued pur- title 5, United States Code. All interpretive (other than those specifically described in suant to subsection (c). rulings issued pursuant to this clause shall paragraph (1)) operated by or financed in ‘‘(B) PUBLICATION OF PROPOSED MODIFICA- be published in the Federal Register or oth- whole or in part by any Federal, State, or TIONS AND PROPOSED ADDITIONAL SAFE HAR- erwise made available for public inspection. local government agency, of a criminal of- BORS.—After considering the proposals de- ‘‘(ii) REASONS FOR DENIAL.—If the Inspector fense consisting of a felony relating to fraud, scribed in clauses (i) and (ii) of subparagraph General does not issue an interpretive ruling theft, embezzlement, breach of fiduciary re- (A), the Secretary, in consultation with the in response to a request described in sub- sponsibility, or other financial misconduct.’’. Attorney General, shall publish in the Fed- paragraph (A), the Inspector General shall (2) CONFORMING AMENDMENT.—Paragraph eral Register proposed modifications to ex- notify the requesting party of such decision (1) of section 1128(b) (42 U.S.C. 1320a–7(b)) is isting safe harbors and proposed additional not later than 60 days after receiving such a amended to read as follows: safe harbors, if appropriate, with a 60-day request and shall identify the reasons for ‘‘(1) CONVICTION RELATING TO FRAUD.—Any comment period. After considering any pub- such decision. individual or entity that has been convicted lic comments received during this period, ‘‘(2) CRITERIA FOR INTERPRETIVE RULINGS.— after the date of the enactment of the Health the Secretary shall issue final rules modify- ‘‘(A) IN GENERAL.—In determining whether Insurance Reform Act of 1996, under Federal ing the existing safe harbors and establish- to issue an interpretive ruling under para- or State law— ing new safe harbors, as appropriate. graph (1)(B), the Inspector General may con- ‘‘(A) of a criminal offense consisting of a ‘‘(C) REPORT.—The Inspector General of sider— misdemeanor relating to fraud, theft, embez- the Department of Health and Human Serv- ‘‘(i) whether and to what extent the re- zlement, breach of fiduciary responsibility, ices (in this section referred to as the ‘In- quest identifies an ambiguity within the lan- or other financial misconduct— spector General’) shall, in an annual report guage of the statute, the existing safe har- ‘‘(i) in connection with the delivery of a to Congress or as part of the year-end semi- bors, or previous interpretive rulings; and health care item or service, or annual report required by section 5 of the In- ‘‘(ii) whether the subject of the requested ‘‘(ii) with respect to any act or omission in spector General Act of 1978 (5 U.S.C. App.), interpretive ruling can be adequately ad- a health care program (other than those spe- describe the proposals received under clauses dressed by interpretation of the language of cifically described in subsection (a)(1)) oper- (i) and (ii) of subparagraph (A) and explain the statute, the existing safe harbor rules, or ated by or financed in whole or in part by which proposals were included in the publi- previous interpretive rulings, or whether the any Federal, State, or local government cation described in subparagraph (B), which request would require a substantive ruling agency; or proposals were not included in that publica- (as defined in section 552 of title 5, United ‘‘(B) of a criminal offense relating to fraud, tion, and the reasons for the rejection of the States Code) not authorized under this sub- theft, embezzlement, breach of fiduciary re- proposals that were not included. section. sponsibility, or other financial misconduct ‘‘(2) CRITERIA FOR MODIFYING AND ESTAB- ‘‘(B) NO RULINGS ON FACTUAL ISSUES.—The with respect to any act or omission in a pro- LISHING SAFE HARBORS.—In modifying and es- Inspector General shall not give an interpre- gram (other than a health care program) op- tablishing safe harbors under paragraph tive ruling on any factual issue, including erated by or financed in whole or in part by (1)(B), the Secretary may consider the extent the intent of the parties or the fair market any Federal, State, or local government to which providing a safe harbor for the spec- value of particular leased space or equip- agency.’’. ified payment practice may result in any of ment. (b) INDIVIDUAL CONVICTED OF FELONY RE- the following: ‘‘(c) SPECIAL FRAUD ALERTS.— LATING TO CONTROLLED SUBSTANCE.— ‘‘(A) An increase or decrease in access to ‘‘(1) IN GENERAL.— (1) IN GENERAL.—Section 1128(a) (42 U.S.C. health care services. ‘‘(A) REQUEST FOR SPECIAL FRAUD ALERTS.— 1320a–7(a)), as amended by subsection (a), is ‘‘(B) An increase or decrease in the quality Any person may present, at any time, a re- amended by adding at the end the following of health care services. quest to the Inspector General for a notice new paragraph: ‘‘(C) An increase or decrease in patient which informs the public of practices which ‘‘(4) FELONY CONVICTION RELATING TO CON- freedom of choice among health care provid- the Inspector General considers to be suspect TROLLED SUBSTANCE.—Any individual or en- ers. or of particular concern under the medicare tity that has been convicted after the date of ‘‘(D) An increase or decrease in competi- program or a State health care program, as the enactment of the Health Insurance Re- tion among health care providers. defined in section 1128(h) (in this subsection form Act of 1996, under Federal or State law, ‘‘(E) An increase or decrease in the ability referred to as a ‘special fraud alert’). of a criminal offense consisting of a felony of health care facilities to provide services in ‘‘(B) ISSUANCE AND PUBLICATION OF SPECIAL relating to the unlawful manufacture, dis- medically underserved areas or to medically FRAUD ALERTS.—Upon receipt of a request de- tribution, prescription, or dispensing of a underserved populations. scribed in subparagraph (A), the Inspector controlled substance.’’. S3658 CONGRESSIONAL RECORD — SENATE April 18, 1996

(2) CONFORMING AMENDMENT.—Section (1) in the second sentence, by striking ‘‘and ‘‘(D) the Secretary provides the organiza- 1128(b)(3) (42 U.S.C. 1320a–7(b)(3)) is amend- determines’’ and all that follows through tion with reasonable notice and opportunity ed— ‘‘such obligations,’’; and for hearing (including the right to appeal an (A) in the heading, by striking ‘‘CONVIC- (2) by striking the third sentence. initial decision) before imposing any sanc- TION’’ and inserting ‘‘MISDEMEANOR CONVIC- SEC. 515. INTERMEDIATE SANCTIONS FOR MEDI- tion or terminating the contract.’’. TION’’; and CARE HEALTH MAINTENANCE ORGA- (4) CONFORMING AMENDMENTS.—Section (B) by striking ‘‘criminal offense’’ and in- NIZATIONS. 1876(i)(6)(B) (42 U.S.C. 1395mm(i)(6)(B)) is serting ‘‘criminal offense consisting of a mis- (a) APPLICATION OF INTERMEDIATE SANC- amended by striking the second sentence. demeanor’’. TIONS FOR ANY PROGRAM VIOLATIONS.— (b) AGREEMENTS WITH PEER REVIEW ORGA- SEC. 512. ESTABLISHMENT OF MINIMUM PERIOD (1) IN GENERAL.—Section 1876(i)(1) (42 NIZATIONS.—Section 1876(i)(7)(A) (42 U.S.C. OF EXCLUSION FOR CERTAIN INDI- U.S.C. 1395mm(i)(1)) is amended by striking 1395mm(i)(7)(A)) is amended by striking ‘‘an VIDUALS AND ENTITIES SUBJECT TO ‘‘the Secretary may terminate’’ and all that agreement’’ and inserting ‘‘a written agree- PERMISSIVE EXCLUSION FROM MED- follows and inserting ‘‘in accordance with ment’’. ICARE AND STATE HEALTH CARE procedures established under paragraph (9), (c) EFFECTIVE DATE.—The amendments PROGRAMS. the Secretary may at any time terminate made by this section shall apply with respect Section 1128(c)(3) (42 U.S.C. 1320a–7(c)(3)) is any such contract or may impose the inter- to contract years beginning on or after Janu- amended by adding at the end the following mediate sanctions described in paragraph ary 1, 1997. new subparagraphs: (6)(B) or (6)(C) (whichever is applicable) on ‘‘(D) In the case of an exclusion of an indi- SEC. 516. ADDITIONAL EXCEPTIONS TO ANTI- the eligible organization if the Secretary de- KICKBACK PENALTIES FOR RISK- vidual or entity under paragraph (1), (2), or termines that the organization— SHARING ARRANGEMENTS. (3) of subsection (b), the period of the exclu- ‘‘(A) has failed substantially to carry out (a) IN GENERAL.—Section 1128B(b)(3) (42 sion shall be 3 years, unless the Secretary the contract; U.S.C. 1320a–7b(b)(3)) is amended— determines in accordance with published reg- ‘‘(B) is carrying out the contract in a man- (1) by striking ‘‘and’’ at the end of subpara- ulations that a shorter period is appropriate ner substantially inconsistent with the effi- graph (D); because of mitigating circumstances or that cient and effective administration of this (2) by striking the period at the end of sub- a longer period is appropriate because of ag- section; or paragraph (E) and inserting ‘‘; and’’; and gravating circumstances. ‘‘(C) no longer substantially meets the ap- (3) by adding at the end the following new ‘‘(E) In the case of an exclusion of an indi- plicable conditions of subsections (b), (c), (e), subparagraph: vidual or entity under subsection (b)(4) or and (f).’’. ‘‘(F) any remuneration between an organi- (b)(5), the period of the exclusion shall not be (2) OTHER INTERMEDIATE SANCTIONS FOR zation and an individual or entity providing less than the period during which the indi- MISCELLANEOUS PROGRAM VIOLATIONS.—Sec- items or services pursuant to a written vidual’s or entity’s license to provide health tion 1876(i)(6) (42 U.S.C. 1395mm(i)(6)) is agreement between the organization and the care is revoked, suspended, or surrendered, amended by adding at the end the following individual or entity if the organization is an or the individual or the entity is excluded or new subparagraph: eligible organization under section 1876, or if suspended from a Federal or State health the written agreement places the individual care program. ‘‘(C) In the case of an eligible organization or entity at substantial financial risk for the ‘‘(F) In the case of an exclusion of an indi- for which the Secretary makes a determina- cost or utilization of the items or services, vidual or entity under subsection (b)(6)(B), tion under paragraph (1) the basis of which is or a combination thereof, which the individ- the period of the exclusion shall be not less not described in subparagraph (A), the Sec- ual or entity is obligated to provide, whether than 1 year.’’. retary may apply the following intermediate sanctions: through a withhold or capitation, or other SEC. 513. PERMISSIVE EXCLUSION OF INDIVID- ‘‘(i) Civil money penalties of not more than similar risk arrangements which places the UALS WITH OWNERSHIP OR CON- individual or entity at substantial financial TROL INTEREST IN SANCTIONED EN- $25,000 for each determination under para- TITIES. graph (1) if the deficiency that is the basis of risk.’’. Section 1128(b) (42 U.S.C. 1320a–7(b)) is the determination has directly adversely af- (b) REGULATIONS.—Section 1128B(b) (42 amended by adding at the end the following fected (or has the substantial likelihood of U.S.C. 1320a–7b(b)) is amended by adding at new paragraph: adversely affecting) an individual covered the end the following new paragraph: ‘‘(15) INDIVIDUALS CONTROLLING A SANC- under the organization’s contract. ‘‘(4) The Secretary, in consultation with TIONED ENTITY.—(A) Any individual— ‘‘(ii) Civil money penalties of not more the Attorney General, not later than 1 year ‘‘(i) who has a direct or indirect ownership than $10,000 for each week beginning after after the date of enactment of Health Insur- or control interest in a sanctioned entity the initiation of procedures by the Secretary ance Reform Act of 1996, and not less than and who knows or should know (as defined in under paragraph (9) during which the defi- every 2 years thereafter, shall promulgate section 1128A(i)(6)) of the action constituting ciency that is the basis of a determination regulations to define substantial financial the basis for the conviction or exclusion de- under paragraph (1) exists. risk as necessary to protect against program scribed in subparagraph (B); or ‘‘(iii) Suspension of enrollment of individ- or patient abuse.’’. ‘‘(ii) who is an officer or managing em- uals under this section after the date the SEC. 517. EFFECTIVE DATE. ployee (as defined in section 1126(b)) of such Secretary notifies the organization of a de- Except as otherwise provided, the amend- an entity. termination under paragraph (1) and until ments made by this subtitle shall take effect ‘‘(B) For purposes of subparagraph (A), the the Secretary is satisfied that the deficiency January 1, 1997. that is the basis for the determination has term ‘sanctioned entity’ means an entity— Subtitle C—Data Collection and been corrected and is not likely to recur.’’. ‘‘(i) that has been convicted of any offense Miscellaneous Provisions described in subsection (a) or in paragraph (3) PROCEDURES FOR IMPOSING SANCTIONS.— SEC. 521. ESTABLISHMENT OF THE HEALTH CARE (1), (2), or (3) of this subsection; or Section 1876(i) (42 U.S.C. 1395mm(i)) is amended by adding at the end the following FRAUD AND ABUSE DATA COLLEC- ‘‘(ii) that has been excluded from partici- TION PROGRAM. new paragraph: pation under a program under title XVIII or (a) IN GENERAL.—Title XI (42 U.S.C. 1301 et ‘‘(9) The Secretary may terminate a con- under a State health care program.’’. seq.), as amended by sections 501 and 505, is tract with an eligible organization under SEC. 514. SANCTIONS AGAINST PRACTITIONERS amended by inserting after section 1128D the this section or may impose the intermediate AND PERSONS FOR FAILURE TO following new section: COMPLY WITH STATUTORY OBLIGA- sanctions described in paragraph (6) on the TIONS. organization in accordance with formal in- ‘‘HEALTH CARE FRAUD AND ABUSE DATA (a) MINIMUM PERIOD OF EXCLUSION FOR vestigation and compliance procedures es- COLLECTION PROGRAM PRACTITIONERS AND PERSONS FAILING TO tablished by the Secretary under which— ‘‘SEC. 1128E. (a) GENERAL PURPOSE.—Not MEET STATUTORY OBLIGATIONS.— ‘‘(A) the Secretary first provides the orga- later than January 1, 1997, the Secretary (1) IN GENERAL.—The second sentence of nization with the reasonable opportunity to shall establish a national health care fraud section 1156(b)(1) (42 U.S.C. 1320c–5(b)(1)) is develop and implement a corrective action and abuse data collection program for the re- amended by striking ‘‘may prescribe)’’ and plan to correct the deficiencies that were the porting of final adverse actions (not includ- inserting ‘‘may prescribe, except that such basis of the Secretary’s determination under ing settlements in which no findings of li- period may not be less than 1 year)’’. paragraph (1) and the organization fails to ability have been made) against health care (2) CONFORMING AMENDMENT.—Section develop or implement such a plan; providers, suppliers, or practitioners as re- 1156(b)(2) (42 U.S.C. 1320c–5(b)(2)) is amended ‘‘(B) in deciding whether to impose sanc- quired by subsection (b), with access as set by striking ‘‘shall remain’’ and inserting tions, the Secretary considers aggravating forth in subsection (c). ‘‘shall (subject to the minimum period speci- factors such as whether an organization has ‘‘(b) REPORTING OF INFORMATION.— fied in the second sentence of paragraph (1)) a history of deficiencies or has not taken ac- ‘‘(1) IN GENERAL.—Each Government agen- remain’’. tion to correct deficiencies the Secretary has cy and health plan shall report any final ad- (b) REPEAL OF ‘‘UNWILLING OR UNABLE’’ brought to the organization’s attention; verse action (not including settlements in CONDITION FOR IMPOSITION OF SANCTION.— ‘‘(C) there are no unreasonable or unneces- which no findings of liability have been Section 1156(b)(1) (42 U.S.C. 1320c–5(b)(1)) is sary delays between the finding of a defi- made) taken against a health care provider, amended— ciency and the imposition of sanctions; and supplier, or practitioner. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3659

‘‘(2) INFORMATION TO BE REPORTED.—The in- tioner Data Bank under the Health Care (1) In the third sentence of subsection (a), formation to be reported under paragraph (1) Quality Improvement Act of 1986 (42 U.S.C. by striking ‘‘programs under title XVIII’’ includes: 11101 et seq.). and inserting ‘‘Federal health care programs ‘‘(A) The name and TIN (as defined in sec- ‘‘(g) DEFINITIONS AND SPECIAL RULES.—For (as defined in section 1128B(f)(1))’’. tion 7701(a)(41) of the Internal Revenue Code purposes of this section: (2) In subsection (f)— of 1986) of any health care provider, supplier, ‘‘(1) FINAL ADVERSE ACTION.— (A) by redesignating paragraph (3) as para- or practitioner who is the subject of a final ‘‘(A) IN GENERAL.—The term ‘final adverse graph (4); and adverse action. action’ includes: (B) by inserting after paragraph (2) the fol- ‘‘(B) The name (if known) of any health ‘‘(i) Civil judgments against a health care lowing new paragraph: care entity with which a health care pro- provider, supplier, or practitioner in Federal ‘‘(3) With respect to amounts recovered vider, supplier, or practitioner is affiliated or State court related to the delivery of a arising out of a claim under a Federal health or associated. health care item or service. care program (as defined in section 1128B(f)), ‘‘(C) The nature of the final adverse action ‘‘(ii) Federal or State criminal convictions the portion of such amounts as is determined and whether such action is on appeal. related to the delivery of a health care item to have been paid by the program shall be re- ‘‘(D) A description of the acts or omissions or service. paid to the program, and the portion of such and injuries upon which the final adverse ac- ‘‘(iii) Actions by Federal or State agencies amounts attributable to the amounts recov- tion was based, and such other information responsible for the licensing and certifi- ered under this section by reason of the as the Secretary determines by regulation is cation of health care providers, suppliers, amendments made by the Health Insurance required for appropriate interpretation of in- and licensed health care practitioners, in- Reform Act of 1996 (as estimated by the Sec- formation reported under this section. cluding— retary) shall be deposited into the Federal ‘‘(3) CONFIDENTIALITY.—In determining ‘‘(I) formal or official actions, such as rev- Hospital Insurance Trust Fund pursuant to what information is required, the Secretary ocation or suspension of a license (and the section 1817(k)(2)(C).’’. shall include procedures to assure that the length of any such suspension), reprimand, (3) In subsection (i)— privacy of individuals receiving health care censure or probation, (A) in paragraph (2), by striking ‘‘title V, services is appropriately protected. ‘‘(II) any other loss of license or the right XVIII, XIX, or XX of this Act’’ and inserting ‘‘(4) TIMING AND FORM OF REPORTING.—The to apply for, or renew, a license of the pro- ‘‘a Federal health care program (as defined information required to be reported under vider, supplier, or practitioner, whether by in section 1128B(f))’’, this subsection shall be reported regularly operation of law, voluntary surrender, non- (B) in paragraph (4), by striking ‘‘a health (but not less often than monthly) and in such renewability, or otherwise, or insurance or medical services program under form and manner as the Secretary pre- ‘‘(III) any other negative action or finding title XVIII or XIX of this Act’’ and inserting scribes. Such information shall first be re- by such Federal or State agency that is pub- ‘‘a Federal health care program (as so de- quired to be reported on a date specified by licly available information. fined)’’, and the Secretary. ‘‘(iv) Exclusion from participation in Fed- (C) in paragraph (5), by striking ‘‘title V, ‘‘(5) TO WHOM REPORTED.—The information eral or State health care programs due to XVIII, XIX, or XX’’ and inserting ‘‘a Federal required to be reported under this subsection program violations. health care program (as so defined)’’. shall be reported to the Secretary. ‘‘(v) Any other adjudicated actions or deci- (4) By adding at the end the following new ‘‘(c) DISCLOSURE AND CORRECTION OF INFOR- sions that the Secretary shall establish by subsection: MATION.— regulation. ‘‘(m)(1) For purposes of this section, with ‘‘(1) DISCLOSURE.—With respect to the in- ‘‘(B) EXCEPTION.—The term does not in- respect to a Federal health care program not formation about final adverse actions (not clude any action with respect to a mal- contained in this Act, references to the Sec- including settlements in which no findings of practice claim. retary in this section shall be deemed to be liability have been made) reported to the ‘‘(2) PRACTITIONER.—The terms ‘licensed references to the Secretary or Administrator Secretary under this section respecting a health care practitioner’, ‘licensed practi- of the department or agency with jurisdic- health care provider, supplier, or practitioner’, and ‘practitioner’ mean, with respect tion over such program and references to the tioner, the Secretary shall, by regulation, to a State, an individual who is licensed or Inspector General of the Department of provide for— otherwise authorized by the State to provide Health and Human Services in this section ‘‘(A) disclosure of the information, upon health care services (or any individual who, shall be deemed to be references to the In- request, to the health care provider, sup- without authority holds himself or herself spector General of the applicable department plier, or licensed practitioner, and out to be so licensed or authorized). or agency. ‘‘(B) procedures in the case of disputed ac- ‘‘(3) GOVERNMENT AGENCY.—The term ‘Gov- ‘‘(2)(A) The Secretary and Administrator of curacy of the information. ernment agency’ shall include: the departments and agencies referred to in ‘‘(2) CORRECTIONS.—Each Government ‘‘(A) The Department of Justice. paragraph (1) may include in any action pur- agency and health plan shall report correc- ‘‘(B) The Department of Health and Human suant to this section, claims within the ju- tions of information already reported about Services. risdiction of other Federal departments or any final adverse action taken against a ‘‘(C) Any other Federal agency that either agencies as long as the following conditions health care provider, supplier, or practi- administers or provides payment for the de- are satisfied: tioner, in such form and manner that the livery of health care services, including, but ‘‘(i) The case involves primarily claims Secretary prescribes by regulation. not limited to the Department of Defense submitted to the Federal health care pro- ‘‘(d) ACCESS TO REPORTED INFORMATION.— and the Veterans’ Administration. grams of the department or agency initiat- ‘‘(1) AVAILABILITY.—The information in ‘‘(D) State law enforcement agencies. ing the action. this database shall be available to Federal ‘‘(E) State medicaid fraud control units. ‘‘(ii) The Secretary or Administrator of the and State government agencies and health ‘‘(F) Federal or State agencies responsible department or agency initiating the action plans pursuant to procedures that the Sec- for the licensing and certification of health gives notice and an opportunity to partici- retary shall provide by regulation. care providers and licensed health care prac- pate in the investigation to the Inspector ‘‘(2) FEES FOR DISCLOSURE.—The Secretary titioners. General of the department or agency with may establish or approve reasonable fees for ‘‘(4) HEALTH PLAN.—The term ‘health plan’ primary jurisdiction over the Federal health the disclosure of information in this has the meaning given such term by section care programs to which the claims were sub- database (other than with respect to re- 1128C(c). mitted. ‘‘(B) If the conditions specified in subpara- quests by Federal agencies). The amount of ‘‘(5) DETERMINATION OF CONVICTION.—For graph (A) are fulfilled, the Inspector General such a fee shall be sufficient to recover the purposes of paragraph (1), the existence of a of the department or agency initiating the full costs of operating the database. Such conviction shall be determined under para- action is authorized to exercise all powers fees shall be available to the Secretary or, in graph (4) of section 1128(i).’’. granted under the Inspector General Act of the Secretary’s discretion to the agency des- (b) IMPROVED PREVENTION IN ISSUANCE OF 1978 with respect to the claims submitted to ignated under this section to cover such MEDICARE PROVIDER NUMBERS.—Section the other departments or agencies to the costs. 1842(r) (42 U.S.C. 1395u(r)) is amended by add- same manner and extent as provided in that ‘‘(e) PROTECTION FROM LIABILITY FOR RE- ing at the end the following new sentence: Act with respect to claims submitted to such PORTING.—No person or entity, including the ‘‘Under such system, the Secretary may im- departments or agencies.’’. agency designated by the Secretary in sub- pose appropriate fees on such physicians to (b) EXCLUDED INDIVIDUAL RETAINING OWN- section (b)(5) shall be held liable in any civil cover the costs of investigation and recertifi- action with respect to any report made as re- ERSHIP OR CONTROL INTEREST IN PARTICIPAT- cation activities with respect to the issuance ING ENTITY.—Section 1128A(a) (42 U.S.C. quired by this section, without knowledge of of the identifiers.’’. the falsity of the information contained in 1320a–7a(a)) is amended— the report. Subtitle D—Civil Monetary Penalties (1) by striking ‘‘or’’ at the end of paragraph ‘‘(f) COORDINATION WITH NATIONAL PRACTI- SEC. 531. SOCIAL SECURITY ACT CIVIL MONE- (1)(D); TIONER DATA BANK.—The Secretary shall im- TARY PENALTIES. (2) by striking ‘‘, or’’ at the end of para- plement this section in such a manner as to (a) GENERAL CIVIL MONETARY PENALTIES.— graph (2) and inserting a semicolon; avoid duplication with the reporting require- Section 1128A (42 U.S.C. 1320a–7a) is amended (3) by striking the semicolon at the end of ments established for the National Practi- as follows: paragraph (3) and inserting ‘‘; or’’; and S3660 CONGRESSIONAL RECORD — SENATE April 18, 1996 (4) by inserting after paragraph (3) the fol- know is likely to influence such individual Security Act, as added by section 501(b), an lowing new paragraph: to order or receive from a particular pro- amount equal to the criminal fines imposed ‘‘(4) in the case of a person who is not an vider, practitioner, or supplier any item or under section 1347 of title 18, United States organization, agency, or other entity, is ex- service for which payment may be made, in Code (relating to health care fraud). cluded from participating in a program whole or in part, under title XVIII, or a under title XVIII or a State health care pro- State health care program (as so defined);’’. SEC. 542. FORFEITURES FOR FEDERAL HEALTH CARE OFFENSES. gram in accordance with this subsection or (2) REMUNERATION DEFINED.—Section under section 1128 and who, at the time of a 1128A(i) (42 U.S.C. 1320a–7a(i)) is amended by (a) IN GENERAL.—Section 982(a) of title 18, violation of this subsection— adding the following new paragraph: United States Code, is amended by adding ‘‘(i) retains a direct or indirect ownership ‘‘(6) The term ‘remuneration’ includes the after paragraph (5) the following new para- or control interest in an entity that is par- waiver of coinsurance and deductible graph: ticipating in a program under title XVIII or amounts (or any part thereof), and transfers ‘‘(6)(A) The court, in imposing sentence on a State health care program, and who knows of items or services for free or for other than or should know of the action constituting fair market value. The term ‘remuneration’ a person convicted of a Federal health care the basis for the exclusion; or does not include— offense, shall order the person to forfeit ‘‘(ii) is an officer or managing employee (as ‘‘(A) the waiver of coinsurance and deduct- property, real or personal, that constitutes defined in section 1126(b)) of such an en- ible amounts by a person, if— or is derived, directly or indirectly, from tity;’’. ‘‘(i) the waiver is not offered as part of any gross proceeds traceable to the commission (c) MODIFICATIONS OF AMOUNTS OF PEN- advertisement or solicitation; of the offense. ALTIES AND ASSESSMENTS.—Section 1128A(a) ‘‘(ii) the person does not routinely waive ‘‘(B) For purposes of this paragraph, the (42 U.S.C. 1320a–7a(a)), as amended by sub- coinsurance or deductible amounts; and term ‘Federal health care offense’ means a section (b), is amended in the matter follow- ‘‘(iii) the person— violation of, or a criminal conspiracy to vio- ing paragraph (4)— ‘‘(I) waives the coinsurance and deductible late— (1) by striking ‘‘$2,000’’ and inserting amounts after determining in good faith that ‘‘(i) section 1347 of this title; ‘‘$10,000’’; the individual is in financial need; ‘‘(ii) section 1128B of the Social Security (2) by inserting ‘‘; in cases under paragraph ‘‘(II) fails to collect coinsurance or deduct- Act; and (4), $10,000 for each day the prohibited rela- ible amounts after making reasonable collec- ‘‘(iii) sections 287, 371, 664, 666, 669, 1001, tionship occurs’’ after ‘‘false or misleading tion efforts; or 1027, 1341, 1343, 1920, or 1954 of this title if the information was given’’; and ‘‘(III) provides for any permissible waiver violation or conspiracy relates to health care (3) by striking ‘‘twice the amount’’ and in- as specified in section 1128B(b)(3) or in regu- fraud.’’. serting ‘‘3 times the amount’’. lations issued by the Secretary; (d) CLAIM FOR ITEM OR SERVICE BASED ON ‘‘(B) differentials in coinsurance and de- (b) CONFORMING AMENDMENT.—Section INCORRECT CODING OR MEDICALLY UNNECES- ductible amounts as part of a benefit plan 982(b)(1)(A) of title 18, United States Code, is SARY SERVICES.—Section 1128A(a)(1) (42 design as long as the differentials have been amended by inserting ‘‘or (a)(6)’’ after U.S.C. 1320a–7a(a)(1)), as amended by sub- disclosed in writing to all beneficiaries, third ‘‘(a)(1)’’. section (b), is amended— party payers, and providers, to whom claims (c) PROPERTY FORFEITED DEPOSITED IN FED- (1) in subparagraph (A) by striking are presented and as long as the differentials ERAL HOSPITAL INSURANCE TRUST FUND.— ‘‘claimed,’’ and inserting ‘‘claimed, including meet the standards as defined in regulations (1) IN GENERAL.—After the payment of the any person who engages in a pattern or prac- promulgated by the Secretary not later than costs of asset forfeiture has been made, and tice of presenting or causing to be presented 180 days after the date of the enactment of notwithstanding any other provision of law, a claim for an item or service that is based the Health Insurance Reform Act of 1996; or the Secretary of the Treasury shall deposit on a code that the person knows or should ‘‘(C) incentives given to individuals to pro- into the Federal Hospital Insurance Trust know will result in a greater payment to the mote the delivery of preventive care as de- Fund pursuant to section 1817(k)(2)(C) of the person than the code the person knows or termined by the Secretary in regulations so Social Security Act, as added by section should know is applicable to the item or promulgated.’’. 501(b), an amount equal to the net amount service actually provided,’’; (h) EFFECTIVE DATE.—The amendments realized from the forfeiture of property by (2) in subparagraph (C), by striking ‘‘or’’ at made by this section shall take effect Janu- reason of a Federal health care offense pur- the end; ary 1, 1997. suant to section 982(a)(6) of title 18, United (3) in subparagraph (D), by striking the Subtitle E—Amendments to Criminal Law States Code. semicolon and inserting ‘‘, or’’; and (2) COSTS OF ASSET FORFEITURE.—For pur- (4) by inserting after subparagraph (D) the SEC. 541. HEALTH CARE FRAUD. poses of paragraph (1), the term ‘‘payment of following new subparagraph: (a) IN GENERAL.— the costs of asset forfeiture’’ means— ‘‘(E) is for a medical or other item or serv- (1) FINES AND IMPRISONMENT FOR HEALTH (A) the payment, at the discretion of the ice that a person knows or should know is CARE FRAUD VIOLATIONS.—Chapter 63 of title Attorney General, of any expenses necessary not medically necessary; or’’. 18, United States Code, is amended by adding (e) SANCTIONS AGAINST PRACTITIONERS AND at the end the following new section: to seize, detain, inventory, safeguard, main- PERSONS FOR FAILURE TO COMPLY WITH STAT- ‘‘§ 1347. Health care fraud tain, advertise, sell, or dispose of property under seizure, detention, or forfeited, or of UTORY OBLIGATIONS.—Section 1156(b)(3) (42 ‘‘Whoever knowingly and willfully exe- U.S.C. 1320c–5(b)(3)) is amended by striking cutes, or attempts to execute, a scheme or any other necessary expenses incident to the ‘‘the actual or estimated cost’’ and inserting artifice— seizure, detention, forfeiture, or disposal of ‘‘up to $10,000 for each instance’’. ‘‘(1) to defraud any health care program, in such property, including payment for— (f) PROCEDURAL PROVISIONS.—Section connection with the delivery of or payment (i) contract services, 1876(i)(6) (42 U.S.C. 1395mm(i)(6)), as amended for health care benefits, items, or services; (ii) the employment of outside contractors by section 515(a)(2), is amended by adding at or to operate and manage properties or provide the end the following new subparagraph: ‘‘(2) to obtain, by means of false or fraudu- other specialized services necessary to dis- ‘‘(D) The provisions of section 1128A (other lent pretenses, representations, or promises, pose of such properties in an effort to maxi- than subsections (a) and (b)) shall apply to a any of the money or property owned by, or mize the return from such properties; and civil money penalty under subparagraph under the custody or control of, any health (iii) reimbursement of any Federal, State, (B)(i) or (C)(i) in the same manner as such care program in connection with the delivery or local agency for any expenditures made to provisions apply to a civil money penalty or of or payment for health care benefits, perform the functions described in this sub- proceeding under section 1128A(a).’’. items, or services; paragraph; (g) PROHIBITION AGAINST OFFERING INDUCE- (B) at the discretion of the Attorney Gen- shall be fined under this title or imprisoned MENTS TO INDIVIDUALS ENROLLED UNDER PRO- eral, the payment of awards for information not more than 10 years, or both. If the viola- GRAMS OR PLANS.— or assistance leading to a civil or criminal tion results in serious bodily injury (as de- (1) OFFER OF REMUNERATION.—Section forfeiture involving any Federal agency par- 1128A(a) (42 U.S.C. 1320a–7a(a)), as amended fined in section 1365(g)(3) of this title), such ticipating in the Health Care Fraud and by subsection (b), is amended— person may be imprisoned for any term of Abuse Control Account; (A) by striking ‘‘or’’ at the end of para- years.’’. (C) the compromise and payment of valid graph (1)(D); (2) CLERICAL AMENDMENT.—The table of liens and mortgages against property that (B) by striking the semicolon at the end of sections at the beginning of chapter 63 of has been forfeited, subject to the discretion paragraph (4) and inserting ‘‘; or’’; and title 18, United States Code, is amended by of the Attorney General to determine the va- (C) by inserting after paragraph (4) the fol- adding at the end the following: lidity of any such lien or mortgage and the lowing new paragraph: ‘‘1347. Health care fraud.’’. amount of payment to be made, and the em- ‘‘(5) offers to or transfers remuneration to (b) CRIMINAL FINES DEPOSITED IN FEDERAL ployment of attorneys and other personnel any individual eligible for benefits under HOSPITAL INSURANCE TRUST FUND.—The Sec- skilled in State real estate law as necessary; title XVIII of this Act, or under a State retary of the Treasury shall deposit into the (D) payment authorized in connection with health care program (as defined in section Federal Hospital Insurance Trust Fund pur- remission or mitigation procedures relating 1128(h)) that such person knows or should suant to section 1817(k)(2)(C) of the Social to property forfeited; and April 18, 1996 CONGRESSIONAL RECORD — SENATE S3661 (E) the payment of State and local prop- ‘‘§ 669. Theft or embezzlement in connection ‘‘(3) Service may be made upon a domestic erty taxes on forfeited real property that ac- with health care or foreign association which is subject to crued between the date of the violation giv- ‘‘Whoever willfully embezzles, steals, or suit under a common name, by delivering the ing rise to the forfeiture and the date of the otherwise willfully and unlawfully converts subpoena to an officer, to a managing or gen- forfeiture order. to the use of any person other than the eral agent, or to any other agent authorized SEC. 543. INJUNCTIVE RELIEF RELATING TO FED- rightful owner, or intentionally misapplies by appointment or by law to receive service ERAL HEALTH CARE OFFENSES. any of the moneys, funds, securities, pre- of process. (a) IN GENERAL.—Section 1345(a)(1) of title miums, credits, property, or other assets of a ‘‘(4) The affidavit of the person serving the 18, United States Code, is amended— health care program, shall be fined under subpoena entered on a true copy thereof by (1) by striking ‘‘or’’ at the end of subpara- this title or imprisoned not more than 10 the person serving it shall be proof of serv- graph (A); years, or both.’’. ice. (2) by inserting ‘‘or’’ at the end of subpara- (b) CLERICAL AMENDMENT.—The table of ‘‘(c)(1) In the case of contumacy by or re- graph (B); and sections at the beginning of chapter 31 of fusal to obey a subpoena issued to any per- (3) by adding at the end the following new title 18, United States Code, is amended by son, the Attorney General may invoke the subparagraph: adding at the end the following: aid of any court of the United States within ‘‘(C) committing or about to commit a ‘‘669. Theft or Embezzlement in Connection the jurisdiction of which the investigation is Federal health care offense (as defined in with Health Care.’’. carried on or of which the subpoenaed person section 982(a)(6)(B) of this title);’’. is an inhabitant, or in which such person car- SEC. 547. LAUNDERING OF MONETARY INSTRU- ries on business or may be found, to compel (b) FREEZING OF ASSETS.—Section 1345(a)(2) MENTS. of title 18, United States Code, is amended by Section 1956(c)(7) of title 18, United States compliance with the subpoena. ‘‘(2) The court may issue an order requir- inserting ‘‘or a Federal health care offense Code, is amended by adding at the end the ing the subpoenaed person to appear before (as defined in section 982(a)(6)(B))’’ after following new subparagraph: the Attorney General to produce records, if ‘‘title)’’. ‘‘(F) Any act or activity constituting an so ordered, or to give testimony required offense involving a Federal health care of- SEC. 544. FALSE STATEMENTS. under subsection (a)(1)(B). fense as that term is defined in section (a) IN GENERAL.—Chapter 47 of title 18, ‘‘(3) Any failure to obey the order of the 982(a)(6)(B) of this title.’’. United States Code, is amended by adding at court may be punished by the court as a con- the end the following new section: SEC. 548. AUTHORIZED INVESTIGATIVE DEMAND tempt thereof. PROCEDURES. ‘‘(4) All process in any such case may be ‘‘§ 1033. False statements relating to health (a) IN GENERAL.—Chapter 233 of title 18, care matters served in any judicial district in which such United States Code, is amended by adding person may be found. ‘‘Whoever, in any matter involving a after section 3485 the following new section: ‘‘(d) Notwithstanding any Federal, State, health care program, knowingly and will- ‘‘§ 3486. Authorized investigative demand pro- or local law, any person, including officers, fully— cedures agents, and employees, receiving a subpoena ‘‘(1) falsifies, conceals, or covers up by any ‘‘(a)(1)(A) In any investigation relating to under this section, who complies in good trick, scheme, or device a material fact, or functions set forth in paragraph (2), the At- faith with the subpoena and thus produces ‘‘(2) makes any materially false, fictitious, torney General or designee may issue in the materials sought, shall not be liable in or fraudulent statement or representation, writing and cause to be served a subpoena any court of any State or the United States or makes or uses any materially false writ- compelling production of any records (in- to any customer or other person for such ing or document knowing the same to concluding any books, papers, documents, elec- production or for nondisclosure of that pro- tain any materially false, fictitious, or tronic media, or other objects or tangible duction to the customer. fraudulent statement or entry, things), which may be relevant to an author- ‘‘(e)(1) Health information about an indi- shall be fined under this title or imprisoned ized law enforcement inquiry, that a person vidual that is disclosed under this section not more than 5 years, or both.’’. or legal entity may possess or have care, cus- may not be used in, or disclosed to any per- (b) CLERICAL AMENDMENT.—The table of tody, or control. son for use in, any administrative, civil, or sections at the beginning of chapter 47 of ‘‘(B) A custodian of records may be re- criminal action or investigation directed title 18, United States Code, is amended by quired to give testimony concerning the pro- against the individual who is the subject of adding at the end the following: duction and authentication of such records. the information unless the action or inves- ‘‘1033. False statements relating to health ‘‘(C) The production of records may be re- tigation arises out of and is directly related care matters.’’. quired from any place in any State or in any to receipt of health care or payment for territory or other place subject to the juris- health care or action involving a fraudulent SEC. 545. OBSTRUCTION OF CRIMINAL INVES- TIGATIONS OF FEDERAL HEALTH diction of the United States at any des- claim related to health; or if authorized by CARE OFFENSES. ignated place; except that such production an appropriate order of a court of competent shall not be required more than 500 miles dis- jurisdiction, granted after application show- (a) IN GENERAL.—Chapter 73 of title 18, United States Code, is amended by adding at tant from the place where the subpoena is ing good cause therefor. ‘‘(2) In assessing good cause, the court the end the following new section: served. ‘‘(D) Witnesses summoned under this sec- shall weigh the public interest and the need ‘‘§ 1518. Obstruction of criminal investigation shall be paid the same fees and mileage for disclosure against the injury to the pa- tions of Federal health care offenses that are paid witnesses in the courts of the tient, to the physician-patient relationship, ‘‘(a) Whoever willfully prevents, obstructs, United States. and to the treatment services. misleads, delays or attempts to prevent, ob- ‘‘(E) A subpoena requiring the production ‘‘(3) Upon the granting of such order, the struct, mislead, or delay the communication of records shall describe the objects required court, in determining the extent to which of information or records relating to a Fed- to be produced and prescribe a return date any disclosure of all or any part of any eral health care offense to a criminal inves- within a reasonable period of time within record is necessary, shall impose appropriate tigator shall be fined under this title or im- which the objects can be assembled and made safeguards against unauthorized disclo- prisoned not more than 5 years, or both. available. sure.’’. ‘‘(b) As used in this section the term ‘Fed- ‘‘(2) Investigative demands utilizing an ad- (b) CLERICAL AMENDMENT.—The table of eral health care offense’ has the same mean- ministrative subpoena are authorized for any sections for chapter 223 of title 18, United ing given such term in section 982(a)(6)(B) of investigation with respect to any act or ac- States Code, is amended by inserting after this title. tivity constituting or involving health care the item relating to section 3405 the follow- ‘‘(c) As used in this section the term fraud, including a scheme or artifice— ing new item: ‘criminal investigator’ means any individual ‘‘(A) to defraud any health care program, ‘‘3486. Authorized investigative demand pro- duly authorized by a department, agency, or in connection with the delivery of or pay- cedures’’. ment for health care benefits, items, or serv- armed force of the United States to conduct (c) CONFORMING AMENDMENT.—Section or engage in investigations for prosecutions ices; or 1510(b)(3)(B) of title 18, United States Code, is for violations of health care offenses.’’. ‘‘(B) to obtain, by means of false or fraudu- amended by inserting ‘‘or a Department of (b) CLERICAL AMENDMENT.—The table of lent pretenses, representations, or promises, Justice subpoena (issued under section sections at the beginning of chapter 73 of any of the money or property owned by, or 3486),’’ after ‘‘subpoena’’. title 18, United States Code, is amended by under the custody or control of, any health adding at the end the following: care program in connection with the delivery of or payment for health care benefits, KASSEBAUM AMENDMENT NO. 3677 ‘‘1518. Obstruction of Criminal Investigations items, or services. of Federal Health Care Of- Mrs. KASSEBAUM proposed an ‘‘(b)(1) A subpoena issued under this sec- amendment to amendment No. 3676 fenses.’’. tion may be served by any person designated proposed by Mr. DOLE to amendment SEC. 546. THEFT OR EMBEZZLEMENT. in the subpoena to serve it. (a) IN GENERAL.—Chapter 31 of title 18, ‘‘(2) Service upon a natural person may be No. 3675 proposed by Mrs. KASSEBAUM United States Code, is amended by adding at made by personal delivery of the subpoena to to the bill S. 1028, supra; as follows: the end the following new section: such person. Strike subtitle C of title IV. S3662 CONGRESSIONAL RECORD — SENATE April 18, 1996 BROWN AMENDMENT NO. 3678 Round Agreements Act (Public Law 103–465; to collect or terminate collection actions on 108 Stat. 4983) shall be awarded to a patentee the debt or claim. Mr. BROWN proposed an amendment only if there has been— ‘‘(2) Paragraph (1) shall not apply— to the bill S. 1028, supra; as follows: (1) the commercial manufacture, use, offer ‘‘(A) to any debt or claim that— At the appropriate place in title III, insert to sell, or sale, within the United States of ‘‘(i) is in litigation or foreclosure; the following: an approved drug that is the subject of an ap- ‘‘(ii) will be disposed of under an asset sales program within 1 year after the date SEC. . EQUITABLE TREATMENT FOR THE GE- plication described in subsection (b); or NERIC DRUG INDUSTRY. (2) the importation by the applicant into the debt or claim is first delinquent, or a (a) SENSE OF THE SENATE.—It is the sense the United States of an approved drug or of greater period of time if a delay would be in of the Senate that the generic drug industry active ingredient used in an approved drug the best interests of the United States, as de- should be provided equitable relief in the that is the subject of an application determined by the Secretary of the Treasury; ‘‘(iii) has been referred to a private collec- same manner as other industries are pro- scribed in subsection (b). tion contractor for collection for a period of vided with such relief under the patent tran- (g) APPLICABILITY.—The provisions of this time determined by the Secretary of the sitional provisions of section 154(c) of title section shall govern the approval or effective date of approval of all pending applications Treasury; 35, United States Code, as amended by sec- ‘‘(iv) has been referred by, or with the con- that have not received final approval as of tion 532 of the Uruguay Round Agreements sent of, the Secretary of the Treasury to a the date of enactment of this Act. Act of 1994 (Public Law 103–465; 108 Stat. debt collection center for a period of time 4983). determined by the Secretary of the Treas- (b) APPROVAL OF APPLICATIONS OF GENERIC JEFFORDS AMENDMENT NO. 3679 ury; or DRUGS.—For purposes of acceptance of con- Mr. JEFFORDS proposed an amend- ‘‘(v) will be collected under internal offset, sideration by the Secretary of an application if such offset is sufficient to collect the under subsections (b), (c), and (j) of section ment to the bill S. 1028, supra; as fol- claim within 3 years after the date the debt 505, and subsections (b), (c), and (n) of sec- lows: or claim is first delinquent; and tion 512, of the Federal Food, Drug, and Cos- At the end of section 103, add the following ‘‘(B) to any other specific class of debt or metic Act (21 U.S.C. 355 (b), (c), and (j), and new subsection: claim, as determined by the Secretary of the 360b (b), (c), and (n)), the expiration date of ‘‘(g) LIMITATION ON LIFETIME AGGREGATE Treasury at the request of the head of an ex- a patent that is the subject of a certification LIMITS.— ecutive, judicial, or legislative agency or under section 505(b)(2)(A) (ii), (iii), or (iv), ‘‘(1) IN GENERAL.—Except as provided in otherwise. section 505(j)(2)(A)(vii) (II), (III), (IV), or sec- paragraph (2), an employee health benefit ‘‘(3) For purposes of this section, the Sec- tion 512(n)(1)(H) (ii), (iii), or (iv) of such Act, plan or a health plan issuer offering a group retary of the Treasury may designate, and respectively, made in an application submit- health plan may not impose an aggregate withdraw such designation of debt collection ted prior to June 8, 1995, shall be deemed to dollar lifetime limit of less than $10,000,000 centers operated by other Federal agencies. be the date on which such patent would have (such amount to be adjusted for inflation in The Secretary of the Treasury shall des- expired under the law in effect on the day fiscal years subsequent to the fiscal year in ignate such centers on the basis of their per- preceding December 8, 1994. which this subsection becomes effective) formance in collecting delinquent claims (c) MARKETING GENERIC DRUGS.—The rem- with respect to coverage under the plan. owed to the Government. edies of section 271(e)(4) of title 35, United ‘‘(2) SMALL EMPLOYERS.—Paragraph (1) ‘‘(4) At the discretion of the Secretary of States Code, shall not apply to acts— shall not apply to a group health plan offered the Treasury, referral of a nontax claim may (1) that were commenced, or for which a to or maintained for employees of a single be made to— substantial investment was made prior to employer that employs 25 or fewer employ- ‘‘(A) any executive department or agency June 8, 1995; and ees. operating a debt collection center for servic- (2) that became infringing by reason of sec- ‘‘(3) RULE OF CONSTRUCTION.—Paragraph (1) ing, collection, compromise, or suspension or tion 154(c)(1) of such title, as amended by shall not be construed as prohibiting the ap- termination of collection action; section 532 of the Uruguay Round Agree- plication by an employee health benefit plan ‘‘(B) a contractor operating under a con- ments Act (Public Law 103–465; 108 Stat. or a health plan issuer offering a group tract for servicing or collection action; or 4983). health plan of any limits, exclusions, or ‘‘(C) the Department of Justice for litigation. (d) SUBSTANTIAL INVESTMENT.—For pur- other forms of cost containment mechanisms ‘‘(5) nontax claims referred or transferred poses of this Act and section 154(c)(2)(A) of with respect to coverage under the plan under this section shall be serviced, col- title 35, United States Code, with respect to other than the aggregate limit permitted a product that is subject to the requirements lected, or compromised, or collection action under paragraph (1). thereon suspended or terminated, in accord- of subsections (b)(2) or (j) of section 505, or of ‘‘(4) DISCLOSURE.—Any limits, exclusions, ance with otherwise applicable statutory re- subsections (b) (2) and (n) of section 512, of or other cost containment mechanisms per- quirements and authorities. Executive de- the Federal Food, Drug, and Cosmetic Act mitted under paragraph (3) shall be disclosed partments and agencies operating debt col- (21 U.S.C. 355(b)(2) and (j), and 360(b)(2) and as provided for in section 105(c). lection centers may enter into agreements (n), the submission of an application de- ‘‘(5) APPLICATION OF SUBSECTION.—This sub- with the Secretary of the Treasury to carry scribed in subsection (b), and only the subsection shall not apply to health mainte- out the purposes of this subsection. The Sec- mission of such an applications, shall con- nance organization that meets the require- retary of the Treasury shall— stitute substantial investment. ments of title XIV of the Public Health Serv- ‘‘(A) maintain competition in carrying out (e) NOTICE.— ice Act. this subsection; (1) IN GENERAL.—Unless the notice required ‘‘(6) EFFECTIVE DATE.—This paragraph shall ‘‘(B) maximize collections of delinquent by this subsection has previously been pro- become effective with respect to health plans debts by placing delinquent debts quickly; vided, when an applicant submitting an ap- on the date that is 2 years after the date of ‘‘(C) maintain a schedule of contractors plication described in subsection (b) receives enactment of this Act.’’. and debt collection centers eligible for refer- notice from the Secretary that the applica- At the end of section 105, add the following ral of claims; and tion has been tentatively approved, such ap- new subsection: ‘‘(D) refer delinquent debts to the person plicant shall give notice of such application ‘‘(c) DISCLOSURE OF LIMITS AND EXCLU- most appropriate to collect the type or to— SIONS.—An employee health benefit plan or a amount of claim involved. (A) each owner of the patent which is the health plan issuer offering a group health ‘‘(6) Any agency operating a debt collec- subject of the certification or the represent- plan shall disclose, as part of its solicitation tion center to which nontax claims are re- ative of such owner designated to receive and sales materials and in a form and man- ferred or transferred under this subsection such notice; and ner that is conspicuous and understandable may charge a fee sufficient to cover the full (B) the holder of the approved application to a reasonable individual, any limits, exclu- cost of implementing this subsection. The under section 505(b) or section 512(c)(1), re- sions, or cost containment mechanisms with agency transferring or referring the nontax spectively, for the drug which is claimed by respect to coverage provided under the claim shall be charged the fee, and the agen- the patent or a use of which is claimed by plan.’’. cy charging the fee shall collect such fee by the patent or the representative of such Section 3711 of title 31, United States Code, retaining the amount of the fee from holder designated to receive such notice. is amended by adding at the end the follow- amounts collected pursuant to this sub- (2) CERTIFICATION OF NOTICE.—The appli- ing new subsections: section. Agencies may agree to pay through cant shall certify to the Secretary the date ‘‘(g)(1) If a nontax debt or claim owed to a different method, or to fund an activity that such notice is given. The approval of the United States has been delinquent for a from another account or from revenue re- such application by the Secretary shall not period of 180 days— ceived from the procedure described under be made effective until 7 calendar days after ‘‘(A) the head of the executive, judicial, or section 3720C of this title. Amounts charged the date so certified by such applicant. legislative agency that administers the pro- under this subsection concerning delinquent (f) EQUITABLE REMUNERATION.—For acts de- gram that gave rise to the debt or claim claims may be considered as costs pursuant scribed in subsection (c), equitable remu- shall transfer the debt or claim to the Sec- to section 3717(e) of this title. neration of the type described in section retary of the Treasury; and ‘‘(7) Notwithstanding any other law con- 154(c)(3) of title 35, United States Code, as ‘‘(B) upon such transfer the Secretary of cerning the depositing and collection of Fed- amended by section 532 of the Uruguay the Treasury shall take appropriate action eral payments, including section 3302(b) of April 18, 1996 CONGRESSIONAL RECORD — SENATE S3663 this title, agencies collecting fees may re- Sec. 202. House of Representatives as Legis- Office and/or the Department of the Treasury tain the fees from amounts collected. Any lative Agency. without change; or fee charged pursuant to this subsection shall Sec. 203. Exemption From Computer Match- ‘‘(2) prescribe independent regulations on be deposited into an account to be deter- ing Requirements Under the collecting by administrative offset consist- mined by the executive department or agen- Privacy Act of 1974. ent with the regulations promulgated under cy operating the debt collection center Sec. 204. Technical and Conforming Amend- paragraph (1).’’; charging the fee (in this subsection referred ments. (2) by amending subsection (c)(2) to read as to in this section as the ‘Account’). Amounts Subchapter B—Salary Offset Authority follows: deposited in the Account shall be available Sec. 301. Enhancement of Salary Offset Au- ‘‘(2) when a statute explicitly prohibits until expended to cover costs associated with thority. using administrative ‘offset’ or ‘setoff’ to the implementation and operation of Gov- collect the claim or type of claim involved.’’; ernmentwide debt collection activities. Costs Subchapter C—Taxpayer Identifying Numbers (3) by redesignating subsection (c) as sub- properly chargeable to the Account include— section (d); and Sec. 401. Access to Taxpayer Identifying ‘‘(A) the costs of computer hardware and (4) by inserting after subsection (b) the fol- Numbers. software, word processing and telecommuni- lowing new subsection: cations equipment, and other equipment, Sec. 402. Barring Delinquent Federal Debtors ‘‘(c)(1)(A) Except as provided in subpara- supplies, and furniture; from Obtaining Federal Loans graphs (B) or (C), a disbursing official of the ‘‘(B) personnel training and travel costs; or Loan Guarantees. Department of the Treasury, the Department ‘‘(C) other personnel and administrative Subchapter D—Expanding Collection Au- costs; of Defense, the United States Postal Service, thorities and Government-Wide Cross- or any disbursing official of the United ‘‘(D) the costs of any contract for identi- Servicing fication, billing, or collection services; and States designated by the Secretary of the ‘‘(E) reasonable costs incurred by the Sec- Sec. 501. Expanding Collection Authorities Treasury, is authorized to offset the amount retary of the Treasury, including services Under the Debt Collection Act of a payment which a payment certifying and utilities provided by the Secretary, and of 1982. agency has certified to the disbursing offi- administration of the Account. Sec. 502. Government-wide Cross-servicing. cial for disbursement by an amount equal to ‘‘(8) Not later than January 1 of each year, Sec. 503. Compromise of Claims. the amount of a claim which a creditor agen- there shall be deposited into the Treasury as Subchapter E—Federal Civil Monetary cy has certified to the Secretary of the miscellaneous receipts an amount equal to Penalties Treasury pursuant to this subsection. the amount of unobligated balances remain- Sec. 601. Adjusting Federal Civil Monetary ‘‘(B) An agency that designates disbursing ing in the Account at the close of business Penalties for Inflation. officials pursuant to section 3321(c) of this title is not required to certify claims arising on September 30 of the preceding year, minus Subchapter F—Gain Sharing any part of such balance that the executive out of its operations to the Secretary of the Sec. 701. Debt Collection Improvement Ac- department or agency operating the debt col- Treasury before such agency’s disbursing of- count. lection center determines is necessary to ficials offset such claims. cover or defray the costs under this sub- Subchapter G—Tax Refund Offset Authority ‘‘(C) Payments certified by the Department section for the fiscal year in which the de- Sec. 801. Offset of Tax Refund Payment by of Education under a program administered posit is made. Disbursing Officials. by the Secretary of Education under Title IV ‘‘(9) To carry out the purposes of this sub- Sec. 802. Expanding Tax Refund Offset Au- of the Higher Education Act of 1965, as section, the Secretary of the Treasury may thority. amended, shall not be subject to offset under prescribe such rules, regulations, and proce- Sec. 803. Expanding Authority to Collect this subsection. dures as the Secretary considers necessary. Past-due Support. ‘‘(2) Neither the disbursing official nor the ‘‘(h)(1) The head of an executive, judicial, Subchapter H—Definitions, Due Process payment certifying agency shall be liable— or legislative agency acting under subsection Rights, and Severability (A) for the amount of the offset on the (a) (1), (2), or (3) of this section to collect a basis that the underlying obligation, rep- Sec. 901. Technical Amendments to Defini- claim, compromise a claim, or terminate col- resented by the payment before the offset tions. lection action on a claim may obtain a was taken, was not satisfied; or consumer report (as that term is defined in Sec. 902. Severability. Sec. 903. Scope. (B) for failure to provide timely notice section 603 of the Fair Credit Reporting Act under paragraph (8). (15 U.S.C. 1681a)) or comparable credit infor- Subchapter I—Reporting ‘‘(3)(A) Notwithstanding any other provi- mation on any person who is liable for the Sec. 1001. Monitoring and Reporting. sion of law (including sections 207 and claim. TITLE II—JUSTICE DEBT MANAGEMENT 1631(d)(1) of the Act of August 14, 1935 (42 ‘‘(2) The obtaining of a consumer report Subchapter A—Private Attorneys U.S.C. 407 and 1383(d)(1)), section 413(b) of under this subsection is deemed to be a cir- Public Law 91–173 (30 U.S.C. 923(b)) and sec- cumstance or purpose authorized or listed Sec. 1101. Expanded Use of Private Attor- tion 14 of the Act of August 29, 1935 (45 U.S.C. under section 604 of the Fair Credit Report- neys. 231m)), all payments due under the Social ing Act (15 U.S.C. 1681b).’’. Subchapter B—Nonjudicial Foreclosure Security Act, Part B of the Black Lung Ben- Sec. 1201. Nonjudicial Foreclosure of Mort- efits Act, or under any law administered by JEFFORDS AMENDMENT NO. 3680 gages. the Railroad Retirement Board, shall be sub- Mr. JEFFORDS proposed an amend- TITLE III—IRS LEVY AUTHORITY ject to offset under this section. ‘‘(B) An amount of $10,000 which a debtor Sec. 1301. Provision for Continuous Levy. ment to amendment No. 3679 proposed may receive under Federal benefit programs Sec. 1302. Modification of Levy Exemption. by him to the bill S. 1028, supra; as fol- cited under subparagraph (A) within a 12- Sec. 1303. Confidentiality and Disclosure of lows: month period shall be exempt from offset Returns and Return Informa- (Purpose: To reduce delinquencies and to im- under this subsection. In applying the $10,000 tion. prove debt-collection activities govern- exemption, the disbursing official shall: ment-wide, and for other purposes) TITLE I—GENERAL DEBT COLLECTION ‘‘(i) Apply a prorated amount of the exemp- INITIATIVES Strike pages 4, 5, and 6 of amendment No. tion to each periodic benefit payment to be 3679, and insert: Subchapter A—General Offset Authority made to debtor during the applicable 12- SEC. 101. SHORT TITLE. SEC. 201. ENHANCEMENT OF ADMINISTRATIVE month period; and This Act may be cited as the ‘‘Debt Collec- OFFSET AUTHORITY. ‘‘(ii) Consider all benefit payments made tion Improvement Act of 1995’’. (a) Section 3701(c) of title 31, United States during the applicable 12-month period which SEC. 102. EFFECTIVE DATE. Code, is amended to read as follows: are exempt from offset under this subsection (a) Except as provided in subsection (b), ‘‘(c) In sections 3716 and 3717 of this title, as part of the $10,000 exemption. the provisions of this Act and the amend- the term ‘person’ does not include an agency ‘‘For purposes of the preceding sentence, ments made by this Act shall become effec- of the United States government, or of a unit the amount of a periodic benefit payment tive October 1, 1995. of general local government.’’. shall be the amount after any reduction or (b) The amendments made by title III of (b) Section 3716 of title 31, United States deduction required under the laws authoriz- this Act shall become effective for levies is- Code, is amended— ing the program under which such payment sued after the date of enactment of this Act. (1) by amending subsection (b) to read as is authorized to be made (including any re- follows: duction or deduction to recover any overpay- SEC. 103. TABLE OF CONTENTS. ‘‘(b) Before collecting a claim by adminis- ment under such program). TITLE I—GENERAL DEBT COLLECTION trative offset, the head of an executive, leg- ‘‘(C) The Secretary of the Treasury shall INITIATIVES islative, or judicial agency must either— exempt means-tested programs when noti- Subchapter A—General Offset Authority ‘‘(1) adopt regulations on collecting by ad- fied by the head of the respective agency. Sec. 201. Enhancement of Administrative ministrative offset promulgated by the De- The Secretary may exempt other payments Offset Authority. partment of Justice, the General Accounting from offset under this subsection upon the S3664 CONGRESSIONAL RECORD — SENATE April 18, 1996 written request of the head of a payment cer- shall take reasonable steps, as determined by (2) in subparagraph (B), by adding ‘‘and to tifying agency. A written request for exemp- the Secretary of the Treasury, to provide the officers and employees of the Department of tion of other payments must provide jus- notice to the payee not later than the date the Treasury in connection with such reduc- tification for the exemption under the stand- on which the payee is otherwise scheduled to tion’’ after ‘‘agency’’. ards prescribed by the Secretary. Such receive the payment, or as soon as practical Subchapter B—Salary Offset Authority standards shall give due consideration to thereafter, but no later than the date of the whether offset would tend to interfere sub- offset. Notwithstanding the preceding sen- SEC. 301. ENHANCEMENT OF SALARY OFFSET AU- stantially with or defeat the purposes of the tence, the failure of the debtor to receive THORITY. payment certifying agency’s program. such notice shall not impair the legality of Section 5514 of title 5, United States Code, ‘‘(D) The provisions of section 205(b)(1) or such offset. is amended— 1631(c)(1) of the Social Security Act shall not ‘‘(9) A levy pursuant to the Internal Reve- (1) in subsection (a)— apply to any offset executed pursuant to this nue Code of 1986 shall take precedence over section against benefits authorized by either (A) by adding at the end of paragraph (1) requests for offset received from other agen- the following: ‘‘All Federal agencies to which title II or title XVI of the Social Security cies. Act respectively. debts are owed and are delinquent in repay- (c) Section 3701(a) of title 31, U.S.C., is ment, shall participate in a computer match ‘‘(4) The Secretary of the Treasury is au- amended by adding at the end the following thorized to charge a fee sufficient to cover at least annually of their delinquent debt new paragraph: records with records of Federal employees to the full cost of implementing this sub- ‘‘(8) ‘non-tax claim’ means any claim from section. The fee may be collected either by identify those employees who are delinquent any agency of the Federal Government other in repayment of those debts. Matched Fed- the retention of a portion of amounts col- than a claim by the Internal Revenue Serv- lected pursuant to this subsection, or by bill- eral employee records shall include, but ice under the Internal Revenue Code of shall not be limited to, active Civil Service ing the agency referring or transferring the 1986.’’. claim. Fees charged to the agencies shall be employees government-wide, military active based on actual offsets completed. Fees SEC. 202. HOUSE OF REPRESENTATIVES AS LEG- duty personnel, military reservists, United ISLATIVE AGENCY. charged under this subsection concerning de- States Postal Service employees, and records (a) Section 3701(a) of title 31, United States linquent claims may be considered as costs of seasonal and temporary employees. The Code, is amended by adding the following pursuant to section 3717(e) of this title. Fees Secretary of the Treasury shall establish and new paragraphs after paragraph (7)— charged under this subsection shall be depos- maintain an interagency consortium to im- ‘‘(8) For purposes of subchapters I and II of ited into the ‘Account’ determined by the plement centralized salary offset computer chapter 37 of title 31, United States Code (re- Secretary of the Treasury in accordance matching, and promulgate regulations for lating to claims of or against the United with section 3711(g) of this title, and shall be this program. Agencies that perform central- States Government), the United States collected and accounted for in accordance ized salary offset computer matching serv- House of Representatives shall be considered with the provisions of that section. ices under this subsection are authorized to ‘‘(5) The Secretary of the Treasury may to be a legislative agency (as defined in sec- charge a fee sufficient to cover the full cost disclose to a creditor agency the current ad- tion 3701(a)(4) of such title), and the Clerk of for such services.’’; the House of Representatives shall be dress of any payee and any data related to (B) by redesignating paragraphs (3) and (4) deemed to be the head of such legislative certifying and authorizing such payment in as paragraphs (4) and (5), respectively; accordance with section 552a of title 5, Unit- agency. ‘‘(9) Regulations prescribed by the Clerk of (C) by inserting after paragraph (2) the fol- ed States Code, even when the payment has lowing new paragraph: been exempt from offset. Where payments the House of Representatives pursuant to are made electronically, the Secretary is au- section 3716 of title 31, United States Code, ‘‘(3) The provisions of paragraph (2) shall thorized to obtain the current address of the shall not become effective until they are ap- not apply to routine intra-agency adjust- debtor/payee from the institution receiving proved by the Committee on Rules of the ments of pay that are attributable to clerical the payment. Upon request by the Secretary, House of Representatives.’’ or administrative errors or delays in process- the institution receiving the payment shall SEC. 203. EXEMPTION FROM COMPUTER MATCH- ing pay documents that have occurred with- report the current address of the debtor/ ING REQUIREMENTS UNDER THE in the four pay periods preceding the adjust- payee to the Secretary. PRIVACY ACT OF 1974. ment and to any adjustment that amounts to ‘‘(6) The Secretary of the Treasury is au- Section 552a(a) of title 5, United States $50 or less, provided that at the time of such thorized to prescribe such rules, regulations Code, is amended— adjustment, or as soon thereafter as prac- and procedures as the Secretary of the (1) in paragraph (2), by inserting ‘‘acting in tical, the individual is provided written no- Treasury deems necessary to carry out the an individual, not a business capacity’’ after tice of the nature and the amount of the ad- purposes of this subsection. The Secretary ‘‘residence’’; justment and a point of contact for contest- shall consult with the heads of affected agen- (2) in paragraph (8)(B)— ing such adjustment.’’; cies in the development of such rules, regula- (A) by striking ‘‘or’’ at the end of clause (D) by amending paragraph (5)(B) (as redes- tions and procedures. (vi); ignated) to read as follows: ‘‘(7) (A) Any Federal agency that is owed, (B) by inserting ‘‘or’’ at the end of clause ‘‘(B) For purposes of this section, ‘agency’ by a named person a past-due legally en- (vii); and includes executive departments and agen- forceable non-tax debt that is over 180 days (C) by adding after clause (vii) the follow- cies, the United States Postal Service, the delinquent (other than any past-due sup- ing new clause: Postal Rate Commission, the United States port), including non-tax debt administered ‘‘(viii) matches for administrative offset or Senate, the United States House of Rep- by a third party acting as an agent for the claims collection pursuant to subsection resentatives, and any court, court adminis- Federal Government, shall notify the Sec- 3716(c) of title 31, section 5514 of this title, or trative office, or instrumentality in the judi- retary of the Treasury of all such non-tax any other payment intercept or offset pro- cial or legislative branches of government, debts for purposes of offset under this sub- gram authorized by statute;’’. and government corporations.’’; section. SEC. 204 TECHNICAL AND CONFORMING AMEND- ‘‘(B) An agency may delay notification (2) by adding at the end of subsection (b) MENTS. the following new paragraphs: under subparagraph (A) with respect to a (a) Title 31, United States Code, is amend- ‘‘(3) For purposes of this section, the Clerk debt that is secured by bond or other instru- ed— of the House of Representatives shall be ments in-lieu of bond, or for which there is (1) in section 3322(a), by inserting ‘‘section another specific repayment source, in order deemed to be the head of the agency. Regula- 3716 and section 3720A of this title, section to allow sufficient time to either collect the tions prescribed by the Clerk of the House of 6331 of title 26, and’’ after ‘‘Except as pro- debt through normal collection processes Representatives pursuant to subsection (b)(1) vided in’’; and (including collection by internal administra- shall be subject to the approval of the Com- (2) in section 3325(a)(3), by inserting ‘‘or tive offset) or render a final decision on any mittee on Rules of the House of Representa- pursuant to payment intercepts or offsets protest filed against the claim. tives. pursuant to section 3716 or 3720A, or pursu- ‘‘(8) The disbursing official conducting the ‘‘(4) For purposes of his section, the Sec- offset shall notify the payee in writing of— ant to levies executed under 26 U.S.C. 6331,’’ after ‘‘voucher’’; and retary of the Senate shall be deemed to be ‘‘(A) the occurrence of an offset to satisfy the head of the agency. Regulations pre- a past-due legally enforceable debt, includ- (3) in sections 3711, 3716, 3717 and 3718, by striking ‘‘the head of an executive or legisla- scribed by the Secretary of the Senate pursuing a description of the type and amount of ant to subsection (b)(1) shall be subject to the payment otherwise payable to the debtor tive agency’’ each place it appears and inserting instead ‘‘the head of an executive, ju- the approval of the Committee on Rules and against which the offset was executed; Administration of the Senate.’’. ‘‘(B) the identity of the creditor agency re- dicial or legislative agency’’. questing the offset; and (b) Subsection 6103(1)(10) of title 26, United (3) by adding after subsection (c) the fol- ‘‘(C) a contact point within the creditor States Code is amended— lowing new subsection: agency that will handle concerns regarding (1) in subparagraph (A), by inserting ‘‘and ‘‘(d) A levy pursuant to the Internal Reve- the offset.’’. to officers and employees of the Department nue Code of 1986 shall take precedence over ‘‘Where the payment to be offset is a peri- of the Treasury in connection with such re- requests for offset received from other agen- odic benefit payment, the disbursing official duction’’ adding after ‘‘6402’’; and cies.’’. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3665 Subchapter C—Taxpayer Identifying antees where a statute specifically permits sets of the United States held by a state gov- Numbers extension of Federal financial assistance to ernment or financial institution unless that SEC. 401. ACCESS TO TAXPAYER IDENTIFYING borrowers in delinquent status. agency has established procedures approved NUMBERS; BARRING DELINQUENT ‘‘(b) The head of the agency may delegate by the Secretary of the Treasury to identify DEBTORS FROM CREDIT ASSIST- the waiver authority described in (a) to the and recover such assets; and ANCE. Chief Financial Officer of the agency. The (B) in subsection (d), by inserting ’’, or to Section 4 of the Debt Collection Act of 1982 waiver authority may be redelegated only to locate or recover assets of ,’’ after ‘‘owed’’. (Pub. L. 97–365, 96 Stat. 1749, 26 U.S.C. 6103 the Deputy Chief Financial Officer of the SEC. 502. GOVERNMENTWIDE CROSS-SERVICING. note) is amended— agency. Section 3711 of title 31, United States Code, (1) in subsection (b), by striking ‘‘For pur- ‘‘(c) For purposes of this section, ‘person’ is amended by adding at the end the follow- poses of this section’’ and inserting instead means an individual; or sole proprietorship, ing new subsection: ‘‘For purposes of subsection (a)’’; and partnership, corporation, nonprofit organiza- ‘‘(g)(1) At the discretion of the head of an (2) by at the end thereof the following new tion, or any other form of business associa- executive, judicial or legislative agency, re- subsections: tion.’’ ferral of a non-tax claim may be made to any ‘‘(c) FEDERAL AGENCIES.—Each Federal (b) The table of sections for subchapter II executive department or agency operating a agency shall require each person doing busi- of chapter 37 of title 31, United States Code, debt collection center for servicing and col- ness with that agency to furnish to that is amended by inserting after the item relat- lection in accordance with an agreement en- agency such person’s taxpayer identifying ing to section 3720A the following new item: tered into under paragraph (2). Referral or number. ‘‘3720B. Barring Delinquent Federal Debtors transfer of a claim may also be made to the ‘‘(1) For purposes of this subsection, a per- from Obtaining Federal loans Secretary of the Treasury for servicing, col- son is considered to be ‘doing business’ with or Loan Guarantees.’’. lection, compromise, and/or suspension or a Federal agency if the person is— termination of collection action. Non-tax ‘‘(A) is a lender or servicer in a Federal Subchapter D—Expanding Collection Au- claims referred or transferred under this sec- guaranteed or insured loan program; thorities and Governmentwide Cross-Serv- tion shall be serviced, collected, com- ‘‘(B) an applicant for, or recipient of— icing promised, and/or collection action suspended ‘‘(i) a Federal guaranteed, insured, or di- SEC. 501. EXPANDING COLLECTION AUTHORITIES rect loan; or UNDER THE DEBT COLLECTION ACT or terminated in accordance with existing ‘‘(ii) a Federal license, permit, right-of- OF 1982. statutory requirements and authorities. way, grant, benefit payment or insurance; (a) Subsection 8(e) of the Debt Collection ‘‘(2) Executive departments and agencies ‘‘(C) a contractor of the agency; Act of 1982 (Public Law 97–365, 31 U.S.C. operating debt collection centers are author- ‘‘(D) assessed a fine, fee, royalty or penalty 3701(d) and 5 U.S.C. 5514 note) is repealed. ized to enter into agreements with the heads by that agency; (b) Section 5 of the Social Security Domes- of executive, judicial, or legislative agencies ‘‘(E) in a relationship with a Federal agen- tic Employment Reform Act of 1994 (P.L. to service and/or collect non-tax claims re- cy that may give rise to a receivable due to 103–387) is repealed. ferred or transferred under this subsection. that agency, such as a partner of a borrower (c) Section 631 of the Tariff Act of 1930, as The heads of other executive departments in or a guarantor of a Federal direct or in- amended (19 U.S.C. 1631) is repealed. and agencies are authorized to enter into sured loan; and (d) Title 31, United States Code, is amend- agreements with the Secretary of the Treas- ‘‘(F) is a joint holder of any account to ed— ury for servicing or collection of referred or which Federal benefit payments are trans- (1) in section 3701— transferred non-tax claims or other Federal ferred electronically. (A) by amending subsection (a)(4) to read agencies operating debt collection centers to ‘‘(2) Each agency shall disclose to the per- as follows: obtain debt collection services from those son required to furnish a taxpayer identify- ‘‘(4) ‘executive, judicial or legislative agen- agencies. ing number under this subsection its intent cy’ means a department, military depart- ‘‘(3) Any agency to which non-tax claims to use such number of purposes of collecting ment, agency, court, court administrative are referred or transferred under this sub- and reporting on any delinquent amounts office, or instrumentality in the executive, section is authorized to charge a fee suffi- arising out of such person’s relationship with judicial or legislative branches of govern- cient to cover the full cost of implementing the government. ment, including government corporations.’’; this subsection. The agency transferring or ‘‘(3) For purposes of this subsection— and referring the non-tax claim shall be charged ‘‘(A) The term ‘taxpayer identifying num- (B) by adding at the end the following new the fee, and the agency charging the fee shall ber’ has the meaning given such term in sec- subsection: collect such fee by retaining the amount of tion 6109 of title 26, United States Code. ‘‘(d) Sections 3711(f) and 3716–3719 of this the fee from amounts collected pursuant to ‘‘(B) The term ‘person’ means an individ- title do not apply to a claim or debt under, this subsection. Agencies may agree to pay ual, sole proprietorship, partnership, cor- or to an amount payable under, the Internal through a different method, or to fund the poration, non-profit organization, or any Revenue Code of 1986; activity from an account. Amounts charged other form of business association, but with (2) by amending section 3711(f) to read as under this subsection concerning delinquent the exception of debtors owing claims result- follows: claims may be considered as costs pursuant ing from petroleum pricing violations does ‘‘(f)(1) When trying to collect a claim of to section 3717(e) of this title. not include debtors under third party claims the Government, the head of an executive or ‘‘(4) Notwithstanding any other law con- of the United States. legislative agency may disclose to a cerning the depositing and collection of fed- ‘‘(d) ACCESS TO SOCIAL SECURITY NUM- consumer reporting agency information from eral payments, including section 3302(b) of BERS.—Notwithstanding 5 U.S.C. 552a, credi- a system of records that an individual is re- this title, agencies collecting fees may re- tor agencies to which a delinquent claim is sponsible for a claim if notice required by tain the fees from amounts collected. Any owed, and their agents, may match their section 552a(e)(4) of title 5, United States fee charged pursuant to this subsection shall debtor records with the Social Security Ad- Code, indicates that information in the sys- be deposited into an account to be deter- ministration records to verify name, name tem may be disclosed to a consumer report- mined by the executive department or agen- control, Social Security number, address, ing agency. cy operating the debt collection center and date of birth.’’. ‘‘(2) The information disclosed to a charging the fee (hereafter referred to in this SEC. 402. BARRING DELINQUENT FEDERAL DEBT- consumer reporting agency shall be limited section as the ‘Account’). Amounts deposited ORS FROM OBTAINING FEDERAL to— in the Account shall be available until ex- LOANS OR LOAN GUARANTEES. ‘‘(A) information necessary to establish pended to cover costs associated with the im- (a) Title 31, United States Code, is amend- the identity of the individual, including plementation and operation of government- ed by adding after section 3720A the follow- name, address and taxpayer identifying num- wide debt collection activities. Costs prop- ing new section: ber; erly chargeable to the Account include, but ‘‘SEC. 3720B. BARRING DELINQUENT FEDERAL ‘‘(B) the amount, status, and history of the are not limited to: DEBTORS FROM OBTAINING FED- claim; and ‘‘(A) the costs of computer hardware and ERAL LOANS OR LOAN GUARANTEES. ‘‘(C) the agency or program under which software, word processing and telecommuni- ‘‘(a) Unless waived by the head of the agen- the claim arose.’’; and cations equipment, other equipment, sup- cy, no person may obtain any Federal finan- (3) in section 3718— plies, and furniture; cial assistance in the form of a loan or a loan (A) in subsection (a), by striking the first ‘‘(B) personnel training and travel costs; guarantee if such person has an outstanding sentence and inserting instead the following: ‘‘(C) other personnel and administrative Federal non-tax debt which is in a delin- ‘‘Under conditions the head of an executive, costs; quent status, as determined under the stand- legislative or judicial agency considers ap- ‘‘(D) the costs of any contract for identi- ards prescribed by the Secretary of the propriate, the head of an agency may make fication, billing, or collection services; and Treasury, with a Federal agency. Any such a contract with a person for collection serv- ‘‘(E) reasonable costs incurred by the Sec- person may obtain additional Federal finan- ice to recover indebtedness owed, or to lo- retary of the Treasury, including but not cial assistance only after such delinquency is cate or recover assets of, the United States limited to, services and utilities provided by received, pursuant to these standards. This Government. No head of an agency may the Secretary, and administration of the Ac- section shall not apply to loans or loan guar- enter into a contract to locate or recover as- count. S3666 CONGRESSIONAL RECORD — SENATE April 18, 1996 ‘‘(5) Not later than January 1 of each year, 2736, 5 U.S.C. 581 note) is amended by adding funds, payments may be credited to sub- there shall be deposited into the Treasury as at the end thereof the following sentence: accounts designated for debt collection. miscellaneous receipts, an amount equal to ‘‘This section shall not apply to section ‘‘(2) For purposes of this paragraph, the the amount of unobligated balances remain- 8(b) of this Act’’. term ‘qualified expenses’ means expenditures ing in the Account at the close of business Subchapter E—Federal Civil Monetary for the improvement of tax administration on September 30 of the preceding year minus Penalties and agency debt collection and debt recovery any part of such balance that the executive activities including, but not limited to, ac- SEC. 601. ADJUSTING FEDERAL CIVIL MONETARY department or agency operating the debt col- PENALTIES FOR INFLATION. count servicing (including cross-servicing lection center determines is necessary to (a) The Federal Civil Penalties Inflation under Section 502 of the Debt Collection Im- cover or defray the costs under this sub- Adjustment Act of 1990 (Pub. L. 101–410. 104 provement Act of 1995), automatic data proc- section for the fiscal year in which the de- Stat. 890, (28 U.S.C. 2461 note) is amended— essing equipment acquisitions, delinquent posit is made. (1) by amending section 4 to read as fol- debt collection, measures to minimize delin- ‘‘(6)(A) The head of an executive, legisla- lows: quent debt, asset disposition, and training of tive or judicial agency shall transfer to the ‘‘SEC. 4. The head of each agency shall, not personnel involved in credit and debt man- Secretary of the Treasury all non-tax claims later than 180 days after the date of enact- agement. over 180 days delinquent for additional col- ment of the Debt Collection Improvement ‘‘(3) Payments made to agencies pursuant lection action and/or closeout. to paragraph (1) shall be in proportion to ‘‘(B) Subparagraph (A) shall not apply— Act of 1995, and at least once every 4 years thereafter, by regulation adjust each civil their contributions to the Account. ‘‘(i) to claims that— ‘‘(4)(A) Amounts in the Account shall be monetary penalty provided by law within the ‘‘(I) are in litigation or foreclosure; available to the Secretary of the Treasury to jurisdiction of the Federal agency, except for ‘‘(II) are eligible for disposition under the the extent and in the amounts provided in any penalty under title 26, United States loan sales programs of a Federal department advance in appropriation acts, for purposes Code, by the inflation adjustment described or agency; of this section. Such amounts are authorized ‘‘(III) have been referred to a private col- under section 5 of this Act and publish each to be appropriated without fiscal year limi- lection contractor for collection; such regulation in the Federal Register.’’; tation. ‘‘(IV) are being collected under internal (2) in section 5(a), by striking ‘‘The adjust- ‘‘(B) As soon as practical after the end of offset procedures; ment described under paragraphs (4) and third fiscal year after which appropriations ‘‘(V) have been referred to the Department (5)(A) of section 4’’ and inserting ‘‘The infla- are made pursuant to this section, and every of the Treasury, the Department of Defense, tion adjustment’’; and 3 years thereafter, any unappropriated bal- the United States Postal Service, or disburs- (3) by adding at the end the following new ance in the account as determined by the ing official of the United States designated section: Secretary of the Treasury in consultation by Secretary of the Treasury for administra- ‘‘SEC. 7. Any increase to a civil monetary with agencies, shall be transferred to the tive offset; penalty resulting from this Act shall apply Treasury general fund as miscellaneous re- ‘‘(VI) have been retained by an executive only to violations which occur after the date ceipts. agency in a debt collection center; or any such increase takes effect.’’. ‘‘(d) For direct loan and loan guarantee ‘‘(VII) have been referred to another agen- (b) The initial adjustment of a civil mone- programs subject to Title V of the Congres- cy for collection; tary penalty made pursuant to section 4 of sional Budget Act of 1974, amounts credited ‘‘(ii) to claims which may be collected Federal Civil Penalties Inflation Adjustment in accordance with section (c) shall be con- after the 180 day period in accordance with Act of 1990 (as amended by subsection (a)) sidered administrative costs and shall not be specific statutory authority or procedural may not exceed 10 percent of such penalty. guidelines, provided that the head of an exec- included in the estimated payments to the Subchapter F—Gain Sharing utive, legislative or judicial agency provides Government for the purpose of calculating notice of such claims to the Secretary of the SEC. 701. DEBT COLLECTION IMPROVEMENT AC- the costs of such programs. Treasury; and COUNT. ‘‘(e) The Secretary of the Treasury shall ‘‘(iii) to other specific class of claims as de- (a) Title 31, United States Code, is amend- prescribe such rules, regulation, and proce- termined by the Secretary of the Treasury at ed by inserting after section 3720B the fol- dures as the Secretary deems necessary or the request of the head of an agency or oth- lowing new section: appropriate to carry out the purposes of this erwise. ‘‘SEC. 3720C. Debt Collection Improvement section.’’. ‘‘(C) The head of an executive, legislative Account (b) The table of sections for subchapter II or judicial agency shall transfer to the Sec- ‘‘(a)(1) There is here by established in the of chapter 37 of title 31, United States Code, retary of the Treasury all non-tax claims on Treasury a special fund to be known as the is amended by inserting after the item relat- which the agency has ceased collection ac- ‘Debt Collection Improvement Account’ ing to section 3720B the following new item: tivity. The Secretary may exempt specific (hereinafter referred to as the ‘Account’). ‘‘3720C. Debt Collection Improvement Ac- classes of claims from this requirement, at ‘‘(2) The Account shall be maintained and count.’’. the request of the head of an agency, or oth- managed by the Secretary of the Treasury, Subchapter G—Tax Refund Offset Authority erwise. The Secretary shall review trans- who shall ensure that programs are credited with the amounts described in subsection (b) SEC. 801. OFFSET OF TAX REFUND PAYMENT BY ferred claims to determine if additional col- DISBURSING OFFICIALS. and with allocations described in subsection lection action is warranted. The Secretary Section 3720A(h) of title 31, United States (c). may, in accordance with section 6050P of Code, is amended to read as follows: ‘‘(b)(1) Not later than 30 days after the end title 26, United States Code, report to the In- ‘‘(h)(1) The term ‘Secretary of the Treas- of a fiscal year, an agency other than the De- ternal Revenue Service on behalf of the cred- ury’ may include the disbursing official of partment of Justice is authorized to transfer itor agency any claims that have been dis- the Department of the Treasury. charged within the meaning of such section. to the Account a dividend not to exceed one ‘‘(2) The disbursing official of the Depart- ‘‘(7) At the end of each calendar year, the percent of the debt collection improvement ment of the Treasury— head of an executive, legislative or judicial amount as described in paragraph (3). ‘‘(A) shall notify a taxpayer in writing of— agency which, regarding a claim owed to the (2) Agency transfers to the Account may ‘‘(i) the occurrence of an offset to satisfy a agency, is required to report a discharge of include collections from past-due legally enforceable non-tax debt; indebtedness as income under the 6050P of ‘‘(A) salary, administrative and tax refer- ‘‘(ii) the identity of the creditor agency re- title 26, United States Code, shall either ral offsets; questing the offset; and complete the appropriate form 1099 or submit ‘‘(B) automated levy authority; ‘‘(iii) a contact point within the creditor to the Secretary of the Treasury such infor- ‘‘(C) the Department of Justice; and agency that will handle concerns regarding mation as is necessary for the Secretary of ‘‘(D) private collection agencies. the offset; the Treasury to complete the appropriate ‘‘(3) For purposes of this section, the term ‘‘(B) shall notify the Internal Revenue form 1099. The Secretary of the Treasury ‘debt collection improvement amount’ Service on a weekly basis of— shall incorporate this information into the means the amount by which the collection of ‘‘(i) the occurrence of an offset to satisfy a appropriate form and submit the information delinquent debt with respect to a particular past-due legally enforceable non-tax debt; to the taxpayer and Internal Revenue Serv- program during a fiscal year exceeds the de- ‘‘(ii) the amount of such offset; and ice. linquent debt baseline for such program for ‘‘(iii) any other information required by ‘‘(8) To carry out the purposes of this sub- such fiscal year. The Office of Management regulations; and section, the Secretary of the Treasury is au- and Budget shall determine the baseline ‘‘(C) shall match payment records with re- thorized from which increased collections are meas- quests for offset by using a name control, ‘‘(A) to prescribe such rules, regulations ured over the prior fiscal year, taking into taxpayer identifying number (as defined in 26 and procedures as the Secretary deems nec- account the recommendations made by the U.S.C. 6109), and any other necessary identi- essary; and Secretary of the Treasury in consultation fiers.’’. ‘‘(B) to designate debt collection centers with creditor agencies. SEC. 802. EXPANDING TAX REFUND OFFSET AU- operated by other Federal agencies.’’ ‘‘(c)(1) The Secretary of the Treasury is au- THORITY. SEC. 503. COMPROMISE OF CLAIMS. thorized to make payments from the Ac- (a) Section 3720A of title 31, United States Section 11 of the Administrative Dispute count solely to reimburse agencies for quali- Code, is amended by adding after subsection Resolution Act (Public Law 101–552, 104 Stat. fied expenses. For agencies with franchise (h) the following new subsection: April 18, 1996 CONGRESSIONAL RECORD — SENATE S3667 ‘‘(i) An agency subject to section 9 of the ‘‘(1) ‘creditor agency’ means any entity Subchapter B—Nonjudicial Foreclosure Act of May 18, 1933 (16 U.S.C. 831h) may im- owed a claim that seeks to collect that claim SEC. 1201. NONJUDICIAL FORECLOSURE OF plement this section at its discretion.’’. through administrative offset. MORTGAGES. (b) Section 6402(f) of title 26, United States ‘‘(2) ‘payment certifying agency’ means Chapter 176 of title 28 of the United States Code, is amended to read as follows: any Federal department, agency or instru- Code is amended by adding at the end thereof ‘‘(f) FEDERAL AGENCY.—For purposes of mentality and government corporation, that the following: this section, the term ‘Federal agency’ has transmitted a voucher to a disbursing of- ‘‘Subchapter E—Nonjudicial Foreclosure means a department, agency, or instrumen- ficial for disbursement.’’. ‘‘3401. Definitions. tality of the United States, and includes a SEC. 902. SEVERABILITY. ‘‘3402. Rules of construction. government corporation (as such term is de- If any provision of this title, or the amend- ‘‘3403. Election of procedure. fined in section 103 of title 5, United States ments made by this title, or the application ‘‘3404. Designation of foreclosure trustee. Code).’’. of any provision to any entity, person, or cir- ‘‘3405. Notice of foreclosure sale; Statute of SEC. 803. EXPANDING AUTHORITY TO COLLECT cumstance is for any reason adjudged by a limitations. PAST-DUE SUPPORT. court of competent jurisdiction to be invalid, ‘‘3406. Service of notice of foreclosure sale. (a) Subsection 3720A(a) of title 31, United the remainder of this title, and the amend- ‘‘3407. Cancellation of foreclosure sale. States Code, is amended to read as follows: ments made by this title, or its application ‘‘3408. Stay. ‘‘(a) Any Federal agency that is owed by a shall not be affected. ‘‘3409. Conduct of sale; postponement. named person a past-due, legally enforceable SEC. 903. SCOPE. ‘‘3410. Transfer of title and possession. debt (including past-due support and debt ad- This Act, the Federal Claims Collection ‘‘3411. Record of foreclosure and sale. ministered by a third party acting as an Act of 1966, as amended, the Debt Collection ‘‘3412. Effect of sale. ‘‘3413. Disposition of sale proceeds. agent for the Federal government) shall, in Act of 1982, as amended, and the remaining ‘‘3414. Deficiency judgment. accordance with regulations issued pursuant provisions of chapter 37 of title 31, United to subsections (b) and (d), notify the Sec- States Code shall not be deemed to apply to ‘‘SEC. 3401. DEFINITIONS. retary of the Treasury at least once a year of claims or debts involving foreign persons. ‘‘As used in this subchapter— the amount of such debt.’’. For purposes of this section, ‘foreign person’ ‘‘(1) ‘agency’ means— ‘‘(A) an executive department as defined in (b) Section 664(a) of the Act of August 13, means any person, sole proprietorship, part- section 101 of title 5, United States Code; 1935, as amended (42 U.S.C. section 664(a)) is nership, corporation, organization or other ‘‘(B) an independent establishment as de- amended— entity that is an agency, department or in- fined in section 104 of title 5, United States (1) in paragraph (1), by adding at the end strumentality of a government of a foreign Code (except that it shall not include the thereof the following: ‘‘This subsection may country, is owned, controlled, operated or General Accounting Office); be implemented by the Secretary of the managed by a government of a foreign coun- Treasury in accordance with section 3720A of ‘‘(C) a military department as defined in try or any agency, department or instrumen- section 102 of title 5, United States Code; and title 31, United States Code.’’; and tality thereof, is a citizen of a foreign coun- (2) in paragraph (2)(A), by adding at the ‘‘(D) a wholly owned government corpora- try, is organized under the laws of a foreign tion as defined in section 9101(3) of title 31, end thereof the following: ‘‘This subsection country, or has its principal place of busi- may be implemented by the Secretary of the United States Code. ness outside the United States, and ‘foreign ‘‘(2) ‘agency head’ means the head and any Treasury in accordance with section 3720A of country’ means a country other than the title 31, United States Code.’’. assistant head of an agency, and may upon United States. the designation by the head of an agency in- Subchapter H—Definitions, Due Process Subchapter I—Reporting clude the chief official of any principal divi- Rights, and Severability SEC. 1001. MONITORING AND REPORTING. sion of an agency or any other employee of SEC. 901. TECHNICAL AMENDMENTS TO DEFINI- (a) The Secretary of the Treasury, in con- an agency. TIONS. sultation with concerned Federal agencies, is ‘‘(3) ‘bona fide purchaser’ means a pur- Section 3701 of title 31, United States Code, authorized to establish guidelines, including chaser for value in good faith and without is amended— information on outstanding debt, to assist notice of any adverse claim who acquires the (1) by amending subsection (a)(1) to read as agencies in the performance and monitoring seller’s interest free of any adverse claim. follows: of debt collection activities. ‘‘(4) ‘debt instrument’ means a note, mort- ‘‘(1) ‘administrative offset’ means with- (b) Not later three years after the date of gage bond, guaranty or other instrument holding money payable by the United States enactment of this Act, the Secretary of the creating a debt or other obligation, including (including money payable by the United Treasury shall report to the Congress on col- any instrument incorporated by reference States on behalf of a State government) to, lection services provided by Federal agencies therein and any instrument or agreement or held by the United States for, a person to or entities collecting debt on behalf of other amending or modifying a debt instrument. satisfy a claim.’’; Federal agencies under the authorities con- ‘‘(5) ‘file’ or ‘filing’ means docketing, in- (2) by amending subsection (a)(4) to read as tained in section 3711(g) of title 31, United dexing, recording, or registering, or any follows: States Code, as added by section 502 of this other requirement for perfecting a mortgage ‘‘(4) ‘executive, judicial or legislative agen- Act. or a judgment. cy’ means a department, agency, court, (c) Section 3719 of title 31, United States ‘‘(6) ‘foreclosure trustee’ means an individ- court administrative office, or instrumental- Code, is amended— ual, partnership, association, or corporation, ity in the executive, judicial or legislative (1) in subsection (a)— or any employee thereof, including a succes- branches of government, including govern- (A) by amending the first sentence to read sor, appointed by the agency head to conduct ment corporations.’’; as follows: ‘‘In consultation with the Comp- a foreclosure sale pursuant to this sub- (3) by amending subsection (b) to read as troller General, the Secretary of the Treas- chapter. follows: ury shall prescribe regulations requiring the ‘‘(7) ‘mortgage’ means a deed of trust, deed ‘‘(b)(1) The term ‘claim’ or ‘debt’ means head of each agency with outstanding non- to secure debt, security agreement, or any any amount of money or property that has tax claims to prepare and submit to the Sec- other form of instrument under which any been determined by an appropriate official of retary at least once a year a report summa- interest in real property, including lease- the Federal Government to be owed to the rizing the status of loans and accounts re- holds, life estates, reversionary interests, United States by a person, organization, or ceivable managed by the head of the agen- and any other estates under applicable law is entity other than another Federal agency. A cy.’’; and conveyed in trust, mortgaged, encumbered, claim includes, without limitation, money (B) in paragraph (3), by striking ‘‘Director’’ pledged or otherwise rendered subject to a owed on account of loans insured or guaran- and inserting instead ‘‘Secretary’’; and lien, for the purpose of securing the payment teed by the Government, non-appropriated (2) in subsection (b), by striking ‘‘Direc- of money or the performance of any other funds, over-payments, any amount the Unit- tor’’ and inserting instead ‘‘Secretary’’. obligation. ed States is authorized by statute to collect (d) Notwithstanding any other provision of ‘‘(8) ‘of record’ means an interest recorded for the benefit of any person, and other law, the Secretary of the Treasury is author- pursuant to Federal or State statutes that amounts of money or property due the Gov- ized to consolidate all reports concerning provide for official recording of deeds, mort- ernment. debt collection into one annual report. gages and judgments, and that establish the ‘‘(2) For purposes of section 3716 of this effect of such records as notice to creditors, TITLE II—JUSTICE DEBT MANAGEMENT title, the term ‘claim’ also includes an purchasers, and other interested persons. amount of money or property owed by a per- Subchapter A—Private Attorneys ‘‘(9) ‘owner’ means nay person who has an son to a State, the District of Columbia, SEC. 1101. EXPANDED USE OF PRIVATE ATTOR- ownership interest in property and includes American Samoa, the United States Virgin NEYS. heirs, devisees, executors, administrators, Islands, the Commonwealth of the Northern (a) Section 3718(b)(1)(A) of title 31, United and other personal representatives, and Mariana Islands, or the Commonwealth of States Code, is amended by striking the trustees of testamentary trusts if the owner Puerto Rico.’’; fourth sentence. of record is deceased. (3) by adding after subsection (d) the fol- (b) Sections 3 and 5 of the Federal Debt Re- ‘‘(10) ‘sale’ means a sale conducted pursu- lowing new subsection: covery Act (Pub. L. 99–578, 100 Stat. 3305) are ant to this subchapter, unless the context re- ‘‘(e) In section 3716 of this title— hereby repealed. quires otherwise. S3668 CONGRESSIONAL RECORD — SENATE April 18, 1996

‘‘(11) ‘security property’ means real prop- ‘‘(d) AVAILABILITY OF DESIGNATION.—An ‘‘(1) At least 21 days prior to the date of erty, or any interest in real property includ- agency head may designate such foreclosure the foreclosure sale, the notice set forth in ing leaseholds life estates, reversionary in- trustees as the agency head deems necessary section 3405 shall be sent by registered or terests, and any other estates under applica- to carry out the purposes of this subchapter. certified mail, return receipt requested— ble State law that secure a mortgage. ‘‘(3) MULTIPLE FORECLOSURE TRUSTEES AU- ‘‘(A) to the current owner of record of the ‘‘SEC. 3402. RULES OF CONSTRUCTION. THORIZED.—An agency head may designate security property as the record appears on ‘‘(a) IN GENERAL.—If an agency head elects multiple foreclosure trustees for different the date that the notice of foreclosure sale is to proceed under this subchapter, this sub- tracts of a secured property. recorded pursuant to subsection (a); ‘‘(B) to all debtors, including the mortga- chapter shall apply and the provisions of this ‘‘(f) REMOVAL OF FORECLOSURE TRUSTEES; gor, assignees of the mortgagor and guaran- subchapter shall govern in the event of a SUCCESSOR FORECLOSURE TRUSTEES.—An agency head may, with or without cause or tors of the debt instrument; conflict with any other provision of Federal ‘‘(C) to all persons having liens, interests law or State law. notice, remove a foreclosure trustee and designate a successor trustee as provided in this or encumbrances of record upon the security ‘‘(b) LIMITATION.—This subchapter shall property, as the record appears on the date not be construed to supersede or modify the section. The foreclosure sale shall continue without prejudice notwithstanding the re- that the notice of foreclosure sale is recorded operation of— pursuant to subsection (a); and moval of the foreclosure trustee and designa- ‘‘(1) the lease-back/buy-back provisions ‘‘(D) to any occupants of the security prop- tion of a successor foreclosure trustee. Noth- under section 1985 of title 7, United States erty. If the names of the occupants of the se- Code, or regulations promulgated there- ing in this section shall be construed to pro- curity property are not known to the agency, under; or hibit a successor foreclosure trustee from or the security property has more than one ‘‘(2) The Multifamily Mortgage Fore- postponing the foreclosure sale in accord- dwelling unit, the notice shall be posted at closure Act of 1981 (Chapter 38 of title 12, ance with this subchapter. the security property. United States Code). ‘‘SEC. 3405. NOTICE OF FORECLOSURE SALE; ‘‘(2) The notice shall be sent to the debtor ‘‘(c) EFFECT ON OTHER LAWS.—This sub- STATUTE OF LIMITATIONS. at the address, if any, set forth in the debt chapter shall not be construed to curtail or ‘‘(a) IN GENERAL.— instrument or mortgage as the place to limit the rights of the United States or any ‘‘(1) Not earlier than 21 days nor later than which notice is to be sent, and if different, to of its agencies— ten years after acceleration of a debt instru- the debtor’s last known address as shown in ‘‘(1) to foreclose a mortgage under any ment or demand on a guaranty, the fore- the mortgage record of the agency. The no- other provision of Federal law or State law; closure trustee shall serve a notice of fore- tice shall be sent to any person other than or closure sale in accordance with this sub- the debtor to that person’s address of record ‘‘(2) to enforce any right under Federal law chapter. or, if there is no address of record, to any ad- or State law in lieu of or in addition to fore- ‘‘(2) For purposes of computing the time dress at which the agency in good faith be- closure, including any right to obtain a mon- period under paragraph (1), there shall be ex- lieves the notice is likely to come to that etary judgment. cluded all periods during which there is in ef- person’s attention. ‘‘(d) APPLICATION TO MORTGAGES.—The pro- fect— ‘‘(3) Notice by mail pursuant to this sub- visions of this subchapter may be used to ‘‘(A) a judicially imposed stay of fore- section shall be effective upon mailing. foreclose any mortgage, whether executed closure; or ‘‘(c) NOTICE BY PUBLICATION.—Notice of the prior or subsequent to the effective date of ‘‘(B) a stay imposed by section 362 of title foreclosure sale shall be published at least this subchapter. 11, United States Code. once a week for each of three successive ‘‘SEC. 3403. ELECTION OF PROCEDURE. ‘‘(3) In the event of partial payment or weeks prior to the sale in at least one news- ‘‘(a) SECURITY PROPERTY SUBJECT TO FORE- written acknowledgement of the debt after paper of general circulation in any county or CLOSURE.—An agency head may foreclose a acceleration of the debt instrument, the counties in which the security property is lo- mortgage upon the breach of a covenant or right to foreclose shall be deemed to accrue cated. If there is no newspaper published at condition in a debt instrument or mortgage again at the time of each such payment or least weekly that has a general circulation for which acceleration or foreclosure is au- acknowledgement. in at least one county in which the security thorized. An agency head may not institute ‘‘(b) NOTICE OF FORECLOSURE SALE.—The property is located, copies of the notice of foreclosure proceedings on the mortgage notice of foreclosure sale shall include the foreclosure sale shall instead be posted at under any other provision of law, or refer following: least 21 days prior to the sale at the court- such mortgage for litigation, during the ‘‘(1) the name, title, and business address house of any county or counties in which the pendency of foreclosure proceedings pursu- of the foreclosure trustee as of the date of property is located and at the place where ant to this subchapter. the notice; the sale is to be held. ‘‘(b) EFFECT OF CANCELLATION OF SALE.—If ‘‘(2) the names of the original parties to ‘‘SEC. 3407. CANCELLATION OF FORECLOSURE a foreclosure sale is canceled pursuant to the debt instrument and the mortgage, and SALE. section 3407, the agency head may thereafter any assignees of the mortgagor of record; ‘‘(a) IN GENERAL.—At any time prior to the foreclose on the security property in any ‘‘(3) the street address or location of the foreclosure sale, the foreclosure trustee shall manner authorized by law. security property, and a generally accepted cancel the sale— ‘‘(1) if the debtor or the holder of any sub- ‘‘SEC. 3404. DESIGNATION OF FORECLOSURE designation used to describe the security TRUSTEE. property, or so much thereof as is to be of- ordinate interest in the security property tenders the performance due under the debt ‘‘(a) IN GENERAL.—An agency head shall fered for sale, sufficient to identify the prop- designate a foreclosure trustee who shall su- erty to be sold; instrument and mortgage, including any persede any trustee designated in the mort- ‘‘(4) the date of the mortgage, the office in amounts due because of the exercise of the gage. A foreclosure trustee designated under which the mortgage is filed, and the location right to accelerate, and the expenses of pro- this section shall have a nonjudicial power of of the filing of the mortgage; ceeding to foreclosure incurred to the time sale pursuant to this subchapter. ‘‘(5) the default or defaults upon which of tender; or ‘‘(2) if the security property is a dwelling ‘‘(b) DESIGNATION OF FORECLOSURE TRUST- foreclosure is based, and the date of the acceleration of the debt instrument; of four units or fewer, and the debtor: EE.— ‘‘(A) pays or tenders all sums which would ‘‘(1) An agency head may designate as fore- ‘‘(6) the date, time, and place of the fore- have been due at the time of tender in the closure trustee— closure sale; ‘‘(7) a statement that the foreclosure is absence of any acceleration; ‘‘(A) an officer or employee of the agency; ‘‘(B) performs any other obligation which being conducted in accordance with this sub- or would have been required in the absence of chapter; ‘‘(B) an individual who is a resident of the any acceleration; and State in which the security property is lo- ‘‘(8) the types of costs, if any, to be paid by ‘‘(C) pays or tenders all costs of foreclosure cated or the purchaser upon transfer of title; and incurred for which payment from the pro- ‘‘(C) a partnership, association, or corpora- ‘‘(9) the terms and conditions of sale, in- ceeds of the sale would be allowed; or tion, provided such entity is authorized to cluding the method and time of payment of ‘‘(3) for any reason approved by the agency transact business under the laws of the State the foreclosure purchase price. head. in which the security property is located. ‘‘SEC. 3406. SERVICE OF NOTICE OF FORE- ‘‘(b) LIMITATION.—The debtor may not, ‘‘(2) The agency head is authorized to enter CLOSURE SALE. without the approval of the agency head, into personal services and other contracts ‘‘(a) RECORD NOTICE.—At least 21 days prior cure the default under subsection (a)(2) if, not inconsistent with this subchapter. to the date of the foreclosure sale, the notice within the preceding 12 months, the debtor ‘‘(c) METHOD OF DESIGNATION.—An agency of foreclosure sale required by section 3405 has cured a default after being served with a head shall designate the foreclosure trustee shall be filed in the manner authorized for notice of foreclosure sale pursuant to this in writing. The foreclosure trustee may be filing a notice of an action concerning real subchapter. designated by name, title or position. An property according to the law of the State ‘‘(c) NOTICE OF CANCELLATION.—The fore- agency head may designate one or more fore- where the security property is located or, if closure trustee shall file a notice of the can- closure trustees for the purpose of proceed- none, in the manner authorized by section cellation in the same place and manner pro- ing with multiple foreclosures or a class of 3201 of this chapter. vided for the filing of the notice of fore- foreclosures. ‘‘(b) NOTICE BY MAIL.— closure sale under section 3406(a). April 18, 1996 CONGRESSIONAL RECORD — SENATE S3669 ‘‘SEC. 3408. STAY. be conclusively presumed to have been con- ‘‘(4) the date and place of filing of the no- ‘‘If, prior to the time of sale, foreclosure ducted in a legal, fair and commercially rea- tice of foreclosure sale under section 3406(a); proceedings under this subchapter are stayed sonable manner. The sale price shall be con- ‘‘(5) that the foreclosure was conducted in in any manner, including the filing of bank- clusively presumed to constitute the reason- accordance with the provisions of this sub- ruptcy, no person may thereafter cure the ably equivalent value of the security prop- chapter, and default under the provisions of section erty. ‘‘(6) the sale amount. 3407(a)(2). If the default is not cured at the ‘‘SEC. 3410 TRANSFER OF TITLE AND POSSES- ‘‘(b) EFFECT OF RECITALS.—The recitals set time a stay is terminated, the foreclosure SION. forth in subsection (a) shall be prima facie trustee shall proceed to sell the security ‘‘(a) DEED.—After receipt of the purchase evidence of the truth of such recitals. Com- property as provided in this subchapter. price in accordance with the terms of the pliance with the requirements of subsection ‘‘SEC. 3409. CONDUCT OF SALE; POSTPONEMENT. sale as provided in the notice of foreclosure (a) shall create a conclusive presumption of ‘‘(a) SALE PROCEDURES.—Foreclosure sale sale, the foreclosure trustee shall execute the validity of the sale in favor of bona fide pursuant to this subchapter shall be at pub- and deliver to the purchaser a deed convey- purchasers and encumbrancers for value lic auction and shall be scheduled to begin at ing the security property to the purchaser without notice. a time between the hours of 9:00 a.m. and 4:00 that grants and conveys title to the security ‘‘(c) DEED TO BE ACCEPTED FOR FILING.— p.m. local time. The foreclosure sale shall be property without warranty or covenants to The register of deeds or other appropriate of- held at the location specified in the notice of the purchaser. The execution of the fore- ficial of the county or counties where real foreclosure sale, which shall be a location closure trustee’s deed shall have the effect of estate deeds are regularly filed shall accept where real estate foreclosure auctions are conveying all of the right, title, and interest for filing and shall file the foreclosure trust- customarily held in the county or one of the in the security property covered by the ee’s deed and affidavit, if any, and any other counties in which the property to be sold is mortgage. Notwithstanding any other law to instruments submitted for filing in relation located or at a courthouse therein, or upon the contrary, the foreclosure trustee’s deed to the foreclosure of the security property the property to be sold. Sale of security shall be a conveyance of the security prop- under this subchapter. property situated in two or more counties erty and not a quitclaim. No judicial pro- ‘‘SEC. 3412. EFFECT OF SALE. may be held in any one of the counties in ceeding shall be required ancillary or supple- ‘‘A sale conducted under this subchapter to which any part of the security property is mentary to the procedures provided in this a bona fide purchaser shall bar all claims situated. The foreclosure trustee may des- chapter to establish the validity of the con- upon the security property by— ignate the order in which multiple tracts of veyance. ‘‘(1) any person to whom the notice of fore- security property are sold. ‘‘(b) DEATH OF PURCHASER PRIOR TO CON- closure sale was mailed as provided in this ‘‘(b) BIDDING REQUIREMENTS.—Written one- SUMMATION OF SALE.—If a purchaser dies be- subchapter who claims an interest in the price sealed bids shall be accepted by the fore execution and delivery of the deed con- property subordinate to that of the mort- foreclosure trustee, if submitted by the agen- veying the security property to the pur- gage, and the heir, devisee, executor, admin- cy head or other persons for entry by an- chaser, the foreclosure trustee shall execute istrator, successor or assignee claiming nouncement by the foreclosure trustee at the and deliver the deed to the representative of under any such person; sale. The sealed bids shall be submitted in the purchaser’s estate upon payment of the ‘‘(2) any person claiming any interest in accordance with the terms set forth in the purchase price in accordance with the terms the property subordinate to that of the notice of foreclosure sale. The agency head of sale. Such delivery to the representative mortgage, if such person had actual knowl- or any other person may bid at the fore- of the purchaser’s estate shall have the same edge of the sale; closure sale, even if the agency head or other effect as if accomplished during the lifetime ‘‘(3) any person so claiming, whose assign- person previously submitted a written one- of the purchaser. ment, mortgage, or other conveyance was price bid. The agency head may bid a credit ‘‘(c) PURCHASER CONSIDERED BONA FIDE not filed in the proper place for filing, or against the debt due without the tender or PURCHASER WITHOUT NOTICE.—The purchaser whose judgment or decree was not filed in payment of cash. The foreclosure trustee of property under this subchapter shall be the proper place for filing, prior to the date may serve as auctioneer, or may employ an presumed to be a bona fide purchaser with- of filing of the notice of foreclosure sale as auctioneer who may be paid from the sale out notice of defects, if any, in the title con- required by section 3406(a), and the heir, dev- proceeds. If an auctioneer is employed, the veyed to the purchaser. isee, executor, administrator, successor or foreclosure trustee is not required to attend ‘‘(d) POSSESSION BY PURCHASER; CONTINUING assignee of such a person; or the sale. The foreclosure trustee or an auc- INTERESTS.—A purchaser at a foreclosure ‘‘(4) any other person claiming under a tioneer may bid as directed by the agency sale conducted pursuant to this subchapter statutory lien or encumbrance not required head. shall be entitled to possession upon passage to be filed and attaching to the title or inter- ‘‘(c) POSTPONEMENT OF SALE.—The fore- of title to the security property, subject to est of any person designated in any of the closure trustee shall have discretion, prior to any interest or interests senior to that of the foregoing subsections of this section. or at the time of sale, to postpone the fore- mortgage. The right to possession of any per- ‘‘SEC. 3413. DISPOSITION OF SALE PROCEEDS. closure sale. The foreclosure trustee may son without an interest senior to the mort- ‘‘(a) DISTRIBUTION OF SALE PROCEEDS.—The postpone a sale to a later hour the same day gage who is in possession of the property foreclosure trustee shall distribute the pro- by announcing or posting the new time and shall terminate immediately upon the pas- ceeds of the foreclosure sale in the following place of the foreclosure sale at the time and sage of title to the security property, and order— place originally scheduled for the foreclosure the person shall vacate the security property ‘‘(1)(A) to pay the commission of the fore- sale. The foreclosure trustee may instead immediately. The purchaser shall be entitled closure trustee, other than an agency em- postpone the foreclosure sale for not fewer to take any steps available under Federal ployee, the greater of— than 9 nor more than 31 days, by serving no- law or State law to obtain possession. ‘‘(i) the sum of— tice that the foreclosure sale has been post- ‘‘(e) RIGHT OF REDEMPTION; RIGHT OF POS- ‘‘(I) 3 percent of the first $1,000 collected, poned to a specified date, and the notice may SESSION.—This subchapter shall preempt all plus include any revisions the foreclosure trustee Federal and State rights of redemption, stat- ‘‘(II) 1.5 percent on the excess of any sum deems appropriate. The notice shall be utory of common law. Upon conclusion of collected over $1,000; or served by publication, mailing, and posting the public auction of the security property, ‘‘(ii) $250; and in accordance with subsections 3406 (b) and no person shall have a right of redemption. ‘‘(B) the amounts described in subpara- (c), except that publication may be made on ‘‘(f) PROHIBITION OF IMPOSITION OF TAX ON graph (A)(i) shall be computed on the gross any of three separate days prior to the new CONVEYANCE BY THE UNITED STATES OR AGEN- proceeds of all security property sold at a date of the foreclosure sale, and mailing may CY THEREOF.—No tax, or fee in the nature of single sale; be made at any time at least 7 days prior to a tax, for the transfer of title to the security ‘‘(2) to pay the expense of any auctioneer the new data of the foreclosure sale. property by the foreclosure trustee’s deed employed by the foreclosure trustee, if any, ‘‘(d) LIABILITY OF SUCCESSFUL BIDDER WHO shall be imposed upon or collected from the except that the commission payable to the FAILS TO COMPLY.—The foreclosure trustee foreclosure trustee or the purchaser by any foreclosure trustee pursuant to paragraph (1) may require a bidder to make a cash deposit State or political subdivision thereof. shall be reduced by the amount paid to an before the bid is accepted. The amount or ‘‘SEC. 3411. RECORD OF FORECLOSURE AND auctioneer, unless the agency head deter- percentage of the cash deposit shall be stated SALE. mines that such reduction would adversely by the foreclosure trustee in the notice of ‘‘(a) RECITAL REQUIREMENTS.—The fore- affect the ability of the agency head to re- foreclosure sale. A successful bidder at the closure trustee shall recite in the deed to the tain qualified foreclosure trustees or auc- foreclosure sale who fails to comply with the purchaser, or in an addendum to the fore- tioneers; terms of the sale shall forfeit the cash de- closure trustee’s deed, or shall prepare an af- ‘‘(3) to pay for the costs of foreclosure, in- posit or, at the election of the foreclosure fidavit stating— cluding— trustee, shall be liable to the agency on a ‘‘(1) the date, time, and place of sale; ‘‘(A) reasonable and necessary advertising subsequent sale of the property for all net ‘‘(2) the date of the mortgage, the office in costs and postage incurred in giving notice losses incurred by the agency as a result of which the mortgage is filed, and the location pursuant to section 3406; such failure. of the filing of the mortgage; ‘‘(B) mileage for posting notices and for ‘‘(e) EFFECT OF SALE.—Any foreclosure sale ‘‘(3) the persons served with the notice of the foreclosure trustee’s or auctioneer’s at- held in accordance with this subchapter shall foreclosure sale; tendance at the sale at the rate provided in S3670 CONGRESSIONAL RECORD — SENATE April 18, 1996 section 1921 of title 28, United States Code, TITLE III—IRS LEVY AUTHORITY (2) in paragraph (4), by inserting ‘‘(k)(8),’’ for mileage by the most reasonable road dis- Subchapter A—Amendments to the Internal after tance; Revenue Code of 1986 ‘‘(j)(1) or (2),’’. ‘‘(C) reasonable and necessary costs actu- (c) Section 552a(a)(8)(B) of title 5, United SEC. 1301. PROVISION FOR CONTINUOUS LEVY. States Code, is amended by adding at the end ally incurred in connection with any search Section 6331 of the Internal Revenue Code of title and lien records; and the following new clause: of 1986 (26 U.S.C. 6331) is amended— ‘‘(ix) matches performed incident to a levy ‘‘(D) necessary costs incurred by the fore- (1) by redesignating subsection (h) as sub- closure trustee to file documents; described in section 6103(k)(8) of the Internal section (i); and Revenue Code of 1986.’’. ‘‘(4) to pay valid real property tax liens or (2) by inserting after subsection (g) the fol- assessments, if required by the notice of lowing new subsection: foreclosure sale; ‘‘(h) CONTINUING LEVY ON NON-MEANS TEST- DOMENICI (AND WELLSTONE) ‘‘(5) to pay any liens senior to the mort- ED FEDERAL PAYMENTS.—The effect of a levy AMENDMENT NO. 3681 gage, if required by the notice of foreclosure on non-means tested Federal payments to or Mr. DOMENICI (for himself and Mr. sale; received by a taxpayer shall be continuous WELLSTONE) proposed an amendment to ‘‘(6) to pay service charges and advance- from the date such levy is first made until the bill S. 1028, supra; as follows: ments for taxes, assessments, and property such levy is released. Notwithstanding sec- At the end of title III, add the following: insurance premiums; tion 6334, such levy shall attach to up to 15 ll ‘‘(7) to pay late charges and other adminis- percent of any salary or pension payment SEC. . PARITY FOR MENTAL HEALTH SERV- ICES. trative costs and the principal and interest due to the taxpayer. For the purposes of this (a) PROHIBITION.—An employee health ben- subsection, the term ‘non-means tested Fed- balances secured by the mortgage, including efit plan, or a health plan issuer offering a eral payment’ refers to a Federal payment expenditures for the necessary protection, group health plan or an individual health for which eligibility is not based on the in- preservation, and repair of the security prop- plan, shall not impose treatment limitations come and/or assets of a payee, or that is not erty as authorized under the debt instrument or financial requirements on the coverage of a loan.’’. or mortgage and interest thereon if provided mental health services if similar limitations for in the debt instrument or mortgage, pur- SEC. 1302. MODIFICATION OF LEVY EXEMPTION or requirements are not imposed on coverage suant to the agency’s procedure. Section 6334 of the Internal Revenue Code for services for other conditions. ‘‘(b) INSUFFICIENT PROCEEDS.—In the event of 1986 (26 U.S.C. 6334) is amended by adding (b) RULE OF CONSTRUCTION.—Nothing in there are no proceeds of sale or the proceeds at the end the following new subsection: subsection (a) shall be construed as prohibit- are insufficient to pay the costs and expenses ‘‘(f) LEVY ALLOWED ON CERTAIN NON-MEANS ing an employee health benefit plan, or a set forth in subsection (a), the agency head TESTED FEDERAL PAYMENTS.—Non-means health plan issuer offering a group health shall pay such costs and expenses as author- tested amounts— plan or an individual health plan, from re- ized by applicable law. (1) described in subsections (a)(7) and (a)(9) quiring preadmission screening prior to the ‘‘(c) SURPLUS MONIES.— of this section; and authorization of services covered under the ‘‘(1) After making the payments required (2) annuity or pension payments under the plan or from applying other limitations that by subsection (a), the foreclosure trustee Railroad Retirement Act and benefits under restrict coverage for mental health services shall— the Railroad Unemployment Insurance Act to those services that are medically nec- ‘‘(A) distribute any surplus to pay liens in described in subsection (a)(6) of this section, essary. the order of priority under Federal law or shall not be exempt from levy if the Sec- TITLE IV—INTERNAL REVENUE CODE AND the law of the State where the security prop- retary approves the levy of such property.’’. OTHER PROVISIONS erty is located; and SEC. 1303. CONFIDENTIALITY AND DISCLOSURE SEC. 400. REFERENCES. ‘‘(B) pay to the person who was the owner OF RETURNS AND RETURN INFOR- MATION. Except as otherwise expressly provided, of record on the date the notice of fore- whenever in this title an amendment or re- closure sale was filed the balance, if any, (a) Section 6103 of the Internal Revenue Code of 1986 (26 U.S.C. 6103) is amended by peal is expressed in terms of an amendment after any payments made pursuant to para- to, or repeal of, a section or other provision, graph (1). adding at the end of subsection (k) the following new paragraph: the reference shall be considered to be made ‘‘(2) If the person to whom such surplus is to a section or other provision of the Inter- ‘‘(8) LEVIES ON CERTAIN GOVERNMENT PAY- to be paid cannot be located, or if the surplus nal Revenue Code of 1986. available is insufficient to pay all claimants MENTS.— Subtitle A—Foreign Trust Tax Compliance and the claimants cannot agree on the dis- ‘‘(A) DISCLOSURE OF RETURN INFORMATION IN tribution of the surplus, that portion of the LEVIES ON FINANCIAL MANAGEMENT SERV- SEC. 401. IMPROVED INFORMATION REPORTING sale proceeds may be deposited by the fore- ICE.—The Secretary may disclose to officers ON FOREIGN TRUSTS. (a) IN GENERAL.—Section 6048 (relating to closure trustee with an appropriate official and employees of the Financial Management returns as to certain foreign trusts) is authorized under law to receive funds under Service return information, including tax- amended to read as follows: such circumstances. If such a procedure for payer identity information, the amount of the deposit of disputed funds is not available, any unpaid liability under this title (includ- ‘‘SEC. 6048. INFORMATION WITH RESPECT TO CERTAIN FOREIGN TRUSTS. and the foreclosure trustee files a bill of ing penalties and interest), and the type of ‘‘(a) NOTICE OF CERTAIN EVENTS.— interpleader or is sued as a stakeholder to tax and tax period to which such unpaid li- ‘‘(1) GENERAL RULE.—On or before the 90th determine entitlement to such funds, the ability relates, in serving a notice of levy, or day (or such later day as the Secretary may foreclosure trustee’s necessary costs in tak- release of such levy, with respect to any ap- prescribe) after any reportable event, the re- ing or defending such action shall be de- plicable government payment. sponsible party shall provide written notice ducted first from the disputed funds. ‘‘(B) RESTRICTION ON USE OF DISCLOSED IN- FORMATION.—Return information disclosed of such event to the Secretary in accordance ‘‘SEC. 3414. DEFICIENCY JUDGMENT. under subparagraph (A) may be used by offi- with paragraph (2). ‘‘(a) IN GENERAL.—If after deducting the cers and employees of the Financial Manage- ‘‘(2) CONTENTS OF NOTICE.—The notice re- disbursements described in section 3413, the ment Service only for the purpose of, and to quired by paragraph (1) shall contain such price at which the security property is sold the extent necessary in, transferring levied information as the Secretary may prescribe, at a foreclosure sale is insufficient to pay funds in satisfaction of the levy, maintaining including— the unpaid balance of the debt secured by the appropriate agency records in regard to such ‘‘(A) the amount of money or other prop- security property, counsel for the United levy or the release thereof, notifying the tax- erty (if any) transferred to the trust in con- States may commence an action or actions payer and the agency certifying such pay- nection with the reportable event, and against any or all debtors to recover the de- ment that the levy has been honored, or in ‘‘(B) the identity of the trust and of each ficiency, unless specifically prohibited by the defense of any litigation ensuing from trustee and beneficiary (or class of bene- the mortgage. The United States is also enti- the honor of such levy. ficiaries) of the trust. tled to recover any amount authorized by ‘‘(C) APPLICABLE GOVERNMENT PAYMENT.— ‘‘(3) REPORTABLE EVENT.—For purposes of section 3011 and costs of the action. For purposes of this paragraph, the term ‘ap- this subsection— ‘‘(b) LIMITATION.—Any action commenced plicable government payment’ means any ‘‘(A) IN GENERAL.—The term ‘reportable to recover the deficiency shall be brought non-means tested Federal payment, as de- event’ means— within 6 years of the last sale of security fined in section 6331(h) certified to the Fi- ‘‘(i) the creation of any foreign trust by a property. nancial Management Service for disburse- United States person, ‘‘(c) CREDITS.—The amount payable by a ment and any other payment certified to the ‘‘(ii) the transfer of any money or property private mortgage guaranty insurer shall be Financial Management Service for disburse- (directly or indirectly) to a foreign trust by credited to the account of the debtor prior to ment and which the Commissioner des- a United States person, including a transfer the commencement of an action for any defi- ignates by published notice.’’; by reason of death, and ciency owed by the debtor. Nothing in this (b) Section 6301(p) of the Internal Revenue ‘‘(iii) the death of a citizen or resident of subsection shall curtail or limit the subroga- Code of 1986 (26 U.S.C. 6301(p)), is amended— the United States if— tion rights of a private mortgage guaranty (1) in paragraph (3)(A), by inserting ‘‘(8)’’ ‘‘(I) the decedent was treated as the owner insurer.’’. after ‘‘(6),’’; and of any portion of a foreign trust under the April 18, 1996 CONGRESSIONAL RECORD — SENATE S3671 rules of subpart E of part I of subchapter J in this subparagraph shall not be considered the person required to file such notice or re- of chapter 1, or to have an office or a permanent establish- turn shall pay a penalty equal to 35 percent ‘‘(II) any portion of a foreign trust was in- ment in the United States, or to be engaged of the gross reportable amount. If any failure cluded in the gross estate of the decedent. in a trade or business in the United States, described in the preceding sentence contin- ‘‘(B) EXCEPTIONS.— solely because of the activities of such agent ues for more than 90 days after the day on ‘‘(i) FAIR MARKET VALUE SALES.—Subpara- pursuant to this subsection. which the Secretary mails notice of such graph (A)(ii) shall not apply to any transfer ‘‘(C) OTHER RULES TO APPLY.—Rules similar failure to the person required to pay such of property to a trust in exchange for consid- to the rules of paragraphs (2) and (4) of sec- penalty, such person shall pay a penalty (in eration of at least the fair market value of tion 6038A(e) shall apply for purposes of this addition to the amount determined under the transferred property. For purposes of the paragraph. the preceding sentence) of $10,000 for each 30- preceding sentence, consideration other than ‘‘(c) REPORTING BY UNITED STATES BENE- day period (or fraction thereof) during which cash shall be taken into account at its fair FICIARIES OF FOREIGN TRUSTS.— such failure continues after the expiration of market value and the rules of section ‘‘(1) IN GENERAL.—If any United States per- such 90-day period. In no event shall the pen- 679(a)(3) shall apply. son receives (directly or indirectly) during alty under this subsection with respect to ‘‘(ii) DEFERRED COMPENSATION AND CHARI- any taxable year of such person any distribu- any failure exceed the gross reportable amount. TABLE TRUSTS.—Subparagraph (A) shall not tion from a foreign trust, such person shall ‘‘(b) SPECIAL RULES FOR RETURNS UNDER apply with respect to a trust which is— make a return with respect to such trust for SECTION 6048(b).—In the case of a return re- ‘‘(I) described in section 402(b), 404(a)(4), or such year which includes— quired under section 6048(b)— 404A, or ‘‘(A) the name of such trust, ‘‘(1) the United States person referred to in ‘‘(II) determined by the Secretary to be de- ‘‘(B) the aggregate amount of the distribu- such section shall be liable for the penalty scribed in section 501(c)(3). tions so received from such trust during such imposed by subsection (a), and ‘‘(4) RESPONSIBLE PARTY.—For purposes of taxable year, and ‘‘(2) subsection (a) shall be applied by sub- this subsection, the term ‘responsible party’ ‘‘(C) such other information as the Sec- stituting ‘5 percent’ for ‘35 percent’. means— retary may prescribe. ‘‘(c) GROSS REPORTABLE AMOUNT.—For pur- ‘‘(2) INCLUSION IN INCOME IF RECORDS NOT ‘‘(A) the grantor in the case of the creation poses of subsection (a), the term ‘gross re- PROVIDED.— of an inter vivos trust, portable amount’ means— ‘‘(A) IN GENERAL.—If adequate records are ‘‘(B) the transferor in the case of a report- ‘‘(1) the gross value of the property in- not provided to the Secretary to determine able event described in paragraph (3)(A)(ii) volved in the event (determined as of the the proper treatment of any distribution other than a transfer by reason of death, and date of the event) in the case of a failure re- from a foreign trust, such distribution shall ‘‘(C) the executor of the decedent’s estate lating to section 6048(a), be treated as an accumulation distribution in any other case. ‘‘(2) the gross value of the portion of the includible in the gross income of the dis- ‘‘(b) UNITED STATES GRANTOR OF FOREIGN trust’s assets at the close of the year treated tributee under chapter 1. To the extent pro- TRUST.— as owned by the United States person in the vided in regulations, the preceding sentence ‘‘(1) IN GENERAL.—If, at any time during case of a failure relating to section 6048(b)(1), shall not apply if the foreign trust elects to any taxable year of a United States person, and be subject to rules similar to the rules of such person is treated as the owner of any ‘‘(3) the gross amount of the distributions subsection (b)(2)(B). portion of a foreign trust under the rules of in the case of a failure relating to section ‘‘(B) APPLICATION OF ACCUMULATION DIS- subpart E of part I of subchapter J of chapter 6048(c). TRIBUTION RULES.—For purposes of applying 1, such person shall be responsible to ensure ‘‘(d) REASONABLE CAUSE EXCEPTION.—No that— section 668 in a case to which subparagraph penalty shall be imposed by this section on ‘‘(A) such trust makes a return for such (A) applies, the applicable number of years any failure which is shown to be due to rea- 1 year which sets forth a full and complete ac- for purposes of section 668(a) shall be ⁄2 of sonable cause and not due to willful neglect. counting of all trust activities and oper- the number of years the trust has been in ex- The fact that a foreign jurisdiction would ations for the year, the name of the United istence. impose a civil or criminal penalty on the States agent for such trust, and such other ‘‘(d) SPECIAL RULES.— taxpayer (or any other person) for disclosing information as the Secretary may prescribe, ‘‘(1) DETERMINATION OF WHETHER UNITED the required information is not reasonable and STATES PERSON RECEIVES DISTRIBUTION.—For cause. ‘‘(B) such trust furnishes such information purposes of this section, in determining ‘‘(e) DEFICIENCY PROCEDURES NOT TO as the Secretary may prescribe to each Unit- whether a United States person receives a APPLY.—Subchapter B of chapter 63 (relating ed States person (i) who is treated as the distribution from a foreign trust, the fact to deficiency procedures for income, estate, owner of any portion of such trust or (ii) who that a portion of such trust is treated as gift, and certain excise taxes) shall not apply receives (directly or indirectly) any distribu- owned by another person under the rules of in respect of the assessment or collection of tion from the trust. subpart E of part I of subchapter J of chapter any penalty imposed by subsection (a).’’ ‘‘(2) TRUSTS NOT HAVING UNITED STATES 1 shall be disregarded. (c) CONFORMING AMENDMENTS.— AGENT.— ‘‘(2) DOMESTIC TRUSTS WITH FOREIGN ACTIVI- (1) Paragraph (2) of section 6724(d) is ‘‘(A) IN GENERAL.—If the rules of this para- TIES.—To the extent provided in regulations, amended by striking ‘‘or’’ at the end of sub- graph apply to any foreign trust, the deter- a trust which is a United States person shall paragraph (S), by striking the period at the mination of amounts required to be taken be treated as a foreign trust for purposes of end of subparagraph (T) and inserting ‘‘, or’’, into account with respect to such trust by a this section and section 6677 if such trust has and by inserting after subparagraph (T) the United States person under the rules of sub- substantial activities, or holds substantial following new subparagraph: part E of part I of subchapter J of chapter 1 property, outside the United States. ‘‘(U) section 6048(b)(1)(B) (relating to for- shall be determined by the Secretary. ‘‘(3) TIME AND MANNER OF FILING INFORMA- eign trust reporting requirements).’’ ‘‘(B) UNITED STATES AGENT REQUIRED.—The TION.—Any notice or return required under (2) The table of sections for subpart B of rules of this paragraph shall apply to any this section shall be made at such time and part III of subchapter A of chapter 61 is foreign trust to which paragraph (1) applies in such manner as the Secretary shall pre- amended by striking the item relating to unless such trust agrees (in such manner, scribe. section 6048 and inserting the following new subject to such conditions, and at such time ‘‘(4) MODIFICATION OF RETURN REQUIRE- item: MENTS.—The Secretary is authorized to sus- as the Secretary shall prescribe) to authorize ‘‘Sec. 6048. Information with respect to cer- pend or modify any requirement of this sec- a United States person to act as such trust’s tain foreign trusts.’’ limited agent solely for purposes of applying tion if the Secretary determines that the sections 7602, 7603, and 7604 with respect to— United States has no significant tax interest (3) The table of sections for part I of sub- ‘‘(i) any request by the Secretary to exam- in obtaining the required information.’’ chapter B of chapter 68 is amended by strik- ine records or produce testimony related to (b) INCREASED PENALTIES.—Section 6677 ing the item relating to section 6677 and in- the proper treatment of amounts required to (relating to failure to file information re- serting the following new item: turns with respect to certain foreign trusts) be taken into account under the rules re- ‘‘Sec. 6677. Failure to file information with is amended to read as follows: ferred to in subparagraph (A), or respect to certain foreign ‘‘(ii) any summons by the Secretary for ‘‘SEC. 6677. FAILURE TO FILE INFORMATION trusts.’’ WITH RESPECT TO CERTAIN FOR- such records or testimony. EIGN TRUSTS. (d) EFFECTIVE DATES.— The appearance of persons or production of ‘‘(a) CIVIL PENALTY.—In addition to any (1) REPORTABLE EVENTS.—To the extent re- records by reason of a United States person criminal penalty provided by law, if any no- lated to subsection (a) of section 6048 of the being such an agent shall not subject such tice or return required to be filed by section Internal Revenue Code of 1986, as amended persons or records to legal process for any 6048— by this section, the amendments made by purpose other than determining the correct ‘‘(1) is not filed on or before the time pro- this section shall apply to reportable events treatment under this title of the amounts re- vided in such section, or (as defined in such section 6048) occurring quired to be taken into account under the ‘‘(2) does not include all the information after the date of the enactment of this Act. rules referred to in subparagraph (A). A for- required pursuant to such section or includes (2) GRANTOR TRUST REPORTING.—To the ex- eign trust which appoints an agent described incorrect information, tent related to subsection (b) of such section S3672 CONGRESSIONAL RECORD — SENATE April 18, 1996

6048, the amendments made by this section such trust but shall not otherwise be taken ‘‘(3) SPECIAL RULES.—Except as otherwise shall apply to taxable years of United States into account. provided in regulations prescribed by the persons beginning after the date of the en- ‘‘(C) RESIDENCY STARTING DATE.—For pur- Secretary— actment of this Act. poses of this paragraph, an individual’s resi- ‘‘(A) a controlled foreign corporation (as (3) REPORTING BY UNITED STATES BENE- dency starting date is the residency starting defined in section 957) shall be treated as a FICIARIES.—To the extent related to sub- date determined under section 7701(b)(2)(A). domestic corporation for purposes of para- section (c) of such section 6048, the amend- ‘‘(5) OUTBOUND TRUST MIGRATIONS.—If— graph (1), and ments made by this section shall apply to ‘‘(A) an individual who is a citizen or resi- ‘‘(B) paragraph (1) shall not apply for pur- distributions received after the date of the dent of the United States transferred prop- poses of applying section 1296. enactment of this Act. erty to a trust which was not a foreign trust, ‘‘(4) RECHARACTERIZATION OF PURPORTED SEC. 402. MODIFICATIONS OF RULES RELATING and GIFTS.—In the case of any transfer directly TO FOREIGN TRUSTS HAVING ONE ‘‘(B) such trust becomes a foreign trust or indirectly from a partnership or foreign OR MORE UNITED STATES BENE- while such individual is alive, corporation which the transferee treats as a FICIARIES. then this section and section 6048 shall be ap- gift or bequest, the Secretary may re- (a) TREATMENT OF TRUST OBLIGATIONS, plied as if such individual transferred to such characterize such transfer in such cir- ETC.— trust on the date such trust becomes a for- cumstances as the Secretary determines to (1) Paragraph (2) of section 679(a) is amend- eign trust an amount equal to the portion of be appropriate to prevent the avoidance of ed by striking subparagraph (B) and insert- such trust attributable to the property pre- the purposes of this subsection. ing the following: viously transferred by such individual to ‘‘(5) SPECIAL RULE WHERE GRANTOR IS FOR- ‘‘(B) TRANSFERS AT FAIR MARKET VALUE.— such trust. A rule similar to the rule of para- EIGN PERSON.—If— To any transfer of property to a trust in ex- graph (4)(B) shall apply for purposes of this ‘‘(A) but for this subsection, a foreign per- change for consideration of at least the fair paragraph.’’ son would be treated as the owner of any por- market value of the transferred property. (d) MODIFICATIONS RELATING TO WHETHER tion of a trust, and For purposes of the preceding sentence, con- TRUST HAS UNITED STATES BENEFICIARIES.— ‘‘(B) such trust has a beneficiary who is a sideration other than cash shall be taken Subsection (c) of section 679 is amended by United States person, into account at its fair market value.’’ adding at the end the following new para- such beneficiary shall be treated as the (2) Subsection (a) of section 679 (relating to graph: grantor of such portion to the extent such foreign trusts having one or more United ‘‘(3) CERTAIN UNITED STATES BENEFICIARIES beneficiary has made transfers of property States beneficiaries) is amended by adding at DISREGARDED.—A beneficiary shall not be by gift (directly or indirectly) to such for- the end the following new paragraph: treated as a United States person in applying eign person. For purposes of the preceding ‘‘(3) CERTAIN OBLIGATIONS NOT TAKEN INTO this section with respect to any transfer of sentence, any gift shall not be taken into ac- ACCOUNT UNDER FAIR MARKET VALUE EXCEP- property to foreign trust if such beneficiary count to the extent such gift would be ex- TION.— first became a United States person more cluded from taxable gifts under section ‘‘(A) IN GENERAL.—In determining whether than 5 years after the date of such transfer.’’ 2503(b). paragraph (2)(B) applies to any transfer by a (e) TECHNICAL AMENDMENT.—Subparagraph ‘‘(6) REGULATIONS.—The Secretary shall person described in clause (ii) or (iii) of sub- (A) of section 679(c)(2) is amended to read as prescribe such regulations as may be nec- paragraph (C), there shall not be taken into follows: essary or appropriate to carry out the pur- account— ‘‘(A) in the case of a foreign corporation, poses of this subsection, including regula- ‘‘(i) except as provided in regulations, any such corporation is a controlled foreign cor- tions providing that paragraph (1) shall not obligation of a person described in subpara- poration (as defined in section 957(a)),’’. apply in appropriate cases.’’ graph (C), and (f) REGULATIONS.—Section 679 is amended (2) The last sentence of subsection (c) of ‘‘(ii) to the extent provided in regulations, by adding at the end the following new subsection 672 of such Code is amended by in- any obligation which is guaranteed by a per- section: serting ‘‘subsection (f) and’’ before ‘‘sections son described in subparagraph (C). ‘‘(d) REGULATIONS.—The Secretary shall 674’’. ‘‘(B) TREATMENT OF PRINCIPAL PAYMENTS ON prescribe such regulations as may be nec- (b) CREDIT FOR CERTAIN TAXES.—Paragraph OBLIGATION.—Principal payments by the essary or appropriate to carry out the pur- (2) of section 665(d) is amended by adding at trust on any obligation referred to in sub- poses of this section.’’ the end the following new sentence: ‘‘Under paragraph (A) shall be taken into account on (g) EFFECTIVE DATE.—The amendments rules or regulations prescribed by the Sec- and after the date of the payment in deter- made by this section shall apply to transfers retary, in the case of any foreign trust of mining the portion of the trust attributable of property after February 6, 1995. which the settlor or another person would be to the property transferred. SEC. 403. FOREIGN PERSONS NOT TO BE TREAT- treated as owner of any portion of the trust ‘‘(C) PERSONS DESCRIBED.—The persons de- ED AS OWNERS UNDER GRANTOR under subpart E but for section 672(f), the scribed in this subparagraph are— TRUST RULES. term ‘taxes imposed on the trust’ includes ‘‘(i) the trust, (a) GENERAL RULE.— the allocable amount of any income, war ‘‘(ii) any grantor or beneficiary of the (1) Subsection (f) of section 672 (relating to profits, and excess profits taxes imposed by trust, and special rule where grantor is foreign person) any foreign country or possession of the ‘‘(iii) any person who is related (within the is amended to read as follows: United States on the settlor or such other meaning of section 643(i)(2)(B)) to any grant- ‘‘(f) SUBPART NOT TO RESULT IN FOREIGN person in respect of trust gross income.’’ or or beneficiary of the trust.’’ OWNERSHIP.— (c) DISTRIBUTIONS BY CERTAIN FOREIGN (b) EXEMPTION OF TRANSFERS TO CHARI- ‘‘(1) IN GENERAL.—Notwithstanding any TRUSTS THROUGH NOMINEES.— TABLE TRUSTS.—Subsection (a) of section 679 other provision of this subpart, this subpart (1) Section 643 is amended by adding at the is amended by striking ‘‘section 404(a)(4) or shall apply only to the extent such applica- end the following new subsection: 404A’’ and inserting ‘‘section tion results in an amount being currently ‘‘(h) DISTRIBUTIONS BY CERTAIN FOREIGN 6048(a)(3)(B)(ii)’’. taken into account (directly or through 1 or TRUSTS THROUGH NOMINEES.—For purposes of (c) OTHER MODIFICATIONS.—Subsection (a) more entities) under this chapter in comput- this part, any amount paid to a United of section 679 is amended by adding at the ing the income of a citizen or resident of the States person which is derived directly or in- end the following new paragraphs: United States or a domestic corporation. directly from a foreign trust of which the ‘‘(4) SPECIAL RULES APPLICABLE TO FOREIGN ‘‘(2) EXCEPTIONS.— payor is not the grantor shall be deemed in GRANTOR WHO LATER BECOMES A UNITED ‘‘(A) CERTAIN REVOCABLE AND IRREVOCABLE the year of payment to have been directly STATES PERSON.— TRUSTS.—Paragraph (1) shall not apply to paid by the foreign trust to such United ‘‘(A) IN GENERAL.—If a nonresident alien any trust if— States person.’’ individual has a residency starting date ‘‘(i) the power to revest absolutely in the (2) Section 665 is amended by striking sub- within 5 years after directly or indirectly grantor title to the trust property is exer- section (c). transferring property to a foreign trust, this cisable solely by the grantor without the ap- (d) EFFECTIVE DATE.— section and section 6048 shall be applied as if proval or consent of any other person or with (1) IN GENERAL.—Except as provided by such individual transferred to such trust on the consent of a related or subordinate party paragraph (2), the amendments made by this the residency starting date an amount equal who is subservient to the grantor, or section shall take effect on the date of the to the portion of such trust attributable to ‘‘(ii) the only amounts distributable from enactment of this Act. the property transferred by such individual such trust (whether income or corpus) during (2) EXCEPTION FOR CERTAIN TRUSTS.—The to such trust in such transfer. the lifetime of the grantor are amounts dis- amendments made by this section shall not ‘‘(B) TREATMENT OF UNDISTRIBUTED IN- tributable to the grantor or the spouse of the apply to any trust— COME.—For purposes of this section, undis- grantor. (A) which is treated as owned by the grant- tributed net income for periods before such ‘‘(B) COMPENSATORY TRUSTS.—Except as or or another person under section 676 or 677 individual’s residency starting date shall be provided in regulations, paragraph (1) shall (other than subsection (a)(3) thereof) of the taken into account in determining the por- not apply to any portion of a trust distribu- Internal Revenue Code of 1986, and tion of the trust which is attributable to tions from which are taxable as compensa- (B) which is in existence on September 19, property transferred by such individual to tion for services rendered. 1995. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3673

The preceding sentence shall not apply to (c) EFFECTIVE DATE.—The amendments (c) TREATMENT OF LOANS FROM TRUSTS.— the portion of any such trust attributable to made by this section shall apply to amounts (1) IN GENERAL.—Section 643 (relating to any transfer to such trust after September received after the date of the enactment of definitions applicable to subparts A, B, C, 19, 1995. this Act in taxable years ending after such and D) is amended by adding at the end the (e) TRANSITIONAL RULE.—If— date. following new subsection: (1) by reason of the amendments made by SEC. 405. MODIFICATION OF RULES RELATING TO ‘‘(i) LOANS FROM FOREIGN TRUSTS.—For this section, any person other than a United FOREIGN TRUSTS WHICH ARE NOT purposes of subparts B, C, and D— States person ceases to be treated as the GRANTOR TRUSTS. ‘‘(1) GENERAL RULE.—Except as provided in owner of a portion of a domestic trust, and (a) MODIFICATION OF INTEREST CHARGE ON regulations, if a foreign trust makes a loan (2) before January 1, 1997, such trust be- ACCUMULATION DISTRIBUTIONS.—Subsection of cash or marketable securities directly or comes a foreign trust, or the assets of such (a) of section 668 (relating to interest charge indirectly to— trust are transferred to a foreign trust, on accumulation distributions from foreign ‘‘(A) any grantor or beneficiary of such no tax shall be imposed by section 1491 of the trusts) is amended to read as follows: trust who is a United States person, or Internal Revenue Code of 1986 by reason of ‘‘(a) GENERAL RULE.—For purposes of the ‘‘(B) any United States person not de- such trust becoming a foreign trust or the tax determined under section 667(a)— scribed in subparagraph (A) who is related to assets of such trust being transferred to a ‘‘(1) INTEREST DETERMINED USING UNDER- such grantor or beneficiary, foreign trust. PAYMENT RATES.—The interest charge deter- the amount of such loan shall be treated as SEC. 404. INFORMATION REPORTING REGARDING mined under this section with respect to any a distribution by such trust to such grantor FOREIGN GIFTS. distribution is the amount of interest which or beneficiary (as the case may be). (a) IN GENERAL.—Subpart A of part III of would be determined on the partial tax com- ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For subchapter A of chapter 61 is amended by in- puted under section 667(b) for the period de- purposes of this subsection— serting after section 6039E the following new scribed in paragraph (2) using the rates and ‘‘(A) CASH.—The term ‘cash’ includes for- section: the method under section 6621 applicable to eign currencies and cash equivalents. ‘‘SEC. 6039F. NOTICE OF GIFTS RECEIVED FROM underpayments of tax. ‘‘(B) RELATED PERSON.— FOREIGN PERSONS. ‘‘(2) PERIOD.—For purposes of paragraph ‘‘(i) IN GENERAL.—A person is related to an- ‘‘(a) IN GENERAL.—If the value of the aggre- (1), the period described in this paragraph is other person if the relationship between such gate foreign gifts received by a United States the period which begins on the date which is persons would result in a disallowance of person (other than an organization described the applicable number of years before the losses under section 267 or 707(b). In applying in section 501(c) and exempt from tax under date of the distribution and which ends on section 267 for purposes of the preceding sen- section 501(a)) during any taxable year ex- the date of the distribution. tence, section 267(c)(4) shall be applied as if ceeds $10,000, such United States person shall ‘‘(3) APPLICABLE NUMBER OF YEARS.—For the family of an individual includes the furnish (at such time and in such manner as purposes of paragraph (2)— spouses of the members of the family. the Secretary shall prescribe) such informa- ‘‘(A) IN GENERAL.—The applicable number ‘‘(ii) ALLOCATION.—If any person described tion as the Secretary may prescribe regard- of years with respect to a distribution is the in paragraph (1)(B) is related to more than ing each foreign gift received during such number determined by dividing— one person, the grantor or beneficiary to year. ‘‘(i) the sum of the products described in whom the treatment under this subsection ‘‘(b) FOREIGN GIFT.—For purposes of this subparagraph (B) with respect to each undis- applies shall be determined under regula- section, the term ‘foreign gift’ means any tributed income year, by tions prescribed by the Secretary. amount received from a person other than a ‘‘(ii) the aggregate undistributed net in- ‘‘(C) EXCLUSION OF TAX-EXEMPTS.—The United States person which the recipient come. term ‘United States person’ does not include treats as a gift or bequest. Such term shall any entity exempt from tax under this chap- The quotient determined under the preceding ter. not include any qualified transfer (within sentence shall be rounded under procedures the meaning of section 2503(e)(2)). ‘‘(D) TRUST NOT TREATED AS SIMPLE prescribed by the Secretary. TRUST.—Any trust which is treated under ‘‘(c) PENALTY FOR FAILURE TO FILE INFOR- ‘‘(B) PRODUCT DESCRIBED.—For purposes of MATION.— this subsection as making a distribution subparagraph (A), the product described in shall be treated as not described in section ‘‘(1) IN GENERAL.—If a United States person this subparagraph with respect to any undis- fails to furnish the information required by 651. tributed income year is the product of— ‘‘(3) SUBSEQUENT TRANSACTIONS REGARDING subsection (a) with respect to any foreign ‘‘(i) the undistributed net income for such gift within the time prescribed therefor (in- LOAN PRINCIPAL.—If any loan is taken into year, and account under paragraph (1), any subsequent cluding extensions)— ‘‘(ii) the sum of the number of taxable ‘‘(A) the tax consequences of the receipt of transaction between the trust and the origi- years between such year and the taxable nal borrower regarding the principal of the such gift shall be determined by the Sec- year of the distribution (counting in each retary in the Secretary’s sole discretion loan (by way of complete or partial repay- case the undistributed income year but not ment, satisfaction, cancellation, discharge, from the Secretary’s own knowledge or from counting the taxable year of the distribu- such information as the Secretary may ob- or otherwise) shall be disregarded for pur- tion). poses of this title.’’ tain through testimony or otherwise, and ‘‘(4) UNDISTRIBUTED INCOME YEAR.—For pur- (2) TECHNICAL AMENDMENT.—Paragraph (8) ‘‘(B) such United States person shall pay poses of this subsection, the term ‘undistrib- of section 7872(f) is amended by inserting ‘‘, (upon notice and demand by the Secretary uted income year’ means any prior taxable 643(i),’’ before ‘‘or 1274’’ each place it ap- and in the same manner as tax) an amount year of the trust for which there is undistrib- pears. equal to 5 percent of the amount of such for- uted net income, other than a taxable year (d) EFFECTIVE DATES.— eign gift for each month for which the fail- during all of which the beneficiary receiving (1) INTEREST CHARGE.—The amendment ure continues (not to exceed 25 percent of the distribution was not a citizen or resident made by subsection (a) shall apply to dis- such amount in the aggregate). of the United States. tributions after the date of the enactment of ‘‘(2) REASONABLE CAUSE EXCEPTION.—Para- ‘‘(5) DETERMINATION OF UNDISTRIBUTED NET this Act. graph (1) shall not apply to any failure to re- INCOME.—Notwithstanding section 666, for (2) ABUSIVE TRANSACTIONS.—The amend- port a foreign gift if the United States per- purposes of this subsection, an accumulation ment made by subsection (b) shall take ef- son shows that the failure is due to reason- distribution from the trust shall be treated fect on the date of the enactment of this Act. able cause and not due to willful neglect. as reducing proportionately the undistrib- (3) LOANS FROM TRUSTS.—The amendment ‘‘(d) COST-OF-LIVING ADJUSTMENT.—In the uted net income for undistributed income made by subsection (c) shall apply to loans case of any taxable year beginning after De- years. of cash or marketable securities after Sep- cember 31, 1996, the $10,000 amount under ‘‘(6) PERIODS BEFORE 1996.—Interest for the tember 19, 1995. subsection (a) shall be increased by an portion of the period described in paragraph amount equal to the product of such amount SEC. 406. RESIDENCE OF ESTATES AND TRUSTS, (2) which occurs before January 1, 1996, shall ETC. and the cost-of-living adjustment for such be determined— (a) TREATMENT AS UNITED STATES PER- taxable year under section 1(f)(3), except ‘‘(A) by using an interest rate of 6 percent, SON.— that subparagraph (B) thereof shall be ap- and (1) IN GENERAL.—Paragraph (30) of section plied by substituting ‘1995’ for ‘1992’. ‘‘(B) without compounding until January 1, 7701(a) is amended by striking subparagraph ‘‘(e) REGULATIONS.—The Secretary shall 1996.’’ (D) and by inserting after subparagraph (C) prescribe such regulations as may be nec- (b) ABUSIVE TRANSACTIONS.—Section 643(a) the following: essary or appropriate to carry out the pur- is amended by inserting after paragraph (6) ‘‘(D) any estate or trust if— poses of this section.’’ the following new paragraph: ‘‘(i) a court within the United States is (b) CLERICAL AMENDMENT.—The table of ‘‘(7) ABUSIVE TRANSACTIONS.—The Sec- able to exercise primary supervision over the sections for such subpart is amended by in- retary shall prescribe such regulations as administration of the estate or trust, and serting after the item relating to section may be necessary or appropriate to carry out ‘‘(ii) in the case of a trust, one or more 6039E the following new item: the purposes of this part, including regula- United States fiduciaries have the authority ‘‘Sec. 6039F. Notice of large gifts received tions to prevent avoidance of such pur- to control all substantial decisions of the from foreign persons.’’ poses.’’ trust.’’ S3674 CONGRESSIONAL RECORD — SENATE April 18, 1996

(2) CONFORMING AMENDMENT.—Paragraph (10) Section 1038 is amended by striking 1995, a taxpayer to which paragraph (1) ap- (31) of section 7701(a) is amended to read as subsection (f). plied is not a bank (as defined in section 581), follows: (11) Clause (ii) of section 1042(c)(4)(B) is paragraph (1) shall apply to the reserves de- ‘‘(31) FOREIGN ESTATE OR TRUST.—The term amended by striking ‘‘or 593’’. scribed in subparagraph (A)(ii) except that ‘foreign estate’ or ‘foreign trust’ means any (12) Subsection (c) of section 1277 is amend- such reserves shall be taken into account estate or trust other than an estate or trust ed by striking ‘‘or to which section 593 ap- ratably over the 6-taxable year period begin- described in section 7701(a)(30)(D).’’ plies’’. ning with such taxable year. (3) EFFECTIVE DATE.—The amendments (13) Subparagraph (B) of section 1361(b)(2) (4) SUSPENSION OF RECAPTURE IF RESIDEN- made by this subsection shall apply— is amended by striking ‘‘or to which section TIAL LOAN REQUIREMENT MET.— (A) to taxable years beginning after De- 593 applies’’. (A) IN GENERAL.—In the case of a bank cember 31, 1996, or (14) The table of sections for part II of sub- which meets the residential loan require- (B) at the election of the trustee of a trust, chapter H of chapter 1 is amended by strik- ment of subparagraph (B) for a taxable year to taxable years ending after the date of the ing the items relating to sections 593, 595, beginning after December 31, 1995, and before enactment of this Act. and 596. January 1, 1998— Such an election, once made, shall be irrev- (c) EFFECTIVE DATE.— (i) no adjustment shall be taken into account under paragraph (1) for such taxable ocable. (1) IN GENERAL.—Except as provided in (b) DOMESTIC TRUSTS WHICH BECOME FOR- paragraph (2), the amendments made by this year, and (ii) such taxable year shall be disregarded EIGN TRUSTS.— section shall apply to taxable years begin- in determining— (1) IN GENERAL.—Section 1491 (relating to ning after December 31, 1995. imposition of tax on transfers to avoid in- (2) REPEAL OF SECTION 595.—The repeal of (I) whether any other taxable year is a tax- come tax) is amended by adding at the end section 595 under subsection (b)(7) shall able year for which an adjustment is re- the following new flush sentence: apply to property acquired in taxable years quired to be taken into account under para- beginning after December 31, 1995. graph (1), and ‘‘If a trust which is not a foreign trust be- (II) the amount of such adjustment. comes a foreign trust, such trust shall be (d) 6-YEAR SPREAD OF ADJUSTMENTS.— (1) IN GENERAL.—In the case of any tax- (B) RESIDENTIAL LOAN REQUIREMENT.—A treated for purposes of this section as having taxpayer meets the residential loan require- transferred, immediately before becoming a payer who is required by reason of the amendments made by this section to change ment of this subparagraph for any taxable foreign trust, all of its assets to a foreign year if the principal amount of the residen- trust.’’ its method of computing reserves for bad debts— tial loans made by the taxpayer during such (2) PENALTY.—Section 1494 is amended by year is not less than the base amount for adding at the end the following new sub- (A) such change shall be treated as a change in a method of accounting, such year. section: (C) RESIDENTIAL LOAN.—For purposes of ‘‘(c) PENALTY.—In the case of any failure to (B) such change shall be treated as initiated by the taxpayer and as having been this paragraph, the term ‘‘residential loan’’ file a return required by the Secretary with means any loan described in clause (v) of sec- respect to any transfer described in section made with the consent of the Secretary, and (C) the net amount of the adjustments re- tion 7701(a)(19)(C) of such Code but only if 1491 with respect to a trust, the person re- such loan is incurred in acquiring, construct- quired to be taken into account by the tax- quired to file such return shall be liable for ing, or improving the property described in payer under section 481(a)— the penalties provided in section 6677 in the such clause. (i) shall be determined by taking into ac- same manner as if such failure were a failure (D) BASE AMOUNT.—For purposes of sub- count only applicable excess reserves, and to file a return under section 6048(a).’’ paragraph (B), the base amount is the aver- (ii) as so determined, shall be taken into (3) EFFECTIVE DATE.—The amendments age of the principal amounts of the residen- account ratably over the 6-taxable year pe- made by this subsection shall take effect on tial loans made by the taxpayer during the 6 riod beginning with the first taxable year be- the date of the enactment of this Act. most recent taxable years beginning before ginning after December 31, 1995. Subtitle B—Repeal of Bad Debt Reserce January 1, 1996. At the election of the tax- (2) APPLICABLE EXCESS RESERVES.— Method for Thrift Savings Associations payer who made such loans during each of (A) IN GENERAL.—For purposes of para- such 6 taxable years, the preceding sentence SEC. 411. REPEAL OF BAD DEBT RESERVE METH- graph (1), the term ‘applicable excess re- OD FOR THRIFT SAVINGS ASSOCIA- shall be applied without regard to the tax- serves’ means the excess (if any) of— TIONS. able year in which such principal amount (i) the balance of the reserves described in (a) IN GENERAL.—Section 593 (relating to was the highest and the taxable year in such reserves for losses on loans) is hereby re- section 593(c)(1) of such Code (as in effect on principal amount was the lowest. Such an pealed. the day before the date of the enactment of election may be made only for the first tax- (b) CONFORMING AMENDMENTS.— this Act) as of the close of the taxpayer’s able year beginning after December 31, 1995, (1) Subsection (d) of section 50 is amended last taxable year beginning before January 1, and, if made for such taxable year, shall by adding at the end the following new sen- 1996, over apply to the succeeding taxable year unless tence: (ii) the lesser of— revoked with the consent of the Secretary of ‘‘Paragraphs (1)(A), (2)(A), and (4) of section (I) the balance of such reserves as of the the Treasury or the Secretary’s delegate. 46(e) referred to in paragraph (1) of this sub- close of the taxpayer’s last taxable year be- (E) CONTROLLED GROUPS.—In the case of a section shall not apply to any taxable year ginning before January 1, 1988, or taxpayer which is a member of any con- beginning after December 31, 1995.’’ (II) the balance of the reserves described in trolled group of corporations described in (2) Subsection (e) of section 52 is amended subclause (I), reduce by an amount deter- section 1563(a)(1) of such Code, subparagraph by striking paragraph (1) and by redesignat- mined in the same manner as under section (B) shall be applied with respect to such ing paragraphs (2) and (3) as paragraphs (1) 585(b)(2)(B)(ii) on the basis of the taxable group. and (2), respectively. years described in clause (i) and this clause. (5) CONTINUED APPLICATION OF FRESH START (3) Subsection (a) of section 57 is amended (B) SPECIAL RULE FOR THRIFTS WHICH BE- UNDER SECTION 585 TRANSITIONAL RULES.—In by striking paragraph (4). COME SMALL BANKS.—In the case of a bank (as the case of a taxpayer to which paragraph (1) (4) Section 246 is amended by striking sub- defined in section 581 of such Code) which is applied and which was not a large bank (as section (f). not a large bank (as defined in section defined in section 585(c)(2) of such Code) for (5) Clause (i) of section 291(e)(1)(B) is 585(c)(2) of such Code) for its first taxable its first taxable year beginning after Decem- amended by striking ‘‘or to which section 593 year beginning after December 31, 1995— ber 31, 1995: applies’’. (i) the balance taken into account under (A) IN GENERAL.—For purposes of determin- (6) Subparagraph (A) of section 585(a)(2) is subparagraph (A)(ii) shall not be less than ing the net amount of adjustments referred amended by striking ‘‘other than an organi- the amount which would be the balance of to in section 585(c)(3)(A)(iii) of such Code, zation to which section 593 applies’’. such reserve as of the close of its last taxable there shall be taken into account only the (7) Sections 595 and 596 are hereby re- year beginning before January 1, 1996, if the excess of the reserve for bad debts as of the pealed. additions to such reserve for all taxable close of the last taxable year before the dis- (8) Subsection (a) of section 860E is amend- years had been determined under section qualification year over the balance taken ed— 585(b)(2)(A), and into account by such taxpayer under para- (A) by striking ‘‘Except as provided in (ii) the opening balance of the reserve for graph (2)(A)(ii) of this subsection. paragraph (2), the’’ in paragraph (1) and in- bad debts as of the beginning of such first (B) TREATMENT UNDER ELECTIVE CUT-OFF serting ‘‘The’’, taxable year shall be the balance taken into METHOD.—For purposes of applying section (B) by striking paragraphs (2) and (4) and account under subparagraph (A)(ii) (deter- 585(c)(4) of such Code— redesignating paragraphs (3) and (5) as para- mined after the application of clause (i) of (i) the balance of the reserve taken into ac- graphs (2) and (3), respectively, and this subparagraph). count under subparagraph (B) thereof shall (C) by striking in paragraph (2) (as so re- The preceding sentence shall not apply for be reduced by the balance taken into ac- designated) all that follows ‘‘subsection’’ and purposes of paragraphs (5), (6), and (7). count by such taxpayer under paragraph inserting a period. (3) RECAPTURE OF PRE-1988 RESERVES WHERE (2)(A)(ii) of this subsection, and (9) Paragraph (3) of section 992(d) is amend- TAXPAYER CEASES TO BE BANK.—If during any (ii) no amount shall be includible in gross ed by striking ‘‘or 593’’. taxable year beginning after December 31, income by reason of such reduction. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3675

(6) CONTINUED APPLICATION OF SECTION age in the same market area, as determined (3) USE OF PROJECTS.—A demonstration 593(e).—Notwithstanding the amendments by the Secretary, the Secretary shall use the project that receives funding under para- made by this section, in the case of a tax- otherwise applicable annual adjustment fac- graph (1) shall be utilized as a resource cen- payer to which paragraph (1) of this sub- tor.’’. ter to assist in the training of those individ- section applies, section 593(e) of such Code (b) RESTRAINT ON SECTION 8 RENT IN- uals to be involved in projects established (as in effect on the day before the date of the CREASES.—Section 8(c)(2)(A) of the United under subsection (c). It shall be the goal of enactment of this Act) shall continue to States Housing Act of 1937 (42 U.S.C. such projects to become self-sustaining with- apply to such taxpayer as if such taxpayer 1437f(c)(2)(A)), as amended by subsection (a) in the project area. were a domestic building and loan associa- of this section, is amended by adding at the (c) NEW PROJECTS.—Of the amount appro- tion but the amount of the reserves taken end the following new clause: priated under subsection (a) for a fiscal year, into account under subparagraphs (B) and (C) ‘‘(iii)(I) Subject to subclause (II), with re- the Secretary of Health and Human Services of section 593(e)(1) (as so in effect) shall be spect to any unit assisted under this section shall allocate the remaining amounts for the balance taken into account by such tax- that is occupied by the same family at the such fiscal year among up to 35 new dem- payer under paragraph (2)(A)(ii) of this sub- time of the most recent annual rental ad- onstration projects. Such projects shall be section. justment, if the assistance contract provides community-based and shall attempt to rep- (7) CERTAIN ITEMS INCLUDED AS SECTION for the adjustment of the maximum monthly licate healthy start model projects that have 381(c) ITEMS.—The balance of the applicable rent by applying an annual adjustment fac- been determined by the Secretary of Health excess reserves, and the balance taken into tor, and if the rent for the unit is otherwise and Human Services to be successful. account by a taxpayer under paragraph eligible for an adjustment based on the full (2)(A)(ii) of this subsection, shall be treated amount of the annual adjustment factor, 0.01 HARKIN (AND OTHERS) as items described in section 381(c) of such shall be subtracted from the amount of the AMENDMENT NO. 3683 Code. annual adjustment factor, except that the (8) CONVERSIONS TO CREDIT UNIONS.—In the annual adjustment factor shall not be re- Mr. HARKIN (for himself, Mr. BAU- case of a taxpayer to which paragraph (1) ap- duced to less than 1.0. CUS, and Mr. GRAHAM) proposed an plied which becomes a credit union described ‘‘(II) With respect to any unit described in amendment to the bill S. 1028, supra; as in section 501(c)(14)(A)— subclause (I) that is assisted under the cer- follows: (A) any amount required to be included in tificate program, the adjusted rent shall not At the end of the bill, insert the following the gross income of the credit union by rea- exceed the rent for a comparable unassisted new title: son of this subsection shall be treated as de- unit of similar quality, type, and age in the TITLE V—ADDITIONAL STEPS TO REDUCE rived from an unrelated trade or business (as market area in which the unit is located.’’. HEALTH CARE FRAUD, WASTE, AND defined in section 513), and (c) EFFECTIVE DATE.—The amendments ABUSE (B) for purposes of paragraph (3), the credit made by this section shall be construed to union shall not be treated as if it were a have become effective on October 1, 1995. SEC. 500. SHORT TITLE. This title may be cited as the ‘‘Health Care bank. SEC. 423. FORECLOSURE AVOIDANCE AND BOR- Fraud, Waste, and Abuse Reduction Act of (9) REGULATIONS.—The Secretary of the ROWER ASSISTANCE. 1996’’. Treasury or the Secretary’s delegate shall (a) EFFECTIVENESS AND APPLICABILITY.— prescribe such regulations as may be nec- Section 407 of The Balanced Budget Down- SEC. 501. MEDICARE/MEDICAID BENEFICIARY essary to carry out this subsection, includ- payment Act, I (Public Law 104–99) is amend- PROTECTION PROGRAM. (a) ESTABLISHMENT OF PROGRAM.—Not later ing regulations providing for the application ed— than July 1, 1996, the Secretary of Health of paragraphs (4) and (6) in the case of acqui- (1) in subsection (c)— and Human Services (referred to in this title sitions, mergers, spin-offs, and other reorga- (A) by striking ‘‘Except as provided in sub- as the ‘‘Secretary’’) (through the Adminis- nizations. section (e), the’’ and inserting ‘‘The’’; and trator of the Health Care Financing Admin- Subtitle C—Other Provisions (B) by striking ‘‘only with respect to mortgages insured under the National Housing istration and the Inspector General of the SEC. 421. EXTENSION OF MEDICARE SECONDARY Department of Health and Human Services) PAYOR PROVISIONS. Act that are originated before October 1, 1995’’ and inserting ‘‘to all mortgages insured shall establish the Medicare/Medicaid Bene- Section 1862(b) of the Social Security Act ficiary Protection Program. Under such pro- (42 U.S.C. 1395y(b)) is amended— under the National Housing Act’’; and (2) by striking subsection (e). gram the Secretary shall— (1) in paragraph (1)— (1) educate medicare and medicaid bene- (A) in subparagraph (B), by striking clause (b) TECHNICAL AMENDMENT.—Section 230(d) of the National Housing Act (12 U.S.C. ficiaries regarding— (iii) and redesignating clause (iv) as clause (A) medicare and medicaid program cov- (iii); and 1715u(d)) is amended by striking ‘‘the Depart- ments’’ and all that follows through ‘‘1996’’ erage; (B) in the matter following clause (ii) of (B) fraudulent and abusive practices; subparagraph (C), by striking ‘‘, and before and inserting ‘‘The Balanced Budget Down- payment Act, I’’. (C) medically unnecessary health care October 1, 1998’’; and items and services; and (2) in paragraph (5)(C), by striking clause (D) substandard health care items and (iii). SPECTER AMENDMENT NO. 3682 services; SEC. 422. ANNUAL ADJUSTMENT FACTORS FOR Mr. SPECTER proposed an amend- (2) identify and publicize fraudulent and OPERATING COSTS ONLY; RE- abusive practices with respect to the deliv- STRAINT ON RENT INCREASES. ment to the bill S. 1028, supra; as follows: ery of health care items and services; and (a) ANNUAL ADJUSTMENT FACTORS FOR OP- (3) establish a procedure for the reporting ERATING COSTS ONLY.—Section 8(c)(2)(A) of At the appropriate place in title III, insert of fraudulent and abusive health care provid- the United States Housing Act of 1937 (42 the following new section: ers, practitioners, claims, items, and serv- U.S.C. 1437f(c)(2)(A)) is amended— SEC. . REAUTHORIZATION OF HEALTHY START ices to appropriate law enforcement and (1) by striking ‘‘(2)(A)’’ and inserting PROGRAM. payer agencies. ‘‘(2)(A)(i)’’; (a) AUTHORIZATION OF APPROPRIATIONS.—To (b) DISSEMINATION OF INFORMATION.—The (2) by striking the second sentence and all enable the Secretary of Health and Human Secretary shall provide for the broad dis- that follows through the end of the subpara- Services to carry out the healthy start pro- semination of information regarding the graph; and gram established under the authority of sec- Medicare/Medicaid Beneficiary Protection (3) by adding at the end the following new tion 301 of the Public Health Service Act (42 Program. clause: U.S.C. 241), there are authorized to be appro- SEC. 502. IMPROVING INFORMATION TO MEDI- ‘‘(ii) Each assistance contract under this priated $100,000,000 for each of the fiscal CARE BENEFICIARIES. section shall provide that— years 1997 through 2001. (a) CLARIFICATION OF REQUIREMENT TO PRO- ‘‘(I) if the maximum monthly rent for a (b) EXISTING PROJECTS.— VIDE EXPLANATION OF MEDICARE BENEFITS.— unit in a new construction or substantial re- (1) IN GENERAL.—Of the amount appro- Section 1804 of the Social Security Act (42 habilitation project to be adjusted using an priated under subsection (a) for a fiscal year, U.S.C. 1395b-2) is amended by adding at the annual adjustment factor exceeds 100 percent the Secretary of Health and Human Services end the following new subsection: of the fair market rent for an existing dwell- shall reserve $30,000,000 for such fiscal year ‘‘(c)(1) The Secretary shall provide a state- ing unit in the market area, the Secretary among demonstration projects that received ment which explains the benefits provided shall adjust the rent using an operating funding under the healthy start program for under this title with respect to each item or costs factor that increases the rent to reflect fiscal year 1996. service for which payment may be made increases in operating costs in the market (2) ELIGIBILITY.—To be eligible to receive under this title which is furnished to an indi- area; and funds under paragraph (1), an existing dem- vidual, without regard to whether or not a ‘‘(II) if the owner of a unit in a project de- onstration projects shall demonstrate to the deductible or coinsurance may be imposed scribed in subclause (I) demonstrates that satisfaction of Secretary of Health and against the individual with respect to such the adjusted rent determined under sub- Human Services that such project has been item or service. clause (I) would not exceed the rent for an successful in serving needy areas and reduc- ‘‘(2) Each explanation of benefits provided unassisted unit of similar quality, type, and ing infant mortality. under paragraph (1) shall include— S3676 CONGRESSIONAL RECORD — SENATE April 18, 1996 ‘‘(A) a statement that, because billing er- SEC. 503. REWARDS FOR INFORMATION LEADING ment of this Act, the Secretary shall estab- rors do occur and because medicare fraud, TO HEALTH CARE FRAUD PROSECU- lish standards for the form and submission of waste, and abuse is a significant problem, TION AND CONVICTION. claims for payment under the medicare pro- beneficiaries should carefully check any (a) IN GENERAL.—In special circumstances, gram under title XVIII of the Social Secu- the Secretary and the Attorney General of statement of benefits received for accuracy rity Act (42 U.S.C. 1395 et seq.) and the med- the United States may jointly make a pay- and report any questionable charges; icaid program under title XIX of such Act (42 ment of up to $10,000 to a person who fur- ‘‘(B) a clear and understandable summary U.S.C. 1396 et seq.). nishes information unknown to the Govern- of— (b) ENSURING PROVIDER RESPONSIBILITY.— ment relating to a possible prosecution for In establishing standards under subsection ‘‘(i) how payments for items and services health care fraud. are determined under this title; and (a), the Secretary, in consultation with ap- (b) INELIGIBLE PERSONS.—A person is not propriate agencies including the Department ‘‘(ii) the beneficiary’s right to request a eligible for a payment under subsection (a) itemized bill (as provided in section of Justice, shall include such methods of en- if— suring provider responsibility and account- 1128A(n)); and (1) the person is a current or former officer ‘‘(C) a toll-free telephone number for re- ability for claims submitted as necessary to or employee of a Federal or State govern- control fraud and abuse. porting questionable charges or other acts ment agency or instrumentality who fur- (c) USE OF ELECTRONIC MEDIA.—The Sec- that would constitute medicare fraud, waste, nishes information discovered or gathered in retary shall develop specific standards which or abuse, which may be the same number as the course of government employment; govern the submission of claims through described in subsection (b).’’. (2) the person knowingly participated in electronic media in order to control fraud (b) REQUEST FOR ITEMIZED BILL FOR MEDI- the offense; and abuse in the submission of such claims. (3) the information furnished by the person CARE ITEMS AND SERVICES.— SEC. 506. UNIQUE PROVIDER IDENTIFICATION consists of allegations or transactions that (1) IN GENERAL.—Section 1128A of the So- CODE. have been disclosed to the public— cial Security Act (42 U.S.C. 1320a–7a) is (a) ESTABLISHMENT OF SYSTEM.—Not later (A) in a criminal, civil, or administrative amended by adding at the end the following than 1 year after the date of the enactment proceeding; new subsection: of this Act, the Secretary shall establish a (B) in a congressional, administrative, or system which provides for the issuance of a ‘‘(m) WRITTEN REQUEST FOR ITEMIZED General Accounting Office report, hearing, unique identifier code for each individual or BILL.— audit, or investigation; or entity furnishing items or services for which ‘‘(1) IN GENERAL.—A beneficiary may sub- (C) by the news media, unless the person is payment may be made under title XVIII or mit a written request for an itemized bill for the original source of the information; or XIX of the Social Security (42 U.S.C. 1395 et medical or other items or services provided (4) in the judgment of the Attorney Gen- seq.; 1396 et seq.), and the notation of such to such beneficiary by any person (including eral, it appears that a person whose illegal unique identifier codes on all claims for pay- an organization, agency, or other entity) activities are being prosecuted or inves- ment. that receives payment under title XVIII for tigated could benefit from the award. (b) APPLICATION FEE.—The Secretary shall providing such items or services to such ben- (c) DEFINITIONS.— require an individual applying for a unique eficiary. (1) HEALTH CARE FRAUD.—For purposes of identifier code under subsection (a) to sub- this section, the term ‘‘health care fraud’’ ‘‘(2) 30-DAY PERIOD TO RECEIVE BILL.— mit a fee in an amount determined by the means health care fraud within the meaning ‘‘(A) IN GENERAL.—Not later than 30 days Secretary to be sufficient to cover the cost after the date on which a request under para- of section 1347 of title 18, United States Code. of investigating the information on the ap- (2) ORIGINAL SOURCE.—For the purposes of graph (1) has been received, a person de- plication and the individual’s suitability for subsection (b)(3)(C), the term ‘‘original scribed in such paragraph shall furnish an receiving such a code. source’’ means a person who has direct and itemized bill describing each medical or SEC. 507. USE OF NEW PROCEDURES. independent knowledge of the information other item or service provided to the bene- No payment may be made under either that is furnished and has voluntarily pro- ficiary requesting the itemized bill. title XVIII or XIX of the Social Security Act vided the information to the Government ‘‘(B) PENALTY.—Whoever knowingly fails (42 U.S.C. 1395 et seq.; 42 U.S.C. 1396 et seq.) prior to disclosure by the news media. for any item or service furnished by an indi- to furnish an itemized bill in accordance (d) NO JUDICIAL REVIEW.—Neither the fail- with subparagraph (A) shall be subject to a vidual or entity unless the requirements of ure of the Secretary of Health and Human sections 505 and 506 are satisfied. civil fine of not more than $100 for each such Services and the Attorney General to au- failure. SEC. 508. PROHIBITING UNNECESSARY AND thorize a payment under subsection (a) nor WASTEFUL MEDICARE PAYMENTS ‘‘(3) REVIEW OF ITEMIZED BILL.— the amount authorized shall be subject to ju- FOR CERTAIN ITEMS. ‘‘(A) IN GENERAL.—Not later than 90 days dicial review. Notwithstanding any other provision of after the receipt of an itemized bill furnished SEC. 504. UNIFORM MEDICARE/MEDICAID APPLI- law, including any regulation or payment under paragraph (1), a beneficiary may sub- CATION PROCESS. policy, the following categories of charges mit a written request for a review of the Not later than 1 year after the date of the shall not be reimbursable under title XVIII itemized bill to the appropriate fiscal enactment of this Act, the Secretary shall of the Social Security Act: intermediary or carrier with a contract establish procedures and a uniform applica- (1) Tickets to sporting or other entertain- under section 1816 or 1842. tion form for use by any individual or entity ment events. ‘‘(B) SPECIFIC ALLEGATIONS.—A request for that seeks to participate in the programs (2) Gifts or donations. a review of the itemized bill shall identify— under titles XVIII and XIX of the Social Se- (3) Costs related to team sports. ‘‘(i) specific medical or other items or serv- curity Act (42 U.S.C. 1395 et seq.; 42 U.S.C. (4) Personal use of motor vehicles. ices that the beneficiary believes were not 1396 et seq.). The procedures established shall (5) Costs for fines and penalties resulting provided as claimed, or include the following: from violations of Federal, State, or local ‘‘(ii) any other billing irregularity (includ- (1) Execution of a standard authorization laws. ing duplicate billing). form by all individuals and entities prior to (6) Tuition or other education fees for ‘‘(4) FINDINGS OF FISCAL INTERMEDIARY OR submission of claims for payment which spouses or dependents of providers of serv- CARRIER.—Each fiscal intermediary or car- shall include the social security number of ices, their employees, or contractors. rier with a contract under section 1816 or the beneficiary and the TIN (as defined in SEC. 509. REDUCING EXCESSIVE BILLINGS AND 1842 shall, with respect to each written re- section 7701(a)(41) of the Internal Revenue UTILIZATION FOR CERTAIN ITEMS. quest submitted to the fiscal intermediary or Code of 1986) of any health care provider, Section 1834(a)(15) of the Social Security carrier under paragraph (3), determine supplier, or practitioner providing items or Act (42 U.S.C. 1395m(a)(15)) is amended by whether the itemized bill identifies specific services under the claim. striking ‘‘Secretary may’’ both places it ap- medical or other items or services that were (2) Assumption of responsibility and liabil- pears and inserting ‘‘Secretary shall’’. not provided as claimed or any other billing ity for all claims submitted. SEC. 510. IMPROVED CARRIER AUTHORITY TO irregularity (including duplicate billing) (3) A right of access by the Secretary to REDUCE EXCESSIVE MEDICARE PAY- that has resulted in unnecessary payments provider records relating to items and serv- MENTS. under title XVIII. ices rendered to beneficiaries of such pro- (a) GENERAL RULE.—Section 1834(a)(10)(B) ‘‘(5) RECOVERY OF AMOUNTS.—The Secretary grams. of the Social Security Act (42 U.S.C. shall require fiscal intermediaries and car- (4) Retention of source documentation. 1395m(a)(10)(B)) is amended by striking riers to take all appropriate measures to re- (5) Provision of complete and accurate doc- ‘‘paragraphs (8) and (9)’’ and all that follows cover amounts unnecessarily paid under title umentation to support all claims for pay- through the end of the sentence and insert- XVIII with respect to a bill described in ment. ing ‘‘section 1842(b)(8) to covered items and paragraph (4).’’. (6) A statement of the legal consequences suppliers of such items and payments under for the submission of false or fraudulent this subsection as such provisions (relating (c) EFFECTIVE DATE.—The amendments claims for payment. to determinations of grossly excessive pay- made by this section shall apply with respect SEC. 505. STANDARDS FOR UNIFORM CLAIMS. ment amounts) apply to items and services to medical or other items or services pro- (a) ESTABLISHMENT OF STANDARDS.—Not and entities and a reasonable charge under vided on or after July 1, 1996. later than 1 year after the date of the enact- section 1842(b)’’. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3677

(b) REPEAL OF OBSOLETE PROVISIONS.— meets the requirements of section order a review of existing regulations, guide- (1) Section 1842(b)(8) of the Social Security 1814(a)(2)(C) or 1835(a)(2)(A) in the case of lines, and other guidance governing medi- Act (42 U.S.C. 1395u(b)(8)) is amended— home health services furnished to the indi- care payment policies and billing code abuse (A) by striking subparagraphs (B) and (C), vidual.’’. to determine if revision of or addition to (B) by striking ‘‘(8)(A)’’ and inserting (b) EFFECTIVE DATE.—The amendment those regulations, guidelines, or guidance is ‘‘(8)’’, and made by subsection (a) shall apply to certifi- necessary to maximize the benefits to the (C) by redesignating clauses (i) and (ii) as cations made on or after the date of the en- Federal Government of the use of ADPE ac- subparagraphs (A) and (B), respectively. actment of this Act. quired pursuant to section 515. (2) Section 1842(b)(9) of such Act (42 U.S.C. SEC. 514. ITEMIZATION OF SURGICAL DRESSING SEC. 519. DEFINITIONS. 1395u(b)(9)) is repealed. BILLS SUBMITTED BY HOME For purposes of this title— (c) PAYMENT FOR SURGICAL DRESSINGS.— HEALTH AGENCIES. (1) The term ‘‘automatic data processing Section 1834(i) of the Social Security Act (42 Section 1834(i)(2) (42 U.S.C. 1395m(i)(2) is equipment’’ (ADPE) has the same meaning U.S.C. 1395m(i)) is amended by adding at the amended to read as follows: as in section 111(a)(2) of the Federal Property end the following new paragraph: ‘‘(2) EXCEPTION.—Paragraph (1) shall not and Administrative Services Act of 1949 (40 ‘‘(3) GROSSLY EXCESSIVE PAYMENT apply to surgical dressings that are fur- U.S.C. 759(a)(2)). AMOUNTS.—Notwithstanding paragraph (1), nished as an incident to a physician’s profes- (2) The term ‘‘billing code abuse’’ means the Secretary may apply the provisions of sional service.’’. the submission to medicare carriers of section 1842(b)(8) to payments under this sub- SEC. 515. IMPLEMENTATION OF GENERAL AC- claims for services that include procedure section.’’. COUNTING OFFICE RECOMMENDA- codes that do not appropriately describe the SEC. 511. REQUIRED BILLING, PAYMENT, AND TIONS REGARDING MEDICARE total services provided or otherwise violate COST LIMIT CALCULATION TO BE CLAIMS PROCESSING. medicare payment policies. BASED ON SITE WHERE SERVICE IS (a) IN GENERAL.—Not later than 90 days (3) The term ‘‘commercial item’’ has the FURNISHED. after the date of the enactment of this Act, same meaning as in section 4(12) of the Office (a) CONDITIONS OF PARTICIPATION.—Section the Secretary shall, by regulation, contract, of Federal Procurement Policy Act (41 U.S.C. 1891 of the Social Security Act (42 U.S.C. change order, or otherwise, require medicare 403(12)). 1395bbb) is amended by adding at the end the carriers to acquire commercial automatic (4) The term ‘‘medicare part B’’ means the following new subsection: data processing equipment (in this title re- supplementary medical insurance program ‘‘(g) A home health agency shall submit ferred to as ‘‘ADPE’’) meeting the require- authorized under part B of title XVIII of the claims for payment of home health services ments of section 516 to process medicare part Social Security Act (42 U.S.C. 1395j–1395w–4). under this title only on the basis of the geo- B claims for the purpose of identifying bill- (5) The term ‘‘medicare carrier’’ means an graphic location at which the service is fur- ing code abuse. entity that has a contract with the Health nished, as determined by the secretary.’’. (b) SUPPLEMENTATION.—Any ADPE ac- Care Financing Administration to determine (b) WAGE ADJUSTMENT.—Section quired in accordance with subsection (a) and make medicare payments for medicare 1861(v)(1)(L)(iii) of the Social Security Act shall be used as a supplement to any other part B benefits payable on a charge basis and (42 U.S.C. 1395x(v)(1)(L)(iii)) is amended by ADPE used in claims processing by medicare to perform other related functions. striking ‘‘agency is located’’ and inserting carriers. (6) The term ‘‘payment policies’’ means ‘‘service is furnished’’. (c) STANDARDIZATION.—In order to ensure regulations and other rules that govern bill- SEC. 512. STANDARDS FOR PHYSICAL THERAPY uniformity, the Secretary may require that ing code abuses such as unbundling, global SERVICES FURNISHED BY PHYSI- medicare carriers that use a common claims service violations, double billing, and unnec- CIANS. processing system acquire common ADPE in essary use of assistants at surgery. (a) APPLICATION OF STANDARDS FOR OTHER implementing subsection (a). (7) The term ‘‘Secretary’’ means the Sec- PROVIDERS OF PHYSICAL THERAPY SERVICES (d) IMPLEMENTATION DATE.—Any ADPE ac- retary of Health and Human Services. TO SERVICES FURNISHED BY PHYSICIANS.—Sec- quired in accordance with subsection (a) tion 1862(a) of the Social Security Act (42 SEC. 520. NONDISCHARGEABILITY OF CERTAIN shall be in use by medicare carriers not later MEDICARE DEBTS. U.S.C. 1395y(a)) is amended— than 180 days after the date of the enactment (a) PAYMENT TO PROVIDERS.—Section (1) by striking ‘‘or’’ at the end of paragraph of this Act. 1815(d) of the Social Security Act (42 U.S.C. 14; SEC. 516. MINIMUM SOFTWARE REQUIREMENTS. 1395g(d)) is amended by adding at the end (2) by striking the period at the end of (a) IN GENERAL.—The requirements de- thereof the following new sentence: ‘‘Not- paragraph (15) and inserting ‘‘; or’’; and scribed in this section are as follows: withstanding any other provision of law, (3) by adding at the end the following new (1) The ADPE shall be a commercial item. amounts due to the program under this subparagraph: (2) The ADPE shall surpass the capability section are not dischargeable under any pro- ‘‘(16) in the case of physicians’ services of ADPE used in the processing of medicare vision of title 11, United States Code.’’. under 1848(j)(3) consisting of outpatient part B claims for identification of code ma- (b) PAYMENT OF BENEFITS.—Section 1833(j) physical therapy services or outpatient occu- nipulation on the day before the date of the of the Social Security Act (42 U.S.C. 1395l(j)) pational therapy services, which are fur- enactment of this Act. is amended by adding at the end thereof the nished by a physician who does not meet the (3) The ADPE shall be capable of being following new sentence: ‘‘Notwithstanding requirements applicable under section 1861(p) modified to— any other provision of law, amounts due to to a clinic or rehabilitation agency furnish- (A) satisfy pertinent statutory require- the program under this subsection are not ing such services.’’. ments of the medicare program; and dischargeable under any provision of title 11, (b) CONFORMING AMENDMENT.—Section (B) conform to general policies of the United States Code.’’. 1848(j)(3) of the Social Security Act (42 U.S.C. SEC. 521. APPLICABILITY OF THE BANKRUPTCY 1395w-4(j)(3)) is amended by inserting ‘‘(sub- Health Care Financing Administration regarding claims processing. CODE TO PROGRAM SANCTIONS. ject to section 1862(a)(16))’’ after ‘‘(2)(D)’’. (a) EXCLUSION OF INDIVIDUALS AND ENTITIES (b) MINIMUM STANDARDS.—Nothing in this (c) EFFECTIVE DATE.—The amendments title shall be construed as preventing the use FROM PARTICIPATION IN FEDERAL HEALTH made by this section shall apply to services CARE PROGRAMS.—Section 1128 of the Social furnished on or after July 1, 1996. of ADPE which exceeds the minimum requirements described in subsection (a). Security Act (42 U.S.C. 1320a–7) is amended SEC. 513. PENALTY FOR FALSE CERTIFICATION by adding at the end the following new sub- FOR HOME HEALTH SERVICES. SEC. 517. DISCLOSURE. section: (a) IN GENERAL.—Section 1128A(b) of the (a) IN GENERAL.—Notwithstanding any ‘‘(j) APPLICABILITY OF BANKRUPTCY PROVI- Social Security Act (42 U.S.C. 1320a–7a(b)) is other provision of law, and except as pro- SIONS.—An exclusion imposed under this sec- amended by adding at the end the following vided in subsection (b), any ADPE or data re- tion is not subject to the automatic stay im- new paragraph: lated thereto acquired by medicare carriers posed under section 362 of title 11, United ‘‘(3)(A) Any physician who executes a docu- in accordance with section 515(a) shall not be States Code.’’. ment described in subparagraph (B) with re- subject to public disclosure. (b) CIVIL MONETARY PENALTIES.—Section spect to an individual knowing that all of (b) EXCEPTION.—The Secretary may au- 1128A(a) of the Social Security Act (42 U.S.C. the requirements referred to in such sub- thorize the public disclosure of any ADPE or 1320a–7a(a)) is amended by adding at the end paragraph are not met with respect to the data related thereto acquired by medicare the following sentence: ‘‘An exclusion im- individual shall be subject to a civil mone- carriers in accordance with section 515(a) if posed under this subsection is not subject to tary penalty of not more than the greater the Secretary determines that— the automatic stay imposed under section of— (1) release of such information is in the 362 of title 11, United States Code, and any ‘‘(i) $5,000, or public interest; and penalties and assessments imposed under ‘‘(ii) three times the amount of the pay- (2) the information to be released is not this section shall be nondischargeable under ments under title XVIII for home health protected from disclosure under section the provisions of such title.’’. services which are made pursuant to such 552(b) of title 5, United States Code. (c) OFFSET OF PAYMENTS TO INDIVIDUALS.— certification. SEC. 518. REVIEW AND MODIFICATION OF REGU- Section 1892(a)(4) of the Social Security Act ‘‘(B) A document described in this subpara- LATIONS. (42 U.S.C. 1395ccc(a)(4)) is amended by adding graph is any document that certifies, for Not later than 30 days after the date of the at the end the following sentence: ‘‘An exclu- purposes of title XVIII, that an individual enactment of this Act, the Secretary shall sion imposed under paragraph (2)(C)(ii) or S3678 CONGRESSIONAL RECORD — SENATE April 18, 1996 paragraph (3)(B) is not subject to the auto- ‘‘(D) in the case of a request by an inter- who, at the time the person provides a matic stay imposed under section 362 of title ested State agency, the grant of such a waiv- health care service, is licensed or certified 11, United States Code.’’ er would not cause the number of waivers al- by the appropriate authorities for practice in lotted for that State for that fiscal year to a State to furnish health care services. CONARD AMENDMENT NO. 3684 exceed 20. (2) HEALTH CARE SERVICE.—The term ‘‘(2)(A) Notwithstanding section 248(2) the ‘‘health care service’’ means any medical as- Mr. CONARD proposed an amend- Attorney General may change the status of sistance to the extent it is included in the ment to the bill S. 1028, supra; as fol- an alien that qualifies under this subsection plan submitted under title XIX of the Social lows: and section 212(e) to that of an alien de- Security Act for the State in which the serv- At the appropriate place in the bill, insert scribed in section 101(a)(15)(H)(i)(b). ice was provided. the following: ‘‘(B) No person who has obtained a change (3) MEDICALLY UNDERSERVED PERSON.—The of status under subparagraph (A) and who term ‘‘medically underserved person’’ means SEC. . WAIVER OF FOREIGN COUNTRY RESI- has failed to fulfill the terms of the contract a person who resides in— DENCE REQUIREMENT WITH RE- SPECT TO INTERNATIONAL MEDICAL with the health facility or organization (A) a medically underserved area as de- GRADUATES. named in the waiver application shall be eli- fined for purposes of determining a medi- (a) EXTENSION OF WAIVER PROGRAM.—Sec- gible to apply for an immigrant visa, for per- cally underserved population under section tion 220(c) of the Immigration and National- manent residence, or for any other change of 330 of the Public Health Service Act (42 ity Technical Corrections Act of 1994 (8 nonimmigrant status until it is established U.S.C. 254c); or U.S.C. 1182 note) is amended by striking that such person has resided and been phys- (B) a health professional shortage area as ‘‘June 1, 1996’’ and inserting ‘‘June 1, 2002’’. ically present in the country of his national- defined in section 332 of such Act (42 U.S.C. (b) CONDITIONS ON FEDERALLY REQUESTED ity or his last residence for an aggregate of 254e); WAIVERS.—Section 212(e) of the Immigration at least two years following departure from and who receives care in a health care facil- and Nationality Act (8 U.S.C. 1184(e)) is the United States. ity substantially comparable to any of those amended by inserting after ‘‘except that in ‘‘(3) Notwithstanding any other provisions designated in the Federally Supported the case of a waiver requested by a State De- of this subsection, the two-year foreign resi- Health Centers Assistance Act (42 U.S.C. 233 partment of Public Health or its equivalent’’ dence requirement under section 212(e) shall et seq.), as shall be determined in regula- the following: ‘‘or in the case of a waiver re- apply with respect to an alien in clause (iii) tions promulgated by the Secretary. quested by an interested United States Gov- of that section who has not otherwise been (4) SECRETARY.—The term ‘‘Secretary’’ ernment agency on behalf of an alien de- accorded status under section 101(a)(27)(H)— means the Secretary of the Department of scribed in clause (iii)’’. ‘‘(A) in the case of a request by an inter- Health and Human Services. (c) RESTRICTIONS ON FEDERALLY REQUESTED ested State agency, if at any time the alien practices medicine in an area other than an WAIVERS.—Section 214(k) (8 U.S.C. 1184(k)) is BOXER AMENDMENT NO. 3686 amended to read as follows: area described in paragraph (1)(C); and ‘‘(k)(1) In the case of a request by an inter- ‘‘(B) in the case of a request by an inter- Mrs. BOXER proposed an amendment ested State agency or by an interested Unit- ested United States Government agency, if to the bill S. 1028, supra; as follows: ed States Government agency for a waiver of at any time the alien engages in employment At the appropriate place add: the two-year foreign residence requirement for a health facility or organization not The Senate finds that— under section 212(e) with respect to an alien named in the waiver application.’’. Patients deserve to know the full range of described in clause (iii) of that section, the treatments available to them and, Attorney General shall not grant such waiv- COATS AMENDMENT NO. 3685 Patients should know if doctors receive bonuses for withholding treatment from them. er unless— Mr. COATS proposed an amendment ‘‘(A) in the case of an alien who is other- It is the sense of the Senate that Congress wise contractually obligated to return to a to the bill S. 1028, supra; as follows: should thoughtfully examine these issues to foreign country, the government of such At the appropriate place in title III, insert ensure that all patients get the care they de- country furnishes the Director of the United the following new section: serve. States Information Agency with a statement SEC. . MEDICAL VOLUNTEERS. in writing that it has no objection to such (a) SHORT TITLE.—This title may be cited SIMON AMENDMENT No. 3687 waiver; and as the ‘‘Medical Volunteer Act’’. ‘‘(B)(i) in the case of a request by an inter- (b) TORT CLAIM IMMUNITY.— Mr. SIMON proposed an amendment ested State agency— (1) GENERAL RULE.—A health care profes- to the bill S. 1028, supra; as follows: ‘‘(I) the alien demonstrates a bona fide sional who provides a health care service to At the appropriate place in the bill insert offer of full-time employment, agrees to a medically underserved person without re- the following new section: begin employment with the health facility ceiving compensation for such health care SEC. . SENSE OF THE SENATE REGARDING ADE- or organization named in the waiver applica- service, shall be regarded, for purposes of QUATE HEALTH CARE COVERAGE tion within 90 days of receiving such waiver, any medical malpractice claim that may FOR ALL CHILDREN AND PREGNANT and agrees to work for a total of not less arise in connection with the provision of WOMEN. than three years (unless the Attorney Gen- such service, as an employee of the Federal (a) FINDINGS.—The Senate finds the follow- eral determines that extenuating cir- Government for purposes of the Federal tort ing: cumstances exist, such as closure of the fa- claims provisions in title 28, United States (1) The health care coverage of mothers cility or hardship to the alien would justify Code. and children in the United States is unac- a lesser period of time); and (2) COMPENSATION.—For purposes of para- ceptable, with more than 9,300,000 children ‘‘(II) the alien’s employment continues to graph (1), a health care professional shall be and 500,000 expectant mothers having no benefit the public interest; or deemed to have provided a health care serv- health insurance. ‘‘(ii) in the case of a request by an inter- ice without compensation only if, prior to (2) Among industrial nations, the United ested United States Government agency— furnishing a health care service, the health States ranks 1st in wealth but 18th in infant ‘‘(I) the alien demonstrates a bona fide care professional— mortality, and 14th among such nations in offer of full-time employment that has been (A) agrees to furnish the health care serv- maternal mortality. found to be in the public interest, agrees to ice without charge to any person, including (3) 22 percent of pregnant women do not begin employment with the health facility any health insurance plan or program under have prenatal care in the first trimester, and or organization named in the waiver applica- which the recipient is covered; and 22 percent of all poor children are uninsured, tion within 90 days of receiving such waiver, (B) provides the recipient of the health despite the medicaid program under title and agrees to work for a total of not less care service with adequate notice (as deter- XIX of the Social Security Act. than three years (unless the Attorney Gen- mined by the Secretary) of the limited liabil- (4) Of the 1,100,000 net increase in unin- eral determines that extenuating cir- ity of the health care professional with re- sured persons from 1992 to 1993, 84 percent or cumstances exist, such as closure of the fa- spect to the service. 922,500 were children. cility or hardship to the alien would justify (c) PREEMPTION.—The provisions of this (5) Since 1987, the number of children cov- a lesser period of time); and section shall preempt any State law to the ered by employment based health insurance ‘‘(II) the alien’s employment continues to extent that such law is inconsistent with has decreased, and many children lack benefit the public interest; such provisions. The provisions of this sec- health insurance despite the relative afford- ‘‘(C) in the case of a request by an inter- tion shall not preempt any State law that ability of providing insurance for children. ested State agency, the alien agrees to prac- provides greater incentives or protections to (6) Health care coverage for children is rel- tice medicine in accordance with paragraph a health care professional rendering a health atively inexpensive and in 1993 the medicaid (2) for a total of not less than three years care service. program spent an average of $1,012 per child only in the geographic area or areas which (d) DEFINITIONS.—For purposes of this sec- compared to $8,220 per elderly adult. are designated by the Secretary of Health tion: (7) Uninsured children are generally chil- and Human Services as having a shortage of (1) HEALTH CARE PROFESSIONAL.—The term dren of lower income workers, who are less health care professionals; and ‘‘health care professional’’ means a person likely than higher income workers to have April 18, 1996 CONGRESSIONAL RECORD — SENATE S3679 health insurance for their families because ment suitable for inclusion with individual the Senate and the public that the they are less likely to work for a firm that income tax refund payments which— hearing previously scheduled before offers insurance, and if such insurance is of- (1) encourages organ and tissue donation; (2) includes a detachable organ and tissue the Subcommittee on Forests and Pub- fered, it is often too costly for lower income lic Land Management on S. 1401, Sur- workers to purchase. donor card; and (8) In 1993, 61 percent of uninsured children (3) urges recipients to— face Mining Control and Reclamation were in families with at least one parent (A) sign the organ and tissue donor card; Amendments Act of 1995 on Tuesday, (B) discuss organ and tissue donation with working full time for the entire year the April 23, 1996, at 9:30 a.m. has been re- family members and tell family members child was uninsured, and about 57 percent of scheduled for Thursday, May 2, 1996, at about the recipient’s desire to be an organ uninsured children had a family income at or and tissue donor if the occasion arises; and 9:30 a.m. in room SD–366 of the Dirksen below 150 percent of the Federal poverty (C) encourage family members to request Senate Office Building in Washington, level. or authorize organ and tissue donation if the DC. (9) If Congress eliminates the Federal guar- occasion arises. antee of Medicaid, an estimated 4,900,000 In addition to S. 1401, we will receive children may lose their guarantee of health testimony on S. 1194, to amend the care coverage, and those same children may WELLSTONE AMENDMENT NO. 3689 Mining and Mineral Policy Act of 1970 be added to the currently projected 12,600,000 Mr. KENNEDY (for Mr. WELLSTONE) to promote the research, identifica- children who will be uninsured by the year proposed an amendment to the bill S. tion, assessment, and exploration of 2002. 1028, supra; as follows: marine mineral resources. (10) Studies have shown that uninsured On page 9, line 13 insert after evidence of Those wishing to testify or who wish children are less likely than insured children insurability ‘‘(including conditions arising to submit written statements should to receive needed health and preventive care, out of acts of domestic violence);’’. which can affect their health status ad- write to the Committee on Energy and versely throughout their lives, with such Natural Resources, U.S. Senate, Wash- children less likely to have routine doctor HELMS (AND KASSEBAUM) ington, DC 20510. For further informa- visits, receive care for injuries, and have a AMENDMENT NO. 3690 tion, please call Michael Flannigan of regular source of medical care. Mrs. KASSEBAUM (for Mr. HELMS, the subcommittee staff at 202–224–6170. (11) The families of uninsured children are for himself and Mrs. KASSEBAUM) pro- f more likely to take the children to an emergency room than to a private physician or posed an amendment to the bill S. 1028, supra; as follows: AUTHORITY FOR COMMITTEES TO health maintenance organization. MEET (12) Children without health insurance are Amend Title III—Miscellaneous Provi- less likely to be appropriately immunized or sions, Section 302(a) by striking ‘‘two part COMMITTEE ON ARMED SERVICES receive other preventive care for childhood study’’ on line 19, and inserting ‘‘three-part Mrs. KASSEBAUM. Mr. President, I illnesses. study’’ and adding Section 302(d): ask unanimous consent that the Com- (13) Ensuring the health of children clearly ‘‘(d) EVALUATION OF ACCESS AND CHOICE.— Not later than June 1, 1998, the Secretary of mittee on Armed Services be author- increases their chances to become productive ized to meet at 5 p.m. on Thursday, members of society and averts more serious Health and Human Services shall prepare or more expensive health conditions later in and submit to the appropriate Committees of April 18, 1996, to receive testimony in life, and ensuring that all pregnant women Congress a report concerning— executive session to mark up S. 1635, receive competent prenatal care also saves (1) an evaluation of the extent to which pa- the Defend America Act of 1996—Na- social costs. tients have direct access to, and choice of, tional Missile Defense—and to discuss (14) Although the United States has made health care provider, including specialty pro- markup. great improvements in health care coverage viders, within a network of providers, as well The PRESIDING OFFICER. Without as the opportunity to utilize providers out- through the Medicaid program, it is still the objection, it is so ordered. only developed nation that does not ensure side of the network, under the various types that all of its children and pregnant women of coverage offered under the provisions of COMMITTEE ON BANKING, HOUSING, AND URBAN have health care coverage. this Act; AFFAIRS (15) The United States should not accept a (2) an evaluation of the cost to the insurer Mrs. KASSEBAUM. Mr. President, I status quo in which children in many neigh- of providing out-of-network access to provid- ask unanimous consent that the Com- borhoods are more likely to have access to ers, and the feasibility of providing out-of- mittee on Banking, Housing, and drugs and guns than to doctors, or accept a network access in all health plans offered under provisions of this Act. Urban Affairs be authorized to meet status quo in which health care is ensured during the session of the Senate on for all prisoners but not for all children. (3) an evaluation of the percent of premium Thursday, April 18, 1996, to markup a (b) SENSE OF THE SENATE.—It is the sense dollar utilized for medical care and adminis- of the Senate that the issue of adequate tration of the various types of coverage of- resolution to authorize the committee health care for our mothers and children is fered, including coverage which permits out- to conduct an investigation of Madison important to the future of the United States, of-network access and choice of provider, Guaranty Savings and Loan Associa- and in consideration of the importance of under provisions of this Act. tion and related matters, amend the such issue, the Senate should pass health committee’s rules to facilitate the in- care legislation in the 105th Congress that BURNS (AND HARKIN) vestigation and related public hear- will ensure health care coverage for all of AMENDMENT NO. 3691 ings, and to authorize the issuance of the United States’s pregnant women and Mr. BURNS (for himself and Mr. HAR- children. subpoenas. KIN) proposed an amendment to the bill The PRESIDING OFFICER. Without S. 1028, supra; as follows: DORGAN (AND FRIST) AMENDMENT objection, it is so ordered. On Page 71, line 19, add the following: NO. 3688 COMMITTEE ON COMMERCE, SCIENCE, AND ‘‘SEC. 302.5. REIMBURSEMENT OF TELEMEDICINE. TRANSPORTATION Mr. KENNEDY (for Mr. DORGAN, for The Health Care Financing Administration Mrs. KASSEBAUM. Mr. President, I himself and Mr. FRIST) proposed an is directed to complete their ongoing study of reimbursement of all telemedicine serv- ask unanimous consent that the Com- amendment to the bill S. 1028, supra; as mittee on Commerce, Science, and follows: ices and submit a report to Congress with a proposal for reimbursement of fee-for-service Transportation be allowed to meet dur- At the end of title III, add the following: medicine by March 1, 1997. The report shall ing the Thursday, April 18, 1996, session SEC. 3. ORGAN AND TISSUE DONATION INFORMA- utilize data compiled from the current dem- of the Senate for the purpose of con- TION INCLUDED WITH INCOME TAX onstration projects already under review and REFUND PAYMENTS. ducting a hearing on spectrum use and gather data from other ongoing telemedicine (a) IN GENERAL.—The Secretary of the management. networks. This report shall include an analy- Treasury shall include with any payment of The PRESIDENT OFFICER. Without sis of the cost of services provided via tele- a refund of individual income tax made dur- medicine. objection, it is so ordered. ing the period beginning on February 1, 1997, f COMMITTEE ON ENERGY AND NATURAL and ending on June 30, 1997, a copy of the RESOURCES document described in subsection (b). NOTICE OF HEARING Mrs. KASSEBAUM. Mr. President, I (b) TEXT OF DOCUMENT.—The Secretary of the Treasury shall, after consultation with SUBCOMMITTEE ON FORESTS AND PUBLIC LAND ask unanimous consent that the Com- the Secretary of Health and Human Services MANAGEMENT mittee on Energy and Natural Re- and organizations promoting organ and tis- Mr. CRAIG. Mr. President, I would sources be granted permission to meet sue (including eye) donation, prepare a docu- like to announce for the information of during the session of the Senate on S3680 CONGRESSIONAL RECORD — SENATE April 18, 1996 Thursday, April 18, 1996, for purposes of tional Records and Information Man- STEVE JESSMORE conducting a full committee hearing agement Day which occurred on April ∑ Mr. LEVIN. Mr. President, I rise to which is scheduled to begin at 9:30 a.m. 2, 1996 while the Senate was in recess. honor Steve Jessmore of Saginaw, MI, The purpose of this oversight hearing The management and control of infor- who has been awarded the Robert F. is to receive testimony on the Tongass mation are increasingly critical to Kennedy Journalism Award for out- land management plan. every industry, business and govern- standing coverage of the problems of The PRESIDING OFFICER. Without ment agency, and the systematic cre- the disadvantaged. Mr. Jessmore won objection, it is so ordered. ation, distribution, storage and re- the award in the photojournalism cat- COMMITTEE ON FOREIGN RELATIONS trieval of records are of critical impor- egory for his photo essay, ‘‘Blind Mrs. KASSEBAUM. Mr. President, I tance to the continued and efficient op- Faith.’’ ask unanimous consent that the Com- eration of any good organization. ‘‘Blind Faith’’ follows the life of Carl, mittee on Foreign Relations be author- The organizations that excel today a yellow labrador retriever puppy ized to meet during the session of the and tomorrow will be those recognizing raised by a Carrolton Township ele- Senate on Thursday, April 18, at 2 p.m. information as a major resource and mentary school class. Carl was trained to hold a business meeting to vote on structuring it as efficiently as they do as a leader dog for the blind and even- pending items. their assets. An effective records man- tually placed with a visually impaired The PRESIDING OFFICER. Without agement program assures the availabil- man in Kansas City, MO. objection, it is so ordered. ity of information as a basis for sound Judges for the Kennedy award in- COMMITTEE ON INDIAN AFFAIRS decisionmaking by providing security cluded journalists from the Washington Mrs. KASSEBAUM. Mr. President, I and control against loss by mismanage- Post, Knight Ridder, CNN, the Wall ask unanimous consent that the Com- ment, natural disaster, theft or inad- Street Journal, and NBC. ‘‘Blind mittee on Indian Affairs be authorized vertent destruction. All Americans Faith’’ has also won the national Lin- to conduct three consecutive hearings should recognize the significant and coln University of Missouri 43d Annual during the session of the Senate on important role that records manage- Unity Awards in Media, as well as sev- Wednesday, April 17, Thursday, April ment professionals render in maintain- eral other awards in State, regional, 18, and Friday, April 19, 1996, on the ing appropriate business, civic, and and national contests. President’s budget request for fiscal government records. I commend busi- ‘‘Blind Faith’’ marks the first time year 1997 for Indian programs and re- nesses such as ARMA International that someone has followed the story of lated budgetary issues from fiscal year who have brought National Records a leader dog since 1939, when the Roch- 1996. The hearings will be held at 1:30 and Information Management Day to ester-based nonprofit organization that p.m. each day in room 485 of the Rus- my attention and wish them every suc- trained Carl was founded. The photos sell Senate Office Building. cess as they educate the business com- from ‘‘Blind Faith’’ will now be perma- The PRESIDING OFFICER. Without munity regarding the importance of nently on display in the Robert F. Ken- objection, it is so ordered. records management.∑ nedy collection of the John F. Kennedy COMMITTEE ON THE JUDICIARY f Library in Boston. On hearing that he had won the Mrs. KASSEBAUM. Mr. President, I EARTH DAY/ARBOR DAY TRIBUTE award, Jessmore said, ‘‘I’m real happy ask unanimous consent that the Com- TO THE CITY OF DETROIT mittee on the Judiciary be authorized that so many other people get to see it to meet during the session of the Sen- ∑ Mr. LEVIN. Mr. President, I rise now, because it’s such a tremendous, ate on Thursday, April 18, 1996, at 10 today to pay tribute to the city of De- positive story—kids learning early how a.m. to hold an executive business troit for its efforts to beautify its to help other people.’’ meeting. neighborhoods and improve its natural I know my Senate colleagues join me The PRESIDING OFFICER. Without environment. The city of Detroit on in honoring Steve Jessmore for his out- objection, it is so ordered. Earth Day/Arbor Day, Monday, April standing work in the field of photo- 22, 1996, is holding a ceremony kicking COMMITTEE ON SMALL BUSINESS journalism. ∑ off a week long program to plant trees Mrs. KASSEBAUM. Mr. President, I f in parks around the city. ask unanimous consent that the Com- For its tree planting efforts, Detroit, WHITEWATER INVESTIGATION mittee on Small Business be authorized for the ninth time, has been named a Mr. GLENN. The Whitewater inves- to meet during the session of the Sen- ∑ Tree City USA by the National Arbor tigation is the longest running con- ate for a hearing on Thursday, April 18, Day Foundation. Detroit recognizes gressional inquiry in the recent past. 1996, at 9:30 a.m., in room 428A of the the importance that trees play in not At 20 months, it exceeds Abscam—9 Russell Senate Office Building, to con- only making our communities more at- months—the POW/MIA hearings 17— duct a hearing focusing on ‘‘Small tractive, but by providing tremendous months and Watergate 16—months. It Business and Employee Involvement: environmental benefits as well. Trees has cost the American taxpayers over The TEAM Act Proposal.’’ produce oxygen, help clean the air, pro- The PRESIDING OFFICER. Without $30 million which could have vac- vide a habitat for wildlife and provide objection, it is so ordered. cinated 107,000 children, paid the Medi- humankind with great visual beauty. care costs of 9,200 seniors, and provided SUBCOMMITTEE ON INTERNATIONAL ECONOMIC The city of Detroit recognizes the health care for nearly 7,000 families. POLICY, EXPORT AND TRADE PROMOTION importance of tree planting and is com- Mr. President, I was disappointed to Mrs. KASSEBAUM. Mr. President, I mitted to the continuation of its exem- learn that an agreement had been ask unanimous consent that the Sub- plary reforestation programs. I am reached to continue the Whitewater in- committee on International Economic proud of the efforts of my home city vestigation. Because I thought it was a Policy, Export and Trade Promotion of and I ask that my colleagues join me in poor use of the taxpayer’s money, I the Committee on Foreign Relations be congratulating the city of Detroit. ∑ voted against the original resolution authorized to meet during the session THE ANTITERRORISM BILL and had the current resolution been of the Senate on Thursday, April 18, ∑ Mr. MACK. Mr. President, I wish to brought to a rollcall vote, I would have 1996, at 10 a.m. apologize for my absence during con- The PRESIDING OFFICER. Without voted to discontinue proceedings deal- sideration of the conference report to objection, it is so ordered. ing with Whitewater. S. 735 due to the passing of my father. The Whitewater investigation dupli- f I believe that this is an essential piece cates the ongoing independent coun- ADDITIONAL STATEMENTS of legislation to address the current de- sel’s investigation and wastes the lim- ficiencies in our judicial system which ited time we have left in this session to made it that much easier for the trag- pass important legislation. The inde- NATIONAL RECORDS AND edy in Oklahoma City to take place. In pendent counsel has full authority and INFORMATION MANAGEMENT DAY addition, this bill makes much-needed budget to continue the investigation as ∑ Mr. FRIST. Mr. President, I rise revisions to the current habeas corpus long as he thinks is practicable. Call- today to note the observance of Na- system in our country.∑ ing an end to the Senate Whitewater April 18, 1996 CONGRESSIONAL RECORD — SENATE S3681 investigation only stops the duplica- provisions, which will limit Federal From 1981–85, Colonel Barbara was tion of investigations, neither of which court review in death penalty cases. I the TRADOC systems manager and as- have so far resulted in anything of sub- am also opposed to this bill’s provi- sistant manager for tanks, becoming stance. sions to weaken protections for refu- responsible in 1986 for M1A1 initial pro- The current resolution extends the gees and asylees fleeing persecution in duction, follow-on evaluation, and live committee’s deadline until June 14 and other countries which has nothing to fire testing. From 1988–90, he led the will cost the taxpayer’s an additional do with antiterrorism efforts. While I common chassis advanced technology $480,000. I believe this investigation am still profoundly opposed to these transition demonstrator, the largest, could have been completed by the provisions, I have concluded that on competitive weapons system program original promised deadline of February balance this bill should pass. in the history of the Army. 29.∑ There is much in this bill that is In 1993, Colonel Barbara led a process f good, that will address concerns Min- action team focusing on ways to de- nesotans have expressed to me. This velop and implement reengineering SAGINAW HIGH SCHOOL bill will make a real difference in the techniques to support acquisition ∑ Mr. LEVIN. Mr. President, on March fight against terrorism. It includes streamlining. In 1995, Jim became the 28, 1996, I spoke about the inspiring vic- many necessary changes to our Federal deputy program executive officer for tory of Saginaw High School in the criminal laws. It will make it a Federal tactical wheeled vehicles, where he was Michigan Class A State Basketball crime to plan or to carry out terrorist responsible for organizing the tactical Championship. However, I neglected to attacks in the United States. It will vehicle community’s emergency efforts mention the names of the players and make it a Federal crime to plan terror- to design, test, produce, and field coaches. I submit the list of Saginaw’s ist attacks in the United States, even armor protection kits for use in valiant victors for the RECORD. if the attacks are carried out overseas. Bosnia. Saginaw High School varsity basket- It includes increased penalties for con- Jim holds bachelor’s and master’s de- ball team and coaching staff. Players: spiracies involving explosives. It will grees from Boston College and an MBA Deon Anderson, Lawandzo Harris, make it easier to detect plastic explo- from Northwood University. Colonel Montell Lewis, Marcus McCray, sives, and to track chemicals of which Barbara’s awards and decorations in- Dwayne Nash, Jason Peoples, Deronnie most bombs are composed. It will make clude the Legion of Merit, Bronze Star Pitts, Andre Reed, Terrance Reed, it harder for terrorist groups to raise of Valor, Meritorious Service Medal, Antoine Tatum, Armar Vansant, Terry funds in the United States. It provides and Army Commendation Medal. He is Washington, Torrance Whitson, and mandatory restitution for victims of married to the former Eleanor B. Freeman Battle. Head coach: Marshall terrorist acts. It will help prevent the McMorrow of Worcester, MA. Thomas. Assistant coaches: Ronnie sale of arms to terrorist states by third I know that my Senate colleagues Bryant, Brian Humes, Larry Kelly, and parties. And it expands the authority join me in congratulating Col. James Shevonne Weems. ∑ of government officials to deal with C. Barbara on his 32 years of dedicated f threats posed by chemical, biological, service to our Nation. ∑ VOTE IN SUPPORT OF THE ANTI- and nuclear technologies, involving f TERRORISM BILL deadly nuclear materials. THE BUDGET DEBATE While I did not agree with every as- ∑ Mr. WELLSTONE. Mr. President, pect of the 1994 crime bill I supported it ∑ Mr. ABRAHAM. Mr. President, as the much has happened in the year since because I concluded that, on balance, it Senate continues to debate our proper this bill left the Senate. Oklahoma contained many effective provisions to budget priorities, I have noted the City has begun the healing process fight crime and violence. By the same presence of a number of inaccurate ar- from the senseless violence it suffered token this is a bill that on balance can guments. These arguments, in my opin- at the hands of a terrorist bomber. make an impact against terrorism. ion, are distracting us from the central Prime Minister Yitzhak Rabin was I voted against provisions in this bill question of how our taxing and spend- killed by a terrorist. Terrorism in the that I fiercely opposed, and supported ing policies affect middle-class Ameri- Middle East, against subway riders in many changes that were not agreed to. cans. Particularly worrisome to me are Tokyo and elsewhere have reminded us The President and Members of both inaccurate views concerning the histor- of the vulnerability of free societies to parties on both sides of Capitol Hill ical performance of tax cuts, and their this kind of senseless violence. The have nearly unanimously come to- impact on middle-class income in par- unabomber’s reign of terror has appar- gether in this statement against de- ticular. Specifically, some are arguing ently been brought to an end by the struction and violence. Because this that tax cuts in the 1980’s produced FBI. And the antiterrorism bill that bill successfully addresses a threat lower incomes for our middle class, and left this Senate has come back, in some that endangers all of us and because a saddled them with a larger percentage ways, a better bill: It is less invasive of unified effort makes a strong state- of total tax receipts. civil liberties when it comes to eaves- ment and therefore my voice can help In an attempt to focus debate more dropping by Federal agents, and it pre- make it stronger, I join my colleagues effectively on questions of what will vents defendants from being deported in its support. ∑ and will not work for the American based only on evidence they are not al- f people, I would like to have inserted lowed to understand. into the RECORD an article of mine, What happened to Rabin shows us all COL. JAMES C. BARBARA published recently in The World & I. In that terrorism is not going away. What ∑ Mr. LEVIN. Mr. President, I rise this article I set forth my view of the may have been a success in stopping today to honor Col. James C. Barbara real effect of tax cuts in the 1980’s. As the unabomber shows that the Federal on his retirement from the U.S. Army published, the article is accompanied Government can fight back. I support after 32 years of dedicated service. by spirited responses and defenses from this bill because I recognize that ter- Colonel Barbara has had a far-reaching several distinguished observers, includ- rorism is a threat that puts all our and successful career which has had a ing Gary Burtless of the Brookings In- lives at risk, and that we must bolster profound effect on the evolution of our stitution, Michael Meeropol of the Cen- national antiterrorism efforts, includ- Nation’s armored vehicles. ter for Popular Economics, Bruce Bart- ing by providing to law enforcement Col. Jim Barbara was commissioned lett of the National Center for Policy and the courts new tools to combat in armor through the Reserve Officer Analysis, Norman B. Ture´ of the Insti- cutting edge technologies of violence Training Corps and has served in Eu- tute for Research on the Economics of and increasingly bold villains, in order rope, Vietnam, and the United States. Taxation, and Paul M. Weyrich of the to stem the tide of destruction. He has been the commander of five Free Congress Foundation. I have made it clear that I do not companies; adviser to Alabama, Mis- I argue that the pro-growth and pro- support everything in this bill. I voted sissippi, and Tennessee National Guard family tax policies of the 1980’s con- against the Senate bill last year large- units; and the Secretary of the General tributed significantly to the prosperity ly because of its broad habeas corpus Staff XVIII Airborne Corps. of America’s middle-class families. In S3682 CONGRESSIONAL RECORD — SENATE April 18, 1996 addition, I point out that tax cuts that, during this first period, real median A 3 percent drop in income for the middle produce lower, not higher, deficits and family income fell precipitously from over 20 percent. $38,000 to under $36,000, for a total loss of Meanwhile, this 15-year period saw: that tax cuts help the middle class and A 5 percent increase in income for the poor more than the rich. Not all the re- over $2,500, according to Census Bureau data. In fact, one of the sharpest declines in me- fourth 20 percent. spondents agreed completely with my dian family income on record occurred in the An 18 percent increase in income for the argument. But I believe the article can year 1980. richest 20 percent of taxpayers, which was help all of us form more useful, coher- As anyone with a working knowledge of most problematic of all for critics of taxcut ent arguments as we face the budget the calendar and even a passing interest in policy. Once again, however, the use of this 15- American politics Knows, Ronald Reagan challenges ahead. year conglomeration produces misleading was not president in 1979 or 1980. Jimmy The article follows: figures. The data look bad for the poor and Carter was. Further, Republicans controlled THE REAL 1980’S middle class on this graph because, once the Senate for only the first 6 years of Rea- again, the figure lumps in the effects of (By Spencer Abraham) gan’s tenure. Jimmy Carter’s high-tax, high-regulation The debate over the budget is becoming a What is more, Republicans did not control policies with those of low taxes and low reg- debate over the 1980s. Opponents of tax cuts the House of Representatives at any time ulation. and spending restraints are claiming that during this 15-year period. Democrats were When we separate out the 1979–81 period these policies wreaked havoc when tried be- in charge the entire time. And, in 1979 and (fig. 4) from the 1982–90 recovery years (fig. fore under Ronald Reagan. The policies of 1980, they controlled both the legislature and 5), we find that everyone got poorer under the 1980s, in this view, hurt American fami- the presidency. the high-tax, high-regulation policies of 1979– lies and the American economy, and so Yet opponents of lower taxes and slower 81—the poor much more so and much more should not be repeated. spending growth almost always include 1979 devastatingly than the rich. From 1979 to To answer this criticism, one must explode and 1980, the last years of the Carter era, in 1981, the poorest fifth experienced a drop in three interrelated myths that are exercising describing the impact of the Reagan admin- income of 9 percent, the next fifth a drop of undue influence over the budget debate istration’s conservative tax and regulatory 6.8 percent, the middle fifth a drop of 5.4 per- today: reforms. But no matter how much one op- cent, the following fifth a drop of 3.5 percent, The progrowth and profamily tax policies poses tax cutting and deregulation, it is dif- and the top fifth a drop of 4.5 percent. of the 1980s actually hurt America’s ficult to argue that these policies, pursued Meanwhile, when the government lowered middleclass families. under Ronald Reagan and the GOP in 1981 taxes and regulations during the 1982–90 pe- Tax cuts necessarily increase the budget and beyond, were bad enough to cause in- riod, everyone got richer. deficit. come declines in the years before they were During the 1982–90 Reagan-Bush era, every- Tax cuts disproportionately benefit the implemented. one was better off. The bottom fifth experi- rich at the expense of the middle class and Unlike the 1993 Clinton income tax in- enced an 11 percent increase in income, the poor. creases, many of which were implemented next fifth experienced a 9.7 percent gain, the Using these myths, defenders of the status retroactively, the 1981 Reagan economic middle fifth a 10.3 percent increase, the next quo paint reformers as heartless friends of policies did not take effect until the middle fifth an 11.8 percent rise, and the highest rich people and enemies of the poor and mid- of 1982. And what happened after these poli- fifth a 17.9 percent increase. dle class. By exploding them, we can return cies went into effect in 1982? As anyone can After the 1990 budget deal, everyone again the focus of our budget debate to the ques- see from figure 2, real, postinflation median became worse off. And after President Clin- tion of how best to reform tax and spending family income in the United States rose be- ton’s retroactive tax hike took effect in 1993, policies for the benefit of all Americans. But tween 1982 and 1990, from $35,419 to $39,086, average Americans were hit hard. to do this, we must reestablish the truth for an increase of 10.4 percent. Perhaps some would complain that people about how our nation’s middle class really COLD WATER ON THE ECONOMY with high incomes did even better than other fared under the low-tax, limited-government Americans during the prosperous 1980s. But But in 1990, the Democratic majority in policies of the 1980s. government’s goal should not be to make all Congress began insisting that tax-revenue MYTH NO. 1 people the same. It should be to allow every- increases had to be part of any effort to re- one to become better off. And policies of low The claim that middle-class families suf- duce the budget deficit. The result was the taxes and fewer regulations did precisely fered under conservative reforms is based on budget summit deal of 1990. this. an inaccurate representation of the income After that, again shown in figure 2, we saw It really is very simple: Lower taxes and data. For example, opponents of reform have a different pattern. Between 1990 and 1993, less regulation help the poor, along with ev- said over and over that household income median family income plummeted 5.4 per- eryone else, while higher taxes and more reg- fell over a 15-year period, from $38,248 in 1979 cent, from $39,086 to $36,959. The most severe ulation hurt the poor, along with everyone to $36,959 in 1993, and that this decline was drop in middle-class income began in 1993, else. the direct result of the policies of Ronald the year the Clinton retroactive tax in- MYTH NO. 2 Reagan and the Republicans. They wield a creases took effect. In that year, there was a What about the notion that we cannot af- frightening graph, much like figure 1. remarkable $709 (1.9 percent) plunge in real ford tax cuts and that the tax cuts of the But the graph does not reflect reality. median family income. 1980s produced the burdensome deficits our These 15 years did not constitute one mono- So what conclusion should we reach? The economy is staggering under today? lithic era of Republican policy dominance. answer seems clear: Republican economic This myth, unfortunately, has led some in Rather, they included two periods character- and tax policies helped the middle class. Congress to abandon their commitment to ized by overtaxation and overregulation Thus, to get middle-class incomes moving tax cuts in the name of common sense. They (1979–81 and 1990–93) and one period (1982–89) upward again, we should return to the low- now argue that common sense demands that during which Republican policies of lower tax, deregulatory policies of the 1980s. These we delay, cut back, or abandon entirely any taxes and less regulation were in place. An policies produced one of the most dramatic tax cuts, at least until we achieve a balanced accurate portrayal of this overall period increases in middle-class incomes in the last budget. would look like figure 2. 30 years. In fact, tax cuts can help America achieve In truth, this 15-year period consists of one Nineteen million new jobs were created be- the goal of balancing the budget. Tax reduc- era of middle-class prosperity under low-tax, tween 1982 and 1989—2.4 million in 1989 alone. tions—particularly those that strengthen in- limited-government policies and two eras of And 82 percent of these jobs were in higher- centives to work, save, and invest—increase middle-class pain under policies of high paying occupations: technical, precision pro- the rate of economic growth and thereby taxes and increased regulation. Americans duction, and managerial and professional. produce higher tax revenues for the Treasury had 8 years of improvement in middle-class Clearly then, tax cuts helped the middle than would be the case under a high-tax re- incomes from 1982 to 1989. Unfortunately for class in the best way possible, by producing gime. the middle class, the periods from 1979 to economic opportunity and good jobs. It is a paradoxical truth—to paraphrase 1981 and 1990 to 1993 were dominated by over- This brings us to a subset of the first what President John F. Kennedy said in taxation and overregulation, policies that re- myth: that the rich got richer and the poor 1962—that tax rates are too high today and sulted in declines in middle-class incomes. got poorer during the 1980s. Once again, this tax revenues are too low. And the soundest Opponents of reform attempt to paint Ron- claim is unsubstantiated by the facts. First, way to raise revenue in the long run is to cut ald Reagan’s low-tax, limited-government let us look at a graph (fig. 3) that surfaced the rates now. policies as harmful by treating the 1979–93 during the economic policy debate. Kennedy was right and for a simple if period as if all of it were in the Reagan era. According to this figure, the 15 years be- somewhat unexpected reason: Irrespective of They wrongly imply that Reagan was presi- tween 1979 and 1993 produced: the top marginal tax rate, the government dent and Republicans were in control A 15 percent decline in real family income will take in about the same amount as a per- throughout this period. for the bottom 20 percent of America tax- centage of gross domestic product (GDP). On closer inspection, it becomes clear that payers. Research by economist W. Kurt Hauser the first 3 of the 15 years were under high-tax A 7 percent drop in income for the second- shows that government receipts as a propor- and heavy regulatory policies. It is also clear lowest 20 percent of taxpayers. tion of GDP have continued to hover at 19.5 April 18, 1996 CONGRESSIONAL RECORD — SENATE S3683 percent since 1960. In 1982, the tax share come tax burden. Also in 1988, the average statement to be printed in the RECORD stood at 19.8 percent of GDP. By 1989, the tax tax payment of the top 1 percent of tax- on behalf of myself, as the sponsor of share had declined slightly to 19.2 percent of payers amounted to 27.5 percent of the total. the S. 219, Senator REID, the prime co- GDP—much the same as it had been back in On the other hand, after the budget sum- sponsor of S. 219, and Senator STEVENS, 1960. mit deal of 1990, the top marginal tax rate In short, whether we have raised or low- was increased from 28 to 31 percent. This pro- the chairman of the Committee on ered tax rates, the percentage of GDP in duced a 3.5 percent decrease in the revenue Governmental Affairs. This joint state- taxes has hovered at 19 percent. The issue, of share paid by the top 1 percent—down to 24.6 ment is intended to provide guidance course, is 19 percent of what? Is it 19 percent percent of the total. That is, as marginal to the agencies, the courts, and other of a large and growing GDP, or of an anemic, rates decreased, the rich paid more, and as interested parties when interpreting stagnant one? marginal rates increased the rich paid less, the act’s terms. The same statement Here again, the real numbers destroy the leaving more for the middle class and poor to has been submitted today in the House myths and tell the true story. According to pay. by the chairmen of the committees of the federal Office of Management and Budget Clearly, then, if we want to help the mid- (OMB), in 1982, the year the tax cuts were dle class, the last thing we should do is in- jurisdiction over the congressional re- implemented, tax receipts stood at $617.8 bil- crease marginal tax rates. Such an increase view legislation. lion. By 1989, tax receipts had increased to will lead to lower productivity, lower tax The joint statement follows: $990.7 billion. revenues from the rich, and an increased tax STATEMENT FOR THE RECORD BY SENATORS How did this come about? By lowering burden for those who are not rich. NICKLES, REID, AND STEVENS taxes, the government freed up capital and The answer to our dilemma, then, is not to SUBTITLE E—CONGRESSIONAL REVIEW SUBTITLE entrepreneurial spirit, creating jobs and keep our current high taxes but to cut taxes Subtitle E adds a new chapter to the Ad- wealth and expanding the size of the eco- while bringing spending under control. ministrative Procedure Act (APA), ‘‘Con- nomic pie. From 1982 to 1989, GDP increased By bringing together disparate kinds of tax gressional Review of Agency Rulemaking,’’ from $3.1 to $5.4 trillion. Therefore, while tax cuts, from a $500-per-child tax credit to a re- which is codified in the United States Code revenues as a share of GDP remained rel- duction in the capital-gains tax rate that as chapter 8 of title 5. The congressional re- atively constant at just over 19 percent, the will strengthen small businesses and entre- view chapter creates a special mechanism for dollar amount of tax revenues collected by preneurs, we can increase the well-being and Congress to review new rules issued by fed- the federal government rose dramatically, productivity of America’s middle-class fami- eral agencies (including modification, repeal, because the economy grew dramatically. lies. These tax cuts would allow middle-class or reissuance of existing rules). During the Tax cuts will increase economic growth families to build a better future for their review period, Congress may use expedited and thereby reduce the deficit. The question children. procedures to enact joint resolutions of dis- is, by how much? Economist Bruce Bartlett, The proposed $500-per-child tax credit di- approval to overrule the federal rulemaking a former assistant secretary of the Treasury, rectly benefits the middle class. The Joint actions. In the 104th Congress, four slightly notes that the OMB figures show that in- Committee on Taxation has reported that different versions of this legislation passed creases in real GDP significantly reduce the three-quarters of the benefits from this tax the Senate and two different versions passed deficit. By the year 2000, the deficit would be cut will go to people with incomes less than the House. Yet, no formal legislative history diminished by more than $150 billion if the $75,000. document was prepared to explain the legis- economy grew just 1 percent faster than cur- A capital-gains tax cut will accrue to the lation or the reasons for changes in the final rently projected over the next five years. middle class as well. IRS data show that 55 language negotiated between the House and Of course, Bartlett says, there is no guar- percent of taxpayers who report long-term Senate. This joint statement of the authors antee that the Republican tax cuts will capital gains earn $50,000 or less. And 75 per- on the congressional review subtitle is in- achieve a 1 percent faster growth rate. But cent of them earn $75,000 or less. tended to cure this deficiency. there is no doubt they will increase growth These tax cuts will bring real relief to Background above what would otherwise have occurred. America’s middle class. They will help the If growth is just 0.4 percent faster per year it economy and thereby help lower the deficit. As the number and complexity of federal would be enough to make the tax cut deficit- The 1980s teach us—if only we will examine statutory programs has increased over the neutral, based on the OMB data. their lessons properly—that a vibrant econ- last fifty years, Congress has come to depend Thus, a dispassionate review of the figures omy, spurred by low taxes and fewer regula- more and more upon Executive Branch agen- shatters the myth that the Reagan tax cuts tions, will produce balanced budgets and eco- cies to fill out the details of the programs it increased the deficit. The problem was not nomic well-being for the middle class. We enacts. As complex as some statutory our revenue stream, either in terms of the need only trust Americans to spend and in- schemes passed by Congress are, the imple- percentage of GDP paid in taxes, or in real vest their own money as they see fit. We menting regulations are often more complex tax dollars received. The problem was too need only trust the people, rather than gov- by several orders of magnitude. As more and much spending. From 1982 to 1989, govern- ernment, to make their own decisions about more of Congress’ legislative functions have ment spending rose from $745 billion to $1.14 how to take care of their families and im- been delegated to federal regulatory agen- trillion, a 53 percent jump. prove their lot in life.∑ cies, many have complained that Congress has effectively abdicated its constitutional Tax cuts in the 1990s can help produce the f same type of economic growth they gen- role as the national legislature in allowing erated in the 1980s. This growth in turn will CONGRESSIONAL REVIEW TITLE federal agencies so much latitude in imple- help us reduce the deficit. All we must do is OF H.R. 3136 menting and interpreting congressional en- reduce the rate at which government spend- actments. ing grows. CBO figures show that, if we sim- ∑ Mr. NICKLES. Mr. President, I will In many cases, this criticism is well found- ply hold the rate at which federal spending submit for the RECORD a statement ed. Our constitutional scheme creates a deli- grows to a little over 2 percent per year, we which serves to provide a detailed ex- cate balance between the appropriate roles can cut taxes by $189 billion and balance the planation and a legislative history for of the Congress in enacting laws, and the Ex- budget by the year 2002. the congressional review title of H.R. ecutive Branch in implementing those laws. This legislation will help to redress the bal- MYTH NO. 3 3136, the Small Business Regulatory ance, reclaiming for Congress some of its But this reference to tax cuts brings us Enforcement Fairness Act of 1996. H.R. policymaking authority, without at the face to face with another myth, namely, that 3136 was passed by the Senate on March same time requiring Congress to become a tax cuts disproportionately benefit the rich 28, 1996, and was signed by the Presi- super regulatory agency. at the expense of the poor. dent the next day. Ironically, the This legislation establishes a government- The myth explodes, however, on contact President signed the legislation on the wide congressional review mechanism for with IRS data conclusively show that lower first anniversary of the passage of S. most new rules. This allows Congress the op- income-tax rates actually increase the per- 219, the forerunner to the congressional portunity to review a rule before it takes ef- centage of the total tax bill paid by the rich fect and to disapprove any rule to which while decreasing the tax burden on the poor. review title. Last year, S. 219, passed Congress objects. Congress may find a rule to There is an amazing historical correlation the Senate by a vote of 100 to 0 on be too burdensome, excessive, inappropriate between decreases in the marginal tax rate March 29, 1995. Because title III of H.R. or duplicative. Subtitle E uses the mecha- and increases in the share of revenue paid by 3136 was the product of negotiation nism of a joint resolution of disapproval the top 1 percent of income earners. And, of with the Senate and did not go through which requires passage by both houses of course, along with this increase in taxes paid the committee process, no other ex- Congress and the President (or veto by the by the most wealthy went a decrease in the pression of its legislative history exists President and a two-thirds’ override by Con- taxes paid by the lower 50 percent of income other than the joint statement made gress) to be effective. In other words, enact- earners. ment of a joint resolution of disapproval is For example, by 1988, the share of income by Senator REID and myself imme- the same as enactment of a law. taxes paid by the bottom 50 percent of tax- diately before passage of H.R. 3136 on Congress has considered various proposals payers assumed just 5.7 percent of the in- March 28. I am submitting a joint for reviewing rules before they take effect S3684 CONGRESSIONAL RECORD — SENATE April 18, 1996 for almost twenty years. Use of a simple three days. On November 9, 1995 both the dures governing joint resolutions of dis- (one-house), concurrent (two-house), or joint House and Senate passed this version of the approval. Moreover, the congressional review (two houses plus the President) resolution congressional review legislation as part of period will not begin to run until such rules are among the options that have been de- the first debt limit extension bill. President and the accompanying reports are submitted bated and in some cases previously imple- Clinton vetoed the bill a few days later, for to each House of Congress and the Comptrol- mented on a limited basis. In INS v. Chadha, reasons unrelated to the congressional re- ler General. 462 U.S. 919 (1983), the Supreme Court struck view provision. In accordance with current House and Sen- down as unconstitutional any procedure On February 29, 1996, a House version of ate rules, covered agency rules and the ac- where executive action could be overturned the congressional review legislation was pub- companying report must be separately ad- by less than the full process required under lished in the Congressional Record as title dressed and transmitted to the Speaker of the Constitution to make laws—that is, ap- III of H.R. 994, which was scheduled to be the House (the Capitol, Room H–209), the proval by both houses of Congress and pre- brought to the House floor in the coming President of the Senate (the Capitol, Room sentment to the President. That narrowed weeks. The congressional review title was al- S–212), and the Comptroller General (GAO Congress’ options to use a joint resolution of most identical to the legislation approved by Building, 441 G Street, N.W., Room 1139). Ex- disapproval. The one-house or two-house leg- both Houses in H.R. 2586. On March 19, 1996, cept for rules described in section 808, any islative veto (as procedures involving simple the Senate adopted a congressional review covered rule not submitted to Congress and and concurrent resolutions were previously amendment by voice vote to S. 942, which the Comptroller General will remain ineffec- called), was thus voided. bill passed the Senate 100–0. The congres- tive until it is submitted pursuant to sub- Because Congress often is unable to antici- sional review legislation in S. 942 was similar section 801(a)(1)(A). In almost all cases, there pate the numerous situations to which the to the original version of S. 219 that passed will be sufficient time for an agency to sub- laws it passes must apply, Executive Branch the Senate on March 29, 1995. mit notice-and-comment rules or other agencies sometimes develop regulatory Soon after passage of S. 942, representa- rules, that must be published to these legis- schemes at odds with congressional expecta- tives of the relevant House and Senate com- lative officers during normal office hours. tions. Moreover, during the time lapse be- mittees and principal sponsors of the con- There may be rare instance, however, when a tween passage of legislation and its imple- gressional review legislation met to craft a federal agency must issue an emergency rule mentation, the nature of the problem ad- congressional review subtitle that was ac- that is effective upon actual notice and does dressed, and its proper solution, can change. ceptable to both Houses and would be added not meet one of the section 808 exceptions. In Rules can be surprisingly different from the to the debt limit bill that was scheduled to such a rare case, the federal agency may pro- expectations of Congress or the public. Con- be taken up in Congress the week of March vide contemporaneous notice to the Speaker gressional review gives the public the oppor- 24. The final compromise language was the of the House, the President of the Senate, tunity to call the attention of politically ac- result of these joint discussions and negotia- and the Comptroller General. These legisla- countable, elected officials to concerns about tions. tive officers have accommodated the receipt new agency rules. If these concerns are suffi- On March 28, 1996, the House and Senate of similar, emergency communications in ciently serious, Congress can stop the rule. passed title III, the ‘‘Small Business Regu- the past and will utilize the same means to Brief procedural history of congressional review latory Enforcement Fairness Act of 1996,’’ as receive emergency rules and reports during chapter part of the second debt limit bill, H.R. 3136. nonbusiness hours. If no other means of de- There was no separate vote in either body on livery is possible, delivery of the rule and re- In the 104th Congress, the congressional re- the congressional review subtitle or on title lated report by telefax to the Speaker of the view legislation originated as S. 348, the III of H.R. 3136. However, title III received House, the President of the Senate, and the ‘‘Regulatory Oversight Act,’’ which was in- broad support in the House and the entire Comptroller General shall satisfy the re- troduced on February 2, 1995. The text of S. bill passed in the Senate by unanimous con- quirements of subsection 801(a)(1)(A). 348 was offered by its sponsors, Senators Don sent. The President signed H.R. 3136 into law Nickles and Harry Reid, as a substitute Additional delay in the effectiveness of major on March 29, 1996, exactly one year after the amendment to S. 219, the ‘‘Regulatory Tran- rules first congressional review bill passed the sition Act of 1995.’’ As amended, S. 219 pro- Subsection 553(d) of the APA requires pub- Senate. vided for a 45-day delay on the effectiveness lication or service of most substantive rules of a major rule, and provided expedited pro- Submission of rules to Congress and to GAO at least 30 days prior to their effective date. cedures that Congress could use to pass reso- Pursuant to subsection 801(a)(1)(A), a fed- Pursuant to subsection 801(a)(3)(A), a major lutions disapproving of the rule. On March eral agency promulgating a rule must sub- rule (as defined in subsection 804(2)) shall not 29, 1995, the Senate passed the amended ver- mit a copy of the rule and a brief report take effect until at least 60 calendar days sion of S. 219 by a vote of 100–0. The Senate about it to each House of Congress and to the after the later of the date on which the rule later substituted the text of S. 219 for the Comptroller General before the rule can take and accompanying information is submitted text of H.R. 450, the House passed ‘‘Regu- effect. In addition to a copy of the rule, the to Congress or the date on which the rule is latory Transition Act of 1995.’’ Although the report shall contain a concise general state- published in the Federal Register, if it is so House did not agree to a conference on H.R. ment relating to the rule, including whether published. If the Congress passes a joint reso- 450 and S. 219, both Houses continued to in- it is a major rule under the chapter, and the lution of disapproval and the President ve- corporate the congressional review provi- proposed effective date of the rule. Because toes such resolution, the delay in the effec- sions in other legislative packages. On May most rules covered by the chapter must be tiveness of a major rule is extended by sub- 25, the Senate Governmental Affairs Com- published in the Federal Register before they section 801(a)(3)(B) until the earlier date on mittee reported out S. 343, the ‘‘Comprehen- can take effect, it is not expected that the which either House of Congress votes and sive Regulatory Reform Act of 1995,’’ and S. submission of the rule and the report to Con- fails to override the veto or 30 session days 1 291, the ‘‘Regulatory Reform Act of 1995,’’ gress and the Comptroller General will lead after the date on which the Congress receives both with congressional review provisions. to any additional delay. the veto and objections from the President. On May 26, 1995, the Senate Judiciary Com- Section 808 provides the only exception to By necessary implication, if the Congress mittee reported out a different version of S. the requirement that rules must be submit- passes a joint resolution of disapproval with- 343, the ‘‘Comprehensive Regulatory Reform ted to each House of Congress and the Comp- in the 60 calendar days provided in sub- Act of 1995,’’ which also included a congres- troller General before they can take effect. section 801(a)(3)(A), the delay period in the sional review provision. The congressional Subsection 808(1) excepts specified rules re- effectiveness of a major rule must be ex- review provision in S. 343 that was debated lating to commercial, recreational, or sub- tended at least until the President acts on by the Senate was quite similar to S. 219, ex- sistence hunting, fishing, and camping. Sub- the joint resolution or until the time expires cept that the delay period in the effective- section 808(2) excepts certain rules that are for the President to act. Any other result ness of a major rule was extended to 60 days not subject to notice-and-comment proce- would be inconsistent with subsection and the legislation did not apply to rules is- dures. It provides that if the relevant agency 801(a)(3)(B), which extends the delay in the sued prior to enactment. A filibuster of S. finds ‘‘for good cause . . . that notice and effectiveness of a major rule for a period of 343, unrelated to the congressional review public procedure thereon are impracticable, time after the President vetoes a resolution. provisions, led to the withdrawal of that bill. unnecessary, or contrary to the public inter- Of course, if Congress fails to pass a joint The House next took up the congressional est, [such rules] shall take effect at such resolution of disapproval within the 60-day review legislation by attaching a version of time as the Federal agency promulgating the period provided by subsection 801(a)(3)(A), it (as section 3006) to H.R. 2586, the first debt rule determines.’’ Although rules described subsection 801(a)(3)(B) would not apply and limit extension bill. The House made several in section 808 shall take effect when the rel- changes in the legislation that was attached evant Federal agency determines pursuant 1 In the Senate, a ‘‘session day’’ is a calendar day to H.R. 2586, including a provision that would to other provisions of law, the federal agency in which the Senate is in session. In the House of allow the expedited procedures also to apply still must submit such rules and the accom- Representatives, the same term is normally ex- to resolutions disapproving of proposed panying report to each House of Congress pressed as a ‘‘legislative day.’’ In the congressional review chapter, however, the term ‘‘session day’’ rules, and provisions that would have ex- and to the Comptroller General as soon as means both a ‘‘session day’’ of the Senate and a tended the 60-day delay on the effectiveness practicable after promulgation. Thus, rules ‘‘legislative day’’ of the House of Representatives of a major rule for any period when the described in section 808 are subject to con- unless the context of the sentence or paragraph indi- House or Senate was in recess for more than gressional review and the expedited proce- cates otherwise. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3685 would not further delay the effective date of under the Telecommunications Act of 1996 or be introduced in either House beginning on the rule. Moreover, pursuant to subsection any amendments made by that Act that oth- the date of the rule and accompanying report 801(a)(5), the effective date of a rule shall not erwise could be classified as a ‘‘major rule’’ are received by Congress until 60 calendar be delayed by this chapter beyond the date is exempt from that definition and from the days thereafter (excluding days either House on which either house of Congress votes to 60-day delay in section 801(a)(3). However, of Congress is adjourned for more than 3 reject a joint resolution of disapproval. such an issuance still would fall within the days during a session of Congress). But if Although it is not expressly provided in definition of ‘‘rule’’ and would be subject to Congress did not have sufficient time in a the congressional review chapter, it is the the requirements of the legislation for non- previous session to introduce or consider a authors’ intent that a rule may take effect if major rules. A determination under sub- resolution of disapproval, as set forth in sub- an adjournment of Congress prevents the section 801(c), subsection 804(2), or section section 801(d), the rule and accompanying re- President from returning his veto and objec- 808 shall have no effect on the procedures to port will be treated as if it were first re- tions within the meaning of the Constitu- enact joint resolutions of disapproval. ceived by Congress on the 15th session day in tion. Such will be the case if the President A court may not stay or suspend the effective- the Senate, or 15th legislative day in the does not act on a joint resolution within 10 ness of a rule beyond the period specified in House, after the start of its next session. days (Sundays excepted) after it is presented section 801 simply because a resolution of dis- When a rule was submitted near the end of a to him, and ‘‘the Congress by their Adjourn- approval is pending in Congress Congress or prior to the start of the next ment prevent its Return’’ within the mean- The authors discussed the relationship be- Congress, a joint resolution of disapproval ing of Article I, § 7, cl. 2, or when the Presi- tween the period of time that a major rule is regarding that rule may be introduced in the dent affirmatively vetoes a resolution during delayed and the period of time during which next Congress beginning on the 15th session such an adjournment. This is the logical re- Congress could use the expedited procedures day in the Senate or the 15th legislative day sult because Congress cannot act to override in section 802 to pass a resolution of dis- in the House until 60 calendar days there- these vetoes. Congress would have to begin approval. Although it would be best for Con- after (excluding days either House of Con- anew, pass a second resolution, and present gress to act pursuant to this chapter before gress is adjourned for more than 3 days dur- it to the President in order for it to become a major rule goes into effect, it was recog- ing the session) regardless of whether such a law. It is also the authors’ intent that a rule nized that Congress could not often act im- resolution was introduced in the prior Con- may take effect immediately if the President mediately after a rule was issued because it gress. Of course, any joint resolution pending returns a veto and his objections to Congress may be issued during a recesses of Congress, from the first session of a Congress, may be but Congress adjourns its last session sine shortly before such recesses, or during other considered further in the nest session of the die before the expiration of time provided in periods when Congress cannot devote the same Congress. subsection 801(a)(3)(B). Like the situations time to complete prompt legislative action. Subsections 802(c)–(d) specify special proce- described immediately above, no subsequent Accordingly, the authors determined that dures that apply to the consideration of a Congress can act further on the veto, and the the proper public policy was to give Congress joint resolution of disapproval in the Senate. next Congress would have to begin anew, an adequate opportunity to deliberate and Subsection 803(c) allows 30 Senators to peti- pass a second resolution of disapproval, and act on joint resolutions of disapproval, while tion for the discharge of resolution from a Senate committee after a specified period of present it to the President in order for it to ensuring that major rules could go into ef- time (the later of 20 calendar days after the become law. fect without unreasonable delay. In short, the authors decided that major rules could rule is submitted to Congress or published in Purpose of and exceptions to the delay of major take effect after an approximate 60-day the Federal Register, if it is so published). rules delay, but the period governing the expedited Subsection 802(d) specifies procedures for the The reason for the delay in the effective- procedures in section 802 for review of joint consideration of a resolution on the Senate ness of a major rule beyond that provided in resolution of disapproval would extend for a floor. Such a resolution is highly privileged, APA subsection 553(d) is to try to provide period of time beyond that. points or order are waived, a motion to post- Congress with an opportunity to act on reso- Accordingly, courts may not stay or sus- pone consideration is not in order, the resolutions of disapproval before regulated par- pend the effectiveness of any rule beyond the lution is unamendable, and debate on the ties must invest the significant resources periods specified in section 801 simply be- joint resolution and ‘‘on all debatable mo- necessary to comply with a major rule. Con- cause a joint resolution is pending before tions and appeals in connection therewith’’ gress may continue to use the expedited pro- Congress. Such action would be contrary to (including a motion to proceed) is limited to cedures to pass resolutions of disapproval for the many express provisions governing when no more than 10 hours. a period of time after a major rule takes ef- different types of rules may take effect. Subsection 802(e) provides that the special fect, but it would be preferable for Congress Such court action also would be contrary to Senate procedures specified in subsections to act during the delay period so that fewer the authors’ intent because it would upset an 802(c)-(d) shall not apply to the consideration resources would be wasted. To increase the important compromise on how long a delay of any joint resolution of disapproval of a likelihood that Congress would act before a there should be on the effectiveness of a rule after 60 session days of the Senate be- major rule took effect, the authors agreed on major rule. The final delay period was se- ginning with the later date that rule is sub- an approximately 60-day delay period in the lected as a compromise between the period mitted to Congress or published, if it is so effective date of a major rule, rather than an specified in the version that passed the Sen- published. However, if a rule and accompany- approximately 45-day delay period in some ate on March 19, 1995, and the version that ing report are submitted to Congress shortly earlier versions of the legislation. passed both Houses on November 9, 1995. It is before the end of a session or during an There are four exceptions to the required also the authors’ belief that such court ac- intersession recess as described in subsection delay in the effectiveness of a major rule in tion would be inconsistent with the prin- 801(d)(1), the special Senate procedures speci- the congressional review chapter. The first is ciples of (and potentially violate) the Con- fied in subsections 802(c)-(d) shall expire 60 in subsection 801(c), which provides that a stitution, art. I, § 7, cl. 2, in that courts may session days after the 15th session day of the major rule is not subject to the delay period not give legal effect to legislative action un- succeeding session of Congress—or on the of subsection 801(a)(3) if the President deter- less it results in the enactment of law pursu- 75th session day after the succeeding session mines in an executive order that one of four ant that Clause. See INS v. Chadha, 462 U.S. of Congress first convenes. For purposes of specified situations exist and notifies Con- 919 (1983). Finally, the authors intend that a subsection 802(e), the term ‘‘session day’’ re- gress of his determination. The second is in court may not predicate a stay on the basis fers only to a day the Senate is in session, subsection 808(1), which excepts specified of possible future congressional action be- rather than a day both Houses are in session. rules relating to commercial, recreational, cause it would be improper for a court to However, in computing the time specified in or subsistence hunting, fishing, and camping rule that the movant had demonstrated a subsection 801(d)(1), that subsection specifies from the initial delay specified in subsection ‘‘likelihood of success on the merits,’’ unless that there shall be an additional period of re- 801(a)(1)(A) and from the delay in the effec- and until a joint resolution is enacted into view in the next session if either House did tive date of a major rule provided in sub- law. A judicial stay prior to that time would not have an adequate opportunity to com- section 801(a)(3). The third is in subsection raise serious separation of powers concerns plete action on a joint resolution. Thus, if ei- 808(2), which excepts certain rules from the because it would be tantamount to the court ther House of Congress did not have ade- initial delay specified in subsection making a prediction of what Congress is quate time to consider a joint resolution in 801(a)(1)(A) and from the delay in the effec- likely to do and then exercising its own a given session (60 session days in the Senate tive date of a major rule provided in sub- power in furtherance of that prediction. In- and 60 legislative days in the House), resolu- section 801(a)(3) if the relevant agency finds deed, the authors intend that Congress may tions of disapproval may be introduced or re- ‘‘for good cause . . . that notice and public have been reluctant to pass congressional re- introduced in both Houses in the next ses- procedure thereon are impracticable, unnec- view legislation at all if its action or inac- sion, and the special Senate procedures spec- essary, or contrary to the public interest.’’ tion pursuant to this chapter would be treat- ified in subsection 802(c)-(d) shall apply in This ‘‘good cause’’ exception in subsection ed differently than its action or inaction re- the next session of the Senate. 808(2) is taken from the APA and applies garding any other bill or resolution. If a joint resolution of disapproval is pend- only to rules which are exempt from notice Time periods governing passage of joint ing when the expedited Senate procedures and comment under subsection 553(b)(B) or resolutions of disapproval specified in subsections 802(c)-(d) expire, the an analogous statute. The fourth exception Subsection 802(a) provides that a joint res- resolution shall not die in either House but is in subsection 804(2). Any rule promulgated olution disapproving of a particular rule may shall simply be considered pursuant to the S3686 CONGRESSIONAL RECORD — SENATE April 18, 1996 normal rules of either House—with one ex- the Office of Information and Regulatory Af- 42 U.S.C. § 7607(d) (promulgation of rules); ception. Subsection 802(f) sets forth one fairs of the Office of Management and Budg- and section 501 of the Department of Energy unique provision that does not expire in ei- et are not subject to judicial review. Nor Organization Act, 42 U.S.C. § 7191 (procedure ther House. Subsection 802(f) provides proce- may a court review whether Congress com- for issuance of rules, regulations, and or- dures for passage of a joint resolution of dis- plied with the congressional review proce- ders). Examples of government-wide statutes approval when one House passes a joint reso- dures in this chapter. This latter limitation include other chapters of the Administrative lution and transmits it to the other House on the scope of judicial review was drafted in Procedure Act, 5 U.S.C. §§ 551–559 and 701–706; that has not yet completed action. In both recognition of the constitutional right of and the Paperwork Reduction Act, as amend- Houses, the joint resolution of the first each House of Congress to ‘‘determine the ed, 44 U.S.C. §§ 3501–3520. House to act shall not be referred to a com- Rules of its Proceedings,’’ U.S. Const., art. I, Examples of relevant executive orders in- mittee but shall be held at the desk. In the § 5, cl. 2, which includes being the final arbi- clude E.O. No. 12866 (Sept. 30, 1993) (Regu- Senate, a House-passed resolution may be ter of compliance with such Rules. latory Planning and Review); E.O. No. 12606 considered directly only under normal Sen- The limitation on a court’s review of sub- (Sept. 2, 1987) (Family Considerations in Pol- ate procedures, regardless of when it is re- sidiary determination or compliance with icy Formulation and Implementation); E.O. ceived by the Senate. A resolution of dis- congressional procedures, however, does not No. 12612 (Oct. 26, 1987) (Federalism Consider- approval that originated in the Senate may bar a court from giving effect to a resolution ations in Policy Formulation and Implemen- be considered under the expedited procedures of disapproval that was enacted into law. A tation); E.O. No. 12630 (Mar. 15, 1988) (Govern- only during the period specified in sub- court with proper jurisdiction may treat the ment Actions and Interference with Con- section 802(e). Regardless of the procedures congressional enactment of a joint resolu- stitutionally Protected Property Rights); used to consider a joint resolution in either tion of disapproval as it would treat the en- E.O. No. 23875 (Oct. 26, 1993) (Enhancing the House, the final vote of the second House actment of any other federal law. Thus, a Intergovernmental Partnership); E.O. No. shall be on the joint resolution of the first court with proper jurisdiction may review 12778 (Oct. 23, 1991) (Civil Justice Reform); House (no matter when that vote takes the resolution of disapproval and the law E.O. No. 12988 (Feb. 5, 1996) (Civil Justice Re- place). If the second House passes the resolu- that authorized the disapproved rule to de- form) (effective May 5, 1996). tion, no conference is necessary and the joint termine whether the issuing agency has the GAO reports on major rules resolution will be presented to the President legal authority to issue a substantially dif- Fifteen days after the federal agency sub- for his signature. Subsection 802(f) is justi- ferent rule. The language of subsection 801(g) mits a copy of a major rule and report to fied because subsection 802(a) sets forth the is also instructive. Subsection 801(g) pro- each House of Congress and the Comptroller required language of a joint resolution in hibits a court or agency from inferring any General, the Comptroller General shall pre- each House, and thus, permits little variance intent of the Congress only when ‘‘Congress pare and provide a report on the major rule in the joint resolutions that could be intro- does not enact a joint resolution of dis- to the committee of jurisdiction in each duced in each House. approval,’’ or by implication, when it has not House. Subsection 801(a)(2)(B) requires agen- Effect of enactment of a joint resolution of yet done so. In deciding cases or controver- cies to cooperate with the Comptroller Gen- disapproval sies properly before it, a court or agency eral in providing information relevant to the Subsection 801(b)(1) provides that: ‘‘A rule must give effect to the intent of the Con- Comptroller General’s reports on major shall not take effect (or continue), if the gress when such a resolution is enacted and rules. Given the 15-day deadline for these re- Congress enacts a joint resolution of dis- becomes the law of the land. The limitation ports, it is essential that the agencies’ ini- approval, described under section 802, of the on judicial review in no way prohibits a tial submission to the General Accounting rule.’’ Subsection 801(b)(2) provides that such court from determining whether a rule is in Office (GAO) contain all of the information a disapproved rule ‘‘may not be reissued in effect. For example, the authors expect that necessary for GAO to conduct its analysis. substantially the same form, and a new rule a court might recognize that a rule has no At a minimum, the agency’s submission that is substantially the same as such a rule legal effect due to the operation of sub- must include the information required of all may not be issued, unless the reissued or new sections 801(a)(1)(A) or 801(a)(3). rules pursuant to 801(a)(1)(B). Whenever pos- rule is specifically authorized by a law en- Enactment of a joint resolution of disapproval sible, OMB should work with GAO to alert acted after the date of the joint resolution for a rule that was already in effect GAO when a major rule is likely to be issued disapproving the original rule.’’ Subsection Subsection 801(f) provides that: ‘‘Any rule and to provide as much advance information 801(b)(2) is necessary to prevent circumven- that takes effect and later is made of no to GAO as possible on such proposed major tion of a resolution disapproval. Neverthe- force or effect by enactment of a joint reso- rule. In particular, OMB should attempt to less, it may have a different impact on the lution under section 802 shall be treated as provide the complete cost-benefit analysis issuing agencies depending on the nature of though such rule had never taken effect.’’ on a major rule, if any, well in advance of the underlying law that authorized the rule. Application of this subsection should be con- the final rule’s promulgation. If the law that authorized the disapproved sistent with existing judicial precedents on It also is essential for the agencies to rule provides broad discretion to the issuing rules that are deemed never to have taken present this information in a format that agency regarding the substance of such rule, effect. will facilitate the GAO’s analysis. The au- the agency may exercise its broad discretion Agency information required to be submitted to thors expect that GAO and OMB will work to issue a substantially different rule. If the GAO together to develop, to the greatest extent law that authorized the disapproved rule did Pursuant to subsection 801(a)(1)(B), the practicable, standard formats for agency not mandate the promulgation of any rule, federal agency promulgating the rule shall submissions. OMB also should ensure that the issuing agency may exercise its discre- submit to the Comptroller General (and agencies follow such formats. The authors tion not to issue any new rule. Depending on make available to each House) (i) a complete also expect that agencies will provide expedi- the law that authorized the rule, an issuing copy of the cost-benefit analysis of the rule, tiously any additional information that GAO agency may have both options. But if an if any, (ii) the agency’s actions related to the may require for a thorough report. The au- agency is mandated to promulgate a particu- Regulatory Flexibility Act, (iii) the agency’s thors do not intend the Comptroller Gen- lar rule and its discretion in issuing the rule actions related to the Unfunded Mandates eral’s reports to be delayed beyond the 15- is narrowly circumscribed, the enactment of Reform Act, and (iv) ‘‘any other relevant in- day deadline due to lack of information or a resolution of disapproval for that rule may formation or requirements under any other resources unless the committees of jurisdic- work to prohibit the reissuance of any rule. Act and any relevant Executive Orders.’’ tion indicate a different preference. Of The authors intend the debate on any resolu- Pursuant to subsection 801(a)(1)(B), this in- course, the Comptroller General may supple- tion of disapproval to focus on the law that formation must be submitted to the Comp- ment his initial report at any time with any authorized the rule and make the congres- troller General on the day the agency sub- additional information, on its own, or at the sional intent clear regarding the agency’s mits the rule to Congress and to GAO. request of the relevant committees or juris- options or lack thereof after enactment of a The authors intend information supplied in diction. joint resolution of disapproval. It will be the conformity with subsection 801(a)(1)(B)(iv) to Covered agencies and entities in the executive agency’s responsibility in the first instance encompass both agency-specific statutes and branch when promulgating the rule to determine the government-wide statutes and executive or- The authors intend this chapter to be com- range of discretion afforded under the origi- ders that impose requirements relevant to prehensive in the agencies and entities that nal law and whether the law authorizes the each rule. Examples of agency-specific stat- are subject to it. The term ‘‘Federal agency’’ agency to issue a substantially different utes include information regarding compli- in subsection 804(1) was taken from 5 U.S.C. rule. Then, the agency must give effect to ance with the law that authorized the rule § 551(1). That definition includes ‘‘each au- the resolution of disapproval. and any agency-specific procedural require- thority of the Government’’ that is not ex- Limitation on judicial review of congressional or ments, such as section 9 of the Consumer pressly excluded by subsection 551(1)(A)–(H). administrative actions Product Safety Act, as amended, 15 U.S.C. With those few exceptions, the objective was Section 805 provides that a court may not § 2054 (procedures for consumer product safe- to cover each and every government entity, review any congressional or administrative ty rules); section 6 of the Occupational Safe- whether it is a department, independent ‘‘determination, finding, action, or omission ty and Health Act of 1970, as amended, 29 agency, independent establishment, or gov- under this chapter.’’ Thus, the major rule de- U.S.C. § 655 (promulgation of standards); sec- ernment corporation. This is because Con- terminations made by the Administrator of tion 307(d) of the Clean Air Act, as amended, gress is enacting the congressional review April 18, 1996 CONGRESSIONAL RECORD — SENATE S3687 chapter, in large part, as an exercise of its ‘‘rule’’ in subsection 551(4) and excludes ury regulations issued pursuant to notice- oversight and legislative responsibility. Re- three subsets of rules that are modeled on and-comment rulemaking procedures, and gardless of the justification for excluding or APA sections 551 and 553. This definition of a most revenue rulings, revenue procedures, granting independence to some entities from rule does not turn on whether a given agency IRS notices, and IRS announcements. It does the coverage of other laws, that justification must normally comply with the notice-and- not matter that these later types of rules are does not apply to this chapter, where Con- comment provisions of the APA, or whether issued without notice-and-comments rule- gress has an interest in exercising its con- the rule at issue is subject to any other no- making procedures or that they are accorded stitutional oversight and legislative respon- tice-and-comment procedures. The definition less deference by the courts than notice-and- sibility as broadly as possible over all agen- of ‘‘rule’’ in subsection 551(4) covers a wide comment rules. In fact, revenue rulings have cies and entities within its legislative juris- spectrum of activities. First, there is formal been described by the courts as the ‘‘classic diction. rulemaking under section 553 that must ad- example of an interpretative rul[e]’’ within In some instances, federal entities and here to procedures of sections 556 and 557 of the meaning of the APA. See Wing v. Commis- agencies issue rules that are not subject to title 5. Second, there is informal rule- sioner, 81 T.C. 17, 26 (1983). The test is wheth- the traditional 5 U.S.C. § 553(c) rulemaking making, which must comply with the notice- er such rules announce a general statement process. However, the authors intend the and-comment requirements of subsection of policy or an interpretation of law of gen- congressional review chapter to cover every 553(c). Third, there are rules subject to the eral applicability. agency, authority, or entity covered by sub- requirements of subsection 552(a)(1) and (2). Most rules or other agency actions that section 551(1) that establishes policies affect- This third category of rules normally either grant an approval, license, registration, or ing any segment of the general public. Where must be published in the Federal Register similar authority to a particular person or it was necessary, a few special exceptions before they can adversely affect a person, or particular entities, or grant or recognize an were provided, such as the exclusion for the must be indexed and made available for in- exemption or relieve a restriction for a par- monetary policy activities of the Board of spection and copying or purchase before they ticular person or particular entities, or per- Governors of the Federal Reserve System, can be used as precedent by an agency mit new or improved applications of tech- rules of particular applicability, and rules of against a non-agency party. Documents cov- nology for a particular person or particular agency management and personnel. Where it ered by subsection 552(a) include statements entities, or allow the manufacture, distribu- was not necessary, no exemption was proof general policy, interpretations of general tion, sale, or use of a substance or product vided and no exemption should be inferred applicability, and administrative staff manu- are exempted under subsection 804(3)(A) from from other law. This is made clear by the als and instructions to staff that affect a the definition of a rule. This is probably the provision of section 806 which states that the member of the public. Fourth, there is a largest category of agency actions excluded Act applies notwithstanding any other provi- body of materials that fall within the APA from the definition of a rule. Examples in- sion of law. definition of ‘‘rule’’ and are the product of clude import and export licenses, individual Definition of a ‘‘major rule’’ agency process, but that meet none of the rate and tariff approvals, wetlands permits, The definition of a ‘‘major rule’’ in sub- procedural specifications of the first three grazing permits, plant licenses or permits, section 804(2) is taken from President Rea- classes. These include guidance documents drug and medical device approvals, new gan’s Executive Order 12291. Although Presi- and the like. For purposes of this section, source review permits, hunting and fishing dent Clinton’s Executive Order 12866 con- the term rule also includes any rule, rule take limits, incidental take permits and tains a definition of a ‘‘significant regu- change, or rule interpretation by a self regu- habitat conservation plans, broadcast li- latory action’’ that is seemingly as broad, latory organization that is approved by a censes, and product approvals, including ap- several of the Administration’s significant Federal agency. Accordingly, all ‘‘rules’’ are provals that set forth the conditions under rule determinations under Executive Order covered under this chapter, whether issued which a product may be distributed. 12866 have been called into question. The au- at the agency’s initiative or in response to a Subsection 804(3)(B) excludes ‘‘any rule re- thors intend the term ‘‘major rule’’ in this petition, unless they are expressly excluded lating to agency management or personnel’’ chapter to be broadly construed, including by subsections 804(3)(A)–(C). The authors are from the definition of a rule. Pursuant to the non-numerical factors contained in the concerned that some agencies have at- subsection 804(3)(C), however, a ‘‘rule of subsections 804(2)(B) and (C). tempted to circumvent notice-and-comment agency organization, procedure, or practice,’’ Pursuant to subsection 804(2), the Adminis- requirements by trying to give legal effect to is only excluded if it ‘‘does not substantially trator of the Office of Information and Regu- general statements of policy, ‘‘guidelines,’’ affect the rights or obligations of non-agency latory Affairs in the Office of Management and agency policy and procedure manuals. parties.’’ The authors’ intent in these sub- and Budget (the Administrator) must make The authors admonish the agencies that the sections is to exclude matters of purely in- the major rule determination. The authors APA’s broad definition of ‘‘rule’’ was adopted ternal agency management and organization, intend that centralizing this function in the by the authors of this legislation to discour- but to include matters that substantially af- Administrator will lead to consistency age circumvention of the requirements of fect the rights or obligations of outside par- across agency lines. Moreover, from 1981–93 chapter 8. ties. The essential focus of this inquiry is OIRA staff interpreted and applied the same The definition of a rule in subsection 551(4) not on the type of rule but on its effect on major rule definition under E.O. 12291. Thus, covers most agency statements of general the rights or obligations of non-agency par- the Administrator should rely on guidance applicability and future effect. Subsection ties.∑ documents prepared by OIRA during that 804(3)(A) excludes ‘‘any rule of particular ap- f time and previous major rule determinations plicability, including a rule that approves or from that Office as a guide in applying the prescribes rates, wages, prices, services, or 10TH ANNIVERSARY OF statutory definition to new rules. allowances therefore, corporate and financial CHERNOBYL structures, reorganizations, mergers, or ac- Certain covered agencies, including many ∑ Mr. LEVIN. Mr. President, on April ‘‘independent agencies,’’ include their pro- quisitions thereof, or accounting practices or posed rules in the Unified Regulatory Agen- disclosures bearing on any of the foregoing’’ 26, 1986, reactor number 4 at the V.I. da published by OMB but do not normally from the definition of a rule. Many agencies, Lenin Atomic Power Plant in submit their final rules to OMB for review. including the Treasury, Justice, and Com- Chernobyl near Kiev, Ukraine ex- Moreover, interpretative rules and general merce Departments, issue letter rulings or ploded. The explosion released a cloud statements of policy are not normally sub- other opinion letters to individuals who re- of radioactive steam into the atmos- quest a specific ruling on the facts of their mitted to OMB for review. Nevertheless, it is phere reported to contain about 200 the Administrator that must make the situation. These letter rulings are sometimes published and relied upon by other people in times more radio activity than was re- major rule determination under this chapter leased at Hiroshima and Nagasaki. whenever a new rule is issued. The Adminis- similar situations, but the agency is not trator may request the recommendation of bound by the earlier rulings even on facts The explosion took an enormous toll any agency covered by this chapter on that are analogous. Thus, such letter rulings on the people directly exposed to the whether a proposed rule is a major rule with- or opinion letters do not fall within the defi- radiation emitted from the plant. nition of a rule within the meaning of sub- in the meaning of subsection 804(2), but the Shortly after the explosion, Soviet offi- section 804(3). Administrator is responsible for the ultimate The different types of rules issued pursu- cials admitted to 31 deaths among reac- determination. Thus, all agencies or entities ant to the internal revenue laws of the Unit- tor operators and the team attempting covered by this chapter will have to coordi- ed States are good examples of the distinc- to contain the damage. Thousands of nate their rulemaking activity with OIRA so tion between rules of general and particular workers were eventually exposed at the that the Administrator may make the final, applicability. IRS private letter rulings and major rule determination. site. Customs Service letter rulings are classic ex- However, children have been the first Scope of rules covered amples of rules of particular applicability, among the general population to suffer The authors intend this chapter to be in- notwithstanding that they may be cited as terpreted broadly with regard to the type authority in transactions involving the same from the effects of the explosion at and scope of rules that are subject to con- circumstances. Examples of substantive and Chernobyl. Children are most suscep- gressional review. The term ‘‘rule’’ in sub- interpretative rules of general applicability tible to the radioactive iodine emitted section 804(3) begins with the definition of a will include most temporary and final Treas- from Chernobyl because of their active S3688 CONGRESSIONAL RECORD — SENATE April 18, 1996 thyroid glands. Researchers in the re- efforts to help Ukraine recover from reports an appropriations measure gion have seen a dramatic increase in the tragedy that occurred a decade ago specifying an amount in excess of a thyroid cancer among children. How- at Chernobyl.∑ 1995 base level amount for continuing ever, this is only the earliest problem f disability reviews. The allowable ad- to make itself known and one of the justment to the outlay cap amounts to SUBMITTING CHANGES TO THE few to be studied. The problem with es- $2.7 billion over the period 1996 to 2002. BUDGET RESOLUTION DISCRE- timating the toll on human life in the CBO estimates that the additional TIONARY SPENDING LIMITS, AP- region is that 10 years is a short period CDR’s flowing from the increased ap- PROPRIATE BUDGETARY AGGRE- of time to see all of the impacts. Ra- propriations would result in savings in GATES, AND APPROPRIATIONS dioactive fallout is only beginning to the Social Security, SSI Medicare and COMMITTEE ALLOCATION show its damaging effects on the popu- Medicaid programs of roughly $3.5 bil- lation. ∑ Mr. DOMENICI. Mr. President, sec- lion over the 7-year time frame.∑ At the time of the explosion, the pre- tion 103(c) of Public Law 104–121, the vailing winds carried much of the radi- Contract With America Advancement f ation north into Belarus and points be- Act, requires the chairman of the Sen- TRIBUTE TO PRINCE GEORGES yond. Excessive levels of radiation ate Budget Committee to adjust the COUNTY were recorded in Scandinavia, Great discretionary spending limits, the ap- Britain, the Mediterranean, and Alaska propriate budgetary aggregates and the ∑ Mr. SARBANES. Mr. President, I rise in the first weeks after the explosion. Appropriations Committee’s allocation to join the people of Maryland in cele- About 1000 acres of pine forest in the contained in the most recently adopted brating the tricentennial anniversary path of the first plume of the Budget Resolution—in this case, House of the founding of Prince Georges Chernobyl explosion died immediately Concurrent Resolution 67—to reflect County on April 23, 1696. Over the cen- as a result of direct fallout. A perma- additional new budget authority and turies the residents and leadership of nent 30-kilometer dead zone was estab- outlays for continuing disability re- Prince Georges County have dem- lished around the power station where views—CDR’s, as defined in section onstrated a remarkable commitment human habitation is still forbidden 201(g)(1)(A) of the Social Security Act. to preserving their rich historic legacy, today because of the high level of con- I hereby submit revisions to the non- while encouraging economic growth tamination. The Chernobyl area, defense discretionary spending limits and cultural enrichment. known as the Polissia region, was once for fiscal year 1996 contained in sec. 201 While evidence suggests that the first famous for its old-growth forests rich of House Concurrent Resolution 67 in human settlements in the area later to with mushrooms, berries and medicinal the following amounts: be called Prince Georges County ex- herbs. The community’s well-being re- isted over 10,000 years ago, the first volved around the health of the forest. 1996 documented visit to the region oc- Their dependency on the forest re- Budget authority: curred in 1608 when Captain John sulted in a very unique spirituality and Current nondefense discretionary spending Smith sailed up the Potomac River to limit ...... $219,668,000,000 culture in the region. After the acci- Adjustment ...... 15,000,000 map the Chesapeake Bay region and dent, residents were forced to leave Revised nondefense discretionary spending search for food for the fledgling James- limit ...... 219,683,000,000 their homes and move to completely Outlays: town Colony. Captain Smith paid only different environments. The inability Current nondefense discretionary spending a brief visit to this region which, less limit ...... 267,725,000,000 to return to the land they once knew Adjustment ...... 60,000,000 than a century later, would be home to and worries about possible exposure to Revised nondefense discretionary spending about 1,700 Marylanders. This rich land radiation now cause great stress among limit ...... 267,785,000,000 extending from Mattawoman Creek in the population. Two of Chernobyl’s I hereby submit revisions to the the south all the way to the Pennsylva- four units remain functional today. budget authority, outlays and deficit nia border was proclaimed a self-gov- Ukraine says it wants to completely aggregates for fiscal year 1996 con- erning county by the colonial Governor close Chernobyl, but cannot function tained in sec. 101 of House Concurrent in 1696, and was named Prince Georges without the energy it provides and can- Resolution 67 in the following County in honor of Prince George of not afford to properly close the plant, amounts: Denmark, husband of Princess Anne, even though radioactive material is heir to the throne of England. now threatening water tables in the 1996 Due to the abundance of fertile farm area. The American people should spe- Budget authority: land, agriculture dominated the local cifically lend their support to the ef- Current aggregate ...... $1,285,500,000,000 economy in colonial times, contribut- Adjustment ...... 15,000,000 forts to make the area around Revised aggregate ...... 1,285,515,000,000 ing to the livelihood of almost every Chernobyl as safe as possible. We Outlays: Prince Georges County inhabitant. Current aggregate ...... 1,288,100,000,000 should also work to improve the Adjustment ...... 60,000,000 Preservation of this important aspect health, economic and environmental Revised aggregate ...... 1,288,160,000,000 of colonial life has remained a priority Deficit: well-being of areas affected by the Current aggregate ...... 245,600,000,000 to the residents of Prince Georges Chernobyl disaster. The Chernobyl ex- Adjustment ...... 60,000,000 County who, through groups such as plosion has been a devastating event Revised aggregate ...... 245,660,000,000 the Accokeek Foundation, work to for the entire world. Ukrainian-Ameri- I hereby submit revisions to the 1996 maintain the National Colonial Farm, cans have worked strenuously to lend Senate Appropriations Committee displaying to all a continuum of Amer- support to their homeland. In my home budget authority and outlay alloca- ican farm life from the 1600’s through State, the Michigan Committee— tions, pursuant to sec. 302 of the Con- the 18th century. Chernobyl Challenge 1996 will be hold- gressional Budget Act, in the following Evidence of the importance of the aging events to commemorate the 10-year amounts: ricultural economy in southern Mary- anniversary of the explosion. On April land remains in many aspects of Prince 28, 1996, a commemorative program will 1996 Georges County life, including the be held at St. Josaphat Ukrainian Maryland higher education system. In Budge authority: Catholic Church in Warren, MI. The Current Appropriations Committee allocation $772,349,000,000 1856, in order to educate the sons of co- guest speaker will be Ukraine’s Ambas- Adjustment ...... 15,000,000 lonial farmers and to foster the ex- Revised Appropriations Committee allocation 772,364,000,000 sador to the United Nations, Anatoly Outlays: change of new ideas, the Maryland Ag- Zlenko. There will also be blood drives Current Appropriations Committee allocation $807,374,000,000 ricultural College—the first of its kind Adjustment ...... 60,000,000 held at the Ukrainian Cultural Center Revised Appropriations Committee allocation 807,434,000,000 in the Nation—was established in and at St. Michael Ukrainian Catholic Prince Georges County. Today we Church in cooperation with the Amer- Public Law 104–121 also requires me know the Maryland Agricultural Col- ican Red Cross, where volunteers will to adjust discretionary spending limits lege as the University of Maryland Col- bring to the public’s attention the on- for any future fiscal year—1997–2002— lege Park, the flagship institution of going tragedy in Ukraine. I salute their when the Committee on Appropriations the University of Maryland system. April 18, 1996 CONGRESSIONAL RECORD — SENATE S3689 While agriculture was the predomi- A FOND FAREWELL TO AN time to Turkey where they enforced nant force in the Prince Georges Coun- HISTORIC AIRCRAFT the northern Iraq no-fly zone as part of ty economy, the push for western ex- Ω Mr. KEMPTHORNE. Mr. President, combat-ready patrol along with other pansion in Maryland led to the growth on April 20, 1996, the last of the Idaho United States, British, French and of thriving commercial and trading Air National Guard’s F–4G ‘‘Wild Wea- Turkish coalition forces. centers such as Upper Marlboro, Laurel sels’’ will be retired. In the fall of 1995, the Idaho Air Na- and Bladensburg. Cotton mills, steam- As we bid farewell to this reliable tional Guard made Air Force history boats, and railroads resulted in in- workhorse that has served this Nation by flying the 50,000th aerial mission in creased commercial development, well for nearly three decades, let me support of Operation Provide Comfort strengthening the county’s ties with recognize the historic accomplish- II. Europe and other American colonies ments of the Wild Weasel and the su- I had the privilege of visiting the 124th Fighter Group in Turkey in early and leading to increased economic de- perb men and women of the 124th October, 1995. Once again I saw a well velopment. Fighter Group stationed at Gowen trained and well disciplined group of This early entrepreneurial spirit con- Field in Boise, ID, who have flown and men and women serving our Nation’s tinues to flourish and thrive today. maintained this remarkable aircraft. interests. I also saw the pride that Prince Georges County is now home to Since June 1991, the 124th has flown these men and women from Idaho had over 13,600 businesses which employ the F–4G Wild Weasel. It is a two-seat, in their venerable aircraft, the Wild over 223,700 workers. Major employers twin engine jet that can travel at more Weasel. And while there, I let them including Giant Food, United Parcel than twice the speed of sound. Armed know their State and country were Service, and Dimensions Health Cor- with radar and heat seeking missiles as proud of the 124th’s dedication and poration serve to make Prince Georges well as conventional bombs, the Wild commitment to peace in that troubled County a prime example of a large and Weasel is often the first aircraft to region. prospering business community, while enter combat and the last to leave. Its Mr. President, it is clear the men and the Prince Georges County Economic mission is to find and attack enemy women of the 124th Fighter Group have Development Corporation has been na- radar and missile sites—clearing the established themselves as one of the tionally recognized for its programs to path in a hostile environment for premier Guard units in the country. assist individual entrepreneurs and friendly fighters and bombers to enter And while I have some parochial pride small minority-owned businesses. enemy airspace. in making that statement, that dis- The county’s close proximity to the When the Wild Weasels first arrived tinction was hard-earned and well-de- District of Columbia has been another at Gowen Field, the 124th converted to served. factor in its evolution and maturation. the new mission and was combat ready Based on the Wild Weasel’s perform- Over the years towns and cities have in record time. ance in Saudi Arabia, the Secretary of sprung up to meet the needs of a grow- Six months later, these men and the Air Force came to Boise, ID in De- ing community of Federal employees women were called on to leave their cember 1993 to honor the 124th Fighter who increasingly choose to live outside homes, families and jobs to serve their Group. Secretary Sheila Widnall and the Federal city in suburban Maryland. Nation. Without a Presidential call-up, Maj. Gen. Philip G. Killey, Director of Towns such as Takoma Park, New these troops volunteered for service the Air National Guard, presented the Carrollton, Greenbelt, and District and became the first Air National men and women of the 124th Fighter Heights are home to the over 87,000 Guard unit activated for a combat mis- Group with the Air Force’s Outstand- Federal employees who work both in sion during peace time when they were ing Unit Award for their role as the the District and at the many Federal deployed to Saudi Arabia as part of Op- leading edge of force projection during installations which are located in mod- eration Southern Watch. peacetime, and the first to assume this ern Prince Georges County. The Group was fully integrated into new and difficult role for Air Reserve the Air Force Wing deployed to the re- Prince Georges County is today one forces. gion. They were given day to day mis- Mr. President, we all knew the time of the Nation’s largest and most vision responsibilities for patrolling brant subdivisions, winning widespread would come for the Wild Weasel to be southern Iraq and escorting coalition retired, and with the downsizing of ac- acclaim and national recognition for aircraft into enemy airspace that had its success in promoting diversity and tive and reserve units that has taken proven over time to be a hostile envi- place, there were concerns over future opening up the doors of opportunity for ronment. all of its citizens. This well-deserved missions for Gowen Field. As I visited the men and women of As we looked for a new mission for reputation as a national model is due the Idaho Guard stationed in Saudi Gowen Field, it was clear the men and to a strong sense of community and co- Arabia, I saw how effectively the active women of the Idaho Air National Guard operation among its residents and to duty and National Guard forces were had already presented their case. The enlightened and visionary leadership. working together to defend our Na- performance of the Wild Weasel was In the forefront of these efforts have tion’s interest. I also heard British and well-documented. The dependability of been our respected Governor and French pilots state they would not fly the Idaho Air Guard was second to former Prince Georges County Execu- over Iraq unless they knew the Wild none. Together, they had earned not tive Parris Glendening, two of my dis- Weasels were also in the sky to protect one, but two new missions to replace tinguished colleagues in the Congress, them against surface to air missiles. the Wild Weasels—the A–10’s and the Representatives STENY HOYER and AL- Maj. Gen. Darrell V. Manning praised C–130’s. BERT WYNN, and the present dynamic his men and women for their critical And while we say goodbye to this County Executive Wayne Curry. role in this international enforcement trusted airframe, we know the tradi- Such citizens and leaders throughout effort. He said, ‘‘They were the only tion of the Wild Weasel will live on history have guided Prince Georges trained organization in place that with the men and women of the Idaho County from a region of frontier wil- could perform this mission and we had Air National Guard where the motto is derness and rural plantations to to- the trained and motivated people re- ‘‘First Class or Not At All.’’∑ day’s modern urban communities and quired to succeed in this critical role.’’ ∑ Mr. MOYNIHAN. Mr. President, the advanced agricultural centers. Prince But this success required the support Dole/Roth amendment adopted earlier Georges County has adapted to meet of hundreds of personnel who per- today includes a provision designed to the changes wrought by the centuries, formed their duties to near perfection. address the problem of renunciation of while preserving the evidence of 300 The mechanics, refuellers, weapons U.S. citizenship by Americans who years of growth and progress. This tri- handlers, and every other member of move abroad in order to avoid U.S. tax- centennial celebration pays tribute to this team—and I mean team—contrib- ation. On April 6, 1995, shortly after the rich legacy of our Maryland ances- uted to the effectiveness of the 124th this issue first came to light, I intro- tors and bears testament to the limit- Fighter Group. duced S. 700, a bill to close the loophole less promise and potential of Prince The 124th was again called to service in the Tax Code that permits expatri- Georges County.∑ in Operation Provide Comfort—this ates, as they have come to be called, S3690 CONGRESSIONAL RECORD — SENATE April 18, 1996 from evading U.S. taxation. I said here a hearing to review further the issues human rights, and so the expatriation on the floor that the Senate would act raised by expatriation. At our hearing, provision was not included in the con- expeditiously to end this abuse, and we heard criticisms of some technical ference report. The conferees instead would act in a careful and judicious aspects of the provision, as well as tes- adopted a provision directing the Joint manner to do so. The amendment be- timony raising the issue of whether the Committee on Taxation to study the fore us today, which includes a modi- provision comported with Article 12 of matter and report back. fication of S. 700, would do just that. the International Covenant on Civil This decision, which was the only Although expatriation to avoid taxes and Political Rights, which the United prudent one at the time, met with occurs infrequently, it is a genuine States ratified in 1992. Section 2 of Ar- some not very pleasant criticism in the abuse. The Tax Code currently con- ticle 12 states: ‘‘Everyone shall be free Senate. This was surprising, since I be- tains provisions, dating back to 1966, to leave any country, including his lieved it was axiomatic that govern- intended to prevent tax-motivated re- own.’’ ment should proceed with great care linquishment of citizenship, but these Robert F. Turner, a professor of when dealing with human rights—par- provisions have proven difficult to en- international law at the U.S. Naval ticularly the rights of persons who are force and are easily evaded. One inter- War College, testified that the expa- despised. The persons affected by the national tax expert described avoiding triation provision was problematic expatriation proposal—millionaires them as ‘‘child’s play.’’ Individuals under the Covenant because it con- who renounce their citizenship for with substantial wealth can, by re- stituted a legal barrier to the right of money—certainly fall into that cat- nouncing U.S. citizenship, avoid paying citizens to leave the United States. The egory. State Department’s legal experts dis- taxes on gains that accrued during the Since that time, a general consensus agreed, as did two other outside ex- period that they acquired their has developed that the provision does perts who provided written opinions to wealth—and while they were afforded not conflict with the obligations of the the Committee: Professor Paul B. the many benefits and advantages of United States under international law. Stephan III, a specialist in both inter- U.S. citizenship. Moreover, even after Professor Hannum, after receiving ad- national law and tax law at the Univer- renunciation, these individuals are per- ditional and more specific information sity of Virginia School of Law; and Mr. mitted to keep residences and reside in about the expatriation tax, wrote a Stephen E. Shay, who served as Inter- the United States for up to 120 days per second letter of March 31, 1995 stating national Tax Counsel at the Depart- year without incurring U.S. tax obliga- that he was now ‘‘convinced that nei- ment of the Treasury in the Reagan ad- tions. Indeed, certain wealthy individ- ther its intention nor its effect would ministration. uals have renounced their U.S. citizen- violate present U.S. obligations under ship and avoided their tax obligations Given this division in authority, it seemed clear that the Senate should international law.’’ while still maintaining their families In the interim, there has been time and homes in the United States. They not act improvidently on the matter. Genuine questions of human rights to consider other approaches to the need only take care to avoid being in problem. On June 1, 1995, the Joint the United States for more than 120 under international law, and the sol- emn obligations of the United States Committee on Taxation published its days each year. report on the tax treatment of expa- Meanwhile, ordinary Americans who under treaties, had been raised. We triation. Shortly thereafter, on June 9, remain citizens continue to pay taxes therefore sought the views of other ex- 1995, Chairman ARCHER introduced an on their gains when assets are sold or perts. Opinions concluding that the ex- expatriation bill that adopted a dif- when estate taxes become due at death. patriation provision did not violate ferent approach than S. 700, the bill in- I regret to say that the expatriation international law were received from troduced by the Senator from New issue has been the subject of more con- Professor Detlev Vagts of Harvard Law York. The Archer bill, rather than im- troversy than it probably deserves, so School and Professor Andreas F. pose a tax on accrued gains, would in the interest of setting the record Lowenfeld of New York University build on the current law approach of straight, I will briefly review the his- School of Law. The State Department taxing only a portion of the income of tory of its consideration in the Con- issued a lengthier analysis supporting an expatriate received during the 10- gress. On February 6, 1995, the Presi- the legality of the provision, and the year period following expatriation. A dent announced a proposal to address American Law Division of the Congres- version very similar to the Archer bill expatriation in his fiscal year 1996 sional Research Service reached a like was included in House-passed version of budget submission. Three weeks later, conclusion. However, there were dis- the Balanced Budget Act of 1995. on March 15, 1995, during Finance Com- senting views, most notably the power- mittee consideration of legislation to ful opinion of Professor Hurst Hannum We held a second Finance Committee restore the health insurance deduction of the Fletcher School of Law and Di- hearing on expatriation on July 11, 1995 for the self-employed, I offered a modi- plomacy at Tufts University, who first to consider the two competing ap- fied version of the administration’s ex- wrote to me on March 24, 1995. proaches. Soon thereafter, the Senate patriation tax provision as an amend- This is where things stood when the in the Senate-passed version of the Bal- ment to the bill. My amendment would House-Senate conference met on March anced Budget Act of 1995 adopted the have substituted the expatriation pro- 28, 1995. Although the weight of author- accrued gains approach from my bill, posal for the repeal of minority broad- ity appeared to support the validity of rather than the House alternative, as cast tax preferences as a funding the provision under international law, the superior response to the problem. source for the bill. The amendment very real questions remained. Yet the During the conference on the Bal- failed in the face of united opposition underlying bill had to move at great anced Budget Act of 1995, the conferees by members of the majority on the speed. As my colleagues well know, the opted for the House approach. This Committee. The vote against the legislation restoring the health insur- was, I believe, a serious error. Fortu- amendment was 11–9. ance deduction for the self-employed nately, that version did not become Subsequently, Senator BRADLEY of- for calendar year 1994 needed to be law because the President vetoed the fered the expatriation provision as a passed and signed into law well in ad- conference agreement. The conferees free-standing amendment, with the vance of the April 17, 1995 tax filing on the pending bill will be faced with revenues it raised to be dedicated to deadline, so that self-employed persons the same choice. The House version of deficit reduction. Senator BRADLEY’s would have time to prepare and file the expatriation provision is included amendment passed by voice vote. That their 1994 tax returns. The conference in the House-passed companion to the is how the expatriation tax provision committee had to decide immediately Kassebaum-Kennedy bill. We ought not was added to the bill that came before whether to retain the expatriation pro- repeat the mistake made in the Bal- the Senate. vision; there was no time for further anced Budget Act. After the Finance Committee re- inquiry into its validity under inter- I am convinced that the House ap- ported the bill, but before full Senate national law. We accordingly chose not proach has serious defects and would action and before our conference with to risk making the wrong decision with fail to eliminate the very substantial the House, the Finance Committee held respect to international law and tax advantages that currently accrue April 18, 1996 CONGRESSIONAL RECORD — SENATE S3691 to those willing to give up their citi- practice under current law. Likewise endar be dispensed with, the morning zenship. Under the House proposal, sev- all the proposals considered by the hour deemed to have expired, and the eral categories of taxpayers would con- Senate, including my bill S. 700, used time for the two leaders reserved for tinue to owe no tax at all should the February 6, 1995 as their effective date. their use later in the day; that there IRS be unable to prove a tax avoidance The House conferees on the self-em- then be a period for morning business motive for expatriating. As under cur- ployed bill had proposed moving the ef- until the hour of 12 noon, with Sen- rent law, taxpayers who are patient fective date forward to March 15, 1995, ators permitted to speak therein for up would avoid all tax on accrued gains by the date of Senate Finance Committee to 5 minutes each, with the first 75 simply holding their assets for 10 action on the provision. But the two minutes under the control of Senator years. A wealthy expatriate in need of chairmen of the tax-writing commit- COVERDELL, or his designee, and the funds during the 10-year period could tees ultimately—and wisely—resisted last 45 minutes under the control of simply borrow money using his or her that overture, and issued a joint state- Senator DASCHLE, or his designee, with assets as security. Since the income ment giving notice that February 6, 10 minutes of that time reserved for from foreign assets generally would re- 1995 would be the effective date of any Senator MURRAY; further, that at the main exempt as under current law, legislation affecting the tax treatment hour of 12 noon the Senate begin con- clever tax practitioners would continue of those who relinquish citizenship. sideration of Calendar No. 201, S.J. Res. to find ways to convert U.S. assets into Now that the Senate has had ade- 21, regarding a constitutional amend- foreign assets in order to avoid tax on quate opportunity to fully explore the ment to limit congressional terms. the income earned during the 10-year best way to address the expatriation The PRESIDING OFFICER. Without period. problem, it is time to act. As the first objection, it is so ordered. The House approach also would be Senator to have introduced legislation f destined to fail because it relies on the to end tax avoidance by so-called expa- PROGRAM voluntary payment of taxes by people triates, and as one who urged that it be who have moved beyond the reach of acted upon by the Senate expedi- Mr. ABRAHAM. Mr. President, for U.S. courts. In contrast, the Senate tiously, I am pleased that the Dole/ the information of all Senators, the version would collect tax while the in- Roth amendment incorporates the ex- Senate will convene at 10 a.m. Shortly dividual is still subject to the taxing patriation changes I have favored. I after convening, the Senate will con- power of the United States, which is hope that the conferees will retain the sider a sense-of-the-Senate resolution surely a more administrable approach. superior Senate expatriation provision, regarding the anniversary of the Okla- A separate objection to the House and that it will be enacted as soon as homa City bombing. The Senators are bill is that it would unilaterally over- possible.∑ asked to be on the floor promptly at 10 ride existing tax treaties. In its report f a.m., as there will be a brief period of on expatriation, the Joint Tax Com- silence to remember the tragedy. mittee staff stated that the House ver- AMENDING THE INDIAN SELF-DE- Following morning business, the Sen- sion may ultimately require that as TERMINATION AND EDUCATION ate will then begin consideration of the many as 41 of our 45 existing tax trea- ASSISTANCE ACT term limits legislation. No rollcall ties be renegotiated and that it might Mr. ABRAHAM. Mr. President, I ask votes will occur during Friday’s ses- be necessary for the United States to unanimous consent that the Senate sion. forego benefits to accomplish renegoti- proceed to the immediate consider- When the Senate completes debate ation. This is a serious matter. ation of H.R. 3034 just received from Friday, it will resume consideration of Article VI of our Constitution states: the House. the term limits legislation on Monday. . . . [A]ll Treaties made, or which shall be The PRESIDING OFFICER. The No rollcall votes will occur during made, under the authority of the United clerk will report. Monday’s session. However, Senators States, shall be the supreme Law of the The assistant legislative clerk read are encouraged to debate the legisla- Land. as follows: tion and offer any amendments during Further, our treaties come into being A bill (H.R. 3034) to amend the Indian Self- Friday’s and Monday’s sessions of the through a singular exacting sequence. Determination and Education Assistance Act Senate. The Senate may also be asked Treaties are entered into by the United to extend for two months the authority for to turn to any other legislative items States with other nations either di- promulgating regulations under the Act. that can be cleared for action. rectly or through adherence to a com- The PRESIDING OFFICER. Is there f mon document. They are signed by a objection to the immediate consider- member of the executive branch. ation of the bill? ORDER FOR ADJOURNMENT Thereafter, the Senate of the United There being no objection, the Senate Mr. ABRAHAM. Mr. President, if States must by resolution, two-thirds proceeded to consider the bill. there is no further business to come be- of the Senators present concurring Mr. ABRAHAM. Mr. President, I ask fore the Senate, I now ask that the therein, give its advice and consent to unanimous consent that the bill be Senate stand in adjournment under the ratification. This advice and consent deemed read a third time and passed, previous order following the remarks of having been given—by an extraor- that the motion to reconsider be laid Senator LAUTENBERG. dinary majority—the President then upon the table, and that any state- The PRESIDING OFFICER. Without ratifies and confirms the treaty in an ments relating to the bill appear at the objection, it is so ordered. instrument of ratification. Only at appropriate place in the RECORD. Mr. LAUTENBERG addressed the that point shall the said treaty become The PRESIDING OFFICER. Without Chair. ‘‘the supreme Law of the Land.’’ Mat- objection, it is so ordered. The PRESIDING OFFICER. The Sen- ters that survive this singularly exact- The bill (H.R. 3034) was deemed read ator from New Jersey is recognized. ing process should not be abrogated the third time and passed. f lightly. f One final point, of utmost impor- TOXIC WASTE CLEANUP tance. During the time we have taken ORDERS FOR FRIDAY, APRIL 19, Mr. LAUTENBERG. Mr. President, at to write this law carefully and well, 1996 this moment, though the hour is late, billionaires have not been slipping Mr. ABRAHAM. Mr. President, I ask and I apologize to those who are incon- through the loophole and escaping tax unanimous consent that when the Sen- venienced while I make my remarks, by renouncing their citizenship. The ate completes its business today, it this is a topic of great importance to President announced the original pro- stand in adjournment until the hour of me and my home State of New Jersey, posal on February 6, 1995 and made it 10 a.m., on Friday, April 19; further, and a number of communities across effective for taxpayers who initiate a that immediately following the prayer, the country—that is, the cleanup of renunciation of citizenship on or after the Journal of proceedings be deemed toxic waste. that date. This was an entirely appro- approved to date, no resolutions come Mr. President, 73 million Americans priate way to put an end to an abusive over under the rule, the call of the cal- live near toxic waste sites. That is S3692 CONGRESSIONAL RECORD — SENATE April 18, 1996 about one of every four of our citizens. It is important, in my view, to pass a tinue to meet Federal and State clean- Many people think of hazardous waste Superfund reform bill. Many of us in ups standards, and would allow States as a problem of ugly dump sites that the Congress have been working long to impose their own liability and harm a community’s appearance and and hard, and in a bipartisan way, to cleanup requirements. I am pleased by property values. But it is far more than develop reform legislation, and to this progress and hope that it contin- that, Mr. President. Toxic waste is a make needed improvements in the pro- ues. Of course I would like to see it huge threat to public health. By con- gram. continue. taminating our drinking water, our air As ranking minority member of the At the same time, I remain deeply and our soil, dangerous waste contrib- Senate’s Superfund Subcommittee, I concerned about provisions in the utes to a wide range of health prob- have worked with many of my col- chairmen’s latest proposal that would lems, and these include cancer, birth leagues on this issue for several years dramatically reduce the responsibility defects, cardiovascular problems, im- now, especially my distinguished col- of polluters to clean up their own mune disorders, and even something as league from Montana, Senator BAUCUS, waste. simple and obvious as dermatitis. the ranking member of the Environ- Before I go further, Mr. President, let Now, Mr. President, it is difficult to ment and Public Works Committee. me emphasize that Senators CHAFEE, say how many people are harmed be- Last congress, after a long and ardu- SMITH, BAUCUS and I share many goals. cause of exposure to toxic waste. But ous process involving all affected par- And I know every one of these senators the number is considerable. Unfortu- ties, we developed a bill that would is genuinely committed to making nately, New Jersey, where there are have made comprehensive changes in progress. We all want to reduce unnec- more Superfund sites than any other the Superfund program. essary litigation, and make Superfund State, is being hit especially hard. Re- Our bill would have made Superfund more fair. Yet, I believe the approach cent studies found that in all but one fairer, more efficient, and less costly. embodied in their legislation has seri- of New Jersey’s 21 counties, cancer It addressed every major issue raised ous flaws. rates and areas around hazardous waste by those affected by Superfund, and Their legislation essentially would sites exceeded the national average. provided relief on every front. eliminate polluters’ liability for all ac- Studies from other parts of the coun- It would have fostered greater and tions causing pollution that took place try also suggest that those living near earlier community involvement in before 1980. toxic waste sites have suffered dis- cleanup decisions. It speeded up clean- By letting so many polluters off the proportionately from serious health ups and made them more efficient. It hook entirely, the proposal would fun- problems. Beyond the public health would have slashed private litigation damentally alter a basic principle of problems associated with toxic waste, costs in half, and established a mecha- the Superfund Program: the principle these sites also have serious economic nism to efficiently resolve disputes in- that, in general, polluters—not tax- effects on local communities. They dis- volving polluters, their insurers, and payers—should pay for cleaning up courage investment and occupy other- the Government. their own toxic waste. wise valuable real estate that could be It allowed qualified States to play a Mr. President, abandoning this prin- used for productive economic activity. greater role in remedy selection and ciple would have serious consequences. If we do not clean up these sites, we are cleanup of sites, including federally- It would lead to fewer cleanups. It depriving communities of good jobs owned facilities. It promoted the vol- and local tax revenues. untary cleanup and economic redevel- would impose huge new burdens on Mr. President, Congress created the opment of contaminated properties. State and local governments, which Superfund Program in 1980, largely to And it provided much-needed relief to would be left holding the bag for clean- respond to health problems, to save lenders, small businesses, municipali- ing up hundreds, if not thousands, of lives and protect and restore the envi- ties and others who have been caught sites. And it would mean, in the end, ronment. The program was designed to up in the liability scheme. that many fewer toxic waste sites will ensure that toxic waste sites were Unfortunately, despite very broad get cleaned up. cleaned up promptly and that polluters support from environmentalists, indus- Mr. President, Senator BAUCUS and I, took responsibility for cleaning them try, small businesses, State and local along with the administration, have up. governments, communities, lenders, developed a different approach to re- Unfortunately, as many know, the and others involved in Superfund, this forming Superfund liability. I ask Superfund Program got off to a very reform bill was killed in the waning unanimous consent that an outline of slow start for a variety of reasons, in- days of the 103d Congress. And so, last our proposal be printed in the RECORD. cluding a lack of Presidential commit- year, a new effort began to reauthorize I hope my colleagues will take a close ment. Many cleanups were delayed. the Superfund Program. look at it. However, in recent years, the program Senator SMITH, our new chairman of There being no objection, the mate- has turned around. Under the Clinton the Superfund Subcommittee, intro- rial was ordered to be printed in the administration, toxic waste cleanups duced a proposal last October. RECORD, as follows: have been 20 percent faster, 25 percent And for the past few months, Senator LIABILITY COUNTERPROPOSAL TO S. 1285 cheaper, and there is real progress in CHAFEE, chairman of the Committee, I. RELIEF FOR SMALL BUSINESS cleaning up sites. Although we have a and Senators BAUCUS, SMITH, and my- A. Exempt all businesses which are liable long way to go, many more sites are self have spent countless hours trying solely under CERCLA sections 107(a)(3) or being cleaned up, and delays have been to resolve our differences and produce a (a)(4) as generators or transporters for ac- reduced significantly. bill that can enjoy broad, bipartisan tivities occurring wholly before 1/1/96, where Like any program, Mr. President, support. Representatives from the Clin- the party seeking the benefit of the exemp- Superfund has its share of problems ton administration have worked with tion demonstrates that the business (includ- and critics. And there are many legiti- us virtually every day to support this ing its parents, subsidiaries and other affili- ates): mate concerns that must be addressed. effort. 1. had annual gross revenues of no more We do need to speed cleanups, reduce Last month, Senators CHAFEE and than $2 million as reported to the Internal unnecessary litigation, and make the SMITH introduced another measure Revenue Service for each of the preceding program work more efficiently. that proposed a new liability scheme three years; Still, Mr. President, there has been and made some other changes. 2. has 25 or fewer employees; tremendous progress. And President Mr. President, I remain hopeful that 3. provides full cooperation, assistance and Clinton and EPA Administrator Carol we can reach an agreement on com- facility access in connection with the imple- Browner deserve real credit for that. prehensive reform, and note that the mentation of response actions at the facility; Unfortunately, just as the program latest bill introduced by Senators and 4. is not affiliated with any other party lia- has picked up steam, the Congress has CHAFEE and SMITH—apart from the pro- ble for response costs at the facility (through permitted its funding mechanism to visions on liability—include improve- any direct or indirect family relationship, or expire. This funding source simply ments over the earlier draft. any contractual, corporate, or financial rela- must be reestablished, or the whole For example, the new measure would tionship other than a contract for the treat- program could be threatened. require that Superfund cleanups con- ment or disposal of hazardous substances) April 18, 1996 CONGRESSIONAL RECORD — SENATE S3693 unless the President determines: 2. contributed only MSW or MSS; settlements shall include premia that cover 1. that the party seeking the exemption 3. have complied with all requests made the risks of, among other things, cost over- has not complied with all requests made under authority of CERCLA section 104(e); runs. Recovery from these settlements will under authority of CERCLA section 104(e); or and be used to reduce the liability of other set- 2. that the materials containing hazardous 4. provides full cooperation, assistance and tling responsible parties. substances generated or transported by the facility access in connection with the imple- VI. FULL FUNDING—MAINTAINING THE PACE OF business have contributed significantly or mentation of response actions at the facility. CLEANUP could contribute significantly to the costs of B. Other MSW contributors: Exempt all A. Orphan share includes shares of respon- the response or to natural resource damages. other generators and transporters of MSW or B. Funding. Shares of responsibility attrib- MSS (including federal government entities) sibility for response costs specifically attributed by an allocator to the exempt small at NPL sites for activities occurring wholly utable to: 1. identified but insolvent or defunct allo- businesses that do not also qualify for the de prior to 1/1/96. The party seeking the exemp- cation parties who are not affiliated with micromis exemptions in III.A and IV. shall tion must demonstrate that: any other person liable for response costs at be included in the orphan share, subject to 1. it is liable solely under CERCLA sec- the facility, through any direct or indirect the provisions of section VI. tions 107 (a)(3) or (a)(4) for activities occur- C. Recognition of Limited Ability to Pay ring prior to 1/1/96; familial relationship, or any contractual, of Businesses with Fewer than 100 Employ- 2. a) it contributed only MSW or MSS; or corporate, or financial relationship; 2. the ability to pay settlement ‘‘delta’’; ees: For parties not exempt under I.A. above, b) it contributed predominantly MSW or 3. small businesses that are exempt under EPA will implement expedited ability to pay MSS—in which case the exemption under section I.A. and that do not also qualify for settlements for those small businesses with this paragraph shall apply only to the por- the exemptions described in sections III.A. fewer than 100 employees, including small tion of its waste that is demonstrated by the IV.; business owner or operators that dem- generator or transporter to be solely MSW or 4. municipal owners and operators for onstrate a limited ability to pay. MSS, and the generator or transporter shall become an allocation party, or an expedited whom liability is limited under section II.A., II. RELIEF FOR MUNICIPAL OWNERS AND to the extent that their shares of responsibil- OPERATORS settlement party, and shall pay its allocated share for the waste that is not demonstrated ity exceed this liability limitation; and A. Liability Cap: 5. the shares of responsibility attributable to be MSW or MSS; 1. For a municipality with a population of 3. it has complied with all requests under to parties exempt under section III.B. greater than 100,000 that is or was an owner B. Responsibility for hazardous substances authority of CERCLA section 104(e); and or operator of a landfill listed on the NPL 4. it provides full cooperation, assistance that the allocator cannot attribute to any that contains predominantly municipal solid and facility access in connection with the identified party shall be distributed among waste (MSW) or municipal sewage sludge implementation of response actions at the the allocation parties, including the orphan (MSS), its response costs liability at the fa- facility. share. cility shall not exceed the cost of closing the For activities occurring after 1/1/96, no gen- C. The bill shall authorize up to $450 mil- facility under RCRA Subtitle D. erator or transporter that otherwise dem- lion per year for orphan share payments 2. For a municipality with a population of onstrates that it satisfies criteria (1)–(4) funded under para. A. fewer than 100,000 that is or was an owner or D. The amount of funding available for or- above shall be liable for more than 10 percent operator of a landfill listed on the NPL that phan share payments in any fiscal year: of total response costs at a facility listed on contains predominantly municipal solid 1. shall not exceed the amounts that have the NPL, provided its waste was disposed of waste (MSW) or municipal sewage sludge been specifically appropriated by Congress pursuant to a qualified household hazardous (MSS), its response costs liability at the fa- for that purpose in the fiscal year in which waste collection program. Where more than cility shall not exceed the lesser of the cost the claim for payment is presented; and one generator or transporter qualifies under of closing the facility under RCRA Subtitle 2. must be in excess of the President’s this paragraph, the 10% limitation shall D or 10% of the total response costs for re- budget request for Superfund (excluding apply to the aggregate liability for response mediation of the site; those amounts identified in section VI.A.) or costs of all such generators and transporters. unless the President determines that the the budget for the Superfund program as es- C. Funding: The allocator shall not assign municipal owner or operator seeking the li- tablished in a Budget Reconciliation Act a share of responsibility to the parties ex- ability limitation does not meet the follow- signed by the President (excluding those empt under paragraph III.A. above. Shares of ing criteria: amounts identified in section VI.A.). responsibility attributed to parties exempted 1. the municipality has complied with all Shortfall: If claims for such payments ex- under paragraph III.B. above shall be in- requests made under authority of CERCLA ceed available funds, any deficit shall be al- cluded in the allocation and shall be attrib- section 104(e); located pro rata among the parties present- uted to the orphan share, subject to the pro- 2. the municipality provides full coopera- ing the claim in that fiscal year. If funds ap- visions of para. VI below. tion, assistance and facility access in con- propriated for this purpose are not fully obli- nection with the implementation of response IV. EXEMPT DE MICROMIS CONTRIBUTORS OF gated in the fiscal year appropriated, the actions at the facility; HAZARDOUS WASTE funds shall be carried over and made avail- 3. the municipality, during its period of A. Exempt all generators and transporters able for claims in subsequent years. ownership or operation, accepted predomi- (including federal government entities) who VII. OTHER ISSUES nantly MSW or MSS, and any materials, contributed to a site 110 gallons or less of A. NPL Listing Cap: Delete the cap in NPL other than MSW or MSS, containing hazard- liquid materials containing hazardous sub- listings. ous substances accepted at the site do not stances or 200 pounds or less of solid mate- B. Burden of proof: For each liability ex- contribute significantly to the costs of the rials containing hazardous substances wholly emption or limitation described in this docu- response or to natural resource damages; and before 1/1/96, provided that: ment, the party claiming the benefit of the 4. for activities occurring after 1/1/96, the 1. the party has complied with all requests exemption or limitation or seeking to estab- municipality had a qualified household haz- made under authority of CERCLA section lish the availability of an orphan share pay- ardous waste collection program in effect, 104(e); and ment shall demonstrate the applicability of and accepted for disposal only materials that 2. the party provides full cooperation, as- that exemption or limitation. sistance and facility access in connection it was permitted to accept by law. C. Related allocation issues: Establish an B. Funding: Shares of responsibility attrib- with the implementation of response actions allocation process to enable PRPs to reach uted to municipal owners or operators in ex- at the facility, settlement with the United States based on cess of the amount specified under II.A. unless the President has determined that their allocated shares and to provide a mech- above shall be included in the orphan share, the waste contributed significantly or could anism for determining the Trust Fund pay- subject to the provisions of para. VA below. contribute significantly to the costs of re- ments provided for above. The allocation C. Recognition of Municipalities’ Limited sponse or natural resource restoration. process would have the following key fea- Ability to Pay: EPA will implement expe- B. Funding: The allocator shall not assign tures: dited ability to pay settlements for all mu- a share of responsibility to exempt de 1. Allocations shall be required for sites nicipalities which demonstrate a limited micromis parties. with 2 or more potentially responsible par- ability to pay. V. EXPEDITED DE MINIMIS SETTLEMENTS ties, for which III. EXEMPT GENERATORS AND TRANSPORTERS The government will provide expedited set- a. a remedial action is selected after enact- OF MUNICIPAL SOLID WASTE tlements to any small volume (de minimis) ment; and A. Small MSW contributors: Exempt all waste contributors (including federal govern- b. a remedial action was selected prior to generators and transporters of MSW or MSS ment entities). A ‘‘small volume’’ is pre- enactment, if requested by the parties per- that are businesses with fewer than 100 em- sumed where the President estimates the forming the remedial action. ployees, residential homeowners, and small volume to be 1% or less of the total waste at 2. The Administrator shall have discretion non-profit organizations who: the site. The President may determine that to provide allocations at other sites. 1. are liable solely under CERCLA sections site specific conditions indicate that another 3. Allocations shall not be required for 107 (a)(3) or (a)(4) as generators or transport- amount constitutes a small volume. To pro- sites where there has been a previous adju- ers; vide finality for these settling parties, such dication or settlement determining liability S3694 CONGRESSIONAL RECORD — SENATE April 18, 1996 of all parties or the allocated shares of all a series of exemptions and limitations We have shared this proposal with parties, or at sites where all parties are lia- on liability for small businesses, con- our Republican colleagues, and we hope ble under sections 107(a)(1) and (2). tributors of small amounts of waste, they will view it favorably. If we work 4. Allocations under 1.b. and 2. shall not be construed to require the payment of orphan municipalities, charities, lenders, and together, we believe there is still time shares, to confer reimbursement rights, or to other parties. left in this session of Congress for the permit the reopening of a settlement. The proposal would exempt as many full Senate to consider a bill and work D. Additional exemptions, limitations and as 30,000 small businesses from with our colleagues in the House of clarifications: Liability exemptions, limita- Superfund liability. It would limit the Representatives to approve a biparti- tions and clarifications should be provided, liability of up to 525 municipal owners san, consensus bill the President can as appropriate, for the following additional and operators of municipal landfills. It sign. parties: lenders; fiduciaries; bona fide pro- would exempt countless individuals, We believe our proposal is a serious spective purchasers; inheritors of real property; federal, state and local governments businesses, and small nonprofit organi- effort to address concerns raised by our who own rights-of-way or issue business li- zations that otherwise would be liable Republican colleagues. It also has the censes; federal agencies providing disaster as a generator or transporter of munic- strong endorsement of the Adminis- relief; contiguous landowners; religious, ipal solid waste. trator of the Environmental Protection charitable, scientific or educational organi- It would exempt cities whose involve- Agency, Carol Browner, and the White zations who receive property as gifts; owners ment is due solely to household trash House. of railroad spurs; and recyclers. created by its citizens. And it would Mr. President, I believe that this pro- E. Settlements: any settlement or judgment exempt approximately 10,000 contribu- posal represents the best hope of secur- signed or entered prior to date of enactment shall not be affected by any exemption or tors of small amounts of waste. ing a bipartisan Superfund bill this limitation set forth above. This means that parties like the Girl year that not only will be approved by F. Fee Shifting: Any party who seeks to Scouts, local taxpayers, pizza parlors, the Senate, but which will be signed bring a non-liable party or a party who has and churches will be protected from into law. And I remain committed to fully resolved its liability to the United frivolous lawsuits—suits brought by working hard with my colleagues to States into the allocation system will be re- polluters who have tried to force inno- reach an agreement. sponsible for paying the attorney fees and cent parties to bear cleanup costs, sim- Mr. President, we can have a other costs of the nominated party for par- ply because they have sent ordinary ticipating in the allocation system. Any Superfund program that is both more party who sues another party during the al- household garbage to Superfund sites. fair and more efficient at protecting location moratorium or who sues a party At the same time, Mr. President, our public health and the environment. To who has fully settled its liability to the proposal would reaffirm the principle accomplish this goal, we need to con- United States will be responsible for paying that polluters should pay. It would en- tinue working together in a coopera- that party’s attorney fees and other litiga- sure the availability of funding for tive fashion. tion costs. more cleanups. And it would ensure Seventy-three million Americans in G. Small business ombudsman: The Adminis- that those responsible for pollution are every State of the country are count- trator shall establish a small business assist- held accountable for cleaning up the ance section within EPA’s small business ing on us to get the job done. I hope we ombudsman office, to act as a clearinghouse mess they have made. will not let them down. of information for small businesses regard- It is important to provide relief to With that I conclude my remarks. I ing CERCLA. The office will also provide many who have been swept into the yield the floor. general advice and assistance to small busi- Superfund system unfairly. But it is f nesses regarding the allocation and settle- equally critical that toxic waste sites ment process, but will not give legal advice not be left untended as a result, or ADJOURNMENT UNTIL 10 A.M. or participate in the allocation process. passed off as a burden to local tax- TOMORROW Mr. LAUTENBERG. Mr. President, payers. we think our proposal addresses many Mr. President, I remain committed The PRESIDING OFFICER. Under of the concerns that have been raised and hopeful about the possibility of en- the previous order, the Senate stands about Superfund’s liability system. It acting a Superfund bill in this Con- in adjournment until 10 a.m. Friday, would increase fairness, increase effi- gress. I also want to express my appre- April 19, 1996. ciency, and reduce transaction costs. ciation to Senators SMITH and CHAFEE Thereupon, the Senate, at 11:15 p.m., At the same time, it would protect for their acknowledgment that the adjourned until Friday, April 19, 1996, both the pace and protectiveness of only way to get Superfund reform this at 10 a.m. cleanups. year is through a bipartisan effort. f It would provide greater fairness and That kind of cooperation is part of a efficiency by establishing an allocation long tradition at the Environment and NOMINATIONS system under which those responsible Public Works Committee, and it has re- Executive nominations received by for pollution pay only their fair share. sulted in landmark legislation protect- the Senate April 18, 1996: Under this system, they would be able ing our citizens and environment. It to do this quickly and without litiga- will also be necessary if President Clin- THE JUDICIARY ARTHUR GAJARSA, OF MARYLAND, TO BE U.S. CIRCUIT tion. ton is to sign a reform proposal into JUDGE FOR THE FEDERAL CIRCUIT, VICE HELEN WILSON Second, the proposal increases fair- law. NIES, RETIRED. ness and efficiency, and cuts down on Chairman CHAFEE has scheduled LAWRENCE E. KAHN, OF NEW YORK, TO BE U.S. DIS- TRICT JUDGE FOR THE NORTHERN DISTRICT OF NEW lawsuits, by pulling out of the process hearings next week on Superfund, and I YORK, VICE NEAL P. MC CURN, RETIRED. people who never should have been hope we will have an opportunity to WALKER D. MILLER, OF COLORADO, TO BE U.S. DIS- TRICT JUDGE FOR THE DISTRICT OF COLORADO, VICE pulled in. This is accomplished through discuss this proposal, among others. JIM R. CARRIGAN, RETIRED. April 18, 1996 CONGRESSIONAL RECORD — Extensions of Remarks E567 EXTENSIONS OF REMARKS

INTRODUCTION OF THE IDEA cation law. This bill represents much of that This bill addresses the classroom safety IMPROVEMENT ACT OF 1996 consensus, but not all of it, and certainly not issue, but maintains protections against ar- the end of it. And while I believe this is an ex- bitrary placement changes. The student’s IEP will include behavior HON. RANDY ‘‘DUKE’’ CUNNINGHAM cellent bill, no individual or organization will management techniques to help avoid dis- OF CALIFORNIA wholeheartedly support it all. That is the na- ruptive, dangerous, and inappropriate behav- IN THE HOUSE OF REPRESENTATIVES ture of this process. But the process thus far ior. has given me, and should give all Americans, The bill adds the following categories to Thursday, April 18, 1996 hope for a successful conclusion. the ‘‘firearms’’ category in current law, per- Mr. CUNNINGHAM. Mr. Speaker, today I in- For the past several weeks, my friend from mitting removal from the classroom to an troduce the renewal of America's special edu- Michigan, Representative DALE KILDEE and I alternative educational placement for up to have been negotiating on many issues in this 45 days: cation law, the Individuals with Disabilities Bringing weapons to school; Education Act [IDEA] Improvement Act of bill. We have come to many agreements Bringing illegal drugs to school or illegally 1996. which are reflected in this legislation. There distributing legal drugs; This measure is the product of 16 months of are some issues reminding. Between today Engaging in an assault and battery (strik- work, building consensus to improve this law and the House Subcommittee on Early Child- ing another person with the intention of that has transformed the lives of children with hood, Youth and Families markup, scheduled bringing about harmful or offensive contact disabilities. For 20 years, children with disabil- for Wednesday, April 24, Members and com- which is not legally consented by the per- ities have been assured a free, appropriate mittee and personal staffs from both parties son); or By proof of substantial evidence, rep- public education. But as one of my Democrat will continue seeking to resolve issues. Some resenting a danger to oneself or others. colleagues said in one of our IDEA hearings, may be completed in time to be included in a These terms and, in the case of the first we no longer question whether children should chairman's mark. Others will be held for pos- three categories, which school official would be educated, but how well their education is sible bipartisan amendments, in subcommittee have the discretion to remove the student being done. We see and know that education or full committee. would be defined through State law or pol- transforms individuals who were once thought In the interest of citizens and Members who icy. to be helpless into productive, working, tax- wish to review this bill, its text will be available The bill requires a review by the IEP team most quickly on the House Opportunities Com- of whether the child’s action was a mani- paying citizens. festation of the disability. The team will This legislation, which I will summarize, is mittee World Wide Web site, which is ``http:// consider the implementation of behavior based upon certain foundational principles. www.house.gov/eeo/'', and soon through the management strategies in the child’s IEP, First, we need to improve IDEA because Thomas service of the Library of Congress. I the appropriateness of the placement, and children with disabilities can and should have welcome comments and cosponsors, encour- other information presented by the parents. a fighting chance to achieve the American age citizens to understand that this is a work Where an action is not disability related, dream. We need to make the system work in progress, and urge Members to support the any school discipline policy applied to non- better for children and their families, for teach- bill. disabled students may be equally applied to ers and schools, and for the taxpaying citizens Following is a summary of how the IDEA the disabled student. 4. Mediation (§ 615(d)). Three-fourths of the who work hard to pay the bill. We want quality Improvement Act of 1996 addresses key is- states have established mediation systems education for children, not just a process. sues of interest: on their own accord and have been successful Second, where we recognize that resources OVERVIEW OF THE IDEA IMPROVEMENT ACT OF in reducing the number of formal disputes. are tight, we direct more money to schools to 1996 AS INTRODUCED APRIL 18, 1996 The bill requires states to offer voluntary provide services to children. We also reduce The following are the major improvements mediation to parents prior to any adminis- paperwork and other administrative burdens, to the Individuals with Disabilities Edu- trative or judicial dispute. Attorneys would freeing more resources to educate young peo- cation Act in the IDEA Improvement Act of not be permitted to participate for either ple. 1996: side in mediation, and attorney’s fees would 1. Funding Formula (§ 611). The bill makes not be available for mediation proceedings. Third, where we find unnecessary and cost- a ten-year transition from a ‘‘head-count for- 5. Categorization/Eligibility (§ 602(3)(B)). ly conflict and discord, this legislation renews mula based on the number of children with The bill permits States to extend use of the a focus on education and cooperation. disabilities counted in the State, to a popu- ‘‘developmental delay’’ definition for chil- And fourth, where we have identified confu- lation-based formula with a factor for child dren aged 3 to 5 (current law) up to age 9, but sion in the process of educating children with poverty. The new formula would be based otherwise maintains the current categories. special needs, we have sought to provide cer- 85% on number of children in the State and 6. Discretionary Programs (Part D). The tainty and understanding, based upon consen- 15% on State poverty statistics. Transition bill reorganizes and consolidates the existing sus and common sense. The area of this law years would use a declining fraction (90% in discretionary programs (currently Parts D– FY 1997 to 0% in FY 2006) under the current G), and I). Subpart I grants broad authority that has probably drawn the most attention is formula and an increasing fraction (10% in for national projects to the Secretary of the area of discipline. The IDEA Improvement FY 1997 to 100% in FY 2006) under the new Education. Subpart 2 permits State grants Act of 1996 contains clear procedures for re- formula. for reform and improvement of their special moving dangerous students from the class- 2. Least Restrictive Environment and education and early intervention systems, room, with instructions to determine whether State Funding Formulae (§ 612(a)(4)). The bill with an emphasis on in-service and the behavior is a manifestation of a student's requires States to use ‘‘placement neutral’’ preservice professional development for gen- disability. If a child's wrongdoing has nothing funding formulae for distributing funds with- eral educators and special educators. Sub- to do with his or her disability, schools should in the State. part 3 maintains the current Parent Train- 3. Discipline/‘‘Stay-Put’’ (§ 615). Under curing Center program. have authority to discipline in a manner con- rent law, a school cannot suspend or expel a 7. Reduction of State Education Agency sistent with the way they discipline other chil- disabled student for more than 10 days ex- Funds Reservation (§ 611(c)). Current law dren. Schools need authority to maintain safe cept where the student has brought a gun to only requires that at least 75% of IDEA funds classrooms, and children with disabilities need school. With guns, the school may remove a flow through to local schools. The bill would protections against arbitrary discipline. student from school for 10 days, and then require states to pass at least 90% through to Let me say a few words about the process may place the student in an ‘‘interim alter- LEAs, with the remainder reserved for ad- which has brought us to this point, and where native placement’’ for up to 45 additional ministrative and statewide activities, unless days. During that period, the student’s Indi- we go from here. For 16 months, through the State seeks a waiver permitting reten- vidual Education Program (IEP) team must tion of an additional 15%. three staff drafts, numerous hearings and pub- agree on a new placement. If the parents and 8. Restructuring of Parental Notice Re- lic and private meetings, we have sought to school disagree, the student will remain in quirements (§ 615(c–d)). IDEA currently pro- find agreement in the many difficult issues af- their interim alternative placement for the motes the use of consolidated notices that fecting renewal of our Nation's special edu- pendency of any due process proceedings. notify parents of a host of procedural and

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E568 CONGRESSIONAL RECORD — Extensions of Remarks April 18, 1996 other rights under the act. The prior written include: (1) where parents are illiterate or tinguished Israeli leader, this man of war who notice and the notification of procedural cannot write English; (2) where providing no- became a leader in the effort to bring peace safeguards requirements in current law have tice would result in delay that would likely and cooperation. been separated for the purpose of clarity. result in physical or serious emotional harm Those who paid tribute to Prime Minister The prior written notice will only address to the child; (3) where the school prevents actions proposed or refused by the local edu- the parent from providing notice; and (4) Rabin last night were: Our distinguished col- cation agency (LEA). The new procedural where parents did not receive notice of this league from Georgia, the Speaker of the safeguards notice provision details the fre- requirement. House, NEWT GINGRICH; Pro. Shevach Weiss, quency and content of the notice to be given 16. Disclosure of Evaluations and Rec- Speaker of Knesset; Dalia Rabin Filosof, the to parents. ommendations (§ 615(f)). This provision would daughter of Prime Minister Rabin; His Excel- 9. Attorney’s Fees (Part B). The bill main- require schools and parents to disclose to the lency Itamar Rabinovich, the Ambassador of tains the current law on attorney’s fees by other party any evaluations and rec- Israel to the United States; and Walter Reich, permitting them for parents who prevail ommendations based on those evaluations 15 executive director of the U.S. Holocaust Me- against the school. Parents are required to days prior to any due process proceeding. have notified the school district of their con- This change will ensure that both parties are morial. Those of our colleagues who spon- cerns at some point prior to filing to obtain given the opportunity to review evaluations sored this event, in addition to Speaker GING- attorney’s fees. In cases where there are of a child’s special education needs that the RICH, were Senators ORRIN HATCH of Utah and multiple issues in dispute, the judge will be other party intends to use in a due process JOE LIEBERMAN of Connecticut; Democratic permitted to award fees only on the issues hearing. leader of the House, RICHARD GEPHARDT; and upon which the parents prevailed. 17. Modification of Requirements to our House colleagues Congressman BENJAMIN 10. Policy Letters (§ 605(c)). Currently, Achieve Innovative Delivery of Services many U.S. Dept. of Education ‘‘policy let- A. GILMAN of New York, the chairman of our (§ 613(g)). This provision will apply to 10 International Relations Committee; Congress- ters’’ are treated as having regulatory au- LEAs or groups of LEAs selected by the Sec- thority without being submitted to public retary of Education who have demonstrated man JOHN PORTER of Illinois; and Congress- comment or without having underlying regu- excellence in providing services to students man HOWARD BERMAN of California. A number latory authority. The bill limits the applica- with disabilities and who have obtained the of our colleagues joined us in paying tribute, bility of such letters to the parties to whom cooperation of parents of students with dis- including Congressman BILL MARTINI of New they have been addressed. abilities in the area. Selected LEAs will be Jersey and HOWARD COBLE of North Carolina. 11. Parent’s Right of Refusal for Initial permitted to modify existing Part B require- Mr. Speaker, it is entirely appropriate that Evaluation and Consent for Evaluation Not ments for improving services to disabled stu- Construed as Consent for Services we pay tribute to Prime Minister Rabin for his dents and for improving the operation of the contributions to the State of Israel, our only (§ 614(a)(1)(C)). The bill clarifies that the par- local special education system. Analytic in- ents of a child who has been referred for an struments will be developed to quan- stable democratic ally in the Middle East, and initial evaluation have the right to refuse titatively determine the effectiveness of the for his contributions to the peace process in that evaluation placing the onus of making modification, and determine the ability for that region. an administrative appeal on the school dis- replication of successful changes. Yitzhak Rabin was born in Jerusalem in trict where it believes that a child needs spe- 18. State Application for Part C (formerly 1922. He was only 26 years of age when the cial education services. This provision would Part H) (current § 678). The bill essentially State of Israel was proclaimed in 1948, and in also clarify that parental consent for a maintains the current Part H program as many ways his biography is the biography of child’s evaluation shall not be construed as Part C. The bill will enable Part C funding Israel. He has played pivotal roles throughout consent for delivery of special education applicants to reduce application process pa- services based on that evaluation. his country's history. perwork by eliminating the requirement In the war of Israeli independence in 1948, 12. Commingling of Funds (current that all State policies and assurances per- § 613(a)(9)(A)). The bill maintains the require- taining to Part C be filed with every applica- Yitzhak Rabin commanded the Harel brigade, ment that funds must be expended for the tion to the U.S. Department of Education. which opened the road to besieged Jerusa- benefit of special education students, but re- This language corresponds to the language in lem. He served in positions of command in the moves the prohibition on commingling of Part B. Israel Defense Forces, culminating with his funds. This provision will only permit com- f appointment as chief of staff in 1964, when he mingling of Federal and state special education funds. This change will not permit led IDF forces to victory in the Six-Day War. PHOTOGRAPHIC TRIBUTE TO Following his retirement from military service consolidation of Federal special education FORMER ISRAELI PRIME MIN- funds with other Federal funds or with other in 1968, he became Ambassador of Israel to non-special education funds. ISTER YITZHAK RABIN the United States for a period of 5 years. 13. Personnel Standards and Personnel De- In 1973 when he returned to Israel, he was velopment. The bill maintains the current HON. TOM LANTOS elected a member of the Knesset, and a year requirement that States establish and en- OF CALIFORNIA later in June 1974 he became Prime Minister, force personnel standards (§ 612(a)(15)). In the serving until 1977. During this period, dis- bill’s newly configured discretionary pro- IN THE HOUSE OF REPRESENTATIVES engagement agreements were signed with grams, the State Improvement Grant pro- Thursday, April 18, 1996 gram will dedicate 75% of appropriated funds Egypt and Syria, followed by an interim agree- to personnel development (§ 674). Mr. LANTOS. Mr. Speaker, I rise today to ment with Egypt. These were the key agree- 14. Narrow Exceptions for Maintenance of call the attention of my colleagues to an excel- ments that prepared the way for Egyptian Local Education Agency (LEA) Effort lent exhibition of photographsÐYitzhak Rabin President Anwar Sadat's historic visit to Jeru- (§ 613(a)(2)(B)). The bill permits school dis- RememberedÐwhich displays in pictures the salem. During the period of the coalition gov- tricts to reduce special education expendi- life and accomplishments of assassinated Is- ernment, Rabin served as Minister of Defense tures in the following limited circumstances: raeli Prime Minister Yitzhak Rabin. This su- replacement of higher cost staff with lower from 1984±90. cost staff, such as with retirement; depar- perb exhibit is now on display in the rotunda In July 1992 he became Prime Minister for ture of particular high-cost students from of the Cannon House Office Building. Last the second time and also Minister of Defense. the LEA; decreases in special education en- January when my wife, Annette, and I were in This period in office was marked by major rollment; and one-time expenditures of funds Israel on a private visit, we saw an outstand- landmarks in the peace process. On Septem- by the LEA. ing photographic exhibit about Prime Minister ber 13, 1993, he signed the Israel-Palestinian 15. Payment for Placement of Students in Rabin in the Israeli Knesset, and right there, Declaration of Principles on the South Lawn of Private Schools without the Consent of or Annette and I determined that we should the White House. On October 26, 1994, he Referral by the Public Agency (§ 612(a)(9)(C)). This change would prevent tax-payer fi- make every effort to have those photographs signed the Treaty of Peace between Israel nanced private school education where the brought here to Washington so that the Mem- and Jordan. On September 28, 1995, he public schools have never been given the op- bers of the Congress could have a greater un- signed the Israeli-Palestinian Interim Agree- portunity to determine if the child can be derstanding and appreciation of this great man ment at the White House. In recognition of his served in public schools. This section would of peace. major contributions to Middle East peace, he require parents to give 10-day written notice Through the efforts of the Speaker of was awarded the Nobel Prize for Peace in De- to receive reimbursement private, special Knesset, Prof. Shevach Weiss, and the Em- cember 1994 along with Israeli Foreign Min- education school tuition without LEA con- bassy of Israel here in Washington, we were ister, now Prime Minister, Shimon Peres and sent. The bill would establish that local schools able to arrange for these photographs to be PLO Chairman Yasser Arrafat. must be permitted to conduct an initial eval- displayed in the Cannon rotunda. Last night, Few of us will ever forget the tragedy of his uation of a student prior to publicly-funded we held a reception to mark the opening of death on November 4, 1995. He was assas- private school placement. Exceptions would this exhibit and to pay tribute to this most dis- sinated by an Israeli citizen shortly after April 18, 1996 CONGRESSIONAL RECORD — Extensions of Remarks E569 speaking at a massive peace rally in Tel Aviv. street? His social security checks stopped DRAWBACKS In tribute to his contribution to the peace, coming, and he can’t afford his high medical I agree with criticism of the Freedom to kings, presidents and other heads of state and bills after breaking his hip. He needs your Farm approach that it fails to require farm- help. ers to farm in order to receive payments. government from around the world participated I called a grieving mother yesterday. Her in a memorial service honoring him at his bur- This is a common-sense requirement, and it sobs and tears rang over the phone as she de- is disappointing that the leadership blocked ial in Jerusalem. scribed her young son’s death after being an opportunity to vote on this issue. My sus- Mr. Speaker, I urge our colleagues to pause caught in a gang cross-fire. She needs your picion is that farm issues will come back to in the Cannon rotunda to see these photo- help. Congress sooner than many expect. It was graphsÐYitzhak Rabin RememberedÐand to I called a lonesome, homeless teenager easier to pass major changes because crop honor the memory and the outstanding today. He told the violent story of being prices are at their highest levels in decades. achievements of this great man. beaten at home and turning to the streets If falling prices threaten family farms, farm- for refuge. He needs your help. f ers may demand a better safety net in later Now I’m calling you, Americans. Please years. A TRIBUTE TO TARA SAKRAIDA answer the call of rising health care costs by electing officials who will work to change WETLANDS AND CONSERVATION the system. Answer the call of crime by edu- The final bill includes some limited wet- HON. WES COOLEY cating children about the dangers of drugs, lands reform, similar to a bill I helped intro- OF OREGON guns, and violence. And answer the call of duce last year. Under current law, farmers are not allowed to farm on wetlands for envi- IN THE HOUSE OF REPRESENTATIVES abuse by confronting the problem and volunteering for Crisis Intervention Organiza- ronmental reasons. But it is difficult to de- Thursday, April 18, 1996 tions or homeless shelters. termine exactly what a wetland is—particu- Mr. COOLEY. Mr. Speaker, the Veterans of You’ve heard my call, Americans. Now larly in tiny areas. An area that was dry one month might be wet the next, and two sci- Foreign Wars of the United States recently don’t hang up on me . . . I need you. I have given everything I can, and now it is up to entists can make different determinations. concluded its annual Voice of Democracy you. I hope to hear from you soon, Ameri- Moreover, farmers risk drastic penalties for scriptwriting contest. One of the winners of cans. Good-bye. even the smallest violation, even if they this year's competition is a bright young stu- *If you don’t answer America’s call, you make a good faith effort to correct the situa- dent from North Medford High School in Med- may be disconnected. tion. ford, OR. Tara Sakraida has won the first f The 1996 farm bill consolidates authority place award for the entire State of Oregon. for agricultural wetlands in the Agriculture THE FARM BILL Department, and makes penalties propor- Her submission, entitled ``Answering America's tional to any violation. The wetlands re- Call,'' serves as a moving tribute to the type forms in the farm bill are significant, but of civic-minded community involvement that HON. LEE H. HAMILTON they fall short of the reforms that passed the has motivated so many of our Nation's veter- OF INDIANA House last year, but stalled in the Senate. ans. IN THE HOUSE OF REPRESENTATIVES This other measure addressed wetlands pro- If I may, Mr. Speaker, I would like to submit Thursday, April 18, 1996 tection in a more comprehensive manner, Tara Sakraida's award-winning essay for the narrowing the definition of wetlands, ensur- Mr. HAMILTON. Mr. Speaker, I am inserting record. ``Answering America's Call''Ðby Tara ing that the costs and benefits of regulation my Washington Report for Wednesday, April Sakraida of Medford, OR. are analyzed with sound scientific evidence, 3, 1996 into the CONGRESSIONAL RECORD: and consolidating agricultural wetlands au- ANSWERING AMERICA’S CALL THE 1996 FARM BILL thority in USDA. Congress should revisit and Hi. You’ve reached 555-Americans, and Congress recently passed the 1996 farm bill, pursue these important reforms. we’re either too busy or too lazy to answer The farm bill also reauthorizes the Con- and the President signed it into law. This the phone, so leave a message and we may servation Reserve Program (CRP). In effect, seven-year bill makes sweeping reforms to- call you back. CRP leases environmentally sensitive farm- ward a free-market agricultural system. It Hello? Hello? This is America, your coun- land from farmers to reduce soil erosion, pro- also includes agricultural research, rural de- try, calling. Is anyone home? Well, I needed tect water quality, and promote wildlife. velopment, conservation, nutrition, and agri- to talk to someone . . . I’m feeling pretty This program is credited for restoring nu- cultural export and food assistance pro- low. People are burning my flag, Old Glory, merous threatened species, including ducks grams. Saving more than $2 billion, the bill as I speak. They are yelling and protesting and quail. CRP was not included in the origi- that desecrating Old Glory is freedom of passed with my support. Passage of the bill was helped because Con- nal House bill, but it was added on the floor speech. Why are they doing this? After ev- gress was months late. On January 1, the with my strong support. The new bill also in- erything I have given them. A constitution, 1990 farm bill expired, and the 1949 ‘‘perma- cludes provisions to assist livestock produc- a democracy, freedom to make choices and nent law’’ came into effect. Everyone agreed ers in protecting water supplies from animal decisions. I don’t understand—they’ve cho- that the expensive 1949 law would be changed waste. sen to dishonor me. Where are you, Ameri- before harvest, but Congress took no action, EXPORTS cans? If you’re sitting at home, please pull and farmers were forced to make important The 1996 farm bill includes an amendment yourself away from the television and an- business decisions in the dark. The congres- I offered on the House floor to renew export swer my call. We need Help. When some people say the Pledge of Alle- sional leadership’s decision last year to put and food assistance programs. Exports are giance, they don’t even place a hand over farm legislation in the huge, omnibus budget critical to the average Hoosier farmer, who their hearts. They recite it bill was clearly a mistake, because it de- receives some $32,000 in export sales each unenthusiastically, like lyrics to an out- layed action on this important, bipartisan year. Export promotion and food assistance dated song. And when my melodic, patriotic measure. have been key to the success of U.S. agri- anthem is played, some do not stand or re- CROP PROGRAMS culture in world markets. The farm bill reauthorizes export and food move their hats, for they feel it is unneces- The heart of the bill is the so-called ‘‘Free- aid programs through 2002 to help open new sary or trite. The polls are no longer over- dom to Farm’’ approach, which replaces markets and counter unfair foreign sub- flowing with anxious voters; many don’t be- commodity programs with a yearly payment sidies. These efforts are especially important lieve their vote makes a difference. And the to farmers—declining each year—based on as we pursue additional reductions in foreign meaning of Veteran’s Day is often lost in the their past production. The payment would be tariffs. We made progress in the Uruguay excitement of a vacation. Americans, are separated from specific crop production, let- Round of the General Agreement on Tariffs you doing something to solve these prob- ting farmers choose which crops to plant. and Trade (GATT), but we must maintain lems? Previous policy had used complicated pay- our leverage to push our competitors to re- I’m asking each and every American to ment formulas and required some land to be duce their trade barriers further. The bill take time to listen and answer my cries. idled. Instead, the new bill gives farmers flat provides export credits for purchasing U.S. Begin by volunteering at a Domiciliary, giv- payments and independence. The only re- products, authorizes measures to help pro- ing blood to the Red Cross, or serving in the quirement is that farmers meet current con- mote U.S. food products in tough foreign military. You can show patriotism by flying servation standards. markets, and boosts the role of private enti- my flag; show your pride by standing when I have always supported a more market- ties in distributing U.S. farm products under my anthem is played; and acknowledge those oriented farm policy. This measure is a good food aid programs. military crusaders by observing Veteran’s step in that direction. The elimination of Day. I hope you understand my message, most planting restrictions will allow farmers RESEARCH AND RURAL DEVELOPMENT Americans. I need you to come together as a to plant according to supply and demand, The new farm bill makes agricultural re- community so my message can be heard. and to respond more efficiently to global search and rural development a higher prior- I called Mr. Retired the other day. You markets. Reduced regulation will also ease ity with a ‘‘Fund for Rural America’’. The know, your elderly neighbor across the the burden of paperwork on farmers. fund would invest in rural infrastructure and E570 CONGRESSIONAL RECORD — Extensions of Remarks April 18, 1996 housing, and make competitive research both at home and abroad, and maintain the sumed leadership positions in the National grants for technological advancement. These U.S. food supply as the cheapest and safest Council of Jewish Women, the Wisconsin Jew- efforts pay for themselves dozens of times food supply in the world. ish Conference, the Milwaukee Jewish Council over in economic growth, increased produc- f tivity, and innovative uses for agricultural for Community Relations, and the Milwaukee products. Many Hooseir farmers expressed SUSAN AND ROBERT H. FRIEBERT, Jewish Federation. Susan's involvement in their support for making research a higher RECIPIENTS OF AMERICAN JEW- these outstanding organizations has helped to priority, and I agree. ISH COMMITTEE’S HUMAN RELA- ensure that Milwaukee's Jewish community re- CROP INSURANCE TIONS AWARD mains an active and vital voice in Milwaukee's The farm bill includes provisions from a civic life. bill I cosponsored to allow farmers to waive HON. GERALD D. KLECZKA Through his involvement in Wisconsin's crop insurance mandates if they forego fu- legal community and the Democratic Party of OF WISCONSIN ture disaster payments. Under the old crop Wisconsin, Bob Friebert has helped to shape insurance program, farmers who chose to IN THE HOUSE OF REPRESENTATIVES our State's legal and political landscape. Bob participate in USDA programs were required Thursday, April 18, 1996 to purchase catastrophic insurance from the was instrumental in organizing Wisconsin's government, even if it made little sense for Mr. KLECZKA. Mr. Speaker, I rise today to State Public Defender's Office and also served a particular farmer’s crop or size of oper- congratulate my friends Susan and Robert as State chair of the Wisconsin Civil Liberties ation. Friebert on receiving the American Jewish Union. While serving as chairman of the Wis- OTHER PROVISIONS Committee's 1996 Human Relations Award. consin Jewish Conference, Bob helped to au- The new bill includes dairy reforms that Susan and Bob Friebert, together and as in- thor and secure passage of Wisconsin's hate phase out price supports and replace them dividuals, have left a lasting mark on their crimes law. He is also a leading Democrat and with market loans. Unfortunately, the bill community and have touched the lives of lit- through the years, has played key roles in nu- made only modest reforms to the sugar and erally thousands of people in the Milwaukee merous local, State, and national political cam- peanut programs. These programs impose area. paigns. Like his wife, Bob is also very proud production quotas that protect a few sugar Susan Friebert, through her involvement in of his Jewish heritage and has assumed lead- and peanut farmers at the expense of con- ership positions with organizations such as the sumers. I voted to phase out both the sugar organizations such as the Quality Education and peanut programs, but the effort failed. Commission, the Wisconsin Council on Chil- Wisconsin Jewish council, the National Jewish Democratic Council, and the Milwaukee Jew- CONCLUSION dren and Families, and the White House Com- ish Council on Community Relations. The 1996 farm bill passed with broad bipar- mission on Presidential Scholars, has made tisan support. While not perfect, this legisla- the education and well-being of Wisconsin's I commend Susan and Bob Friebert on re- tion includes many important reforms. I be- children a top priority. She is also very proud ceiving the 1996 Human Relations Award and lieve it will strengthen the American farmer, of her Jewish faith and heritage and has as- on their outstanding service to our community. Thursday, April 18, 1996 Daily Digest Senate by making health and long-term care insurance more Chamber Action accessible and affordable. Pages S3552±70 Routine Proceedings, pages S3503–S3694 (4) Jeffords Amendment No. 3680 (to Amend- Measures Introduced: Six bills and two resolutions ment No. 3679), to reduce delinquencies and to im- were introduced, as follows: S. 1682–1687, S.J. Rev. prove debt-collection activities government-wide. 51, and S. Res. 248. Page S3626 (Subsequently, the amendment fell after having been incorporated into Amendment No. 3679, listed Measures Reported: Reports were made as follows: below, which was tabled.) Page S3587 S. 811, to authorize research into the desaliniza- (5) Domenici/Wellstone Amendment No. 3681, tion and reclamation of water and authorize a pro- to ensure that parity is provided under health plans gram for States, cities, or qualifying agencies desir- for severe mental illness services. (By 30 yeas to 68 ing to own and operate a water desalinization or rec- nays (Vote No. 75), Senate failed to table the lamation facility to develop such facilities, with an amendment.) Pages S3588±92 amendment in the nature of a substitute. (S. Rept. (6) Conrad Amendment No. 3684, to extend State No. 104–254) Page S3626 requested waivers of the foreign country residence re- Measures Passed: quirement with respect to international medical Indian Self-Determination and Education As- graduates. Pages S3597±98 sistance Act: Senate passed H.R. 3034, to amend the (7) Coats Amendment No. 3685, to encourage the Indian Self-Determination and Education Assistance provision of medical services in medically under- Act to extend for two months the authority for pro- served communities by extending Federal liability mulgating regulations under the Act, clearing the coverage to medical volunteers. (By 47 yeas to 51 nays (Vote No. 77), Senate failed to table the measure for the President. Page S3691 amendment.) Pages S3598±S3600, S3605 Health Insurance Reform Act: Senate concluded (8) Boxer Modified Amendment No. 3686, to ex- consideration of S. 1028, to provide increased access press the sense of the Senate that Congress should to health care benefits, to provide increased port- examine treatments available to patients and if doc- ability of health care benefits, to provide increased tors receive bonuses for withholding treatment from security of health care benefits, and to increase the patients. Pages S3600±01, S3604, S3606 purchasing power of individuals and small employ- (9) Simon Modified Amendment No. 3687, to ex- ers, after agreeing to a committee amendment in the press the sense of the Senate regarding the need to nature of a substitute, and taking action on amend- ensure adequate health care coverage for all children ments proposed thereto, as follows: and pregnant women. Pages S3601±02, S3605 Pages S3503±75, S3578±S3613 (10) Kennedy (for Dorgan/Frist) Amendment No. Adopted: 3688, to encourage organ and tissue donation (1) Kassebaum Amendment No. 3675, in the na- through the inclusion of an organ and tissue dona- ture of a substitute. Pages S3552±75, S3578±83 tion card with individual income refund payments. (2) By 52 yeas to 46 nays (Vote No. 72), Kasse- Page S3602 baum Amendment No. 3677 (to Amendment No. (11) Kennedy (for Wellstone) Amendment No. 3676), to strike medical savings accounts. 3689, to prohibit the establishment of certain health Pages S3557±68 plan requirements based on information relating to (3) By a unanimous vote of 98 yeas to (Vote No. domestic violence. Pages S3602±03 73), Dole Modified Amendment No. 3676 (to (12) Kassebaum (for Helms) Amendment No. Amendment No. 3675), to amend the Internal Reve- 3690, to provide for a three-part study on the eval- nue Code of 1986 to improve health and long-term uation of access and choice of health care providers. care coverage in the group and individual markets Page S3603 D331 D332 CONGRESSIONAL RECORD — DAILY DIGEST April 18, 1996 (13) Burns/Harkin Amendment No. 3691, to di- marks of the Acting Majority Leader in today’s rect the Health Care Financing Administration to Record on page S3691.) determine reimbursement rates for telemedicine services. Pages S3603±04 Committee Meetings Rejected: (1) Jeffords Amendment No. 3679, to establish a (Committees not listed did not meet) minimum amount that may be applied as an aggregate lifetime limit with respect to coverage under an APPROPRIATIONS—AGRICULTURE employee health benefit plan or a group health plan. Committee on Appropriations: Subcommittee on Agri- (By 56 yeas to 42 nays (Vote No. 74), Senate tabled culture, Rural Development, and Related Agencies the amendment.) Pages S3583±87 held hearings on proposed budget estimates for fiscal (2) Harkin/Baucus Amendment No. 3683, to re- year 1997, receiving testimony in behalf of funds for duce health care fraud, waste and abuse. (By 62 yeas their respective activities from James Lyons, Under to 36 nays (Vote No. 76), Senate tabled the amend- Secretary for Natural Resources and Environment, ment.) Pages S3593±97, S3604±05 Paul W. Johnson, Chief, Pearlie S. Reed, Associate Withdrawn: Chief, Thomas A. Weber, Deputy Chief for Natural Brown Amendment No. 3678 (to Amendment Resource Programs, Richard L. Duesterhaus, Deputy No. 3675), to provide equitable relief for the generic Chief for Soil Science and Resource Assessment, drug industry. Pages S3573±75, S3578±83 Sherman L. Lewis, Deputy Chief for Management Specter Amendment No. 3682, to reauthorize and and Strategic Planning, and Robert K. Reaves, Di- expand the healthy start program to target areas in rector, Budget Planning and Analysis Division, all of need and to implement community driven strategies the Natural Resources Conservation Service, and to reduce infant mortality. Pages S3592±93, S3604 Dennis L. Kaplan, Deputy Director for Budget, Leg- A unanimous-consent agreement was reached pro- islative, and Regulatory Systems, all of the Depart- viding for a vote on final passage of H.R. 3103, ment of Agriculture. House companion measure, to occur on Tuesday, Subcommittee will meet again on Tuesday, April April 23, 1996. Page S3605 23. Nominations Received: Senate received the follow- BUSINESS MEETING ing nominations: Arthur Gajarsa, of Maryland, to be United States Committee on Armed Services: Committee ordered favor- Circuit Judge for the Federal Circuit. ably reported an original bill to authorize multiyear Lawrence E. Kahn, of New York, to be United contracting for the C–17 aircraft program. States District Judge for the Northern District of Also, committee began consideration of S. 1635, New York. to establish a United States policy for the deploy- Walker D. Miller, of Colorado, to be United ment of a national missile defense system, but did States District Judge for the District of Colorado. not complete action thereon, and recessed subject to Page S3694 call. Messages From the House: Page S3625 CBO ECONOMIC FORECAST Measures Referred: Page S3625 Committee on the Budget: Committee concluded hearings to review the Congressional Budget Office eco- Communications: Pages S3625±26 nomic and budget outlook for fiscal years 1997 Executive Reports of Committees: Page S3626 through 2006, after receiving testimony from June Statements on Introduced Bills: Pages S3626±33 E. O’Neill, Director, Congressional Budget Office. Additional Cosponsors: Pages S3633±34 SPECTRUM USE AND MANAGEMENT Amendments Submitted: Pages S3634±79 Committee on Commerce, Science, and Transportation: Committee resumed hearings to examine Federal Notices of Hearings: Page S3679 policies with regard to the use and management of Authority for Committees: Pages S3679±80 the electromagnetic radio frequency spectrum, re- Additional Statements: Pages S3680±91 ceiving testimony from George Gilder, Discovery In- stitute, Seattle, Washington; Nicholas Negroponte, Record Votes: Six record votes were taken today. Massachusetts Institute of Technology, Cambridge; (Total–77) Pages S3568, S3570, S3587, S3592, S3604±05 Peter Huber, Manhattan Institute, Bethesda, Mary- Adjournment: Senate convened at 9:30 a.m., and land; Janice Obuchowski, Freedom Technologies, adjourned at 11:15 p.m., until 10 a.m., on Friday, former Assistant Secretary of Commerce and Director April 19, 1996. (For Senate’s program, see the re- of the National Telecommunications and Information April 18, 1996 CONGRESSIONAL RECORD — DAILY DIGEST D333

Administration, and Philip Verveer, Public Safety BUSINESS MEETING Wireless Advisory Committee, both of Washington, Committee on Governmental Affairs: Committee ordered D.C.; W. Harrell Freeman, Radiophone, Inc., favorably reported the following business items: Metairie, Louisiana; Harold O’Dell, Leflore Commu- The nomination of Robert E. Morin, to be an As- nications, Inc., Greenwood, Mississippi; and Randy sociate Judge of the Superior Court of the District P. Parker, Tenneco Energy, Houston, Texas. of Columbia; Hearings were recessed subject to call. H.R. 1880, to designate the United States Post TONGASS NATIONAL FOREST PLAN Office building located at 102 South McLean, Lin- Committee on Energy and Natural Resources: Committee coln, Illinois, as the ‘‘Edward Madigan Post Office held hearings to examine issues with regard to the Building’’, in lieu of S. 1443, Senate companion draft supplement to the revision of the Tongass Na- measure; tional Forest Land Management Plan, the first forest H.R. 2262, to designate the United States Post plan completed under the requirements of the Na- Office building located at 218 North Alston Street tional Forest Management Act of 1976, receiving in Foley, Alabama, as the ‘‘Holk Post Office Build- testimony from Jack Ward Thomas, Chief, Phil ing’’; Janik, Regional Forester, Region 10, Tom Mills, Sta- H.R. 2704, to provide that the United Sates Post tion Director, Pacific Northwest Experiment Station, Office building that is to be located on the 2600 and Gail Kimbell, Forest Supervisor, Tongass Na- block of East 75th Street in Chicago, Illinois, shall tional Forest, all of the Forest Service, Department be known and designated as the ‘‘Charles A. Hayes of Agriculture, who were accompanied by several of Post Office Building’’; their associates. S. 1080, to provide additional stock index invest- Hearings were recessed subject to call. ment funds for the Thrift Savings Plan under the Federal Employees’ Retirement System, with an NOMINATIONS amendment in the nature of a substitute; Committee on Foreign Relations: Committee concluded S. 1577, to authorize funds for fiscal years 1998 hearings on the nominations of Richard L. through 2001 for the National Historical Publica- Morningstar, of Massachusetts, for the rank of Am- tions and Records Commission; bassador during his tenure of service as Special Advi- H.R. 1508, to require the transfer of title to the sor to the President and to the Secretary of State on District of Columbia of certain real property in Ana- Assistance to the New Independent States (NIS) of costia Park to facilitate the construction of National the Former Soviet Union and Coordinator of NIS Children’s Island, a cultural, educational, and family- Assistance, Kenneth C. Brill, of California, to be oriented park; Ambassador to the Republic of Cyprus, Christopher H.R. 1271, to protect the privacy of families by Robert Hill, of Rhode Island, to be Ambassador to requiring parental consent for certain types of infor- The Former Yugoslav Republic of Macedonia, and mation asked of minors in Federally funded surveys Day Olin Mount, of Virginia, to be Ambassador to and evaluations; the Republic of Iceland, after the nominees testified S. 253, to repeal certain prohibitions against po- and answered questions in their own behalf. Mr. litical recommendations relating to Federal employ- Morningstar was introduced by Senator Kerry. ment, and to reenact certain provisions relating to recommendations by Members of Congress; and EXPANDING U.S. EXPORTS S. 1579, to streamline and improve the effective- Committee on Foreign Relations: Subcommittee on ness of the Single Audit Act of 1984 to promote International Economic Policy, Export and Trade sound financial management, including effective in- Promotion concluded hearings to examine the im- ternal controls, with respect to Federal awards ad- pact of a balanced Federal budget on the inter- ministered by non-Federal entities, with an amend- national business environment, focusing on the role ment; of U.S. government programs and policies in pro- Also, committee established the following new moting international exports and investments, after subcommittee: receiving testimony from Willard A. Workman, Subcommittee on Financial Management and United States Chamber of Commerce, James H. An- Accountability: Senators Thompson (Chairman), drews, M.W. Kellogg Co., on behalf of the Coalition Cohen, McCain, Brown, Glenn, Pryor, and Dorgan. for Employment Through Exports, Joel L. Johnson, Aerospace Industries Association, and Kenneth EMPLOYEE INVOLVEMENT AND SMALL Hobbie, United States Feed Grain Council, all of BUSINESS Washington, D.C.; and Allen J. Lenz, Chemical Committee on Small Business: Committee held hearings Manufacturers Association, Arlington, Virginia. to examine the impact of the proposed Teamwork D334 CONGRESSIONAL RECORD — DAILY DIGEST April 18, 1996 for Employees and Management Act (S. 295), which Management; James R. Rundle, Cornell University, allows for employers and employees to meet together Ithaca, New York; and Owen E. Herrnstadt, Inter- to address issues of mutual interest as long as their national Association of Machinists and Aerospace organizations do not engage in collective bargaining, Workers, Upper Marlboro, Maryland. on small business, receiving testimony from William Hearings were recessed subject to call. D. Budinger, Rodel, Inc., Newark, Delaware, on behalf of the National Association of Manufacturers; INDIAN PROGRAMS Chester McCammon, Universal Dynamics, Inc., Woodbridge, Virginia; Donna C. Gooch and Harold Committee on Indian Affairs: Committee continued L. Pascoe Jr., both of Sunsoft Corporation, Albuquer- oversight hearings on the President’s proposed budg- que, New Mexico; Dennis Rampe, Precision Litho, et request for fiscal year 1997 for Indian programs, San Diego, California, on behalf of the Printing In- receiving testimony from Ada E. Deer, Assistant Sec- dustries of America, Inc.; Edward E. Potter, Employ- retary of the Interior for Indian Affairs; and Gerald ment Policy Foundation, Washington, D.C.; G. N. Tirozzi, Assistant Secretary of Education for Ele- Roger King, Jones, Day, Reavis & Pogue, Columbus, mentary and Secondary Education. Ohio, on behalf of the Society for Human Resource Hearings continue tomorrow. h House of Representatives conference report on S. 735, to prevent and punish Chamber Action acts of terrorism—clearing the measure for the Presi- Bills Introduced: 14 public bills, H.R. 3267–3280; dent. Pages H3605±18 and 6 resolutions, H.J. Res. 172, H. Con. Res. H. Res. 405, the rule which waived all points of 164–166, and H. Res. 406–407 were introduced. order against consideration of the conference report, Pages H3649±50 was agreed to earlier by a recorded vote of 289 ayes Reports Filed: reports were filed as follows: to 125 noes, Roll No. 125. Earlier, agreed to order H.R. 2754, to approve and implement the OECD the previous question on the resolution by a yea-and- Shipbuilding Trade Agreement, amended, (H. Rept. nay vote of 274 yeas to 148 nays, Roll No. 124. 104–524, Part I); Pages H3599±H3605 H.R. 2594, to amend the Railroad Unemploy- Legislative Program: The Majority Leader an- ment Insurance Act to reduce the waiting period for nounced the legislative program for the week of benefits payable under that Act (H. Rept. 104–525); April 22. Page H3618 H.R. 2660, to increase the amount authorized to Senate Messages: Message received from the Senate be appropriated to the Department of the Interior today appears on page H3583. for the Tensas River National Wildlife Refuge (H. Quorum Calls—Votes: Three yea-and-nay votes Rept. 104–526); and and one record vote developed during the proceed- H.R. 2679, to revise the boundary of the North ings of the House today and appear on pages Platte National Wildlife Refuge (H. Rept. H3598–99, H3604–05, H3605, and H3617–18. 104–527). Pages H3648±49 Adjournment: Met at 10 a.m. and adjourned at 708 Speaker Pro Tempore: Read a letter from the p.m. Speaker wherein he designates Representative Quinn to act as Speaker pro tempore for today. Page H3583 Tribute to the Late Ronald H. Brown: By a yea- Committee Meetings and-nay vote of 423 yeas, Roll No. 124, the House AGRICUTLURE, RURAL DEVELOPMENT, agreed to H. Res. 406, in tribute to Secretary of FDA, AND RELATED AGENCIES Commerce Ronald H. Brown and other Americans APPROPRIATIONS who lost their lives on April 3, 1996, while in serv- Committee on Appropriations: Subcommittee on Agri- ice to their country on a mission to Bosnia. culture, Rural Development, Food and Drug Admin- Pages H3587±99 istration, and Related Agencies continued appropria- Anti-Terrorism: By a yea-and-nay vote of 293 yeas tion hearings. Testimony was heard from Members to 133 nays, Roll No. 126, the House agreed to the of Congress and public witnesses. April 18, 1996 CONGRESSIONAL RECORD — DAILY DIGEST D335 COMMERCE, JUSTICE, STATE AND TRANSPORTATION APPROPRIATIONS JUDICIARY APPROPRIATIONS Committee on Appropriations: Subcommittee on Trans- Committee on Appropriations: Subcommittee on Com- portation held a hearing on the Secretary of Trans- merce, Justice, State, and Judiciary continued appro- portation. Testimony was heard from Federico Pen˜a, priation hearings. Testimony was heard from public Secretary of Transportation. witnesses. The Subcommittee also held a hearing on the U.S. TREASURY, POSTAL SERVICE, AND Sentencing Commission, the State Justice Institute GENERAL GOVERNMENT APPROPRIATIONS and on the U.S. Parole Commission. Testimony was Committee on Appropriations: Subcommittee on Treas- heard from the following officials of the U.S. Sen- ury, Postal Service, and General Government held a tencing Commission: Michael S. Gelacak, Vice hearing on the GSA. Testimony was heard from Chairman and Michael Goldsmith, Commissioner; David Barram, Acting Administrator, GSA. Edward F. Reilly, Chairman, U.S. Parole Commis- sion, Department of Justice; and the following offi- VETERANS’ AFFAIRS-HUD-INDEPENDENT cials of the State Justice Institute: David A. Brock, AGENCIES APPROPRIATIONS Chief Justice and Co-Chairman; and John F. Daffron, Committee on Appropriations: Subcommittee on Veter- Judge and Co-Chairman. ans’ Affairs, Housing and Urban Development, and Independent Agencies held a hearing on Consumer FOREIGN OPERATIONS, EXPORT Product Safety Commission, the Consumer Informa- FINANCING AND RELATED PROGRAMS tion Center, and on the Office of Consumer Affairs. APPROPRIATIONS Testimony was heard from Ann Brown, Chairman, Committee on Appropriations: Subcommittee on Foreign Consumer Product Safety Commission; Teresa Nasif, Operations, Export Financing and Related Programs Director, Consumer Information Center, GSA; and held a hearing on the Secretary of the Treasury. Tes- Bernice Friedlander, Director, Office of Consumer timony was heard from Robert E. Rubin, Secretary Affairs, Department of Health and Human Services. of the Treasury. ENTREPRENEURIAL INVESTMENT ACT OF LABOR-HHS-EDUCATION 1996 APPROPRIATIONS Committee on Banking and Financial Services: Sub- Committee on Appropriations: Subcommittee on Labor, committee on Capital Markets, Securities and Gov- Health and Human Services, and Education held a ernment Sponsored Enterprises held a hearing on hearing on the Secretary of Health and Human Serv- H.R. 2981, Entrepreneurial Investment Act of 1996. ices and on the Director of the National Institutes Testimony was heard from Representative Chrysler; of Health. Testimony was heard from the following Susan M. Phillips, member, Board of Governors, officials of the Department of Health and Human Federal Reserve System; and public witnesses. Services: Donna E. Shalala, Secretary; and Harold E. Varmus, M.D., Director, NIH. ASSESSMENT OF UNION DUES Committee on Economic and Educational Opportunities: NATIONAL SECURITY APPROPRIATIONS Subcommittee on Employer-Employee Relations held Committee on Appropriations: Subcommittee on Na- a hearing on mandatory assessment of union dues. tional Security met in executive session to hold a Testimony was heard from public witnesses. hearing on Intelligence Programs. Testimony was heard from the following officials of the Department SINGLE AUDIT ACT AMENDMENTS of Defense: Maj. Gen. Edward G. Anderson III, Committee on Government Reform and Oversight: Sub- USA, Assistant Chief of Staff, Operations (Force De- committee on Government Management, Informa- velopment); Maj. Gen. Bobby O. Floyd, USAF, Di- tion, and Technology approved for full Committee rector of Forces, Office of Deputy Chief of Staff action amended H.R. 3184, Single Audit Act Plans and Operations; RAdm. R.A. Wilson, USN, Amendments of 1996. Deputy Director, Space, Information Warfare, Com- mand and Control; Maj. Gen. D.A. Richwine, JOB TRAINING PROGRAMS USMC, Assistant Chief of Staff, Command, Control, Committee on Government Reform and Oversight: Sub- Communications, Computer and Intelligence; Maj. committee on Human Resources and Intergovern- Gen. Kenneth Isreal, USAF, Director, Defense Air- mental Relations held a hearing to examine the char- borne Reconnaissance Office; and Keith R. Hall, acteristics of effective job training programs. Testi- Deputy Director, National Reconnaissance Office. mony was heard from Carlotta C. Joyner, Director, D336 CONGRESSIONAL RECORD — DAILY DIGEST April 18, 1996 Education and Employment Issues, Health, Edu- 2982, Carbon Hill National Fish Hatchery Convey- cation, and Human Services Division, GAO; Timo- ance Act. thy Barnicle, Assistant Secretary, Employment and MISCELLANEOUS MEASURES Training Administration, Department of Labor; and public witnesses. Committee on Resources: Subcommittee on National Parks, Forests and Lands approved for full Commit- ECONOMIC OPPORTUNITIES IN SOUTH tee action amended the following bills: H.R. 810, ASIA Revolutionary War and War of 1812 Historic Pres- Committee on International Relations: Subcommittee on ervation Study Act of 1995; H.R. 848, to increase Asia and the Pacific and the Subcommittee on Inter- the amount authorized to be appropriated for assist- national Economic Policy and Trade held a joint ance for highway relocation regarding Chickamauga hearing on Economic Opportunities and Pitfalls in and Chattanooga National Military Park in Georgia; South Asia. Testimony was heard from Raymond E. H.R. 970, to improve the administration of the Vickery, Assistant Secretary, Trade and Develop- Women’s Right National Historical Park in the ment, Department of Commerce; and public wit- State of New York; H.R. 1179, Historically Black nesses. Colleges and Universities Historic Building Restora- tion and Preservation Act; H.R. 2941, to improve BILINGUAL VOTING REQUIREMENTS the quantity and quality of the quarters of land REPEAL ACT management agency field employees; H.R. 2028, Committee on the Judiciary: Subcommittee on the Con- Federal Land Management Agency Concession Re- stitution held a hearing on H.R. 351, Bilingual Vot- form Act of 1995; H.R. 194, to direct the Secretary ing Requirements Repeal Act. Testimony was heard of the Interior to make matching contributions to- from Representatives Porter, Livingston, Becerra, ward the purchase of the Sterling Forest in the State Vela´zquez and King; Deval Patrick, Assistant Attor- of New York. ney General, Civil Rights Division, Department of MISCELLANEOUS MEASURES Justice; and public witnesses. Committee on Resources: Subcommittee on Water and CONSUMER FRAUD PREVENTION ACT Power Resources held an oversight hearing on Re- Committee on the Judiciary; Subcommittee on Crime sults/Status Report of Administrative process on held a hearing on telemarketing fraud and the vic- Central Valley Project Improvement Act (CVPIA) timization of the elderly, focusing on H.R. 1499, Implementation. Testimony was heard from John Consumer Fraud Prevention Act of 1995, Testimony Garamendi, Deputy Secretary, Department of the In- was heard from the following officials of the Depart- terior. ment of Justice: Mitchell D. Dembio, Assistant U.S. The Subcommittee also held a hearing on the fol- Attorney, Southern District of California, Chief, lowing: H.R. 2392, to amend the Umatilla Basin General Crimes Section; and Chuck Owens, Chief, Project Act to establish boundaries for irrigation dis- Financial Crimes Section, FBI, and public witnesses. tricts within the Umatilla Basin; H.R. 2781, to authorize the Secretary of the Interior to provide loan MANAGEMENT AND POLICIES ON FEDERAL guarantees for water supply, conservation, quality, LANDS and transmission projects; H.R. 3041, to supplement Committee on Resources: Held an oversight hearing on the Small Reclamation Projects Act of 1956 and to Federal Management and Policies on Federal Lands: supplement the Federal Reclamation Laws by provid- State Legislators’ Perspective. Testimony was heard ing for Federal cooperation in nonfederal projects from the following State Legislators: Robin Taylor, and for participation by nonfederal agencies in Fed- Senator, State of Alaska; James Hargrove, Represent- eral projects; H.R. 2819, Fort Peck Rural Country ative, State of Washington; Tim Leslie, Senator, Water Supply System Act of 1995; and a measure State of California; Bill Markham, Representative, to direct the Secretary of the Interior to convey State of Oregon; and Charles Cuddy, Representative, property in New Mexico to the Carlstad Irrigation State of Idaho. District. Testimony was heard from Eluid L. Mar- MISCELLANEOUS MEASURES tinez, Commissioner, Bureau of Reclamation, De- partment of the Interior; and public witnesses. Committee on Resources: Subcommittee on Fisheries, Wildlife and Oceans approved for full Committee ANTARCTIC ENVIRONMENTAL action the following bills: H.R. 2823, amended, PROTECTION ACT OF 1996 International Dolphin Conservation Program Act; Committee on Science: Held a hearing on H.R. 3060, H.R. 2909, Silvio O. Conte National Fish and Antarctic Environmental Protection Act of 1996. Wildlife Eminent Domain Prevention Act; and H.R. Testimony was heard from Neal Lane, Director, April 18, 1996 CONGRESSIONAL RECORD — DAILY DIGEST D337

NSF; Eileen Claussen, Assistant Secretary, Oceans Training, Department of Labor; Steve Lemons, Dep- and International Environmental and Scientific Af- uty Under Secretary, Veterans Benefits Administra- fairs, Department of State; and public witnesses. tion, Department of Veterans Affairs; and public FAA RESEARCH, ENGINEERING, AND witnesses. DEVELOPMENT AUTHORIZATION LONG-TERM CARE OPTIONS Committee on Science: Subcommittee on Technology held a hearing on FAA Research, Engineering and Committee on Ways and Means: Subcommittee on Development Fiscal Year 1997 Authorization and Health held a hearing on Long-Term Care Options. Management Reform. Testimony was heard from the Testimony was heard from Bruce Vladeck, Adminis- following officials of the FAA, Department of Trans- trator, Health Care Financing Administration, De- portation: David R. Hinson, Administrator; and partment of Health and Human Services; and public George L. Donohue, Associate Administrator, Re- witnesses. search and Acquisitions. DENIAL AND DECEPTION VENTURE CAPITAL MARKETING Permanent Select Committee on Intelligence: Met in execu- ASSOCIATION CHARTER ACT tive session to hold a hearing on Denial and Decep- Committee on Small Business: Subcommittee on Gov- tion. Testimony was heard from departmental wit- ernment Programs held a hearing on H.R. 2806, nesses. Venture Capital Marketing Association Charter Act. f Testimony was heard from public witnesses. COMMITTEE MEETINGS FOR FRIDAY, COMMITTEE BUSINESS APRIL 19, 1996 Committee on Standards of Official Conduct: Met in ex- (Committee meetings are open unless otherwise indicated) ecutive session to pending business. MISCELLANEOUS MEASURES Senate Committee on Veterans’ Affairs: Subcommittee on Edu- Committee on Indian Affairs, to continue hearings on the President’s proposed budget request for fiscal year 1997 cation, Training, Employment and Housing held a for Indian programs, 1:30 p.m., SR–485. hearing on the following: H.R. 2851, to amend title 38, United States Code, to provide for approval of House enrollment in courses offered at certain branches or Committee on Appropriations, Subcommittee on Labor, extensions of proprietary profit institutions of higher Health and Human Services, and Education, on the Na- learning in operation for more than two years; H.R. tional Heart, Lung and Blood Institute and on the Na- 2868, to amend title 38, United States Code, to tional Eye Institute, 10 a.m., 2358 Rayburn. make permanent alternative teacher certification pro- Subcommittee on Transportation, on Federal Aviation grams; and H.R. 3036, to amend title 38, United Administration, 10 a.m., 2358 Rayburn. States Code, to require that the offices for manage- Subcommittee on Veterans’ Affairs, Housing and ment, policy, and other functions associated with the Urban Development, and Independent Agencies, on the educational assistance programs of the Education Court of Veterans Appeals, the American Battle Monu- ments Commission and the Department of Defense— Service of the Department of Veterans Affairs be in Civil, Cemetarial Expenses, Army, 10 a.m., H–143 Cap- the District of Columbia. Testimony was heard from itol. Representative Tejeda; Carolyn Becraft, Deputy As- Committee on the Judiciary. Subcommittee on Commer- sistant Secretary, Personnel Support, Families and cial and Administrative Law, oversight hearing on the Education, Department of Defense; Preston Taylor, SSA’s Law Judges of Mobile, Alabama, 10 a.m., 2237 Assistant Secretary, Veterans Employment and Rayburn. D338 CONGRESSIONAL RECORD — DAILY DIGEST April 18, 1996

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 10 a.m., Friday, April 19 10 a.m., Friday, April 19

Senate Chamber House Chamber Program for Friday: After the recognition of two Sen- Program for Friday: No legislative business is sched- ators for speeches and the transaction of any morning uled. business (not to extend beyond 12 noon), Senate will consider S.J. Res. 21, proposing a constitutional amendment to limit congressional terms.

Extensions of Remarks, as inserted in this issue

HOUSE

Cooley, Wes, Ore., E569 Cunningham, Randy ‘‘Duke’’, Calif., E567 Hamilton, Lee H., Ind., E569 Kleczka, Gerald D., Wis., E570 Lantos, Tom, Calif., E568

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