E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 108 CONGRESS, FIRST SESSION

Vol. 149 WASHINGTON, TUESDAY, NOVEMBER 25, 2003 No. 174 Senate The Senate met at 8:15 a.m. and was Lord, thank You for all the beauty in Accept this our sacrifice of thanks- called to order by the President pro our world, for the loveliness of earth giving and praise, for the sake of Your tempore (Mr. STEVENS). and sea and sky. Thank You for great glorious name. Amen music and great books, for prose and f PRAYER poetry. Thank You for the nobility You The Chaplain, Dr. Barry C. Black, of- have placed in human hearts, for our PLEDGE OF ALLEGIANCE fered the following prayer: military people who love their country Eternal and dependable Creator, The PRESIDENT pro tempore led the until even self is forgotten. Thank You Pledge of Allegiance, as follows: giver of the abundant harvest, the ref- for Senators who struggle with com- uge of all who flee to You the helper of I pledge allegiance to the Flag of the plex issues and labor for a world at United States of America, and to the Repub- those in need and the one sure resource peace. in times of trouble. Thank You for har- lic for which it stands, one nation under God, monizing the world with seasons and Thank you for loved ones without indivisible, with liberty and justice for all. climates, sowing and reaping, color and whom life would never be the same. f fragrance. We praise You, for You are Lord, thank You also for obstacles, the substance that sustains us in each delays, challenges, trials, and even en- RECOGNITION OF THE MAJORITY of life’s seasons. In time’s rapid pass- emies that make us stronger. Above LEADER ing, remind us of life’s brevity and all, thank You for Your gift of salva- The PRESIDENT pro tempore. The teach us to number our days tion. majority leader is recognized.

NOTICE If the 108th Congress, 1st Session, adjourns sine die on or before December 9, 2003, a final issue of the Congressional Record for the 108th Congress, 1st Session, will be published on Monday, December 15, 2003, in order to permit Members to revise and extend their remarks. All material for insertion must be signed by the Member and delivered to the respective offices of the Official Reporters of Debates (Room HT–60 or S–410A of the Capitol), Monday through Friday, between the hours of 10:00 a.m. and 3:00 p.m. through Friday, December 12, 2003. The final issue will be dated Monday, December 15, 2003, and will be delivered on Tuesday, December 16, 2003. None of the material printed in the final issue of the Congressional Record may contain subject matter, or relate to any event that occurred after the sine die date. Senators’ statements should also be submitted electronically, either on a disk to accompany the signed statement, or by e-mail to the Official Reporters of Debates at ‘‘[email protected]’’. Members of the House of Representatives’ statements may also be submitted electronically by e-mail, to accompany the signed statement, and formatted according to the instructions for the Extensions of Remarks template at http:// clerkhouse.house.gov/forms. The Official Reporters will transmit to GPO the template formatted electronic file only after re- ceipt of, and authentication with, the hard copy, and signed manuscript. Deliver statements to the Official Reporters in Room HT–60 of the Capitol. Members of Congress desiring to purchase reprints of material submitted for inclusion in the Congressional Record may do so by contacting the Office of Congressional Publishing Services, at the Government Printing Office, on 512–0224, between the hours of 8:00 a.m. and 4:00 p.m. daily. By order of the Joint Committee on Printing. ROBERT W. NEY, Chairman.

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

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VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 0624 Sfmt 8633 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15882 CONGRESSIONAL RECORD — SENATE November 25, 2003 SCHEDULE this fine man is going to no longer be Barbara Burke, who operates the switch- board at the senior center, disparagingly Mr. FRIST. Mr. President, this morn- part of the Senate after 1 year. I believe there is no one who has a called the new benefit ‘‘a Band-Aid.’’ ing there will be 1 hour of debate prior It’s not enough with the high cost of medi- to the vote on adoption of the con- better grasp of this legislation than the Senator from Florida. He has done such cines,’’ said Burke, who said she’s still work- ference report to accompany H.R. 1, ing at 66 because she won’t be able to afford an outstanding job of articulating his the Medicare Prescription Drug Mod- her prescriptions if she retires. The center ernization Act. That vote will occur at views. does not pay health benefits for retirees, she 9:15 this morning. I will have more to Of course, I add a congratulatory said, and she has chronic lung disease that say about the bill on this important oc- note to Senator STABENOW who has costs her more than $200 a month for inhal- casion just prior to the vote. I thank worked on this measure long and hard. ers alone. all Members for their cooperation and Senator DURBIN has always done such ‘‘People that can’t afford to buy medica- tions should get it at a minimum charge,’’ participation throughout this debate. a good job of expressing his views. He was never any better than on this she said. . . . I also announce that we are con- issue. An Kim Hoang, 67, said she can’t afford a tinuing our efforts to act on the re- Mr. President, I reserve the last 5 copayment of $3 for a brand-name drug, maining appropriations bill. This minutes for Senator DASCHLE. I dele- which will be required under the new plan for morning, I will continue my discus- gate the rest of our time to the senior those below the poverty level. Those with in- sions with the Democratic leadership comes from $8,980 to $12,123 will face copay- Senator from Massachusetts. as to the possible consideration of that ments up to $5 per prescription. Seniors cur- The PRESIDENT pro tempore. Under bill. I will have more to say about this rently getting drug coverage through the the previous order, the last 5 minutes and the final schedule after the vote on MassHealth, the state-federal Medicaid pro- is reserved. gram for the poor, would be shifted to the final passage. Mr. KENNEDY. Mr. President, on the federal program. Having said that, we are prepared for question of time, we have the last 5 In fact, that is going to be eliminated the final closing remarks on this land- minutes. That will probably be leader mark legislation. in terms of coverage. That is part of time. The leader, obviously, ought to the 6 million low-income seniors who f have whatever time he needs. will pay more. Mr. REID. Mr. President, we have 23 RESERVATION OF LEADER TIME minutes on our side; 23 minutes on the Hoang, speaking through a translator, said she borrows from friends to cover the $2 co- The PRESIDENT pro tempore. Under other side. payment required by Medicaid for each of the previous order, leadership time is The PRESIDENT pro tempore. The the eight prescriptions she takes to treat reserved. Chair advises the Senator from Massa- mental illness. ‘‘$1 is OK,’’ she said, ‘‘but $2 f chusetts that the final 5 minutes of the is too much.’’ first half of the time is for the minor- This is the real world, Mr. President. MEDICARE PRESCRIPTION DRUG, ity leader, and the final 5 minutes of This is putting a face and name on the IMPROVEMENT, AND MOD- the debate time is for the majority 6 million low-income seniors who will ERNIZATION ACT OF 2003—CON- leader. pay more. FERENCE REPORT Mr. KENNEDY. I thank the Chair. ‘‘$1 is OK,’’ she said, ‘‘but $2 is too much.’’ The PRESIDENT pro tempore. Under Mr. President, I bring to the atten- the previous order, the Senate will re- tion of the Members a picturesque de- That was put in here to save some $12 sume consideration of the conference scription of what the reaction is to this billion to $15 billion put into a slush report to accompany H.R. 1, which the proposed legislation. It is written in a fund to provide additional benefits to clerk will report. very explicit article this morning in the HMOs. The legislative clerk read as follows: the Boston Globe. I want to share the Because of the Medicaid copayment, her article with the Members. friend Quy Nguyen, 71, said she limits herself Conference report to accompany H.R. 1, an The title is ‘‘In Dorchester, Seniors act to amend title XVIII of the Social Secu- to four prescriptions she needs most and rity Act to provide a voluntary prescription Weigh Changes Against Their Needs.’’ tries to get by without several others. She drug benefit under the Medicare Program It reads: said she envisions that choice becoming and to strengthen and improve the Medicare Thomas Lombardi dropped his private more difficult under [this program.] Program, and for other purposes. health insurance a few years ago when the Josephine DeSantis said the new benefit would help her immensely, since she strug- The PRESIDENT pro tempore. The price rose steeply. Then he switched from Coumadin, a prescription anticoagulant he gles to scrape together the $157 she spends Senator from Nevada is recognized. took for heart disease, to half an aspirin to every three months for drugs to prevent ul- Mr. REID. Mr. President, the major- save about $15 a month. Living on Social Se- cers and dizziness. But at 78, she said, she’s ity manager is not here. I have been curity and a bit of savings, Lombardi, 75, upset that the benefit won’t start until 2006. designated to be the opposition man- says he frequently has ‘‘to cut corners to ‘‘In two years,’’ she said, ‘‘I’ll probably be ager for the half hour that we have. In stay alive.’’ dead.’’ But over lunch at the Kit Clark Senior a short time, I will delegate that time There you have it, Mr. President, re- to the senior Senator from Massachu- Center in Dorchester, he said he doesn’t sup- port the $400 billion Medicare drug benefit action in a working class community setts. that is about to become law and provide cov- in Dorchester. We have the reaction in As we begin this half hour on our side erage to millions of seniors like him. Echo- real life about what the low-income and half hour on the other side, I ex- ing the comments of many others at the cen- seniors pay. tend my appreciation and that of the ter yesterday, he said it’s far too com- When we talk and bring out these whole Democratic caucus to Senator plicated and probably won’t go far enough to charts, as we have in the past few days, KENNEDY for leading the opposition, help him because of gaps in the coverage de- signed to keep down the cost of the new ben- this is the very instance about which literally, to this measure. He has had a we are talking. It did not have to be lot of help. I have sat through days of efit. Besides, many said, it will be two years before the full benefits kick in. this way. This is just an illustration of speeches on this matter and I have ‘‘I don’t believe it’s good for me,’’ said the overall challenges of this legisla- been impressed with the quality of the Lombardi, who owned a welding business in tion and a reason that it should not speeches, really, on both sides. Espe- Dorchester. pass the Senate. cially on our side, I have been im- ‘‘This is part of the Bush strategy to . . . How much time do I have, Mr. Presi- pressed with Senator KENNEDY, and I destroy programs put in place years ago,’’ dent? will mention a number of names who I Said Richard Schultz, who qualifies for thought did such a wonderful job: Sen- Medicare at 60 because he is disabled. ‘‘I un- The PRESIDENT pro tempore. The derstand that it would benefit some low-in- ators BAYH, BOXER, CANTWELL, CLIN- Senator has 15 minutes remaining. come people in the short term, but combined Mr. KENNEDY. Mr. President, I yield TON, DAYTON, DODD, HARKIN, PRYOR, with huge tax cuts, this is going to drive the NELSON of Florida, and GRAHAM of deficit up. Then they’re going to decide they 7 minutes to the Senator from Florida. Florida. What a loss it is going to be to don’t have the money, and, in the long run, The PRESIDENT pro tempore. The this institution and our country that the program will be dissolved’’. . . . Senator from Florida is recognized.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15883 Mr. GRAHAM of Florida. I thank the the high priority for 2004 should be to to how they will receive their drugs be Chair. give to the administrator of the Medi- the starting point of the agenda for re- Mr. President, I thank Senator KEN- care Program similar authority. form next year. NEDY. We have had a long and quite il- Second, I think we need to pass a Pa- The PRESIDENT pro tempore. The luminating debate over the past week tients’ Bill of Rights. If we are going to Senator’s time has expired. on one of the most important issues be herding millions of older Americans Who yields time? that our Nation faces; that is: Shall we into various forms of health manage- The Senator from Iowa. turn a program which for 40 years has ment, we have a responsibility to give Mr. GRASSLEY. Mr. President, I protected older Americans and disabled them some assurance as to what the yield myself such time as I might con- Americans against illness into a pro- standards of that access to health care sume. gram which promotes wellness? will be. First, I very much appreciate the In order to do that, we understand Third, we have a strange provision in passion of the opposition. Hopefully, that fundamentally we will have to here for the distribution of prescription they will look back on this day and make access to prescription drugs af- drugs. That is, we use private insur- come to the conclusion that we have fordable, comprehensive, universal, and ance programs rather than traditional not only provided prescription drugs reliable because prescription drugs are Medicare. It would be like having to for seniors as the first improvement in now fundamental to a preventive get a private insurance program to get Medicare in 38 years and the strength- health care policy. anesthesiology or any of the other ening of Medicare that follows it, but There is much to criticize about this services that have traditionally been that we are also in the process of giv- legislation, and I intend to vote no. We provided through Medicare. ing baby boomers an alternative Medi- have heard that at great length in re- Then, in order to encourage—I would care Program, if they would so choose. cent days. Let me take a slightly dif- say more than encourage—mandate the The basis of such legislation is the ferent approach. I am assuming that maximum number of Americans par- right to choose for seniors. No one is this legislation is going to pass. The ticipating in that program, we say forced to do anything. We will give challenge will then be before us: What there has to be at least one prescrip- those baby boomers a program that is do we do next? tion-only insurance provider in the re- much closer to the health insurance Let me suggest three things that we gion and, second, then a preferred pro- they have in the places from which ought to do next. One is that we have vider organization, essentially a vari- they retire. to look realistically at the cost of this ant of an HMO, in the region. It is only Regardless, there are two classes of bill. As Senator ENSIGN said during last if both of those fail, there is not one or people covered today or not covered night’s debate, the $400 billion figure is more drug-only insurance plan or a today with prescription drugs that we a mirage. This bill is going to cost sub- PPO, only under those circumstances are emphasizing. For low-income peo- stantially more than $400 billion. The will a person be able to consider using ple, too often our seniors are choosing Congressional Budget Office is esti- standard fee-for-service Medicare as between heat and prescription drugs, mating that in the second 10 years, it the means of getting their prescrip- particularly in the cold areas of the will be over $1 trillion. tions. country, or between food and prescrip- What are the suggestions of how to It is ironic that in another part of tion drugs. This legislation is going to deal with this reality? One of those this bill, which is going to create a lessen the chances that low-income suggestions is to reduce benefits. An- demonstration project on the totality people are going to have to make such other one is to set some type of a for- of Medicare, we line up all of the choices. mula relating Medicare expenditures to choices side by side, including staying The other group of people are those general revenue, and then scaling back in traditional fee for service, which who have catastrophically high pre- Medicare expenditures when they over 85 percent of Americans are elect- scription drug costs. There is heavy break through that barrier. ing to do, and then choose on an equal subsidy and help in this bill for those Of course, one of the things that we basis, as we do in the Federal health two categories of people. Those are sig- ought to have done in terms of cost is insurance program. We do not have to nificant categories of people. not start this year by passing a mas- wait until all of the other choices have Also, we are doing something for ev- sive tax cut which added substantially been rejected, because they are not erybody in this legislation from the to the Federal deficit and narrowed the being provided, and then drop back standpoint that for the first time there range of realistic options that we have into a Blue Cross/Blue Shield-type fee will be in place mechanisms to dra- today. for service. matically negotiate down the price of This has been truly an amazing year We ought to do the same thing with drugs. That is obviously going to help for the Congress and the President. We prescription drugs. If we are going to the people who voluntarily choose to started the year with a proposal for al- have what I think is a rather irrational go into these plans, but the extent to most a $1 trillion tax cut. We re- program—incidentally, the prescrip- which that is going to have an impact asserted our commitment to fight and tion drug-only proposal is not in exist- on everybody, old or young, is very im- win a war against terror in Afghani- ence in any other area of American portant because all I hear from oppo- stan. We started a war in Iraq. We have health care. A person cannot buy that nents of this bill is that we do not do seen surging Federal Government ex- through the Federal health care sys- anything to help cut down on the costs penditures in the nondefense area, and tem. A person cannot buy it through of drugs. now on what will likely be the last day their employer system. The reason We do it through the subsidy. We do of the session, we conclude by passing they cannot buy it is because no insur- it through negotiations. We do it a $400 billion unfunded new entitle- ance company is providing it. That through getting generic drugs on the ment. ought to tell us something about what market much sooner than before. My answer to the question of cost, at they think of the management and fis- Also, this bill is about enhancing least a significant part of it, lies in the cal implications of providing a drug- quality of life, because none of us think fact that in this bill we are failing to only prescription plan. the quality of life is enhanced by put- sanction the use of the tremendous At least we should not require our ting people in the hospital if they do marketing influence which the Federal oldest citizens to go through a so- not need to go to the hospital. Government, through the Medicare called fallback process. We should Remember when Medicare was en- Program, can have over the cost of pre- allow older citizens to assess all of the acted 38 years ago, the practice of med- scription drugs. options at the same time and make the icine was to put everybody into the Just as we did over 10 years ago—and decision they consider to be in their hospital. Today, the practice of medi- the Presiding Officer’s colleague, Sen- best interest. cine—and a lot of the thanks can go to ator MURKOWSKI, was a prime sponsor As I conclude this long debate, I urge prescription drugs—is to keep people of this legislation—we authorized the that the agenda of cost, patients’ out of hospitals and out of operating VA to negotiate to get the best prices rights, and providing the more rational rooms. So people who cannot afford it could for American veterans. I think process for elderly determinations as drugs, who go to the doctor very sick,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15884 CONGRESSIONAL RECORD — SENATE November 25, 2003 are going to not only end up in a place side of the aisle are complaining about both brand-name and generic drug they do not want to go, because people a donut hole. But for low-income peo- companies have exploited certain as- would rather not go to hospitals, rath- ple there is no donut hole. The bill pects of the Hatch-Waxman Act to er not go to operating rooms. It is guarantees all 6 million dual eligibles delay generic competition. The going to save our programs a lot of access to prescription drugs. changes to the Hatch-Waxman Act money, both private and public pay- Under our conference report, dual eli- found in Title XI represent refinements ment programs, for doctors and hos- gibles will have better access through to the present system that will stop pitals, when we can have people go into Medicare, especially since State Med- these abuses, will restore the original programs where they can get prescrip- icaid programs are increasingly impos- balance the law intended, and will en- tion drugs and keep their health up so ing restrictions on patients’ access to sure Americans more timely access to they do not go to the hospital. drugs, and that is what brings about affordable pharmaceuticals. So we are bringing Medicare and the greater inequity from State to State. Most significantly, the Hatch-Wax- practice of medicine into the 21st cen- Since States are in a budget crunch, man provisions in this bill limit brand- tury. In strengthening and improving forced to do that, some dual eligibles name drug companies to only one 30- Medicare, we are doing today exactly might be treated less generously in one month stay of approval of generic what we would be doing if we were State as opposed to another, but when drugs. This change will stop the mul- writing a Medicare Program in the they are all under the Federal Medi- tiple, successive 30-month stays that year 2003 as opposed to the year 1965. care Program, that will not be the the Federal Trade Commission identi- I hope the opponents, in a few years, case. fied as having delayed approval of ge- Further, States have the flexibility can look back and say this is the day neric versions of several blockbuster to provide coverage for classes of we have done the right thing for sen- drugs and cost consumers billions of drugs, including over-the-counter iors, for their economic life, for the dollars. drugs, that are not now covered by the quality of their life; we have done the It also restructures how the 180-day Medicare Program. This bill ensures right thing for our hospitals and our generic exclusivity provisions work. appeal rights for dual eligibles. Under doctors; we have done the right thing The 180-day exclusivity gives a generic the agreement, dual eligibles will for America. company 180 days during which it is maintain appeals rights like those in I would like to spend just a little bit the only generic competitor to the the Medicaid Program. The dual eligi- of time counteracting the arguments brand drug. The exclusivity is a very bles are a fragile population and I that are used against this bill by those valuable incentive for generic compa- think, because of the conference report who say we are not doing enough for nies. The exclusivity encourages ge- as opposed to either bill in its original low-income people. In fact, this bill is neric companies to challenge patents form, they are taken care of better in coming back from conference doing this bill. The conference report recog- that are likely invalid or not infringed better for low-income people than when nizes and provides generous coverage and, because it goes to the first generic it went into conference. applicant to challenge a brand-name One of those major changes that were to these 6 million people. I hope we can take the summation of drug patent, it encourages challenges made, not only at the behest of the the AARP when they said this bill ‘‘is of those patents as soon as possible. House of Representatives but also at a historic breakthrough and [an] im- These incentives mean that consumers the behest of a lot of people in this portant milestone in the Nation’s com- will be able to enjoy the lower prices body, probably more prominent in the mitment to strengthen and expand provided by generic companies sooner Democratic Party than in the Repub- health security for its citizens. . . .’’ I rather than later. lican Party, was to make sure the cat- hope that will be conceived or consid- The Federal Trade Commission re- egory of people we call dual eligibles— ered as a toning down of the partisan ports that the exclusivity has at times those low-income seniors who are al- opposition to this legislation. been parked through collusive agree- ready on Medicare but also qualify for I reserve the remainder of my time ments between brand and generic com- Medicaid—is to put all of those into just in case some colleagues come over. panies. Parking the exclusivity has the Medicare Program so we didn’t I have more to say, but I will say it blocked other generic companies from have an inequality. Maybe it was not a later if other colleagues don’t show up, getting to market and has cost con- very big inequality but at least there so I yield the floor. sumers billions of dollars. The Hatch- was some inequality from one State to TITLE XI Waxman provisions in this bill are in- another State because of the Federal- Mr. KENNEDY. Mr. President, I op- tended to prevent parking of the exclu- State partnership in Medicaid that en- pose the Medicare bill before the Sen- sivity. It does this by providing for sev- ables the State legislatures in some ate, but I want to express my under- eral situations in which a generic com- States to maybe set up a little dif- standing of the refinements of the pany with the exclusivity forfeits the ferent program—a little more rich, a Hatch-Waxman Act found in Title XI of exclusivity, clearing the way for other little less rich—than what might be the Medicare bill now before the Sen- generic companies to bring their prod- done in another State. ate. I was deeply involved in the nego- ucts to market. So dual eligibles are in this bill be- tiations of these provisions in the con- The Hatch-Waxman provisions in this cause of the demands of mostly Demo- ference. The Hatch-Waxman Act, which bill also make the exclusivity available crat Senators and people in the House passed in 1984, reflects efforts by the only with respect to the patent or pat- of Representatives. That is something I Congress to promote two policy objec- ents challenged on the first day generic didn’t believe should be done, but I sup- tives: to encourage brand-name phar- applicants challenge brand drug pat- ported it because that was a necessary maceutical firms to make the invest- ents, which makes the exclusivity a compromise. But now I find people who ments necessary to research and de- product-by-product exclusivity rather were advocating that position com- velop new drug products, and to enable than a patent-by-patent exclusivity, plaining about the legislation. So I competitors to bring cheaper, generic and the exclusivity is available to want to tell them how wrong they are copies of those drugs to market as more than one generic applicant, if or how, if they are right just a little quickly as possible. they all challenge patents on the same bit, they are right in such an insignifi- The Hatch-Waxman Act has worked day. cant way that it is immaterial because very well for almost 20 years. It has Mr. SCHUMER. Mr. President, will that ought to be seen as something provided the incentives necessary to the Senator yield for a question? that results from something they bring the many medicines to market Mr. KENNEDY. Yes, I will yield to wanted us to do in this legislation. that have so transformed the shape of my friend from New York. This conference report, then, con- modern medical practice. And it has Mr. SCHUMER. Thank you, Mr. tains a generous drug benefit for these brought generic drugs to market faster President. Let my just say, before I ask dually eligible seniors. There is, first of than ever, saving consumers billions of my question, that I want to thank the all, no donut hole for low-income Medi- dollars. Senator from Massachusetts, and the care beneficiaries. Let’s get this clear. As the Federal Trade Commission senior Senator from New Hampshire, Let me make it clear. People on that has shown, however, in recent years for their leadership on this issue. The

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15885 Senator from Massachusetts, as chair are retained in modified form by the controversy.’’ The sole purpose of re- of the HELP Committee last year, took conferees in the conference report now quiring the passage of 45 days is to pro- up the generic drug bill authored by before the Senate. Amendments made vide the patent owner and brand-name the senior Senator from Arizona and by this bill to both the Federal Food, drug company the first opportunity to myself, saw it through the HELP Com- Drug, and Cosmetic Act and Title 35 begin patent litigation. Inaction within mittee, and managed its passage by the clarify that generic applicants may the 45-day period proves nothing, as full Senate. This year, the senior Sen- bring declaratory judgment acts to en- there are tactical reasons why a patent ator from New Hampshire approached sure timely resolution of patent dis- owner or brand drug company might me to work together to come up with putes. These provisions authorize a ge- refrain from bringing suit on a patent the generic drug bill that served as the neric applicant to bring a declaratory within 45 days. basis for what is in this bill, and he judgment action to obtain a judicial For example, the brand drug com- brought it through the HELP Com- determination that a listed patent is pany might have several patents listed mittee, offered it as an amendment to invalid or is not infringed if the appli- in the Food and Drug Administration’s the prescription drug bill in the Sen- cant is not sued within 45 days of hav- Orange Book with respect to a par- ate, where it was accepted 94–1, and de- ing given notice to the patent owner ticular drug. It could be in the com- fended it very ably in conference with and brand-name drug company that it pany’s interest to bring suit within 45 the House. So, again, I would like to is challenging the patent. This clari- days on one patent and to hold the oth- thank both distinguished chair and fication of a generic applicants right to ers in reserve. The suit on one patent ranking member of the HELP Com- bring a declaratory judgment action is would automatically stay approval of mittee for their leadership on this crucial to ensuring prompt resolution the generic application until the law- issue. of patent issues, which is essential to suit is resolved or the 30 months Of course, I also want to thank the achieve our goal of speeding generic elapses. Holding the other patents in senior Senator from Arizona, without drugs to market. reserve would introduce uncertainty whose leadership over the past several It’s worth pointing out that the that could discourage generic compa- years we would not be where we are Hatch-Waxman Act has always pro- nies from devoting resources to bring today on such an important consumer vided that patent owners and brand the generic drug to market and that issue. drug companies can bring patent in- would give the brand drug company a As for my question, I understand that fringement suits against a generic ap- second opportunity to delay generic a generic applicant that has the 180- plicant immediately upon receiving no- competition by suing the generic com- day exclusivity will forfeit the exclu- tice that the generic applicant is chal- pany for infringement of the reserved sivity if it has failed to market its lenging a patent. The declaratory judg- patents after the resolution of the ini- product 75 days after certain events ment provisions in Title XI of this bill tial infringement suit. have happened with respect to itself or simply level the playing field by mak- Or for patents on which no 30-month another generic applicant and with re- ing it clear that the generic applicant stay is available, the brand drug com- spect to each of the patents that gives can also seek a prompt resolution of pany could sit back to create uncer- the generic applicant its generic exclu- these patent issues by bringing a de- tainty and similarly delay generic sivity. Is that correct? claratory judgment action if neither entry by delaying resolution of those Mr. KENNEDY. That is correct. the patent owner nor the brand drug patents. Or when generic applicants are Mr. SCHUMER. And am I correct company brings such a suit within 45 blocked by a first generic applicant’s that one of these events is when ‘‘a days after receiving notice of the pat- 180-day exclusivity, the brand drug court enters a final decision’’ that the ent challenge. company could choose not to sue those patent is invalid or not infringed by Mr. MCCAIN. Mr. President, will the other generic applicants so as to delay the drug of the generic applicant? Senator yield for a question? a final court decision that could trig- Mr. KENNEDY. The Senator is cor- Mr. KENNEDY. Yes, I will yield. ger the ‘‘failure to market’’ provision rect. Mr. MCCAIN. Will the Senator please and force the first generic to market. Mr. SCHUMER. And am I correct explain for me and our colleagues the In each of these and in other cir- that a final court decision under this purpose of the provision in Title XI cumstances, generic applicants must be provision includes the kind of court de- that amends Title 35 to say that courts able to seek a resolution of disputes in- cision recognized in the Teva v. must hear declaratory judgment ac- volving all patents listed in the Orange Shalala opinion? tions brought by generic applicants? Book with respect to the drug imme- Mr. KENNEDY. Yes, I very much ap- Mr. KENNEDY. Certainly. The provi- diately upon the expiration of the 45- preciate your question on this point. sion in Title 35 is intended to clarify day period. We believe there can be a We do intend that a court decision like that Federal district courts are to en- case or controversy sufficient for the one in the D.C. Circuit’s 1999 deci- tertain such suits for declaratory judg- courts to hear these cases merely be- sion in Teva v. Shalala—a decision dis- ments so long as there is a ‘‘case or cause the patents at issue have been missing a declaratory judgment action controversy’’ under Article III of the listed in the FDA Orange Book, and be- for lack of subject matter jurisdiction Constitution. We fully expect that, in cause the statutory scheme of the because the patent owner has rep- almost all situations where a generic Hatch-Waxman Act relies on early res- resented that the patent is not in- applicant has challenged a patent and olution of patent disputes. The declara- fringed—will count as a court decision not been sued for patent infringement, tory judgment provisions in this bill under the new ‘‘failure to market’’ pro- a claim by the generic applicant seek- are intended to encourage such early vision. Under the failure to market ing declaratory judgment on the patent resolution of patent disputes. provision, the conditions for forfeiture will give rise to a justiciable ‘‘case or Mr. MCCAIN. Mr. President, will the are intended to be satisfied when a ge- controversy’’ under the Constitution. distinguished Senator yield? neric company has resolved patent dis- We believe that the only circumstance Mr. KENNEDY. Yes, I will yield. putes on all the patents that earned in which a case or controversy might Mr. MCCAIN. Mr. President, I’d like the first-to-file its exclusivity. After a not exist would arise in the rare cir- to ask the Senator if it is the intent of court decision such as that at issue in cumstance in which the patent owner this legislation that the declaratory Teva v. Shalala, the patent owner is es- and brand drug company have given judgment provisions in this bill, in par- topped from suing the generic appli- the generic applicant a covenant not to ticular, the change to Title 35, will be cant in the future and the patent dis- sue, or otherwise formally acknowledge available immediately to help generic pute is resolved. So these sorts of deci- that the generic applicant’s drug does drug applicants who are now in federal sions should be recognized as court de- not infringe. court seeking declaratory judgments cisions under the failure to market The mere fact that neither the pat- that listed drug patents are invalid or provision. ent owner nor the brand drug company are not infringed by their product? I’d also like to point out the impor- has brought a patent infringement suit Mr. KENNEDY. I agree with the dis- tance of the declaratory judgment pro- within 45 days against a generic appli- tinguished Senator from Arizona. It is visions that are in the Senate bill and cant does not mean there is no ‘‘case or clearly our intent that, under these

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15886 CONGRESSIONAL RECORD — SENATE November 25, 2003 provisions, courts considering jurisdic- tory judgment, a subsequent generic appli- class, unless the category or class only tional challenges to declaratory judg- cant that develops a clearly non-infringing has one drug and that the plan must ment actions brought by generic drug product cannot trigger the first generic ap- use pharmacy and therapeutic commit- plicant’s exclusivity because the subsequent tees that consist of practicing physi- companies should apply the standards generic applicant will not be sued for patent set forth in this bill to such challenges infringement by the brand-name company. If cians and pharmacists to design their in any case pending (either in the trial the brand-name company and the first ge- formularies? court or on appeal) at the time of en- neric applicant agree that the generic will Mr. BAUCUS. Yes, this is true. It is actment in order to resolve patent not begin commercial marketing, then the also true that the Secretary is pre- issues as soon as possible and to clear 180-day exclusivity becomes an absolute bar vented from approving a drug plan that the way for quicker generic entry. to any general entrant. Moreover, speedier charges too high of a premium. The Mr. MCCAIN. I thank the Senator for resolution of patent infringement suits will premium must reasonably and equi- his answer and for his leadership on redound to the benefit of consumers by re- tably reflect the costs of the benefits. solving any possible uncertainty that pre- Mr. GRASSLEY. Isn’t this require- these issues. His experience and tech- vents a generic applicant from marketing its nical expertise have been invaluable. I ment the same standard that applies to products. If also will allow for the simulta- the Federal Employees Health Benefits would also like to thank my friend, the neous running of the periods for FDA ap- senior Senator from New York, who proval and for the resolutions of patent in- Plan? has worked with me these many years fringement issues. Mr. BAUCUS. Yes, the same one. And on this legislation. His dedication to For these reasons, I believes the declara- I think it is also important to note that conference report has a require- American consumers and his commit- tory judgment provision in the Senate- passed bill would be a useful mechanism to ment for a Government-backed fall- ment to restoring fairness to the drug reduce uncertainty in the Hatch-Waxman back plan if fewer than two plans are industry must be commended. The sen- process and potentially could speed access of available. This Government-backed ior Senator from New Hampshire must generic drugs to consumers. plan is required to negotiate prices also be recognized for leadership on Sincerely, with drug manufacturers. And if the this issue in his committee, in the Sen- TIMOTHY J. MURIS. fallback plan is unable to negotiate ate, and in the conference on this bill. Mr. BAUCUS. Mr. President, one of good discounts on its own, then the I would also like to thank the staffs of the criticisms that some have raised Secretary will be able to intervene as all three of these Senators, who have about the conference report is the pro- appropriate to negotiate to achieve worked tirelessly on behalf of this vision that prevents the Department of lower prices. issue. I ask unanimous consent that a Health and Human Services Secretary Mrs. FEINSTEIN. In addition, I also letter from Chairman Muris of the Fed- from interfering in the negotiations be- think it is important to note that the eral Trade Commission about the value tween private prescription drug plans, Congressional Budget Office has esti- of the declaratory judgment provision drug manufacturers, and pharmacies. mated that the net price increase for in Title 35 be printed in the RECORD. Mrs. FEINSTEIN. Yes, we have heard prescription drugs under this bill will There being no objection, the mate- this criticism often during the debate. be 3.5 percent. CBO also found that rial was ordered to be printed in the And I believe it is important to clarify drug plans bearing full statutory risk RECORD, as follows: that this bill will ensure that seniors levels are estimated to produce an FEDERAL TRADE COMMISSION, pay less for prescription drugs than overall higher cost savings of 20 to 25 Washington, DC, October 21, 2003. they pay today. percent for prescription drugs under Hon. JUDD GREGG, Mr. BAUCUS. I also believe it is im- this bill, as compared to the 12 to 15 Hon. EDWARD M. KENNEDY, portant that we clarify the purpose of Senate Committee on Health, Education, Labor, percent that CBO believes is achieved the non-interference language. This by private prescription benefit man- and Pensions, Washington, DC. language is not intended to pad the DEAR CHAIRMAN GREGG AND RANKING MEM- agers today. According to CBO, pre- BER KENNEDY: In written testimony sub- pockets of drug manufactures. It is not scription drug prices would be cheaper mitted to the Senate Judiciary Committee intended to pad the pockets of the in- under this bill. I would like my col- on August 1, 2003, for a hearing entitled, ‘‘Ex- surance companies. leagues to know that should CBO’s es- amining the Senate and House Versions of Mr. GRASSLEY. The purpose of this timates of the higher savings by drug the ‘Greater Access to Affordable Pharma- bill is to ensure that Medicare bene- plans in this bill prove to overestimate ceuticals Act,’ ’’ the Federal Trade Commis- ficiaries get the benefit of negotiated sion commented on both the Senate and prescription drug savings to seniors, I discounts that the private sector is intend to introduce legislation that House-passed bills that reform the Hatch- able to achieve. We want seniors, who Waxman generic drug approval process. The will provide seniors with lower drug reforms are nearly identical to recommenda- today pay the highest prices, to have prices. tions contained in the FTC’s July 2002 study access to discounted prices. And we Mr. GRASSLEY. Yes, CBO estimates entitled, ‘‘Generic Drug Entry Prior to Pat- also don’t want to see the situation we that under the conference report sen- ent Expiration.’’ have today with Part B covered drugs. iors will be offered average greater sav- I understand that one particular provision Isn’t it true that the Federal Govern- ings under the Senate bill. The price contained in the Senate-passed version is of ment dramatically overpays for the for prescription drugs will almost cer- particular interest now on the bills proceed drugs that are currently covered under through the conference process. Specifically, tainly be lower than the prices seniors the Senate bill adds a provision clarifying Medicare today? who do not have drug coverage pay that if a brand-name company fails to bring Mr. BAUCUS. Yes, that is true. The today. an infringement action within 45 days of re- HHS Inspector General has been urging COMPANY-OWNED LIFE INSURANCE ceiving notice of an abbreviated new drug ap- Congress to end these overpayments Mr. CONRAD. Mr. President, I rise to plication (ANDA) containing a paragraph IV for years. The conference report ad- engage the chairman of the Finance certification, the generic applicant can bring dresses these overpayments, while en- Committee in a colloquy regarding a declaratory judgment action that the pat- suring fair reimbursements for pending committee action with respect ent is invalid or not infringed. Without com- oncologists and other affected physi- to the tax treatment of company- menting on the provision’s constitutionality, cians to ensure that patient care re- the Commission has stated that ‘‘the Senate owned life insurance, COLI. Let me provision may help ensure that a federal mains unaffected. Moreover, I think it again express my appreciation for the court has subject matter jurisdiction to re- is important that members of Congress efforts the chairman made on October 1 solve the patent issues.’’ understand the strong consumer pro- in securing the committee’s unanimous While I defer to others as to the constitu- tections that are in place to ensure consent to conduct a hearing on issues tionality of the Senate provision, I note that that they receive access to an afford- surrounding COLI and to mark up a a court’s dismissal of a declaratory judgment able drug plan, one that provides ac- COLI provision shortly thereafter. action for lack of controversy may resolve cess to the prescription drugs that they Mr. GRASSLEY. I thank the Sen- uncertainty concerning whether a generic product infringes a brand-name company’s need. ator. patent. It also can reduce the incentives for Mrs. FEINSTEIN. Isn’t it also true Mr. CONRAD. I welcomed the oppor- the brand-name company and the first ge- that if a plan chooses to use a for- tunity the chairman provided in the neric applicant to park the 180-day exclu- mulary, it must include at least two committee hearing on COLI that oc- sivity. Without the right to seek a declara- drugs in each therapeutic category or curred on October 23. By the end of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15887 that hearing, I believe committee submit for the RECORD. Is it your un- The difference between the AWP and the ac- members had a solid grasp of the legiti- derstanding that the payment expense tual sales price often results in a profit to mate problems that still remain after increases will allow efficient cancer providers when they administer such drugs. the numerous legislative reforms of care providers to continue serving can- For example, an oncologist may buy a chem- otherapy agent, called doxirubicin, for about COLI over the last 20 years. cer patients and not close their doors? $10.00, while Medicare’s reimbursement for Mr. GRASSLEY. I agree. The hearing Mr. GRASSLEY. Yes. I would also that same dose was approximately $42.00, re- was informative and prepared the com- note that the Senator from Kansas, Mr. sulting in a profit to the physician of $32.00. mittee to come to an agreement on the BROWNBACK, has some concerns over Because beneficiaries must pay 20% co-pay- reforms that ought to take place. this issue. He has been a forceful advo- ments on Medicare covered drugs, bene- Mr. CONRAD. Since the hearing, the cate for the oncology community. And ficiaries are paying $8.40 for a dose of chairman and I have worked toward while I think the package for cancer doxirubicin. That is 20% of the $42.00, rather the development of a COLI proposal care is a fair one, I understand that he than 20% of the $10.00 that the oncologist that would garner the support of the paid for the drug, which is $2.00. The HHS In- has some concerns. spector General estimated that inflated broadest possible consensus in the com- Mr. BROWNBACK. I thank the chair- AWPs caused beneficiaries to pay an extra mittee and in the full Senate. I believe man, both for his commitment to this $175 million in coinsurance in 2001. that last week we were close to an legislaiton and for keeping my staff The Medicare conference agreement re- agreement on a proposal that re- and me informed throughout the draft- forms the Part B drug payment system, sav- sponded to every legitimate criticism ing of these provisions. I would note ing $4.2 billion from the oncology specialty of COLI heard during the course of the that from the time he first spoke on over the 10-year period 2004–2013. This reform October 23 hearing. this issue during consideration of the is effected mostly by using an Average Sales I regret that the crush of Finance Price (ASP) system, which accounts for the tax bill the chairman has expressed his true costs of these drugs. An additional $7.3 Committee legislation on the Senate intent to, ‘‘ensure that seniors and billion is saved by applying these reforms to floor in October and November has so their caregivers have adequate pay- other physician specialities. Most of these far prevented the chairman from sched- ment for, and continued access to, im- savings occur in the later years of the budget uling a markup. Unfortunately, it is portant cancer therapies.’’ I would ask window. Under the Medicare conference now clear that the markup agreed to of the chairman, is it his intent that agreement, oncologists will recieve an ap- on October 1 cannot before the end of the changes to outpatient drug reim- proximate $100 million increase in payments this session of Congress. bursement in Sections 303 and 304 of in 2004, net of reductions in reimbursement Mr. GRASSLEY. I share this regret. for Part B drugs. this bill will not have a significantly Following is an estimated overview of Let me pledge to have this markup on adverse impact on access to cancer what oncologists will receive in increased a COLI provision at the Finance Com- treatment? practice expense payments, starting in 2004. mittee’s first opportunity in 2004. I Mr. GRASSLEY. The Senator from 2004: Approximately $500 million increase look forward to completing the action Kansas is correct. My commitment to in practice expense (increase to oncology in we began in October. cancer patients has not changed. In- 2004, net of drug payment reductions, is CANCER CARE REIMBURSEMENT deed, according to estimates from the about $100m). 2005: ASP+6%; approximately $600 million Mrs. FEINSTEIN. Mr. President, the Congressional Budget Office, this bill is increase ($200m for Average Sales Price+6%, Medicare conference report, which in- expected to actually increase net pay- $400m increase in practice expense). cludes a reform of the Part B drug pay- ments to oncologists in 2004. Also, CBO 2006 and thereafter: ASP+6%; approximate ment system, includes significant pay- estimates that the new Average Sales $560 million increase ($200m for Average ment reductions to providers of cancer Price Reimbursement model, when Sales Price+6%, $360m increase in practice care. I understand that Senator GRASS- coupled with the changes in practice expense). LEY does not intend for these payment expense reimbursement, will amount to FORMULARIES FOR MEDICARE BENEFICIARIES reductions to force efficient cancer net reductions to cancer care of $4.2 LIVING WITH HIV/AIDS clinics to close, jeopardizing access to billion over the next 10 years. Mrs. FEINSTEIN. Mr. President, I care for thousands of cancer patients. Mr. BROWNBACK. I would like to am concerned about the impact the Mr. GRASSLEY. That is correct, thank my friends for the progress that Medicare conference report will have Senator. The Medicare conference was made in the conference. The bill on low-income Medicare beneficiaries agreement contains a number of sig- passed by the Senate several months who are living with HIV/AIDS. I have nificant reforms, which will save bil- ago contained a net cut of $16 billion as heard a lot of opposition to this bill lions of dollars in overpayments from a result of Part B drug payment re- from the HIV/AIDS community. My Medicare covered drugs, while also sub- forms. The reduction in the Conference concern is with their access to drug stantially increasing payments to phy- report before us is now $11.4 billion. treatment therapy under the Medicare sicians. I intend to preserve continued However, I would also note to my prescription drug benefit. Is it your un- access to high-quality cancer care. friend from Iowa that the Secretary of derstanding that the Medicare con- Mrs. FEINSTEIN. Many physicians Health and Human Services is given ference report will not prevent low-in- depend on overpayments on Part B the discretion to reduce reimburse- come Medicare beneficiaries who are drugs to make up for inadequate prac- ments further based on studies living with HIV/AIDS from getting all tice expenses. Is it the intent of the preformed by the Inspector General of the drugs they need through Medicare Senator from Montana that physicians’ the Department. I would ask my friend Part D? practice expenses will be increased suf- if it was the intent of the conferees Mr. BAUCUS. That is correct, Sen- ficient to ensure access to care? that any future adjustments to the re- ator. One of the things I am particu- Mr. BAUCUS. Yes, that is my intent. imbursements be based on average of larly proud about in this bill is the And I am committed to monitoring prices available to and paid by a wide strong beneficiary protections that will this new payment system as it is im- range of physicians in the marketplace. ensure that all Medicare beneficiaries plemented, in order to ensure access to Mr. GRASSLEY. The Senator is cor- get access to the appropriate medicine high-quality cancer care. rect. they need. You know, Senator GRASS- Mrs. FEINSTEIN. Is it the intent Mr. BROWNBACK. I thank my LEY, that there are certain diseases and that if this new payment system does friends. conditions—like AIDS, and epilepsy— not suffice to ensure access to care, Mrs. FEINSTEIN. I ask unanimous where having access to just the right that you will revisit the system and re- consent to print the following in the medicine is especially important. vise the payment methodology? RECORD. Mr. GRASSLEY. I did know that, and Mr. BAUCUS. That is correct. There being no objection, the mate- I know that certain mental illnesses Mrs. FEINSTEIN. Finally, it is my rial was ordered to be printed in the also fall in that category. This bill con- understanding that practice expense RECORD, as follows: tains a number of protections for peo- increases for oncology are expected to MEDICARE CONFERENCE REPORT CANCER CARE ple who need exactly the right medi- be about $500 million in 2004, $600 mil- CHANGES cine for them. lion in 2005, and $560 million in 2006, as Payments for Part B drugs are currently Mrs. FEINSTEIN. Victims of HIV/ shown in the summary which I will based on Average Wholesale Price (AWP). AIDS are somewhat unique since the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15888 CONGRESSIONAL RECORD — SENATE November 25, 2003 treatment for HIV/AIDS varies with adverse effects. As a result, access to efit are more comprehensive than the protec- the individual. To be clear, no low-in- all drugs in a category or class will be tions now required of State Medicaid pro- come Medicare beneficiaries who have available to a beneficiary when need- grams. This will ensure access to a wide range of drugs. For example, there are exten- HIV/AIDS will be denied access to the ed.’’ sive information requirements so that bene- drugs they need in Medicare Part D? Is this your understanding as well? ficiaries will know the drugs the plan covers Mr. BAUCUS. Exactly. The bill asks Mr. BAUCUS. Absolutely. before they enroll in the plan. Beneficiaries the US Pharmocopeia to develop model Mr. GRASSLEY. I agree. can also appeal to obtain coverage for a drug formularies with therapeutic classes Mrs. FEINSTEIN. I thank the distin- that is not on their plan’s formulary if the that can’t be gamed. Then we require guished Senators from Montana and prescribing physician determines that the drug plans to offer at least two drugs Iowa. formulary drug is not as effective for the in- in each therapeutic class. And for I ask unanimous consent to print the dividual as another drug, or if there are ad- verse effects. As a result, access to all drugs drugs that treat AIDS, epilepsy, or above-referenced letter in the RECORD. There being no objection, the mate- in a category or class will be available to a mental illness, we would expect that beneficiary when needed. plans would carry all clinically appro- rial was ordered to be printed in the On the other hand, because of the optional priate drugs. RECORD, as follows: nature of the Medicaid drug benefit today, Mr. GRASSLEY. I agree. And I am DEPARTMENT OF HEALTH AND HUMAN States can drop their drug benefit entirely, pleased with the backup protections in SERVICES, OFFICE OF THE ASSIST- as well as restrict access to their drug plan this bill. That if a plan doesn’t carry or ANT SECRETARY FOR LEGISLATION, through preferred drug lists or prior author- doesn’t treat as preferred a drug needed Washington, DC. ization processes. According to the IG, from Hon. DIANNE FEINSTEIN, 1997 to 2001, Medicaid expenditures for pre- by, say, a person with AIDS, a simple U.S. Senate, scription drugs grew at more than twice the note from a doctor explaining the med- Washington, DC. rate of total Medicaid spending. This has put ical need for that particular drug could DEAR SENATOR FEINSTEIN: Recently, you extreme pressures on state budgets and has get that drug covered. have expressed concern with the Conference led to Medicaid coverage restrictions for Mrs. FEINSTEIN. Will that apply to Report over access to drugs for individuals drugs and the use of cost control measures all covered drugs required by a person living with HIV/AIDS. Your major concern that will not be used in the Part D program. with HIV/AIDS and in all cases? appears to be whether or not individuals liv- For example, eighteen States contain Med- Mr. BAUCUS. That is correct. These ing with HIV/AIDS will have access to all icaid drug costs by limiting the number of drugs within a therapeutic class under the prescriptions filled in a specific time period, beneficiary protections are crucial for Conference Report and whether or not a Pre- limiting the maximum daily dosage or lim- these vulnerable Medicare bene- scription Drug Plan (PDP) could limit the iting the frequency of dispensing a drug. ficiaries. I would expect that the Sec- number of drugs that are covered within a Some states also limit the number of refills. retary will take into account their spe- therapeutic class. You also expressed con- In addition, six States have pharmacy lock- cial medication needs when he writes cern that dual eligible individuals will lose in programs, which require beneficiaries to regulations on this provision and when the coverage that is currently available to fill their prescriptions in one designated he is evaluating plan bids. If a plan them in Medicaid if they enroll in any of the pharmacy. can’t adequately ensure all of the prop- new Medicare drug plans. The new Medicaid benefit will not result in Let me assure you that in the Conference a loss of coverage for dual eligibles. In fact, er medication for beneficiaries living Report there are significant safeguards in the Conference Report provides generous with HIV/AIDS, epilepsy, and certain place for the development of PDP coverage to dual eligibles. The Report pre- mental illnesses, that plan should not formularies to ensure a wide range of drugs serves the universality of Medicare for all el- be doing business with Medicare. will be available to Medicare beneficiaries. igible beneficiaries including those dually el- Mr. GRASSLEY. I agree with my These plans will have the option to use igible for both Medicare and Medicaid. Un- good friend. formularies but they are not required to do like Medicaid, the new Medicare Part D ben- Mrs. FEINSTEIN. I would like to so. If a plan uses a formulary, it must in- efit will provide a guaranteed benefit to all quote from a letter I received from clude at least two drugs in each therapeutic eligible seniors—a benefit they can count on Secretary of Health and Human Serv- category or class, unless the category or without fear of loss of benefits when State class only has one drug. budgets become tight. ices Tommy Thompson, the full text of I will be requesting the U.S. Pharma- Dual eligibles, who currently have full which I will include for the RECORD. copoeia (USP), a nationally recognized clini- Medicaid benefits, will automatically be Secretary Thompson says, ‘‘I would not cally based independent organization, to de- given generous subsidies and will pay no pre- approve a plan for participation in the velop, in consultation with other interested mium, no deductible and only minimal cost- Part D program if I found that the de- parties, a model guideline of therapeutic cat- sharing regardless of their actual income, sign of the plan and its benefits, in- egories and classes. In designing this model even though it can be higher than 135 percent cluding any formulary and any tiered it is essential that categories and classes be of the Federal poverty level in many cases. established to assure that the most appro- In addition, full dual eligibles with in- formulary structure, would substan- priate drugs are included on a plan’s for- comes under 100 percent of poverty will pay tially discourage enrollment in the mulary. I am confident they will design the no premiums, no deductibles, and reduced plan by any group of individuals. If a categories and classes to meet the needs of copayments of $1 for generic and other mul- plan, however, complies with the USP patients; USP’s work in clinically based and tiple source preferred drugs, and $3 for all guidelines then it would be considered patient oriented. other drugs. Note under current Medicaid to be in compliance with this require- Plans will also use pharmacy and thera- regulations, States can choose to increase ment. Thus, if a plan limited drugs for peutic committees that consist of practicing coinsurance to 5%. This is clearly more than what will be permitted for dual eligibles a group of patients (individuals living physicians and pharmacists to design their formularies. The committees will be inde- under the new Medicare benefit. with HIV/AIDS) it would not be per- pendent and free of conflict with respect to Finally, dual eligibles residing in nursing mitted to participate in Part D.’’ Sec- the plan. They will have expertise in care for homes and other institutions only have a retary Thompson goes on to say, the elderly and in individuals with disabil- small personal needs allowance. Under Medi- ‘‘Under the Conference Report, the ben- ities. The committees will also use both a care, they will be exempt from copayments eficiary protections in the Medicare clinical and scientific basis for making its altogether. drug benefit are more comprehensive decisions relating to formularies. I hope that this addresses all of your con- cerns. I look forward to continuing to work than the protections now required of Further, I would not approve a plan for participation in the Part D program if I with you on this and other issues related to State Medicaid programs. This will en- found that the design of the plan and its ben- Medicare and Medicaid. Please call me if you sure access to a wide range of drugs. efits, including any formulary and any tiered have any further concerns. For example, there are extensive infor- formulary structure, would substantially Sincerely, mation requirements so that bene- discourage enrollment in the plan by any TOMMY G. THOMPSON. ficiaries will know the drugs the plan group of individuals. If a plan, however, com- Ms. LANDRIEU. Mr. President. I covers before they enroll in the plan. plies with the USP guidelines then it would have been listening to the debate over Beneficiaries can also appeal to obtain be considered to be in compliance with this the past few days, and I think that a coverage for a drug that is not on their requirement. Thus, if a plan limited drugs common theme on both sides of the for a group of patients (individuals living plan’s formulary if the prescribing phy- with HIV/AIDS) it would not be permitted to aisle has been this is not a perfect bill. sician determines that the formulary participate in Part D. There are those on this side of the aisle drug is not as effective for the indi- Under the Conference Report, the bene- who rightly say that this bill does not vidual as another drug, or if there are ficiary protections in the Medicare drug ben- go as far as it could; that it doesn’t

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00008 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15889 focus enough of the assistance on low- ficiaries will have access to drug cov- dering what could have been. What we income seniors and could do more to erage by providing a strong govern- need to focus on now is what can be. keep employers from reducing or elimi- ment fallback in the event that private One year ago, I was in Louisiana run- nating benefits for their employees. plans do not provide adequate coverage ning for re-election and I promised the Others have raised concerns about the in any particular region. Finally, it people of Louisiana that while I would fact that there is a $1,400 ‘‘doughnut provides meaningful support to Medi- be with the President some of the time hole’’ and an overly restrictive assets care providers so that they can con- and I would be with the Democratic test that will mean less help for too tinue to care for our Nation’s elderly. caucus some of the time, no matter many Americans. There are those on These are major victories. I am, how- what, I would be with the people of the other side of the aisle that have ever, disappointed by some of the pro- Louisiana 100 percent of the time. This rightly said that this bill does not do visions that were ultimately included bill is good for Louisiana. Ultimately, enough to address the long-term sol- in this bill, most especially the asset that is why I support it. vency issues facing Medicare. They test. I understand that the asset test in In Louisiana, one out of every two contend that this $400 billion expan- this bill is fashioned after asset tests seniors has no prescription drug cov- sion, without making additional struc- used to determine a person’s eligibility erage. Today, 72-year-old Ethel tural reforms, puts Medicare on an un- for Social Security Income (SSI) and Cernigliaro of Homer is one of them. sure footing for the future. It is for Medicaid. I understand that it is, in With only her $727 a month Social Se- these reasons that Members on both fact, three times as generous as the curity check to depend on, Mrs. Cernigliaro finds a way to pay her util- sides of the aisle have said they will asset tests used by those programs. ities, buy groceries and still cover the vote against this bill. Yet, in my view, further restricting eli- Many maxims have been used over gibility for vital Government programs $300 and more she pays each month for the past few days to describe the choice so as to separate out the near poor prescriptions. At this point, Mrs. before us. Some have said, ‘‘A bird in from the poor is a precedent that Cernigliaro doesn’t know all of the de- the hand is worth two in the bush.’’ should be abolished, not furthered. I tails of how this Medicare reform will Others have said, ‘‘Let us not make the think the American public would be help her, but she is certain of one thing: It has got to be better than what perfect be the enemy of the good.’’ Still shocked to learn how restrictive these she has now. ‘‘I’ve been following it others have said, ‘‘Something is better asset tests are. closely, and it is certainly encouraging than nothing.’’ I have spent the last 25 In this bill, if a senior whose income to know someone is trying to do some- years in public service, and if there is is less than $12,123 a year has more thing,’’ she said. This bill means sen- one thing I have learned, it is that a than $6,000 in assets, they will no iors like Mrs. Cernigliaro will no true compromise is one from which no longer qualify for assistance with their longer be without assistance for the one side walks away completely happy. premiums or deductibles. The pro- drugs they need to maintain their qual- If there is anyone who knows that les- ponents of the asset test claim that ity of life and health. She and the son better than I, it is the senior Sen- they are necessary to ensure that a 200,000 seniors like her will, in most person doesn’t claim to have an income ator from Louisiana, Senator BREAUX. cases, pay no more than $5 a prescrip- of $12,123 and at the same time have a I have often said that if there is a deal tion for their medications. Because of vacation home in Florida and $50,000 in to be had, Senator BREAUX will find it. this reform, no senior citizen in our stocks. But these are not the people He has an amazing talent for bringing State will be without some level of that these asset tests affect. Who they two sides together in a way that pre- coverage for prescriptions. serves the key principles of both. I end up affecting is a widow who is liv- What’s more, this bill will deliver think he has succeeded in doing that ing on her husband’s $600 a month So- $551 million over the next 10 years in again here. cial Security check, but just so hap- emergency assistance for Louisiana’s Going into the conference, Demo- pens to have a $10,000 life insurance hospitals, most of which are struggling crats insisted that the final bill must policy or home full of furniture valued to keep their doors open. It will pro- include the following: meaningful as- at $3,000. That is just not fair. While I vide $156 million in much needed assist- sistance to low income beneficiaries; am not able to change this policy here, ance to Louisiana’s doctors. Without providing Federal assistance to Medi- I do intent to work to change it later. this assistance, these doctors could no care seniors on Medicaid, dual eligi- Ten years have passed since this body longer afford to care for Medicare pa- bles; strong Government fallbacks; and was first presented with the need to re- tients. It will provide $25 billion in help real incentives for employers to retain form Medicare. We have long recog- for our Nation’s rural communities, coverage. The conference agreement nized that the ways of medicine have many of which are in Louisiana. This represents major victories in all four of changed. Medications and outpatient represents the largest, most com- these key areas. services have taken the place of intru- prehensive rural package ever passed First, and perhaps most importantly, sive surgeries and long-term hos- by Congress. Finally, this bill provides beneficiaries with low incomes will get pitalization. We know that Medicare for much-needed prevention services, immediate assistance in paying for has not keep pace with those changes including screening for heart disease their drugs. The premium, deductible nor does it reflect the current needs of and diabetes, which could have helped and coverage gap would be waived for our seniors. Over the past 10 years, we to save the lives of the nearly 10,000 people earning up to $12,123 a year, have assembled task forces, engaged in Louisiana seniors who died of these dis- $16,362 per couple. Those making up to numerous studies, held countless hear- eases last year. $13,470, $18,180 per couple will not have ings and drafted several legislative pro- If this bill does not pass, the people to pay a premium or be subject to a posals, but we have never gotten to of my State will go yet another year coverage gap and would only have a $50 where we are today, at the brink of without these important interventions. deductible. What this means in real passing a bill that will put us on the I, for one, cannot ask them to wait. terms is that one-third of all Medicare path of making reform a reality. Since Medicare was first passed into beneficiaries, over 200,000 of which are I think we must act now. In a time of law in 1965, it has been amended and from my State, will get immediate as- rising deficits, it is unlikely we will modified hundreds of times. This com- sistance to drugs at little to no cost to have $400 billion or the political will to prehensive reform package is not the themselves. These are people who make these improvements any time in first, nor will it be the last. I look for- today have no help. the near future. The seniors in my ward to working with my colleagues in This bill also provides $88 billion in State are tired of waiting for the per- the months and years to come to en- tax incentives to employers to encour- fect bill. If we do not pass this bill this sure that the Medicare program, and age retaining existing retiree drug cov- year, who knows how much more time this new prescription drug benefit, will erage. CBO estimates those incentives will pass before we get to this point. It be all that it promises to be and more. will greatly diminish the number of certainly won’t be next year. If we had Mr. DORGAN. Mr. President, a vote employers who will reduce or eliminate not reduced our surpluses by giving out in favor of this legislation, which is de- their coverage because of passage of tax cuts, perhaps we could have done signed to add a prescription drug ben- this bill. It ensures that all bene- more, but there is no sense in won- efit to Medicare, is a very close call for

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15890 CONGRESSIONAL RECORD — SENATE November 25, 2003 me. There are some positive elements dustry and failed to put any real cost for seniors health care. And what do we of this bill, and there are also some containment in this bill. That is a seri- get in return? Spotty drug coverage for flaws about which I am very concerned. ous mistake. senior citizens, millions of Americans In weighing the good and the bad, how- In addition, this bill includes provi- who will lose their existing coverage, ever, I have decided to support this sions that have nothing to do with add- massive subsidies for HMOs, the first bill. ing a prescription drug benefit to the step toward the destruction of Medi- The final legislation will provide Medicare program but that have the care as we know it, and a larger fiscal very generous prescription drug cov- potential to do harm. The Health Sav- noose around the neck of future gen- erage for about one-third of the lowest ings Accounts established by this bill erations. We can do much better and income senior citizens and disabled are at best a costly tax shelter for the should go back to the drawing board. Medicare beneficiaries who live in wealthy and at worst could drive up Instead of providing seniors with the North Dakota. For those Medicare costs for the traditional insurance stable and affordable benefit they de- beneficiaries whose incomes are below market. Likewise, this bill is cluttered serve, this bill forces seniors to maneu- 150 percent of the poverty level, they up with subsidies to private insurers ver a complex maze of premiums, will receive a benefit that will cover and a phony demonstration program deductibles and copayments for bene- nearly 95 percent of their drug costs. that adds additional costs to Medicare fits that contain huge gaps in coverage. However, for senior citizens with in- and could undermine the Medicare pro- On top of their premiums, which will comes above 150 percent of the poverty gram itself if these provisions are not vary from region to region and plan to level, this prescription drug benefit adjusted in the future. plan, seniors will get no help for the will not be very attractive at all, in my As I sifted through all of these provi- first $250 of their drug costs, pay 25 per- judgment. There is a $35 per month pre- sions, I concluded that providing near- cent of costs from $251 to $2,250, pay all mium that will increase over time, a ly total prescription drug coverage for the costs from $2,251 to at least $5,100, $250 deductible that will grow to $445 one-third of our senior citizens with and then pay a fifth of costs above by 2013, and a period of time when sen- the lowest incomes is a very important $5,100. With a breakeven point of $810, iors’ drug expenditures reach $2,250 and objective to achieve. Add to that the many healthier Medicare beneficiaries seniors will still be paying premiums improvement in the reimbursement will opt not to participate. Because of but have no drug coverage at all. Only rates to strengthen rural hospitals and the $2,850 coverage gap, many of the after spending a total of more than health care providers, and I believe sickest patients will have to ration $5,100 would Medicare beneficiaries re- that these two features warranted sup- care for months because even though ceive catastrophic coverage of 95 per- port for the bill. they continue to pay premiums, they cent for prescription drugs. Again, this bill is a close call because receive no government assistance. Fur- If this prescription drug benefit was a I think those who have written it have thermore, seniors better not get too mandatory program, I would vote created an optional program that is comfortable with their prescription against it. Because it is optional, I sufficiently unattractive to many sen- drug coverage. Nearly 3 million of think many senior citizens with in- ior citizens that they will elect not to them with retiree coverage, including comes above 150 percent of poverty will sign up for this program. 39,000 residents of South Carolina will take a look at the benefit and decide it My hope is that we can lock in the lose their coverage. This bill could is not worth it. The one-third of our support in this bill for the nearly one- force those who participate in the new senior citizens with the lowest incomes third of the senior citizens with the Medicare drug benefit to move in be- will benefit from it. lowest incomes, address the reimburse- tween three separate plans, with three In addition to providing generous ment inequity for rural hospitals and separate formularies, in 3 years. coverage for the lowest income senior doctors, and then come back in future citizens, the other feature of this bill legislation and do what should have It should come as no surprise that that I strongly support are the steps it been done with the rest of this bill. the authors of this convoluted mess takes to offer some fairness in Medi- That is, we need to add some real and Karl Rove have decided to wait care’s payments for rural hospitals, cost containment, fix the drug benefit until after the 2004 election before this doctors and other health care pro- so that senior citizens aren’t paying new benefit starts up and Medicare viders. premiums while they’re getting no cov- beneficiaries see what they are in for. Hospitals and physicians in rural erage, and dump the extraneous provi- Conferees could have taken a number States have found that their reim- sions that have nothing to do with add- of steps to address these deficiencies. bursement rates under Medicare have ing prescription drug coverage to Medi- Instead, they denied the government put them at a serious disadvantage. If care. the ability to negotiate lower drug these lower reimbursement rates were In summary, I am not pleased with prices on behalf of all Medicare bene- to continue, the quality and access to this choice, but I know that if we do ficiaries. This will impose a higher cost health care delivered to rural citizens not commit the $400 billion that we on both the taxpayers who foot this would diminish. Rural hospitals have have now set aside for Medicare pre- bill and the Medicare beneficiaries who to compete for the same doctors and scription drug coverage in the coming will have to make higher copayments. nurses and use the same sophisticated 10 years, that funding may not be They also created a $12 billion slush medical equipment as urban hospitals, available in the future. And I know fund the government can use to entice and yet their reimbursement rates that we may not get another oppor- private plans to participate against have been dramatically lower. As a re- tunity to fix the reimbursement rates traditional Medicare and diverted $6.7 sult, many of our North Dakota hos- for rural hospitals in the near future. billion from the amounts saved by pitals are in real financial trouble. So I will vote for this bill, but I do so companies that will drop retiree cov- This legislation begins the process of with some real regret because this bill erage to create tax shelters for wealthy establishing some fairness in those re- could have been so much better. individuals. These funds could have imbursement rates, and I strongly sup- Mr. HOLLINGS. Mr. President, I op- been more appropriately spent pro- port that. pose the Medicare Prescription Drug viding incentives for companies to con- But there are also a number of provi- and Modernization Act. tinue retiree coverage or reducing the sions in this bill that I think are a mis- I remind my colleagues that we have size of the ‘‘doughnut.’’ take. First of all, this bill lacks provi- a national debt that exceeds $6.9 tril- I also believe this bill is the first step sions that would begin to contain the lion. The legislation currently before toward the dismantling of Medicare. rising costs of prescription drugs. That us is part of a budget resolution and The ‘‘premiums support’’ demonstra- is a dramatic failure. For most senior economic plan that will cause our debt tion contained in this legislation opens citizens, the problem with prescription to double over the next 10 years. Make the door to the privatization of Medi- drugs is the steep rise in the prices of no mistake about it, we will borrow care. Seniors in at least six parts of the those prescription drugs. Unfortu- every penny to pay this $394.3 billion country will be forced to either pay nately, the majority party bowed to bill. How ironic—we are going to bor- higher premium to remain in the tradi- the pressure of the pharmaceutical in- row money from Social Security to pay tional Medicare system or move into

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15891 an HMO. This is unacceptable. Further- Medicare, or enroll in a Health Mainte- age wholesale price for oncological more, this legislation provides an un- nance Organization, HMO, or a Pre- pharmaceuticals may have a grave ef- even playing field between traditional ferred Provider Organization, PPO, fect on oncologists’ ability to provide Medicare and private plans. I have al- also called Medicare Advantage, These cancer care to Medicare Beneficiaries. ways felt that if a private plan can programs offer beneficiaries a wide Every Medicare beneficiary suffering offer a better benefit package to a ben- choice of health care providers, while from cancer should have access to eficiary at an equal or lower cost, then also coordinating health care effec- oncologists that they desperately need. beneficiaries should have the choice of tively, especially for those with mul- I will pay close attention to the effects which plan they want to participate in. tiple chronic conditions. Medicare Ad- that this provision has on the quality This bill dramatically slants the play- vantage health plans would be required and availability of cancer care for ing field in favor of private plans. In to offer at least the standard drug ben- beneficiaries and oncologists’ ability to addition to a 9 percent higher payment, efit, available through traditional fee- provide that care. Further, the pre- private plans will have access to a $12 for-service Medicare. mium support demonstration project billion fund to further underwrite their We already know that there are for Medicare Part B premiums poses a costs. These actions undermine the tra- many criticisms directed to this bill at concern. Some metropolitan areas may ditional Medicare system generations various levels. Many would like to see face up to a five percent higher pre- of our seniors have come to depend on. the prescription drug program cover all mium for fee-for-service care than The flimsy prescription drug benefit of the costs without deductibles and neighboring areas. While these provi- and long-term damage done to Medi- without co-pays. There has been allo- sions remain troublesome, we cannot care contained in this legislation does cated in our budget plan $400 billion for let the perfect become the enemy of not warrant its high price tag. I en- prescription drug coverage. That is, ob- the good with this piece of legislation. courage my colleagues to defeat this viously, a very substantial sum of The Medicare Prescription Drug leg- bill, take up and pass S. 1926 to im- money. There are a variety of formulas islation has been worked on for many years. I believe this bill will provide a prove reimbursement for doctors, hos- which could be worked out to utilize significant improvement to the vital pitals and rural providers, and con- this funding. The current plan, depend- health care seniors so urgently need. I tinue to work toward a meaningful ing upon levels of income has several congratulate the members of the con- drug benefit. levels of coverage from a deductible to Mr. SPECTER. Mr. President, since almost full coverage under a cata- ference committee including majority Medicare was established in 1965, peo- strophic illness. One area of concern is leader FRIST, Senator GRASSLEY, Chair- ple are living longer and living better. the so-called ‘‘donut hole’’ which re- man of the Finance Committee, and the ranking member, Senator BAUCUS, Today Medicare covers more than 40 quires a recipient to pay the entire for the outstanding work which they million Americans, including 35 mil- cost of drug coverage. have done on an extraordinarily com- lion over the age of 65 and nearly 6 mil- As I have reviewed these projections and analyses, it is hard to say where plex bill. lion younger adults with permanent Mr. LEAHY. Mr. President, seniors the line ought to be drawn. It is a value disabilities. need and deserve a stronger prescrip- Congress now has the opportunity to judgment as to what deductibles and tion drug bill than this one. modernize this important Federal enti- what the co-pays ought to be and for The creation of the Medicare pro- ty to create a 21st century Medicare whom. Though I am seriously troubled gram in 1965 was a tremendous accom- Program that offers comprehensive by the so-called donut hole, it is cal- plishment. With Medicare, older Amer- coverage for pharmaceutical drugs and culated to encourage people to take the icans would never again have to face a improves the Medicare delivery sys- medical care they really need, and be terrifying future with no health care tem. affordable for those with lower levels coverage. And since that time, millions The Medicare Prescription Drug and of income. Then, when the costs move of elderly and disabled citizens have Modernization Act would make avail- into the catastrophic illness range, the come to know and trust the quality able a voluntary Medicare prescription plan would pay for nearly all of the health care that Medicare ensures plan for all seniors. If enacted, Medi- medical costs. them. But Medicare’s success is marred care beneficiaries would have access to I am pleased that this bill contains a by one significant factor: the lack of a discount card for prescription drug number of improvements for the pro- coverage for prescription drugs. When purchases starting in 2004. Projected viders of health care to Medicare bene- Medicare was created, prescription savings from cards for consumers ficiaries. Physicians who are scheduled drugs did not hold the pivotal role that would range between 10 to 25 percent. A to receive cuts in 2004 and 2005 will re- they now have in health care treat- $600 subsidy would be applied to the ceive a 1.5 percent increase over that ment and maintenance. Medical card, offering additional assistance for time. Moreover, rural health care pro- science has advanced since Medicare’s low-income beneficiaries defined as 160 viders will receive much needed in- charter was enacted, and senior and percent or below the Federal poverty creases in Medicare reimbursement disabled Americans have been waiting level. Effective January 1, 2006, a new through raises to disproportionate a long time for Congress to remedy this optional Medicare prescription drug share hospitals and standardized gaping hole in coverage. benefit would be established under amounts, and a decrease in the labor We need a meaningful prescription Medicare Part D. share in the Medicare reimbursement drug benefit under Medicare, and many This bill has the potential to make a formula. Hospitals across Pennsylvania of us have been pushing for years to ac- dramatic difference for millions of will benefit from upgrades to the hos- complish that. This movement has Americans living with lower incomes pital market basket update and in- steadily grown, and for 6 years we in and chronic health care needs. Low-in- crease in the indirect medical edu- this body have been debating and work- come Medicare beneficiaries, who make cation. Furthermore, the bill will pro- ing toward this goal. In June of this up 44 percent of all Medicare bene- vide $900 million for hospitals in metro- year the Senate passed a bi-partisan ficiaries, would be provided with pre- politan statistical areas with high prescription drug bill that I supported. scription drug coverage with minimal labor costs due to their close proximity I supported that bill—even though I out-of-pocket costs. In Pennsylvania, to urban areas that provide a dis- thought it was weaker than what we this benefit would be further enhanced proportionately high wage. These hos- need—because it was a solid start. And by including the Prescription Assist- pitals may apply for wage index reclas- that is why it gives me grave concern ance Contract for the Elderly, PACE, sification for three years staring in to see the direction this conference re- program which will work in coordina- 2004. port has taken. tion with Medicare to provide in- I would not that I do have concerns We have before us eleven hundred creased cost savings for low-income with this legislation with regard to pages—which we have had little more beneficiaries. oncological Medicare reimbursement than 3 days to examine—that run far For Medical services, Medicare bene- and the premium support demonstra- afield of the goal of adding a prescrip- ficiaries will have the freedom to re- tion project for Medicare Part B cov- tion drug benefit to Medicare. It con- main in traditional fee-for-service erage. Proposed reductions in the aver- cerns me that some of the provisions in

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15892 CONGRESSIONAL RECORD — SENATE November 25, 2003 this bill—provisions which were never because rural seniors in traditional prices in the world for their indispen- a part of the bill I supported in June— Medicare—this is all of the seniors in sable medications? will do more harm than good. I know Vermont, by the way, because private It is wrong to have hijacked this bill that many of my colleagues worked plans have chosen not to operate in our as a locomotive to pull the drug indus- long and hard to produce this bill. I re- rural state—would be assured of having try’s baggage. House leaders have spect their efforts and their best inten- a choice of two stand-alone drug plans. taken the industry’s side over con- tions, but Vermonters and Americans And if those two plans did not exist in sumers’ interests on issue after issue. need and deserve far better than this. Vermont’s region, then Vermonters in They have given the industry a veto We passed a decent bipartisan bill once traditional Medicare would be guaran- over giving Medicare the market lever- before this year. I know that we can do teed access to a standard government age to bring down costs. They have better than this compromise before us, fall back plan. Unfortunately, this es- done the drug industry’s bidding by and that is why I will be voting no. In- sential protection was weakened in the blocking drug reimportation. It is stead of trying to rush through eleven conference agreement. Instead, wrong to pad the drug industry’s wal- hundred pages so that we can go home Vermonters will be considered to have lets at the expense of the seniors of for Thanksgiving and adjourn for the adequate choice—and therefore no ac- Vermont and the Nation. year, I think that we need to keep cess to the government fallback plan— I remain concerned that cuts in pay- working on this important issue until if there is only one stand-alone plan ments for cancer drugs and services— we get it right. and one managed care plan. What kind estimated to be in excess of $11 billion I am concerned that the measure be- of choice is that? The choice that over the 10-year budget window— fore us moves Medicare down the road Vermonters in traditional Medicare threaten access to cancer care across of privatization and does not ade- will have under that scenario is either the nation and particularly in rural quately protect the access to the pre- to sign up for that one stand-alone plan area. And though the conference agree- scription drug benefit of rural seniors that happens to be offered, or to forgo ment does reduce the number of retir- in traditional Medicare. I am con- the new prescription drug benefit alto- ees likely to lose their employer-based cerned that fewer low-income seniors gether. That doesn’t sound like much coverage as a result of passing this bill will be helped with their costs, and it of a choice at all. from the Senate level, the Congres- troubles me that the need to bring I am also concerned about the impact sional Budget Office still estimates down the ever-escalating costs of pre- that this bill will have on low-income that close to three million retirees will scription drugs has not been addressed Medicare beneficiaries. It is true that lose their coverage. That number is in this bill. the bill provides generous subsidies to still far too high and could affect thou- Under the conference agreement, a low-income seniors, but the earlier sands of Vermonters. significant amount of money—$12 bil- Senate bill covered more people: al- Finally, I question why we set aside lion—is set aside in a slush fund for the most one million Americans who would $6 billion—money that could be spent Secretary of Health and Human Serv- have had access to a subsidy under that to reduce the troubling gaps in cov- ices to entice insurance companies into bill will not receive help with their erage under the prescription drug ben- Medicare. The conference agreement premiums, deductible, and cost sharing efit—to create Health Savings Ac- also includes a proposal to experiment under this bill. Three million more counts that have nothing to do with with privatization of the Medicare pro- Americans will not qualify for help be- Medicare and that many analysts pre- gram in at least six areas of the coun- cause they have minimal savings and dict will boost the costs of comprehen- try. This troubling provision could im- other assets. In Vermont, that amounts sive employer-based health insurance across the country. pose increased premiums for millions to about seven thousand people who I do credit this bill with some good of seniors in traditional Medicare, po- will be worse off under this agreement provisions to provide increased pay- than under the Senate bill. Further- tentially forcing them to leave the pro- ments to doctors and hospitals, par- more, thousands of Vermonters who gram that they know and trust. And ticularly in rural areas. I fully support currently have prescription drug cov- making this experiment even worse, these provisions, but their inclusion erage under the Medicaid program the Federal Government will overpay cannot overcome the problems in the could end up with less generous cov- private plans—putting Medicare at an rest of the bill. unfair disadvantage—to offer the same erage under this plan. I hope that I am proven wrong about The real winner under this agree- benefits that traditional Medicare cov- the impact that this bill will have on ment is the drug industry. Many ex- ers for less. Why are all of these extra the Medicare program and on the help, press concern over the high cost of cre- payments necessary? If the private in- or lack thereof, it will provide to Medi- surance model is so effective and effi- ating a Medicare prescription drug ben- care beneficiaries. I think we can do cient, why do we need to pay them efit. I would suggest that we could better and that we must do better. As more than we pay for traditional Medi- have done something very simple to seniors learn over the course of the care? No one can credibly argue that bring down the cost: We could have next 2-years what kind of coverage doing this makes sense. used Medicare’s market power to nego- they will be getting—as they see how The reason that we needed Medicare tiate lower prices for the medicines the complex the system ad the benefits in 1965, and the reason that we will program will be buying. Instead, this are—I predict that they will agree and continue to need Medicare in the fu- compromise agreement actually pro- that we will be returning to the draw- ture, is because the insurance model hibits this common sense approach to ing board very soon on prescription fails elderly and disabled people. It is cost containment. Thanks to objec- drugs. not all that complicated. As we get tions by the drug industry, provisions Mr. DOMENICI. Mr. President, thank older we inevitably get sick and we designed to speed low-cost generic you for recognizing me and letting me need to take more trips to the doctor drugs to market were weakened in the speak for a couple minutes. and to the hospital to manage and conference agreement. And last, but I wish to thank one individual. We maintain our health. This costs money, certainly not least, the drug industry wonder from time to time about a bill and the insurance companies know prevailed in their efforts to block a of this magnitude. We want to be care- that they lose money when the bills provision to allow Americans access to ful when we mention Senators we want have to be paid not occasionally, but lower-priced medicines from Canada. to thank and are grateful toward. But frequently. Instead of sending billions This is unacceptable. A majority in the I don’t have any reluctance on this of dollars to insurance companies, it is senate voted to allow re-importation one, having been part of the process, far better to use those resources to and the House of Representatives over- having been part of our distinguished strengthen Medicare and to create a whelmingly supported a strong re-im- majority leader’s life in the Senate be- stronger and more reliable prescription portation provision. Somehow, the con- fore he was majority leader. There is drug benefit run directly by Medicare. ference agreement is weaker than ei- no doubt in my mind when he came to In the earlier Senate bill, I accepted ther provision passed in either body. the Senate and learned about Medicare, that we could try this private delivery How long do we intend to force Ameri- he made a commitment that he was model for the prescription drug benefit cans to continue to pay the highest going to be part of fixing it.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15893 I watched this fantastic, talented exciting Democratic support. That is Finally, for a drug benefit to be truly man devote his energy and his enthu- one great big basket of news sitting on successful it must be sustainable. It siasm, put the best people one can the floor. will do little good to repeat the cata- imagine around him, and I watched Mr. JEFFORDS. Mr. President, I strophic failure of years past by begin- him lead the maneuvering, the activi- have listened closely to the debate over ning a program that we cannot carry ties, and the thinking, and I watched providing prescription drugs and im- on. That is why this must be a shared him learn the intricacies of this bill. proving other benefits under the Medi- responsibility of beneficiaries and the I believe if it is done right, history care Program. This debate has not been Government. A program that combines will have a lot of people we can thank limited to the last few days, as we all seniors’ contributions with a Govern- for the Medicare modernization bill well know. This debate has been waged ment guarantee will have the best and the prescription drug bill for our for 38 years. chance of enduring into the future. seniors, but I think there will be one Providing Americans with access to Since last year, I have listened to the person who will stand out, and it will prescription drugs at an affordable cost concerns of my colleagues, and I have be the distinguished senior Senator has been one of the most vexing issues weighed those concerns seriously. In from Tennessee, the majority leader. facing Congress in recent years. Many the last few days of debate, I have He has not been here very long. I re- ‘‘solutions’’ have been offered to ‘‘fix’’ given great consideration to the points member when he arrived. He joined the the problems of high cost and lack of raised by my colleagues and good Budget Committee, the committee access, and Congress has explored and friends in this body. I acknowledge that I chaired, and he was at the very debated various approaches. Of these their sentiments and I agree that this end of the committee because he was approaches, providing a Medicare pre- is not the bill I would have written if I the least senior of all members. He scription drug benefit is the most im- had infinite resources to do it. This bill moved up gradually, and then all of a portant and perhaps the most chal- is not perfect. However, 38 years is just sudden we all recall what happened, lenging to accomplish. too long for American seniors to wait. and he became majority leader. For years, progress has been delayed Turning this legislation away would He carried into that majority leader- over significant policy differences, not have been a missed opportunity to pro- ship, on his shoulders, in his brain, and the least of which was the question of vide seniors with the most significant in his ability to make commitments, whether or not the Government could modernization of their Medicare bene- the idea that there has to be a way to even afford to create a new and expen- fits since the program’s inception in sive entitlement program. But that modernize Medicare and provide pre- 1965. I believe this bill meets these four question shifted and our debate this scription drugs. standards: It is universal, comprehen- week wasn’t focused on the question of I do not want to let this record on sive, affordable, and sustainable. Could whether the Government should pro- this day close without the Senator it be improved? Certainly. But this vide a prescription drug benefit but from New Mexico—who knows a little plan is a good compromise. It offers a rather on the details of how to struc- bit about this man, who served with respectable and responsible plan within him, worked with him, and under- ture a prescription drug benefit. Last Congress I had the privilege to the budget limitations we faced. It is a stands him and is appreciative of the work with several of my Republican good compromise. I support this bill. great talent he brought to the Senate and Democratic colleagues in the Sen- The conference report includes many when he joined us—thanking him and ate to develop a Medicare drug benefit significant features for the citizens of recognizing his particular involvement program that became a key option in my home State of Vermont. It provides in getting this job done. the ‘‘how to’’ debate. Our proposal, a sustainable, universal, and com- It just seems as if we go months and which became known as the tripartisan prehensive prescription drug benefit to years without any good news, and then effort, embodied the principles that I all 93,000 Medicare beneficiaries in good news comes in bushels. Today we believed must be part of a Medicare Vermont. have a bushel of good news. We passed drug program. For 40,000 seniors in Vermont with this bill that our seniors have been First, the program must make a uni- limited savings and incomes below asking for. It is amazing, the AARP versal benefit available to all Medicare $13,470 for individuals and $18,180 for supports it, and then the other side of beneficiaries. It would be unfair to use couples, the Federal Government will the aisle, the Democrats who used to much needed medicines as a carrot to cover most of their drug costs. just crave having the AARP on their lure seniors into managed care pro- In addition, Medicare, instead of side, because the AARP found a bill grams they don’t want. We should also Medicaid, will now assume the pre- that the Democrats don’t like—and I avoid providing a benefit only to the scription drug costs of 21,767 Vermont don’t know whether they don’t like it poorest of the poor and those with cat- beneficiaries who are eligible for both because it isn’t theirs or it isn’t good. astrophic costs. Virtually all seniors, Medicare and Medicaid. According to I would say it is a tossup from what I regardless of income, need help to the Centers for Medicare and Medicaid can tell. Part of the Democrats don’t make their medicines either outright Services, this will save Vermont $76 think it is good, but part of them don’t available or more affordable, and most million over 8 years on prescription think it is good because it isn’t theirs. have indicated a willingness to pay drug coverage for its Medicaid popu- They chose now even to blame the their fair share to support the pro- lation. AARP; that there was something nefar- gram. This bill recognizes the high cost of ious involved in the passage of this bill. Second, the program must be com- providing quality care in rural settings I hope the millions of people in the prehensive so that elders would have as and finally puts an end to years of un- AARP understand what the Democrats generous a benefit as possible, from fair reimbursement gaps between rural are saying. They are truly accusing the their initial spending to their cata- providers and their urban counterparts. AARP of having a conflict of interest strophic costs, and they shouldn’t have Specifically, this Medicare package that would cause them to support leg- to forego the best medicines for the provides $25 billion for rural providers, islation that is not good for the senior cheapest ones just in the name of budg- netting $41 million in additional funds citizens of America. That is it in a nut- et savings. for Vermont hospitals over the next 10 shell. It is an absolutely ludicrous ac- Third, a Medicare drug benefit must years and $18 million for under- cusation, but it has been done. It has be affordable for both beneficiaries and reimbursed physicians over the next 2 been done because they saw the tide, the Government. Seniors should be years. and the tide was going in the direction able to get the best medicine available I am also glad Chairman GRASSLEY they didn’t like but the AARP liked. at the best possible price and the Gov- and Ranking Member BAUCUS have Somehow or another, under the lead- ernment must derive the best cost sav- worked with me to address another in- ership of people such as BILL FRIST, Re- ings through open competition. We equity in the system. Critical access publicans started coalescing around it. should expect to realize as much sav- hospitals provide care in the some Because of the ability of people such as ings in our pharmaceutical purchase most underserved regions of Vermont CHUCK GRASSLEY and our leader, Demo- for Medicare as foreign governments as is the case throughout rural Amer- crats joined in and we had some very realize today. ica. These hospitals are small yet serve

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15894 CONGRESSIONAL RECORD — SENATE November 25, 2003 as critical resources to their commu- we have before us legislation that will whom I began my ‘‘prescription drug nities. forever change the face of Medicare— coverage journey’’ almost 6 years ago, I am very pleased to see that the con- providing every senior in America with when we developed the first bipartisan ferees retained a provision from the a prescription drug benefit under a prescription drug coverage bill in the Senate measure that will allow critical Medicare program that will experience Senate, which established the prin- access hospitals, like the Mount Ascut- the largest expansion in its 38-year his- ciples that I believed were critical to ney Hospital in Windsor, VT, to expand tory. shaping this bill. access to psychiatric and rehabilitative We would not have arrived at this We reached across the party isle be- services to the most vulnerable citizens day without the exceptional commit- cause we recognized that only a bipar- in that community. ment made by Finance Chairman tisan plan could ever ‘‘see the light of This bill contains a provision that GRASSLEY to advance this issue and day’’. And we joined forces as members will allow us to better understand how meld the considerable political and pol- of the Budget Committee to establish to provide quality health care, culmi- icy differences that have marked the in the 2001 budget a $40 billion, 5-year nating several years of work in concert development of this bill. His efforts reserve fund. Well, look how far we’ve with Dr. Jack Wennberg at Dartmouth were nothing short of Herculean from now come—from the $370 billion to measure care by the quality of pa- the outset, and guided us through a tripartisan plan developed last year, to tient outcomes rather than utilization challenging conference. He, as well as the historic passage of S. 1 in the Sen- of resources. Ranking Member BAUCUS, have re- ate this past June. In closing, I especially want to salute mained committed to the bipartisan But I can tell you from my own per- the efforts of Senator BAUCUS, Senator principles that forged the Senate legis- sonal and professional experience that GRASSLEY, and Senator BREAUX and lation, which garnered the support of Congress’ journey along this road has 16 members of the Finance Committee, the other without whose hard work and never been easy—although it has been and a remarkable 76 members of the commitment to working through an infinitely more arduous for America’s agreement we would not have accom- full Senate. I want to recognize the outstanding seniors. The process has borne witness plished passage of this legislation and leadership of the President—who in to a multiplicity of goals and philoso- they deserve our accolades. I also 2001 challenged Congress to enact the phies across the spectrum. thank several of my other colleagues Medicare Prescription drug benefit . . . Some have wanted to add a drug ben- who have contributed so much to this propounded a set of principles . . . and efit to the existing Medicare program debate over the years. I have worked has provided strong impetus during to leverage the purchasing power of 40 for more than 3 years with my good this ‘‘home stretch’’ for Congress to million seniors, while others have friends, Chairman GRASSLEY and Sen- complete our work and send to his desk sought to use the issue either as a vehi- ators SNOWE, BREAUX and HATCH. In legislation he can sign this year. I cle for the wholesale privatization of many meetings over many months, we know firsthand from my conversations Medicare, or full-scale, Government ad- delved into the details of what came to with the President that this is a cor- ministered benefits. be called the tripartisan bill. This has nerstone of his agenda and absent his Some have said we are providing too been one of the finest experiences of driving force we wouldn’t be here great an incentive for people to enroll my many years in Congress. I am very today. in private plans, while others argue we proud to have been a part of that group So, too, has the Majority Leader re- are starving those very same plans. and that our efforts led the way to our doubled his longstanding and unflag- And some have argued the benefits success today. ging commitment to enacting into law provided in a particular bill are inad- A bill such as this is the result of a bipartisan bill, moving us ever closer equate, while others submit that they great effort on the part of many dif- to that goal. Thanks to the unique con- are, in fact, too generous and should be ferent people who are not elected to fluence of his skills . . . his unparal- limited to a low-income catastrophic this body but upon whom we all rely. I leled knowledge and grasp of the issue plan. would like to recognize the staff mem- . . . and his single-mindedness of pur- Yet, today, we essentially all agree bers who have worked so hard on this pose, more than three quarters of the we are well beyond one question—the bill and deserve much of the credit for Senate came together to support S. 1, question of need. Therefore, it is im- its successful passage. the Senate’s prescription drug bill. And perative we acknowledge the reality On Senator GRASSLEY’s staff: Ted in bringing us to the eve of final pas- that, just as the journey thus far has Tottman, Linda Fishman, Colin sage of this conference report, he has been imperiled by the ‘‘slings and ar- Roskey, Mark Hayes, Jennifer Bell, been typically respectful of—and re- rows’’ of those on all sides of this issue, and Leah Kegler, and on Senator BAU- sponsive to—all the wide-ranging con- it will not become easier with the pas- CUS’ staff Jeff Forbes, Liz Fowler, Jon cerns and recommendations voiced to sage of time—not when you’re debating Blum, Pat Bousliman, Kate him, and I thank him for his leadership the creation of the largest domestic Kirschgraber, and Andrea Cohen de- and for guiding and shaping this proc- program in nominal terms ever. serve considerable recognition for their ess to its ultimate and successful con- Not when you’re attempting the larg- tireless efforts. Catherine Finley, Tom clusion. est expansion in the history of the Geier, and Carolyn Holmes from my I also want to extend my apprecia- third largest Federal domestic spend- friend Senator SNOWE’s staff; Patricia tion to my colleagues Senators HATCH, ing program. DeLoatche and Patricia Knight of Sen- BREAUX, and JEFFORDS, with whom I’ve And not when significant challenges ator HATCH’s office; and most espe- worked so closely on a prescription loom on the horizon such as strength- cially Senator BREAUX’s legislative di- drug benefit over the past 3 years— ening Social Security and Medicare as rector Sarah Walters and his staff they have been stalwarts in this fight 77 million baby-boomers begin to retire Michelle Easton and Paige Jennings and together we developed the tem- in 2013—all while we face record-setting deserve enormous credit for this bill. plate for the ‘‘tripartisan’’ proposal Federal deficits. On my own staff, I particularly want that helped frame the proposal before We did have an optimal window for to recognize the contributions of Sher- us. And certainly no one has more positive change just 21⁄2 years ago when ry Kaiman, Eric Silva, and especially fiercely championed the cause than an- the Congressional Budget office was Sean Donohue who took up the effort other colleague I’ve joined with in this projecting surpluses ‘‘as far as the eye on the tripartisan bill and who has con- battle in the past—Senator KENNEDY— could see’’—about $5.6 trillion through tinued to see it through to today’s suc- who I recognize does not support this 2011. Now, next year’s deficit alone is cess. Each and all have worked tire- conference report, but whose early, projected at nearly $500 billion. That is lessly to gather the input, analyze the longstanding involvement and pas- how quickly the tide can turn. That is issues, and build a consensus toward sionate policy advocacy unquestion- how quickly opportunities can be lost. achieving this final product. ably built momentum for this issue in Just think—a little over a year ago, Mrs. SNOWE. Mr. President, today, Congress. the Senate was presented with a choice we stand at the precipice of oppor- Finally, I want to thank my good between a ‘‘tripartisan’’ plan that en- tunity. Culminating a decade of work, friend and colleague, RON WYDEN, with sured coverage would be available to

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15895 all seniors . . . was comprehensive, benefit designed out of necessity by the Yet, not only do seniors deserve a with the maximum benefit possible for conferees. It includes aspects modeled subsidy to help make prescription lower-income seniors . . . and was a after each bill—the deductible was set drugs more affordable, they should also permanent part of the Medicare pro- at the House’s lower level of $250 and have the benefit of choice when it gram—and the alternative, which was the conferees worked to improve this comes to the coverage they purchase. temporary and would have ‘‘sunset’’ proposal by offering a benefit with an Because seniors shouldn’t be limited . . . and would have statutorily re- actuarial value higher than the benefit in their options for coverage, we ensure stricted access to drugs. Talk about from both bills. However, in providing that all seniors will have a choice of at lost opportunities! Indeed, those who these improvements concessions had to least two privately delivered drug are dissatisfied with what we have be- be made—in doing so the Senate’s plans. Furthermore, all drug plans are fore us today should fondly recall that $4,500 benefit cap was lowered to $2,250. required to offer access to two drugs tripartisan bill, and lament its unfor- But in the same respect the cost shar- from each therapeutic class and cat- tunate demise. ing provided under this cap was low- egory. Not only does this provide sen- So here we are. The conference report ered from 50 percent provided for in the iors with options, it helps ensure they before us is the result of an attempt to Senate bill to 25 percent. So as you can will receive the drug their doctor de- balance the competing viewpoints not see, while not perfect this benefit rep- termines is the most appropriate. only among Members, but between the resents the art of compromise. And let us not forget, there was a stunningly disparate House and Senate Recognizing that this bill is not per- time when it was proposed that if sen- legislation. The simple truth is, while I fect, I find it imperative to note I was iors desired prescription drug coverage, continue to prefer the Senate bill, it is disappointed to see two provisions that they would be obligated to enter an this conference report upon which we I oppose are included in the conference HMO. Well, thankfully—and appro- will vote. And after careful review, I report—means testing of the Part B priately—this conference report shuns have concluded that while it isn’t ev- premium and indexing of the Part B de- the ‘‘one size fits all’’ philosophy of erything it could be, it isn’t everything ductible. The Senate-passed bill did not placing all seniors into managed care include language to means test the it should be. In the end, millions of and maintains the critical protection Part B premium and I successfully seniors will benefit over the stagnation of choice of ensuring seniors can re- fought to defeat efforts on the Senate of the status quo. main in the Medicare program. Seniors To quote AARP, ‘‘Enactment of this floor to add it. Unfortunately, the absolutely should have the option of legislation is essential to strength- House bill did contain this concept and staying where they’re comfortable— ening health security for all Ameri- the conferees chose to include in it the without sacrificing guaranteed and cans. This is an important step toward conference report. And while the Sen- ate bill did contain language to index equal prescription drug benefits. fulfilling a longstanding promise to Still others on the opposite end of older and disabled Americans and their the Part B deductible, I opposed this the spectrum have said that the pri- families. While this legislation is not provision in the Finance Committee vately delivered stand-alone drug cov- perfect, it will help millions of people, and had hoped it would be removed by erage option is doomed to fail—that especially those with low incomes and the conferees. this type of plan doesn’t exist in nature high drug costs.’’ But in recognizing the flaws of this Margaret Thatcher once said, ‘‘You proposal, at the same time, the con- and insurance companies won’t partici- may have to fight a battle more than ference report will at least get the fed- pate. However, this conference report once to win it.’’ Well, some of us have eral ‘‘foot in the door’’ in providing a includes key principles developed in been fighting this battle now for nearly significant level of assistance to the the Senate bill—including risk cor- 6 years. The bottom line is, we cannot one-out-of-four Americans who right ridors, reinsurance and stabilization hold hostage our seniors’ futures to a now have no coverage whatsoever. accounts—which are intended to build political unwillingness to compromise. Most seniors—for a $35 monthly pre- a stable, productive model that I be- And this bill provides us with our best mium—will save 50 percent on their lieve will attract and keep companies available opportunity to secure, for the cost of prescription drugs. For exam- in the program. first time, a legislative foothold that ple, a senior who spends $3,600 will real- Ultimately, however, there is no way honors the same basic principles I have ize $1,714 annually in savings. to guarantee private companies will expounded upon since I first came to And in examining the assistance pro- deliver services in every region of the this issue— vided to the lowest income, I am re- country. Therefore, as we were devel- That, in keeping with the basic te- lieved to know that the conferees uti- oping the Senate bill, many of us who nets of Medicare, the prescription drug lized the model set by the Senate bill. represent the 12 rural States in which benefit must be universal, comprehen- Most critically, in keeping with the no Medicare+Choice programs operate sive, affordable, voluntary, permanent, Senate bill, seniors with incomes below included a fall back of last resort— and provide equal benefits across all 150 percent of poverty who qualify for which I’m pleased to say is sustained in plans. And that—like the Senate bill one of the low income categories will this conference report. This key provi- and the tripartisan proposal before not experience a gap in coverage—and sion will serve to provide security to that—it directs the most assistance to- will receive a generous level of assist- beneficiaries by knowing that no mat- ward those seniors with the lowest in- ance. This means that in Maine over ter where they live, they will be as- comes . . . includes a reliable Govern- 93,450 beneficiaries, or more than 40 sured of coverage even when private ment fallback of last resort . . . and percent of the Medicare population, plans choose not to participate. continues to ensure seniors access to, will receive a generous benefit with no Throughout this debate, concerns and the stability of, the traditional gap in coverage. have been voiced that with the enact- Medicare program. In its totality, this And while the Senate bill may have ment of a Medicare prescription drug conference report fulfills all of these extended this coverage to a greater benefit some employers will be pro- principles. number of seniors, unlike the Senate voked into reducing coverage that they In evaluating the individual compo- bill, this proposal ensures that all sen- offer to their former employees. In- nents of the package, Mr. President, we iors, even the so-called ‘‘dual eligi- deed, I have expressed concern about should be mindful of how we arrived at bles’’—those who qualify for both the this issue throughout my six years of this destination. As the Senate passed Medicare and Medicaid programs—re- involvement in developing Medicare a bill with overwhelming bipartisan ceive a Medicare drug benefit. This will prescription drug legislation. And support, the House passed its bill with ‘‘federalize’’ 47,100 beneficiaries in while I have concluded that we can the most razor thin margin of just one Maine and approximately 6 million na- take steps to mitigate the problem of vote—and as we witnessed it passed the tionally. This results in a savings of employers ending coverage, I do not be- conference by a mere five vote margin, $161 million over eight years to the lieve we can eliminate it. after an historic three hour vote held State of Maine. So, while this benefit That is because this bill is not caus- open to secure the necessary votes. does not achieve all that I would like, ing employers to cease coverage—in And we see the result in the starkest it has laid the foundation from which fact, from 1999 to 2002—prior to the en- terms, reflected in the nature of the we can and must build in the future. actment of a Medicare prescription

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15896 CONGRESSIONAL RECORD — SENATE November 25, 2003 drug benefit—almost 10 percent of em- I added this provision in an effort to women in the U.S. will be diagnosed ployers stopped offering retiree cov- protect policy that I worked to include with invasive breast cancer, and al- erage. So this bill cannot be held re- in the 1997 Balanced Budget Act, most 40,000 will die from the disease. sponsible for this problem that exists which, for the first time, allowed resi- Yet, the FDA reports that the number regardless of the enactment of this bill. dency training programs to place their of mammography facilities closing now But we most definitely should use this trainees outside of hospitals, most number over 700 nationwide. These clo- bill as an opportunity to help reverse often in rural communities, and re- sures have led to longer waiting peri- the trend of the last decade and offer ceive Medicare reimbursement. Unfor- ods for women scheduling annual and incentives that will prompt employers tunately, the Centers for Medicare and follow-up mammography visits which to maintain their retiree benefits. Medicaid Services (CMS) recently tried could lead to delayed diagnosis and de- This conference report takes impor- to regulate around that law and pro- layed treatment. This is not accept- tant steps toward alleviating the prob- hibit programs from utilizing this op- able. lem. Looking back to the development tion by making it so onerous that pro- The bill before us includes provisions of the Senate bill, the Congressional grams instead choose to move the resi- closing the gap between the Medicare Budget Office estimated that S. 1 dents back into the hospital instead of reimbursement and the actual cost of would prompt 37 percent of employers complying with the agency’s new rules. diagnostic mammography by removing to reduce the drug coverage they offer While I was able to include the cor- the reimbursement of diagnostic mam- to their former employers. In compari- rective policy in the Senate-passed mography performed in a hospital set- son, the conference report includes a Medicare bill, some of the House con- ting from the Ambulatory Payment combination of options—both policy ferees refused to maintain this critical Classification and placing the proce- and tax incentives—that CBO, and Senate provision. But, working with dure in the Medicare Fee Schedule. most importantly employers, believe the Chairman, who recognized the im- This would bring the hospital technical will provide incentives strong enough portance of this provision to rural number closer to the actual cost of the to encourage the maintenance of pri- States, I was able to secure support to procedure, thus reducing the financial vate sector coverage. It reduces the ex- provide a one-year moratorium that disincentive for hospitals to continue pected drop rate from the Senate bill’s prohibits CMS from taking action these services. 37 percent to 16 percent; this means an against programs that allow physicians Having been the lead Republican co- additional 1.6 million seniors will re- who supervise residents to volunteer sponsor of this bill for a number of tain their employer-sponsored cov- their time. the provision also calls on years, I am pleased the conference re- erage—seniors who might have lost the Secretary of Health and Human port before us today seeks to turn the this coverage regardless of the outcome Services to perform a review of this tide on these closures as too many im- of this bill. issue and report to Congress on the im- aging facilities can no longer afford to This proposal also takes vitally im- pact to rural training programs if phy- offer these procedures due to low Medi- portant steps to create better balance sicians are not allowed to volunteer care reimbursement. within the Medicare program to ensure their time as a supervisor. One million additional women be- that all providers, regardless of where Though the moratorium is helpful, it come age-eligible for screening mam- they are located, receive adequate and does not resolve the issue, and I, there- mography each year. This action will appropriate payments. For too long, fore, will continue to fight on behalf of help ensure that these women will have States like Maine, which ranks number these vital programs. I have introduced access to the screening they need to de- 47 in Medicare reimbursement, have as a separate bill, S. 1897, which con- tect and combat this disease earlier been underfunded simply because they tains the language from the Senate- and, hopefully, with less invasive pro- are rural. This bill, thanks to the lead- passed Medicare bill that will in fact cedures. This inexpensive provision in ership and persistence of Chairman protect these programs and ensure the Medicare conference report could GRASSLEY, finally brings Medicare pay- their continued viability. save countless lives, and I am pleased ments into equilibrium. This bill also includes a key provi- that it will be enacted into law along This proposal provides an additional sion that corrects an inequity that has with the rest of this bill. $25 billion over ten years to help disadvantaged millions of Medicare Finally—and fortunately—this con- States, like Maine, receive more equi- beneficiaries who suffer from cancer. ference report unquestionably rep- table Medicare payments. Hospitals in This bill directs the Secretary to estab- resents the end of the House bill’s Maine stand to gain an additional $125 lish a 2 year transitional benefit in 2004 open-ended efforts to move Medicare million through payment improve- and 2005 utilizing at least $200 million toward a national, privatized system ments for our Disproportionate Share to allow Medicare to cover all available through an untested, untried policy Hospitals (DSH), teaching hospitals, oral anticancer treatments. known as ‘‘premium support’’ that critical access hospitals and rural hos- Currently, Medicare provides cov- could have led to the patchwork deliv- pitals. Further, Maine’s rural home erage of a limited number of oral anti- ery of health care that existed prior to health care providers will see increases cancer drugs that originally were the creation of Medicare in 1965. to their reimbursement rates, along available in intravenous, IV, form. This approach would have fostered with rural ground and air ambulance However, since Congress first expanded wild fluctuations in premiums for the providers to name just a few. And let coverage to this limited type of oral traditional Medicare program. Where- us not forget our physicians. This bill anti-cancer treatments, the technology as, incredibly, Medicare now provides reverses the 4.5 percent reimbursement has advanced and many of the most in- all seniors the same benefit for the cut expected for 2004 and provides an novative and effective drugs do not same premium, under this proposal additional increase to payment rates qualify for coverage because they did premium variations would have oc- for rural doctors, which together total not evolve from the IV form. By includ- curred not just from State to State, more than $22 million. ing in the conference report authority but within a State and even within a I was especially pleased to have been for CMS to extend coverage to all oral congressional district! able to work with the Chairman to add, cancer treatments, we ensure that in And you don’t have to take my word in the Senate Finance Committee, a 2004 and 2005, prior to implementation for it. According to the Centers for provision that would ensure the con- of the comprehensive prescription drug Medicare & Medicaid seniors living in tinuation of the country’s rural health benefit, seniors will have access to the Miami, FL, would pay $2,100 a year for care residency training programs. This best treatment options available. traditional Medicare, compared to $900 provision reiterated the Congress’ in- The conference report before us, in- that seniors would pay in Osceola for tent to allow physicians to volunteer cludes another noteworthy improve- the same benefit. And when you com- their time as supervisors of residents, ment to the Medicare program, one pare this to North Carolina, the vari- and allowed programs to use Medicare that will help make an important tool ation from State to State grows even funding to support these residents in- in the fight against breast cancer more wider with Rowan County, North Caro- stead of utilizing funding provided by accessible for women—diagnostic mam- lina paying just $750 for traditional the community. mography. This year alone, 211,300 Medicare. So let there be no mistake,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15897 this House-backed provision was a full The Medicare conference has reached a ARLEN SPECTER, frontal assault on traditional Medi- critical junction in its effort to craft a con- MIKE DEWINE, care. Yet, according to CBO, this pro- ference agreement to develop a Medicare pre- EDWARD M. KENNEDY, posal that supporters touted as the scription drug and modernization bill. The JEFF BINGAMAN, time is fast approaching when final agree- savior of the program ultimately would BLANCHE L. LINCOLN, ments must be made if a proposal is to be de- JAMES M. JEFFORDS. have saved Medicare less than $1 bil- veloped prior to the November 7 target-ad- lion. journment date. However, many key issues [From the Bangor Daily News, Nov. 21, 2001] I happen to believe that prescription remain unresolved, which will determine HOBSON’S MEDICARE drug legislation should be about pro- whether this bill can garner strong bipar- Never have so many dollars been put to so viding seniors with a drug benefit. And tisan support and ultimately become law. As little use. The $400 billion Medicare bill be- while we certainly can consider and in- you progress into this critical stage, we urge fore Congress establishes what all sides agree corporate new policies that improve you to remain committed to the bipartisan is necessary—a prescription drug benefit— principles contained in the legislation devel- but blasts away at much of Medicare’s foun- and enhance the underlying program. oped and passed by the United States Senate. dation. It is a deal that makes all previously The drug benefit should not be used as First, the Senate bill takes strong steps to rejected Medicare reform look wise and gen- what someone appropriately described provide every senior and disabled American, as a ‘‘Trojan Horse’’ to open the door no matter where they live, with choices in erous by comparison. It is also the best deal coverage. Notably, this is done in a manner the current Congress is likely to get. to the privatization of Medicare. The difficult calculation is this: Is a badly that preserves the traditional Medicare pro- I ask unanimous consent that this flawed bill that contains a needed drug ben- gram as a viable option. This balance was letter, as well as another letter my col- efit worth passing when the alternative is to achieved by providing all seniors with access leagues and I sent in October, and an reject it without the chance to enact im- to the same level of drug coverage no matter editorial from the Bangor Daily News proved legislation? The $400 billion has been the coverage option chosen. Further, the be printed in the RECORD. Senate bill assures this choice will be a fair set aside for funding this legislation; should There being no objection, the mate- one that will not disadvantage senior citi- it fail, the money would disappear and given rial was ordered to be printed in the zens who remain in traditional Medicare. Ac- the extent of the deficit for the next decade RECORD, as follows: cordingly, we urge you to remain committed or more, would not be available next year; even in the unlikely chance a bill could be CONGRESS OF THE UNITED STATES, to principles that provide a level playing passed in an election year, or perhaps after WASHINGTON, DC, NOVEMBER 13, 2003. field between the private sector and Medi- care and reject proposals that would unduly that. Hon. BILL FRIST, Much of the debate this week has focused Majority Leader, U.S. Senate, raise Medicare premiums or otherwise ad- vantage private plans. on the plan’s intent to establish privatiza- Washington, DC. tion pilot projects—subsidized private insur- DEAR LEADER FRIST: It has come to our at- Second, the Senate bill assures affordable, ers would offer Medicare in six metropolitan tention that leadership is considering the in- comprehensive coverage to those with in- areas in competition with traditional Medi- clusion of a new version of the policy model comes below 160 percent of the federal pov- care—but other aspects of it are equally im- known as premium support. As you know, erty level or $15,472 for an individual in 2006. this policy places the traditional Medicare Generous and affordable coverage for this portant and equally troubling. The means- program and private plans into direct com- population is essential, given that most pres- testing provision in the bill, for instance, petition and according to the Centers for ently do not have access to a prescription raises costs for middle-class seniors; reim- Medicare and Medicaid Service (CMS) will drug benefit. The conference must assure bursements for medical residents harm clinic lead to dramatic increases in the annual pre- that the generous assistance provided to low work; those who remain in traditional Medi- mium for the traditional Medicare program. income beneficiaries is maintained and re- care for the pilot program will see increases We are extremely concerned about the in- ject measures that would reduce the benefits in their costs; states that could negotiate for clusion of this policy proposal in a Medicare presently accorded Medicaid recipients. their Medicaid-Medicare clients lose much of bill. Though some may consider this a dem- Third, we urge the conferees to include a their bargaining power while also losing onstration project, we disagree. This appears mechanism that will ensure that all seniors their federal support for the program. The to be a veiled attempt to institute this pol- have access to a prescription drug benefit, no fear remains strong among health care advo- icy into law. According to CMS data this matter where they live. The Senate bill cates that the entire reform is an attempt to proposal could capture up to 10 million sen- assures that private plans interested in pro- cap the federal contribution to Medicare and iors, 25 percent of Medicare beneficiaries. viding this benefit can do so and will be the shift future costs to seniors. Several of these Further, it will require them to bear the bur- preferred mechanism of delivery in every ge- problems are being debated now—Sen. Olym- den of cost increases associated with the ographic locality; however, it is not possible pia Snowe has been in the middle of negotia- demonstration project. to guarantee their participation. Therefore, tions all week; imagine the time and argu- This policy also unfairly targets some sen- it is necessary that the final proposal in- ment that would have been saved had she iors simply based on their geographic loca- clude a fallback mechanism, as we included been put on the conference committee. Some tion and mandates their participation. The in the Senate bill, that will ensure that of these issues may be resolved but several likely result will be significant increases in beneficiaries will have access to the drug are likely to remain as the House and Senate traditional Medicare premiums for seniors benefit in the event that private plans are vote. living in the affected areas and could desta- not available in a region. Some members of Congress do not support bilize the Medicare program for all seniors. Finally, we caution the conferees against the bill for these many reasons; some don’t We understand that leadership and some including provisions that will circumvent es- support it because of its cost and relatively conferees may be considering possible tablished congressional procedures or dele- small nod toward privatization. But for changes to this latest proposal. We urge you gate responsibilities for establishing the ben- those who believe a drug benefit is important to remove this policy from the bill. We be- efit and cost-sharing requirements to the and will become more important in the com- lieve there are other possible options that Secretary of Health and Human Services ing years, the choice is to vote yes and im- will encourage private plan participation in (HHS). The responsibility for developing and mediately set about chipping away at some the Medicare program that do not negatively overseeing benefits included in the Medicare of the worst aspects of the bill. This is a ter- impact the traditional Medicare program. program rests with the Congress, and this rible way to build a health care safety net Thank you for your consideration of this bill should not violate that principle. for the nation’s seniors, but lamenting the vitally important issue. Enactment this year of a bill that adds a process is not an excuse for allowing this op- Sincerely, Medicare prescription drug benefit and im- portunity to pass by without approving the 44 MEMBERS OF CONGRESS. proves the program is a top priority for each drug benefit. of us. America’s seniors have waited too long At 1,100 pages, the Medicare bill is too long U.S. SENATE for comprehensive drug coverage and the ad- and complex to describe it merely as a sop to Washington, DC., October 23, 2003. dition of market-based options. However, to industry (though pharmaceutical manufac- Chairman CHARLES E. GRASSLEY and Rank- achieve this goal, we must continue to work turers should love it), an ideological docu- ing Member MAX BAUCUS, together to develop agreements that will re- ment (though its medical-savings accounts Senate Finance Committee, Dirksen Senate ceive bipartisan support in each chamber. In are a GOP crowd-pleaser) or a broad expan- Building, Washington, DC. 1965, the original Medicare bill garnered this sion of entitlements (though the drug benefit Chairman WILLIAM M. THOMAS and Ranking level of support and a change to the program is exactly that). It is fair to say the bill is a Member CHARLES B. RANGEL, of this magnitude should be no different. poor version of what should have been passed House Ways and Means Committee, Longworth We remain ready to help you address these years ago and now that Congress is out of and other issues that will impact the final House Building, Washington, DC. time and out of money, it is about as much proposal, and hope you will work with us to Chairman W.J. (BILLY) TAUZIN and Ranking as the public can expect. Member JOHN D. DINGELL, develop bipartisan proposals that we can House Energy and Commerce Committee, Ray- support. Ms. SNOWE. In a letter that 43 col- burn House Building, Washington, DC. Sincerely, leagues sent, we expressed our strong DEAR CONFEREES: OLYMPIA J. SNOWE, opposition to this ideological venture.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15898 CONGRESSIONAL RECORD — SENATE November 25, 2003 It is rewarding to note that significant tablish a payment system for the products of our pharmaceutical indus- changes were made that transformed MedicareAdvantage program, CBO esti- try. The public cannot be held hostage the full-scale national premium sup- mated it would cost hundreds of bil- to the seemingly never-ending increase port proposal into a limited bona-fide lions of dollars, while CMS predicted it in the cost of prescription drugs, and demonstration project, as seen in this would save Medicare money. this a fight that will continue to be chart. Clearly, it is imperative that we first waged in the halls of Congress, our citi- Where once efforts centered on the test proposals before sending Medicare zens deserve no less. wholesale national privatization of down a path of change. To do otherwise So taken in its totality, while I am Medicare under a proposal that offered would be to potentially imperil the disappointed with aspects of this legis- seniors zero protections from premium very health care system seniors have lation, passage of this legislation will fluctuations, conferees shifted to come to reply upon. be looked upon as a transformational crafting a bona-fide demonstration So I am pleased that in the final moment in the history of the Medicare project. analysis the premium support proposal program, because now there will be no Notably, this proposal exempts sen- that once threatened to unravel the going back. iors from the demonstration who have very thread of Medicare has been re- There will be no returning to the incomes below 150 percent of poverty. duced to a limited, focused, true dem- days when Medicare lived in the dark This bill includes a sunset that ends onstration project, which starts in 2010; ages, oblivious to the fact that remark- the demonstration project after six is limited to 6 years; is limited to 6 able drugs were available to save lives, years, limits premium increases to 5 MSAs that according to CBO captures prevent disease, and halt the progres- percent annually; and because the dem- only 1 million seniors; limits premium sion of disease. onstration is phased in over 4 years, increases to 5 percent per year without There will be no returning to the the actual impact to premiums is sig- a compounding affect; terminates the days when many needed to be con- nificantly less than 5 percent. In fact, financial incentives offered to private vinced that prescription drug coverage the true cap on premiums during the plans under the MedicareAdvantage was even a topic worthy of serious de- first 4 years of the 6 year demo is only program; and protects seniors whose bate in the United States Congress. one-quarter of the five percent in- incomes are below 150 percent of pov- There will be no returning to the crease. erty by holding them entirely harm- days when a quarter of our Nation’s Further, under the initial proposal less. seniors struggled without any assist- the premium increases would have There is one place where this con- ance whatsoever in paying for the pre- compounded annually, which could ference report fails to hold seniors scription drugs that can be the dif- have resulted in a net increase in the harmless, and that is in the sky- ference between a decent quality of traditional Medicare premiums of over rocketing costs of prescription drugs life—and life itself. 30 percent during the 6 year project. which are increasing at a rate seven With this bill, we will finally pass the But we worked with the conferees and times higher than the rate of inflation point of no return—and thankfully so. even this component was removed so and grew 16 percent between 1999 and This bill—while far from perfect—is that the increases are not compounded. 2002. the new baseline, the new benchmark Finally, we were able to secure sup- One effective means to reduce the which future progress will be meas- port to include selection criteria that cost of prescription drugs is through ured—and attained. To paraphrase identifies qualifying MSAs. Sites must importation. Regrettably, this con- Winston Churchill, in viewing this leg- have at least 25 percent private plan ference report perpetuates the status islation, it is not the end. It is not even participation and seniors living within quo by insisting on maintaining the the beginning of the end. But it is, per- the MSA must have access to at least safety certification requirements that haps, the end of the beginning. two local private plans. Further, the have to date made it impossible for ei- For all of these reasons, I will sup- demo must include—one of the largest ther the former or current Secretary of port this conference report, and I en- MSAs—one with low population den- Health and Human Services to certify courage my colleagues to do likewise. sity—one multi-State MSA—and all the integrity of imported drugs. Yet Mr. MCCAIN. Less than 5 months must be from different parts of the one in eight American households al- ago, I stood before the Senate and country. Under this criteria, Maine ready use imported prescription drugs, spoke at length of my concerns that will not qualify as a demonstration and according to William Hubbard, sen- such a package would be detrimental site. ior associate commissioner at the FDA, to the future solvency of our Nation, According to CBO this criteria serves in his testimony before the House Gov- and leave future generations with a to limit the scope of the project to be- ernment Reform Committee in June, reckless and unjust financial burden. tween 650,000 and 1 million seniors, as there is ‘‘no evidence that any Amer- Since that time, members engaged in opposed to the proposal we addressed in ican has died from taking a legal drug conference committee negotiations our letter, which would have captured from another country.’’ produced a voluminous package which 10 million seniors. The FDA has a critical role to play in represents the single largest expansion Looking back it is remarkable how the Secretary’s ability to certify the of Medicare since its creation, offering far this provision has come. Where dis- safety of imported drugs—and they’re enormous profits and protections for a cussion back in October once focused not fulfilling that responsibility. Rath- few of the country’s most powerful in- on the House-passed provisions that er than expending the resources to de- terest groups, paid for with the bor- created a national premium support velop the tools necessary to improve rowed money of American taxpayers program, we now are considering a lim- safety, and thus open access to this for generations and generations to ited, bona-fide demonstration project medications, the FDA is instead direct- come. that is a legitimate avenue for explor- ing their efforts to threaten con- Everyone here is well aware that ing new ideas to ensure the future of sumers. This is astounding because we Medicare faces enormous long-term fis- Medicare. know we have the ability to improve cal challenges. In recent years, the pro- Looking back on the development of safety. For a few pennies, anti-counter- gram’s financial state has worsened. the Senate bill, many notions existed feiting packaging can be used. We use The most recent Trustee’s Report has- about how best to encourage private it on a twenty dollar bill—a lifesaving tened the year Medicare will reach fi- plans to participate in Medicare. But prescription deserves no less. Further, nancial insolvency by four years to as we discovered, expectations about drug manufacturers were mandated 2026. Adding a prescription drug benefit the impact and results produced by back in 1992 to track their products to an already failing Medicare, is like these proposals often were in conflict. using a ‘‘pedigree’’, something which putting a band-aid on a patient that With one proposal, while CMS pre- has yet to be enforced. needs surgery. dicted 43 percent of seniors would par- I challenged the FDA to commit Earlier today I mentioned several ticipate in private plans, CBO esti- itself to improve packaging and require statistics which I believe are worth re- mated only two percent. Yet at a later better tracking to protect consumers, peating. Today, our Nation has an ac- point, in considering a measure to es- and maintain high confidence in the cumulated deficit of $7 trillion—which

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15899 translates into $24,000 for every man, be left here to clean up the mess we south to Mexico to purchase lower cost woman and child in the United States. have created with this bill. prescription drugs. The story is similar Making our bad financial condition I believe we have an obligation to fu- across the northern border where sen- worse, the Federal Government is esti- ture generations to start exorcizing iors make daily trips to Canadian phar- mated to run a deficit of $480 billion in some fiscal restraint. While our na- macies. fiscal year 2004. tional debt rapidly mounts, we con- Throughout the country an increas- Passing this bill continues our reck- tinue to increase the financial burden ing number of seniors are looking to less spending. Although this package is our grandchildren will have to bare, online pharmacies selling reduced- estimated to cost just under $400 bil- without reigning in costs. Unfortu- priced prescriptions imported from lion over 10 years, I guarantee you, $400 nately, this problem is exacerbated by other countries, oftentimes with ques- billion is merely a down payment. I our inability to put a stop to our exces- tionable safety. In all, Americans don’t believe there is one person here sive and wasteful spending, particu- spend hundreds of millions of dollars who honestly believes that $400 billion larly egregious porkbarrel projects on imported pharmaceuticals not be- is the maximum we will pay in the which Congress has become addicted cause they don’t want to buy Amer- next 10 years. to. ican, but because they simply can’t af- Additionally, this new package will We are on a shopping spree with bor- ford to. Although the conference report substantially increase existing un- rowed money. The extraordinarily does contain language on drug impor- funded liabilities. The Office of Man- large new entitlement package before tation, it has been successfully weak- agement and Budget estimates the cur- us substantially increases the already ened to the point of guaranteeing that rent unfunded liabilities of Medicare enormous burden of current and future implementation will never take place. and Social Security at $18 trillion. This taxpayers. We have to stop living in de- The only provision contained in this new benefit will add an estimated $7 nial, eventually the money has to come package that has any potential to help trillion in additional unfunded liabil- from somewhere and none of the op- rein in the cost of prescription drugs is ities. tions are desirable. The reality is, this a negotiated version of a bill Senator By 2020, Social Security and Medi- new benefit will be funded by raiding SCHUMER and I have championed for care, with a prescription drug benefit, other entitlement trust funds, through the last several Congresses. Regret- will consume an estimated 21 percent increasing our national debt, reducing tably, it is weakened from its original of income taxes for every working benefits or through increased taxes. An form. But, this language still rep- American. Adding a new unfunded enti- expansion such as this is simply not resents a partial victory for consumers. tlement to a system that is already fi- sustainable. It closes loopholes in current law that nancially insolvent, is so grossly irre- For the enormous cost of this bill, have allowed brand name drug compa- sponsible that it ought to outrage the most alarming fact is that it won’t nies to unfairly delay generic market every fiscal conservative. even provide adequate prescription entry, empowering generic firms to The American people deserve some drug coverage or enact many of the sig- challenge patents and obtain certainty straight talk. Passing this package, nificant measures needed to reform the before risking market entry. without implementing the necessary Medicare system and ensure its long- Given the difficult budgetary reali- reforms to ensure that the Medicare term financial solvency. To save this ties in which we live, this package system is solvent over the long-term, system, we must enact true free mar- should have been targeted to the most will simply expedite its failure. Clear- ket reforms and bring Medicare into needy. Today, approximately 75 per- ly, it should be incumbent upon us to the 21st century. Some provisions in cent of seniors have some form of pre- include comprehensive, free market re- this bill, including means testing Part scription drug coverage, but the pack- forms, into any Medicare prescription B and expansion of health savings ac- age before us is a universal benefit, not drug package in order to ensure that counts, are a good start toward long- one that targets those poor seniors who Medicare is financially sound for cur- term reform. Unfortunately, these we all know make difficult decisions rent beneficiaries as well as future gen- minor reforms do not outweigh the between life sustaining medicines and erations. Unfortunately, this con- burden of the new unfunded drug ben- other basic needs. One of the ludicrous ference report represents a missed op- efit. facts is that this new plan will spend portunity. With future generations of American an estimated $100 billion to cover the Medicine has changed substantially taxpayers funding the purchase of pre- people who already have coverage. since the creation of the Medicare sys- scription drugs under Medicare, we Goldman Sachs analysts estimate that tem in 1965. Advances in medical tech- have an obligation to ensure some this bill shifts a total of $30 billion a nology and pharmaceuticals have lead amount of cost containment against year in U.S. health care spending to to more prescription-based treatments, the skyrocketing cost of prescription the Federal Government. and Americans now consume more pre- drugs. Unfortunately, however, this Despite our differences of opinion scriptions than ever before. In 1968, package explicitly prohibits Medicare over this legislation, virtually every- soon after the enactment of Medicare, from using its new purchasing power to one involved agrees that in this coun- American seniors spent about $65 a negotiate lower prices with manufac- try, there exists a serious crisis for year on a handful of prescription medi- turers. The Veterans’ Administration, lower and middle income seniors and cations. Today seniors fill an average VA, and State Medicaid Programs use the disabled. I believe it is an outrage of 22 prescriptions a year, spending an market share to negotiate substantial that in a country as wealthy as ours, estimated $999. discounts. Taxpayers should be able to seniors across the country are strug- The conference report before us rep- expect Medicare, as a large purchaser gling to afford the high cost of pre- resents one of the largest enhance- of prescription drugs, to be able to de- scription drugs. ments to Medicare since its creation— rive some discount from its new mar- Here is some straight talk to Amer- setting up an entirely new bureaucracy ket share. Instead, taxpayers will pro- ica’s seniors: For those of you who and establishing a sizable new entitle- vide an estimated $9 billion a year in think this bill will solve your financial ment program. I believe this bill at- increased profits to the pharmaceutical problems I am here to tell you, there tempts to addresses a real problem, but industry. are substantial limitations to the pro- falls perilously short. We must have no Prescription drug importation is an- posed legislation. This new prescrip- illusions. There are dangers, complex- other lost opportunity for cost contain- tion benefit will not be available im- ities, and potential unintended con- ment. American consumers pay some mediately. In fact, it will take several sequences associated with this bill. of the highest prices in the developed years just to establish the new bu- This legislation is without a doubt an world for prescription drugs, and as a reaucracy which will administer the enormous fiscal and social train wreck. result, millions of our citizens travel prescription benefits. Long after this Congress and this ad- across our borders each year to pur- Once this program is in place, an es- ministration have left office our chil- chase their prescriptions. In Arizona, timated 20 percent of seniors who are dren and our grandchildren, and a fu- bus loads of seniors depart from Phoe- currently covered by former employ- ture Congress and administration, will nix and Tucson every week, heading ers—2.7 million individuals—will lose

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15900 CONGRESSIONAL RECORD — SENATE November 25, 2003 that coverage. Over the summer, the America. I have long fought for a pre- will ban Medicaid from filling in the Wall Street Journal quoted one analyst scription drug benefit, and I am truly gaps in coverage by prohibiting Med- who called this bill the ‘‘automaker en- disappointed that this bill fails to ade- icaid dollars from covering prescrip- richment act,’’ because companies will quately address this need. Seniors de- tion drugs not covered by the new see huge reductions in unfunded liabil- serve a comprehensive, reliable pre- Medicare drug plan. This could hurt 6 ities and annual drug spending. It is scription drug plan. This is no such million nursing home residents, people unconscionable that our grandchildren bill. It is a weak benefit meant to cover with disabilities, and truly indigent will be shouldering the burden of leg- the true intentions of its authors— seniors nationwide, and over 400,000 in acy costs of big business. privatizing Medicare. In short, the bill New York alone. Despite the enormous sums of money Republicans are passing today is a wolf This bill also fails to protect seniors we are spending on this package, far in sheep’s clothing. who hope to stay in state prescription too many seniors will find themselves This bill, over time, will bring about drug plans, like New York’s EPIC. Un- with a benefit that is mediocre, at best. the unraveling of the Medicare system, less corrected, this bill will force EPIC And far too many others will find breaking a promise we made to our to comply with private drug plans pre- themselves worse off than they are seniors. It does all this under the cloak ferred drug list, hampering EPIC’s abil- today. Many other seniors, might not of a prescription drug benefit that is ity to ‘‘wrap around’’ Medicare and even get out of the system what they far too small and far too weak to jus- supplement the drug coverage. The will pay in deductibles and premiums. tify the negative side effects. state legislature will be forced to I am concerned that we are about to To illustrate how this bill begins the change the law and the design of EPIC repeat an enormous mistake. I have demise of Medicare and sets our Nation to continue to program. been around long enough to remember back in its effort to care for seniors, we Retirees, dual-eligible and state plan another large Medicare prescription need only to look at the years before participants are not the only losers in drug entitlement program we enacted Medicare, when the private market this bill. The premium support provi- in 1988, Medicare catastrophic. The failed to adequately serve the elderly. sion will also hurt seniors in various image of seniors angered by the high This sicker, costlier population was an regions selected for this experiment. cost and ineffectiveness of that pack- unprofitable group for private insurers These seniors will incur a surcharge in age attacking Rostenkowski’s car, to cover. It was impossible to take care their Medicare premiums others will should be a cautionary tale to all of us. of this pool and still keep premiums af- not have to pay. The seniors who want The American people must be aware fordable. Before we passed Medicare in to stay in traditional Medicare but fall that this new package has substantial 1965, 44 percent of seniors were unin- in a metropolitan area chosen for the cost to seniors, to taxpayers and to the sured. Now 1 percent of seniors are un- premium support ‘‘demonstration’’ will future generations who will bare the insured—a lower rate than any other have a 5 percent surcharge over their majority of the financial burden. We age group. Medicare does this by being counterparts in other States. In the fu- must be realistic, there will be unin- able to spread the per-person costs ture that surcharge could spike to 88 tended consequences of our actions. across a large number of people to pool percent if the ‘‘demonstration’’ is ex- Moreover, we must be honest about the the risk. panded to a full-premium support pri- cost of this measure—$400 billion is This bill, however, fragments the vatization effort. New York seniors in merely a down payment for what we risk pool and allows private plans to Rochester and Buffalo are at risk of are creating. If we as a body decide to ‘‘cherry-pick’’ the healthiest seniors. being treated in that discriminatory support this bill, we must also commit Left behind will be a group of Medicare manner. New York State also has two to fiscal responsibility. applicants that are far more expensive other Metropolitan Statistical Areas— Despite my concern for the overall per person. This will create a two- Albany-Schenectady-Troy, and Glen package, several provisions will pro- tiered system and start an insurance Falls—that face the possibility of being vide good fixes to the existing program cost death spiral that will unravel chosen and whose seniors are therefore and a better quality of life to many Medicare’s financing. Medicare is a at risk of having to pay more in Medi- Americans. Several provisions benefit- promise we made as a nation to guar- care part B premiums than other sen- ting our Nation’s hospitals, will pro- antee seniors the health care they need iors in the U.S. vide much needed assistance to hos- in their golden years. This bill betrays The bill also hurts seniors and indi- pitals in my State, particularly teach- that promise. And it does so under the viduals with disabilities by raising ing hospitals, those in rural areas and false pretense of a prescription drug every Medicare beneficiary’s deductible those which suffer from the crippling benefit. While promising negligible pre- for physician services immediately, be- burden of uncompensated care of un- scription drug coverage, this bill im- fore seniors and people with disabil- documented immigrants. mediately puts benefits at risk for mil- ities even receive any benefits. Yet it I am, however, disappointed that the lions of seniors, including retirees, fails to deal with the rising price of Immigrant Children’s Health Improve- members of state prescription plans prescription drugs. It guts re-importa- ment Act was dropped from the con- and those who are dual-eligible for tion, weakens the generic provisions, ference report. This bill would have re- Medicare and Medicaid—the poorest and goes through the most unimagi- versed a 1996 law that prohibited States and the sickest. I voted against this nable contortions to undermine gov- from extending State Medicaid and bill for these reasons, and because ernment bargaining power, or any SCHIP Programs to legal immigrants. these flaws will particularly harm New other checks on skyrocketing prescrip- The Wall Street Journal has called Yorkers. tion drug prices. At the same time it this bill ‘‘an awfully high price to pay This bill contains little to prevent places a 45 percent general revenue for expanded Health savings Ac- employers from dropping retiree cov- trigger on overall Medicare spending. counts,’’ but I would call it legislative erage. That will disproportionately af- This puts existing non-drug benefits in malpractice. fect New York, which has a higher per- jeopardy by placing an arbitrary lid on After much thought and careful de- centage of seniors with retiree health spending and allowing drug-related liberation, I regret that I cannot vote than other States. In New York State, spending to grow uncontrollably. That for this conference report. I have 36.5 percent of Medicare beneficiaries means other Medicare benefits will get reached this conclusion, not because I have retiree coverage compared to a squeezed into tighter and tighter fiscal believe our seniors and disabled do not national average rate of 31.8 percent. constraints. If they can’t fit those con- need or deserve prescription drug cov- Over 200,000 Medicare beneficiaries in straints, this bill forces those existing erage, but because I do not believe our New York will lose their retiree health benefits onto the chopping block year country can sustain the cost of this benefits under this bill. after year. package and because I fear that our ac- This bill will also reduce drug cov- I and many of my colleagues have ex- tions will not provide adequate assist- erage for the lowest-income and sick- pressed concerns, not just with aspects ance to most beneficiaries. est Medicare beneficiaries—those du- of this bill, but with the appalling Mrs. CLINTON. Mr. President, this is ally eligible for Medicare and Medicaid. process with which it was thrust upon a sad day for seniors and a sad day for In a cost-savings provision, this bill us. As complex and confusing as this

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15901 bill is, the senate discussed it for less not a simple task as there are so many made it into the conference report, I than a week now. We have not been moving parts, each with its own impli- am very concerned about the actual given ample time to understand this cations. drug benefit. While the conference re- bill, and our constituents have not The Senate bill, which I supported port appears to do a pretty good job of been given adequate time to discern was not perfect. While it had its flaws, addressing the prescription drug needs how it will affect their lives. it represented a bipartisan effort and a of many low-income beneficiaries, Fortunately, there are some provi- first step towards providing the kind of most seniors, especially those above 150 sions included that I support. I am very prescription drug coverage seniors percent of poverty will be expecting glad to see that this bill stops the dam- need. With the conclusion of that vote, much more than what they will receive aging cuts to physician payments and I remain cautiously optimistic that under the program. This will be a provides a small increase to physicians conferees would be able to deal with shocking wake up call for many around instead. I am pleased that the bill in- some of the inherent problems in that the country when the plan finally cludes between $300 and $400 million for bill. I was hopeful that conferees would reaches them in 2006. rural and small community hospitals find a way to eliminate or come very Not only will seniors across the coun- and health providers in New York, close to eliminating the employer- try experience varied premium rates while also providing additional funds sponsored retiree coverage drop prob- and benefits, but many seniors will not for public and other hospitals who lem. I was hopeful that conferees could break even under the plan, spending serve a disproportionate number of un- maintain the level playing field be- more in premiums, copayments and insured or Medicaid patients. And tween traditional Medicare and private deductibles than the value of the drugs while I would have liked to see all plans. And I was optimistic that they need in a given year. In South Da- teaching hospital cuts averted, I am progress could be made on reducing the kota, about 16.6 percent of the Medi- pleased that at least some improve- high cost of prescription drugs that care population will fit in this cat- ments were made for graduate medical Americans pay compared to the rest of egory. This is not what seniors are ex- education, since New York State trains the world. pecting and they should know this many of the graduate physicians in the I was hopeful and confident, but I right away—up front. nation. This bill also includes a version must unfortunately report today that Additionally, many beneficiaries will of Senator SCHUMER’s proposal, which those feelings are now all but entirely hit the coverage gap and remain there provides greater market competition lost. I am discouraged that my col- for a long period of time in any given for generic drugs. And finally, this bill leagues on the other side of the aisle year. In my home State, approximately contains a proposal that I offered as an abandoned the bipartisan spirit of the 24.4 percent of seniors will hit the cov- amendment on the Senate floor—the conference committee. Senator erage gap of $2,250 but never reach the comparative effectiveness research pro- DASCHLE, who has always been a strong catastrophic level of $5,100, meaning vision. This will assure that we spend leader on this important health care they wind up paying 100 percent of money on drugs that are most effec- access issue, as well as many other their drug costs or $2,850 while con- tive, not just the ones that are most Democratic members, had been com- tinuing to pay a monthly premium to advertised. pletely shut out of the conference com- their PPO or drug-only plan. I know These positive provisions, however, mittee. This is a very unfortunate cir- that South Dakotans will be saying to should have been attached to a good cumstance, and the result today is ob- me in the fall of 2006 that rather than bill. They are not enough to justify un- vious. pay for a deal like that, they might as dermining the promise of Medicare. I It is obvious because now we are well just take a bus trip up to Canada believe New York deserves a better bi- faced with a conference report that to get their drugs for a much cheaper partisan alternative than the one that does not represent a fair balance be- deal. passed today, and I will continue fight- tween the strong Senate bill and the In addition to these less than ideal ing this year, as well as in years to bill passed by a 1-vote majority in the benefits, I am angered that this bill come, to correct the deficiencies I’ve House. Rather, today we have a con- does almost nothing to constrain the described today so that Congress might ference report that moves to privatize rising cost of prescription drugs. I am deliver on the long-awaited promise of Medicare, actually prohibits the gov- pleased that provisions have been in- a simple, affordable, comprehensive ernment from negotiating lower drug cluded to speed access to lower priced prescription drug benefit for all sen- prices, and puts rural and chronically generics, however beyond that, it is iors. ill seniors at risk of suffering higher blatantly obvious that many have gone Like so many other pieces of legisla- premiums than their urban and to great lengths to establish road- tion we have witnessed in the past two healthier counterparts. All of these blocks against real price reform. The and a half years, this bill is designed to things weigh on my mind as I think conference report disallows the Sec- please special interest and not the pub- about this very important vote. retary any real authority to negotiate lic. It will be a benefit to drug manu- And I am especially frustrated that for lower priced drugs for the 41 million facturers. And it will be an benefit to the majority has intentionally held the seniors that will be eligible for this private insurance providers. They are rural provider package hostage. This program. This is the real tragedy in the big winners here, and that’s not package should have been passed with this conference report of which people right. the tax bill, but President Bush made a across America must be made aware. We need a bill that will benefit sen- convenient promise to our Republican Disturbing are the estimates that the iors. They deserve a benefit that is friends to address this issue in the con- pharmaceutical industry will experi- comprehensive, wide-ranging, and reli- text of the Medicare prescription drug ence windfall profits of at least $139 bil- able. Today’s bill is mainly a bill to bill and they have now created the illu- lion dollars over eight years as a result privatization of Medicare. And it’s not sion that a no vote for this bill equates of this new program. Our friends on the only seniors who will be harmed. All to a lack of support of rural provider other side of the aisle talk of ‘‘free Americans, young and old, will deal payment equity. Well, this is simply market’’ and ‘‘fiscal discipline’’ but with the financial and medical con- not true. Many of my colleagues on the went far beyond turning the other sequences of this bill for years to come. Rural Health Caucus have worked tire- cheek when they struck the Senate’s This is a bad bill for seniors and a bad lessly over many years to achieve pay- reimportation provisions that dis- bill for America. ment equity for our providers. I would allowed drug manufacturers to restrain Mr. JOHNSON. Mr. President I rise like to thank all members of our cau- their exports to other countries. This today, conflicted about the conference cus, and especially Senator HARKIN for is not free market colleagues and such report now before this body. Shortly, his hard work on this issue. I have long excess will eventually threaten the via- my colleagues and I will be faced with supported these important provisions, bility of the Medicare Part D prescrip- making a very important decision re- which were all contained in the better tion drug benefit. garding whether or not we think this Senate-passed bipartisan bill. I am also concerned that while con- Medicare conference report is good And while I am pleased that the Sen- ferees have provided some dollars in enough for America’s seniors. This is ate bill’s rural provider package has the final report to address the loss of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15902 CONGRESSIONAL RECORD — SENATE November 25, 2003 employer-sponsored retiree drug cov- will be able to achieve lower prices for respect to delineating the jurisdic- erage, we have only partly addressed seniors because they will enjoy over $12 tional reach of the Federal Energy this problem. I was pleased to see that billion in slush fund money from a so Regulatory Commission, FERC. As a conferees allotted funds to address this called ‘‘stabilization fund’’ that is in- Senator from the West, I’ve been frus- issue in part. And while the conference cluded in the conference report lan- trated by FERC’s effort to impose a report reduced the drop rate by about guage. These are not options or choices mandatory ‘‘Government knows best’’ 14 percent, 23 percent of seniors will nor do they represent a level playing one-size-fits all standard electric mar- still lose the generous retiree coverage field for traditional Medicare, and I ket design, or SMD, on all regions of they now enjoy. Additional dollars fear they will hurt rural America and the Nation. This proposal has drawn se- were available in the budget to further represent the first steps in a scheme vere criticism from the West and other reduce this number. Unfortunately, being pushed by this Administration to regions of the country, as being un- conference leadership chose to spend- fully privatize the Medicare program. workable and potentially disruptive to ing billions on health savings accounts, With a budget allocation of $400 bil- the functioning of our vital electricity which have nothing to do with Medi- lion this year for a new Medicare drug infrastructure, all to the detriment of care or the prescription drug benefit, benefit, Congress had a great oppor- consumers. This criticism comes from and only serve to help healthier and tunity to reach a long awaited goal. a broad spectrum including State regu- wealthier Americans save money on The bill I supported in the Senate was lators, industry representatives and the costs of their health care. I find the start in the right direction towards consumer groups, all of whom express this very disappointing and, frankly, meeting that goal and I am so dis- concerns about the inflexibility of the unacceptable. appointed that what is before us today SMD requirements, the untested na- There are countless others in my has taken far too many steps in the ture of many of them in regions with- State and across the country that are wrong direction. Colleagues, seniors de- out a history of RTO operations, and left out under the so called ‘‘agree- serve better than this and I deeply re- the potential cost burdens on elec- ment’’ before us. In South Dakota, 14.1 gret I cannot support this conference tricity consumers. percent of Medicare beneficiaries are report. Normally, one would have expected also eligible for Medicaid. These ‘‘dual Mr. KYL. Mr. President, today I dis- an agency like FERC to respond to eligibles’’ were protected under the cuss the energy conference report, and such comments at a minimum by de- Senate bill by maintaining their gen- begin by commending the Chairman of laying its SMD proposal, or proposing a erous Medicaid coverage. Under the the Senate Energy and Natural Re- more measured approach, both in scope final version, those individuals will sources Committee for his tireless and mandatory application. Instead, suffer higher copayments and will run work to pull together such a com- FERC has indicated it will proceed the risk of losing access to important prehensive measure. The energy con- with the fundamentals of SMD. As a re- ference report attempts to improve our life-saving medications if a particular sult, Congress has been forced to take Nation’s energy supply and reliability, drug is not covered on their new Medi- the unprecedented step of mandating a and for that it should be praised. Un- care drug formulary. Additionally, in pause in SMD, through 2006, to enable fortunately, it also contains numerous my State thousands fewer seniors will those involved in this critical industry provisions that will distort competitive not qualify for the low-income protec- to assess how to proceed. It is unfortu- markets for energy through subsidies, tions because the conference report re- nate that Congress must, in effect, ad- tax breaks, special projects, mandates duced the poverty threshold from 160 monish a Federal agency in this way; and, last but not least, outlandish percent as was in the Senate bill to 140 but we have an obligation to see that amounts of Federal spending. percent, as well as instituted a strict Mr. President, I have been particu- an agency Congress created proceeds in assets test for low-income benefits. larly interested in the provisions in the the deliberate and thoughtful manner Of most concern to seniors in rural electricity title that are designed to that the issue demands. South Dakota will be the proposal’s restructure our electricity markets. I hope that FERC follows both the heavy reliance on managed care. In my Some of my colleagues have been spirit and the letter of this law. The home State, currently there are no tempted to move immediately to com- Senate will be watching to make sure beneficiaries enrolled in the pletely unregulated electricity mar- that FERC does not move forward on Medicare+Choice program. If we take kets; others favored imposing a more SMD by changing its name to WMP, or lessons from that fact, one that is mir- stringent regulatory regime as a result using a different legal basis, such as rored in many rural states, we must of problems in California. just and reasonable rates, rather than conclude that the managed care op- Representing Arizona, I was well discrimination. Change your agenda, tions in this conference report are not aware of the problems stemming from FERC. Don’t waste our time by forcing likely to have much success in those the California energy crisis, but cannot us to save the electrical industry from areas. agree with those who say the solution your zeal to regulate, whether with a The Senate bill did contain a strong is to return to a command-and-control standards of conduct rulemaking, a fallback provision which would have regulatory structure. I continue to be- supply margin assessment test, or a provided real choices to rural seniors. lieve that the most efficient way to al- yet to be designed mistake. Under the bill I supported, if two ‘‘pre- locate resources is through competitive For example, the standards of con- scription drug only plans’’ of PDP’s markets. The chairman has done an ad- duct rule, as proposed during the SMD were not available in a given region, mirable job of trying to encourage development period, represents a direct seniors would have the choice to select competitive markets while making attack on the internal organization of a government-run fallback option. It is sure that consumers continue to pay vertically integrated utilities. Before my understanding that under the con- the lowest possible price for energy re- the proposed rule is finalized, it must ference report that guaranteed fallback sources. be amended to eliminate elements that trigger is restricted because only one There are several provisions in this parallel the SMD proposal. The asser- PDP and one managed care plan are re- bill that hit the right balance for our tion of jurisdiction over retail sales of quired to prevent the fallback from electricity policy. The legislation re- vertically integrated utilities is clearly being made available. peals the Public Utility Holding Com- within the scope of SMD. This scenario means that a senior in pany Act of 1935. As we all know, our We understand that FERC has and South Dakota has to choose between energy markets have evolved signifi- will continue to have matters before it two bad options: be forced into a man- cantly since the era of the Great De- that may also involve issues raised in aged care plan and lose the choice of pression. State regulators are smarter, the SMD NOPR. We have proposed sav- their doctor to achieve affordable drug more well-equipped, and able to protect ings provisions in the bill that are in- prices, or join the only PDP plan in the consumers from the ills that gave rise tended to permit FERC to resolve region that enjoys a captive market to the Public Utility Holding Company those issues when they arise. However, which allows them to charge whatever Act of 1935 nearly 70 years ago. the savings provisions do not detract premium they desire. The managed I am also pleased that the conference from the clear mandate that FERC not care plans under this conference report report has found the right balance with act prior to the end of 2006 on SMD or

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15903 any rule or order of general application means to correct market abuse; it is tive in encouraging activities we con- within the scope of the proposed SMD not meant to be a back door to full sider laudable for one reason or an- rulemaking. FERC jurisdiction over governmental other, I believe that, as stewards of the I have often expressed my concern entities. taxpayers’ money, we must only sup- with what some industry officials have The chairman should also be com- port those credits that provide broad termed a jurisdictional reach by the mended for what is not in this bill. I benefit to all taxpayers and that are Federal Energy Regulatory Commis- note that there are some who wanted worth the revenue they will cost the sion into the delivery of power to retail to include a renewable portfolio stand- Federal Treasury. customers. The service obligation ard. I commend the chairman and the I do not believe that any of the tax amendment that I worked on with the Chairman of the Budget Committee for credits in the conference agreement chairman has been included in this convincing fellow conferees that a re- meet these tests. Let me highlight package, and I believe it provides a newable portfolio standard would be three particular provisions. The con- commonsense way to promote competi- costly and yield few benefits. I am also ference agreement extends and expands tive markets while preserving the reli- pleased that the chairman saw the wis- the credit provided in section 45 of the ability that retail electric consumers dom of not including a climate-change Code. This credit is available on a per- expect and deserve. In its actions gov- provision. kilowatt-hour basis for energy pro- erning access to transmission systems, Gratifying, as well, is that the con- duced from wind, solar, closed-loop bio- FERC has not adequately ensured that ference report has not pursued a com- mass, open-loop biomass, geothermal, the native load customers, for whom mand-and-control approach with re- small irrigation, and municipal solid the system was constructed, can rely spect to regional transmission organi- waste. I believe that the credit for wind on the system to keep the lights on. zations, or RTOs. I believe the best ap- energy should have sunset several The bill adds a new section 217 to the proach, which is captured in this con- years ago. Wind energy has been pro- Federal Power Act to ensure that na- ference report, is for FERC to provide vided this credit since 1992 and if it is tive load customers’ rights to the sys- incentives to encourage membership in not competitive after a decade of tax- tem, including load growth, are pro- RTOs and independent system opera- payer subsidies, it will never be com- tected. tors. As lawmakers, we need to be sen- petitive. In 2001, the wind industry was It is also worth noting that the con- sitive to the policy changes we propose in fact touting its great success and ference report expands jurisdiction and how the laws we draft will affect competitiveness with other forms of over those stakeholders in electric Wall Street and the markets, and we energy, but here we are extending the markets that were previously unregu- must make sure we promote the invest- wind credit for 3 more years. All of the lated by the FERC. The FERC-lite pro- ments that are needed. This is a prime credits I just mentioned, except wind vision that addresses the Federal En- example of how the conference report and closed-loop biomass, are eligible ergy Regulatory Commission’s efforts has sought to advance policies to which for the credit for the first time in this to provide open access over all trans- the investment community can re- bill. I wager that we will still be paying mission facilities in the U.S. again, in spond favorably. for the ‘‘temporary’’ advantage being my mind, strikes the right balance. It Related to the need to give clear sig- given to these new energy forms a dec- requires FERC to ensure that trans- nals to the investment community, I ade from now. mission owners—whether they are mu- believe that the participant-funding Let me point out that it’s good that nicipal utilities, power marketing ad- provisions have placed FERC in the ap- the conference agreement calls for a ministrations, or electric coopera- propriate role of providing incentives study of the section 45 credits. If we tives—deliver power at terms that are to invest in transmission infrastruc- are going to spend more than $3 billion not discriminatory or preferential. ture. As a member of the Energy Com- on these credits, we should at least However, this provision is limited and mittee, I have heard countless hours of know whether they are having a posi- does not give FERC the ability to begin testimony on the Nation’s trans- tive effect and whether these forms of regulating the rate-setting activities of mission grid being woefully under- energy will ever be able to survive these organizations. If FERC finds funded, and the urgent need for signifi- without a taxpayer subsidy. A 2002 fault with the transmission rates of cant upgrades to meet energy demands Cato Institute study suggests that sec- such an organization, the bill provides in the future. The provision on partici- tion 45 is not worth the expense; some that FERC will remand the rates to the pant funding address this need and economists estimate that the cost is local rate-setting body for reconsider- gives FERC the appropriate instruc- double the benefit. ation. FERC-lite does not confer fur- tions to adapt methodologies for par- Another of the credits provided in ther authority to FERC over public ticular regions. the agreement is the tax credit for bio- power systems. FERC cannot order As I have said, some important provi- diesel fuel. In addition to questions I structural or organizational changes in sions of this conference agreement have about the need for this credit, I an unregulated transmitting utility to have much to recommend them. Still, I have heard concerns from companies comply with this section. For example, find the bill’s many tax subsidies— located in Arizona that this credit if an integrated utility providing a most in the form of tax credits—to be might have unintended results, includ- bundled retail service operates trans- irresponsible, unnecessary, and ineffi- ing affecting market prices for tallow mission distribution and retail sales cient. There are just too many of them and glycerin, which are byproducts of out of a single operational office, the to permit me, in good conscience, to biodiesel production. I strongly encour- commission cannot require functional vote for this bill. age the Finance Committee staff to separation of transmission operations My overarching concern has to do closely monitor whether and how the from retail sales operations. with the use of tax credits by the gov- biodiesel credit affects the market I would also like to mention the new ernment. The Federal Government uses prices for these products. refund authority provision in the bill. I tax credits to induce individuals or Finally, the conference agreement understand that the purpose of the new businesses to engage in favored activi- provides tax credits for the purchase of section 206(e) of the Federal Power Act ties. This can distort the market and a new qualified fuel cell, hybrid, or al- is to permit FERC to order refunds cause individuals or businesses to un- ternative fuel motor vehicles. I have where a governmental entity volun- dertake unproductive economic activ- grave concerns about this provision tarily enters the wholesale market and ity that they might not have done ab- and I refer my colleagues to Arizona’s acts egregiously. Section 206(e) gives sent the inducement. Tax credits are disastrous experience with its alter- FERC authority to order refunds where really appropriations that are run native fuel vehicle tax incentives. The a governmental entity voluntarily en- through the Internal Revenue Code, program could have cost Arizona half a ters a FERC-regulated market, makes the Code, and are a way to give Federal billion dollars—11 percent of the short-term wholesale sales and violates subsidies, disguised as tax cuts, to fa- State’s budget—if it had not been re- FERC’s substantive rules of general ap- vored constituencies. It is something pealed. When proposed, the cost of the plicability governing other sellers into we should do sparingly—very spar- program was projected to be only be- that market. Section 206(e) provides a ingly. While tax credits can be effec- tween $3 million and $10 million—less

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15904 CONGRESSIONAL RECORD — SENATE November 25, 2003 than 10 percent of its true cost. The prior to allocating such private busi- especially those negotiated by Chair- Joint Committee on Taxation esti- ness use to tax-exempt bond man DOMENICI, I must vote against it mates that the provision in this con- proceeeds—the ‘‘Equity First’’ rules— because of the $24 billion in tax sub- ference agreement will cost $2.23 bil- have not been issued, although an ad- sidies and the bill’s irresponsible ma- lion over 10 years. While I appreciate vance notice of proposed rulemaking nipulation of the energy markets that the Finance Committee incor- has been issued. through an ethanol mandate. porated several changes to reflect les- Accordingly, in recognition of the Mr. CONRAD. Mr. President, I sup- sons learned from Arizona’s experience, purposes of the act, I would ask the port the Medicare conference report I seriously doubt we can be confident Treasury Department to strongly con- that is before us. about the revenue estimate for these sider: (1) Amending the regulations or This was not an easy decision, be- provisions of the conference agree- providing other general guidance relat- cause the conference report is far from ment. That’s why I am particularly ing to the use of transmission for open perfect, but I believe it is the right de- disturbed that it deletes a requirement access to provide the same degree of cision for three reasons. that was in the Senate bill for a study broad flexibility whether or not the fa- First, most basically, the bill pro- of the credits. Such a study could have cilities are operated by an ITO, and (2) vides $400 billion to add a voluntary given Congress important information issuing proposed and final regulations prescription drug benefit in Medicare. about how much the credits are cost- relating to Equity First for output fa- Prescription drugs are an integral part ing, how effective they are at encour- cilities as expeditiously as possible, of modern medicine. Yet they are not aging the purchase of alternative fuel taking into account the public com- covered by Medicare today. No other vehicles, and how long the credits will ments submitted. health insurance program in this coun- Fleixible guidance on both these be needed. try today fails to cover prescription Beyond the issue of tax credits, I points would greatly assist the Na- drugs. It is long past time to add drug would also like to say a word or two tion’s publicly owned utilities in con- coverage to Medicare. about the tax provisions that were in- tributing to the reliability in the elec- The bill before us creates a voluntary cluded in this legislation that I believe tricity grid that this bill seeks to im- prescription drug benefit in the Medi- have merit. These generally have to do plement. care program starting in 2006. Here’s Now for ethanol. The ethanol provi- with assigning more realistic deprecia- how it would work. Those beneficiaries sions of the conference report are truly who choose to sign up for this benefit tion recovery periods to various en- remarkable. They mandate that Ameri- will pay a premium estimated to aver- ergy-related investments. For example, cans use 5 billion gallons of ethanol an- age $35/month starting in 2006. Bene- the agreement assigns a 7-year life to nually by 2012. We use 1.7 billion gal- ficiaries would then have to meet a de- natural gas gathering pipelines and a lons now. For what purpose, I ask, does ductible of $250 in out-of-pocket spend- 15-year life to natural gas distribution Congress so egregiously manipulate the ing on prescription drugs. Above $250, lines. I strongly believe that the Code national market for vehicle fuel? No Medicare will pay 75 percent of the requires a great many investments to proof exists that the ethanol mandate next $2000 in drug costs. Then, the ben- be depreciated over too long a time pe- will make our air cleaner. In fact, in riod, so I am pleased the agreement be- Arizona, the State Department of Envi- efit cuts off. Medicare will pay nothing gins addressing this problem. ronmental Quality has found that more until the beneficiary has paid an addi- Next, I want to discuss an issue that ethanol use will degrade air quality, tional $2850 out-of-pocket. Beyond this I had hoped would be addressed in the which will probably force areas in Ari- gap in coverage, Medicare will then conference report that will accompany zona out of attainment with the Clean pay 95 percent of all additional drug the agreement, but that was not in- Air Act. Arizonans will suffer. Further- costs. cluded. I had hoped that one aspect of more, according to the Energy Infor- Obviously, this is not a perfect drug the transmission issue would be ad- mation Administration, this mandate— benefit. It is not the drug benefit I dressed in the conference with some costing between $6.7 and $8 billion a would have designed. And it is going to simple report language. That issue has year—will force Americans to pay more fall short of many seniors’ expecta- to do with the electricity supplied in for gasoline. Nor is an ethanol mandate tions. The simple reality is that one the evolving marketplace by publicly needed to keep the ethanol industry cannot produce a comprehensive drug owned utilities. Unfortunately, the alive. That industry already receives a benefit that looks like the private conference report does not address this hefty amount of Federal largesse. CRS health insurance coverage most Ameri- issue and I raise it now as something I estimates that the ethanol and corn in- cans are used to for just $400 billion. hope the Treasury Department will ad- dustries have gotten more than $29 bil- But the $400 billion in drug benefits dress. lion in subsidies since 1996. Yet, this provided by the conference report will A significant goal of this bill is to bill not only mandates that we more mean a significant improvement in foster open access to the greatest ex- than double our ethanol use, but pro- health coverage for millions of seniors tent possible. However, in recognition vides even more subsidies for the indus- across the country. It will provide a of the limitations imposed by section try—as much as $26 billion over the meaningful—if imperfect—benefit to 141 of the Code, the electricity title next 5 years. seniors who currently have no cov- provides that States and municipalities Professor David Pimentel, of the Col- erage, and it will offer more com- may not be ordered to provide trans- lege of Agriculture and Life Sciences prehensive coverage and catastrophic mission services in a manner which at Cornell, has studied ethanol. He is a protection to seniors who currently would result in any bonds ceasing to be true expert on the ‘‘corn-to-car’’ fuel rely on medigap plans. This is a step treated as obligations the interest on process. His verdict, in a recent study: forward. If we do not pass the bill be- which is excluded from gross income. ‘‘Abusing our precious croplands to fore us today, seniors could be forced As my colleagues may know, the ap- grow corn for an energy-inefficient to wait years before we get another op- plicable Treasury regulations are flexi- process that yields low-grade auto- portunity to update the Medicare Pro- ble in applying section 141 where trans- mobile fuel amounts to unsustainable, gram. In my view, we need to take this mission facilities are operated by an subsidized food burning.’’ It isn’t effi- opportunity to lock in a prescription independent transmission operator, cient. The fuel is low-grade. And what drug benefit now. We can come back ITO, approved by FERC. The Treasury is more, Congress, by going in for later to fill in the gaps in coverage and regulations, however, are significantly ‘‘unsustainable, subsidized food burn- fix the other troubling provisions of less flexible for other open access ing,’’ will impede the natural innova- this bill. transmission where the facilities are tion in clean fuels that would occur Second, the bill provides a very gen- not operated by an ITO. In addition, with a competitive market, free of the erous benefit for low income seniors— the conferees are aware that final regu- Government’s manipulation. These those with incomes below 150 percent lations relating to the allocation of ethanol provisions, alone, dictate that of the Federal poverty level, or about private business use to facilities and I vote against the bill. $13,470 for singles and $18,180 for cou- portions thereof financed with funds So, in conclusion, while this bill in- ples. Seniors in this category—about 40 other than tax-exempt bond proceeds cludes several meritorious provisions, percent of the seniors in my State—

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15905 will not face a gap in coverage. They the smallest communities in the state. In my view, it is a serious mistake to will get the vast majority of their In addition, the Medicare bill includes set up a system that could force sen- drugs covered, with minimal out-of- important provisions to improve the iors to change drug plans every year. pocket costs. In addition, they will get Critical Access Hospital Program. Under this approach, each year seniors a $600 annual credit toward their drug Today, about 28 hospitals in my state could face a different premium, dif- costs in 2004 and 2005 before the main have this designation. This bill will ferent coinsurance charges, and dif- drug benefit takes effect. These low in- place them on sounder financial foot- ferent lists of covered drugs. I think come seniors by definition are the ones ing. seniors will be very surprised to learn who most need help paying prescrip- Along with the provisions to assist that they will not have the same ben- tion drug costs. North Dakota hospitals, the Medicare efit from year to year. During consider- In particular, all seniors with in- bill will also address payment inequi- ation of the Senate version of this bill, comes below the Federal poverty ties experienced by our physicians and I fought to correct this plan. My level—about $8,980 in annual income will ensure they do not face payment amendment would have allowed seniors for singles and $12,120 for couples—will cuts in the coming years. There are to stay in a government-sponsored pay no premium. They will pay no de- also new adjustments for home health back-up plan if they liked it. But that ductible. They will have no gap in cov- care providers and ambulance services. effort was rejected by those who in- erage. They will pay just $1 for generic I hope these provisions will make a sist—in a triumph of hope over experi- prescriptions and $3 for brand-name real difference in their ability to con- ence—that private drug-only plans will drugs. tinue providing quality care across our work even though they do not exist Those with incomes up to 135 percent state. In total, this part of the bill is a today. of the poverty level and less than $6,000 very significant victory for rural In the conference, the option was fur- in countable assets will also pay no America. ther scaled back to make it even less premium. They will pay no deductible. For these three reasons, I have con- likely that seniors can choose a stable, They will have no gap in coverage. And cluded that we should pass this bill, government sponsored backup. The they will pay only $2 for generic drugs but we should not oversell it either. As Senate bill required that seniors be and $5 for most brand-name medica- I noted at the outset, this bill is—in given the option of enrolling in the so- tions. many respects—very disappointing. called fallback plan if they did not Those seniors with incomes above Quite simply, it could and should have have at least two private drug-only these thresholds, but still below 150 been a much better bill. plans to choose from. But the con- percent of the poverty level, will pay a Democrats in the last Congress put ference report will not give seniors the sliding scale premium based on income. together a prescription drug bill that I fallback option if there is just one pri- They will pay a $50 deductible. And was proud to sponsor. It provided a vate drug only plan available, so long they will pay 15 percent coinsurance on good drug benefit to all seniors. It did as there is also a managed care Pre- all their medications, until their drug not have any gaps in coverage, where ferred Provider Organization plan in costs reach $3600. After that, they will seniors would continue to pay monthly the region. I fear that this will give pay only 5 percent coinsurance. Seniors premiums but get no assistance from seniors an unpalatable choice if they who qualify for any of these low in- Medicare with their drug benefits. It want access to drug benefits. Either come benefits will get an extremely did not rely on creating a whole new they will have to join a PPO that re- generous drug plan. In my view, this type of insurance plan to meet the drug stricts their access to health care pro- benefit alone is a very significant needs of seniors. Instead, it used the viders of their choice, or they will have achievement. delivery mechanism that the private to join the one private drug-only plan Third, the bill includes a whole host sector uses to provide drug coverage. It even if it charges excessive premiums. of rural provider provisions that I au- was a bill that would have provided That brings me to another area that thored or coauthored. Currently, rural much more comprehensive prescription I think will be a surprise to seniors: areas face huge payment disparities. drug coverage to seniors at a reason- the variation in premiums. The au- For example, Mercy Hospital in Devils able price. Compared to what we have thors of this bill like to talk about how Lake, ND, gets paid just half as much before us today, it was simple and eas- the premiums will be $35 a month. But as Our Lady of Mercy Hospital in New ily understandable for seniors. It did what they don’t tell seniors is that $35 York City for treating exactly the not have a complex scheme of differing a month is just an estimate. Individual same patient with exactly the same ill- copayments, coverage gaps, and pre- drug plans will have premiums that ness. Yet hospitals in North Dakota miums. But that bill was blocked by can vary substantially. If the drug don’t pay half as much for equipment Republicans. plan’s projected cost for delivering the as their urban counterparts. And rural This year, the leadership on the benefit is only slightly higher than the hospitals have much smaller patient other side appears to have put ideology national average—a real concern in loads over which to spread their costs. and special interests ahead of the in- many areas—the premium would be As a result, rural hospitals are on the terests of seniors in crafting many of substantially higher than $35 a month. brink of financial failure. These hos- the details of this drug bill. As a result, I think seniors will be very surprised to pitals are critical economic anchors in seniors will be facing an untested de- learn that their premiums may actu- their communities. Other rural health livery model that may not provide the ally be as much as $45 or $50 a month care providers, from clinics to home advertised benefits at the advertised instead of the $35 that has been adver- health to ambulance services, face prices. The simple fact is that there is tised. These differences will be com- similar payment inequities. This bill no such thing as a private, drug-only pounded because monthly premiums will go a long way to eliminating some insurance plan in the commercial in- will increase each year in line with the of the Medicare funding inequities that surance market anywhere in this coun- increase in prescription drug costs. have hurt rural health care. It will help try. They just do not exist. By con- The thing about this bill that might make sure rural Medicare beneficiaries trast, we have a proven, successful de- be the biggest surprise for seniors will continue to have adequate access to livery model in the traditional Medi- be the coverage gap, sometimes called health care. care program. It works just fine in pro- the donut hole. The authors of the bill Specifically, this bill will close the viding medical and hospital coverage understandably don’t want to advertise gap in standardized payment rates, to seniors today. Yet, in drafting this this gap in coverage. Many seniors which will ensure rural hospitals’ base bill, the authors insisted that the plan probably don’t even know that it ex- payments are equal to those of urban rely on untested private, drug-only in- ists. But when they hit this gap in cov- providers. The legislation also takes surance plans. However, it is possible erage, they are going to be mighty sur- important steps to address inequities that no such plans will materialize. Or prised. The will discover that Medicare in the wage index system, which is in- they may be highly unstable—entering isn’t covering one penny of their drug tended to account for labor costs. And a region one year, just to turn around costs even though their monthly part it provides a new, low-volume adjust- and leave the next year if they are not D premium keeps coming out of their ment payments for facilities serving making a profit. Social Security checks. And they’re

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15906 CONGRESSIONAL RECORD — SENATE November 25, 2003 going to be doubly surprised when they of the fallback drug plans that will be ment the health insurance market, un- find out that the gap isn’t a little more important in many rural and other dermining the fundamental principle of than $1000 wide, but is closer to $3000. areas of the country. They also loaded spreading risk that allows insurance The authors of the bill like to talk down those weak old bones with a new, markets to work. Health savings ac- about a coverage gap from $2250 in drug heavy load: This bill now is carrying a counts will pull wealthier, healthier costs to $3600 in drug costs. When you number of provisions that, in my view, workers out of the insurance pool, giv- read the fine print, you learn that the will harm the Medicare program and ing upper income taxpayers significant real gap is from $2250 to $5100. That’s our health care system. tax savings. Those who remain in tra- because the $2250 counts all drug costs, For example, the bill requires dem- ditional insurance plans—average by both Medicare and the beneficiary. onstration projects to privatize the workers who would gain little in tax But the $3600 counts only spending by Medicare program, taking the first benefits from the HSAs and those with the beneficiary. When total spending steps in turning it from a defined ben- significant medical costs—will then hits $2250, the beneficiary has paid efit entitlement to a voucher program. face higher premiums. This is the first $750—the $250 deductible and 25 percent I am pleased that this demonstration step toward creating a two-tiered coinsurance on the amount from $250 has been limited to just six areas. I am health system in this country. I oppose to $2250. So Medicare won’t pay an- hopeful that even these few demonstra- this policy. The money spent on these other dime until the beneficiary has tions may not get off the ground. I, tax giveaways could have been far bet- paid an additional $2850 out-of-pocket. nonetheless, strongly oppose this ef- ter spent to help ensure that existing Some who are watching might ask, fort. This policy will allow private Who in their right mind would design a retiree health coverage is not eroded. plans to cherry-pick younger, healthier Finally, the bill fails completely to drug benefit that starts, then stops, beneficiaries, leaving older, sicker impose any restraint on the costs of then starts again, the way this one beneficiaries to face higher premiums prescription drugs. One of the chief does? Why does the benefit have this in the traditional Medicare program. complaints I hear from North Dakota gap in coverage? The answer is simple: This is terrible health policy, and I money. It would cost tens of billion of seniors is that drugs cost far too much. hope we will succeed in reversing it in dollars to close this gap. The folks on I had hoped that Medicare—which has the future. the other side of the aisle made tax been more successful in holding down The bill also contain a $10.5 billion health care cost increases than the pri- cuts for the wealthy a higher priority ‘‘stabilization fund’’ that allows the than a prescription drug benefit for vate sector—could use its enormous Secretary of HHS to make additional market clout to negotiate lower costs middle income seniors. As a result, payments to managed care plans. This they didn’t have enough money left for prescription drugs. Unfortunately, slush fund will just add to the substan- over to provide a drug benefit without the bill does not do that. In fact, the tial overpayment of managed care this gap in coverage. By most esti- bill contains language that specifically plans that already exists in the Medi- mates, about one third of all seniors prohibits Medicare from using its mar- care plan. To me, it makes no sense to will reach a point at some time during ket clout to negotiate with pharma- talk about managed care saving money the year when Medicare just stops pay- ceutical companies. for Medicare when it costs Medicare ing any part of their drug bills. They In addition, the conference failed to more to move people into managed will keep paying premiums, but Medi- include a strong provision on drug re- care. Why should we pay managed care care will not pay another dime until importation that was passed by the billions and billions of dollars more and unless they reach the catastrophic House of Representatives. As a result, spending threshold. than we would pay in traditional Medi- Americans will not be able to access Finally, I am concerned about the ef- care to provide the same benefit? That lower cost medications from other fect of this contorted benefit structure money could have been put to far bet- countries. Reimportation will not serve on retiree drug coverage. Millions of ter use in other ways, either by im- as a brake on rising drug costs in this seniors currently have retiree health proving the drug benefit or by devoting country. As a result, the Congressional coverage that provides more generous money to chronic care disease manage- Budget Office tells us the bill will ac- prescription drug coverage than this ment in traditional Medicare. celerate increases in the costs of pre- bill will provide. When the Senate The fact is that about 5 percent of scription drugs. passed its bill last June, the Congres- Medicare beneficiaries account for These are serious flaws. I wish many sional Budget Office estimated that roughly 50 percent of total Medicare of the provisions were far, far better. I one third of those with retiree drug spending. These beneficiaries often wish other provisions had never been coverage would lose that coverage be- have a number of conditions, but they included. But at the end of the day, we cause spending by an employer plan don’t get coordinated care because are faced with the question: Is this bill, does not count toward reaching the they see different doctors for different with all its flaws, better than doing catastrophic coverage threshold. In problems. This can result in adverse nothing? other words, if you have employer cov- drug interactions, the failure to treat For me, the answer is yes. For mil- erage, no drug spending by your em- underlying causes rather than symp- lions of seniors who do not have access ployer plan counts toward the $3600 you toms, and higher spending than nec- to any kind of prescription drug cov- have to spend out of your own pocket essary. Yet Medicare does nothing erage at any price, this will give them before the catastrophic coverage kicks today to coordinate care in the tradi- a new option to have a portion of their in. This provision creates a clear incen- tional Medicare program that serves drug costs covered. Millions of low in- tive for employers to cut back or drop nearly 90 percent of all beneficiaries. come seniors will be significantly bet- coverage so that a beneficiary will Spending a little money up front in ter off, with a new generous drug ben- more quickly reach the catastrophic this bill could produce significant cost efit that they do not now have. Rural coverage threshold and Medicare—not savings over time for the Medicare pro- health care facilities that are now on the employer—will pay the remaining gram. I hope we will be able to find the brink of closure because they are costs. money to expand the chronic care dem- underpaid for their services will get a When this bill passed the Senate, I onstrations in the bill. new life from the rural Medicare reim- said it was not a Cadillac drug plan. It The bill also expands health savings bursement provisions in the bill. wasn’t even a Chevy drug plan. Instead, accounts that are both bad tax policy Even with these significant victories, it was a bare bones plan. To stretch and bad health policy. These accounts if I thought this bill fundamentally that analogy, in conference, some of will allow both untaxed contributions threatened the existing Medicare pro- the bones got fractured, leaving the and untaxed withdrawals, a terrible gram, I could not support it. I know plan even weaker, and some of those precedent. If it is copied for other tax- that there are some who sincerely be- bones were replaced with untested arti- preferred savings accounts, this policy lieve that the privatization demonstra- ficial substitutes that may not work could have devastating consequences tions will fundamentally undermine the way they have been advertised. for the future of our tax base. More- the program. Although I share their The conferees did not just widen the over, like the privatization voucher view that these demonstrations are bad coverage gap and decrease the stability program, health savings accounts frag- policy—perhaps even terrible policy—I

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15907 do not believe that six demonstration excessive tax cuts pushed through over and out of tough conference negotia- projects affecting less than 5 percent of the last three years and allocated more tions with the House. The majority all Medicare beneficiaries will destroy of our resources to meeting our obliga- staff director of the Senate Finance Medicare. tion to provide a complete prescription Committee, Kolan Davis, also played Although this bill is far from perfect, drug benefit. Instead, the administra- an integral role in getting this con- I have concluded that we should pass tion’s misplaced priorities tied our ference report passed. it. On balance, this bill is a step in the hands. Our Nation’s senior citizens owe the right direction. We do not know when If this legislation were just limited whole Senate Finance Committee team we will have another, better bill that to the prescription drug benefit and the a debt of gratitude for making this can pass the Congress and be signed provider payment modifications, it Medicare legislation possible. I yield into law. In my view, it would not be would probably have my vote as being the floor. fair to those seniors—including tens of about as good as could be done under Mr. SARBANES. Mr. President, I thousand of North Dakota seniors— the current budget circumstances. But cannot support the Medicare prescrip- who have no access to drug coverage of I have very serious concerns about tion drug conference report before us. I any kind at any price to deny them other provisions tacked onto this bill share in the disappointment of the this first step in the uncertain hope that will take the Medicare Program many seniors, advocacy groups, pro- that we might be able to do better at and the health care benefits for 40 mil- viders, and colleagues in Congress who some point in the future. Rather, we lion Americans into uncharted and haz- have fought so long to provide Medi- must take the $400 billion opportunity ardous waters. This bill takes the first care beneficiaries with prescription that is on the table today and start step toward monumental changes in drug coverage. Drug coverage should be providing prescription drug coverage to the very foundation of how Medicare an integral part of any meaningful America’s seniors. Then we can and we operates, beginning a push toward the health care insurance and it is certain will go to work to improve the pre- breakup of the entire program. that if Medicare were created today, no scription drug benefit provided by this The strength of the Medicare system one would imagine excluding drug cov- bill. has been its broad coverage, its sim- erage. Unfortunately, the bill before us Mr. BIDEN. Mr. President, I voted plicity, and the open choices patients now has wasted an opportunity to give against this bill today because I would enjoy. This bill sets in motion a new Medicare beneficiaries the affordable never do anything that risks the future system that could tear down each of and comprehensive coverage they de- of Medicare, and I fear this bill takes these advantages. serve. The conference report provides the first steps toward the breakup of On balance I cannot support this leg- inadequate coverage while at the same the traditional Medicare Program. In islation. To me, the negative features time undermining Medicare, a program addition, this administration’s mis- have such damaging potential that that has served our seniors for over 37 placed priorities put enormous tax cuts they overwhelm the benefits. Had the years. first and left us little room to provide negotiations on this bill been done in Under this bill, Medicare bene- the comprehensive and fair drug ben- the open, with the full participation of ficiaries will pay an estimated pre- efit that seniors deserve. We should both parties, I think we could have mium of $35 per month although that have done this right and provided a crafted a better bill. I cannot vote for premium level is not guaranteed and it better drug benefit without jeopard- a bill that sets us on the path toward could be higher. After meeting a $250 izing the Medicare Program that has undermining the traditional Medicare annual deductible, 75 percent of a bene- given seniors health security for 38 Program that has worked so well for ficiary’s drug costs are covered up to years. decades. $2,250. A beneficiary receives no cov- My vote today was one of the more Mr. BREAUX. Mr. President, today erage for drug costs between $2,251 and difficult decisions I have faced in my we passed historic Medicare legisla- $3,600, though they are still required to Senate career. For starters, let me tion. Getting here was not easy. Behind continue paying monthly premiums note that not all of this bill is bad. the scenes, for months and even years, during this coverage gap. Once drug Some people will get help with their staff has worked incredibly hard to costs exceed $3,600, the drug plan would drug costs. We in Delaware are fortu- help produce this complex and com- cover 95 percent of a Medicare bene- nate to already benefit from unique prehensive bill. ficiary’s drug expenses. This drug ben- programs that have long helped low-in- In particular, I would like to thank efit is insufficient and much less than come seniors with their prescription Senator BAUCUS’ Finance Committee many retirees receive through existing drug costs, and this bill should build staff who put in countless hours and re- coverage. upon that foundation. It also offers mained dedicated to this legislation Those opposed to offering a more sub- some coverage to many middle class during long and difficult late-night and stantial prescription drug benefit seniors and disabled citizens. All in all, weekend sessions. Dr. Elizabeth Fowler claimed there are insufficient re- these aspects of this bill are not enor- lead the Finance health team. Dr. sources to pay for it. This argument mously different from those in the Sen- Fowler’s expertise, even-handedness, comes from the very people who have ate-passed bill that I voted for earlier and professionalism were critical in pushed through the Congress tax-cut this year. getting us to where we are today. Other programs that tilt heavily in favor of This bill also includes sorely needed professional staff, including Jon Blum, the wealthy. Over the last several payment adjustments for hospitals, Pat Bousliman, Andrea Cohen, Bill years, the administration has squan- doctors, and other health care pro- Dauster and Daniel Stein, all served dered a surplus and left the Nation fac- viders, which will ensure that Medicare the entire U.S. Senate and served us ing a deficit already approaching half a patients get quality care and continued well. The Minority Staff Director, Jeff trillion dollars. These valuable re- access to important medical services. Forbes, was also instrumental in seeing sources could have been used to provide On the downside, however, this legis- this legislation through until the end. our Nation’s seniors the real drug cov- lation still has a large gap in cov- We were able to achieve many Demo- erage they deserve. erage—forced by budget constraints— cratic priorities in this bill because of During consideration of the Senate in which the Government provides no their hard work and dedication. bill, we missed an opportunity to pro- subsidy for prescription drugs. I know I would also like to thank Senator vide Medicare beneficiaries with a sub- that many people will find this gap GRASSLEY’s staff on the Senate Fi- stantial, reliable and straightforward confusing, disappointing, and burden- nance Committee for the critical role prescription drug benefit. I cosponsored some. I am also very concerned that they played in passing this historic leg- and voted for an amendment offered by this bill does not sufficiently protect islation. Linda Fishman, Ted Totman, my colleague from Illinois, Senator millions of retirees who currently re- Colin Roskey, Jennifer Bell, Mark DURBIN. His alternative would have ceive good health care benefits from Hayes and Leah Kegler worked tire- provided a Medicare-delivered drug their former employers. lessly for many months to get a bill benefit that would have allowed the If we had done this the right way, we drafted, through the Senate Finance Medicare program to employ negoti- would have held back on some of the Committee, passed on the Senate floor ating strategies used by the Veterans

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15908 CONGRESSIONAL RECORD — SENATE November 25, 2003 Administration—VA—and other gov- ance companies left the Medicare pro- majority side, 12 minutes 40 second for ernment entities to bring down drug gram, abandoning more than 100,000 the minority. The source is the minor- prices. Senator DURBIN’s plan would seniors. ity leader’s time. have begun as soon as practicable, un- In addition, the bill includes a six- Mr. KENNEDY. So we have 12 min- like this legislation that leaves bene- year premium-support ‘‘demonstration utes. I yield 7 minutes to the Senator ficiaries waiting until 2006 for the drug project,’’ which would be established in from Connecticut. benefit to begin. six metropolitan areas. Medicare re- The PRESIDENT pro tempore. Yes, Under Senator DURBIN’s plan, seniors cipients in these areas would choose 11 minutes 41 second plus the 5 min- would have not paid a deductible, between traditional Medicare and pri- utes. would have paid 30 percent of costs, vate health plans; if the cost of the se- Mr. DODD. Mr. President, in the lim- and would have no coverage gap. Once lected form of coverage exceeded a ited time we have I would like to go drug costs reach $5,000, 90 percent of benchmark level set for the area, the back over and reiterate some points. In their costs would be covered. In addi- individual pays increased premiums to the very first instance, looking at the tion, employer contributions would cover the difference. This bill also con- Medicare portion of this bill, right off count toward out-of-pocket limits so tains $12 billion in subsidies for private the bat there are almost 9 million sen- there would be much less risk of em- plans. This funding gives private plans iors who are going to be disadvantaged ployers dropping retiree coverage. This an unfair advantage by enabling them by this legislation. Almost one-quarter was the proposal we should be acting to provide benefits that traditional of the 41 million seniors who benefit on today. Medicare does not cover. If private from Medicare are going to be dis- As I emphasized during debate on the plans were more efficient than Medi- advantaged by this bill. There are 2.7 conference report, this bill contains a care, they would not need this money million seniors, according to the Con- number of provisions that would under- to compete. This $12 billion should gressional Budget Office, who are going mine Medicare. For the first time in have been used to improve the drug to lose health benefits currently of- history, Medicare beneficiaries will pay benefit for all Medicare beneficiaries, fered by their former employer. In my more for their Part B premiums based not to underwrite the private plans. State, that is 40,000 people right off the on their income, thereby eroding the The inclusion of tax savings accounts bat. Those are CBO numbers; those are universal nature of the program. Medi- to pay out-of-pocket medical expenses not mine, not made up by the minor- care enjoys widespread support since further underscores how far the focus ity. everyone pays the same monthly pre- of the bill has strayed from providing Second, 6.4 million low-income sen- mium for the same service, thereby Medicare beneficiaries prescription iors will have to pay more for the drugs giving us a social insurance program in drug coverage. The bill makes health they need. In my State, that is 74,000 which everyone has an equal stake. savings accounts that are currently a people. The combined numbers are 9 The bill before us does not deal effec- limited demonstration project univer- million people, before anything else tively with the rising costs of drugs. sally available. These accounts could happens, who are going to be disadvan- This legislation does not allow the Fed- be used with high-deductible health taged. This is a fact. If you are on eral government to bring its weight to policies giving healthy, affluent work- Medicare and Medicaid you currently bear to lower drug costs. Medicare is ers a strong incentive to opt out of don’t have to have a copay when it not allowed to bargain on behalf of the comprehensive health insurance plans comes to prescription drugs. Now, millions of beneficiaries who would re- in favor of the new accounts. If large under this bill, you will. It may not ceive drug benefits. We know that numbers of these workers opt out of seem like a lot to people, but if you are drugs purchased through the VA pro- comprehensive plans, the pool of people making $13,470 or less than that, be- gram cost substantially less than those left in comprehensive plans would be lieve me, even a slight increase in purchased at retail value. Further- older and sicker, causing premiums for these drug costs can be very harmful. more, under this bill drug reimporta- comprehensive insurance to rise sig- That is just a fact. tion is completely at the discretion of nificantly. Let me say to my friend from Iowa, I I have long been a strong supporter the Administration. This is the same have respect for him and I admire his of providing older Americans and dis- Administration that has repeatedly ex- tenacity and his tremendous effort on abled individuals who rely on Medicare pressed its opposition against drug re- behalf of this bill. I say to my friend, an affordable, comprehensive, reliable importation even if safeguards can be $13,470 is not a lot of money for Ameri- and voluntary prescription drug ben- taken to ensure the safety of the re- cans, and if you make $13,471, you are efit. However, I want to ensure we do imported drugs. going to pay $420 in premiums, a $250 so in a way that does not worsen the This bill has the serious potential to deductible, and you have to pay 25 per- situation in which many seniors find cause a number of retirees to lose ex- cent of the cost of your prescription themselves as they face rapidly rising isting employer-sponsored prescription drugs. If you make $13,471, that is what drug costs. As we consider proposals to drug coverage. CBO estimates that 2.7 you are going to be burdened with. I expand our Nation’s major health enti- million retirees would lose existing appreciate the fact that the very low tlement programs, it is appropriate to coverage. This is an unacceptable con- income get some help, but I do not follow a guiding principle in the prac- sequence of legislation that is supposed know anyone in this country who tice of medicine—do no harm. Our sen- to make life better for seniors. This se- thinks $13,471 is a lot of money. But if iors deserve a drug benefit that is a rious deficiency has prompted many you hit that number, then you are real improvement, not a complex ex- going to pay those kinds of costs, and constituents to call my office to ex- periment that may cause more trouble that is going to be tremendously bur- press concern about this bill. than it’s worth. We must not enact a Congress began this debate focused law intended to help that might even- densome to many people. on the best way to provide Medicare Second, of course, if you look at tually harm millions. The American beneficiaries drug coverage and efforts chart 2 quickly here, you will see that people deserve better. to keep those drugs affordable. We now The PRESIDENT pro tempore. The this bill creates an unlevel playing have legislation before us in which the Senator from Massachusetts. field. We are told about free competi- drug benefit appears to be an after- Mr. KENNEDY. Mr. President, I ask tion and choice. But the fact is, under thought. I think a deeply troubling as- unanimous consent to use the 5 min- this bill private plans get a 9 percent pect of the bill is that it takes steps to- utes reserved for the leader. That has higher reimbursement than the Medi- ward privatizing Medicare. This legis- been cleared on both sides. care plan, and they get $12 billion. If lation relies on private plans to deliver The PRESIDENT pro tempore. With- you have two competitors trying to ap- the drug benefit; seniors could be out objection, it is so ordered. peal to a consumer and one side gets a forced to shift from plan-to-plan, year- Mr. KENNEDY. I yield 7 minutes to 9 percent increase in reimbursement to-year as they did when the Senator from Connecticut. How rates, plus $12 billion to help them get Medicare+Choice HMOs pulled out of much time remains on each side? into the market, I don’t know how you the Medicare program a few years ago. The PRESIDENT pro tempore. There call that a level playing field. That is In my own State of Maryland, insur- remain 11 minutes 41 seconds on the not level at all, in my view.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15909 If we examine the so-called premium MEDICARE REFORM: TRY AGAIN The PRESIDENT pro tempore. There support demonstration programs, sen- It’s not perfect, but it’s a start. That’s the are 7 minutes remaining. iors effected by this experiment are gist of the multimillion-dollar marketing Mr. KENNEDY. I yield 1 minute to going to be put in situations where campaign launched by AARP in support of the Senator from Illinois. they have less choice. If you end up the Medicare bill that passed the House by a The PRESIDENT pro tempore. The 220 to 215 vote early Saturday. The organiza- being pushed into a private plan—and Senator from Illinois. you can be under this bill—then your tion that purports to represent Americans who are at least 50 years old pledges to fix Mr. DURBIN. Mr. President, I thank ability to choose your own doctor is the bill’s flaws in future years. the Senator from Massachusetts. gone. Talk about choice, there is no Beware of such promises. Americans are America’s parents and grandparents more fundamental choice to most not looking for a perfect system. They yearn are the losers today, and special inter- Americans than the right to choose the for improvements in Medicare that they can est groups are the winners. America’s physician who will take care of you, comprehend. They know that Rome wasn’t senior citizens deserve better. This bill particularly for a senior. But under built in a day and prescription drug coverage won’t be guaranteed overnight. does nothing to reduce drug prices, and this legislation, if you are pushed into it starts our Nation down the road to- those plans, you lose the right to make But Medicare beneficiaries have waited for ward privatizing Medicare and endan- that choice, the opportunity to choose at least a decade for such coverage. They de- serve better than the scrambled egg that gering America’s lifeline program that your own doctor. Congress, AARP and other special interests has been a bright beacon for seniors I hardly consider that a step forward want to dish out in the guise of ‘‘reform.’’ or an improvement in the Medicare across our country for more than four Is it any wonder why shares of health care decades. The pharmaceutical compa- system. It is a major setback. businesses, particularly drug companies, With regard to prescription drug skyrocketed on Wall Street after the con- nies and the HMOs will give thanks for costs, this issue has been made very gressional conferees announced the details of this turkey, but America’s seniors will clear by the Senator from Florida. I the agreement? Lawmakers listened to lob- get stuffed. commend him for it. We are not saying byists far more attentively than they lis- I am going to vote no on this. I hope in this legislation that you can go out, tened to Medicare beneficiaries. my colleagues will join me. as the VA does, and consolidate your The centerpiece of this faux reform is pre- I yield the floor. scription drug coverage. Here is the math: A The PRESIDENT pro tempore. Who membership and then negotiate for beneficiary who has prescription drug bills prices. As the Senator from Florida totaling $2,250 a year would have to pay pre- yields time? pointed out, in the case of a couple miums of $420, a deductible of $250 and 25 per- Mr. KENNEDY. Mr. President, how that has been married for many years, cent of the cost of the medicine. That adds much time remains? the price of a drug for the husband, up to paying $1,252 out of pocket. The PRESIDENT pro tempore. The who is a veteran who served in Korea Once a beneficiary’s drug bills reach $2,250, Senator’s side has 7 minutes 1 second. and World War II, is going to be sub- the beneficiary would have to foot the entire The other side has 11 minutes 41 sec- stantially less than the price of the drug bill up to $3,600. Only after drug costs onds. same drug for his wife, who wasn’t a exceed this amount would the prescription plan pay 95 percent of the bills. Mr. KENNEDY. I withhold our time. veteran. How can you explain that to a This package contains little to cheer The PRESIDENT pro tempore. Who couple? Why can we not do with Medi- about. Some provisions deserve jeers. The el- yields time? care what we do with the VA? It is a derly who had hoped to buy less expensive The Senator from Iowa. logical choice. This bill prohibits that prescription drugs from Canada and Mexico Mr. GRASSLEY. Mr. President, I from happening. are out of luck. Those who have paid Medi- yield myself such time as I consume I don’t understand, for the life of me, care payroll taxes would have their benefits and I invite proponents of the legisla- why we are endorsing a proposal that linked—for the first time in Medicare’s his- tory—to their retirement income. For those tion to come over so I can yield some doesn’t allow the collective buying time to them. power of 41 million Americans to go who earn more than $80,000 a year, the pre- miums for Medicare Part B (doctors’ bills One of the issues that has been bad- out and lower the cost of prescription and other costs not covered by basic Medi- mouthed by the other side, the oppo- drugs. Yet this legislation would pro- care) would increase substantially. So much nents of this legislation, is that we hibit us from doing that. for relying on government to honor its have not done enough to help retiree When you look at those issues in this pledge to treat everyone equally under Part coverage; in other words, the problem proposal, again I say to my friends who B. they would suppose is that a lot of cor- have crafted the prescription drug ben- Why is AARP aiding and abetting GOP porations will be dumping their plans efit, there are certainly stated advan- lawmakers in selling such reform under false on the Government. tages of moving forward with some- pretenses? The organization is a big-business thing here. But as the lead editorial in operation, with revenue of $608 million last First of all, Congress can’t pass a law year from its insurance-related operations. my State newspaper pointed out the telling any corporation X, Y, or Z that ‘‘It’s almost unimaginable that—AARP— they can’t do that. If they decide it is other day, we can do a lot better with wouldn’t stand to gain’’ as a result of this this legislation. It says: in their interest, they are going to do legislation, said David Himmelstein of Har- it. The point is they have been doing it They deserve better than scrambled eggs vard Medical School. Alan Simpson, a former that Congress, AARP, and other special in- GOP senator, hit the bull’s-eye when he for years and years. terests want to dish out in the guise of ‘‘re- noted, ‘‘If there was a sublime definition of I had a chart up here 2 days ago that form.’’ conflict of interest, it would be AARP from showed how we have gone down from The centerpiece of this faux reform is pre- morning to night.’’ about 89 percent to 60 percent over the scription drug coverage. Here is the math: A AARP’s members should make themselves last 10 years of the corporations that beneficiary who has prescription drug bills heard as they did in 1988, when the organiza- had retiree health plans. What we are totaling $2,250 a year would have to pay pre- tion successfully lobbied for a flawed cata- doing is putting in place a program so miums of $420, a deductible of $250 and 25 per- strophic insurance benefit. The ensuing up- cent of the cost of medicine. roar by elderly people forced Congress to re- that if a corporation does that, there is For someone in that category, that peal the legislation. at least something for people who have adds up to $1,252 out of pocket in their On the subject of lobbying, why is AARP zilch when it comes to prescription bills. Once the beneficiary’s drugs still designated as a tax-exempt nonpartisan drugs. reach $2,250, then they will have to pay organization? It shouldn’t be. One of the things we have done to en- the entire bill up to $3,600. Again, I re- Mr. DODD. Mr. President, I urge our courage corporations not to do that is alize you can’t take care of everyone colleagues to reject this bill and come we have put $89 billion in this bill to here, but that is a tremendous dis- back in January and rework it. Forty- protect retiree health coverage. This advantage. one million Americans deserve a lot funding makes it more likely—not less I ask unanimous consent that the better than this bill is going to give likely—that employers will continue editorial from the Hartford Courant be them. their retiree benefits. We do that for printed in the RECORD. The PRESIDENT pro tempore. The two reasons. Obviously, it is better for There being no objection, the mate- Senator from Massachusetts. people to keep what they have. So rial was ordered to be printed in the Mr. KENNEDY. Mr. President, how there is an incentive for that. That will RECORD, as follows: much time do we have remaining? help keep a good drug benefit. Second,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15910 CONGRESSIONAL RECORD — SENATE November 25, 2003 if this is dumped on the Medicare Pro- This bill also creates new coverage mitment to this bill and their commit- gram, it is going to be much more cost- choices for beneficiaries in a newly re- ment to this country. ly than to keep it in the corporation vitalized Medicare Advantage program. For my part, I want to thank my own plan. We did it for those two reasons. And this is voluntary too—no one will current Finance Committee staff: Ted The opponents of this bill have been be forced to join an HMO. Totman, my Deputy Staff Director who saying retirees are going to be The bill lowers drug costs by speed- shepherded staff and members through dropped—that they will be left without ing the delivery of new generic drugs to this arduous process; Linda Fishman, coverage because of this bill. It is easy the marketplace, lowering costs for all my Health Policy Director who led the to make very clear that these retirees Americans, not just those on Medicare. committee’s consideration of this bill will not be left without drug coverage. The bipartisan bill includes long and who captained a team of talented That is, obviously, because one of the overdue improvements to Medicare’s analysts, including Colin Roskey, motivations behind this 3-year effort to complex regulations. whose daughter, Rose, was born while get prescription drugs in Medicare is to It also revitalizes the rural health negotiations played out in the Finance take care of or at least offer a plan to care safety net with the biggest pack- Committee in March; Mark Hayes, who people who don’t have anything. That age of rural payment improvements balanced multiple titles of this legisla- is about 35 percent of the people today. Congress has ever seen. tion while attending law school at It is better for those who do not have I urge my colleagues to put the inter- night; Jennifer Bell, whose dedication as good a plan as we are putting on the ests of our seniors first and give them to the needs of rural Americans played books. These retirees will still be bet- more choices and better benefits by an instrumental role in the success of ter off than they are today because voting for this historic bipartisan pre- our rural healthcare package; Leah today, when their employers drop their scription drug bill. Kegler, who managed many of the com- coverage, they are left with nothing— We cannot let this opportunity pass. plex low income and Medicaid policies no coverage at all. Mr. President, it has been a long and in the bill; Alicia Ziemiecki, who pro- Because of this bill, these retirees arduous process to get us to where we vided crucial assistance and support to will be getting drug coverage from are today. This is a process that didn’t all on this staff and to individual Com- Medicare, and their former employer start this year, or even last year, but mittee members throughout the year; will likely pay the monthly premium many years ago, on the foundation of and Mollie Zito, who joined the staff for that. what we then called the ‘‘tripartisan just this year and immediately made This is a bipartisan bill. This bill ad- bill.’’ Through many years of discus- important contributions to the overall dresses the problem we saw as a very sions and negotiations in the Finance effort. serious problem. According to the Con- Committee, we have taken the founda- Still other former members of my Fi- gressional Budget Office, we have ad- tion of that first bill and crafted com- nance Committee staff who are not dressed it in a very responsible way prehensive Medicare policy that will with me on the floor today have been and by reducing very much the possi- vastly improve the health and overall instrumental in the development of bility that these corporate retirees will well being of our nation’s seniors. this legislation. They include: Monica be dumped onto this plan. Our critics will say it is not enough Tencate, Tom Walsh, Rebecca This bipartisan bill protects retirees’ or that it lacks one provision or an- Reisinger, Hope Cooper, and Jeannie benefits. That has been our goal, and other. My response is that no other Fi- Haggerty, each of whom helped to we have accomplished it. The time has nance Committee membership and no shape the original Tripartisan pro- come strengthen and improve Medicare other Congress has been able to posal, whose imprint on this legislation with this historic bipartisan agree- produce a bill of this magnitude. We is unmistakable. Each of these individ- ment. It is the culmination of years of have worked tirelessly in the Finance uals contributed creatively, analyt- work by Republicans and Democrats Committee and with our colleagues in ically and energetically to the success- who have come together to get this the House to try to make this bill as ful completion of this legislation. done. perfect as possible. Beyond the health staff of the Fi- As the AARP has made clear when The reality is the Medicare program nance Committee, I want to recognize providing its strong endorsement, this itself is not perfect. other committee staff who played im- bill ‘‘helps millions of older Americans And I challenge those in opposition portant roles in resolving the many and their families,’’ and is ‘‘an impor- to this bill, to show me perfect legisla- interwoven, complex tax, health and tant milestone in the nation’s commit- tion. It is impossible because we’re trade policies within this legislation. ment to strengthen and expand health adding layers on a system that has Mark Prater and Diann Howland security for its citizens. . . .’’ This bill offers an affordable, uni- been in place for nearly 40 years. But helped navigate many of the health versal prescription drug benefit that everyone involved in this process has savings account and employer-related will cover about half the cost of pre- worked their hearts out to make this issues in the bill. Steven Schaefer and scriptions for the average senior. bill the best bill that it can be. It has Everett Eissenstadt along with Rita It offers generous coverage for 14 mil- been a sacrifice for all involved. Missed Lari of my Judiciary Committee staff lion lower income seniors. It expands dinners with family, missed weekends helped conferees reach consensus on coverage for lower income seniors far with the kids, little sleep, and intense difficult pricing, importation and ge- beyond what is offered today. They will emotions and intellectual energy—to neric drug policies. Steve Robinson as- have access to drug coverage with make this bill what it is. sisted in budgetary matters, and Dean lower or no premiums, no coverage cap, We’ve all given 150 percent to get this Zerbe and Emilia DiSanto provided and coverage of 85 percent to 95 percent bill done. And I will admit we did not good counsel on matters relating to of the cost of prescription drugs. reach ‘‘perfection’’, but we reached ex- Medicare program integrity. Jill And the new Medicare drug benefit is cellence. And America’s seniors will Kozeny, Jill Gerber, Beth Levine and voluntary—no one is forced to enroll in benefit from the commitment that was Dustin Vande Hoef provided cogent and this benefit. Seniors can stay in tradi- made by all of us involved. We did it concise outreach and explanation to tional Medicare just like they have for them. And it will make a positive the media. Leah Shimp, Cory Crowley today and have full access to prescrip- difference in their lives. To me, that is and Mary Gross kept in close touch tion drugs. the closest thing to perfection that we with Iowans on the legislation. And There is also a guaranteed govern- could achieve. Kolan Davis, my Chief Counsel on the ment fallback. It is a guarantee that Let me close by thanking my col- committee, provided important over- seniors will be able to get prescription leagues on the committee, in the Sen- sight and advice throughout the proc- drug coverage. ate, the House, CMS, HHS and the ess. This bill also invests $89 billion to White House. Dedicated individuals Beyond my own staff, I want to rec- protect retiree health coverage. This across the Congress and the Executive ognize Senator BAUCUS’s staff, with funding makes it more likely, not less Branch have worked tirelessly, night whom I have enjoyed an excellent likely, that employers will continue and day, to make this happen, and they working relationship over the last few their retiree benefits. deserve our thanks for their true com- years and with whom my own staff has

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15911 worked especially closely: Jeff Forbes, from 50 States. It is why we go back lar, make no mistake. We brought that Russ Sullivan, Judy Miller, Bill and forth and compromise. Yes, there out in this debate. Dauster, Liz Fowler, Jonathan Blum, is compromise in this bill. But let me My friend from Connecticut has Pat Bousliman, Andrea Cohen, Mike tell you in a few minutes why I am vot- talked about what will happen in his Mongan, Kate Kirchgraber and Dan ing yes. State, about the retirees. It happens in Stein. Senator BAUCUS’s team have I am voting yes because senior citi- Connecticut, it happens in Massachu- shown a sincere commitment to bal- zens do not have benefits for prescrip- setts, it is happening in every State of anced, fair bipartisan legislation and tion drugs. We must start. No one this country, the losing of retirees. The have been consummate professionals would say this is perfect. Who could ex- low-income elderly and disabled will throughout. pect a perfect bill that is this com- pay more. Thousands are going to fail The staff to my Senate colleagues on prehensive? This is the bill. Of course, the assets test. That is what is hap- the conference are also deserving our you don’t agree with every word in it. pening in the bill. thanks. Each contributed to a collegial But are we going to throw it away and In my early years of service in the working environment under enormous not even start? I hope not. Those who Senate I was privileged to participate time and political pressures: Pattie have been around here longer than I in the final stages of the long debate DeLoatche, Mark Carlson, and Bruce know that we will come back and we that culminated in the enactment of Artim with Senator HATCH; Stacey will adjust where adjustment is nec- Medicare. Hughes, Hazen Marshall and Bini essary, as we do in every major piece of Today, Medicare is so much a part of Zomer with Senator NICKLES; Don legislation that is far-reaching. the essential fabric of our society that Dempsey, Diane Major, Elizabeth I am voting for this bill because for it is hard to remember the harsh re- Maier and Lisa Wolski with Senator the first time everyone in our country ality the elderly faced before its enact- KYL; Dean Rosen, Elizabeth Scanlon, will have the chance to put aside ment. Too often, their lives were Craig Burton and Eric Ueland with money in a health savings account to blighted by the fear of a costly illness Senator FRIST; and Sarah Walter, build up for their copays and for their that would swallow the savings of a Michele Easton and Paige Jennings premiums on health care insurance. It lifetime and leave them impoverished. with Senator BREAUX. will be a tax-free buildup, and it will be Too often, their lack of access to af- Finally, all of us were extremely well tax free when you take it out for your fordable medical care made a mockery served by the hard work of our Con- health care needs. of the dignified and secure retirement gressional support agencies, including I am voting for this bill because it in- that should be the birthright of every the able work of our Senate Legislative creases the reimbursement for our peo- American. Private health insurance Counsels who toiled longer into the ple who give medical services. Our had failed the elderly, and Medicare night than most: Ruth Ernst, John rural hospitals are dying all over our was the response. Goetcheus and Jim Scott. Technical country and they will have a better re- Today, Medicare and Social Security and analytical support was provided by imbursement rate, something Senator are the most beloved and successful experts at the Congressional Research KENNEDY and I worked on very hard. government programs ever enacted. Service, including Richard Price, Jim This is not what I wanted in totality, They form the cornerstone of our na- Hahn, Chris Peterson, Hinda Chakind, but we are going to increase the teach- tion’s retirement system. But they are Jennifer O’Sullivan and Jennifer Bou- ing hospital reimbursement because also under assault from a heartless langer and many others who assisted in the teaching hospitals are the ones right-wing ideology that ignores the the completion of the Conference Re- that treat our poor. Our teaching hos- lessons of the past. port. At the Congressional Budget Of- pitals are where our up-and-coming This ideology views health care as fice, Doug Holtz-Eakin, Steve Lieber- physicians and nurses learn how to just another commodity. It sees Medi- man, Tom Bradley, Chris Topileski, treat patients. We are increasing the care as another potential profit center Phil Ellis, Rachel Schmidt, Jeannie De reimbursement. Senator KENNEDY and I for HMOs and insurance companies, not Sa, Eric Rollins, Shinobu Suzuki and worked very hard on that. as solemn commitment between gov- many others played crucial roles in de- It is not everything we wanted but ernment and its citizens. It says senior veloping cost estimates for policies we can come back and we will make it citizens should be subject to the sink large and small in this conference even better. There will be millions of or swim economics of the market- agreement. dollars going into our teaching hos- place—and if they sink, it is their fail- Each of these dedicated individuals is pitals and every State in our country ure, not our society’s. deserving of our thanks for their com- has a teaching hospital. The legislation we are debating today mitment to improving Medicare and The reimbursement to physicians is started as an important down payment making affordable access to prescrip- going to increase. How many physi- on the comprehensive prescription drug tion drugs a reality for America’s sen- cians have said, I am not taking Medi- coverage the elderly have long needed iors. care patients anymore; I cannot afford to complement the coverage of hospital If the other side says it is OK, I it. We want physicians to take our and physician care that Medicare pro- would like to yield 3 minutes to the Medicare patients. We also want a free- vides. That was the essence of the bi- Senator from Texas. dom to choose, which our Medicare pa- partisan bill that passed the Senate by The PRESIDING OFFICER (Mr. tients do not now have and which we an overwhelming majority. But that CHAMBLISS). The Senator from Texas is will have in the future. bipartisan bill is not the one we are de- recognized for 3 minutes. That is why I am voting for this bill. bating today. Mrs. HUTCHISON. Mr. President, I It is the harder vote. I urge my col- Instead, the legislation before the have been here for 10 years now. There leagues to step up to the plate and help Senate is a partisan document that em- are many in the Chamber who have us start. bodies this administration’s right-wing been here longer than I. But I know Mr. KENNEDY. How much time is on ideology and its desire to fuel the prof- one thing. Anytime we do something the other side? its of the wealthy and powerful who that is very major and very com- The PRESIDING OFFICER. The ma- support it. It cynically uses the plicated, it is easy to pick it apart. It jority has 3 minutes 16 seconds and the elderly’s need for prescription drugs as is easy in 30 seconds to say why you are minority has 6 minutes 3 seconds. a Trojan horse to reshape Medicare. not going to vote for something that Mr. KENNEDY. Mr. President, I yield The Republican majority has hijacked has so many facets. That is much more myself 5 minutes. this conference. politically feasible and it is much easi- Mr. President, my friend from Iowa Their program draws its essential in- er. It is harder to vote yes on some- talked about what is happening to the spiration from the President’s original thing that isn’t perfect. retiree programs. This is the most re- program to limit prescription drug ben- How can you ever expect a bill this cent study. Firms offering retiree efits to senior citizens who join an complicated to suit every person in health benefits dropped 40 percent in HMO. That plan was too crude and ob- this body perfectly? Of course, you the last 8 years. With this legislation, vious to withstand public scrutiny, so can’t. That is why we have 100 Senators it will go right down through the cel- the House of Representatives—and now

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15912 CONGRESSIONAL RECORD — SENATE November 25, 2003 this conference committee—has crafted citizens’ needs for prescription drugs. say this bill is going to be harmful to a more subtle but no less destructive It is an affirmation of their need for retirees when we are devoting $89 bil- approach. That is why this legislation Medicare and of their right to choose lion towards retaining retiree health had to be rammed through the House of the doctors and hospitals they trust. If coverage. Representatives in the dead of night, this legislation is rejected today, the We also are improving access to less with the support of only one party, and pending business before the Senate will expensive, generic drugs by improving only after the rules of the House were be the good, bipartisan prescription Hatch-Waxman. bent and broken. That is why this leg- drug program we passed in July. Let us The real reason our colleagues do not islation is being rammed through the make the vote today, a new start to do like this bill is that it is not an $800 Senate after only 3 days of debate, and the right thing rather than a conclu- billion bill. Our bill is $400 billion only after the Senate waived its own sion to do the wrong thing. which provides for some private sector rules in a very close and narrow vote. In its own way, this is as historic as competitive models. The reason our op- This bill is a cold, calculated pro- the debate that enacted Medicare. ponents do not like our legislation is gram to unravel Medicare, to privatize Medicare is the heart and soul of our because they do not believe in the pri- it, to voucherize it and to force senior society’s commitment to compassion vate sector. citizens into the unloving arms of and fairness. Today, the Senate will de- With regard to their argument that HMOs. It is the first step in the Admin- cide whether that commitment will be some of the big companies are going to istration’s campaign to reshape Amer- abandoned for other values—the values benefit from this legislation, of course ica to fit its right-wing ideology. And that are measured in the cold coins of they will benefit. The argument I find the White House has already an- profit and power rather than on the most amusing is the claim this bill will nounced that if they are successful in scales of humanity and justice. lead to increased drug company profits. The reason the bill is so desperately enacting this first step, the privatiza- The Senate should reject this mis- needed is because beneficiaries with tion of Social Security will be the next taken choice. It should stand with the low incomes are unable to afford their step. Today, big HMOs, insurance com- elderly and their families, not with prescriptions today. They have to panies, and pharmaceutical companies HMOs and insurance companies and choose between food, rent, and taking pharmaceutical industries. It should are the winners. Tomorrow, when So- their medicines. When this prescription reject this legislation. cial Security is privatized, it will be drug benefit goes into effect, low-in- The PRESIDING OFFICER. The Sen- the big banks and brokerage houses. come beneficiaries will finally be able ator from Iowa. And, in both cases, senior citizens and to get their prescriptions filled. This Mr. GRASSLEY. I yield the remain- their families will be the losers. legislation includes generous subsidies der of my time to the Senator from The bill uses a triple threat to un- so the low-income will be able to re- Utah. ravel Medicare. ceive their prescription drugs without It creates a new program called pre- The PRESIDING OFFICER. The Sen- worrying about how to pay for them. ator from Utah is recognized for 3 min- mium support. They call it a dem- Of course, this is going to lead to in- onstration, but it is really a vast social utes. creased drug sales. Surely this is no Mr. HATCH. I have been listening to experiment using millions of senior surprise to anyone. Any prescription the rather remarkable remarks from citizens as guinea pigs. It is designed to drug bill that works is going to lead to the other side, that this legislation has raise Medicare premiums, so that sen- increased drug sales. Where are the iors will be forced to join HMOs to get been rammed through the Congress, medicines supposed to come from, ex- affordable care. They call it competi- that it is partisan, when it is bipar- cept from the manufacturers of those tion, but it’s not competition, it’s coer- tisan. It has taken us 15 years to get medicines? Every single Medicare pre- cion. here. It could take another 15 years if scription drug bill introduced by these It raises Medicare payments to HMOs we do not support this bill right now. naysayers also would have increased so that Medicare can’t compete—a 25 We have been working on Medicare drug sales, and they know it. percent overpayment. They use the prescription drug legislation for 15 This bipartisan conference report has elderly’s own Medicare money to un- solid years. We have worked day in day the same basic drug benefit structure dermine the Medicare program they de- out, hours, weeks, and months in order that passed the Senate by a vote of 76 pend on. to get to this point. It is bipartisan. It to 21—the same one—and we are hear- It creates a $12 billion slush fund for was bipartisan in the House; when it ing these arguments here today? My private insurance plans to make Medi- passes today it will be bipartisan in the distinguished friend from Massachu- care even more competitive. Senate. setts voted for that bill, and the legis- The assault on Medicare is the worst The opponents of this bill keep say- lation before us has the same drug ben- aspect of this bill, but that’s not the ing that seniors will be worse off if this efit structure contained in S. 1 earlier end of the dishonor roll of this bill. Medicare bill becomes law. Give me a this year. Three million retirees with good cov- break. We are going to put $400 billion The Congressional Budget Office has erage through a former employer will out there for senior citizens so they concluded that the competitive ap- lose it as the result of this legislation. will have a Medicare drug benefit. We proach of this bipartisan drug benefit Six million of the poorest of the poor are giving seniors a choice in coverage. will be better at controlling drug costs elderly and disabled people will face Medicare beneficiaries may stay in tra- than other proposals. higher costs for the drugs they need ditional Medicare or they may choose To suggest that no one support a and less access to medical care the day to participate in one of the new Medi- Medicare drug benefit because it will this legislation is effective. care Advantage plans. lead to increased drug sales turns logic The government will be prohibited We are improving health care for on its head. from bargaining to obtain reasonable rural communities, something our If this were our basic principle, then drug prices for senior citizens. friends on the other side have ignored we should not have food stamps, be- The bill imposes a cruel and demean- for years. The fact is, it is time to real- cause that would lead to increased ing assets test that disqualifies mil- ize that we are going to have to pass profits of grocery stores and farmers. lions of the lowest income elderly from this legislation because it is the right What about housing subsidies? This the special help they need. thing to do and it will be a bipartisan might lead to profits by construction The bill provides $6 billion in tax sub- vote. companies, utility companies and in- sidies for health savings accounts, a We are devoting close to a quarter of creased sales of lumber, bricks and program that has nothing to do with this bill’s funding to retiree health cov- nails! So, this is just an absurd issue Medicare but everything to do with erage. CBO told us that 37 percent of and it is easy to see why. benefiting the healthy and wealthy retirees could have lost their coverage I am here to tell you that this bill while driving up insurance premiums if S. 1, the bill approved by the Senate will strengthen and improve the Medi- for other Americans. earlier this year, had become law. This care program. The spending in this bi- Rejecting this misbegotten legisla- bill reduces that number to under 20 partisan prescription drug bill goes to- tion is not a rejection of our senior percent. I don’t know how anyone can ward more improved health benefits for

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15913 America’s seniors and the disabled. know they may be coerced into an protection against out-of-pocket med- This is a good bill and I urge my col- HMO they disdain and out of a Medi- ical costs. leagues to support it. care plan they now count on. By expanding opportunities for pri- The PRESIDING OFFICER. The time Seniors already know they are about vate sector innovation, this Medicare has expired. to be subjected to a scheme for benefits bill offers the possibility of genuine re- The minority leader. they cannot even understand, much form that can dramatically improve Mr. DASCHLE. Mr. President, I will less afford. and strengthen quality of care for our use my leader time because I know we Taxpayers already know they are seniors and for those baby boomers are out of the allotted time. going to be giving huge handouts to in- who will be seniors in the not too dis- I’m told that when Medicare was surance companies, drug companies, tant future. passed 38 years ago, the House and Sen- and special interests, even though our At the same time, it preserves tradi- ate galleries were filled with senior country is faced with deficits unlike we tional Medicare. It strengthens and im- citizens who felt a great deal of hope, have ever known. proves traditional Medicare, and it pre- optimism and excitement about what Many Senators know this is lousy serves traditional Medicare for those that bill meant for them and for future legislation, that we may spend the rest who wish to choose it. Americans. of our careers repairing the flaws of It combines the best of the public and I don’t see any senior citizens in the this disappointing bill. the private sectors. It improves Medi- galleries today. And I think that is a We are going to be called upon to care for today’s seniors and helps, most real reflection on what this bill really vote today. importantly, lay the foundation for a means. My father admonished me many strong and modern program for seniors Why are there no senior citizens in years ago never to put my signature on today, but also tomorrow’s seniors. the galleries for this vote? Why isn’t something I was not proud of. Mr. The legislation provides all seniors there the hope and excitement and en- President, I am not proud of this legis- with access to more affordable pre- thusiasm and optimism that we saw so lation. I cannot put my signature on scription drugs and targets more sub- vividly 38 years ago? this bill. And I do not think anyone stantial assistance to lower income Mr. President, I think we all know else should, either. seniors and those with high cata- the reason: because there is no excite- I yield the floor. strophic drug costs. It also dramatically expands health ment. There is no enthusiasm. There is The PRESIDING OFFICER. Under coverage choices for seniors, and im- no optimism. There is no real con- the previous order, the majority leader proves coordinated care, improves dis- fidence that what we are doing today is recognized for 5 minutes. ease management, adds prevention to will help the vast majority of senior Mr. FRIST. Mr. President, today is Medicare, and adds catastrophic cov- citizens. They are not optimistic. They an extraordinary day for 40 million erage both under the traditional Medi- are watching with dismay at the vote seniors. For too long, our medical and care fee-for-service program and under we are about to take. health care advances have raced ahead, Medicare private health plans. I’ll tell you what rooms are filled— especially in the last 10 to 15 years, but While it does expand those choices not the galleries but the lobbies. The Medicare, as a health security program and those opportunities to choose, drug companies and the insurance com- for seniors, has stood still. choices that seniors simply do not have panies are out there in droves. The But today that will change. And it today, it also ensures that those sen- highly paid representatives of these will change today with overwhelming iors can keep exactly what they have. companies couldn’t be happier about support. On this chart are 358 organiza- They do not have to choose that new this bill. Their job is done for now. tions who support this change, such as drug plan. They do not have to choose I heard a report on the radio this the Seniors Coalition, the AARP, the that new type of health care plan that morning that the final vote was going American Medical Association, the we might have in the U.S. Senate or to be taken early today. Well, that re- American Hospital Association, the that Federal employees have. port was wrong, Mr. President. This is Family Physicians, the American Col- They don’t have that option today, not the final vote on prescription drugs lege of Cardiology, the National Alli- but they can choose that or they can for seniors or on Medicare. This is only ance for the Mentally Ill, the Rural keep exactly what they have today. All the beginning, not the end. We will see Hospital Association, the Sickle Cell of the options in this legislation, in- many, many more votes. Foundation, the Society of Thoracic cluding prescription drug coverage, are I predict that we will be back within Surgeons—and the list goes on and on. voluntary. Beyond increasing competi- the next 12 months. Seniors will de- It has been a long time coming, but tion, we will also take steps to control mand that we correct the many defi- it is finally here. With a bipartisan ma- health care costs both within the Medi- ciencies in this bill, and they will not jority, the U.S. Senate will enact pre- care Program and within the broader rest until we do. scription drug coverage for the first health care system. For the first time, This may be the end of this debate. time under Medicare. we will ask those seniors who can af- But I predict that a longer debate will Forty million seniors and individuals ford to do so to pay a higher portion of begin tomorrow as senior citizens start with disabilities will finally have the their Medicare costs. We will increase to fully understand the magnitude of prescription drug coverage they need and index the Medicare Part B deduct- the problems this legislation creates and the Medicare choices they deserve. ible for the first time in over a decade. for them. They will finally be able to take full We will make health savings accounts This bill is deeply flawed. There is a advantage of the tremendous medical available to all Americans so that they poll in this morning’s South Dakota advances that have been made in the have greater control over their own Rapid City Journal. The poll simply almost 40 years since Medicare was en- health care choices and so they can asked the question, Do you think the acted. plan and save, tax free, for future legislation the Senate is about to pass I do not think it can be overstated health care needs. is adequate? Mr. President, 64.5 percent that today marks a truly historic ad- We will make other responsible of those who responded said no, it is vance for America. changes such as speeding generic drugs not adequate. Those of us who have As a physician, I have written hun- to the marketplace so that seniors will been working on this legislation should dreds of prescriptions that I knew have access to these lower cost pre- not be surprised. would go unfilled because patients sim- scription drugs. Senior citizens with private coverage ply would not be able to afford them. Indeed, today is an extraordinary already know they could lose those With this bill, that will change. day. Today is a fateful day. Today is a benefits as early as tomorrow as the re- As a U.S. Senator, I have watched a red letter day for seniors. sult of this bill. Seniors on Medicaid decades-old Medicare program operate In conclusion, today’s historic action already know that they are going to without flexibility, without com- is only possible because of the hard have to pay more for drugs, and may prehensive care, without coordinated work of many dedicated Members of even be refused some of the drugs they care, without preventive care, without the Senate and the House of Represent- need. Seniors in South Dakota already disease management and catastrophic atives, and the administration.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15914 CONGRESSIONAL RECORD — SENATE November 25, 2003 I would like to take a moment to Health and Human Services. House and Sen- ministration Commissioner Mark McClellan. thank those whose commitment was ate staff, as well as House and Senate Legis- White House staff deserve recognition in- critical to this effort. First and fore- lative Counsels, the Congressional Budget cluding Matt Kirk, Keith Hennesy, Doug most, President Bush deserves credit Office and the Congressional Research Serv- Badger, Jim Capretta, David Hobbs, Ziad ice deserve our thanks. At this time, I would Ojakli, Amy Jensen and Mike Meece. Depart- for his bold leadership and commit- like take a moment to recognize the many ment of Health and Human Services staff de- ment to improving the health of Amer- individuals who have played a central role in serving credit include Jennifer Young, Rob ica’s seniors and individuals with dis- this legislation. Foreman, Amit Sachdev, Dan Troy, Fred abilities. We could not do our work without the as- Ansell, Elizabeth Dickinson, Michelle Mital, Tommy Thompson, the Secretary of sistance of our exceptional staffs who have Megan Hauck, Ann Marie-Lynch, Dan Dur- Health and Human Services, and Tom sacrificed time with loved ones in the pur- ham, Andrew Cosgrove, Jim Mathews, Mi- Scully, the Administrator of the Cen- suit of a Medicare prescription drug benefit. chael Reilly, Rob Stewart, Jim Hart, Susan I would like to thank them all. ters for Medicare and Medicaid Serv- Levy-Bogasky, Gerry Nicholson, Lynn On my staff, Dean Rosen, Elizabeth Scan- Nonnemaker, Peter Urbanowicz, Donald ices, spent hundreds of hours working lon, Craig Burton, Rohit Kumar, Eric Kosin, Robert Jaye, Leslie Norwalk, Don on this legislation. Ueland, Lee Rawls, Bob Stevenson, Nick Johnson, Susan McNally, Sharman Stephens, In the Senate, Finance Committee Smith, Amy Call, Bill Hoagland, Bill John McCoy, David Kreiss, Ira Burney—a Chairman CHARLES GRASSLEY and Wichterman, Allison Winnike, Jennifer Ro- technical guru we could not have done with- Ranking Member MAX BAUCUS put par- mans, Dr. Susan Goelzer, and Tina Thomas out, Richard Foster, Dennis Smith, Charlene tisanship aside and worked tirelessly deserve recognition. Brown,m Sally Burner, Nancy DeLew, Sue Senate Finance Committee Majority Staff, Rohan, Mary Ellen Stahlman, Gary Bailey, from beginning to end to deliver on our Linda Fishman, Mark Hayes, Leah Kegler, promise to America’s seniors. Senator Tom Hutchinson, Robert Donnelly, Tom Jennifer Bell, Colin Roskey, Ted Totman, Grisson, Liz Richter, Tom Gustafson, Marty JOHN BREAUX also deserves credit. He Mark Prater, Dianne Howland and Alicia Corry, Teresa Houser, Tim Trysla, Teresa and I have worked together for the bet- Ziemecki tirelessly worked on this legisla- Decaro, Greg Savord and Crystal Kuntz. ter part of 6 years on legislation to im- tion. On the Senate Finance Committee Mi- To all of those I have acknowledged here, prove Medicare. Today, we have finally nority Staff, Liz Fowler, Jonathan Blum, I extend my gratitude and the gratitude of reached that goal. Pat Bousilman, Andy Cohen, Dan Stein, and the entire United States Senate. You have All members of the conference com- Jeff Forbes made important contributions to helped to seize a historic moment, strength- this effort. en the Medicare program and improve the mittee showed a degree of dedication House Leadership staff, Darren Wilcox, lives of millions. Thank you. and resolve seldom seen in either Brett Shogren, Joe Trauger, Shalla Ross, Chamber, especially Senators ORRIN Andrew Shore, John DeStefano and Sam The PRESIDING OFFICER. Under HATCH, DON NICKLES and JON KYL. We Geduldig made the way for House passage of the previous order, the hour of 9:15 hav- would not have reached this point the Conference Report. House Ways and ing arrived, the Senate will proceed to without building on the strong founda- Means Majority staff members, John vote on passage of the conference re- tion laid by Members who worked so McManus, Madeline Smith, Joel White, Deb port to accompany H.R. 1. Williams, John Kelliher, and Shahira Knight Mr. FRIST. Mr. President, I ask for hard on this issue during the past sev- were invaluable to reaching a bipartisan eral years, especially Senators SNOWE, agreement. House Ways and Means staff, the yeas and nays. JEFFORDS, GREGG, HAGEL, ENSIGN and Patrick Morrisey, Kathleen Weldon, Chuck The PRESIDING OFFICER. Is there a WYDEN. Senators BUNNING, THOMAS, Clapton, Pat Ronan, Jeremy Allen, Bill sufficient second? SMITH, LOTT, and SANTORUM also made O’Brien, Eugenia Edwards, Dan Brouilliette There is a sufficient second. major contributions to this legislation and Jim Barnette also deserve recognition. The question is on agreeing to the through their work on the Senate Fi- Additionally, Senator Breaux’s staff, Sarah conference report. The clerk will call Walter, Michelle Easton and Paige Jennings; the roll. nance Committee. Senator Nickles’ staff, Stacey Hughes and Members of this body who voted Hazen Marshall; Senator Hatch’s staff, Pat- The legislative clerk called the roll. against final passage, but nonetheless tie DeLoatch, Bruce Artim, Patricia Knight, Mr. REID. I announce that the Sen- worked to improve this legislation at Chris Campbell and Dr. Mark Carlson; and ator from Massachusetts (Mr. KERRY) every step of the way and help pave the Senator Kyl’s staff, Don Dempsey, Diane and the Senator from Connecticut (Mr. way to final passage also deserve great Major, Lisa Wolski and Elizabeth Maier have LIEBERMAN) are necessarily absent. respect and appreciation. all been dedicated to this effort. As have I further announce that, if present The House Leadership, especially Health Education, Labor and Pensions Com- and voting, the Senator from Massa- mittee staff Vince Ventimiglia, Steve chusetts (Mr. KERRY) would vote Speaker DENNIS HASTERT and Leader Irizarry, Kim Monk and Senate Leadership TOM DELAY, also deserves special rec- staff Sarah Berk, Mike Solon, Kyle Sim- ‘‘nay.’’ ognition, as does the Chairman of the mons, Laura Pemberton, Amy Swonger, The PRESIDING OFFICER. Are there Conference, Chairman BILL THOMAS, Malloy McDaniel, Brian Lewis, and Scott any other Senators in the Chamber de- and the Chairman of the House Energy Raab. siring to vote? and Commerce Committee, Chairman The work of Members and staff would have The result was announced—yeas 54, BILLY TAUZIN. We would not be here been moot without the support of the House nays 44, as follows: and Senate Legislative Counsels, the Con- without them. [Rollcall Vote No. 459 Leg.] gressional Budget Office and the Congres- Finally, I want to thank my hard sional Research Service. Those deserving YEAS—54 working and dedicated staff: Dean recognition include Legislative Counsels, Ed- Alexander Craig Lugar Rosen, Elizabeth Scanlon, Rohit ward Grossman, John Goetchus, Pierre Allard Crapo McConnell Kumar, and Craig Burton. They have Poisson, James Scott, and Ruth Ernst; staff Allen DeWine Miller put in thousands of hours and poured of the Congressional Budget Office, Doug Baucus Dole Murkowski Holtz-Eakin, Steve Lieberman, Tom Bradley, Bennett Domenici Nelson (NE) over thousands of details. Bond Dorgan Roberts To everyone who has worked so hard Bob Sunshine, David Auerbach, James Breaux Enzi Santorum and given so much to this effort, I Baumgardner, Anna Cook, Sandra Brownback Feinstein Sessions Christensen, Philip Ellis, Carol Frost, Sam- Bunning Fitzgerald Shelby thank you. America thanks you. And, uel Kina, Lyle Nelson, Robert Nguyen, Ra- Burns Frist Smith most of all, America’s seniors thank chel Schmidt, Daniel Wilmoth, Shawn Campbell Grassley Snowe you. Bishop, Niall Brennan, Julia Christensen, Carper Hatch Specter I ask unanimous consent that a long Jeanne De Sa, Brianne Hutchinson, Margaret Chambliss Hutchison Stevens Cochran Inhofe Talent list of staff who made major contribu- Nowak, Eric Rollins, Shinobu Suzuki, Chris- Coleman Jeffords Thomas tions to this legislation be printed in topher Topoleski, and Robert Murphy; and Collins Kyl Voinovich the RECORD. Congressional Research Service staff, Rich- Conrad Landrieu Warner There being no objection, the mate- ard Price, Jennifer O’Sullivan, Sibyl Tilson, Cornyn Lincoln Wyden Hinda Chaikind, James Hahn, Paulette Mor- NAYS—44 rial was ordered to be printed in the gan, Chris Peterson and Susan Thaul. RECORD, as follows: Finally, we could not have done this with- Akaka Byrd Daschle Passage of a Medicare prescription drug out the leadership of President George W. Bayh Cantwell Dayton Biden Chafee Dodd benefit would not be possible without the Bush, Secretary Tommy Thompson, Centers Bingaman Clinton Durbin hard work and dedication of the White House for Medicare and Medicaid Services Adminis- Boxer Corzine Edwards staff and the staff at the Department of trator Tom Scully and Food and Drug Ad-

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15915 Ensign Kennedy Nickles job while private companies can appeal the relevant authorizing committees Feingold Kohl Pryor a decision that doesn’t go their way. and subcommittees. Graham (FL) Lautenberg Reed Graham (SC) Leahy Reid If the White House gets everything it When the Transportation, Treasury Gregg Levin Rockefeller wants, Federal workers could actually and General Government Appropria- Hagel Lott Sarbanes lose their jobs and see that work tions bill was brought to the House Harkin McCain Schumer shipped overseas. This administration Floor, Representative VAN HOLLEN of- Hollings Mikulski Stabenow Inouye Murray has sent enough good American jobs Sununu fered an amendment to address these Johnson Nelson (FL) overseas. It is outrageous that this flaws. The Van Hollen amendment was NOT VOTING—2 White House is now questioning our adopted on a bipartisan vote of 220–198. Kerry Lieberman agreements which ensure that the The Van Hollen amendment effectively work of the American Government is suspended the President’s new OMB The conference report was agreed to. done by workers here in America. circular. It required any contracting Mr. FRIST. Mr. President, I move to When it comes to allowing Federal out activities to be conducted accord- reconsider the vote. workers to compete to keep their jobs, ing to the older A–76 rules. Imme- Mr. BOND. I move to lay that motion the White House does not want a level diately, the White House threatened a on the table. playing field. That’s why they’re en- veto, so the Senate took a different ap- The motion to lay on the table was gaging in all these backroom deals, and proach. agreed to. that’s why the White House has seen to The PRESIDING OFFICER. The ma- During Senate debate, we adopted an it that the bipartisan Transportation/ amendment offered by Senator MIKUL- jority leader. Treasury conference report has never Mr. FRIST. Mr. President, this is an SKI and Senator COLLINS, the author- been filed. izing committee chairman. The Senate extraordinary day for seniors and in- What kind of Federal workers am I deed all Americans. The legislation also adopted an amendment offered by talking about here? I am talking about Senator THOMAS and Senator VOINO- that we just passed is consequential. It people who protect our borders and is far reaching for every American. It VICH, the authorizing subcommittee keep terrorists off U.S. soil; people who chairman. touches all of us in material ways, in purchase and maintain equipment for The substance of both amendments meaningful ways. It is epical in the our troops, both here and overseas; centered on putting some basic fairness sense that it modernizes Medicare to people who help us get the Social Secu- into the contracting out process—espe- provide 21st century care for our sen- rity checks, or price support payments, cially the process through which Fed- iors, with preventive care, with disease or unemployment insurance payments eral employees and private contractors management, and especially with pre- that we are eligible for; people who submit bids to retain Federal work and scription drugs. This bill is notable in make sure our food is safe; and many, how those bids are compared. In some its 54-to-44 vote in being a bipartisan many more. cases, the amendments reflected lan- bill. These are hard-working Americans guage that the President had already For the information of our col- that serve the taxpayer everyday and signed into law or that the Congress leagues, we will have no more rollcall deserve a fair shot at keeping their had already adopted on the Depart- votes. We currently remain in discus- jobs. But, as my colleagues know, for ment of Defense and Department of In- sion on the appropriations bills. The some time the Bush administration has terior appropriations bills. bill will not be filed until later today been trying to eliminate Federal jobs in the House of Representatives. I will through what it calls ‘‘competitive When the conference committee con- be in discussion with the Democratic sourcing.’’ This policy is highly con- vened to reconcile these two very dif- leadership as to what appropriate time troversial and with good reason. ferent bills, we all recognized that the we will be addressing those appropria- Just look at what happened to Fed- Van Hollen amendment could not be tions bills. There will be no more roll- eral employees of the Defense Finance included in the conference report be- call votes today. I wish everybody a Accounting Service in Ohio: Their cause of the President veto threat, so very happy, enjoyable, and especially work was contracted out to a company we put together a thoughtful and fair safe Thanksgiving. in Dallas, TX in January 2002; then the compromise. Our compromise was de- signed to provide a level playing-field f Pentagon’s inspector general found that the move saved no money and ac- between Government contractors and ADMINISTRATION EFFORTS TO tually cost the taxpayer an additional Federal employees. Our compromise GUT THE ‘‘COMPETITIVE $20 million; and now that work is being ensured fairness in five ways. SOURCING’’ COMPROMISE shipped to yet another contractor. First, the compromise ensured that Mrs. MURRAY. Mr. President, I rise So this entire policy of contracting the rules pertaining to all the Federal to alert my colleagues and the public out Federal work needs much more agencies would be the same. Second, to a secret effort by the White House to scrutiny and oversight. But instead of the compromise ensured that the ad- quash the rights and eliminate the jobs allowing a balanced set of rules to be ministration would have to dem- of thousands if not millions of Federal put in place to avoid the situation I onstrate that there are real cost sav- workers. just described, the Bush administration ings that would result from a privatiza- Right now, the White House is ac- is working to undermine it. tion effort before Federal employees tively working behind the scenes—in Let me review some of the recent lost their jobs to the private sector. closed-door meetings—to reverse a bi- events to show why this effort by the Third, the compromise ensured that partisan agreement that House and White House is so disturbing. On May Federal employees—and not just pri- Senate appropriators reached just 12 29 of this year, the Bush administra- vate contractors—would have the op- days ago. And I regret to say, the tion issued revisions to OMB’s Circular portunity to appeal a potentially President’s operatives appear to be suc- A–76. This is the circular that dictates wrongful decision to contract out ceeding. the terms and conditions through work. Fourth, the compromise ensured I rise to expose these backroom ef- which executive agencies can privatize that no jobs that are contracted out forts because I believe all taxpayers activities currently performed by Fed- would be transferred overseas. And should be made aware of the White eral employees. fifth, the compromise ensured that House’s efforts. These revisions were highly con- Government employees have the oppor- If the White House prevails in this troversial and were designed in many tunity to put together their best and scheme, Federal jobs could be con- ways to undermine the efforts of Fed- most efficient bid in order to compete tracted out even if it costs taxpayers eral employees to keep their jobs. The to keep their jobs. more money, Federal workers will have fairness of these revisions was ques- In other words, they do not just need to compete to keep their jobs with tioned, and not just by Democrats and to submit a bid based on the way they their hands tied behind their backs, the Federal employee unions. Several currently operate. They could propose and Federal workers will not be able to House and Senate Republicans identi- new efficiencies to make their bid com- appeal a decision to contract out their fied flaws, including the chairmen of petitive so that all taxpayers benefit.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15916 CONGRESSIONAL RECORD — SENATE November 25, 2003 As I said, this was a thoughtful, care- a phone to call Social Security Admin- The administration obviously does fully crafted compromise in which nei- istration and the phone being answered not want its decision to ever face a ther side got everything they wanted. by a Federal contractor in India—and truly fair appeals process. Mr. President, I ask unanimous con- it could actually cost taxpayers more. The third major change effectively sent that at the conclusion of my re- That’s absurd. eliminates the requirement that there marks, the bill language reflecting this On another provision, the adminis- be any meaningful cost savings to the bipartisan compromise be printed in tration is objecting to language allow- taxpayer before jobs are contracted the RECORD. ing Federal employees to put forward out. That is deplorable. The PRESIDING OFFICER. Without their best and most efficient bid in No wonder the Bush administration objection, it is so ordered. order to keep their jobs. Why? Because will only push for these changes in (See exhibit 1.) the administration doesn’t want Fed- back rooms. Mrs. MURRAY. Mr. President, I am eral employees to retain this work no I think this result is bad enough. placing this language in the RECORD matter what the benefit to the tax- However, I am now being told that the because I have been given reason to be- payer. administration has not given up on lieve that some very different language This is the first year that I have weakening our provision even further. will appear in the omnibus appropria- served as the senior Democrat on the As I stand here today, the conference agreement on the omnibus appropria- tions act, once it is actually filed. Appropriations Subcommittee over- A lot of credit belongs to Chairman seeing these government-wide procure- tions bill, including the Transpor- tation/Treasury section, has still not ISTOOK, Chairman STEVENS, and Chair- ment issues. Over the course of this been filed. The back-room dealing con- man SHELBY for allowing the conferees year, I have been increasingly appalled tinues and the basic principle of fair- on the Transportation/Treasury bill to by the disrespect and disdain that the ness and respect for our Federal em- work through the issues and develop Bush administration holds for the ployees continues to be under attack. our original compromise. thousands of Americans that come to work for our Government every day. I have to say that in my many years When I left the Capitol building late on the Appropriations Committee, I in the evening on Wednesday, Novem- As of today, I regret to inform the Senate that the Bush administration have never witnessed such a cynical ef- ber 12, all the conferees expected that fort to undermine a fair and equitable compromise to be incorporated into the appears to be making meaningful progress in its campaign to gut the bi- conference agreement. conference agreement on the Transpor- I want to emphasize that it is not the partisan compromise that was agreed tation/Treasury bill that was to be fault of Chairman ISTOOK, Chairman to as part of the Transportation/Treas- filed the next day. Each and every Sen- SHELBY, Chairman STEVENS, Chairman ator, Republican and Democrat, that ury conference. My subcommittee staff was present YOUNG, or any of the other members of participated in that conference agree- the Transportation/Treasury con- with language that was intended to be ment was content with the compromise ference. Those honorable gentlemen included in the omnibus appropriations and signed the conference report. What reached a deal at the conference room bill. That language guts our original has happened since then has been one table and, I believe, had every inten- compromise in three fundamental of the most astonishing and deplorable tion of standing by our compromise. ways. process that I have ever witnessed in This attack on Federal workers, on First, the rules included in the my 11 years in the Senate. fairness and on taxpayers has only one Transportation/Treasury bill will no When the Bush White House learned source—the administration of George longer apply to all Federal agencies. that the conferees decided to insist Bush. It is the White House that is They will only apply to the agencies upon a level playing field and some keeping our compromise from being en- funded in the Transportation/Treasury demonstration of taxpayer benefits for acted—or even filed—so that the Amer- bill. So these provisions will apply only ican public can read and understand it. Federal jobs to be contracted out, they to jobs being contracted out in the De- began a quiet but relentless campaign Next year, I hope that our Transpor- partment of Transportation, the Treas- tation/Treasury Subcommittee will to the gut the compromise. Despite the ury Department, the General Services fact that the conference committee ad- hold hearings with the appropriate ad- Administration, the Office of Personnel ministration officials so that they can journed well over a week and a half Management, and a few smaller, re- ago, the White House has seen to it explain to us why it is so important to lated agencies. them to deny Federal employees even that the bipartisan conference agree- None of these protections will apply ment has not been filed in either the the most basic rights when competing to the hundreds of thousands of em- to keep their jobs. I hope they will ex- House or Senate while they work to ployees in the other major Federal ci- emasculate the compromise. plain why it is important to the Bush vilian agencies, such as the State De- administration that different Federal The administration’s alternative lan- partment, Commerce Department, Ag- guage makes their true motives clear. workers be subjected to a hodgepodge riculture Department, Labor Depart- of differing rules depending on where One language change that the Bush ad- ment, and the Health and Human Serv- ministration has been promoting would they work. Perhaps they could also ex- ices Department. There will be a dis- plain why they think it is appropriate effectively eliminate the requirement tinctly different set of rules for jobs in that the administration demonstrate that only contractors—and not Federal the Department of the Interior and employees—have the right to appeal a any cost savings before throwing Fed- still different rules for jobs in the De- eral employees out onto the unemploy- ‘‘contracting out’’ decision. partment of Defense. This issue will not go away. I can ment line. Indeed, the loophole lan- This makes a sham of our Federal guarantee you that efforts will be made guage they are promoting would allow contracting-out policy, but the Bush on next year’s Transportation/Treasury them to award Federal work to private administration certainly doesn’t seem bill to rectify this situation and re- contractors even if the contractor’s to care. store a government-wide policy based costs are considerably higher than let- The first major change is in the scope on fairness and savings for the tax- ting Federal employees keep the work. of the agreement. Instead of applying payer. Could it be that we are seeing yet an- to all civilian agencies, it would just I only hope the Bush administration other attempt by the Bush/Cheney ad- apply to a few. The second major will have the decency to articulate its ministration to use Federally appro- change undermines the fairness of our position before the public—and on priated resources to reward their agreement. The language being slipped paper—rather than in the back rooms friends? into the omnibus bill would now deny in the dark of night. I am told that the administration has Federal employees the legal standing EXHIBIT 1 even voiced reservations about the lan- to appeal a wrongful decision to con- FINAL A–76 COMPROMISE LANGUAGE FOR CON- guage in our compromise prohibiting tract out their jobs. Under current reg- FERENCE REPORT ON THE TRANSPORTATION, Federal jobs from being shipped over- ulations, only contractors can appeal a TREASURY AND INDEPENDENT AGENCIES AP- seas. Where does it stop. decision that doesn’t go their way. PROPRIATIONS ACT This administration seems to see no Federal employees who are losing their SEC. 7 . (a) LIMITATION ON CONVERSION TO problem with senior citizens picking up jobs have no such right. CONTRACTOR PERFORMANCE.—None of the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15917 funds appropriated by this or any other Act Federal employees that are being studied (h) In this section, the term ‘‘executive shall be available to convert to contractor under competitions announced but not com- agency’’ has the meaning given such term in performance an activity or function of an ex- pleted; section 4 of the Office of Federal Procure- ecutive agency, on or after the date of enact- (5) the incremental cost directly attrib- ment Policy Act (41 U.S.C. 403). utable to conducting the competitions iden- ment of this Act, is performed by more than f ten federal employees unless the tified under paragraphs (1) and (2), including (1) the conversion is based on the result of costs attributable to paying outside consult- MORNING BUSINESS a public-private competition plan that in- ants and contractors; cludes a most efficient and cost effective or- (6) an estimate of the total anticipated Mr. FRIST. I ask unanimous consent ganization plan developed by such activity savings, or a quantifiable description of im- that there now be a period for morning or function; and provements in service or performance, de- business with Senators permitted to (2) the Competitive Sourcing Official deter- rived from completed competitions; speak for up to 10 minutes each. mines that, over all performance periods (7) actual savings, or a quantifiable de- The PRESIDING OFFICER. Without stated in the solicitation of offers for per- scription of improvements in service or per- objection, it is so ordered. formance of the activity or function, the formance, derived from the implementation cost of performance of the activity or func- of competitions completed after May 29, 2003; f tion by a contractor would be less costly to (8) the total projected number (expressed APPROPRIATIONS the executive agency by an amount that as a full-time employee equivalent number) equals or exceeds the lesser of— of the Federal employees that are to be cov- Mr. BOND. Mr. President, I commend (A) 10 percent of the most efficient organi- ered by the next report required under this our leader, Senator FRIST, as well as zation’s personnel-related costs for perform- section; and Senator GRASSLEY, Senator BAUCUS, ance of that activity or function by federal (9) a general description of how the com- and Senator BREAUX, for the tremen- employees; or petitive sourcing decisionmaking processes dous work in passing this very difficult (B) $10,000,000. of the executive agency are aligned with the bill. This is a tremendous milestone. It (b) EXCEPTIONS FOR THE DEPARTMENT OF strategic workforce plan of that executive DEFENSE.— agency. is great news for the seniors of our Na- (1) This section and subsections (a), (b), (d) The head of an executive agency may tion. and (c) of section 2461 of title 10, United not be required, under Office of Management I also ask and plead with the leader- States Code do not apply with respect to the and Budget Circular A–76 or any other pol- ship and the Members to realize that performance of a commercial or industrial icy, directive, or regulation, to automati- we have not yet finished work on the type function of the Department of Defense cally limit to 5 years or less the performance vitally important appropriations bills. that— period in a letter of obligation, or other It is extremely important we get these (A) is included on the procurement list es- agreement, issued to executive agency em- tablished pursuant to section 2 of the Javits- ployees, if such a letter or other agreement bills passed this year prior to the start Wagner-O’Day Act (41 U.S.C. 47); was issued as the result of a public-private of 2004, because there is so much in (B) is planned to be converted to perform- competition conduced in accordance with these bills that must be passed now. ance by a qualified nonprofit agency for the the circular. The Appropriations Committees, blind or by a qualified nonprofit agency for (e) Hereafter, the head of an executive under the leadership of Chairman STE- other severely handicapped individuals in ac- agency may expend funds appropriated or VENS and Senator BYRD, have worked cordance with that Act; or otherwise made available for any purpose to long and hard to produce these bills. (C) is planned to be converted to perform- the executive agency under this or any other Senator MIKULSKI and I fought to get ance by a qualified firm under at least 51 per- Act to monitor (in the administration of re- cent ownership by an Indian tribe, as defined sponsibilities under Office of Management an increase in veterans health of $2.9 in section 4(e) of the Indian Self-Determina- and Budget circular A–76 or any related pol- billion. We did that because of the tion and Education Assistance Act (25 U.S.C. icy, directive, or regulation) the perform- pressing need for our veterans. 450b(e)), or a Native Hawaiian Organization, ance of an activity or function of the execu- Our high-priority veterans are wait- as defined in section 8(a)(15) of the Small tive agency that has previously been sub- ing sometimes 6 months just to get an Business Act (15 U.S.C. 637(a)(15)). jected to a public-private competition under appointment. We need that money in (2) This section shall not apply to depot such circular. the VA system now, not sometime next contracts for depot maintenance as provided (f) For the purposes of subchapter V of year. We are also seeing more and more in sections 2469 and 2474 of title 10, United chapter 35 of title 31, United States Code— States Code. (1) the person designated to represent em- veterans coming back from the con- (3) Treatment of Conversion—The conver- ployees of the Federal Government in a pub- flicts in Afghanistan and Iraq with se- sion of any activity or function of the De- lic-private competition regarding the per- rious injuries, long-term injuries, that partment of Defense under the authority formance of an executive agency activity or are going to require veterans health provided by this section shall be credited to- function under Office of Management and care. We have to come to some agree- ward any competitive outsourcing goal, tar- Budget Circular A–76— ment to get these bills passed this get, or measurement that may be established (A) shall be treated as an interested party year, not sometime next year, not Jan- by statute, regulation, or policy and is on behalf of such employees; and deemed to be awarded under the authority (B) may submit a protest with respect to uary or February or March. We cannot of, and in compliance with, subsection (h) of such public-private competition on behalf of afford to miss a half a year. section 2304 of title 10, United States Code, such employees; and In addition to that, the distinguished for the competition or outsourcing of com- (2) the Comptroller General shall dispose of Senator from Kentucky and the Sen- mercial activities. such a protest in accordance with the poli- ator from Connecticut put in the over (c) Not later than 120 days following the cies and procedures applicable to protests de- $1 billion needed for the Help America enactment of this Act and not later than De- scribed in section 3551(1) of such title under Vote Act. cember 31 of each year thereafter, the head the procurement protests system provided of each executive agency shall submit to under such subchapter. Mr. MCCONNELL. Will the Senator Congress (instead of the report required by (3) The person designated to represent em- yield for a question? section 642) a report on the competitive ployees of the Federal Government shall be Mr. BOND. I would be happy to yield. sourcing activities on the list required under either: Mr. MCCONNELL. I ask my friend the Federal Activities Inventory Reform Act (A) the agency tender official who sub- from Missouri, is it not true that if we of 1998 (Public Law 105–270; 31 U.S.C. 501 mitted the agency competition proposal; or do not get this omnibus bill funded, the note) that were performed for such executive (B) a single individual appointed by a ma- election reform money, which guaran- jority of directly affected employees; or agency during the previous fiscal year by tees that next year it will be easier to Federal Government sources. The report (C) in the event of a dispute between the shall include— two individuals cited in (A) or (B) above, ei- vote and harder to cheat, as the Sen- (1) the total number of competitions com- ther of said individuals, to be determined by ator from Missouri has said on so many pleted; the U.S. General Accounting Office. occasions, that that money simply will (2) the total number of the competitions (g) An activity or function of an executive not be there in time to begin this announced, together with a list of the activi- agency that is converted to contractor per- lengthy process of getting the money ties covered by such competitions; formance under Office of Management and out to States and getting the reforms (3) the total number (expressed as a full- Budget Circular A–76 may not be performed made in time for the 2004 election? time employee equivalent number) of the by the contractor at a location outside the Federal employees studied under completed United States except to the extent that such Mr. BOND. The distinguished Sen- competitions; activity or function was previously been per- ator from Kentucky makes a very valid (4) the total number (expressed as a full- formed by Federal Government employees point. The time is now to get that time employee equivalent number) of the outside the United States. money into the voting system in every

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15918 CONGRESSIONAL RECORD — SENATE November 25, 2003 State. We cannot delay any longer. for my subcommittee. One of them in- agree. So the language remained in the Every week, every month we delay, volves the issue of overtime pay. The bill. But I believe the scientific com- means less likelihood that we will Senate passed, by a decisive majority, munity in America is going to march make the changes that were promised. 54 to 45, a prohibition on any expendi- on the Congress to stop the meddling This body overwhelmingly adopted tures to implement the regulation on with scientific research with vague the Help America Vote Act which, as overtime which would cut out overtime prohibitions which can only lead to Senator MCCONNELL has said, will for many Americans who really need grave difficulties and which impede make it easier to vote and tougher to that compensation, especially in light medical science. cheat. This is a commitment we made of the fragility of the economy at the One concluding thought. I thank to the people of America that we would present time. those on the other side of the aisle provide these reforms and we would In the House of Representatives, the who, as I understand it, have removed fund them. If this money has to wait regulations stood by three votes. Then the holds on all of the pending nomi- until the approval of these appropria- on a later vote in the House of Rep- nees. Just a word in support of Penn- tions bills sometime in February and resentatives, by 18 votes, the House di- sylvania Attorney General Michael getting the money out in March or rected the conferees to strike the regu- Fisher, who is up for confirmation for April, we are not going to get it done lation, not to fund it until September the Third Circuit. I have known Attor- in time. They are not going to be able 30, 2004. ney General Fisher for the better part to implement these vitally important When the omnibus was in the final of three decades. He has an extraor- reforms in election. stages of preparation last week, it was dinary record in the Pennsylvania Leg- I know many people want to get their apparent to me that any course of ac- islature and as the State attorney gen- voting machines improved. Frankly, I tion would leave the regulation in ef- eral and as candidate for Governor. want to see the end of dogs and dead fect. If Senator HARKIN and I had in- I ask unanimous consent that a full people voting. They are still trying sisted on keeping in the Senate amend- statement of his re´sume´ be printed in that in St. Louis. There was a nice 180- ment striking funding for the regula- the RECORD at the conclusion of these count indictment issued by the pros- tion, then our appropriations bill was remarks. ecuting attorney in the city of St. scheduled to be taken out of the omni- There being no objection, the mate- Louis, the circuit attorney. That prob- bus and our three Departments, Health, rial was ordered to be printed in the lem needs to stop and the only way we Education, and Labor, would be funded RECORD, as follows: can get it to stop is by funding the on a continuing resolution and the reg- ATTORNEY GENERAL MIKE FISHER Help America Vote Act. ulation would remain in effect. If we Mike Fisher, the Attorney General of There are many other good argu- agreed to remove the amendment Pennsylvania since 1997, was nominated on ments, but I urge the leaders to come striking the funding, then of course the May 1, 2003, by President George W. Bush to together to work on this matter. If we regulation would go into effect. So ei- serve on the Untied States Court of Appeals ther way, the regulation was going to for the Third Circuit, which covers Delaware, could do it by unanimous consent, that New Jersey, Pennsylvania and the Virgin Is- would be the best, but if we have to go into effect. By having our bill in- lands. The nomination is subject to a major- come back the second week in Decem- cluded in the omnibus, we had $4 bil- ity confirmation by the United States Sen- ber, we have an obligation to the peo- lion more for vital programs in NIH, ate. ple of Missouri to do our job. I plead for Head Start, for education, Leave No Currently serving his second four-year with the leadership to come to some Child Behind, and workers’ safety. So term, Attorney General Fisher is only the agreement so we can finish these bills. in effect we did not have a Hobson’s third elected Attorney General in State his- I yield the floor. choice, we had no choice at all. Either tory. His top priorities have included pro- way we went, the regulation would re- tecting Pennsylvanians from crime, reducing f the use of illegal drugs, stopping the tobacco main in effect. If we agreed to take it PASSAGE OF H.R. 1 industry from marketing to children, and ex- out so we would be included in the om- panding consumer protection services. Mr. SPECTER. Mr. President, I rise nibus, then the prohibition against Attorney General Fisher personally argued to comment briefly about the legisla- funding would fall. If we were taken major cases in State and Federal appellate tion which we have just passed and also out and made a part of the continuing courts. In March 1998, he sucessfully argued about the omnibus appropriations bill. resolution, then the regulation would before the United States Supreme Court a I compliment all of those involved in stay in effect. precedent-setting case ensuring that paroled this Medicare bill. It is a long time in It is my hope, when this matter goes criminals meet the conditions of their re- lease. coming. It will provide much needed forward, the vote in the Senate will re- Attorney General Fisher has worked to im- relief to America’s seniors on the high main and the provision remains in the prove the quality of justice in Pennsylvania. cost of prescription drugs. It will elimi- Senate bill to strike the funding for He is an active member of the Pennsylvania nate the cuts in Medicare which were the regulation. So that battle is not Bar Association (PBA), serving in its House supposed to take effect in 2004 and 2005. over. We intend to continue to fight it of Delegates and on various committees. It will, in fact, give the doctors an in- right down to the wire, until the omni- Working with the PBA, he has co-sponsored crease of 1.5 percent. bus appropriations bill is adopted. an innovative violence prevention program One other point, and I will be brief. I in Pennsylvania elementary schools called There was also a mechanism for Project PEACE, which helps young people changing the wage index classification know my other colleagues are waiting learn to resolve conflicts without violence. for metropolitan statistical areas, the to speak. One other point, and that in- Fisher also encourages PBA participation by MSAs, so that the Secretary will have volves the House language to prohibit the attorneys in his office. discretion to make that correction. funding for patents for human tissue. Before his election as Attorney General, Mike Fisher served for 22 years in the Penn- f That provision in the appropriations bill for the Departments of Commerce, sylvania General Assembly, serving six years OMNIBUS APPROPRIATIONS Justice, and State is going to cause in the State House and 16 years as a member Mr. SPECTER. Mr. President, with enormous uncertainty. It is very ex- of the State Senate. He was a member of the House and Senate Judiciary Committees, the respect to the omnibus appropriations pensive, and a very long process, to Chair of the Senate Environmental Re- bill, the Senator from Missouri is cor- have a patent. There will be many peo- sources and Energy Committee and the Ma- rect that we ought to complete it. He ple, who will be interested in pro- jority Whip of the Senate. During his legisla- has pointed out the importance of hav- ceeding with patents, who will not un- tive career, he was a leader in criminal and ing the increases for veterans. I would derstand the ramifications of the lan- civil justice reform and an architect of many add to that the importance of increases guage on human tissue. major environmental laws. in the appropriations bill for Labor, I am against human cloning. I made Attorney General Fisher began his legal Health and Human Services, and Edu- that point emphatically clear in our career in his hometown of Pittsburgh fol- lowing his graduation from Georgetown Uni- cation, where I chair the sub- conference, where I offered an amend- versity in 1966 and Georgetown University committee. ment, a motion to strike the House Law Center in 1969. As an Assistant District I would like to comment briefly on language, which passed on the Senate Attorney for Allegheny County, he handled two points in the appropriations bill side 18 to 8, but the House refused to nearly 1,000 cases, including 25 homicides. He

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15919 continued to practice law during his career tiple chronic conditions. Medicare Ad- that this provision has on the quality in the General Assembly and was a share- vantage health plans would be required and availability of cancer care for holder or partner in various firms, including to offer at least the standard drug ben- beneficiaries and oncologists’ ability to Houston Harbaugh, where he practiced from efit, available through traditional fee- provide that care. Further, the pre- 1984 to 1997. Fisher’s law practice included civil ligation, commercial law, estate plan- for-service Medicare. mium support demonstration project ning and real estate. We already know that there are for Medicare Part B premiums poses a Mike Fisher was Pennsylvania’s Repub- many criticisms directed to this bill at concern. Some metropolitan areas may lican candidate for Governor in 2002. During various levels. Many would like to see face up to a five percent higher pre- a hard-fought campaign, he raised key issues the prescription drug program cover all mium for fee-for-service care than and helped shape current public debate on of the costs without deductibles and neighboring areas. While these provi- matters such as Pennsylvania’s growing without co-pays. There has been allo- sions remain troublesome, we cannot medical malpractice insurance crisis, the cated in our budget plan $400 billion for let the perfect become the enemy of need to improve public education and the ne- prescription drug coverage. That is, ob- cessity of property tax reform. the good with this piece of legislation. Attorney General Fisher and his wife, viously, a very substantial sum of The Medicare Prescription Drug leg- Carol, an education consultant, have two money. There are a variety of formulas islation has been worked on for many children, Michelle, 27 an attorney in Pitts- which could be worked out to utilize years. I believe this bill will provide a burgh, and Brett, 24, an information tech- this funding. The current plan, depend- significant improvement to the vital nology sales consultant in the Washington, ing upon levels of income has several health care seniors so urgently need. I D.C. area. levels of coverage from a deductible to congratulate the members of the con- Mr. SPECTER. Mr. President, since almost full coverage under a ‘‘cata- ference committee including Majority Medicare was established in 1965, peo- strophic’’ illness. One area of concern Leader FRIST, Senator GRASSLEY, ple are living longer and living better. is the so-called ‘‘donut hole’’ which re- Chairman of the Finance Committee, Today Medicare covers more than 40 quires a recipient to pay the entire and the Ranking Member, Senator million Americans, including 35 mil- cost of rug coverage. BAUCUS, for the outstanding work lion over the age of 65 and nearly 6 mil- As I have reviewed these projections which they have done on an extraor- lion younger adults with permanent and analyses, it is hard to say where dinarily complex bill. disabilities. the line ought to be drawn. It is a value The PRESIDING OFFICER (Mr. Congress now has the opportunity to judgement as to what deductibles and CHAFEE). The Senator from Nevada. modernize this important Federal enti- what the co-pays ought to be and for f ty to create a 21st century Medicare whom. Though I am seriously troubled Program that offers comprehensive by the so-called donut hole, it is cal- OMNIBUS APPROPRIATIONS coverage for pharmaceutical drugs and culated to encourage people to take the Mr. REID. Mr. President, people have improves the Medicare delivery sys- medical care they really need, and be to understand the process here. We are tem. affordable for those with lower levels being criticized for not agreeing to this The Medicare Prescription Drug and of income. Then, when the costs move omnibus bill. Modernization Act would make avail- into the ‘‘catastrophic’’ illness range, I first of all want the RECORD to be able a voluntary Medicare prescription the plan would pay for nearly all of the spread with the fact that the chairman drug plan for all seniors. If enacted, medical costs. of the Appropriations Committee, Sen- Medicare beneficiaries would have ac- I am pleased that this bill contains a ator STEVENS, has worked tirelessly to cess to a discount card for prescription number of improvements for the pro- get this done. He has worked, not a drug purchases starting in 2004. Pro- viders of health care to Medicare bene- matter of hours or days but weeks. I jected savings from cards for con- ficiaries. Physicians who are scheduled have spoken to him on this legislation sumers would range between 10 to 25 to receive cuts in 2004 and 2005 will re- at least 50 times. So my remarks are percent. A $600 subsidy would be ap- ceive a 1.5 percent increase over that not in any way to criticize the distin- plied to the card, offering additional time. Moreover, rural health care pro- guished President pro tempore of the assistance for low-income beneficiaries viders will receive much needed in- Senate. defined as 160 percent or below the Fed- creases in Medicare reimbursement Here it is, November 25, and there eral poverty level. Effective January 1, through raises to disproportionate have been no final papers filed. What 2006, a new optional Medicare prescrip- share hospitals and standardized does that mean? There is no final draft tion drug benefit would be established amounts, and a decrease in the labor of the legislation. Yesterday was the under Medicare Part D. share in the Medicare reimbursement first day that some selected staff peo- This bill has the potential to make a formula. Hospitals across Pennsylvania ple could look at the proposed bill. But dramatic difference for millions of will benefit from upgrades to the hos- even then there were open items. It Americans living with lower incomes pital market basket update and in- certainly does not speak well of the and chronic health care needs. Low-in- creases in the Indirect Medical Edu- legislative branch of Government, as to come Medicare beneficiaries, who make cation. Furthermore, the bill will pro- what is happening. up 44 percent of all Medicare bene- vide $900 million for hospitals in metro- What do I mean by that? The Con- ficiaries, would be provided with pre- politan statistical areas with high gress has agreed on these appropria- scription drug coverage with minimal labor costs due to their close proximity tions bills. The Congress, the House out-of-pocket costs. In Pennsylvania, to urban areas that provide a dis- and the Senate, in conference have this benefit would be further enhanced proportionately high wage. These hos- agreed on these bills. What has been by including the Prescription Assist- pitals may apply for wage index reclas- the problem is the interference—and I ance Contract for the Elderly (PACE) sification for three years starting in say that word purposely—by the execu- program which will work in coordina- 2004. tive branch of Government. tion with Medicare to provide in- I would note that I do have concerns What are some of the outstanding creased cost savings for low-income with this legislation with regard to items in this bill that are causing prob- beneficiaries. oncological Medicare reimbursement lems? We have over here 15 holds on For medical services, Medicare bene- and the premium support demonstra- this bill if it ever came to me. Regard- ficiaries will have the freedom to re- tion project for Medicare Part B cov- ing the Federal Communications Com- main in traditional fee-for-service erage. Proposed reductions in the aver- mission, the House and the Senate Medicare, or enroll in a Health Mainte- age wholesale price for oncological have agreed. We had two votes in both nance Organization (HMO) or a Pre- pharmaceuticals may have a grave ef- bodies, overwhelming votes that deter- ferred Provider Organization (PPO), fect on oncologists’ ability to provide mined what would happen. But the also called Medicare Advantage. These cancer care to Medicare Beneficiaries. White House is not happy with that. programs offer beneficiaries a wide Every Medicare beneficiary suffering They want that changed. They don’t choice of health care providers, while from cancer should have access to want to change it in the normal proc- also coordinating health care effec- oncologists that they desperately need. ess, by having hearings, et cetera; they tively, especially for those with mul- I will pay close attention to the effects want to do it in the conference—even

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15920 CONGRESSIONAL RECORD — SENATE November 25, 2003 though there have been two over- omnibus bill, and the reason is quite Remember, it is November 25 and whelming votes in both the House and clear. My friends have come to me and they still haven’t filed the papers. We the Senate. indicated that they agreed to do this in are asking for unanimous consent to Another deals with outsourcing. the Energy bill, or in this bill we just pass this. A legislator would have to There were overwhelming votes in the passed, because they were told they have rocks in their head to agree to House and Senate dealing with out- would get things in the omnibus. I un- something they haven’t yet read. sourcing, privatizing. The White House derstand the legislative process. I have The PRESIDING OFFICER. The Sen- doesn’t like that, so they want it no qualms about arrangements being ator from New Mexico. changed. made. I believe legislation is the art of f There were two overwhelming votes compromise. That is how we work with dealing with overtime pay. The White different legislation. There is nothing THE ENERGY BILL House didn’t like the votes of the legis- wrong with that. It is not illegal or im- Mr. DOMENICI. Mr. President, I rise lative branch of Government, so they, moral doing that. But you have to un- to make a few observations for the by fiat, want to change that. derstand that it will be a difficult time. Senate and for our people regarding the Then we have other issues that are I favor the omnibus. I want to get it Energy bill that is still pending as we troublesome in this bill, not nec- done. I have worked very hard on the leave. essarily to this Senator but to other omnibus. The Senator from New Mex- First, I hope and pray that during the Senators. We have situations dealing ico and I added money in our energy ensuing months without an Energy bill with when the ATF destroys records of and water bill. There was no problem we don’t have high spikes in natural the instant check on guns. The legisla- at all. We have worked with Senator gas prices and the people of our coun- tion called for 90 days. It has been BYRD and Senator STEVENS to make try asking: What have we done about shortened to 24 hours. sure we were part of the deal. We didn’t it? Our answer is nothing. I hope that There is a situation that has come up want to interfere with getting a bill. doesn’t happen. But I think there is a that has overtones of the abortion de- We were told there were certain things chance it will happen. bate. This is dealing with cloning, that needed to come out of our bill and I hope there isn’t another blackout. I human cloning. We thought it was so which could only come from our part of am not sure there will be but there simple in the committee that we—peo- the omnibus. We agreed to do that. could be. If there is, the American peo- But I repeat: If we only had appro- ple don’t want to do cloning of human ple are going to ask why and we are priations matters in this bill, this going to tell them because we did noth- beings, but there is a protracted dis- thing would whip out of here in a sec- ing. There was something that was in pute as to how to write that. ond because the chairmen and the that bill that would have solved the This bill may pass when we come ranking members of the appropriations back in January. But we can come committees are Members of the Senate problem, according to the experts, and back next week, the week after—it is who are appreciated and respected. the answer will be, if you have a black- not going to happen. It is not going to They know we wouldn’t jam things out, we did nothing. happen, as important as this legisla- into those bills. I speak for all of the For all of those who have projects tion is. And no one knows the impor- other 12 appropriations subcommittees that will be finished in wind, energy, tance of it more than the senior Sen- on the Democratic side. solar energy, and renewables, they will ator from the State of Connecticut, Mr. But we don’t have that situation. We be looking around and asking: Where is DODD, who has fought for this legisla- have a situation that these two legisla- my next project? The answer will be tion, making sure that we have fair tive bodies agreed to overwhelmingly. there is no next project. The question votes across the country, that we have But the White House won’t leave them will be: Why? And the answer will be votes using the same pieces of equip- alone. That is why the House hasn’t because we haven’t provided laws that ment, basically, so we do not have the given us a bill because the White House will give to those kinds of projects the problems we had in the last Presi- won’t leave them alone. They keep tax relief to which they are entitled dential election. wanting other things stuffed in it. and which they have been receiving We understand the importance of this When we come back in January, I that will keep wind energy going and legislation, even though it is not the hope this is the first bill we take up. I solar energy going and geothermal en- right way to do things. We would rath- hope the second bill we take up is the ergy going. er do appropriations bills. We accept highway bill. I hope we get to this bill. When these projects stop and thou- the omnibus strategy. But here it is, It is too bad we are not going to do sands of people who are working in the November 25, 1 more day from the eve something for the months of December industry have no jobs, when there are of Thanksgiving and we don’t have a and January. It would be better for the no new projects, the question will be final draft of what they want us to ap- American people, and it would be bet- asked: What happened? The answer will prove, in addition to all of the things ter for my State. But we can’t agree to be simple. We didn’t pass an Energy that have been interfered with by the this because we have so many problems bill. I can go on with many more such White House. dealing with FCC and outsourcing. We as this. I believe in the Constitution of the swallow hard and take the across-the- In closing, I hope the Federal Energy United States. Here it is. This is the board cuts that Senator STEVENS said Regulatory Commission does not act second one. It was given to me by Sen- we have to do. That is fine. There are with the full power that the Federal ator BYRD. I wore the first one out. He issues such as dealing with guns, abor- Energy Regulatory Commission now gave it to me. I treasure the other one, tion, and overtime. People don’t have has. I hope the Federal Energy Regu- although it is worn out. I asked him to to come and tell us what is in this bill. latory Commission will understand give me another one. We know what is in this bill. We know that we were that close to deciding we The Constitution, among other how important the bill is. Go down 16 did not want the Federal Energy Regu- things, calls for three separate but blocks from here and tell them to leave latory Commission to have the single equal branches of Government. This is us alone and let us go back to the con- and sole power to regulate electricity not a king’s court. This is an Executive stitutional basis of this country and interests in this country. led by the President and a Congress have a Congress that does what it But when the first electric-gener- that has two branches; the House and wants. If the White House doesn’t like ating plants and generating systems the Senate. Then, of course, we have it, let them veto the bill. But they are mandated by the Federal Energy the courts. The President can’t just have no right, in my opinion, to start Regulatory Commission to join in or- override by dictates what we have done stuffing things in the bill that the ganizations that they don’t want to be here in a legislative body. I know there House has overridden—overtime, FCC, in, and they ask the question why, the are crocodile tears being shed by peo- outsourcing, for example. answer is going to be clear. ple saying: Why can’t we do the omni- I want this omnibus bill to pass. We For those Senators who represent bus? want the omnibus bill to pass. But we them who are upset because their utili- These are only some of the reasons. are not going to under the constraints ties are being forced to conduct them- Some people badly want to pass this we have. selves in a manner that the Federal

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15921 Energy Regulatory Commission deter- you do it? You used natural gas be- availability of jobs, our cost of living, mines singularly and solely, the ques- cause the Clean Air Act said you could our lifestyles, our standards, all that tion will be: How can they do that? My do it no other way. So we did. But on we hold dear as Americans will have to friend, Senator CRAIG from Idaho, the other side, we were not producing change because so much of what we do knows how they can do that. That is more natural gas so we used up the sur- today is based on a relatively low cost, their authority without an Energy bill. plus capacity, and a couple of months reliable supply of energy to all sectors, We modified that significantly to ago gas spiked—at $5 to $6 per million all segments of our economy. take into account the differences in cubic feet—astronomically high. What Shame on this Senate because a little our energy system. That is gone. Be- happened? The chemical companies bit was not right or a little bit was not tween now and the time we get a shut down and sent their work over- right there. Nobody looked down the chance to take another look at this seas. Of course, those electrical plants road. Nobody got out in front of their bill, perhaps we will have a few of those that were built in the decade of the headlights to try to understand the im- mandates that will take place. Then 1990s, that were generating electricity, plication of failing to move a bill that people will ask: Why did that happen? turned off the switches. They could not produces long-term investment in the I will say: Well, there was nothing we afford in the marketplace to be able to energy sector. could do about it. The Senate chose not generate electricity. The bill we have We just passed an important bill for to pass the bill. in the Senate today, that we have been all citizens of our country. It is an ex- I acknowledge that the Senate denied passage of, would go a long way penditure right out of the general fund worked its will at least temporarily in toward remedying that problem. of the United States Treasury. While an interim decision, but I am hopeful If the American consumer believes we were criticized on the energy side that in the next couple of months as we you pass a bill tomorrow and the light for some of the tax credits in this bill, watch things get worse in the energy switch is reliable, they better remem- there is a fundamental difference. field we will find a way to come back ber its reliability is based on a decade First of all, the industry has to in- to this bill and pass it substantially as of investment, that it does not happen vest in the economy before they can it is, and if some adjustment has to be just overnight. What the Senator from get the credit out. They have to drive made, that we will find ways to do New Mexico was trying to do is drive investment. They have to go out and that. that investment forward for decades to borrow money, pour concrete, build It isn’t going to be easy. But neither come to create reliability. transmission lines, and hire people. has it ever been easy to pass an energy The other morning I woke up to the These jobs, created by the tax incen- policy for this country. We have been announcement that the President of tives and the investment, is somewhere looking for it, looking at it, staring at the nation of Georgia had just re- in the neighborhood of 800,000 over the it, watching it evolve and doing noth- signed. What does that mean as it re- decade into the energy sector. ing for many years. We passed a bill lates to our energy? We want the oil There is a fundamental difference in about 10 or 12 years ago. But it wasn’t out of the Caspian Sea to flow into the the way both bills ought to be looked like this bill. It wasn’t a dramatic energy markets of this world to drive at. While what we just voted on is an change in the policy of our land in down overall prices and to create avail- important expenditure for the well- terms of energy production and energy ability. Guess what happened. Compa- being of our country and the well-being efficiency and energy alternatives. nies are building a major pipeline of our citizen’s health, this is an in- Those are temporary—while the winter across Georgia. They invested heavily vestment in the infrastructure, in the season hits. Those are out there with through the politics of this President. stability, in the light switch reli- no action. They have a big NA after He resigned. Georgia is almost in revo- ability. them—no action—or a big nothing done lution. Yet that $2 billion pipeline that Tomorrow morning, for anyone who by Congress after each of those epi- is listening, when you flip that switch sodes that could occur and that will is going to start producing about 1.2 for just a moment, think, how did the embarrass us because we didn’t do our million barrels of oil a day into the electricity get there? No one really un- job. world market may not produce. I yield the floor to the distinguished The significance of the resignation of derstands it unless you have studied it. Shevardnadze, the President of Geor- Think a little bit about it. When you Senator, Mr. CRAIG. The PRESIDING OFFICER (Mr. gia, is quite simple. He, by that action, go to the gas pump and fill up your car, CHAFEE). The Senator from Idaho. created some degree of instability in ask yourself why it is a little higher Mr. CRAIG. I thank my colleague, the world oil market. If we are going to now than it was a year ago. How did it the senior Senator from New Mexico, continue to rely on our supply flowing get there? All of that is part of what for yielding. from unstable areas of the world, then makes our country work. Let me first and foremost thank him the American consumer can expect The Energy bill we had before the for the phenomenal time and effort he broad fluctuations at the fuel pump— Senate, the Energy bill we must have has put into a national energy policy. $1.50, $2, $2.50. before the Senate again when we re- We missed getting cloture by just two The passage of this legislation would turn, will speak to that, speak to it votes. Again, a majority of the Senate stabilize that kind of action. There is clearly, and say to the American peo- supports your work. It is full, it is no question. If this Senate thinks we ple, the Congress of the United States comprehensive, it is revolutionary in will rely on the nation of Georgia or has looked out into the future, deter- driving this country toward having re- the Caspian Sea or Saudi Arabia or mined what the fundamental needs are, liable energy once again. anywhere else to be a reliable, con- and is creating an environment of in- As the average American got up this tinual supplier of hydrocarbons into vestment that creates reliability, that morning and flipped the light switch, our system to fuel the gas pumps and creates conservation, that creates new the lights came on. They expect that to to fuel our chemical industry, they technologies, that drives the energy happen every day. What they do not ought to think once again. sector in the direction of production as understand is that there is now a risk The Senate Energy Committee has well as conservation for the well-being in our country that might not happen. fought long and hard about this for the of this country and future generations. Why? Because over the last decade we last decade. In the last 5 years we have I thank the senior Senator from New have not allowed the energy sector to worked hard, in the last 2 years we Mexico for all the work he has done in reinvest, to reconnect, to change the have kept the lights burning all night 2004. Early on in the next session of the way it did business in the past. Govern- to try to craft a bill. 108th it is incumbent upon this Con- ment regulation, in almost every in- The Senator from New Mexico got gress to finish our work on that issue. stance, stood in the way and created a that job done. We missed by just two I yield the floor. supertest and sometimes total obstruc- votes in the Senate. It is the Presi- The PRESIDING OFFICER. The Sen- tion in the ability of a company to in- dent’s No. 1 priority. He thinks like we ator from New Mexico. vest back into the energy sector. think, if we do not make a major move Mr. DOMENICI. Mr. President, I During the decade of the 1990s, if you in the direction of beginning to supply thank the distinguished senior Senator wanted to generate electricity, how did energy to the country once again, the from the State of Idaho, Mr. CRAIG,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15922 CONGRESSIONAL RECORD — SENATE November 25, 2003 very much for his comments and his for their fine work on the Energy bill. ments from many on the other side of help on the bill thus far. While we are not going to get that bill the aisle. And some on the other side of He made a great point about the fu- passed before we leave for the holiday the aisle joined us. I thank those Mem- ture in terms of investment and the in- break, it is something that I know the bers who have stood up, just as many frastructure. This bill would have en- Senator from New Mexico and the Sen- did today, to what appears to be, from couraged that. That is just one item. ator from Idaho and others are going to the Democratic leadership point of There is an ancient piece of legisla- work on and diligently try to accom- view, obstructionist tactics that are tion called PUCHA, and it would have plish for the reasons they outlined. used here in the Senate on almost—I been repealed. People have been saying Mr. President, I wanted to run down almost want to go back and maybe re- it should have been repealed for dec- and put into the RECORD a summary of consider the term ‘‘almost’’—I will say ades. It makes it hard to get the kind some of the things we have been able to almost everything, but it is almost ev- of investment in this industry that accomplish this year. erything to the point where you think most industries can get. We finally re- We go out on the accomplishment of it is everything. But we have had some pealed it this year. It was stuck in the delivering to the American people what cooperation from many Democrats, and mud of an ancient bill. We are scared has been asked now for several years certainly enough to get some of the to let money get invested in utilities by our seniors, and not just by seniors more important bills that we consid- and utility investment in business. but by the children of seniors and the ered here done. I thank those who par- Everywhere you looked there were grandchildren of seniors, who see the ticipated in that bipartisan coopera- things to be fixed. That is why it is a fiscal strains that have been put on tion. big bill. their parents and grandparents as a re- We were able to accomplish a budget. There is an issue, Senator, regarding sult of, in many cases, not having pre- We were able to accomplish, as a result the MTBE, the substance approved by scription drug coverage or having pre- of the budget, a tax plan, again, done the United States Government as an scription drug coverage that is very ex- in a bipartisan way, here on the floor oxidizer for gasoline. There is no ques- pensive. Particularly for lower-income of the Senate. And the effects of that tion Senators brought issues with ref- individuals, it can be quite a drain on tax plan have been really some of the erence to it to the attention of the their resources, as well as diminishing most startling economic news we have Senate. We have to take a look at that their quality of life in their senior seen in a long time. Just today, it was announced for the with the House because the Senate has years. many Members who are worried about So we go out on somewhat of a high last quarter growth—which was really the first full quarter that was able to that issue. We know we get no bill or here. And as it should be, because we get the impact of the President’s tax we take that in conference. have accomplished a lot this year. I hope the House will look at that in If you go back to when this session reduction and jobs growth proposal— we saw it now not at 7.2 percent growth January because when this bill dies, started, and the Senator from Ten- but 8.2 percent growth, the best in 20 there is no protection for the producers nessee became the majority leader in years in this country. That is an enor- of MTBE. When it dies, the hold harm- the transfer of power, if you will, here mous feather in the cap of this admin- less clause that we put in—and we can in the Senate, the first thing he said istration’s policy of stimulating sit around a table and with enough we would do was clean up the mess growth in the economy by reducing time we can convince almost anyone that did not get accomplished last taxes, particularly targeted at inves- that they are not so bad as some im- year. tors and small- and medium-sized busi- plied. That is a major issue that will We had no budget last year, which nesses. meant we could not really pass any of have to be looked at. I thank the White We were able to accomplish that be- our appropriations bills. The Govern- House for helping us on that—or trying cause we had a budget we passed in the to help. There are those who think it is ment spending was locked into last Senate that allowed for a tax reduction the most important issue around, and I year’s level, and we did not have a that has been put in place. As a result have an empathy with them. whole lot of new initiatives at the of that tax reduction, which in part I call on them to apply their thought time, when we were looking at a whole was reducing capital gains tax, but also process in the next few months. The new Department of Homeland Security, reducing the double taxation of divi- bill will die if we do not inject life into a war on terror, and a war on the hori- dends, it has caused a $2 trillion in- it. With it will go whatever protections zon in Iraq. crease—a $2 trillion increase—in valu- the MTBE industry got in this bill. There was a lot of uncertainty going ations of equities in this country. That Maybe that is the way we can look at on here, and we did not have the fiscal is an enormous turnaround. it when we come back and try to figure discipline in place to be able to get our I was watching the news this morn- out a way to take a frontal attack on fiscal house in order here in Wash- ing, and someone was talking about that issue. Who knows, there might be ington, DC. their retirement savings having been enough Senators who may want to take So the first thing we said we would eroded, and the impact on seniors, and a look at that bill just on that point do was we would clean up that mess the impact on those who are approach- alone. and pass the spending bills, and fight ing those seniors years and their abil- I close now by thanking Senators off repeated attempts, in almost $1 tril- ity to have a stable retirement. When who worked very hard on the bill. It is lion in amendments on the other side, you add $2 trillion back to the value of as difficult an undertaking as you can of adding spending to these appropria- those equities, you do a lot to stabilize have. I decided to do that after years tions bills and then subsequently to people’s retirement and give them the on the budget, and it is much more dif- the budget that we passed after we peace of mind they are going to be able ficult than writing the budget for the passed the appropriations bills from to get through their retirement years United States. We did it, but in a sense the prior year. with a fair—hopefully, good—standard we are two votes short. The rule is it So we passed the appropriations bills of living. requires 50 votes for adoption, but we from the prior year. On top of that, we That was as a result of the budget, did not have enough for a filibuster, put a new budget in place, and we the leadership here in the Senate and which would require 60. passed a budget. We thought that was of the Senate Republicans, and ulti- So with that, I yield the floor and important. Many here thought another mately the tax reduction that was thank the Senate for listening. budget could never pass in the Senate passed as a result of the great leader- The PRESIDING OFFICER. The Sen- because of the practice of last year and ship of our President. ator from Pennsylvania. the difficulty in trying to get a budget We were able to provide resources f into the framework of seeing really for, obviously, the war on terrorism slow growth compared to what we have and homeland security, which is a new ACCOMPLISHMENTS THIS YEAR seen in the past 7 or 8 years. appropriation. The Senator from Mis- Mr. SANTORUM. Mr. President, I That was accomplished. It was tough, sissippi, Mr. COCHRAN, who chairs that commend the chairman of the Energy and a lot of tough votes. We were able subcommittee, was just in the Cham- Committee and the Senator from Idaho to stand tall and fight back amend- ber. We passed that bill in a timely

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15923 fashion so those increased resources very many steps in the right direction to get this piece of legislation moved would go out to help fight the war on with respect to this culture in Amer- forward for our children and for our fu- terrorism here at home, as well as, ob- ica. This is a step in the right direction ture economy. viously, provide resources we need for to put some humanity back in the We have the omnibus appropriations our men and women in uniform in Af- treatment of those innocent children in bill. One of the victories was the AIDS ghanistan and in Iraq to fight the bat- the womb. authorization bill we were able to pass. tle on terrorism on the front line over We passed some antispam legislation. But more candidly, the most important in the Middle East. As someone who has young kids and is thing is funding that program. There Another historic accomplishment of bombarded daily with e-mails of not are a whole host of things: An increase this Congress, which is yet to be fully the most wholesome nature, pop-up ads in VA health care, which is in the om- realized is the AIDS bill. We were able and the like, this is a tool we can give nibus appropriations bill, an increase to pass a bill that authorized money to authorities to try to limit the in NIH funding is in the Labor-HHS. for AIDS. And now we are talking amount of that kind of information There are so many important priorities about fulfilling that promise to come falling into the homes of families. It is in this bill. Yet we have been told we up with the money that was in the au- a very serious problem to have this are just not going to be able to get to thorization to fund AIDS in Africa and wonderful tool of the Internet be in- it until January. I know the leader several countries in the Caribbean that fected by this disease of pornography later is going to ask unanimous con- are faced with outrageous, just abso- and violence and other things that are sent to bring up this bill when the lutely incredible suffering and the de- marketed to our children through e- House passes it. The House will pass it struction of the family unit in those mails and through other types of ad- first, as it does customarily with ap- countries, with infection rates of dou- vertising. The Senate has begun the propriations bills. They are coming ble digits in the country, with literally slow process. It will be a slow process, back December 8. We hope to recon- millions of people infected with this as maybe it should be, because we have vene the Senate shortly thereafter to disease, and transmitting it, in some to balance the rights of free speech. bring up this legislation so we can pass cases, to their children. Freedom is something that needs to be it here. Why? Well, because if we don’t We need to do something about pre- used responsibly. No one who wrote the pass it, those increases in VA health vention, and we need to do something founding documents of this country be- care funding, those increases in AIDS about the transmission of AIDS. We lieved freedom to be an absolute. With funding, those increases in NIH, and a also need to do something about treat- rights come responsibilities. That free- whole host of other things in this bill ment. With the appropriations bill that dom, more properly defined as liberty, simply will not go into effect until at is now going to be filed in the House in is a balancing of those rights and re- the earliest the end of January. about an hour and 20 minutes, we will sponsibilities. We need to seek to do If you are for those increases and you have the President’s AIDS proposal that in the case of the Internet, which are for the realignment of budget prior- fully funded: $2 billion in bilateral aid I find to be a wonderful tool but at the ities in these appropriations bills, we and $400 million to meet our obliga- same time a very dangerous vehicle for should take a little time out of our tions under the Global Fund—for every information to flow to people who may break, come back here for a day. We $1 we put up, $2 of international funds. not handle it well and may be scarred will have had several weeks to look at And $400 million will meet that obliga- or changed for life as a result of some this. The bill will be filed in an hour tion as of this time. of this activity. and 10 minutes. Take a look at it. If We will have in place the commit- As I went down that list, I think you you have problems with it, you cer- ment we made to those less fortunate can see it is a list of great accomplish- tainly have the opportunity to voice in Africa and in the Caribbean for the ment. Yet at the same time there is so that opposition and vote no. But that needed help on prevention, trans- much left to be done and so much that is going to be the up-or-down vote we mission, and treatment of those who was blocked by the other side. So when are going to have. We should take the are suffering with AIDS or hopefully you hear, as you will hear, the term opportunity to come back and do it in will not get AIDS. That is a huge ac- ‘‘obstructionism’’ about things that a timely fashion. We have been told by complishment for this Senate. Can- could have been—the Senator from the other side they will object to us didly, it is probably one of most impor- Idaho is here and talked eloquently coming back. So this bill will sit there tant things we can do for humanitarian about the Energy bill—could have for roughly 2 months with a variety of relief. If you look back in history, been, should have been, but for the pro- different spending priorities many peo- there really isn’t a humanitarian cri- cedural tactics of raising the require- ple in this Chamber agree with and sis, a health crisis that will match ment to pass this bill by 60 votes in- that the American public has asked us what is going on today in Africa and stead of an up-or-down vote of 51. That for, including increased funding for sub-Saharan Africa. I am glad to be is their right to do. But as the Senator education, DC choice, allowing stu- part of a Senate which on a bipartisan from Idaho and the Senator from New dents in the District of Columbia to fashion stood up and made a huge fi- Mexico said earlier, it is going to have have the opportunity to go to the nancial commitment. It is not an easy severe consequences for the long-term schools of their choosing. All of those thing to do in a country that feels a lot future of our economy. things will be in this bill, and we will of suffering here at home and wants Energy is not something you turn off not be able to have a vote because of more resources directed here at home, and on like we do the stove or the ther- the power—it is a wonderful thing to be able to set that money aside for mostat. It is something that takes a when you are the minority—of indi- those who are literally dying by the long time to be developed. It takes in- vidual Senators to stop things from thousands each day from this pandemic vestment, a lot of people, a lot of steps happening. That is another obstruc- that has struck sub-Saharan Africa. in the process, as it should, even envi- tion. The commitment of the President, fol- ronmental steps in the process to be We spent 3 days here on the floor of lowed up by the commitment here in able to extract the resources we need. the Senate 10 days ago, 12 days ago, de- the Congress, is something of which we We are not moving in that direction. bating the issue of judges. Here we are should all be very proud. We are not moving toward energy inde- again. We have six qualified, terrific We passed the partial-birth abortion pendence. For a country that is as nominees—not turkeys, not lemons, act. We are stopping this horrendous much dependent upon cheap energy as not neanderthals. Those were words procedure from occurring anymore. this country and this economy are, to used here in the Senate to refer to dis- There are those who are taking that continue to turn a blind eye towards tinguished people who are judges in bill to court. We expected that, but the the needs of our economy and the im- their own right today, justices of su- Senate, with the President’s leader- pact on the quality of life here is a preme courts today, reelected by over- ship, has been able to pass this bill very dangerous thing. whelming numbers in their home that is overwhelmingly supported by Again, I suggest while I understand States, gone through the ABA approval the American public and is a real step the rights of the minority, we need to process and were considered to be ei- in the right direction. We haven’t had find a way to get the 60 votes necessary ther qualified or unanimously well

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15924 CONGRESSIONAL RECORD — SENATE November 25, 2003 qualified. These folks were referred to For example, they say there should they were also the ones supporting the by the people here in the Senate as be no pornography laws, even child por- complete removal of God, or any hint neanderthals, as lemons, and in some nography. They oppose any change in of God, in the public square, whether it respects as turkeys. abortion whatsoever, even partial-birth is in Alabama or in the Pledge of Alle- I can understand where there may be abortion, which 84 percent of the Amer- giance out in the Ninth Circuit. a difference as to the qualifications of ican people believe ought to be dealt The people who made this decision in these judges. They have every right to with. Some of them believe in legaliza- the Ninth Circuit to strike ‘‘under suggest their deficiencies. But to use tion of drugs. I ask the Senator, who is God’’ from the Pledge of Allegiance— that kind of terminology to describe extreme here? do you think they were nominees who people of distinguished legal records Mr. SANTORUM. Obviously, by defi- would be considered to be out of the and careers calls into question the pro- nition, a Republican who gets 76 per- mainstream that President Bush sup- priety of the Senators’ remarks and cent of the vote in a State such as Cali- ported or nominated? No. They are whether they don’t in fact meet the fornia cannot be extreme. Certainly, if nominees of, primarily, President Clin- standard of what is referred to as rule they are extreme in the State of Cali- ton, who views the Constitution as a XIX. Rule IX refers to a Senator. I fornia, the only chance I would think document to be ignored, a nice little don’t think we should be able to refer in my mind that someone could get piece of antiquity that they might to nominees, who put themselves out that high a vote is if they were ex- want to look to see if it suits their pur- to serve the public, in a way that is as tremely liberal. California, let’s admit, pose. But if it doesn’t, we will set it callous and cavalier and disrespectful is a fairly liberal State. It is a very aside and do what we think is right. as that. heavily Democratic State. So for a Re- That is what they do on a regular So I suggest that there is another publican ‘‘extremist’’ in California to basis. It is called activist judges who area of obstructionism—changing the get 76 percent of the vote—I don’t believe we are a government of men, rules. For 214 years, the rule was that think Republican extremists can get 76 not laws. That is what many on the every judicial nomination that came to percent of the vote in a State such as other side—particularly members of the Senate floor got an up-or-down California. I argue that, by definition, the Judiciary Committee—would love vote. Since we put the filibuster in that doesn’t wash. to see. They don’t want judges who place in the early 1930s, 2,370 nominees The fact is, what the Senator said is take the Constitution and the words in have come to the floor of the Senate, true. When you have these organiza- it seriously and feel bound by them. So and zero were filibustered. None. None tions who, in these memos that have we had a huge debate. were blocked. leaked out, are sort of giving marching I think it was an important debate Now, there are several on that side of orders to Members of the Senate Judi- for the Senate on that important issue, the aisle who have taken to putting a ciary Committee on the Democratic and a related issue. There are several chart up that shows 168 to 6, as if 6 is side as to what nominees to hold—and issues percolating in the Senate to do somehow a good number out of 174, some use the term, referring to Miguel something about the huge cost of liti- when zero out of 2,370 was the norm. I Estrada who was nominated for the gation to our economy—whether it is think the Senator from Georgia, SAXBY second highest court in the land—a asbestos litigation, on which there CHAMBLISS, suggested the right answer have been tens of thousands of cases to that. They said they were doing a great rags-to-riches story of a Hispanic filed by people who have been ‘‘ex- great job in approving them 95 percent immigrant to this country—that he posed’’ to asbestos. In the vast major- of the time. The Senator from Georgia was ‘‘dangerous’’ or a ‘‘threat.’’ It was ity of the cases, the people who have suggested that if he went home to his one of those terms. He is a real threat. filed the case, the plaintiffs, are not wife and said he was faithful to her 95 Why? Because he is a superior intel- sick and have no indication that they percent of the time, that would not be lect? Because he has tremendous quali- adequate in her eyes. It is not ade- fications? No, because he is Latino and ever will be sick. But they have been quate, when the Constitution requires we cannot have that. ‘‘exposed.’’ They are clogging the an up-or-down vote, for those people Mr. SESSIONS. If the Senator will courts, consuming huge amounts of re- who believe in the sanctity of that yield, does he think it is possible they sources. I hear colleagues on both sides Constitution to say we are upholding it saw Miguel Estrada as a threat because of the aisle complain about manufac- 95 percent of the time. But that is what he is a brilliant mainstream lawyer, a turing and the problems with manufac- is happening on judicial nominations, Hispanic, who would make a highly turing. Well, look at the asbestos li- and it is another case of obstruction. qualified appointment to the Supreme ability issue, in light of what we are Mr. SESSIONS. Will the Senator Court? doing to our manufacturers. Manufac- yield? Mr. SANTORUM. That is exactly turers are going bankrupt—I won’t say Mr. SANTORUM. I am happy to yield what they said. He is all of the things every day, but every week or two—be- for a question. I talked about—highly qualified, very cause of this litigation going on. It is Mr. SESSIONS. Mr. President, during bright, and a great story of integrity frivolous. The worst part is, I have peo- the debate on the judges, the oppo- and overcoming obstacles. It is a com- ple in my State who were infected and nents, the Democrats who were ob- pelling story. As a result of his eth- have asbestosis, mesothelioma. It is a structing an up-or-down vote, asserted nicity, he would be a threat because he disease that comes with exposure to as- that these judges were ‘‘extreme,’’ and might be elevated to a higher court bestos, and a respiratory disease. These they repeated that. They used that someday. people are sick and they are dying and word repeatedly. They really cited no This is the kind of activity I think they are not able to get a proper jury specific reason they were extreme. I really does debase this institution. We award. In fact, they have gotten their ask the Senator from Pennsylvania, should not be involved in blocking peo- awards and it is pennies. The money who has been so eloquent on this issue, ple who, 10 years ago, would have prob- was eaten up by the trial lawyers. It is how he can explain, in light of the ably not even required a vote on the a horrible situation. groups we now know are opposing these floor of the Senate to be confirmed. We We need to get the people who are nominees, who are extreme? I think we have gotten to the point where the spe- sick the compensation for their disease can demonstrate, without any doubt, cial interests—you hear so much on the and the treatment for their disease, these nominees, such as Janice Rogers Medicare bill about the special inter- and those who are not sick, they need Brown of California, who got 76 percent ests that were involved in the Medicare to be set aside. If they get sick, they of the vote, and Judge Priscilla Owen, bill. I cannot think of any area where will be compensated, but we are all ex- who got 84 percent of the vote are not special interests have had more impact posed to lots of dangerous things in our extreme. Is the Senator from Pennsyl- that has been contrary to the interests lives. That doesn’t mean you can sue vania aware that among the groups of ordinary citizens in America than for them. Only if it causes you harm blocking these judges, and actually ap- what we have seen by the special inter- should you be able to sue. That is an- pearing to pull the strings of Members ests on this judge debate. These organi- other area again being blocked. of the Senate, they have views on their zations support the things the Senator Class action: I see the Senator from Web sites? from Alabama just talked about. But Delaware, Mr. CARPER, here, who is one

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15925 of the leaders in trying to get a bipar- considered by many to be illegal in a man and a woman, and the everyday mean- tisan bill together. I give him a lot of States and, by most Americans, im- ing of marriage and the legal meaning of credit. It is another attempt like we moral with no tradition of acceptance marriage as defined in Black’s Law Dic- did with Medicare, on which he was in- of the history of the United States tionary is ‘‘the legal union of a man and a woman as husband and wife;’’ and volved, trying to bring the sides to- since our Constitution was written. Whereas, families consisting of the legal gether. So far, we have not been able to They have taken that act and turned union of one man and one woman for the get to that 60-vote threshold. We need that into a constitutionally protected purpose of bearing and raising children re- to get that bill done to try to help our act. mains the basic unit of our civil society; and economy move forward. Many of us said there would be con- Whereas, in Goodrige v. Department of Public Medical liability, frivolous lawsuits: sequences for doing so. When we said Health, the Supreme Judicial Court of Massa- Again, this is plaguing the system that, we thought it would be years chusetts ruled four to three that the Con- when it comes to health care, driving down the line. It has not taken years; stitution of the Commonwealth of Massachu- setts prohibits the denial of the issuance of up our cost of pharmaceuticals and of it has taken a matter of a few months marriage licenses to same-sex couples; and health care. In Pennsylvania, our doc- for the Massachusetts Supreme Court Whereas, the power to regulate marriage tors are moving to Delaware, moving to cite Lawrence v. Texas and say now lies with the legislature and not with the ju- to other places where the laws are that this is a constitutionally pro- diciary and the Constitution of the Common- more beneficial, where the legislatures tected right to engage in this behavior, wealth of Massachusetts specifically states have put caps in place to try to limit how can we discriminate two people that the judiciary ‘‘shall never exercise the the amount of cases where runaway ju- who engage in this behavior under the legislative and executive powers, or either of ries end up bankrupting the health equal protection clause, to protect ev- them: to the end it may be a government of laws and not of men;’’ and care system. erybody equally, how can we discrimi- Whereas, in 1996, Congress overwhelmingly That is another area where we have nate against these people who are prac- passed, and President Bill Clinton signed, been blocked over and over. ticing a constitutional right under the the Defense of Marriage Act under which Another area we have been blocked, rights and privileges of marriage? It Congress exercised its rights under the Ef- something on which I have been work- would be unequal treatment if we fects Clause of Article IV Section 1 of the ing, is assistance to the poor. We are didn’t treat these constitutionally pro- United States Constitution: Now, therefore, trying to pass a charitable giving bill, tected actions the same way as we be it. a bill in which I have been involved. We treat traditional marriage. Resolved, That it is the Sense of the Sen- ate— are talking about giving $10 billion I suggested before Lawrence v. Texas over the next 2 years in incentives for (1) That marriage in the United States was decided that if it was decided in shall consist only of the union of one man people to give more money to charities the way it was, we would be heading and one woman; and that same-sex marriage at a time when we are still not com- down a slippery slope. I was wrong. We is not a right, fundamental or otherwise, rec- pletely out of the recession that hit us are heading off a cliff. This is not a ognized in this country; and that neither the in 2001 and 2002. slippery slope; it is a cliff. United States Constitution nor any Federal Again, we have not been able to get If we do not respond to this decision, law shall be construed to require that mar- the cooperation necessary to get a bi- other States will be forced to accept ital status or legal incidents thereof be con- ferred upon unmarried couples or groups; and partisan bill to help social service pro- the dictates of the Massachusetts Su- viders, to help nonprofit groups meet (2) The Defense of Marriage Act is a proper preme Court—the court of appeals in and constitutional exercise of Congress’s the humanitarian needs of people. this case. A couple can go to Massachu- powers under the Effects Clause of Article IV I can go on. The bioshield bill is setts, get married, come back to Penn- Section 1 and that no State, territory, or being blocked. There are a lot of other sylvania, Idaho, Alabama, or Delaware, possession of the United States, or Indian issues on which we are being ob- and say: I demand under the full faith tribe, shall be required to give effect to any structed. I wanted to balance the ac- and credit clause of the Constitution public act, record, or judicial proceeding of complishments we have been able to that you recognize this marriage. any other State, territory, possession, or achieve in the Senate and this Con- tribe respecting a relationship between per- What is the State to do, because the sons of the same sex that is treated as a mar- gress, and they have been substantial. Constitution demands it. So we are in We have a lot to go back home and talk riage under the laws of such State, territory, a situation where de facto, we could possession, or tribe, or a right or claim aris- about as to what we have been able to have that policy of Massachusetts by ing from such relationship. work out in a bipartisan way in the an unelected group of judges, by a vote Mr. SANTORUM. Mr. President, I Senate, but there is still a lot of work of 4 to 3 being forced on the entire won’t read the whereases, but I will to be done that the House has accom- country unless we do something in the read the resolved clause: plished and that is sitting in the Sen- Senate to act. That is a constitutional . . . it is the sense of the Senate— ate not being done. It is very impor- amendment which defines marriage tant to our economy and very impor- (1) That marriage in the United States and describes it in the Constitution. shall consist only of the union of one man tant to the future of our country. I happen to think we put a lot in the and one woman; and that same-sex marriage One further comment. The Senator Constitution that are building blocks is not a right, fundamental or otherwise, rec- from Idaho has been very patient. I of society, certain freedoms, certain ognized in this country; and that neither the don’t know if the Senator from Idaho truths that we establish in the Con- United States Constitution nor any federal or the leader is going to propound mo- stitution. I cannot imagine anything law shall be construed to require that mar- ital status or legal incidents thereof be con- mentarily a unanimous consent re- more fundamentally important to the quest to vote on a resolution. This is a ferred upon unmarried couples or groups. stability of our society than having ... resolution having to do with marriage. stable families in which to raise stable Second, because we already passed a As my colleagues know, the Massa- children, and anything that under- statute in the Congress that accom- chusetts Supreme Court handed down a mines that, to me, undermines the core plishes pretty much what I just read— 4-to-3 decision that said there is now a of who we are as Americans. it was the Defense of Marriage Act, constitutional right in the State of We will ask for a vote on the resolu- supported by 90-some Senators and Massachusetts to same-sex marriage, tion. I ask unanimous consent to print which is a remarkable turn of events, signed by President Clinton. The reso- the resolution in the RECORD. lution says: within a few months of a case in the There being no objection, the mate- U.S. Supreme Court, the Lawrence v. rial was ordered to be printed in the (2) The Defense of Marriage Act is a proper and constitutional exercise of Congress’s Texas case, which took an act—which RECORD, as follows: for 214 years in many States has been powers under the Effects Clause of Article IV RESOLUTION seen as an illegal act and in the vast Section 1 and that no state, territory, or pos- majority of the American public’s Whereas, marriage is a fundamental social session of the United States, or Indian tribe, institution that has been tested and re- shall be required to give effect to any public mind certainly not a moral act—an act affirmed over thousands of years; and act, record, or judicial proceeding of any of sodomy and turned that act into a Whereas, historically marriage has been other state, territory, possession, or tribe re- constitutional right. That is what the reflected in our law and the law of all juris- specting a relationship between persons of Court did. It turned this act that is dictions in the United States as the union of the same sex that is treated as a marriage

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15926 CONGRESSIONAL RECORD — SENATE November 25, 2003 under the laws of such state, territory, pos- the Senator from Pennsylvania. I ap- ents through the adoption system of session, or tribe, or a right or claim arising preciate his leadership and the accom- our country. Think what this Thanks- from such relationship. plishments he has helped guide us giving is going to be to those 3,000 chil- In other words, we are going to go through this past year in the first ses- dren who will now sit down at a table back on record in the sense of the Sen- sion of the 108th Congress. They are to have Thanksgiving dinner with new ate—as a precursor, hopefully, to a many, and there are yet many to ac- parents who are offering them perma- more full debate—that no State should complish. nent love and stability in their life. be forced to adopt the marriage laws of Yes, we have had substantial obstruc- While this is wonderful news, there another State such as Massachusetts. tionism on the part of our colleagues are still far too many children waiting It should be, as this constitutional on the other side. Why? It is politics to for permanent, safe, and loving homes. amendment which I will advocate will them in many instances. They see Our foster care system provides tem- be, the people’s decision. If the people those as defining lines between their porary care for more than 580,000 often- decide, by constitutional amendment party and ours. I do not think object- times abused and neglected children. or otherwise, we are going to change ing to or obstructing judges is that. I Among those children, 126,000 of them what marriage is, I will fight against think it is an act that is unconstitu- are waiting for adoption. For anybody that, but I will respect that decision tional in its character. I think it is who reads this RECORD or might be because that is the way we decide now broaching on a constitutional cri- watching at the moment, listen up. issues in America. sis in our country to suggest that it There are 126,000 kids in America who What I am concerned about is that takes a supermajority when any one would love to have one of you as their the Commonwealth of Massachusetts individual decides to confirm or at parent, their mother or their father, and their courts are going to create a least bring to the floor the vote of a who would love to have you offer them new constitutional right; they are judge. a permanent and loving home. going to change the Constitution with- f Sadly, every year 25,000 children age out going through the rigors of what out of foster care. What does that the Constitution demands for change, NOVEMBER, NATIONAL ADOPTION mean? They become 18 years of age. and that is a constitutional amend- MONTH They leave the foster care system, ment. Mr. CRAIG. Mr. President, the Sen- never having known a permanent, car- So we will take up that mantle. We ator from Pennsylvania was talking ing, loving home. Foster parents are will do it the right way. We will try to about marriage. I come to the floor to caring, but it is not permanent and the change the Constitution in the way the talk about families for just a moment, child knows that. So they graduate Framers intended, not the way it has and I will be brief. The Senator from out. They are out on the street at 18 been practiced recently with the courts Delaware has been waiting patiently taking on that mantle themselves and years of age. They do not have the sta- also. changing it without the benefit of hav- bility of the family unit. Seventy-plus This is November. This is the month percent of them get in trouble. Sev- ing any public input on the process. of Thanksgiving. Hopefully, most of us We will offer an amendment to get enty-plus percent of them just cannot are a few days away from the oppor- the constitutional majority that is make it because they do not have a tunity and the privilege to go home necessary to pass it, which is two- mom or a dad to refer back to, to help and sit down with our families and thirds of the Members of this body and them, to give them advice. They are on have a Thanksgiving dinner of some of the House, and then three-quarters their own at age 18. proportion; most importantly, to be of the States through their legislature, I would not have wanted to be on my with our families. That is what this representing the people in those own at age 18. Now I might have country is all about and certainly that States, to ratify this amendment. thought I could have been. But how I believe this is a fundamentally im- is what Thanksgiving is all about. many times did I go home to mom and November is, in my opinion, another portant issue, one I guarantee we will dad to ask for their advice, their help, special month. For the last month, I be discussing at length next year, and or their counsel? Well, innumerable have been wearing on my lapel—and I I hope the American public will begin times. do not have it on today—a little gold to engage in this debate, not as an at- So I hope Americans will consider word that says ‘‘adopt.’’ November is tempt to stop anybody from doing any- opening their homes and their hearts National Adoption Month. I am a proud thing but as an attempt to solidify to children through adoption. As an parent of three adopted children. I am what is the basic building block of our adoptive father, I can say this experi- going home to be with them and our society. ence has changed my life, and this This is not being done as against grandchildren for Thanksgiving. We Thanksgiving I will be reminded of all anybody. It is being done for something have three children and seven grand- of that when I hug those seven that we know has intrinsic value and children now. My wife Suzanne and I grandbabies and try to share a little good and is a stabilizing and important are tremendously proud of that. turkey with them. element of any successful society, and I became a father through adoption. Last year, President Bush launched that is healthy stable families in which Well, this month of November is Na- the first Federal adoption Website to children can be raised in that environ- tional Adoption Month. It is a time to help families connect while waiting ment, so we can raise the leaders of the celebrate special families, the families children across America connect to next generation. of more than 2 million children in them. The Web site is This is an important debate. I hope America who are adopted, according to www.AdoptUSKids.org. Go online. Find we will not be obstructed. I hope we the U.S. Census Bureau. In fact, it is out that you, too, can become an adop- will have an opportunity to have a full estimated that more than half of the tive parent. and fair debate on this issue, that the population of America has been person- MARY LANDRIEU, the Senator from public will have an opportunity to see ally touched by adoption, whether they Louisiana, and I have cochaired the the Senate at its finest on an issue that are adopted or have adopted or have a adoption caucus on the Senate side for I believe is at the core of who we are as close friend or family member who is a good number of years. We have Americans. adopted or has adopted. In other words, passed a lot of laws to make adoption I thank the Senator from Idaho for many of us have said adoption is a phe- easier, we have provided tax credits, we his indulgence in listening to me go on nomenally viable option when it comes have created incentives, because we for a while, as well as the Senator from to forming a family. want Americans to go after those Delaware, although he had to indulge Just this past week, we added to 126,000 children who are not yet in per- less than the Senator from Idaho. those numbers. November 22, this last manent, loving homes. I yield the floor. Saturday, was the fourth annual Na- We have also created the Congres- The PRESIDING OFFICER. The Sen- tional Adoption Day. On that day, the sional Coalition on Adoption. I have ator from Idaho. courtrooms of the Nation, where volun- just stepped down as its chairman. Mr. CRAIG. Mr. President, I was teers helped, over 3,000 children found MARY LANDRIEU has become its chair- pleased to sit and wait and listen to permanent, loving homes and new par- man. It is now a freestanding 501(c)(3)

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15927 institute. We have had tremendous suc- specified by its Majority Leader or his des- That could be said of the process we cess with people coming in to help us, ignee in the motion to recess or adjourn, or have gone through to modernize Medi- to advance the cause of adoption. We until the time of any reassembly pursuant to care and add a prescription drug ben- hope Americans might look at us also section 2 of this concurrent resolution, efit. It has been a difficult debate and whichever occurs first’’. because we are willing to help them a difficult process. break down the barriers so that they The concurrent resolution (H. Con. Churchill also said democracy is the can build their family through adop- Res. 339), as amended, was agreed to, as worst form of government devised by tion, if that is what they choose. follows: wit of man, except for all the rest. Later this week, a lot of Americans, H. CON. RES. 339 That is also something I would have us as I have said, will be sitting down at Resolved, That the resolution from the keep in mind today as we reflect on that Thanksgiving table. It is a mo- House of Representatives (H. Con. Res. 339) this bill. ment to be thankful for so much, but it entitled ‘‘Concurrent resolution providing Mr. President, 38 years ago a Demo- is a moment also to recognize that you for the sine die adjournment of the first ses- cratic President, Lyndon Johnson, sion of the One Hundred Eighth Congress.’’, signed into law legislation creating could give a little more. If it is at that do pass with the following amendment: time in your life or at that moment Page 1, line 2, strike out all after ‘‘concur- Medicare. At the time it was hailed as when you and your spouse have decided ring),’’ over to and including line 3 on page 3 a milestone. It was hailed as a land- you want a family, here is one way to and insert: That when the House adjourns on mark in providing a benefit to millions do it. There are 126,000 children waiting any legislative day from Tuesday, November 25, of our senior citizens who did not have for you to select them and bring them 2003, through the remainder of the first session access to health care, did not have ac- into your heart and your home for a of the One Hundred Eighth Congress, on a mo- cess to hospitals, did not have access to loving, permanent relationship that in tion offered pursuant to this concurrent resolu- doctors and nursing care. With the tion by its Majority Leader or his designee, it signing of that bill by then-President every way will be positive. stand adjourned sine die, or until such day and So November is National Adoption time as may be specified by its Majority Leader Johnson, the whole world changed for Month. Choose adoption as an option. or his designee in the motion to adjourn, or millions of Americans. Today it con- If I can be of help, call me, or go online until the time of any reassembly pursuant to tinues to change for tens of millions and go to www.AdoptUSKids.org. You section 2 of this concurrent resolution, which- more. will have a happier Thanksgiving. ever occurs first; that when the Senate recesses Initially, Medicare, when it was fash- or adjourns at the close of business on any day f ioned, was designed to provide access from Monday, November 24, 2003, through the to hospitals for people who needed to PROVIDING FOR SINE DIE AD- remainder of the first session of the One Hun- get hospitalized to get well. They JOURNMENT OF THE SENATE dred Eighth Congress, on a motion offered by its Majority Leader or his designee, it stand ad- would have that under Medicare if they AND THE HOUSE OF REPRESENT- were old enough. Similarly, if folks ATIVES journed sine die, or stand recessed or adjourned until such day and time as may be specified by were in need of access to a doctor’s Mr. CRAIG. Mr. President, I ask its Majority Leader or his designee in the mo- care or nurse’s care, they would have it unanimous consent that the Senate tion to recess or adjourn, or until the time of under that legislation he signed 38 proceed to the immediate consider- any reassembly pursuant to section 2 of this years ago. ation of H. Con. Res. 339, the adjourn- concurrent resolution, whichever occurs first. There are a number of things that ment resolution. The PRESIDING OFFICER. The Sen- bill did not provide. It did not provide The PRESIDING OFFICER. The ator from Delaware. for home health care. It did not provide clerk will report the concurrent resolu- Mr. CARPER. Mr. President, before for outpatient care. It did not provide tion by title. my friend and colleague from Idaho for access to prescription medicines or The legislative clerk read as follows: leaves the floor, I want to express my enable senior citizens, those Medicare A concurrent resolution (H. Con. Res. 339) thanks on behalf of those 100,000-plus eligible, to obtain help buying prescrip- providing for the sine die adjournment of the kids who are looking for a home of tion medicine. Over time Medicare has first session of the One Hundred Eighth Con- their own with loving, adoptive par- evolved, as we know. Over time we gress. ents. Thank you, and my friend Sen- have learned. Today we are a lot There being no objection, the Senate ator LANDRIEU, from Louisiana, for the smarter. We can keep people out of proceeded to consider the concurrent wonderful leadership you have shown. hospitals and treat them on an out- resolution. Not just talking the talk but, in the patient basis. We are far wiser about Mr. CRAIG. I ask unanimous consent case of your family, very much walking keeping elderly people out of hospitals that the amendment at the desk be the walk. Happy Thanksgiving to you. and, where it makes sense, treating agreed to, the concurrent resolution, as I certainly express that same senti- them in their homes. amended, be agreed to, and the motion ment to our colleagues here. As we ap- We also know today, in 2003, we can to reconsider be laid upon the table. proach Thanksgiving in 2 days, in spite prevent a lot of illnesses and we can The PRESIDING OFFICER. Without of our problems in this country, we cure a lot of illnesses. We can enhance objection, it is so ordered. have much for which to be grateful. I the quality of life for senior citizens by The amendment (No. 2217) was agreed very much appreciate the chance to making sure they have access to pre- to, as follows: work here with our colleagues, and am scription medicines we did not have in On page 1, line 2 strike ‘‘That’’ and all that grateful for the staffs who help us serve 1965, and frankly we did not dream follows through page 3, line 3, and insert: our constituents back home in Dela- about in 1965. ‘‘That when the House adjourns on any leg- ware and Alabama and Idaho and If we were creating Medicare anew islative day from Tuesday, November 25, Rhode Island and other places. We are today, this week or this month, it 2003, through the remainder of the first ses- thankful for the opportunity our con- would be a no-brainer. We would have sion of the One Hundred Eighth Congress, on stituents have given us this Thanks- home health care. They would provide a motion offered pursuant to this concurrent giving and every Thanksgiving and for outpatient services and care. It resolution by its Majority Leader or his des- ignee, it stand adjourned sine die, or until throughout the year to serve them. would also include a prescription medi- such day and time as may be specified by its Mr. CRAIG. I thank my colleague. cine component. Majority Leader or his designee in the mo- f When I was Governor of Delaware tion to adjourn, or until the time of any re- and running for the Senate in 2000, I assembly pursuant to section 2 of this con- MEDICARE DEBATE talked a fair amount about prescrip- current resolution, whichever occurs first; Mr. CARPER. I don’t know that Win- tion drug programs that were proposed that when the Senate recesses or adjourns at ston Churchill, one of the great leaders in the Congress, principally one pro- the close of business on any day from Mon- of Britain, ever said anything about posed by Senator GRAHAM of Florida. I day, November 24, 2003, through the remain- Thanksgiving or turkeys. He is some- thought and still think it is a better al- der of the first session of the One Hundred Eighth Congress, on a motion offered by its body we like to quote a lot. He used to ternative than what we have adopted Majority Leader or his designee, it stand ad- say there are two things people should here today. Adopting this legislation journed sine die, or stand recessed or ad- not see made: One of them is sausages today is an example of not letting the journed until such day and time as may be and the other is laws. perfect be the enemy of the good.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00047 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15928 CONGRESSIONAL RECORD — SENATE November 25, 2003 There are a number of principles I Between $250 and roughly $2,250, unions, and individuals—to find a way have said for some time we should at- Medicare will pay 75 percent of drug to take those same dollars to provide tempt to adhere to when putting in costs for most seniors who participate first dollar of coverage for pensioners. I place a Medicare prescription drug ben- in this program. Medicare will pay hope we are smart enough to take efit. Foremost among these is that the more for those who have low-incomes. I those same dollars and perhaps use program should be voluntary. If senior am told the average cost of prescrip- them to pay the $35 monthly Medicare citizens want to participate, they can. tion medicines for people 65 and older prescription drug premium for retirees; If they choose not to participate, then in this country is roughly $2,200. That to pay for the $250 deductible; to pay they will not have to. would suggest to me that many who for some of the costs Medicare will not Second, I suggested that among the elect to participate in this benefit, in- cover between $2,250 and $5,000. principles we adhere to is the prescrip- cluding middle-income seniors, will Similarly, I hope we are smart tion drug plan we adopt be one that benefit from it. enough in States such as my State, and would provide help where the help was Between $2,250 and $5100 in drug in cities and counties and those units most needed—for folks who do not have costs, Medicare continues to provide of government that have in many cases any kind of coverage, those whose in- comprehensive coverage for low-in- prescription drug benefits for their comes were very low, and those whose come seniors. However, for middle- pensioners, to have the wherewithal need for prescription drugs is exorbi- class seniors, the benefit does not pro- and farsightedness to modify the kind tantly high. vide any coverage at all for spending in of coverage we now provide to build on A third principle I have suggested is this range. That is the gap in coverage. the basic Medicare prescription plan that middle-income senior citizens I wish it was not there. I hope we can offered as part of this legislation— should find some help, some benefit eliminate this gap in coverage as we maybe to pay for the monthly pre- from this legislation. get our fiscal house in order. mium, or all the deductible, or maybe A fourth principle is we should do our Seniors will have a drug discount to reduce the size of that donut hole very best to harness competition and card as part of this program. The dis- between $2,250 and $5,000. market forces, to use those market counts they will receive may be worth But we don’t just have to hope that forces to help contain the dramatic in- 10 to 20 percent. If someone’s prescrip- will happen. The legislation includes crease in the cost of prescription medi- tion use is $4,000 or $5,000 a year, they substantial incentives for employers cines. will fall in the coverage gap, but the and States to do just what I have de- A fifth principle is there should be no benefits from that discount card I scribed. For every dollar that a private gaps and no caps in coverage. We vio- think will equal or exceed the cost of sector employer provides in qualified lated that principle in this legislation. their premium. But that is still a very prescription drug benefits for their We violated one other principle that I modest benefit for those whose drug pensioners—benefits that will supple- have talked about as well, and that is needs are between $2,250 and $5,000 a ment and enhance the Medicare benefit this prescription drug plan should be year. On the other hand, for people who in this bill—they will realize, as a re- consistent with a balanced budget. The unfortunate reality is that a have very large prescription drug sult of the incentives in this legisla- plan with no gaps or caps has become needs, whose costs exceed $5,000, the tion, an after-tax benefit of 50 to 70 inconsistent with a balanced budget. catastrophic benefit is generous. Medi- cents on that dollar. We find ourselves today as a country in care pays for 95 percent of those costs Is that going to keep all those em- a huge hole, a fiscal hole, because of that exceed $5,000. ployers and all those State and local unwise tax cuts, a war on terrorism, a I have heard any number of concerns governments in the game? No, it is not. war in Afghanistan, a war in Iraq, and about this legislation, raised not just But in the absence of that kind of in- a slumbering economy that is slow to by my colleagues but by folks back centive, what has happened? Well, go revive. Because of the size of that home in my State of Delaware. They back in time. In 1988, roughly two- budget deficit, we are unable to pass have raised questions and legitimate thirds of the large companies in Amer- the kind of prescription drug program concerns that we need to address. ica provided health benefits for their many of us would like, one that has no First of all, with respect to cost con- pensioners and provided a prescription gaps and one that has no caps. tainment, is there enough in this bill? drug benefit for their pensioners— I have listened with some fascination I don’t think so. There are those who roughly two-thirds, 15 years ago. to the debate here in the Senate and suggest we ought to consider the ap- Today, in 2003, that two-thirds is no raging across Capitol Hill and across proach adopted by the VA, whereby the longer two-thirds. Today, roughly one- the country. On the one hand, my Veterans’ Administration negotiates third of the larger employers in this friends on the left say the bill we have with the pharmaceutical industry in country provide a prescription drug just adopted here is the end of Medi- order to buy pharmaceuticals for vet- benefit for their pensioners. Without care as we know it. They say that it is erans at lower prices. I think that is this legislation we are adopting today, not just the nose of the camel under worth exploring. we have seen a reduction almost by the tent, it is the camel under the tent. We made it easier as part of this leg- half of those employers that provided a On the other hand, I have heard folks islation for generic drugs to be intro- benefit 15 years ago. They have stopped from the far right, who oppose this duced, to come to market. That will in- doing so today. If you run it out over with equal vehemence, say there are no crease competition and push down the next 15 years, if this trend con- changes of consequence to Medicare, prices. It is a modest effort. We need to tinues, by the time 2018 rolls around that it will be more of the same, that do more in this respect. you may have no private sector em- we have adopted a new entitlement But what we have with this bill is an ployers providing benefits. program with scarce efforts at serious opportunity. I sometimes talk about That would be an awful thing. We cost containment. the glass being half full or half empty. need to do something about it. We need Both those sides cannot be right. My I think we have an opportunity—cer- to provide the kind of incentives to em- own view is neither of them are right. tainly in my State, and I suspect in ployers we have provided in this legis- For folks old enough to participate in other States as well—to take this basic lation. We desperately need private this program, they will have a choice. Medicare drug benefit and to build on sector employers to continue to pro- If they want to participate, they can. If it. Since I know my State best, I will vide a prescription drug benefit for they want to pay $35 a month for a pre- talk about Delaware. We have a num- their pensioners. We desperately need mium, they can participate in this pro- ber of employers who provide prescrip- States and local governments to do the gram. If they are poor, that $35 per tion drug coverage to their retirees. same with respect to their pensioners. month premium is forgiven. There is a Roughly 40 percent of our employers in There is another source of prescrip- $250 annual deductible that must be Delaware today still provide that ben- tion drug benefits I want to talk about. satisfied before the Medicare benefit efit. Some of those benefits are pro- When I was privileged to serve as Gov- kicks in. For people who are poor, that vided as a result of collective bar- ernor, I signed into law legislation to $250 deductible will be essentially eased gaining agreements. I hope we are create the Prescription Assistance Pro- or eliminated. smart enough—employers, labor gram in our State. For pensioners

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15929 whose incomes go up to 200 percent of Thanksgiving. She is alive today in come a lawyer?’’ The Dean wrote in poverty, they are eligible for a benefit part because of the love that surrounds reply ‘‘study hard, be a good boy, al- each year that is worth about $2,500. her. She is also alive today, I am con- ways have a dream.’’ His dream led him We also have in our State a wonderful vinced, because of prescription medi- to Providence College and Boston Uni- program called the Nemours Program, cines to which she has access. She has versity Law school. Soon after gradua- funded by a trust left by a wealthy heart failure and takes medicine for tion, he enlisted in the United States family a long time ago. They provide that. She has arthritis. She is able to Army and served on active duty from help to children in my State and they take medicine for the arthritis that af- 1941 until 1946 rising to the rank of also provide assistance to senior citi- flicts her. My mom suffers from Alz- major. He later would be promoted to zens in my State. The DuPont Chil- heimer’s disease. She and literally hun- colonel in the Judge Advocate General dren’s Hospital in Delaware is funded dreds of thousands of Alzheimer’s vic- Corps as a reservist. by that trust. It is a wonderful institu- tims around the country today have After his discharge from active duty tion. It helps kids all over the country access to medicines that are beginning and a brief stint in private practice, and literally all over the world. The to show great promise in making sure Judge Pettine began a thirteen year Nemours Plan also provides a prescrip- that many of us do not end up living career as a prosecutor in Rhode Island tion drug plan for senior citizens whose the last years of our lives in a state of Attorney General’s office. Like every income runs from 0 to 135 percent of dementia. She has a better quality of task he undertook, he brought great poverty. They also provide eyeglasses life today because of prescription medi- passion and determination to his en- and dentures. cine. She gets a fair amount of help deavor. He understood that our adver- We have to be smart enough in our through the employer that my dad sarial system of justice requires that little State of Delaware to make sure used to work for. They provide a pre- both the prosecution and the defense the dollars being spent for prescription scription benefit and hopefully will must bring the full weight of the facts medicines under the Nemours Plan continue to do that. We are thankful and the law before the jury so that continue to be spent on prescription as- for the assistance that she gets. For a they may have the benefit of principled sistance for Delaware seniors. It does lot of people in our country who do not and forceful advocacy to make their not need to be spent in the same way it have anything at all, who do not have decision. He was a tough and uncom- is today, because the Medicare plan any kind of prescription benefit, who promising prosecutor determined to en- will cover literally all of the needs for are elderly and need that help, a lot of force the law. His repututation and his very low income seniors that Nemours them will get this help as a result of record as a prosecutor earned him ap- currently assists with. But those same the legislation we have adopted here pointment as the Federal Attorney for dollars can now be used to help fill in today. the District of Rhode Island in 1961. His the gaps and make more generous the Is this legislation all we would like it service as Federal Attorney won him basic Medicare plan, which will be, at to be? No. Is this the end of the road? the praise of U.S. Attorney General best, modest. No. Is this a decent beginning? It is. It Robert F. Kennedy as one of the na- Similarly, the millions of dollars the is incumbent upon Congress to make it tion’s top three federal prosecutors. State of Delaware is spending on the a beginning, a good beginning, but not And, this prosecutorial experience prescription assistance plan that we the end. would help make him a superb judge put in place roughly 4 years ago covers I yield the floor. upon his appointment to the bench in between 135 percent and 200 percent of The PRESIDING OFFICER. The Sen- 1966 by President Johnson. Judge poverty. If we are smart in our State, ator from Rhode Island. Pettine recognized that the role of a we will take those same dollars and re- f judge was different than that of a pros- direct them—not necessarily to cover ecutor or defense counsel. He was IN MEMORY OF JUDGE RAYMOND the same people; we will not need to. charged with something greater than J. PETTINE Some of those people who will be ad- simply enforcing the law or arguing for vantaged by virtue of the Medicare Mr. REED. Mr. President, on Mon- a client. He was charged with seeking plan won’t need the kind of help they day, November 17, 2003, Rhode Island, justice, that delicate balance that rests get under the Delaware Prescription the judicial community and the entire on fairness and a keen understanding Assistance Plan. But we should take Nation lost a great jurist, a great of the nature of people as well as the those dollars now being spent through scholar and a great man. United States tenets of the law. He was also charged that program and redirect them to fill District Court Judge Raymond J. in a special way with defending the the gaps, to wrap around and supple- Pettine passed away leaving behind a Constitution and the Bill of Rights. He ment the basic Medicare plan. legacy of protecting individual lib- recognized that our democracy, in his Similarly, the dollars spent by pri- erties and constitutional rights. words, ‘‘prizes itself in having a Bill of vate sector employers and by public Judge Pettine was born July 6, 1912 Rights designed to protect us against sector employers should no longer, on America Street in Federal Hill, one despotic abuse of authority by the gov- starting in 2006, be spent exactly in the of the original Italian neighborhoods in ernment.’’ same way, but to the extent that we Providence; a fitting place to be born There was no more courageous, force- are smart and wise and farsighted, we for someone who would champion the ful or principled defender of the Con- can redistribute those dollars to build Constitution that distinguishes this stitution than Raymond Petinne. In 30 around the basic Medicare plan, to fill country, America, from so many oth- years on the federal bench, and as chief the gaps that obviously are there that ers. His father was a wigmaker in Italy judge from 1971 to 1982, Judge Pettine need to be filled, and be able to provide who immigrated to these shores to find staunchly guarded the individual in the end a benefit that we can all feel a better life for his family and to make rights enshrined in the Constitution. good about and be proud of. a better America through his labors He said the Constitution should be in- I close by going back to where I and his sacrifice. Judge Pettine was terpreted in ways that ‘‘give meaning started. If we had gathered here this sustained and inspired by the example to the heart and soul of what it’s all year and had no Medicare Program, of these good people, his mother and fa- about: a kinder, more understanding and we said let us start from scratch, ther. The hard work, the great patriot- Constitution that recognizes the we would include a prescription drug ism, the unwavering decency and integ- disenfranchised, the poor and under- plan. In 1965, we didn’t have the ability rity, the deep respect for both family privileged.’’ to provide prescription medicines for and faith, the gracious manners of a In his rulings, he repeatedly upheld the sort of things we do today. If we true gentleman were learned in that the Bill of Rights’ freedom of speech, of had, a lot of people would have lived a home on America Street. religion and of privacy. Judge Pettine lot longer and healthier and better Early in his life, Judge Pettine be- stood by the Constitution and showed lives. came fascinated with the law. As a courage in the face of controversy A couple of days from now, I will be child of eight, he scrawled a note to the when he, a practicing Catholic, ruled with my own mother. I look forward to Dean of Harvard Law School and asked that municipalities could not erect being with her, probably the day after him, ‘‘What do you have to do to be- Christmas nativity scenes on public

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00049 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15930 CONGRESSIONAL RECORD — SENATE November 25, 2003 land. As he said, ‘‘I firmly believe this The Senator from Montana. Jon Blum. He was the ace numbers with great conviction: that there has f guy. I think in many cases he knew to be a separation between church and more about the various intricacies of THANKING STAFF FOR HARD state—that one of the saving graces of this bill than anyone else; an amazing WORK ON MEDICARE this country is the fact that we are tol- man. erant of all religions, and even of those Mr. BAUCUS. Mr. President, I thank Pat Bousliman, the same. Pat who have no religion. And, if we start my good friend, Senator BYRD, from worked extremely hard and knew the breaking that down, we are going to be West Virginia. ins and outs of all the provider posi- in an awful lot of trouble.’’ There have been many comments tions—the physician and the hospital His wise defense of the Constitution about the Medicare bill that just payment provisions, and home health and its protections for individual con- passed, all the time and effort, and the care, so well. science brought him vicious criticism controversies that surround it. My per- Andy Cohen, who worked primarily and personal scorn. But, no amount of sonal view is that it is not just a good on Medicaid and low-income issues, criticism or scorn could deter him from bill, it is a very good bill. It will help and then Dan Stein, who was the clean- his obligation to extend the protec- senior citizens and a lot of others who up hitter—he is wonderful. And I’d like tions of the Constitution to the poor as need help. to recognize former staff persons, who well as the powerful, to the maligned I understand some of the criticisms also worked so hard on this bill earlier as well as the popular. Judge Pettine made against the bill. Some of them in the process, but have since taken ad- embraced his judicial duties with re- are overdrawn and exaggerated. But I vantage of different jobs or opportuni- markable dedication. He became a understand the core points some critics ties. scholar of the law and, in order to insu- have made. As with all legislation, and Kate Kirchgraber. Kate was our Med- late himself from even the appearance as with all things human, there is some icaid specialist. Mike Mongan is a young man, who is of partiality, he led a life focused on truth all the way around. I pledge my brilliant. I was able to hold onto him his family and the lonely rigors of his time and effort to work to correct any for one extra year before he finally de- judicial responsibilities. Nevertheless, imperfections in this legislation that cided to go off to law school. he was a dashing figure in Rhode Is- may arise. But all in all, we have to make decisions. We have made a deci- Those are the members of my Fi- land. He was a man of great culture nance Committee health care team sion; and that is, to pass this legisla- and erudition who exuded style and pa- who worked so hard. tion. I think it is a good bill that is nache. Others in the Finance Committee Judge Raymond J. Pettine has left a going to help a lot of people. It is a who played a very key role are Jeff remarkable legacy. His wisdom, his in- major advance to the Medicare Pro- Forbes, the minority staff director, and tegrity and his selfless devotion to the gram. Bill Dauster. Many people know both The Medicare Program, which was Constitution made him a judge of ex- Jeff and Bill. Bill has served the Senate enacted 38 years ago and signed by traordinary achievement. His love of in many capacities, particularly with President Lyndon Johnson in Inde- family and his compassionate regard his expertise in budget matters and pendence, MO, has been a tremendous for all he met made him a man of sin- Senate procedures. He was invaluable success for our senior citizens. gular worth. I admire him greatly. He to me. has given us the example and the con- This bill represents the next major Russ Sullivan is my top tax person. fidence to carry on. And, his presence advancement. It is a new entitlement And Judy Miller. Judy is from my will continue to be felt whenever we for prescription drug benefits for our home State of Montana and, she knows stand up in defense of the Constitution seniors not contained in the original pension issues better than anyone I can and in defense of those who are Medicare Act that passed 38 years ago. think of. The two of them worked on ‘‘disenfranchised, the poor and under- There are a lot of people to thank. the tax provisions in this bill. privileged.’’ And my point here today is not to Laura Hayes handled press for the Fi- My deepest condolences go out to his dwell on the bill but, rather, to thank nance Committee. family and friends, especially his people who worked so hard and who or- Tim Punke is my chief trade person. daughter, Lee Gillespie, his grand- dinarily receive so little credit. And Brian Pomper, also on the trade daughter, Lauren Gillespie and his son- The most noble human endeavor is staff. There are several trade provi- in-law, Thomas Gillespie. service. It is service to church, to com- sions that came up in this bill, particu- I yield the floor. munity, to family, to spouse, to chil- larly with respect to reimportation The PRESIDING OFFICER. The Sen- dren. It is service in whatever way from Canada. ator from West Virginia. makes the most sense for each one of Two of my former staff who left a Mr. BYRD. Mr. President, I note on us. There are many people who served year ago, or less than that, are wonder- the floor the distinguished senior Sen- to the maximum in helping to write ful people and also deserve recognition. ator from the State of Montana. I am good legislation, and I shall mention One is my former staff director, John sure he has a desire to speak and fill their names. Angell; and my chief counsel, Mike other appointments. I ask the Senator, Members of the House and the Senate Evans, who, during the course of this without losing my right to the floor, who serve get the benefit of their bill, would call in. They would call in how much time does the Senator de- names in newspapers and shown on and give lots of advice. sire? TV—usually it is a benefit, sometimes Senator GRASSLEY, Chairman of the Mr. BAUCUS. My guess is I will con- it is not—but at least they get the Committee—his health team have all sume a maximum of 10 minutes. credit or the blame. But there are been wonderful to work with. Linda Mr. BYRD. Mr. President, I have the other people who work very hard be- Fishman, Mark Hayes, Colin Roskey, floor; do I not? hind the scenes. That is, the staff, who Jennifer Bell, and Leah Kegler—all The PRESIDING OFFICER. The Sen- probably work even harder and receive working so hard. And others on Sen- ator from West Virginia is recognized. little or no recognition. So I would like ator GRASSLEY’s team, Ted Totman, Mr. BYRD. Mr. President, I yield the to recognize a few of those people who who has been with Senator GRASSLEY floor to the distinguished Senator from played a central role in this legisla- for many years, and Kolan Davis, who Montana not to exceed 10 minutes, tion. is Chairman CHUCK GRASSLEY’s staff di- with the understanding that upon the First, my Finance Committee health rector. completion of his remarks I retain my care team, led by the wonderful Liz Senator BREAUX, my chief negoti- right to the floor. Fowler. Those of you who have worked ating partner: On his staff is Sarah The PRESIDING OFFICER. Without with Liz Fowler know what I mean. Walter. Sarah is very smart. She is objection, it is so ordered. There is none better. She works so very good. Michelle Easton and Paige Mr. BYRD. I ask that the Senator hard, she is so smart, and she has a Jennings, both of whom have also con- from Montana be limited to 10 minutes. wonderful disposition, working hard to tributed significantly to this bill. The PRESIDING OFFICER. Without help provide better health care for Other conference members, of course, objection, it is so ordered. Americans. were Chairman BILL THOMAS and

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15931 Chairman BILLY TAUZIN, Majority Kuban—all in the office here in Wash- But we all know that the program is Leader FRIST, Speaker HASTERT, and ington, DC. And back home in my not perfect. It is at times slow to adapt Majority Leader TOM DELAY in the State of Montana: Barrett Kaiser, Jim to the evolving health care market House played a great role. Their staffs Foley, and Melodee Hanes, working all place. We owe it to our seniors to en- did, too, especially John McManus, the time to answer tons of telephone sure that Medicare changes with the who is the chief health staff for Chair- calls about this bill and coordinating times and continues to serve their man THOMAS, and his staff, Madeline all of our outreach and education ef- needs today and into the future. Smith, Joel White and Deb Williams; forts. The practice of medicine has changed Pat Morrissey, the deputy staff direc- Others here in my DC office, two per- dramatically over the past 4 decades. tor for Chairman BILLY TAUZIN, and his sons who work in the receptionist area, Outpatient prescription drugs were not staff Kathleen Weldon, Chuck Clapton, Megan Mikelsons and Rachel Sherouse included in Medicare’s original benefit Pat Ronan and Jeremy Allen; and then answered many telephone calls, too, package. In 1965, medical care empha- for Majority Leader BILL FRIST, Dean and handled them all very directly and sized hospital-based and physician-pro- Rosen and Liz Scanlon. They are all with great grace and civility. vided care. Today, medical care in- very able, wonderful, extremely capa- There are many others, Mr. Presi- creasingly relies on the use of prescrip- ble people, along with everybody else dent, on other staffs who I have not tion drugs. we have been working with who I have mentioned, but I mention these people As the role and expense of prescrip- not mentioned by name. because I know personally how hard tion drugs have grown dramatically On the administration side, Ziad they have worked. I also mention them over the past several decades, the lack Ojakli, Matt Kirk, and Jennifer Young as representative of all the other peo- of a prescription drug benefit in Medi- all played a significant and helpful ple who have worked for Senators, who care has become a critical flaw. role. And Erik Ueland on Senator have worked in different capacities up Seniors will spend an estimated $2,300 on average for prescription drugs this FRIST’s staff played a valuable role in here in the Senate and over in the the coordinating between the Congress House and who have just poured their year, with almost $1,000 coming di- and the White House. hearts out. They are here because they rectly from their pockets. And while many seniors are fortunate to have Senator NICKLES, Senator KYL, Sen- want to do the right thing. They are coverage through retiree health plans, ator HATCH, Congresswoman NANCY here because they want to help people. Medicaid, Medigap, and Medicare man- JOHNSON, and Congressman MIKE BILI- They are here because they want to aged care plans—over 35 percent of RAKIS and their staffs played an im- make this a better place. Essentially, measurable part in this bill. they are here because they are ful- Medicare beneficiaries currently lack Other conferees who were, unfortu- filling a very deep moral obligation. I any coverage for outpatient prescrip- tion drugs. nately, excluded from the conference— think all of us have an obligation to The lack of prescription drug cov- that is, from the working group— make this place as good or even better erage in Medicare, coupled with the played very strong roles in making this than we found it, in whatever way we rising cost of prescription drugs, is bill better than it otherwise might do that. For some of us, it is health forcing seniors across America to make have been: Minority Leader TOM care legislation, and for some of us it is difficult choices. In the wealthiest na- DASCHLE, Senator ROCKEFELLER, Rep- some other area. tion in the world, millions of elderly resentatives DINGELL, RANGEL, and The names I have mentioned are the Americans are forced to choose be- BERRY. Believe it or not—they may not names of people who I hope are remem- tween much-needed prescription drugs believe it—but their views helped to bered and recognized. I urge everyone and basic necessities of daily living. shape this bill; many of the low-income to dwell a little more on the people Our seniors deserve better. provisions, their views on premium who really do the work, those I have With the passage of this bill, we have support, and lots of areas where their mentioned, and others who work in the opportunity to uphold our commit- strong views helped Senator BREAUX similar capacities in this body. ment to America’s seniors. With this and I a lot. Mr. BAUCUS. Mr. President, 38 years conference report, we can deliver on I need to mention, also, the Congres- ago, President Lyndon B. Johnson our promise to add a prescription drug sional Budget Office and the House and signed the Medicare Act in Independ- benefit to Medicare. Senate legislative counsel. ence, MO. For millions of senior and This bill provides seniors with much- The Congressional Budget Office, disabled Americans, the enactment of needed prescription drug coverage and CBO, as we call it, is headed up by this legislation heralded an era of hope, protection against high out-of-pocket Douglas Holtz-Eakin. He works long health, and improved financial secu- drug expenses. Under the new Medicare hours, as do his top people, Steve Lie- rity. Part D, seniors will have access to pre- berman and Tom Bradley and all of At the signing of the Medicare Act, scription drug insurance for a modest their staffs. Particularly in the final President Johnson said, ‘‘No longer monthly premium. This benefit will weeks of this bill, when we had to call will older American be denied the heal- provide up-front coverage for prescrip- up and say: What is the CBO estimate ing miracle of modern medicine . . . tion drug expenditures up to $2,250 an- for this change? What is the CBO esti- And no longer will this Nation refuse nually, and catastrophic coverage for mate for that change? It is an almost the hand of justice to those who have out-of-pocket spending above $3,600. impossible job because we were asking given a lifetime of service and wisdom For the millions of seniors with for lots of different changes. and labor to the progress of this pro- lower incomes and costly medical ill- The House and the Senate legislative gressive country.’’ nesses, this legislation offers the prom- counsel—Ed Grossman, John Over the past 4 decades, the Medicare ise of comprehensive affordable pre- Goetcheus, Pierre Poisson, and Jim Program has fulfilled President John- scription drug coverage through Medi- Scott. Man, oh, man, did they work son’s vision. Through Medicare, more care. Low-income seniors, more than a hard. They probably put in more hours than 100 million Americans have re- third of all Medicare beneficiaries, will than anybody else. Once we had the ceived the protection of health insur- receive generous assistance for all concepts, they would have to write the ance during their most vulnerable their prescription drug expenses, in- language. And this world, which is run years. Today, Medicare covers more cluding premium subsidies, reduced by deadlines, we were always waiting than 35 million seniors and 6 million deductibles, and affordable cost-shar- until the very end, unfortunately, be- disabled Americans. Medicare provides ing. fore decided on a direction to write the assurances to these millions of Ameri- And we have designed a bill that will legislation. And Ruth Ernst, who also cans that their health care needs will provide coverage in every part of the worked extremely hard. be taken care of. country. If private drug plans elect not On my personal staff: Zak Andersen, And Medicare has stood the test of to participate in any area of the coun- who is my chief of staff, in helping to time. Thirty-eight years after its en- try, our seniors will have guaranteed coordinate all these matters; Sara Rob- actment, Medicare remains one of the access to a government fallback, erts, my legislative director; Farrar most extraordinary acts of legislation backed by the solemn commitment of Johnston, my scheduler; and Sara in the history of Congress. Medicare.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15932 CONGRESSIONAL RECORD — SENATE November 25, 2003 Thus, all seniors will have equal ac- was financed through a combination of a sorrowful heart, what the President cess to a drug benefit, regardless of payroll taxes, premiums, and general has wrought. By failing to win inter- whether they choose to join a managed revenue, and in the way it was orga- national support for the war in Iraq care plan or remain in traditional fee- nized, with fiscal intermediaries and and by failing to plan effectively for an for-service Medicare. carriers making payments for separate orderly post-war transition of power, This legislation offers more than a Part A and Part B benefits. has the President managed to create in Medicare prescription drug benefit. It In the final analysis, let us not forget Iraq the very situation he was trying will finally address many of the Medi- why this bill is important. Millions of to preempt? care reimbursement inequities that seniors live today without prescription The deaths of three more American have plagued America’s rural health drug coverage. They live in greater soldiers in Iraq over the weekend, and care providers. It will increase pay- pain, and they live shorter lives, be- the vicious mob attack on the bodies of ments to local physicians and commu- cause of that. two of them, are but the latest evi- nity hospitals to improve health care With this bill, we will take an impor- dence of a plan gone tragically awry. services throughout the nation. And tant step to make their lives better. To The death toll of American military this legislation will better foster com- help them live longer, fuller lives. That personnel in Iraq since the beginning of petition between generic and brand- is our purpose here today, and that is the war has now reached 427, and it name pharmaceuticals. why I support this conference report. continues to climb on a near-daily I have heard from many of my col- For 38 years, Medicare has been a basis. Most troubling of all is the fact leagues regarding some of the imper- covenant—a pact between the genera- that more than two-thirds of those sol- fections in the conference report—for tions. All Americans—young and old, diers who have died in Iraq have been example, the gap in coverage, the risk rich and poor—pay into the promise of killed since the end of major combat that the bill may cause employers to Medicare. And the Congress has the re- operations. At that time, 138 American drop retiree drug coverage, the poten- sponsibility to uphold this commit- fighting men and women had died in tial state shortfalls in the early years ment to those who benefit from it. As Iraq, at the time major combat oper- of the benefit, the increased payments part of that responsibility, we must ations had ended. Instead of making to private plans, and the ‘‘premium continue to improve the program and headway in the effort to stabilize and support’’ pilot program. keep up with modern medical care. democratize post-war Iraq, the admin- While I remain committed to ad- This conference report represents an istration seems to be losing ground. If dressing these potential shortcomings historic opportunity to strengthen the current violence cannot be curbed, in the legislation during the upcoming Medicare. And as elected officials, we if Iraq is allowed to descend unchecked months and years, we must not forget have the obligation to take advantage into a holy hell of chaos and anarchy, that this bill creates a $400 billion ex- of this opportunity. Of course, we also the implications could be catastrophic pansion of the Medicare Program. We have the responsibility to ensure time- for the region and the world. must not squander this historic oppor- ly implementation in a way that ful- An article earlier this month in the tunity to fundamentally improve the fills congressional intent. Los Angeles Times, entitled ‘‘Iraq Seen lives of millions of American seniors. On the day of this historic vote, we As Al Qaeda’s Top Battlefield,’’ raises We would not have this opportunity take a step to ensure that Medicare the alarming specter that Iraq already without the fine leadership in the Sen- continues to fulfill Lyndon Johnson’s is replacing Afghanistan as the global ate. Senator GRASSLEY, chairman of vision. We take an important step to center of Islamic jihad. According to the Finance Committee, skillfully led deliver on our promise to America’s the article, as many as 2,000 Muslim this effort through the committee, on senior citizens. fighters from a number of countries, the floor, and in the conference nego- I yield the Floor, and I again thank including Sudan, Algeria and Afghani- tiations. Majority Leader FRIST was my good friend from West Virginia. stan, may now be operating in Iraq. No willing to put aside party differences to The PRESIDING OFFICER. The Sen- one knows the numbers for certain, but focus on achieving bipartisan con- ator from West Virginia. foreign Islamic terrorists are suspected sensus. Senator BREAUX’s efforts Mr. BYRD. Mr. President, I thank my in some of the deadliest attacks in helped bridge differences. The work of friend from Montana, Mr. BAUCUS. Iraq, including the bombing of the Senator BREAUX, my steadfast partner f United Nations headquarters and the in the difficult negotiations, as well as INVASION OF IRAQ Red Cross offices in Baghdad. Senators SNOWE, HATCH, JEFFORDS, and GRAHAM have greatly contributed to Mr. President, it was the prophet It seems only yesterday that the the debate over prescription drugs Hosea who lamented of the ancient President and his advisers were warn- throughout the past several years. Israelites, ‘‘For they have sown the ing the United Nations that Saddam And Senator KENNEDY, the health wind, and they shall reap the whirl- Hussein must be disarmed at once, care expert of the Senate. For over 25 wind.’’ forcibly if necessary, to preempt Iraq years, Senator KENNEDY has fought to I wonder if it will come to pass that from becoming the next front in the include prescription drug coverage the President’s flawed and dangerous war on terrorism. On May 1, when the within Medicare. Through his contin- doctrine of preemption on which the President announced the end of major ued leadership, prescription drugs for United States predicated its invasion combat operations in Iraq as he basked seniors are now within reach. of Iraq will some day come to be seen in the glow of a banner that was wav- Senator KENNEDY played a key role as a modern-day parable of Hosea’s la- ing overhead proclaiming ‘‘Mission Ac- in getting a good bill out of the Senate ment. Could it be that the Bush admin- complished,’’ he described the libera- and throughout the conference. The 76 istration, in its disdain for the rest of tion of Iraq as ‘‘a crucial advance in votes in the Senate are a tribute to his the world, elected to sow the wind, and the campaign against terror.’’ efforts, and whatever is positive in this is now reaping the whirlwind? What a difference a few months bill is due to his dedication and hard I ponder this as the casualties in Iraq makes. Before the war, it was Afghani- work. continue to mount, long past the end of stan and al-Qaida, not Iraq, that con- And there is much that is positive in major conflict, and as the vicious at- stituted the central front in the war on this bill, in my view. Of course, the tacks against American troops, human- terror. It was Osama bin Laden, not conference report is not perfect by any itarian workers, and coalition partners Saddam Hussein, who orchestrated the means. There are elements that I increase in both intensity and sophis- September 11 attacks on the United would not include if I were writing this tication. I ponder this as the number of States, and it was Osama bin Laden, bill on my own. But it is a true com- terrorists attacks bearing the hall- not Saddam Hussein, who orchestrated promise. It reflects a near evenly split marks of al-Qaida appear to be increas- earlier attacks on the USS Cole and on Congress. ing, not just in Iraq but elsewhere, in- the American embassies in Kenya and Let us not forget that the original cluding Saudi Arabia and, most re- Tanzania. It is Osama bin Laden who Medicare Act also represented a com- cently, Turkey. I cannot help but won- continues to taunt the United States promise—in the way that the program der, as I view these developments with and who continues to plot against us,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15933 and it is Osama bin Laden who has ex- pears to be deteriorating, not improv- world, has inadvertently sown the wind horted his followers to gather in Iraq ing. and must now confront the whirlwind? to avenge the U.S. invasion. While the President and his military Mr. President, in a short time—per- Today, while the Taliban appears to advisers remain upbeat about Iraq, the haps the next day or so—the Senate be regrouping in Afghanistan, it is Iraq top CIA official in Baghdad appears to will adjourn for the year. We are privi- that has become the most powerful have reached a far bleaker assessment leged and blessed to return to the com- magnet for Islamic terrorists. It is Iraq of the situation on the ground. Accord- fort of our families for the holidays. where these forces have coalesced with ing to news reports, a top secret CIA Not all families in America will share Saddam Hussein loyalists to create an analysis from Baghdad has concluded in our blessings. increasingly sophisticated and deadly that growing numbers of Iraqi citizens Many families will wait out the holi- insurgency that has paralyzed U.S. ef- are turning against the American occu- days in fear and tension as they worry forts to establish postwar stability. pation and supporting the insurgents. about their loved ones in Iraq and Af- Ironically, Saddam Hussein and his It may well have been this report that ghanistan. henchmen are more of a threat to the prompted the President to recall the We in the Senate will not be here to United States today than they were be- U.S. administrator of the Coalition absorb the news from the battle fronts fore the war began. Provisional Authority to Washington in Iraq and Afghanistan or to voice our Could it be that the war on Iraq, two weeks ago for a hastily arranged response to these developments. I pray while succeeding in chasing one mon- round of meetings on accelerating the that all will be calm, that ‘‘Silent ster into hiding, has created another, transition of power to an Iraqi provi- Night, Holy Night’’ will be more than equally vicious, monster in his stead, a sional government. the strain of a familiar carol. But I hydra-headed monster that is spewing Nothing could do more to spotlight worry it will not be so, that reality terrorism against both the Iraqi people the Administration’s abysmal failure will be harsher than sentimentality. and their would-be liberators? Could it to rally international support for the The war in Iraq is far from over. be that the convergence of Islamic stabilization and rebuilding of Iraq When we will ultimately be able to de- jihadists and Baathist loyalists con- than this frantic scramble to arrange a clare victory, I do not know and I dare stitutes a more potent adversary than Hail Mary pass of power from the not venture a guess. I only hope that we ever imagined possible in Iraq? United States to a provisional govern- the President will be able to put the Could it be, that instead of providing ment in Iraq that does not yet exist. good of the Nation over the pride of his a ‘‘crucial advance’’ in the war on ter- The Administration has slapped a new administration and accept a helping rorism, as the President suggested, the deadline on the democratization of hand from the United Nations to turn war on Iraq has provided crucial new Iraq—an Iraqi ‘‘transitional assembly’’ the tide of anarchy in Iraq. Perhaps he resources—money, weapons, and man- is to be in place by June 1—but it has may finally be ready to do so. Senior power, as well as motivation—for the come up with no blueprint as to how administration officials have been terrorists themselves? Could it be that that assembly is to function or how it quoted as suggesting that the United instead of curbing terrorism, the war can be expected to stem the violence in States is preparing to seek another on Iraq has served to fan the flames of Iraq. U.N. resolution endorsing a new plan terrorism? Once again, the administration is ig- for the transition of power in Iraq. I If only the President had listened noring the obvious—the United States urge the President to do so without more closely to his father, and his fa- cannot go it alone in Iraq. The United delay. This time around, the effort ther’s advisers. In the 1998 book that he Nations and NATO need to be brought must be genuine, and the resolution co-authored with former National Se- on board as full partners with a per- must be meaningful. curity Adviser Brent Scowcroft, A sonal stake in the governance, the sta- The facts are stark and hard to ac- World Transformed, the first President bilization, and the future of Iraq. cept. If not outright losing, the United Bush said of his decision to end the 1991 Every day that the administration States is far from winning the peace in Gulf War without attempting to re- continues to spurn the United Nations Iraq. Only a significant turnabout in move Saddam Hussein from power, ‘‘We is another day that the insurgents have the handling of the security and recon- would have been forced to occupy to choreograph their attacks in Iraq struction effort, centered on giving the Baghdad and, in effect, rule Iraq. and further isolate the United States United Nations a leading role in the . . .there was no viable ‘exit strategy’ from the rest of the world. The pattern transition of power, holds any hope for we could see, violating another of our is becoming chillingly clear. System- a constructive course change in Iraq. It principles.’’ atic attacks, including those against is a course change that is desperately The former President Bush and his the United Nations and the Red Cross needed. national security adviser further cau- headquarters in Baghdad and the As the crisis in Iraq deepens, leader- tioned that, ‘‘Going in and occupying Italian military police headquarters in ship and statesmanship are urgently Iraq, thus unilaterally exceeding the Nasiriyah, have succeeded in driving needed. I pray that the President, in United Nations’ mandate, would have most humanitarian workers from Iraq his desperate quest for a new solution destroyed the precedent of inter- and have rocked the resolve of U.S. al- to the chaos in Iraq, will demonstrate national response to aggression that lies to support the Iraq operation. In those qualities, abandon the U.S. we hoped to establish. Had we gone the the wake of the attack on the Italian stranglehold on Baghdad, and forge a invasion route, the United States could troops, Japan is reconsidering its offer meaningful partnership with other na- conceivably still be an occupying to send troops to Iraq, and South Korea tions of the world, a partnership with power in a bitterly hostile land. It continues to procrastinate. Help from the United Nations so that a swift, or- would have been a dramatically dif- other countries on which the United derly, and effective transition of power ferent—and perhaps barren—outcome.’’ States had pinned its hopes, including in Iraq can be achieved and American Clearly the situation in Iraq today is Turkey and Pakistan, has evaporated. fighting men and women can come far more difficult and dangerous than Even in the streets of London, the home. the administration ever envisioned or seat of government of America’s f prepared for before the war. Although strongest ally, tens of thousands of the President declared an end to major demonstrators marched on Trafalgar THE APPROPRIATIONS PROCESS combat operations more than six Square last week to protest President Mr. BYRD. Mr. President, I join with months ago, U.S. forces in Iraq have re- Bush’s state visit and his policies in my colleagues to decry this appropria- cently been forced to resort to a new Iraq. tions process. This process has fallen bombing campaign in and around Bagh- Because of the administration’s arro- apart. Despite the hard work of the dad—the most intense aerial offensive gance and impatience, the United chairman of the Senate Appropriations since active combat ended—in an effort States, for better or worse, is the Committee and the bipartisan effort of to stem the insurgency. More than 6 make-or-break force in Iraq. Could it members of the House and Senate Ap- months after the end of major combat be that the President, in his haste to propriations Committees, the omnibus operations, the situation in Iraq ap- impose his will on the rest of the bill is parked and the engine is cold.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15934 CONGRESSIONAL RECORD — SENATE November 25, 2003 Why? Why is it that funding for 11 of There are many provisions that are vision included in both the House and the 15 departments of this Government controversial and were not considered the Senate CJS appropriations bills is two months late? Why is it that the by the Senate. There is language that limited funding to the FCC for pur- Nation’s veterans haven’t received permits overfishing in the Northeast poses of keeping the media ownership funding? Why is it that our classrooms fishery. There is language that would cap at 35 percent for the next year. The have been relegated to the sidelines? mandate that the Justice Department CJS conferees agreed to the language. Why is it that health care, law enforce- destroy background check records for But behind closed doors, the White ment, education, roads, airports, em- the purchase of guns within 24 hours of House said no, not good enough. bassy security, worker safety, job the gun purchase. These matters were In a back room, the Republican Lead- training, farmers are put off, day after never debated in the Senate because ership and the White House changed day? It is because the White House has the Commerce/Justice/State bill was the rules. Instead of a 1-year limita- insisted on legislating. The White never debated in the Senate. tion, we now have a ‘‘permanent’’ fix, House has overplayed its hand and, as a There is language in the omnibus authorizing the cap to be raised to 39 result, the nation is not served. conference report that would postpone percent. A permanent fix was never de- On Thursday, the Nation will pause the country of origin labeling rule that bated by the Senate. This is a policy to celebrate Thanksgiving. But our col- was enacted as part of the Farm bill. decision that should be made by the leagues on the other side of the aisle Rather than the 1-year delay that was authorizing committees. Instead, it have decided to deliver to the Senate a in the House bill, there is a 2-year was made by a few individuals and that turkey of an omnibus appropriations delay, breaking up the balance of the authorizing language is now being conference report. This turkey is filled 2002 Farm bill. The DC portion of the placed in an unamendable appropria- with stuffing and all the trimmings, bill contains $13 million for approxi- tions conference report. but as we stand here today, few Sen- mately 2,000 school vouchers. Let’s look at the gun issue. As part of The White House’s approach to Con- ators know what it is stuffed with. a carefully negotiated agreement, the gress is my way or the highway. Well, What we do know is that this turkey C/J/S conferees agreed to drop language this turkey of a bill wandered out on has been specially carved for special in- that was in the House bill that would the highway and the rights of Senators terests. have reduced the amount of time that to amend legislation and the needs of The process for producing this bill the Justice Department has to retain the American people got crushed. was just one more example of the records from gun purchases from nine- Whenever the Senate Republican lead- President’s disrespect for the Congress. ty days to immediate destruction. Yet, ers decide to bring this turkey to the My way or the highway is the Presi- the White House said that was not sat- floor, the Senate will be asked to vote dent’s mantra. He expects the Congress isfactory. Agreements reached between on this as a conference report, with no to rubber stamp his budget. House and Senate Republicans and opportunity for amendment. Initially, the conference process was Let’s look at the overtime issue. This Democrats did not make the cut for bipartisan. Chairman STEVENS wanted omnibus appropriations bill does not this White House. A significant national security provi- to do the right thing in producing this include the overtime pay protections sion, a counter-terrorism initiative ap- bill. The ranking members on the seven included in the Senate Labor, Health proved by Congress, is being gutted by bills were at the table and worked out and Human Services and Education Ap- the Bush White House. Under current reasonable compromises on the bills. I propriations bill. That provision was law, the Bureau of Alcohol, Tobacco, commend Chairman TED STEVENS and included in that bill on a 54–45 vote in House Chairman BILL YOUNG for their the Senate in early September. The and Firearms can retain for 90 days the efforts to get this bill done in a bal- House of Representatives voted to in- records from gun purchases. This 90- anced way. struct its conferees to the Appropria- day period gives the law enforcement But when it came time to make the tions bill to accept the Senate lan- community the opportunity to find in- tough decisions, the leadership went guage on overtime on a vote of 221–203. dividuals purchasing weapons who behind closed doors with the White Yet the provision was dropped. It should simply not have access to those House at the table. And they served up should be clear to the working men and weapons. a turkey. women of this country that it was the It is a simple matter of law enforce- They took a balanced package that Republican leadership, at the behest of ment, of national security. Yet the was worked out by the conferees and at the White House, that killed the over- Bush White House wants no 90 day the eleventh hour insisted that they time pay protections in the omnibus cushion. This administration is insist- had to have it all. They insisted on appropriations bill despite a majority ing that any federal record associated changes that were not even con- of members in both the House and Sen- with the purchase of a weapon be de- templated when the bills were before ate voting to protect the overtime stroyed after just 1-day. This current the House and Senate. rights of American workers. As a re- 90 day cushion is not a delay on the ac- The President prevailed on every one sult, the White House is responsible for tual purchase. This is not a step that of his veto threats. the pay cut that 8 million American infringes on an American’s right to The overtime regulation prohibition, families will receive this holiday sea- bear arms. But it is a better protection which passed the Senate by vote of 54– son. for America’s national security. At a 45 was dropped; virtually identical On the overtime issue, Congressman time when we are in a heightened state Cuba sanction provisions that were in DELAY recently said, ‘‘We’re sticking of alert for terrorist attack, should we both the House and Senate versions of with the White House. We’re going to not provide law enforcement with more the Transportation/Treasury bill were win.’’ White House Chief of Staff An- than 24 hours to examine information dropped, as was a Cuba sanction provi- drew Card, on November 19, said the on weapons’ purchases? sion in the Senate version of the Agri- White House was unwilling to move This administration’s own Depart- culture bill; the 1 year limitation on away from its position of supporting ment of Justice’s Office of Legal Coun- the FCC media ownership rule was the Department of Labor’s proposed sel, in an October 1, 2001, legal opinion turned into a permanent cap at 39 per- rules. ‘‘We’ll stick to it,’’ he said. concluded that having data from the cent; the House language in the Trans- In September, Members of Congress gun transactions would aid in the in- portation/Treasury bill, blocking received a letter from several women’s vestigation of 9/11. But for the White OMB’s plan to contract out 400,000 Fed- organizations that concluded, ‘‘Mil- House, it is ‘‘my way or the highway.’’ eral workers was dropped. A bi-par- lions of working women would see their No cushion, no security. tisan compromise that was worked out pay reduced and their workdays Among the many outrages that I find by the conferees was rejected by the lengthened.’’ Well, as far as the Presi- with the substance of this Omnibus Ap- White House and what remains pro- dent is concerned it is my way or the propriations bill and the process in vides so many loopholes for OMB that highway and the Senate effort to pro- which it was developed, centers around little protection is provided for Federal tect American workers is gone. the language regarding President workers. Let’s look at the issue of the FCC Bush’s so-called ‘‘competitive This is a bad bill. media ownership cap. The original pro- sourcing’’ initiative. Competitive

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15935 sourcing is President Bush’s euphe- Believe it or not, the Bush adminis- to the President, the House is filing a mism for throwing a federal employee tration complained about provisions in turkey of a conference report. That is onto the unemployment line for the the Transportation/Treasury con- no way to govern. That is no way to purpose of contracting out his work to ference agreement that were identical serve the American people. a private company. to provisions that President Bush had I wish all Senators a happy Thanks- Division F of this Omnibus Appro- already signed into law on the Depart- giving and a happy Christmas. I hope priations Act includes the Transpor- ment of Defense Appropriations Act they stay safe for the holidays. tation, Treasury and General Govern- and the Department of Interior Appro- The PRESIDING OFFICER. The Sen- ment Appropriation bill. One will find priations Act. When one now reviews ator from Oregon. in that division of the bill, under sec- the Omnibus Appropriations bill, it is Mr. WYDEN. Mr. President, no one tion 647, a largely meaningless and in- clear that the Bush administration has deserves that holiday more than Sen- effective provision, that is rife with succeeded in neutering the original ator BYRD who constantly reminds us loopholes intended to mask the Bush conference agreement in this area. of what this wonderful, interesting dis- administration’s determined efforts to Never mind that we met in full and cussion is all about; that is, stand up fire thousands of Federal employees. open conference and agreed to a mean- for the Constitution, and stand up for This provision did not always read this ingful set of safeguards. Never mind the people we represent. To Senator way. Indeed, the conferees on the that all the members of the conference BYRD and his wonderful wife, we wish Transportation, Treasury and General committee signed on to that agree- an especially warm and cheerful holi- Government Appropriations bill met in ment—Democrats and Republicans day. open conference on Wednesday, Novem- alike. This White House would have Mr. BYRD. Mr. President, I thank ber 12th and it was anticipated at that none of it. So, working through the of- again the Senator. time that the conference agreement fices of the House and Senate Repub- would be sent to the President as a f lican leadership, the White House has freestanding bill. That conference was succeeded in undermining the provi- THANKFUL FOR THANKSGIVING chaired by the very able Subcommittee sions of the original conference agree- Mr. BYRD. Mr. President, Thanks- Chairman Senator SHELBY. I was a con- ment to the point of making them giving is one of the oldest and most feree on that bill and I was proud to cherished American holidays. Along sign the conference report when it was largely hollow. The Bush administra- with the Fourth of July, it is a unique- presented to me. tion has made a sham of our Federal The original conference agreement procurement process and a sham of the ly American holiday. I realize that reached by the members of that con- appropriations process. So, on the other countries and other cultures ference committee included a sound Transportation Appropriations bill, have their days of feasts, some even and balanced policy to govern the once again, the President says it is my have them in autumn to glorify their President’s competitive sourcing ini- way or the highway. harvests. But our Thanksgiving, our tiative. The conference agreement en- Finally, there is the matter of the day of thanks, is a truly American hol- sured that there would be uniform across the board cuts. The President iday. rules for this initiative across all agen- set an arbitrary topline for discre- Thanksgiving is our special day. It is cies of the Federal Government. It also tionary spending of $786 billion. In the a day on which we celebrate with Tur- ensured that the administration would President’s view, we can afford $1.7 key, gravy, dressing, cranberry sauce. have to demonstrate meaningful cost trillion dollars of tax cuts. When it You should try Erma’s cranberry savings to the taxpayers before con- comes to the Medicare bill, we can af- sauce; there is nothing like it any- tracting out federal work. The agree- ford $12 billion for subsidies for private where in the world, my wife’s cran- ment also provided Federal employees insurance companies. When it comes to berry sauce. Just to think of it, just to an opportunity to appeal a wrongful the Energy bill, we can afford over $25 think of it makes me want to go home contracting out decision. Under the billion of tax cuts and $5 billion of now—cranberry sauce, sweet potatoes, Bush administration’s regulations, mandatory spending for big energy cor- pumpkin pie. only private contractors have that ap- porations. But when it comes to discre- In addition to being a time of family peal right. tionary programs that help average togetherness, it is a day of football That tentative conference agreement Americans, the President insists on games, parades, and the beginning of was agreed to as a substitute for the cuts. A cut of 0.59 percent would reduce the Christmas holiday season—a little amendment that was included in the funding for No Child Left Behind pro- early for the Christmas holiday season, House bill that was championed by grams by over $73 million, resulting in but that is the way it is in this com- Congressman VAN HOLLEN of Maryland. 24,000 fewer kids being served by Title mercial time in which we live. The Bush White House made it quite I. Overall, the Title I Education for the But more profoundly, Thanksgiving clear to all the conferees that inclusion Disadvantaged program would be $6 bil- is a day for recognizing and celebrating of the Van Hollen amendment would lion below the level authorized by the our Pilgrim heritage—that small group result in the Transportation/Treasury No Child Left Behind Act that the of men and women who left their home- bill being vetoed. Ever since the day President signed in January of 2002. land, crossed a mighty ocean, and set- that conference concluded—Wednes- Another promise unfulfilled. tled in a wilderness so that they could day, November 12th—we have been The across-the-board cut would re- worship God as they chose. waiting for the conference agreement duce Head Start funding by $40 million, Before disembarking from the ship on the Transportation-Treasury bill to resulting in 5,500 fewer kids attending that brought them to these lands, the be filed in the House and Senate. In- Head Start. Veterans Medical Care famous and legendary Mayflower, this stead, what has happened has been an funding would be cut by $159 million, gallant group of early American set- unpardonable effort by the Bush White resulting in 26,500 fewer veterans re- tlers gathered together and they for- House to dismantle this agreement as ceiving medical care or 198,000 veterans mulated a government for their new it pertains to its beloved ‘‘competitive not getting the drugs they need. world—a government based on the sourcing’’ initiative. Funding for highway construction principle of self-rule. It was also a gov- Why did the administration not like would be cut by over $170 million. Well, ernment under God—a government this agreement? Because they do not for this President, it is my way or the under God. The document that created care to have to demonstrate to the tax- highway, but fewer Americans will be that new government, the Mayflower payers that any real dollar savings will building highways next year. Compact—we should have on our office accrue to the taxpayer when they con- Chairman STEVENS and I tried very walls. That government was antici- tract out Federal jobs; they do not hard to produce thirteen bills to send pated in the Mayflower Compact. The want Federal employees to have the to the President. I commend him for Compact read in part—listen to this: opportunity to appeal a decision that his effort to do so. But, the process was In the name of God, amen, we whose names was made in error; and they do not kidnapped by the White House and the are underwritten . . . Having undertaken for want a consistent and fair policy for all leadership. Instead of sending thirteen the Glory of God . . . Do by these Presents, Federal agencies in this area. fiscally responsible appropriations bills solemnly and mutually in the Presence of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15936 CONGRESSIONAL RECORD — SENATE November 25, 2003 God and one another, covenant and combine George Washington, the first President ognized and thanked Almighty God for ourselves together into a civil Body Politik. of the United States, the greatest of all their blessings. ... Presidents of these United States—who So in a year when we have been told How about that? That was the said in part when he wrote of the ‘‘day that it is wrong to post the Ten Com- Mayflower Compact. A copy of that set apart by the honorable Congress for mandments in our courthouses, and we Compact ought to hang or appear in public Thanksgiving and praise, and have Federal courts ruling that ours is every schoolroom in this country. I duty calling us devoutly to express our not a nation under God, it is well to re- know there are a few atheists around grateful acknowledgments to God for member how the Founders of our coun- who wouldn’t like it, but who cares the manifold blessings he has granted try, going back to the Pilgrims, con- that they wouldn’t like it? Maybe we us.’’ tinuing through the Continental Con- could win them over. That was George Washington. gresses and our foremost Presidents, But let us read it again. How wonder- Following the Revolutionary War, Washington and Lincoln, certainly con- ful it is to read that. I wonder if there the Continental Congress used Thanks- sidered ours to be a nation under God. would be those who would say it is un- giving as the day to give thanks to the I was a Member of the House of Rep- constitutional. proper authority for delivering the resentatives on June 7, 1954, when the In the name of God, amen, we whose names country from colonization and war into House voted to insert the words ‘‘under are underwritten . . . Having undertaken for independence and peace. God’’ in the Pledge of Allegiance to the the Glory of God . . . Do by these Presents, These were our forefathers—George flag. That was June 7, 1954. I was a solemnly and mutually in the Presence of Washington, of whom there is none Member of the House 1 year from that God and one another, covenant and combine greater—nay, of whom there is no peer, day, perhaps just coincidentally, when ourselves together into a civil Body Politik. George Washington. ... the House voted to place the words ‘‘In On October 11, 1782, Congress pro- God We Trust’’ on the currency and A year after landing—after months of claimed ‘‘the twenty-eight day of No- coins of these United States. June 7, privation, suffering, sickness, hunger, vember next, as a day of solemn 1955, that was. and death—these men and women set THANKSGIVING to God for all his There you have it, June 7, 1954, the aside time to express their gratitude to mercies.’’ words ‘‘under God’’ were inserted in the God for protecting them and for the Think about that. Pledge of Allegiance, and 1 year from preservation of their community. With On October 11, 1782, Congress pro- that day, June 7, 1955, they put the all the hardships and agony they had claimed ‘‘the twenty-eight day of No- words ‘‘In God We Trust’’ on the cur- endured, they still set aside time to vember next, as a day of solemn rency of our Nation. And there they thank God for being good to them. THANKSGIVING to God for all his are, the words ‘‘In God We Trust.’’ They were not only men and women of mercies: and they do further rec- Do you think we would ever have to great courage, they were also men and ommend to all ranks, to testify to remove those words from the walls of women of great religious faith. their gratitude to God for his good- this Chamber? Let us trust in God that Two years later, in 1623, the Pilgrims ness.’’ those words will never be removed. No made this day of thanks a tradition. I was just verifying from the fine court will ever think that it can re- The spirit of that glorious day, which man who serves on my staff that this move those words ‘‘In God We Trust’’ some people recognize as the first offi- coming Thanksgiving again falls on the from the walls of this Chamber. cial Thanksgiving, was captured in a calendar on the day of November 28. So our foremost Presidents, Wash- proclamation attributed to Governor The proclamation further stated: ington and Lincoln, certainly consid- Bradford that read: It being the indispensable duty of all Na- ered ours to be a nation under God. Inasmuch as the Great Father has given us tions, not only to offer up their supplication to ALMIGHTY GOD, the giver of all good, They used Thanksgiving, our special this year an abundant harvest of Indian corn, unique American holiday, as a time wheat, peas, squashes and garden vegetables, for his gracious assistance in a time of dis- and made the forest to abound with game tress, but also in a solemn and public man- and a reason to celebrate it. and the sea with fish and clams, and inas- ner to give him praise for his goodness in That acknowledgment of divine much as he has . . . spared us from the pes- general, and especially for great and signal blessing did not stop there. After 1863, tilence and granted us freedom to worship interpositions of his providence in their be- President Lincoln issued other Thanks- God according to the dictates of our own half. giving proclamations, and subsequent conscience, now I, your magistrate, do pro- Following the establishment of the Presidents who followed him, followed claim that all ye Pilgrims, with your wives new government of the United States his example. and ye little ones, do gather at ye meeting in 1789, President George Washington— In 1905, President Theodore Roosevelt house, on ye hill, between the hours of nine he is now President; the President is talked of how appropriate it was to and twelve in the daytime on Thursday, No- George Washington—issued the first vember ye 29th, of the year of our Lord one ‘‘set apart one day in each year for a thousand six hundred and twenty-three, and Presidential proclamation calling for special service of thanksgiving to the the third year since ye Pilgrims landed on ye ‘‘a day of public thanksgiving and Almighty.’’ ‘‘It is eminently fitting,’’ Plymouth Rock, there to listen to ye Pastor prayer.’’ He asked that the public ob- he proclaimed, ‘‘that once a year our and render Thanksgiving to ye all Almighty serve that day ‘‘by acknowledging with people should set apart a day of praise God for all his blessings. grateful heart the many favors of Al- and thanksgiving to the Giver of Good The tradition of Thanksgiving was mighty God.’’ At President Washing- . . . [therefore] I ask that through the reaffirmed again during the American ton’s request, Americans assembled in land the people gather in their homes Revolution. Following the Battle of churches on the appointed day and and places of worship and in rendering Saratoga in October 1777, the American thanked God for his blessings. thanks unto the Most High for the victory that marked a crucial turning Then during the awful Civil War, manifold blessings of the past year.’’ point in the war and the birth of our President Abraham Lincoln officially In his 1938 Thanksgiving proclama- Nation, the Continental Congress ap- asked the people of the United States tion, President Franklin Roosevelt proved a resolution designating a day to set aside the last Thursday of No- noted: of ‘‘Thanksgiving and praise.’’ George vember ‘‘as a day of Thanksgiving and [F]rom the earliest recorded history, Washington wrote of the day set praise to our beneficent Father.’’ ‘‘In Americans have thanked God for their bless- apart—these are words I quoted—the the midst of a civil war of unequal ings. In our deepest natures, in our very ‘‘day set apart by the honorable Con- magnitude and severity,’’ President souls, we, like all mankind, since the ear- gress for Public Thanksgiving and Lincoln proclaimed in 1863 that the liest origin of mankind, turned to God in praise, and duty calling us to devoutly country should take a day to acknowl- time of happiness. to express our grateful acknowledg- edge the gracious gifts of the most high Mr. President, 20 years later in his ments to God for the manifold bless- God. 1958 Thanksgiving proclamation, Presi- ings he has granted us.’’ Perhaps we have noticed that in dent Eisenhower proclaimed: This was George Washington, the Fa- every one of these proclamations, the Let us be especially grateful for the reli- ther of our Country, Commander of the Founders and the early leaders of our gious heritage bequeathed us by our fore- American Forces at Valley Forge— country carefully and purposefully rec- fathers, as exemplified by the Pilgrims, who,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15937 after the gathering of their first harvest, set Look at that man sitting in the The naysayers, principally on the apart a special day for rendering thanks to chair, presiding over this Senate. Yes, other side of the aisle, have been the God for the bounties vouchsafed to them. there he is. I can see his mouth is wa- ones saying we should not have cut In 1962, President John F. Kennedy tering like mine is watering. taxes. Taxes create deficits. On every- asked the American people to ‘‘renew Sweet potatoes, creamed onions. thing the President chose to ask us to the spirit of the Pilgrims at the first Well, I like my onions just plain on- do about the economy, the naysayers Thanksgiving, lonely in an inscrutable ions, not creamed, but that was on the said no. Now they have been proven wilderness, facing the dark unknown menu. Squash, pumpkin pie, plum pud- wrong and we have the second basket with a faith borne of their dedication ding, mince pie, milk, and coffee. on the floor in the nature of great big to God and a fortitude drawn from Does that sound familiar? How about positive news for the American people. their sense that all men were broth- it, does it sound familiar? Even more important to the future, ers.’’ I hope my wife Erma is watching confidence among the American con- So it is that we celebrate this unique right at this moment because nobody sumers soared. They know when things American holiday, a day devoted to in my lifetime can spread a table like are going well. It soared to almost 92 family, to country, and to God. It al- my wife Erma. She has been spreading percent, a full 10 percent gain from last ways has been. I pray it always will be that table in my family now for 66 month. We remember when we were all a day for giving thanks. With the tur- years, bless her heart. worried because it was extremely low, moil of the past year with our sons and But does it sound familiar? It sure into 60 percent, and the naysayers were daughters in far away lands putting sounds like the 2003 Thanksgiving saying: It is all President Bush’s fault. their lives in danger, we still have so menu at the Byrd house. Boy, how I Well, if that is the case—it is 92 per- much for which to be thankful. look forward to it. I am getting hungry cent now—is that not his fault? Or is We can be thankful for the heritage just thinking about it. I am getting that not to his credit? I would think so. of liberty bequeathed to us by our an- hungry. How about that? The kind of extraordinary growth I cestors, and from whom we are en- I hope that my listeners are getting am talking about obviously cannot trusted to preserve for future genera- hungry also, and thinking about the continue for years and years, perhaps tions of Americans. first Thanksgiving. The first Thanks- not even for very many quarters, but it Mr. President, we can be thankful for giving, how would you have liked to does mean that most estimates of the wisdom and the foresight of our have sat with that incredible, intrepid growth for the year 2004 will prove to Founding Fathers, who bequeathed to band of men and women? be pessimistic. They will prove to be So I am going to stop talking now, us a form of government unique in his- too low. If we get a solid 3 and 31⁄2 per- and I am going to head home, before tory, with its three strong pillars of cent growth rate each of the next quar- too long, for our great Thanksgiving the executive, the legislative, and the ters for an entire fiscal year, then we meal with my wife Erma and our two judicial branches, each balanced and will see Federal deficits also decline. daughters and their husbands and our checked one against the other. Employment will increase and invest- five grandchildren, their spouses, and Like President Washington, we can ments will improve. our three great-grandchildren and our be thankful for ‘‘the many favors of Al- The naysayers will be stuck. How little dog, Trouble. mighty God,’’ including a government will they answer all of these items of Happy Thanksgiving, everyone. that ensures our ‘‘safety and happi- good news when employment starts ness.’’ Happy Thanksgiving. The PRESIDING OFFICER. The Sen- coming down, which it already has but And like President Lincoln, we can ator from New Mexico. will come down more; when Federal be thankful for the ‘‘gracious gifts of Mr. DOMENICI. Mr. President, I note deficits, instead of going up, which the most high God, who, while dealing the presence of Senator BURNS. Does he they run around talking about Presi- with us in anger for our sins, hath nev- wish to speak? I will tell him how long dent Bush created, when everybody ertheless remembered mercy.’’ I will be. knows we have a huge expenditure for While we are saddened that there are Mr. BURNS. Mr. President, not on our military men and equipment be- so many young American men and the Senator’s time. cause we have been in a series of war- women in uniform who will not be able Mr. DOMENICI. I will only be a few like efforts from Somalia, Afghanistan, to be with their families on this holi- moments. and now this one. Nothing can be done day, we can be thankful for their cour- f without spending a lot of money. But age, thankful for their devotion to we are going to see the deficit come duty, and thankful for their service to GREAT ECONOMIC NEWS down if these growth numbers continue our Nation. Mr. DOMENICI. Mr. President, eco- up. We can be thankful for those men nomic growth is the lifeblood of this Yes, we have all been worried about and women who, 383 years ago, had the country. Economic growth is what gets American business: Where is it going? courage, the faith, and the devotion to rid of deficits. Economic growth is First, we have to give American busi- our Almighty Father, to God, to em- what provides jobs. Economic growth is ness some credit. I used the words ‘‘re- bark upon the most difficult and dan- what causes investments. Economic silient economy’’ awhile ago. When gerous of journeys and face the darkest growth is what gives our people hope. there is a recession, American business unknown so that they, and we, could Today, the Government just released takes action. They are not like us. worship freely. news that our economy grew by an They do not have all of the money to We can be thankful, can we not, for amazing 8.2 percent last quarter, up spend. They have to stop spending. the abundance of America, an abun- from an earlier estimate in the same They have to make changes. dance that includes an annual produc- quarter of 7.2 percent. I recall when it They made changes. Guess what hap- tion of millions of turkeys, millions of went up 7.2 percent. We were all say- pened. Productivity went through the pounds of cranberries and sweet pota- ing: Isn’t that fantastic? The economy roof, and enormous productivity toes and pumpkins. is really booming. growth normally is accompanied by Mr. President, a few minutes ago, I Well, it turns out there is always an great GDP growth, and that has hap- read from President Lincoln’s Thanks- adjustment, and they made the adjust- pened. giving Proclamation of 1863. Permit me ment. Frequently, the adjustment is Now, it seems as if productivity now to read from the 1863 White House downward. In this case, the adjustment growth is probably going to stop. They Thanksgiving menu. is upward, an astronomical 8.2 percent have taken about as much as they can According to that menu, in 1863, the growth in the domestic product last out of their businesses, and now we are White House Thanksgiving dinner con- quarter. This means solid growth this going to have the growth that will fol- sisted of the following, and I quote quarter and into next year. This is a low it, the job increases that will fol- from that menu: cranberry juice; that tribute to the resilient American econ- low it, and the deficits that will dimin- is good. How sweet it is, cranberry omy and to the fiscal policy pursued by ish. juice; roast turkey with dressing, cran- the President and the Republican-led I close where I started, by saying it berry sauce. Congress. seems as if good news comes in bushels.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15938 CONGRESSIONAL RECORD — SENATE November 25, 2003 Good news comes not one thing at a order to induce the recipients to view the mes- tity or a link to the website of a commercial en- time but two things and maybe three sages. tity in an electronic mail message does not, by at a time, and the two pieces of great (9) While some senders of commercial elec- itself, cause such message to be treated as a tronic mail messages provide simple and reliable news are before us today. Let us hope commercial electronic mail message for purposes ways for recipients to reject (or ‘‘opt-out’’ of) re- of this Act if the contents or circumstances of there is more to come because, clearly, ceipt of commercial electronic mail from such the message indicate a primary purpose other we are on the path upward. senders in the future, other senders provide no than commercial advertisement or promotion of I yield the floor. such ‘‘opt-out’’ mechanism, or refuse to honor a commercial product or service. f the requests of recipients not to receive elec- (3) COMMISSION.—The term ‘‘Commission’’ tronic mail from such senders in the future, or means the Federal Trade Commission. CAN-SPAM ACT OF 2003 both. (4) DOMAIN NAME.—The term ‘‘domain name’’ Mr. BURNS. Mr. President, as my (10) Many senders of bulk unsolicited commer- means any alphanumeric designation which is cial electronic mail use computer programs to registered with or assigned by any domain name good friend from New Mexico was gather large numbers of electronic mail address- registrar, domain name registry, or other do- pointing out some of the good news, I es on an automated basis from Internet websites main name registration authority as part of an have some more. I ask that the Chair or online services where users must post their electronic address on the Internet. lay before the Senate a message from addresses in order to make full use of the (5) ELECTRONIC MAIL ADDRESS.—The term the House on S. 877. website or service. ‘‘electronic mail address’’ means a destination, The PRESIDING OFFICER laid be- (11) Many States have enacted legislation in- commonly expressed as a string of characters, fore the Senate the following message: tended to regulate or reduce unsolicited commer- consisting of a unique user name or mailbox cial electronic mail, but these statutes impose (commonly referred to as the ‘‘local part’’) and S. 877 different standards and requirements. As a re- a reference to an Internet domain (commonly re- Resolved, That the bill from the Senate (S. sult, they do not appear to have been successful ferred to as the ‘‘domain part’’), whether or not 877) entitled ‘‘An Act to regulate interstate in addressing the problems associated with un- displayed, to which an electronic mail message commerce by imposing limitations and pen- solicited commercial electronic mail, in part be- can be sent or delivered. alties on the transmission of unsolicited cause, since an electronic mail address does not (6) ELECTRONIC MAIL MESSAGE.—The term commercial electronic mail via the Inter- specify a geographic location, it can be ex- ‘‘electronic mail message’’ means a message sent net’’, do pass with the following amendment: tremely difficult for law-abiding businesses to to a unique electronic mail address. Strike out all after the enacting clause and know with which of these disparate statutes (7) FTC ACT.—The term ‘‘FTC Act’’ means the insert: they are required to comply. Federal Trade Commission Act (15 U.S.C. 41 et SECTION 1. SHORT TITLE. (12) The problems associated with the rapid seq.). This Act may be cited as the ‘‘Controlling the growth and abuse of unsolicited commercial (8) HEADER INFORMATION.—The term ‘‘header Assault of Non-Solicited Pornography and Mar- electronic mail cannot be solved by Federal leg- information’’ means the source, destination, and keting Act of 2003’’, or the ‘‘CAN-SPAM Act of islation alone. The development and adoption of routing information attached to an electronic 2003’’. technological approaches and the pursuit of co- mail message, including the originating domain operative efforts with other countries will be name and originating electronic mail address, SEC. 2. CONGRESSIONAL FINDINGS AND POLICY. necessary as well. and any other information that appears in the (a) FINDINGS.—The Congress finds the fol- (b) CONGRESSIONAL DETERMINATION OF PUB- line identifying, or purporting to identify, a per- lowing: LIC POLICY.—On the basis of the findings in son initiating the message. (1) Electronic mail has become an extremely subsection (a), the Congress determines that— (9) INITIATE.—The term ‘‘initiate’’, when used important and popular means of communica- (1) there is a substantial government interest with respect to a commercial electronic mail mes- tion, relied on by millions of Americans on a in regulation of commercial electronic mail on a sage, means to originate or transmit such mes- daily basis for personal and commercial pur- nationwide basis; sage or to procure the origination or trans- poses. Its low cost and global reach make it ex- (2) senders of commercial electronic mail mission of such message, but shall not include tremely convenient and efficient, and offer should not mislead recipients as to the source or actions that constitute routine conveyance of unique opportunities for the development and content of such mail; and such message. For purposes of this paragraph, growth of frictionless commerce. (3) recipients of commercial electronic mail more than 1 person may be considered to have (2) The convenience and efficiency of elec- have a right to decline to receive additional initiated a message. tronic mail are threatened by the extremely commercial electronic mail from the same source. (10) INTERNET.—The term ‘‘Internet’’ has the rapid growth in the volume of unsolicited com- SEC. 3. DEFINITIONS. meaning given that term in the Internet Tax mercial electronic mail. Unsolicited commercial In this Act: Freedom Act (47 U.S.C. 151 note). electronic mail is currently estimated to account (1) AFFIRMATIVE CONSENT.—The term ‘‘affirm- (11) INTERNET ACCESS SERVICE.—The term for over half of all electronic mail traffic, up ative consent’’, when used with respect to a ‘‘Internet access service’’ has the meaning given from an estimated 7 percent in 2001, and the vol- commercial electronic mail message, means that term in section 231(e)(4) of the Communica- ume continues to rise. Most of these messages that— tions Act of 1934 (47 U.S.C. 231(e)(4)). are fraudulent or deceptive in one or more re- (A) the recipient expressly consented to re- (12) PROCURE.—The term ‘‘procure’’, when spects. ceive the message, either in response to a clear used with respect to the initiation of a commer- (3) The receipt of unsolicited commercial elec- and conspicuous request for such consent or at cial electronic mail message, means intentionally tronic mail may result in costs to recipients who the recipient’s own initiative; and to pay or provide other consideration to, or in- cannot refuse to accept such mail and who (B) if the message is from a party other than duce, another person to initiate such a message incur costs for the storage of such mail, or for the party to which the recipient communicated on one’s behalf. the time spent accessing, reviewing, and dis- such consent, the recipient was given clear and (13) PROTECTED COMPUTER.—The term ‘‘pro- carding such mail, or for both. conspicuous notice at the time the consent was tected computer’’ has the meaning given that (4) The receipt of a large number of unwanted communicated that the recipient’s electronic term in section 1030(e)(2)(B) of title 18, United messages also decreases the convenience of elec- mail address could be transferred to such other States Code. tronic mail and creates a risk that wanted elec- party for the purpose of initiating commercial (14) RECIPIENT.—The term ‘‘recipient’’, when tronic mail messages, both commercial and non- electronic mail messages. used with respect to a commercial electronic commercial, will be lost, overlooked, or dis- (2) COMMERCIAL ELECTRONIC MAIL MESSAGE.— mail message, means an authorized user of the carded amidst the larger volume of unwanted (A) IN GENERAL.—The term ‘‘commercial elec- electronic mail address to which the message messages, thus reducing the reliability and use- tronic mail message’’ means any electronic mail was sent or delivered. If a recipient of a commer- fulness of electronic mail to the recipient. message the primary purpose of which is the cial electronic mail message has 1 or more elec- (5) Some commercial electronic mail contains commercial advertisement or promotion of a tronic mail addresses in addition to the address material that many recipients may consider vul- commercial product or service (including content to which the message was sent or delivered, the gar or pornographic in nature. on an Internet website operated for a commer- recipient shall be treated as a separate recipient (6) The growth in unsolicited commercial elec- cial purpose). with respect to each such address. If an elec- tronic mail imposes significant monetary costs (B) TRANSACTIONAL OR RELATIONSHIP MES- tronic mail address is reassigned to a new user, on providers of Internet access services, busi- SAGES.—The term ‘‘commercial electronic mail the new user shall not be treated as a recipient nesses, and educational and nonprofit institu- message’’ does not include a transactional or re- of any commercial electronic mail message sent tions that carry and receive such mail, as there lationship message. or delivered to that address before it was reas- is a finite volume of mail that such providers, (C) REGULATIONS REGARDING PRIMARY PUR- signed. businesses, and institutions can handle without POSE.—Not later than 12 months after the date (15) ROUTINE CONVEYANCE.—The term ‘‘rou- further investment in infrastructure. of the enactment of this Act, the Commission tine conveyance’’ means the transmission, rout- (7) Many senders of unsolicited commercial shall issue regulations pursuant to section 13 ing, relaying, handling, or storing, through an electronic mail purposefully disguise the source further defining the relevant criteria to facili- automatic technical process, of an electronic of such mail. tate the determination of the primary purpose of mail message for which another person has (8) Many senders of unsolicited commercial an electronic mail message. identified the recipients or provided the recipi- electronic mail purposefully include misleading (D) REFERENCE TO COMPANY OR WEBSITE.— ent addresses. information in the message’s subject lines in The inclusion of a reference to a commercial en- (16) SENDER.—

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(A) IN GENERAL.—Except as provided in sub- multiple commercial electronic mail messages 10,000 electronic mail messages during a 1-year paragraph (B), the term ‘‘sender’’ means a per- from any combination of such accounts or do- period. son who initiates such a message and whose main names, or ‘‘(4) OTHER TERMS.—Any other term has the product, service, or Internet web site is adver- ‘‘(5) falsely represents oneself to be the reg- meaning given that term by section 3 of the tised or promoted by the message. istrant or the legitimate successor in interest to CAN-SPAM Act of 2003.’’. (B) SEPARATE LINES OF BUSINESS OR DIVI- the registrant of 5 or more Internet protocol ad- (2) CONFORMING AMENDMENT.—The chapter SIONS.—If an entity operates through separate dresses, and intentionally initiates the trans- analysis for chapter 47 of title 18, United States lines of business or divisions and holds itself out mission of multiple commercial electronic mail Code, is amended by adding at the end the fol- to the recipient of the message, in complying messages from such addresses, lowing: with the requirement under section 5(a)(5)(B), or conspires to do so, shall be punished as pro- ‘‘Sec. as that particular line of business or division vided in subsection (b). ‘‘1037. Fraud and related activity in connection rather than as the entity of which such line of ‘‘(b) PENALTIES.—The punishment for an of- with electronic mail.’’. business or division is a part, then the line of fense under subsection (a) is— (b) UNITED STATES SENTENCING COMMISSION.— business or the division shall be treated as the ‘‘(1) a fine under this title, imprisonment for (1) DIRECTIVE.—Pursuant to its authority not more than 5 years, or both, if— sender of such message for purposes of this Act. under section 994(p) of title 28, United States ‘‘(A) the offense is committed in furtherance (17) TRANSACTIONAL OR RELATIONSHIP MES- Code, and in accordance with this section, the of any felony under the laws of the United SAGE.— United States Sentencing Commission shall re- (A) IN GENERAL.—The term ‘‘transactional or States or of any State; or view and, as appropriate, amend the sentencing relationship message’’ means an electronic mail ‘‘(B) the defendant has previously been con- guidelines and policy statements to provide ap- message the primary purpose of which is— victed under this section or section 1030, or propriate penalties for violations of section 1037 (i) to facilitate, complete, or confirm a com- under the law of any State for conduct involv- of title 18, United States Code, as added by this mercial transaction that the recipient has pre- ing the transmission of multiple commercial elec- section, and other offenses that may be facili- viously agreed to enter into with the sender; tronic mail messages or unauthorized access to a tated by the sending of large quantities of unso- (ii) to provide warranty information, product computer system; licited electronic mail. recall information, or safety or security informa- ‘‘(2) a fine under this title, imprisonment for (2) REQUIREMENTS.—In carrying out this sub- tion with respect to a commercial product or not more than 3 years, or both, if— section, the Sentencing Commission shall con- service used or purchased by the recipient; ‘‘(A) the offense is an offense under sub- sider providing sentencing enhancements for— (iii) to provide— section (a)(1); (A) those convicted under section 1037 of title (I) notification concerning a change in the ‘‘(B) the offense is an offense under sub- 18, United States Code, who— terms or features of; section (a)(4) and involved 20 or more falsified (i) obtained electronic mail addresses through (II) notification of a change in the recipient’s electronic mail or online user account registra- improper means, including— standing or status with respect to; or tions, or 10 or more falsified domain name reg- (I) harvesting electronic mail addresses of the (III) at regular periodic intervals, account istrations; users of a website, proprietary service, or other balance information or other type of account ‘‘(C) the volume of electronic mail messages online public forum operated by another person, statement with respect to, transmitted in furtherance of the offense exceed- without the authorization of such person; and a subscription, membership, account, loan, or ed 2,500 during any 24-hour period, 25,000 dur- ing any 30-day period, or 250,000 during any 1- (II) randomly generating electronic mail ad- comparable ongoing commercial relationship in- dresses by computer; or volving the ongoing purchase or use by the re- year period; ‘‘(D) the offense caused loss to 1 or more per- (ii) knew that the commercial electronic mail cipient of products or services offered by the messages involved in the offense contained or sender; sons aggregating $5,000 or more in value during any 1-year period; advertised an Internet domain for which the (iv) to provide information directly related to registrant of the domain had provided false reg- an employment relationship or related benefit ‘‘(E) as a result of the offense any individual committing the offense obtained anything of istration information; and plan in which the recipient is currently in- (B) those convicted of other offenses, includ- volved, participating, or enrolled; or value aggregating $5,000 or more during any 1- year period; or ing offenses involving fraud, identity theft, ob- (v) to deliver goods or services, including scenity, child pornography, and the sexual ex- product updates or upgrades, that the recipient ‘‘(F) the offense was undertaken by the de- fendant in concert with 3 or more other persons ploitation of children, if such offenses involved is entitled to receive under the terms of a trans- the sending of large quantities of electronic action that the recipient has previously agreed with respect to whom the defendant occupied a position of organizer or leader; and mail. to enter into with the sender. (c) SENSE OF CONGRESS.—It is the sense of (B) MODIFICATION OF DEFINITION.—The Com- ‘‘(3) a fine under this title or imprisonment for not more than 1 year, or both, in any other case. Congress that— mission by regulation pursuant to section 13 (1) Spam has become the method of choice for may modify the definition in subparagraph (A) ‘‘(c) FORFEITURE.— ‘‘(1) IN GENERAL.—The court, in imposing sen- those who distribute pornography, perpetrate to expand or contract the categories of messages fraudulent schemes, and introduce viruses, that are treated as transactional or relationship tence on a person who is convicted of an offense under this section, shall order that the defend- worms, and Trojan horses into personal and messages for purposes of this Act to the extent business computer systems; and that such modification is necessary to accommo- ant forfeit to the United States— ‘‘(A) any property, real or personal, consti- (2) the Department of Justice should use all date changes in electronic mail technology or tuting or traceable to gross proceeds obtained existing law enforcement tools to investigate and practices and accomplish the purposes of this from such offense; and prosecute those who send bulk commercial e- Act. ‘‘(B) any equipment, software, or other tech- mail to facilitate the commission of Federal SEC. 4. PROHIBITION AGAINST PREDATORY AND nology used or intended to be used to commit or crimes, including the tools contained in chapters ABUSIVE COMMERCIAL E-MAIL. to facilitate the commission of such offense. 47 and 63 of title 18, United States Code (relat- (a) OFFENSE.— ‘‘(2) PROCEDURES.—The procedures set forth ing to fraud and false statements); chapter 71 of (1) IN GENERAL.—Chapter 47 of title 18, United in section 413 of the Controlled Substances Act title 18, United States Code (relating to obscen- States Code, is amended by adding at the end (21 U.S.C. 853), other than subsection (d) of that ity); chapter 110 of title 18, United States Code the following new section: section, and in Rule 32.2 of the Federal Rules of (relating to the sexual exploitation of children); ‘‘§ 1037. Fraud and related activity in connec- Criminal Procedure, shall apply to all stages of and chapter 95 of title 18, United States Code tion with electronic mail a criminal forfeiture proceeding under this sec- (relating to racketeering), as appropriate. ‘‘(a) IN GENERAL.—Whoever, in or affecting tion. SEC. 5. OTHER PROTECTIONS FOR USERS OF interstate or foreign commerce, knowingly— ‘‘(d) DEFINITIONS.—In this section: COMMERCIAL ELECTRONIC MAIL. ‘‘(1) accesses a protected computer without ‘‘(1) LOSS.—The term ‘loss’ has the meaning (a) REQUIREMENTS FOR TRANSMISSION OF MES- authorization, and intentionally initiates the given that term in section 1030(e) of this title. SAGES.— transmission of multiple commercial electronic ‘‘(2) MATERIALLY.—For purposes of para- (1) PROHIBITION OF FALSE OR MISLEADING mail messages from or through such computer, graphs (3) and (4) of subsection (a), header in- TRANSMISSION INFORMATION.—It is unlawful for ‘‘(2) uses a protected computer to relay or re- formation or registration information is materi- any person to initiate the transmission, to a pro- transmit multiple commercial electronic mail ally misleading if it is altered or concealed in a tected computer, of a commercial electronic mail messages, with the intent to deceive or mislead manner that would impair the ability of a re- message, or a transactional or relationship mes- recipients, or any Internet access service, as to cipient of the message, an Internet access serv- sage, that contains, or is accompanied by, head- the origin of such messages, ice processing the message on behalf of a recipi- er information that is materially false or materi- ‘‘(3) materially falsifies header information in ent, a person alleging a violation of this section, ally misleading. For purposes of this para- multiple commercial electronic mail messages or a law enforcement agency to identify, locate, graph— and intentionally initiates the transmission of or respond to a person who initiated the elec- (A) header information that is technically ac- such messages, tronic mail message or to investigate the alleged curate but includes an originating electronic ‘‘(4) registers, using information that materi- violation. mail address, domain name, or Internet protocol ally falsifies the identity of the actual reg- ‘‘(3) MULTIPLE.—The term ‘multiple’ means address the access to which for purposes of initi- istrant, for 5 or more electronic mail accounts or more than 100 electronic mail messages during a ating the message was obtained by means of online user accounts or 2 or more domain names, 24-hour period, more than 1,000 electronic mail false or fraudulent pretenses or representations and intentionally initiates the transmission of messages during a 30-day period, or more than shall be considered materially misleading;

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00059 Fmt 0624 Sfmt 6333 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15940 CONGRESSIONAL RECORD — SENATE November 25, 2003 (B) a ‘‘from’’ line (the line identifying or pur- the recipient, through the provision or selection generates possible electronic mail addresses by porting to identify a person initiating the mes- of addresses to which the message will be sent, combining names, letters, or numbers into nu- sage) that accurately identifies any person who of a commercial electronic mail message with ac- merous permutations. initiated the message shall not be considered tual knowledge, or knowledge fairly implied on (B) DISCLAIMER.—Nothing in this paragraph materially false or materially misleading; and the basis of objective circumstances, that such creates an ownership or proprietary interest in (C) header information shall be considered message would violate clause (i) or (ii); or such electronic mail addresses. materially misleading if it fails to identify accu- (iv) for the sender, or any other person who (2) AUTOMATED CREATION OF MULTIPLE ELEC- rately a protected computer used to initiate the knows that the recipient has made such a re- TRONIC MAIL ACCOUNTS.—It is unlawful for any message because the person initiating the mes- quest, to sell, lease, exchange, or otherwise person to use scripts or other automated means sage knowingly uses another protected computer transfer or release the electronic mail address of to register for multiple electronic mail accounts to relay or retransmit the message for purposes the recipient (including through any trans- or online user accounts from which to transmit of disguising its origin. action or other transfer involving mailing lists to a protected computer, or enable another per- (2) PROHIBITION OF DECEPTIVE SUBJECT HEAD- bearing the electronic mail address of the recipi- son to transmit to a protected computer, a com- INGS.—It is unlawful for any person to initiate ent) for any purpose other than compliance mercial electronic mail message that is unlawful the transmission to a protected computer of a with this Act or other provision of law, except under subsection (a). commercial electronic mail message if such per- where the recipient has given express consent. (3) RELAY OR RETRANSMISSION THROUGH UNAU- son has actual knowledge, or knowledge fairly (B) OPT BACK IN.—A prohibition in clause (i), THORIZED ACCESS.—It is unlawful for any per- implied on the basis of objective circumstances, (ii), or (iii) of subparagraph (A) does not apply son knowingly to relay or retransmit a commer- that a subject heading of the message would be if there is affirmative consent by the recipient cial electronic mail message that is unlawful likely to mislead a recipient, acting reasonably subsequent to the request under subparagraph under subsection (a) from a protected computer under the circumstances, about a material fact (A). or computer network that such person has regarding the contents or subject matter of the (5) INCLUSION OF IDENTIFIER, OPT-OUT, AND accessed without authorization. PHYSICAL ADDRESS IN COMMERCIAL ELECTRONIC message (consistent with the criteria are used in (c) SUPPLEMENTARY RULEMAKING AUTHOR- MAIL.— enforcement of section 5 of the Federal Trade ITY.—The Commission shall by rule, pursuant to (A) It is unlawful for any person to initiate Commission Act (15 U.S.C. 45)). section 13— the transmission of any commercial electronic (3) INCLUSION OF RETURN ADDRESS OR COM- (1) modify the 10-business-day period under mail message to a protected computer unless the PARABLE MECHANISM IN COMMERCIAL ELEC- subsection (a)(4)(A) or subsection (a)(4)(B), or message provides— TRONIC MAIL.— both, if the Commission determines that a dif- (i) clear and conspicuous identification that (A) IN GENERAL.—It is unlawful for any per- ferent period would be more reasonable after the message is an advertisement or solicitation; son to initiate the transmission to a protected (ii) clear and conspicuous notice of the oppor- taking into account— computer of a commercial electronic mail mes- tunity under paragraph (3) to decline to receive (A) the purposes of subsection (a); (B) the interests of recipients of commercial sage that does not contain a functioning return further commercial electronic mail messages electronic mail; and electronic mail address or other Internet-based from the sender; and mechanism, clearly and conspicuously dis- (iii) a valid physical postal address of the (C) the burdens imposed on senders of lawful played, that— sender. commercial electronic mail; and (i) a recipient may use to submit, in a manner (B) Subparagraph (A)(i) does not apply to the (2) specify additional activities or practices to specified in the message, a reply electronic mail transmission of a commercial electronic mail if which subsection (b) applies if the Commission message or other form of Internet-based commu- the recipient has given prior affirmative consent determines that those activities or practices are nication requesting not to receive future com- to receipt of the message. contributing substantially to the proliferation of mercial electronic mail messages from that send- (6) SUBSEQUENT AFFIRMATIVE CONSENT.—The commercial electronic mail messages that are un- er at the electronic mail address where the mes- prohibitions in subparagraphs (A), (B), and (C) lawful under subsection (a). sage was received; and do not apply to the initiation of transmission of (d) REQUIREMENT TO PLACE WARNING LABELS (ii) remains capable of receiving such mes- commercial electronic mail to a recipient who, ON COMMERCIAL ELECTRONIC MAIL CONTAINING sages or communications for no less than 30 subsequent to a request using a mechanism pro- SEXUALLY ORIENTED MATERIAL.— days after the transmission of the original mes- vided pursuant to paragraph (3) not to receive (1) IN GENERAL.—No person may initiate in or sage. commercial electronic mail messages from the affecting interstate commerce the transmission, (B) MORE DETAILED OPTIONS POSSIBLE.—The sender, has granted affirmative consent to the to a protected computer, of any commercial elec- person initiating a commercial electronic mail sender to receive such messages. tronic mail message that includes sexually ori- message may comply with subparagraph (A)(i) (7) MATERIALLY.—For purposes of paragraph ented material and— by providing the recipient a list or menu from (1)(A), header information shall be considered to (A) fail to include in subject heading for the which the recipient may choose the specific be materially misleading if it is altered or con- electronic mail message the marks or notices pre- types of commercial electronic mail messages the cealed in a manner that would impair the abil- scribed by the Commission under this sub- recipient wants to receive or does not want to ity of an Internet access service processing the section; or receive from the sender, if the list or menu in- message on behalf of a recipient, a person alleg- (B) fail to provide that the matter in the mes- cludes an option under which the recipient may ing a violation of this section, or a law enforce- sage that is initially viewable to the recipient, choose not to receive any commercial electronic ment agency to identify, locate, or respond to when the message is opened by any recipient mail messages from the sender. the person who initiated the electronic mail mes- and absent any further actions by the recipient, (C) TEMPORARY INABILITY TO RECEIVE MES- sage or to investigate the alleged violation, or includes only— SAGES OR PROCESS REQUESTS.—A return elec- the ability of a recipient of the message to re- (i) to the extent required or authorized pursu- tronic mail address or other mechanism does not spond to a person who initiated the electronic ant to paragraph (2), any such marks or notices; fail to satisfy the requirements of subparagraph message. (ii) the information required to be included in (A) if it is unexpectedly and temporarily unable (b) AGGRAVATED VIOLATIONS RELATING TO the message pursuant to subsection (a)(5); and to receive messages or process requests due to a COMMERCIAL ELECTRONIC MAIL.— (iii) instructions on how to access, or a mech- technical problem beyond the control of the (1) ADDRESS HARVESTING AND DICTIONARY AT- anism to access, the sexually oriented material. sender if the problem is corrected within a rea- TACKS.— (2) PRIOR AFFIRMATIVE CONSENT.—Paragraph sonable time period. (A) IN GENERAL.—It is unlawful for any per- (1) does not apply to the transmission of an elec- (4) PROHIBITION OF TRANSMISSION OF COMMER- son to initiate the transmission, to a protected tronic mail message if the recipient has given CIAL ELECTRONIC MAIL AFTER OBJECTION.— computer, of a commercial electronic mail mes- prior affirmative consent to receipt of the mes- (A) IN GENERAL.—If a recipient makes a re- sage that is unlawful under subsection (a), or to sage. quest using a mechanism provided pursuant to assist in the origination of such message (3) PRESCRIPTION OF MARKS AND NOTICES.— paragraph (3) not to receive some or any com- through the provision or selection of addresses Not later than 120 days after the date of the en- mercial electronic mail messages from such send- to which the message will be transmitted, if such actment of this Act, the Commission in consulta- er, then it is unlawful— person had actual knowledge, or knowledge tion with the Attorney General shall prescribe (i) for the sender to initiate the transmission fairly implied on the basis of objective cir- clearly identifiable marks or notices to be in- to the recipient, more than 10 business days cumstances, that— cluded in or associated with commercial elec- after the receipt of such request, of a commercial (i) the electronic mail address of the recipient tronic mail that contains sexually oriented ma- electronic mail message that falls within the was obtained using an automated means from terial, in order to inform the recipient of that scope of the request; an Internet website or proprietary online service fact and to facilitate filtering of such electronic (ii) for any person acting on behalf of the operated by another person, and such website or mail. The Commission shall publish in the Fed- sender to initiate the transmission to the recipi- online service included, at the time the address eral Register and provide notice to the public of ent, more than 10 business days after the receipt was obtained, a notice stating that the operator the marks or notices prescribed under this para- of such request, of a commercial electronic mail of such website or online service will not give, graph. message with actual knowledge, or knowledge sell, or otherwise transfer addresses maintained (4) DEFINITION.—In this subsection, the term fairly implied on the basis of objective cir- by such website or online service to any other ‘‘sexually oriented material’’ means any mate- cumstances, that such message falls within the party for the purposes of initiating, or enabling rial that depicts sexually explicit conduct (as scope of the request; others to initiate, electronic mail messages; or that term is defined in section 2256 of title 18, (iii) for any person acting on behalf of the (ii) the electronic mail address of the recipient United States Code), unless the depiction con- sender to assist in initiating the transmission to was obtained using an automated means that stitutes a small and insignificant part of the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00060 Fmt 0624 Sfmt 6333 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15941 whole, the remainder of which is not primarily (C) banks insured by the Federal Deposit In- section to enforce compliance, through an order devoted to sexual matters. surance Corporation (other than members of the to cease and desist or an injunction, with sec- (4) PENALTY.—Whoever knowingly violates Federal Reserve System) insured State branches tion 5(a)(2), subparagraph (B) or (C) of section paragraph (1) shall be fined under title 18, of foreign banks, by the Board of Directors of 5(a)(4), or section 5(b)(1)(A), neither the Com- United States Code, or imprisoned not more the Federal Deposit Insurance Corporation; and mission nor the Federal Communications Com- than 5 years, or both. (D) savings associations the deposits of which mission shall be required to allege or prove the SEC. 6. BUSINESSES KNOWINGLY PROMOTED BY are insured by the Federal Deposit Insurance state of mind required by such section or sub- ELECTRONIC MAIL WITH FALSE OR Corporation, by the Director of the Office of paragraph. MISLEADING TRANSMISSION INFOR- Thrift Supervision; (f) ENFORCEMENT BY STATES.— MATION. (2) under the Federal Credit Union Act (12 (1) CIVIL ACTION.—In any case in which the (a) IN GENERAL.—It is unlawful for a person U.S.C. 1751 et seq.) by the Board of the National attorney general of a State, or an official or to promote, or allow the promotion of, that per- Credit Union Administration with respect to any agency of a State, has reason to believe that an son’s trade or business, or goods, products, Federally insured credit union; interest of the residents of that State has been property, or services sold, offered for sale, leased (3) under the Securities Exchange Act of 1934 or is threatened or adversely affected by any or offered for lease, or otherwise made available (15 U.S.C. 78a et seq.) by the Securities and Ex- person who violates paragraph (1) or (2) of sec- through that trade or business, in a commercial change Commission with respect to any broker tion 5(a), or who engages in a pattern or prac- electronic mail message the transmission of or dealer; tice that violates paragraph (3), (4), or (5) of which is in violation of section 5(a)(1) if that (4) under the Investment Company Act of 1940 section 5(a) of this Act, the attorney general, of- person— (15 U.S.C. 80a–1 et seq.) by the Securities and ficial, or agency of the State, as parens patriae, (1) knows, or should have known in ordinary Exchange Commission with respect to invest- may bring a civil action on behalf of the resi- course of that person’s trade or business, that ment companies; dents of the State in a district court of the the goods, products, property, or services sold, (5) under the Investment Advisers Act of 1940 United States of appropriate jurisdiction— offered for sale, leased or offered for lease, or (15 U.S.C. 80b–1 et seq.) by the Securities and (A) to enjoin further violation of section 5 of otherwise made available through that trade or Exchange Commission with respect to invest- this Act by the defendant; or business were being promoted in such a message; ment advisers registered under that Act; (B) to obtain damages on behalf of residents (2) received or expected to receive an economic (6) under State insurance law in the case of of the State, in an amount equal to the greater benefit from such promotion; and any person engaged in providing insurance, by of— (3) took no reasonable action— the applicable State insurance authority of the (i) the actual monetary loss suffered by such (A) to prevent the transmission; or State in which the person is domiciled, subject residents; or (B) to detect the transmission and report it to to section 104 of the Gramm-Bliley-Leach Act (15 (ii) the amount determined under paragraph the Commission. U.S.C. 6701), except that in any State in which (2). (b) LIMITED ENFORCEMENT AGAINST THIRD the State insurance authority elects not to exer- (2) AVAILABILITY OF INJUNCTIVE RELIEF WITH- PARTIES.— OUT SHOWING OF KNOWLEDGE.—Notwithstanding (1) IN GENERAL.—Except as provided in para- cise this power, the enforcement authority pur- suant to this Act shall be exercised by the Com- any other provision of this Act, in a civil action graph (2), a person (hereinafter referred to as under paragraph (1)(A) of this subsection, the the ‘‘third party’’) that provides goods, prod- mission in accordance with subsection (a); (7) under part A of subtitle VII of title 49, attorney general, official, or agency of the State ucts, property, or services to another person shall not be not required to allege or prove the that violates subsection (a) shall not be held lia- United States Code, by the Secretary of Trans- portation with respect to any air carrier or for- state of mind required by section 5(a)(2), sub- ble for such violation. paragraph (B) or (C) of section 5(a)(4), or sec- (2) EXCEPTION.—Liability for a violation of eign air carrier subject to that part; (8) under the Packers and Stockyards Act, tion 5(b)(1)(A). subsection (a) shall be imputed to a third party (3) STATUTORY DAMAGES.— that provides goods, products, property, or serv- 1921 (7 U.S.C. 181 et seq.) (except as provided in section 406 of that Act (7 U.S.C. 226, 227)), by (A) IN GENERAL.—For purposes of paragraph ices to another person that violates subsection (1)(B)(ii), the amount determined under this (a) if that third party— the Secretary of Agriculture with respect to any activities subject to that Act; paragraph is the amount calculated by multi- (A) owns, or has a greater than 50 percent plying the number of violations (with each sepa- ownership or economic interest in, the trade or (9) under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.) by the Farm Credit Adminis- rately addressed unlawful message received by business of the person that violated subsection or addressed to such residents treated as a sepa- (a); or tration with respect to any Federal land bank, Federal land bank association, Federal inter- rate violation) by up to $250. (B)(i) has actual knowledge that goods, prod- (B) LIMITATION.—For any violation of section mediate credit bank, or production credit asso- ucts, property, or services are promoted in a 5 (other than section 5(a)(1)), the amount deter- ciation; and commercial electronic mail message the trans- mined under subparagraph (A) may not exceed mission of which is in violation of section (10) under the Communications Act of 1934 (47 U.S.C. 151 et seq.) by the Federal Communica- $2,000,000. 5(a)(1); and (C) AGGRAVATED DAMAGES.—The court may tions Commission with respect to any person (ii) receives, or expects to receive, an economic increase a damage award to an amount equal to subject to the provisions of that Act. benefit from such promotion. not more than three times the amount otherwise (c) EXERCISE OF CERTAIN POWERS.—For the (c) EXCLUSIVE ENFORCEMENT BY FTC.—Sub- available under this paragraph if— purpose of the exercise by any agency referred sections (f) and (g) of section 7 do not apply to (i) the court determines that the defendant to in subsection (b) of its powers under any Act violations of this section. committed the violation willfully and know- referred to in that subsection, a violation of this (d) SAVINGS PROVISION.—Subject to section ingly; or 7(f)(7), nothing in this section may be construed Act is deemed to be a violation of a Federal (ii) the defendant’s unlawful activity included to limit or prevent any action that may be taken Trade Commission trade regulation rule. In ad- one or more of the aggravating violations set under this Act with respect to any violation of dition to its powers under any provision of law forth in section 5(b). any other section of this Act. specifically referred to in subsection (b), each of (D) REDUCTION OF DAMAGES.—In assessing SEC. 7. ENFORCEMENT GENERALLY. the agencies referred to in that subsection may damages under subparagraph (A), the court (a) VIOLATION IS UNFAIR OR DECEPTIVE ACT exercise, for the purpose of enforcing compliance may consider whether— OR PRACTICE.—Except as provided in subsection with any requirement imposed under this Act, (i) the defendant has established and imple- (b), this Act shall be enforced by the Commission any other authority conferred on it by law. mented, with due care, commercially reasonable as if the violation of this Act were an unfair or (d) ACTIONS BY THE COMMISSION.—The Com- practices and procedures to effectively prevent deceptive act or practice proscribed under sec- mission shall prevent any person from violating such violations; or tion 18(a)(1)(B) of the Federal Trade Commis- this Act in the same manner, by the same (ii) the violation occurred despite commer- sion Act (15 U.S.C. 57a(a)(1)(B)). means, and with the same jurisdiction, powers, cially reasonable efforts to maintain compliance (b) ENFORCEMENT BY CERTAIN OTHER AGEN- and duties as though all applicable terms and with such practices and procedures. CIES.—Compliance with this Act shall be en- provisions of the Federal Trade Commission Act (3) ATTORNEY FEES.—In the case of any suc- forced— (15 U.S.C. 41 et seq.) were incorporated into and cessful action under paragraph (1), the State (1) under section 8 of the Federal Deposit In- made a part of this Act. Any entity that violates may be awarded the costs of the action and rea- surance Act (12 U.S.C. 1818), in the case of— any provision of that subtitle is subject to the sonable attorney fees as determined by the (A) national banks, and Federal branches and penalties and entitled to the privileges and im- court. Federal agencies of foreign banks, by the Office munities provided in the Federal Trade Commis- (4) RIGHTS OF FEDERAL REGULATORS.—The of the Comptroller of the Currency; sion Act in the same manner, by the same State shall serve prior written notice of any ac- (B) member banks of the Federal Reserve Sys- means, and with the same jurisdiction, power, tion under paragraph (1) upon the Federal tem (other than national banks), branches and and duties as though all applicable terms and Trade Commission or the appropriate Federal agencies of foreign banks (other than Federal provisions of the Federal Trade Commission Act regulator determined under subsection (b) and branches, Federal agencies, and insured State were incorporated into and made a part of that provide the Commission or appropriate Federal branches of foreign banks), commercial lending subtitle. regulator with a copy of its complaint, except in companies owned or controlled by foreign (e) AVAILABILITY OF CEASE-AND-DESIST OR- any case in which such prior notice is not fea- banks, organizations operating under section 25 DERS AND INJUNCTIVE RELIEF WITHOUT SHOWING sible, in which case the State shall serve such or 25A of the Federal Reserve Act (12 U.S.C. 601 OF KNOWLEDGE.—Notwithstanding any other notice immediately upon instituting such action. and 611), and bank holding companies, by the provision of this Act, in any proceeding or ac- The Federal Trade Commission or appropriate Board; tion pursuant to subsection (b), (c), or (d) of this Federal regulator shall have the right—

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00061 Fmt 0624 Sfmt 6333 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15942 CONGRESSIONAL RECORD — SENATE November 25, 2003 (A) to intervene in the action; ice in violation of section 5(b)(1)(A)(i), treated (2) includes an explanation of any practical, (B) upon so intervening, to be heard on all as a separate violation) by— technical, security, privacy, enforceability, or matters arising therein; (i) up to $100, in the case of a violation of sec- other concerns that the Commission has regard- (C) to remove the action to the appropriate tion 5(a)(1); or ing such a registry; and United States district court; and (ii) $25, in the case of any other violation of (3) includes an explanation of how the reg- (D) to file petitions for appeal. section 5. istry would be applied with respect to children (5) CONSTRUCTION.—For purposes of bringing (B) LIMITATION.—For any violation of section with e-mail accounts. any civil action under paragraph (1), nothing in 5 (other than section 5(a)(1)), the amount deter- (b) AUTHORIZATION TO IMPLEMENT.—The this Act shall be construed to prevent an attor- mined under subparagraph (A) may not exceed Commission may establish and implement the ney general of a State from exercising the pow- $1,000,000. plan, but not earlier than 9 months after the ers conferred on the attorney general by the (C) AGGRAVATED DAMAGES.—The court may date of enactment of this Act. laws of that State to— increase a damage award to an amount equal to SEC. 10. STUDY OF EFFECTS OF COMMERCIAL (A) conduct investigations; not more than three times the amount otherwise ELECTRONIC MAIL. (B) administer oaths or affirmations; or available under this paragraph if— (a) IN GENERAL.—Not later than 24 months (C) compel the attendance of witnesses or the (i) the court determines that the defendant after the date of the enactment of this Act, the production of documentary and other evidence. committed the violation willfully and know- Commission, in consultation with the Depart- (6) VENUE; SERVICE OF PROCESS.— ingly; or ment of Justice and other appropriate agencies, (A) VENUE.—Any action brought under para- (ii) the defendant’s unlawful activity included shall submit a report to the Congress that pro- graph (1) may be brought in the district court of one or more of the aggravated violations set vides a detailed analysis of the effectiveness and the United States that meets applicable require- forth in section 5(b). enforcement of the provisions of this Act and ments relating to venue under section 1391 of (D) REDUCTION OF DAMAGES.—In assessing the need (if any) for the Congress to modify title 28, United States Code. damages under subparagraph (A), the court such provisions. (B) SERVICE OF PROCESS.—In an action may consider whether— (b) REQUIRED ANALYSIS.—The Commission brought under paragraph (1), process may be (i) the defendant has established and imple- shall include in the report required by sub- served in any district in which the defendant— mented, with due care, commercially reasonable section (a)— (i) is an inhabitant; or practices and procedures to effectively prevent (1) an analysis of the extent to which techno- (ii) maintains a physical place of business. such violations; or logical and marketplace developments, including (7) LIMITATION ON STATE ACTION WHILE FED- (ii) the violation occurred despite commer- changes in the nature of the devices through ERAL ACTION IS PENDING.—If the Commission or cially reasonable efforts to maintain compliance which consumers access their electronic mail other appropriate Federal agency under sub- with such practices and procedures. messages, may affect the practicality and effec- section (b) has instituted a civil action or an ad- (4) ATTORNEY FEES.—In any action brought tiveness of the provisions of this Act; ministrative action for violation of this Act, no pursuant to paragraph (1), the court may, in its (2) analysis and recommendations concerning State attorney general, or official or agency of discretion, require an undertaking for the pay- how to address commercial electronic mail that a State, may bring an action under this sub- ment of the costs of such action, and assess rea- originates in or is transmitted through or to fa- section during the pendency of that action sonable costs, including reasonable attorneys’ cilities or computers in other nations, including against any defendant named in the complaint fees, against any party. initiatives or policy positions that the Federal of the Commission or the other agency for any SEC. 8. EFFECT ON OTHER LAWS. government could pursue through international violation of this Act alleged in the complaint. (a) FEDERAL LAW.— negotiations, fora, organizations, or institu- (8) REQUISITE SCIENTER FOR CERTAIN CIVIL (1) Nothing in this Act shall be construed to tions; and ACTIONS.—Except as provided in subsections impair the enforcement of section 223 or 231 of (3) analysis and recommendations concerning (a)(2), (a)(4)(B), (a)(4)(C), (b)(1), and (d) of sec- the Communications Act of 1934 (47 U.S.C. 223 options for protecting consumers, including chil- tion 5, and paragraph (2) of this subsection, in or 231, respectively), chapter 71 (relating to ob- dren, from the receipt and viewing of commer- a civil action brought by a State attorney gen- scenity) or 110 (relating to sexual exploitation of cial electronic mail that is obscene or porno- eral, or an official or agency of a State, to re- children) of title 18, United States Code, or any graphic. cover monetary damages for a violation of this other Federal criminal statute. SEC. 11. IMPROVING ENFORCEMENT BY PRO- Act, the court shall not grant the relief sought (2) Nothing in this Act shall be construed to VIDING REWARDS FOR INFORMA- unless the attorney general, official, or agency affect in any way the Commission’s authority to TION ABOUT VIOLATIONS; LABEL- establishes that the defendant acted with actual bring enforcement actions under FTC Act for ING. knowledge, or knowledge fairly implied on the materially false or deceptive representations or The Commission shall transmit to the Senate basis of objective circumstances, of the act or unfair practices in commercial electronic mail Committee on Commerce, Science, and Transpor- omission that constitutes the violation. messages. tation and the House of Representatives Com- (g) ACTION BY PROVIDER OF INTERNET ACCESS (b) STATE LAW.— mittee on Energy and Commerce— SERVICE.— (1) IN GENERAL.—This Act supersedes any (1) a report, within 9 months after the date of (1) ACTION AUTHORIZED.—A provider of Inter- statute, regulation, or rule of a State or political enactment of this Act, that sets forth a system net access service adversely affected by a viola- subdivision of a State that expressly regulates for rewarding those who supply information tion of section 5(a) or of section 5(b), or a pat- the use of electronic mail to send commercial about violations of this Act, including— tern or practice that violated paragraph (2), (3), messages, except to the extent that any such (A) procedures for the Commission to grant a (4), or (5) of section 5(a), may bring a civil ac- statute, regulation, or rule prohibits falsity or reward of not less than 20 percent of the total tion in any district court of the United States deception in any portion of a commercial elec- civil penalty collected for a violation of this Act with jurisdiction over the defendant— tronic mail message or information attached to the first person that— (A) to enjoin further violation by the defend- thereto. (i) identifies the person in violation of this ant; or (2) STATE LAW NOT SPECIFIC TO ELECTRONIC Act; and (B) to recover damages in an amount equal to MAIL.—This Act shall not be construed to pre- (ii) supplies information that leads to the suc- the greater of— empt the applicability of— cessful collection of a civil penalty by the Com- (i) actual monetary loss incurred by the pro- (A) State laws that are not specific to elec- mission; and vider of Internet access service as a result of tronic mail, including State trespass, contract, (B) procedures to minimize the burden of sub- such violation; or or tort law; or mitting a complaint to the Commission con- (ii) the amount determined under paragraph (B) other State laws to the extent that those cerning violations of this Act, including proce- (3). laws relate to acts of fraud or computer crime. dures to allow the electronic submission of com- (2) SPECIAL DEFINITION OF ‘‘PROCURE’’.—In (c) NO EFFECT ON POLICIES OF PROVIDERS OF plaints to the Commission; and any action brought under paragraph (1), this INTERNET ACCESS SERVICE.—Nothing in this Act (2) a report, within 18 months after the date Act shall be applied as if the definition of the shall be construed to have any effect on the of enactment of this Act, that sets forth a plan term ‘‘procure’’ in section 3(12) contained, after lawfulness or unlawfulness, under any other for requiring commercial electronic mail to be ‘‘behalf’’ the words ‘‘with actual knowledge, or provision of law, of the adoption, implementa- identifiable from its subject line, by means of by consciously avoiding knowing, whether such tion, or enforcement by a provider of Internet compliance with Internet Engineering Task person is engaging, or will engage, in a pattern access service of a policy of declining to trans- Force Standards, the use of the characters or practice that violates this Act’’. mit, route, relay, handle, or store certain types ‘‘ADV’’ in the subject line, or other comparable (3) STATUTORY DAMAGES.— of electronic mail messages. identifier, or an explanation of any concerns (A) IN GENERAL.—For purposes of paragraph SEC. 9. DO-NOT-E-MAIL REGISTRY. the Commission has that cause the Commission (1)(B)(ii), the amount determined under this (a) IN GENERAL.—Not later than 6 months to recommend against the plan. paragraph is the amount calculated by multi- after the date of enactment of this Act, the Com- SEC. 12. RESTRICTIONS ON OTHER TRANS- plying the number of violations (with each sepa- mission shall transmit to the Senate Committee MISSIONS. rately addressed unlawful message that is trans- on Commerce, Science, and Transportation and Section 227(b)(1) of the Communications Act of mitted or attempted to be transmitted over the the House of Representatives Committee on En- 1934 (47 U.S.C. 227(b)(1)) is amended, in the mat- facilities of the provider of Internet access serv- ergy and Commerce a report that— ter preceding subparagraph (A), by inserting ‘‘, ice, or that is transmitted or attempted to be (1) sets forth a plan and timetable for estab- or any person outside the United States if the transmitted to an electronic mail address ob- lishing a nationwide marketing Do-Not-E-mail recipient is within the United States’’ after tained from the provider of Internet access serv- registry; ‘‘United States’’.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00062 Fmt 0624 Sfmt 6333 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15943 SEC. 13. REGULATIONS. tion of such provision to other persons or cir- when employees take more and more (a) IN GENERAL.—The Commission may issue cumstances shall not be affected. time to wade through their e-mail. regulations to implement the provisions of this SEC. 16. EFFECTIVE DATE. Servers all over the country have dif- Act (not including the amendments made by sec- The provisions of this Act, other than section ficulty blocking spam, clearing their tions 4 and 12). Any such regulations shall be 9, shall take effect on January 1, 2004. machines so they can operate while issued in accordance with section 553 of title 5, Mr. BURNS. Mr. President, I ask United States Code. spammers work to find more and more (b) LIMITATION.—Subsection (a) may not be unanimous consent that the Senate ways to circumvent the latest software construed to authorize the Commission to estab- concur in the House amendment with server or individual blocking systems. lish a requirement pursuant to section 5(a)(5)(A) the substitute amendment from Sen- In my State of Montana, spam is to include any specific words, characters, ator BURNS, the motion to reconsider really horrible, as it is in all rural marks, or labels in a commercial electronic mail be laid upon the table, with no inter- areas across the United States. We message, or to include the identification re- vening action or debate, and that any have vast distances in Montana. Many quired by section 5(a)(5)(A) in any particular statements relating to the bill be of my constituents are forced to pay part of such a mail message (such as the subject long distance charges on their time on line or body). printed in the RECORD. The PRESIDING OFFICER (Mr. the Internet. It is not the only State SEC. 14. APPLICATION TO WIRELESS. DOMENICI). Without objection, it is so that has to do that. You will find that (a) EFFECT ON OTHER LAW.—Nothing in this Act shall be interpreted to preclude or override ordered. in the majority of rural areas, in all the applicability of section 227 of the Commu- The amendment (No. 2219) was agreed our States. Spam makes it nearly im- nications Act of 1934 (47 U.S.C. 227) or the rules to. possible for rural America to realize prescribed under section 3 of the Telemarketing (The amendment is printed in today’s the tremendous economic and edu- and Consumer Fraud and Abuse Prevention Act RECORD under ‘‘Text of Amendments.’’) cational benefits of the online era. (15 U.S.C. 6102). To the extent that a require- Mr. BURNS. Mr. President, this is a This bill empowers consumers and ment of such Acts, or rules or regulations pro- good day, not only for me personally grants additional enforcement to the mulgated thereunder, is inconsistent with the but many of us who serve in this Sen- Federal Trade Commission to take ac- requirement of this Act, the requirement of such ate, especially my friend from Oregon tion against spammers. It also allows other Acts, or rules or regulations promulgated the States’ attorneys general to do the thereunder, shall take precedence. whom I see across the aisle. (b) FCC RULEMAKING.—The Federal Commu- It has been 4 years, working on this same. The bill requires the senders of nications Commission, in consultation with the legislation. This is the CAN–SPAM commercial e-mail to include a clear Federal Trade Commission, shall promulgate bill—everybody is pretty familiar with opt-out mechanism to allow consumers rules within 270 days to protect consumers from it—which we hope will stem the tide of to be removed from the mass e-mail unwanted mobile service commercial messages. junk mail that is flooding our Nation’s lists. This opt-out must also be clearly The rules shall, to the extent consistent with inboxes and our e-mail. described in the e-mail itself, so users subsection (c)— of e-mail are not forced to sift through (1) provide subscribers to commercial mobile I specifically thank my colleague Senator WYDEN from Oregon who is co- pages and pages of legalese to deter- services the ability to avoid receiving mobile mine where they can stop the un- service commercial messages unless the sub- author of this bill. He has been work- scriber has provided express prior authorization, ing tirelessly on this for years—as long wanted mail. Senders of commercial e- except as provided in paragraph (3); as I have. Thanks to the discussions mail must also provide a valid physical (2) allow recipients of mobile service commer- over the past few days, many already postal address, so they are not able to cial messages to indicate electronically a desire strong proconsumer provisions in CAN– hide their identities. Finally, e-mail not to receive future mobile service commercial SPAM have been enhanced. Those ne- marketers must include a notice that messages from the initiator; gotiations have been ongoing and, in the e-mail is advertising. (3) take into consideration, in determining Simply put, the CAN–SPAM bill fi- whether to subject providers of commercial mo- some cases, have been rather tense. The bill the Senate considers today nally gives consumers a measure of bile wireless services to paragraph (1), the rela- control over their inboxes. tionship that exists between providers of such contains substantial statutory dam- In cases where e-mail marketers services and their subscribers, but if the Com- ages for spammers and additional no- don’t comply with the CAN–SPAM bill, mission determines that such providers should tice requirements on commercial e- not be subject to paragraph (1), the rules shall the penalties are very severe. For this mail. part of the bill we have many people to require such providers, in addition to complying The character of the Congress is not with the other provisions of this Act, to allow thank. Spammers are actually on the always proactive; it is always reactive, subscribers to indicate a desire not to receive fu- hook for damages up to $250 per spam ture mobile service commercial messages at the it seems. That is the nature of the po- e-mail with a cap of $2 million. That time of subscribing to such service, and in any litical landscape in which we find our- gets my attention right there. This al- billing mechanism; and selves. We do not get too excited about ready high penalty can be tripled if (4) determine how initiators of mobile service doing anything until the folks at home particularly unethical methods are commercial messages may comply with the pro- get excited, or enough of them, that visions of this Act, considering the unique tech- used, such as a computer hijacking to they form a critical mass for us to take send spam by taking control of com- nical aspects, including the functional and action. character limitations, of devices that receive puters of legitimate users without such messages. I congratulate Senator WYDEN. We their knowledge, and for harvesting ad- (c) OTHER FACTORS CONSIDERED.—The Fed- serve together on the Commerce Com- dresses from legitimate Web sites to eral Communications Commission shall consider mittee. We were approached about send spam. For criminal spammers who the ability of an initiator of an electronic mail doing something about the Internet try to hide their identities by using message to reasonably determine that the elec- and what is coming down on our com- false header information, damages are tronic mail message is a mobile service commer- puters and is found in our mailboxes on cial message. not capped. In other words, they can go the Internet. We saw, 4 years ago, that as high, those damages can go as high (d) MOBILE SERVICE COMMERCIAL MESSAGE this was going to become a problem. It DEFINED.—In this section, the term ‘‘mobile as the market would stand. It also in- service commercial message’’ means a commer- was not just the idea of the Senator cludes enhanced enforcement authority cial electronic mail message that contains text, who stands before you now to do some- of the FCC to close possible loopholes graphics, or images for visual display that is thing about unwanted e-mail 4 years for spammers and to keep up with the transmitted directly to a wireless device that— ago. There were more Senators around technological developments. (1) is utilized by a subscriber of commercial here who had the same vision, that as Let’s face it, technology moves at mobile service (as such term is defined in section this industry grows, a problem will the speed of light. Granting the Com- 332(d) of the Communications Act of 1934 (47 also grow with it. And that is what mission the ability to keep pace with U.S.C. 332(d)) in connection with such service; happened. and new techniques of spammers is essen- (2) is capable of accessing and displaying such The extent of bipartisan cooperation tial because it has become clear, in re- a message. on this issue is no surprise, given the cent years anyway, that these crimi- SEC. 15. SEPARABILITY. deluge of spam consumers face in their nals are growing increasingly sophisti- If any provision of this Act or the application inboxes every day. The costs to busi- cated in their methods. thereof to any person or circumstance is held in- nesses and individuals is escalating and So the passage of this bill today will valid, the remainder of this Act and the applica- wide ranging. Businesses lose money help stem the tide of the toxic sea of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15944 CONGRESSIONAL RECORD — SENATE November 25, 2003 spam. Clearly, consumers have been de- with this legislation that they think is First, let me thank my colleague manding control over their e-mail important because spam is such an in- from Oregon for his leadership on this inboxes, and the passage of the CAN– trusion into their lives every single issue, for his persistence—done in a SPAM today will give those consumers day. slightly different way, the Oregon way, a key victory in the battle against We have continued work to do. Sen- not the New York way, but it is effec- criminal spammers. ator SCHUMER will speak next. He has a tive, if not more effective—and for his Again, I thank my good friend with very important idea with respect to understanding. There is no one in this whom I served on the Commerce Com- trying to put in place a Do Not Spam Chamber who both understands tech- mittee, Senator WYDEN of Oregon, who list. It is a promising one. I think all of nology issues and yet has a political has absolutely been a knight in shining us would acknowledge there are some grasp of politics and blends the two. I armor in negotiations and working this details to be worked out with the Fed- thank him for his leadership. through the Congress. Also on the floor eral Trade Commission. Senator I thank the Senator from Montana, is Senator SCHUMER of New York. Sen- CORZINE has done some very good work as well, who has worked long and hard ator SCHUMER has offered many posi- in looking at some creative ideas for on this issue; and my good friend from tive provisions in this bill. We have had the future. I intend to work closely Arizona, the chairman of the Com- a great time debating that. But none- with him because he has been a leader merce Committee, also. theless, his contribution is clearly in in the technology area. But I think we This is going to be a good Thanks- this bill and we appreciate his work. Of ought to understand that this effort giving for consumers. We are dealing course, when I say it is a bipartisan ef- today is the culmination of more than with spam today. The portability rules fort, that is usually the way we get leg- 4 years of hard work. It is not just for cell phones have been enacted. I islation passed around here, legislation needed, it is overdue. worked long and hard on those. Both that has any kind of future at all. We are not going to pretend this leg- antispamming legislation and port- I thank them both. It gives me great islation is a silver bullet because we ability rules are very important things pleasure to yield the floor for my know that no piece of legislation is. we have done for consumers. As tech- friend from the great State of Oregon, But when this bill takes effect, the big- nology changes, we need to adapt the Senator WYDEN. time spammers who up to this point rules by which this technology can Mr. WYDEN. Mr. President, I will be faced no consequences, for all practical work. The basic principles we have al- very brief. I know my colleague from purposes, will suddenly be at risk for ways have to be applied in new and dif- New York, Senator SCHUMER, has a criminal prosecution, Federal Trade ferent ways. That is what we are trying plane to catch. Commission enforcement, and million- to do today. Senator BURNS and I have worked for dollar lawsuits by State attorneys gen- E-mail is one of the great inventions more than 4 years on this legislation, eral and Internet service providers. of the 20th century. But, unfortu- and it is particularly important that it I believe a number of these key en- nately, if we did nothing, e-mail would pass today. Every single day, the flood forcement actions will be taken imme- not be around within a few years and of pornographic and sleazy spam grows. diately after this legislation is passed. no one could use it. What was an an- With this legislation, Congress is be- This will set in place the kind of deter- noyance a few years ago has become a ginning to stem the tide. We under- rent that is going to allow us to say it major problem this year and could stand that this is going to be a difficult is a different day. The big-time really cripple e-mail a few years from battle because the kingpin spammers spammers will face consequences when now. So this Congress has acted. We are not technological simpletons. No they flood our citizens and our families acted in a thoughtful and careful way. matter what law Congress passes, they with the trash and the pornography. Is this bill going to solve everything? are going to be very aggressive about That is why this is an important step No. But will it make a real difference? trying to find evasive strategies to get forward. You bet. Spammers: Be put on notice. around that. But I am of the view that He is going to speak next, but I com- Within a few months you will be com- with the passage of this legislation, if mend my colleague, the Senator from mitting a criminal act if you do what our prosecutors, the Federal Trade New York, for his usual persistence. He you are doing now. Commission, and the Attorney General stayed at it by saying this was an im- With this bill, Congress is saying come down on the kingpin spammers portant issue. We have wrestled with that if you are a spammer, you can with hobnail boots, we can put in place this question with respect to the Do wind up in the slammer. That is the a strategy that can stem this tide. Not Call list as well. I happen to think bottom line. The bottom line is that Suffice it to say, the spammers are that the Senator from New York is cer- there will be criminal penalties and going to go to great lengths to try to tainly talking about a principle we real prosecution. Will we go after every get around this law. We know, for ex- need to address in the communications spammer, somebody who makes a mis- ample, that many of them are going to area. I happen to think the first take here and there? No. But the stud- try to move offshore. It is going to be amendment is special. People ought to ies show us—this is what gives all of us important to have international agree- have the right to communicate. But such hope—that maybe 250 spammers ments that will also bring together citizens also ought to have the right to send out 90 percent of the e-mail. And U.S. authorities and international au- say: We have had enough. We don’t we are saying to those 250, no matter thorities against those who would try want to have people flooded with this where you are, or how you try to hide to get around this legislation. kind of information. That is the prin- your spam, we will find you. This bill It is important to remember what ciple that is at stake here. I commend gives the FTC and the Justice Depart- Congress is doing now; that is, Con- the Senator from New York. ment the tools to go after you. gress is saying spamming is an outlaw My partner, the chairman of the tele- That is why this bill is so important. business. It is an outlaw business that communications subcommittee, is not This is such a good day, not only for is going to be treated as an area of pri- in the Chamber. But I am proud to those who use computers but for tech- orities for prosecutors and law enforce- serve with him. He has been an excep- nology in general. ment officials. That has not been the tionally gracious ally on this for many I became familiar with this issue case in the past. Essentially, when Sen- years. when I noticed my daughter on her ator BURNS and I pursued this problem I am glad that this proconsumer computer. My wife and I had always of spamming a number of years ago, a measure, a measure that I think makes said to one another: Isn’t it great that lot of people asked: Why in the world a beginning in efforts against big-time instead of watching television, our kids would a couple of U.S. Senators be spammers, is passing. It will be of are always on the computer? Then we tackling this issue? They intimated great benefit to consumers. saw what was popping up in their e- that it really wasn’t worthy of the Sen- I yield the floor. mail—things we wouldn’t want to see, ate’s time. Spam has grown so extraor- The PRESIDING OFFICER. The Sen- let alone my 14-year-old daughter. As dinarily in the last few years, and now ator from New York. we looked into it, we saw what was people have been clammering about Mr. SCHUMER. Thank you, Mr. happening. Spam is annoying, crippling why the Senate isn’t moving ahead President. commerce, and pornographic. All of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15945 that has to end while we preserve the For me, God has given me much to be section 6 does not require any showing essence of spam itself, which is ease of thankful for, and I will dwell on that that the merchant actually hired or in- communication. over the next few days. I hope everyone duced the spammer to send the spam. There is no single solution. That is here feels the same way about their In other words, if the spammer is hard why this bill is correct in taking the fortune and good fortune. to find and his contractual relationship eclectic approach. I wanted to put a With that, I yield the floor. with the merchant has been obscured few more provisions in. I have talked ANTI-SPAN LEGISLATION by under-the-table dealings, the FTC to my friends from Montana and Or- Mr. BURNS. Mr. President, I would doesn’t have to spend time and effort egon. We are going to monitor this. If like to engage the gentleman from Or- trying to prove the relationship. new things are needed, we will add egon, Mr. WYDEN, in a colloquy regard- Mr. WYDEN. I share the Senator’s them. But there are many different ing some details of the anti-spam legis- understanding of how section 6 differs ways we can go after spammers after lation approved by the Senate. We have from the provisions of section 5. I this legislation is signed by the Presi- worked tirelessly on S. 877, and it is would only add that the drafters con- dent. important to ensure that spammers sidered which parties should have the The part for which I fought fiercely cannot get around the definitions of discretion to enforce the bill in the is the No Spam Registry. It will pro- electronic mail address and electronic manner set forth in section 6, and de- vide prosecutors with the best tools to mail message that will be regulated cided that section 6 should be enforced create the case. They won’t have to under this law. The definitions in the by the FTC only. prove intent. They won’t have to prove bill require electronic mail addresses Mr. BURNS. I thank my colleague anything other than as they do with to contain a domain part. This require- from Oregon. the No Call Registry. Day after day, ment is important to make sure we Mr. LEAHY. Mr. President, I am spammers have relentlessly sent hun- only capture e-mail and do not regu- pleased that the Senate is passing leg- dreds and thousands of spam e-mails to late other communications platforms, islation to help staunch the torrent of people who have explicitly said they do such as Instant Messaging. However, I unwanted commercial e-mail, com- not want spam. want to be clear that the intent of Con- monly known as spam. During the past I believe that it will work. I know gress is to capture e-mail messages as year, I worked closely with Senator that the FTC has some doubts. Al- that term is commonly understood. HATCH and other members of the Judi- though, fortunately, they now say it is This includes e-mail messages sent ciary Committee to craft criminal pen- technically feasible, and they are not within the same domain that may not alties for a variety of spammer tactics. worried about the list being stolen, actually display the domain part of the Those penalties, which we introduced they are worried about the evidence. e-mail address. in June as part of the Criminal Spam My answer to the FTC: Try it. We do Mr. WYDEN. I thank the gentleman Act, S. 1293, are included in the broader not have anything better. It is not from Montana for raising this impor- anti-spam legislation that we pass going to solve everything, but it is the tant issue. Yes, the intent of S. 877 is today. The bill will now go back to the best tool we have. to capture all e-mail messages as that House of Representatives for final ap- When they come back to us in 6 term is commonly understood. This in- proval, and then to the President for months with their proposal, which they cludes e-mail messages where the do- signing. must do under this legislation, I have main part of the address may not be Spam is much more than a techno- been assured by both Chairman MCCAIN displayed. That is why the bill’s defini- logical nuisance. In the past few years, and Ranking Member HOLLINGS, as well tion of e-mail address, in referring to it has become a serious and growing as Senators WYDEN and BURNS, that we the domain part, contains the phrase problem that threatens to undermine will make sure they implement it. We ‘‘whether or not displayed.’’ We cer- the vast potential of the Internet. will either do it statutorily or by pres- tainly do not want to create any loop- Businesses and individuals currently sure from the appropriators and others. holes that spammers could potentially wade through tremendous amounts of So the FTC may disagree with the exploit and I appreciate the oppor- spam in order to access e-mail that is vast majority of Americans and the tunity to clarify this point. of relevance to them—and this is after unanimity of the Congress—I guess Mr. BURNS. I would like to flag one Internet Service Providers, businesses, unanimous in the Senate, not quite in other aspect of the bill. Under section and individuals have spent time and in the House—but we are going to make 6, the FTC can bring enforcement ac- some cases enormous amounts of this No Spam Registry a reality within tions against merchants whose prod- money blocking a large percentage of a year. ucts are promoted in spam e-mails, spam from reaching its intended recipi- So the bottom line is simple: For the even if the merchant is not the ents. first time there is some light at the spammer. Isn’t that correct? In my home State of Vermont, one end of the tunnel in the fight against Mr. WYDEN. I agree with the Sen- legislator recently found that two- spam. This legislation—not a pan- ator. thirds of the 96 e-mails in his inbox acea—will greatly reduce the burden of Mr. BURNS. But isn’t it also true were spam. And this occurred after the spam, the difficulty of spam, and the that section 5 can be used against mer- legislature had installed new spam- pornographic aspects of spam. chants whose products are promoted in blocking software on its computer sys- So again, I thank all of my col- spam e-mails? Can’t the FTC, State tem that seemed to be catching 80 per- leagues in the Senate in letting this A.G.s, and Internet Service Providers cent of the spam. The assistant attor- legislation go through. Again, it is a bring actions under section 5 against ney general in Vermont was forced to happy Thanksgiving to computer users parties who aren’t themselves suggest to computer users the fol- everywhere. spamming, but rather hire spammers lowing means to avoid these unsolic- I thank my colleagues from Montana to promote their products or services? ited commercial e-mails: ‘‘It’s very bad and Oregon for their leadership. I Mr. WYDEN. Absolutely. The bill’s to reply, even to say don’t send any- thank Senators MCCAIN and HOLLINGS, definition of ‘‘initiate’’ makes that more. It tells the spammer they have a as chairman and ranking member of clear, because it applies not only to the live address . . . The best thing you the committee, for their support. spammer that originates the actual e- can do is just keep deleting them. If it When the industry groups tried to rip mail, but also to a party who has hired gets really bad, you may have to the registry out of the legislation, or otherwise induced the spammer to change your address.’’ This experience these folks stood firm, the Senate send the e-mail on its behalf. If the e- is echoed nationwide. stood firm, and that is why we have it mail message violates the bill, both E-mail users are having the online in here today. parties would be on the hook under sec- equivalent of the experience of the With that, Mr. President, let me just tion 5, and enforcement would be pos- woman in the Monty Python skit, who conclude by wishing you, my col- sible against both or either parties. seeks to order a Spam-free breakfast at leagues from Maine and Oregon, and all Mr. BURNS. That confirms my un- a restaurant. Try as she might, she of my colleagues, and all those who derstanding. So what is different about cannot get the waitress to bring her work here, a very happy Thanksgiving. section 6, as I understand it, is that the meal she desires. Every dish in the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15946 CONGRESSIONAL RECORD — SENATE November 25, 2003 restaurant comes with Spam; it is just parent: Both flood the Internet in an First, our legislation prohibits hack- a matter of how much. There is ‘‘egg, attempt to force a message on people ing into another person’s computer bacon and Spam’’; ‘‘egg, bacon, sausage who would not otherwise choose to re- system and sending bulk spam from or and Spam’’; ‘‘Spam, bacon, sausage and ceive it. Criminal laws I wrote prohib- through that system. This criminalizes Spam’’; ‘‘Spam, egg, Spam, Spam, iting the former have been invoked and the common spammer technique of ob- bacon and Spam’’; ‘‘Spam, sausage, enforced from the time they were taining access to other people’s e-mail Spam, Spam, Spam, bacon, Spam, to- passed. It is the latter dilemma we accounts on an ISP’s e-mail network, mato and Spam’’; and so on. Exas- must now confront. whether by password theft or by insert- perated, the woman finally cries out: Spam is also fertile ground for decep- ing a Trojan horse to send bulk spam. ‘‘I don’t like Spam! . . . I don’t want tive trade practices. The FTC has esti- Second, our legislation prohibits ANY Spam!’’ mated that 90 percent of the spam in- using a computer system that the Individuals and businesses are under- volving investment and business oppor- owner makes available for other pur- standably reacting similarly to elec- tunities, and nearly half of the spam poses as a conduit for bulk spam, with tronic spam. A Harris poll taken late advertising health products and serv- the intent of deceiving recipients as to last year found that 80 percent of re- ices, and travel and leisure, contains the spam’s origins. This prohibition spondents view spam as ‘‘very annoy- false or misleading information. criminalizes another common spammer ing,’’ and fully 74 percent of respond- This rampant deception has the po- technique—the abuse of third parties’ ents favor making mass spamming ille- tential to undermine Americans’ trust ‘‘open’’ servers, such as e-mail servers gal. Earlier this month, more than of valid information on the Internet. that have the capability to relay mail, three out of four people surveyed by Indeed, it has already caused some or Web proxy servers that have the Yahoo! Mail said it was ‘‘less aggra- Americans to refrain from using the ability to generate ‘‘form’’ mail. vating to clean a toilet’’ than to sort Internet to the extent they otherwise Spammers commandeer these servers through spam. Americans are fed up. would. For example, some have chosen to send bulk commercial e-mail with- Some 30 States now have anti-spam not to participate in public discussion out the server owner’s knowledge, ei- laws, but the globe-hopping nature of forums, and are hesitant to provide ther by ‘‘relaying’’ their e-mail e-mail makes these laws difficult to en- their addresses in legitimate business through an ‘‘open’’ e-mail server, or by force. Technology will undoubtedly transactions, for fear that their e-mail abusing an ‘‘open’’ Web proxy server’s play a key role in fighting spam, but a addresses will be harvested for junk e- capability to generate form e-mails as technological solution to the problem mail lists. And they are right to be a means to originate spam, thereby ex- is not likely in the foreseeable future. concerned. The FTC found spam arriv- ceeding the owner’s authorization for ISPs block billions of unwanted e- ing at its computer system just 9 min- use of that e-mail or Web server. In mails each day, but spammers are win- utes after posting an e-mail address in some instances the hijacked servers are ning the battle. an online chat room. even completely shut down as a result Millions of unwanted, unsolicited I have often said that Congress must of tens of thousands of undeliverable commercial e-mails are received by exercise great caution when regulating messages generated from the American businesses and individuals in cyberspace. Any legislative solution spammer’s e-mail list. each day, despite their own, additional to spam must tread carefully to ensure The legislation’s third prohibition filtering efforts. Ferris Research has that we do not impede or stifle the free targets another way that outlaw estimated that spam costs U.S. firms flow of information on the Internet. spammers evade ISP filters: Falsifying $8.9 billion annually in lost worker pro- The United States is the birthplace of the ‘‘header information’’ that accom- ductivity, consumption of bandwidth, the Internet, and the whole world panies every e-mail, and sending bulk and the use of technical support to con- watches whenever we decide to regu- spam containing that fake header in- figure and run spam filters and provide late it. Whenever we choose to inter- formation. More specifically, the legis- helpdesk support for spam recipients. vene in the Internet with Government lation prohibits forging information re- The costs of spam are significant to action, we must act carefully, pru- garding the origin of the e-mail mes- individuals as well, including time dently, and knowledgeably, keeping in sage, and the route through which the spent identifying and deleting spam, mind the implications of what we do message attempted to penetrate the inadvertently opening spam, installing and how we do it. And we must not for- ISP filters. and maintaining anti-spam filters, get that spam, like more traditional At the suggestion of the Department tracking down legitimate messages forms of commercial speech, is pro- of Justice, this third offense has been mistakenly deleted by spam filters, tected by the first amendment. amended since the Senate last consid- and paying for the ISP’s blocking ef- At the same time, we must not allow ered it to require a showing of materi- forts. spam to result in the ‘‘virtual death’’ ality. This means the Government And there are other prominent and of the Internet, as one Vermont news- must prove that the header informa- equally important costs of spam. It paper put it. tion was altered or concealed in a man- may introduce viruses, worms, and The Internet is a valuable asset to ner that would impair the ability of a ‘‘Trojan horse’’ programs—that is, pro- our Nation, to our economy, and to the recipient of the message, an Internet grams that unsuspecting users lives of Americans, and we should act access service processing the message download onto their computers that prudently to secure its continued via- on behalf of a recipient, a person alleg- are designed to take control of those bility and vitality. ing a violation of this title, or a law computers—into personal and business On June 19 of this year, Senator enforcement agency, to identify, lo- computer systems, including those HATCH and I introduced S. 1293, the cate, or respond to the person who ini- that support our national infrastruc- Criminal Spam Act, together with sev- tiated the e-mail or to investigate the ture. eral of our colleagues on the Judiciary alleged violation. Spammers are constantly in need of Committee. On September 25, the Com- Fourth, the Hatch-Leahy legislation new machines through which to route mittee unanimously voted to report S. prohibits registering for multiple e- their garbage e-mail, and a virus 1293 to the floor. On October 22, the mail accounts or Internet domain makes a perfect delivery mechanism Senate unanimously adopted the crimi- names using false identities, and send- for the engine they use for their mass nal provisions of the bill as an amend- ing bulk e-mail from those accounts or mailings. Some analysts said the ment to S. 877, the CAN SPAM Act. domains. This provision targets decep- SoBigF virus may have been created Today, the Senate is passing these tive ‘‘account churning,’’ a common with a more malicious intent than same criminal provisions as section 4 outlaw spammer technique that works most viruses, and may even be linked of a modified version of S. 877, as as follows. The spammer registers— to spam e-mail schemes that could be a passed by the House last week. usually by means of an automatic com- source of cash for those involved in the The Hatch-Leahy criminal provisions puter program—for large numbers of e- scheme. prohibit five principal techniques that mail accounts or domain names, using The interconnection between com- spammers use to evade filtering soft- false registration information, then puter viruses and spam is readily ap- ware and hide their trails. sends bulk spam from one account or

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15947 domain after another. This technique The fundamental problem inherent to Mr. BURNS. Mr. President, I rise stays ahead of ISP filters by hiding the spam—its sheer volume—may well per- today to support the final passage of source, size, and scope of the sender’s sist even in the absence of fraudulent the CAN–SPAM bill, which will help to mailings, and prevents the e-mail ac- routing information and false identi- stem the tide of junk e-mail that is count provider or domain name reg- ties. In a recent survey, 82 percent of flooding the Nation’s inboxes. I want to istrar from identifying the registrant respondents considered unsolicited specifically thank my colleague Sen- as a spammer and denying his registra- bulk e-mail, even from legitimate busi- ator WYDEN, the coauthor of the bill, tion request. Falsifying registration in- nesses, to be unwelcome spam. Given who has been working tirelessly on this formation for domain names also vio- this public opinion, and in light of the issue for years. Thanks to discussions lates a basic contractual requirement fact that spam is, in essence, cost- over the past few days, many of the al- for domain name registration falsifica- shifted advertising, we need to take a ready-strong proconsumer provisions tion. As with the last offense, this of- more comprehensive approach to our in CAN–SPAM have been enhanced. fense now requires that the registra- fight against spam. The bill the Senate considers today tion information be falsified ‘‘materi- While I am generally supportive of contains substantial statutory dam- ally.’’ the CAN SPAM Act, it does raise some ages for spammers and additional no- Fifth and finally, our legislation ad- concerns. For one thing, it may not be tice requirements on commercial e- dresses a major hacker spammer tech- tough enough to do the job. mail. nique for hiding identity that is a com- The bill takes an ‘‘opt out’’ approach The extent of bipartisan cooperation mon and pernicious alternative to do- to spam—that is, it requires all com- on this issue is no surprise given the main name registration—hijacking un- mercial e-mail to include an ‘‘opt out’’ deluge of spam consumers face in their used expanses of Internet address space mechanism, by which e-mail recipients inboxes everyday. The costs to busi- and using them as launch pads for junk may opt out of receiving further un- nesses and individuals are escalating e-mail. Hijacking Internet Protocol— wanted spam. My concern is that this and wide ranging. Businesses lose IP—addresses is not difficult: approach authorizes spammers to send money when employees take more and Spammers simply falsely assert that at least one piece of spam to each e- more time to wade through their e- they have the right to use a block of IP mail address in their database, while mails. Servers all over the country addresses, and obtain an Internet con- placing the burden on e-mail recipients have difficulty blocking spam, all nection for those addresses. Hiding be- to respond. People who receive dozens, while spammers work to find more and hind those addresses, they can then even hundreds, of unwanted e-mails more ways to circumvent the latest send vast amounts of spam that is ex- each day may have little time or en- software, server, or individual blocking tremely difficult to trace. ergy for anything other than opting- systems. Spam is particularly harmful to rural Penalties for violations of these new out from unwanted spam. Meantime, areas. Because of the vast distances in criminal prohibitions are tough but CAN SPAM will sweep away dozens of measured. Recidivists and those who Montana, many of my constituents are State anti-spam laws, including some forced to pay long distance charges for send spam in furtherance of another that were substantially more restric- felony may be imprisoned for up to 5 their time on the Internet. Spam tive. makes it nearly impossible for those in years. Large-volume spammers, those I am also troubled by the two label- rural America to realize the tremen- who hack into another person’s com- ing requirement in the CAN SPAM Act. dous economic and educational bene- puter system to send bulk spam, and The first makes it unlawful to send an spam ‘‘kingpins’’ who use others to op- fits of the online era. unsolicited commercial e-mail message erate their spamming operations may The CAN–SPAM bill empowers con- unless it provides, among other things, be imprisoned for up to 3 years. Other sumers and grants additional enforce- ‘‘clear and conspicuous identification offenders may be fined and imprisoned ment authority to the Federal Trade that the message is an advertisement for no more than one year. Convicted Commission to take action against offenders are also subject to forfeiture or solicitation,’’ and ‘‘a valid physical spammers. The bill requires the send- of proceeds and instrumentalities of postal address of the sender.’’ The sec- ers of commercial e-mail to include a the offense. ond—added as a floor amendment dur- clear ‘‘opt-out’’ mechanism to allow In addition to these penalties, the ing Senate consideration of the bill in consumers to be removed from mass e- Hatch-Leahy legislation directs the October—requires ‘‘warning labels’’ on mail lists. This ‘‘opt-out’’ must also be Sentencing Commission to consider any commercial e-mail that includes clearly described in the e-mail itself, so providing sentencing enhancements for ‘‘sexually oriented material.’’ that users of e-mail are not forced to those convicted of the new criminal While we all want to curb spam and sift through pages of legalese to deter- provisions who obtained e-mail ad- protect our children from inappro- mine where they can stop unwanted e- dresses through improper means, such priate material, there are important mail. as harvesting, and those who know- first amendment concerns to regu- The senders of commercial e-mail ingly sent spam containing or adver- lating commercial e-mail in ways that must also provide a valid physical post- tising a falsely registered Internet do- require specific labels on protected al address so that they are not able to main name. We have also worked with speech. Such requirements inhibit both hide their identities. Finally, e-mail Senator NELSON on language directing the speaker’s right to express and the marketers must include notice that the the Sentencing Commission to consider listener’s right to access constitu- e-mail is an advertisement. Simply enhancements for those who commit tionally protected material. put, the CAN–SPAM bill finally gives other crimes that are facilitated by the In addition, the bill’s definition of consumers a measure of control over sending of spam. ‘‘sexually oriented material’’ as any their inboxes. I should note that the Criminal Spam material that ‘‘depicts’’ sexually ex- In cases where e-mail marketers Act, from which these provisions are plicit conduct seems overly broad. Ac- don’t comply with the CAN–SPAM bill, taken, enjoys broad support from ISPs, cording to Webster’s dictionary, ‘‘de- the penalties are severe. Spammers are direct marketers, consumer groups, pict’’ may mean either to represent by on the hook for damages up to $250 per and civil liberties groups alike. Again, a picture or to describe in words. It is spam e-mail with a cap of $2 million. the purpose of these criminal provi- my hope that the FTC, which has some This already high penalty can be tri- sions is to deter the most pernicious rulemaking authority with respect to pled if particularly unethical methods and unscrupulous types of spammers— this labeling requirement, will clarify are used, such as ‘‘computer hijacking’’ those who use trickery and deception that it applies to ‘‘visual’’ depictions to send spam by taking control of the to induce others to relay and view only. computers of legitimate users without their messages. Ridding America’s The CAN SPAM Act may not be per- their knowledge or for harvesting ad- inboxes of deceptively delivered spam fect, but it is a serious effort to address dresses from legitimate Web sites to will help clear electronic channels for a difficult and urgent problem. I sup- send spam. For criminal spammers who Internet users from coast-to-coast. But port its passage today, and commend try to hide their identities by using it is not a cure-all for the spam pan- the bipartisanship that was needed to false header information, damages are demic. get this done. not capped.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15948 CONGRESSIONAL RECORD — SENATE November 25, 2003 The CAN–SPAM bill also includes en- tion with the INS. Their FBI super- It had been renamed as the Bureau of hanced enforcement authority for the visors, however, refused those requests. Citizenship and Immigration Services. FTC to close possible loopholes for This information has been confirmed I suggested the FBI provide the results spammers and to keep up with techno- by NBC News’s chief investigative re- of its internal review to the BCIS so it logical developments. Granting the porter, Lisa Myers, in her thoroughly could determine who had been granted Commission the ability to keep pace researched piece that aired last week. citizenship or permanent residency with the new techniques of spammers My requests to the Department of while they were being investigated for is essential because it has become clear Justice for information that would de- terrorism. Again, I would think the De- in recent years that these criminals fine the size of this alleged hole in na- partment would be very concerned are growing increasingly sophisticated tional security and of this possible gap about the serious breakdown and lapse in their methods. in interagency cooperation have been in communication and would be eager The passage of CAN–SPAM today will refused repeatedly. to review its own files to quickly un- help to stem the tide of the toxic sea of I have modified my requests in order cover the names of individuals who spam. Clearly, consumers have been de- to accommodate the specific objections might have become citizens or perma- manding control over their e-mail raised by the Department. My modified nent residents while they were under inboxes and the passage of CAN–SPAM requests have also been refused due to investigation for terrorism-related ac- today will give consumers a key vic- new objections or, in some cases, old tivities. tory in the battle against criminal ones simply rephrased. After months of negotiations be- spammers. Here is a brief travelogue of my 10- tween my staff and the Department’s The PRESIDING OFFICER (Mr. COR- month journey in the bureaucracy of staff, I believed I had finally come up NYN). The Senator from Maine. the Department of Justice: On January with a solution that addressed all of Ms. COLLINS. Mr. President, let me 21, shortly after these allegations came the Department’s concerns. first return the Thanksgiving greetings to my attention, I wrote to the FBI Di- On July 3—keep in mind how much of my colleagues. I hope that they, too, rector, Robert Mueller, and asked that more time has yet elapsed—I received a are able to have a happy holiday with he provide the committee with the reply. Much to my astonishment, the their families and friends. names, dates of birth, INS registration answer once again was no. f numbers, and start dates of investiga- Two new concerns were raised: First, tions of all persons who have been the when the FBI and the INS were part of INVESTIGATION INTO THE LACK subjects of terrorism investigations the same overall Department of Jus- OF COORDINATION BETWEEN from September 10, 1991, through Sep- tice, they could share information for FEDERAL AGENCIES tember 10, 2001, in the 15 largest FBI this purpose legally; although, as we Ms. COLLINS. Mr. President, last field offices. I asked to have this infor- well know, they didn’t. Now that they week NBC News aired a report indi- mation delivered to my office by Feb- are in two different departments, the cating that suspected terrorists had ruary 4. Justice Department claims the Privacy been granted American citizenship or Well, I received no response at all Act prevents the sharing of this crit- permanent residency at the same time until February 28, when I received a ical information. they were under investigation by the reply from the Department categori- The second reason advanced was the FBI for their involvement in terrorism. cally denying my request. The primary FBI simply did not have the time or re- This well-researched piece reached the reason cited was that the Department sources to review its own files. Again, warranted and troubling conclusion had a longstanding policy of not pro- keep in mind how important it is for that this occurred despite advance viding Congress with information the Department to know how many knowledge within the Department of about people who have been inves- people were in this situation where Justice. tigated but not prosecuted. they were under investigation for ter- The NBC report revealed an alarming Among the other supporting reasons rorism and yet received either Amer- and dangerous lack of coordination be- were the separation of powers and—I ican citizenship or permanent resi- tween Federal agencies. The NBC piece am not making this up, Mr. Presi- dency. I would think the FBI, on its parallels credible allegations that first dent—a concern that providing Con- own volition, would be eager to re- came to my attention in January. gress with information that could help trieve that information. As the chairman of the Committee on it understand and remedy a situation At this point some of my Senate col- Governmental Affairs, to followup on so potentially damaging to our Na- leagues may be asking themselves a these allegations, I have made repeated tion’s security could, and I quote, few questions, if they have had some requests of the Department of Justice ‘‘gravely damage the nation’s secu- experience with congressional over- for information that would allow my rity.’’ sight. First, hasn’t the Justice Depart- committee to assess this potentially The Department did offer, at that ment many times in the past provided serious threat to our national security. point, to work with me to see if there Congress with information such as We have a saying up in Maine: You was an alternative. I eagerly took the interview summaries and documentary can’t get there from here. You may Department up on that offer, and I evidence related to individuals who have heard it, Mr. President. But when wanted to try to accommodate what- have been investigated but not pros- it comes to travel in my home State, it ever legitimate concerns the Depart- ecuted? Second, does this refute the is not really true. The roads may be ment might have. Justice Department’s argument about winding, and the route may not be all Thus, my staff talked repeatedly a supposedly sacrosanct longstanding that direct, but with persistence and with the Department during the next policy? Would such a policy, if it ex- patience, you can always get where you few months to craft a mutually agree- isted and were adhered to as strictly as need to go. able alternative approach. the Justice Department now asserts, However, when it comes to dealing On May 21, I submitted another much exempt the Justice Department from with the Department of Justice on this narrower request proposing that the effective congressional oversight? The very serious matter, it seems that you Department of Justice would conduct answer to these questions is obvious. cannot get anywhere. I have been per- its own review, a review I would think Although the Justice Department sistent, but my patience has pretty that the Department would be very would not review its own files to dis- much run out. eager to conduct once this threat was cover the extent of this problem and to The allegations that I received in brought to the Department’s own at- document whether terrorists had been January were these: In the course of tention. Moreover, the length of the re- granted citizenship or permanent resi- investigating foreign-born individuals view would be reduced from a decade to dency, its officials have indicated in for terrorism-related offenses, the FBI 5 years, and the scope would be reduced writing to me that this likely occurred. learned that some of these individuals from 15 field offices to just 5. Let me expand on that point. The were in the process of applying for nat- Now, by this time, of course, the INS Justice Department is not refuting the uralization or permanent residency. had been moved from the Department basic premise. In a July 3 letter I re- FBI agents requested permission to of Justice to the new Department of ceived from the Department, from share that critical important informa- Homeland Security. which I want to quote, it says:

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15949 We appreciate the Committee’s interest in listen to them. It is deeply disturbing Emily Holmgren, Farrell Oxley, and the question of whether individuals were that bureaucracy trumped national se- Sarah Smith all went above and be- naturalized or received permanent residence curity and common sense. yond the call of duty. They all have status while they were subjects of foreign I invite those agents to step forward served the Senate in their capacity as counterintelligence investigations and, in fact, we have indicated in conversations with again to make their concerns known by pages superbly. I did not want this day Committee staff our belief that this likely contacting my committee. We will lis- or this session to end without publicly occurred prior to September 11, 2001. We do ten, and we will act. acknowledging their remarkable con- not have data to support this view, but based I suggest the absence of a quorum. tribution, the quality with which they upon our knowledge of how Bureau and then- The PRESIDING OFFICER. The did their work and the gratitude we Immigration and Naturalization Services clerk will call the roll. have for the job they did. systems interfaced, we do not dispute the The legislative clerk proceeded to Yesterday was Melissa Meyer’s birth- premise. call the roll. day. I wish her a happy birthday be- This is serious. In other words, sus- Mr. DASCHLE. Mr. President, I ask sides, but to each of our pages—those pected terrorists most likely received unanimous consent that the order for who may still be here and those who citizenship or permanent residency in the quorum call be rescinded. have gone, those who served—again let the country they swore to destroy be- The PRESIDING OFFICER. Without me express on behalf of the entire Sen- cause the FBI and the INS did not talk objection, it is so ordered. ate our heartfelt thanks, our best wish- to each other. This is extraordinary. f es for a happy holiday season, and, per- During my negotiations with the De- haps most importantly, our sincere partment of Justice, I had suggested SENATE PAGES wish that they come back again in the Privacy Act concern the Depart- Mr. DASCHLE. Mr. President, the some other capacity, because we need ment raised could be dealt with if the other day the distinguished majority them. FBI passed the sealed findings of their leader came to the floor to call atten- I yield the floor, and I suggest the ab- review through my committee which tion to the special contribution made sence of a quorum. then could, in turn, pass the findings by a number of our pages who volun- The PRESIDING OFFICER. The along to the BCIS. That wouldn’t work, teered to stay beyond the time that clerk will call the roll. Justice said, because it would violate— was originally scheduled for their expe- The legislative clerk proceeded to you got it—their longstanding policy rience in the Senate. I wanted to join call the roll. against providing information to Con- with him in expressing our heartfelt Mr. BOND. Mr. President, I ask unan- gress about investigations that did not gratitude to each of those pages, not imous consent that the order for the result in prosecution. only those pages who stayed as volun- quorum call be rescinded. The PRESIDING OFFICER. Without If you think we have been driving teers but to those pages who have been objection, it is so ordered. around in circles, you are right. The with us this past session. Justice Department refuses to provide Pages play a very important role in f my oversight committee with informa- the Senate. They are not only spec- HELP AMERICA VOTE ACT tion because of a ‘‘longstanding pol- tators to the democratic experiment, Mr. BOND. Mr. President, earlier icy.’’ We suggest a way around that but they are real participants. Each of today I spoke briefly about the need to longstanding policy, and the Depart- them becomes all the more adept at all get our appropriations bills, many of ment cites the Privacy Act. We suggest of their responsibilities as the session which are now included in the so-called a way to avoid the Privacy Act con- unfolds and they become students of omnibus appropriations measure—some cerns, and we find ourselves back to Government in a unique and special of us think it is an ‘‘ominous’’ appro- the longstanding policy. way. priations measure—passed prior to the This is simply unacceptable. We I have always been an admirer of our end of calendar year 2003. Among the know some terrorists and supporters of pages because of the great job they do things I pointed out were some very terrorism seek out the protective guise and the little attention they get. I important measures. This body passed of American citizenship. We know a hope they leave with an appreciation of something called the Help America lack of coordination between the rel- Government. Vote Act, which I think focused atten- evant agencies allowed this unaccept- When we have graduation for our tion on two very important problems. able situation to occur. What we don’t pages, I oftentimes urge them to con- My colleagues on the other side of the know is how many times it has hap- sider this the first installment of their aisle wanted to make sure we had up- pened, how broad this problem is, how public experience. I urge them to con- to-date voting machines to make sure many people are involved and, most sider coming back, not only as mem- everyone who was entitled to vote important of all, what has been done to bers of the staff, but hopefully one day could vote to remove barriers to vot- stop it, to close that communications as elected Members themselves. I am ing. We supported that. gap. absolutely confident at some point We also got support for something I The Committee on Governmental Af- some will. thought was very important as well, fairs will pursue this matter by con- I will never forget Senator David and that was to stop the rampant fraud tinuing its investigation. I have again Pryor, MARK PRYOR’s father, telling that has come back as a result of post- written to the FBI Director to request the story that when he was a page he card registration. the records needed by the committee. I left a penny in the Capitol and prom- I have the honor of representing an have now focused my request on those ised himself he would come back and area that has probably the dubious dis- individuals who were named in the pick up that penny as an elected offi- tinction of being one of the vote fraud NBC report. It is not a burdensome re- cial. He did. I think it was a testament centers perhaps in the universe. The quest. It is not an onerous request. It is to the dreams, aspirations, and re- city of St. Louis, as I have said many a request that is very specific, time markable persistence that oftentimes times before, is famous for voting rolls limited, and narrow in scope. There is our pages have. clogged with people registered one, no reason for the Department of Jus- As I noted, there are a number of two, three, even four times; vacant lots tice not to promptly turn over these pages who not only served the time with small cities worth of registered documents to the committee. that was expected of them but stayed voters; and even my favorite dog, Ritzy I want to acknowledge those coura- on afterward to accommodate the elon- Meckler, a 13-year-old Springer Spaniel geous FBI agents who wanted to do the gated Senate schedule. Many others of- who was registered there. right thing, tried to do the sensible fered to stay, but because they had We have had some great theological thing, who said: Let’s share this crit- schedules that were in conflict were experiences. For the last general elec- ical information, when they discovered not able to. There are seven pages who tion, a very prominent and outstanding suspected terrorists were trying to be- stayed on until the last couple of days alderman of the city of St. Louis reg- come American citizens or permanent and in a couple of cases all the way up istered to vote on the 10th anniversary residents. It is deeply disturbing that until today. Margaret Leddy, Melissa of his death. It is a wonderful theo- in some cases their supervisors did not Meyer, Krista Warner, Yael Bortnick, logical statement. It does not do much

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15950 CONGRESSIONAL RECORD — SENATE November 25, 2003 for me as a political scientist, but he Senator MIKULSKI and I fought long that is to vote up or down and pass the registered by postcard. and hard to get the funding that we appropriations that are so essential for After the 2000 election, when we needed to try to catch up to the back- many areas where continuing resolu- found tremendous vote fraud problems log in the VA. People with service-re- tion funding will be inadequate. in St. Louis, they had a mayoral elec- lated injuries, permanent disabilities, I urge the leadership to work on this. tion scheduled for the spring of 2001. low-income people, homeless people, We need it in many areas. The last day of registration, 3,000 post- are being denied, for months, the abil- I yield the floor. cards showed up to register voters for ity to get in to see a doctor because so The PRESIDING OFFICER (Mrs. that election. It did not take long for many new enrollees have come into the DOLE). The Senator from New Mexico. observant election officials to note system. This body expanded the eligi- Mr. BINGAMAN. I thank the Chair. that all of those cards appeared to be bility. We expanded the eligibility, but (The remarks of Mr. BINGAMAN per- in the handwriting of one or two peo- the money has not kept up. So we are taining to the introduction of S. 1966 ple. They started checking and they trying to play catchup, and there is an are located in today’s RECORD under found that, lo and behold, there were a additional $2.9 billion above this year’s ‘‘Statements on Introduced Bills and lot of phony people registered. funding level for the VA that cannot Joint Resolutions.’’) Terribly, the deceased mother of the begin until the bill is signed. We are al- The PRESIDING OFFICER. The Sen- prosecuting attorney of the city of St. ready a couple of months into the fis- ator from Texas. Louis was registered to vote. This cal year 2004. We would be 6 or 7 Mr. CORNYN. Madam President, I brought about some action. Several of months in before we could get funding have some remarks I would like to the people involved in that little proc- if we wait until next year. make shortly, but I know Senator LAU- ess came together and decided to de- My staff tells me there are a number TENBERG got here before I did. He told stroy the records. Since that time, I of other things that will happen. Spe- me he had about 10 minutes. I know have read in the paper that the pros- cifically, noninstitutional long-term the majority leader may have some re- ecuting attorney in St. Louis has filed care cannot be increased. The VA has marks, and, of course, I would defer to significant criminal indictments for placed a high priority, providing a high him. those people. Unless there is objection, I would However, I am proud to say that the quality of life, long-term care for each like to ask—well, I will just defer to St. Louis City election board is using veteran. The VA planned to expand the the majority leader at this time. new laws passed in the State of Mis- program by over 20 percent this year The PRESIDING OFFICER. The ma- souri to tighten up on these postcard because of the demand. The VA, with- jority leader. registrations. Prior to the Help Amer- out these funds, will not be able to ex- Mr. FRIST. Madam President, if I ica Vote Act, you couldn’t even check pand the long-term care services under could just take 3 or 4 minutes, and on people who registered by mail. The the fiscal year 2003 funding authority. then I know the distinguished Senator process for getting voters off the list, if Second, pharmacy costs will continue from New Jersey has his comments to they are improperly registered, was eating the budget. For fiscal year 2003, make. byzantine, and took years to do. But pharmacy costs rose over 11 percent under the Federal standards, there are and the VA is incurring increasing de- f mands for prescriptions each month. still areas where these nonexistent or THANKING THOSE WHO WORKED The continuing rise in demand for pre- duplication voter registrations can be ON THE MEDICARE PRESCRIP- scriptions is stripping funds from other made by mail. TION DRUG AND REFORM BILL We provided new powers and new re- priority areas as VA continues to oper- Mr. FRIST. Madam President, I, just sponsibilities for local election offi- ate under last year’s funding levels. very briefly, want to thank people for a cials in the Help America Vote Act. We Third, new community-based out- lot of hard work over the last several promised to fund them. So during the patient clinics will be curtailed. The months. process of debate on the appropriations VA has 48 high-priority community- Earlier today, we did pass a historic bills, Senator DODD of Connecticut, based outpatient clinics ready to go bill that is notable for the fact that it Senator MCCONNELL of Kentucky, the that can’t move forward because they does help so many people in a very di- Chair, and the ranking member of the don’t have the funds under the con- Rules Committee, when this passed, tinuing resolution. rect way. I think it is gratifying to all came to the floor and I supported Finally and most important, and of us as U.S. Senators. But that out- them. We got over $1 billion to fund the something I hope will be significant to come is made possible by a lot of hard Help America Vote Act. That lan- each one of us here, the waiting lists work. I will be very brief, but I do want guishes in the omnibus appropriations will continue to lengthen. Continued to thank the appropriate people. Again, bill. That money is necessary to sup- operations under a continuing resolu- I leave out so many people. port local efforts to carry out the man- tion will force VA to curtail hiring of But, first, I thank the President of dates under the Help America Vote new physicians and nurses. The VA ex- the United States. President Bush does Act. periences about a 1-percent normal at- deserve credit for making this vision of We all thought that once we passed trition rate of physicians per month. being able to reach out and help people that law we were going to ensure hon- By January, VA’s waiting list will rise as soon as possible in a direct way with est elections in 2004, elections where by over 10,000 from the projected level. prescription drug coverage possible. everybody entitled to vote could vote. VA patients, who should be getting That vision really did set the template The problem is, if we don’t get around our top priority attention, are going to for all of us. We pulled together and to passing the funding for the Help find the waiting list longer. That is passed this bipartisan bill. America Vote Act until we come back why I renew my appeal to the leaders Secretary Tommy Thompson, the next year, the process drags on and on on both sides to deal with the omnibus Secretary of Health and Human Serv- and we are probably into March before appropriations, to come to some agree- ices, and Tom Scully, the Adminis- the money goes out—which is too late ment, either to take this on UC, or trator of the Centers for Medicare & to make many of the changes and to take it by voice vote, with the distin- Medicaid Services, spent literally hun- build the infrastructure and to buy the guished chairman and ranking member dreds of hours working on this legisla- equipment that is needed to carry out on our side and the other side to come tion. the requirements of the Help America to closure on it, or, if need be, bring us I participated on the conference com- Vote Act. back in session. mittee and had the wonderful oppor- I have talked with other Senators The House is going to come back into tunity of working side by side with about the many important measures session on December 8, I understand, them, consulting with them, seeking that are included in that Omnibus Ap- and vote on the bill. We have an obliga- counsel, receiving their input. propriations Act. But I want to call the tion to come in—either if there is a In the Senate, Finance Committee attention of my colleagues to some fur- unanimous consent agreement granted chairman, CHUCK GRASSLEY, and rank- ther information that I have developed to do it by voice vote or if there is ing member, MAX BAUCUS, really did about the Veterans Affairs budget. not—and do what we are paid to do and put partisanship aside from day 1,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15951 when we first started this Senate bill, ward to listening to what he has to say respect. I hope he and his family will and worked tirelessly from beginning on a very important issue. enjoy the Thanksgiving holiday. to end to deliver on the promise that The PRESIDING OFFICER. The Sen- As we muse over what happened in we all have to the American people. In ator from New Jersey. the last week, since Senator FRIST is a large part it was accomplished because Mr. LAUTENBERG. Madam Presi- physician, I hope he can prescribe a of their work and their partnership in dent, first, I want to say thank you—— way we can heal some of the bruises many ways. Mr. CORNYN. Will the Senator yield that occurred in this last contentious Senator JOHN BREAUX deserves huge for a brief UC? period. credit. I have worked with Senator Mr. LAUTENBERG. Sure. f BREAUX over the last 7 years. There The PRESIDING OFFICER. The Sen- UNANIMOUS CONSENT REQUEST— was a Breaux-Frist bill that came out ator from Texas. S. 1602 of the Bipartisan Commission. He has Mr. CORNYN. Madam President, I demonstrated real leadership and, in ask unanimous consent that following Mr. LAUTENBERG. Madam Presi- my mind, has been at it in terms of the the remarks of the Senator from New dent, it is about 26 months since the as- final product longer than anybody in Jersey—I believe he told me he would sault on our families, our people, and the Senate, working together on the speak for about 10 minutes or so—I be our invincibility that took place at the model we ended up with. recognized for remarks that I might World Trade Center, at the Pentagon, All members of the conference com- make at that time. and in a field in Pennsylvania where it mittee showed a degree of dedication Mr. LEVIN. Madam President, re- was so heroically disrupted on its way and resolve that is seldom seen in ei- serving the right to object, and I will to a target. Therefore, I am outraged ther Chamber. There were Senators not object, I wonder if the Senator that we can’t find enough time to fur- ORRIN HATCH and DON NICKLES and might add to that UC—about how long ther pay attention to the memory of JOHN KYL. We simply would not have does the Senator plan to speak, so I the 9/11 victims by passing a bill to ex- reached this point if we had not worked could then try to amend that UC to tend the deadline for victims’ families, together with strong leadership on the place myself in order? enabling them to apply for victims’ part of the conferees. Mr. CORNYN. Madam President, I compensation which is in a fund that In addition, there were people such as would make my remarks no longer was passed in the Senate and passed in Senators JEFFORDS, GREGG, HAGEL, EN- than 15 minutes. the House and that is about to expire. SIGN, WYDEN, and SNOWE, who have fo- Mr. LEVIN. Madam President, I ask Though we have just been through a cused on a tripartisan, bipartisan ap- the Senator if he would modify his difficult and contentious period with proach to health care reform, which unanimous consent request to allow some acrimony, no matter how much I has been instrumental in many ways. the Senator from Michigan, and then I or others might have agreed with the Senators BUNNING, THOMAS, SMITH, believe the Senator from Washington, outcome, our business for this year is LOTT, and SANTORUM all made huge to each have 10 minutes following his not yet done. We are facing the expira- contributions working through the Fi- remarks? tion of this compensation fund, and nance Committee. Mr. CORNYN. That is acceptable. there are lots of families who have yet Members of this body who voted The PRESIDING OFFICER. Is there to participate in this program that was against final passage also contributed objection? designed for them. in remarkable ways to this product. Mr. LAUTENBERG. No objection, The need for this 9/11 victims bill is I do also want to mention, just in Madam President. urgent. If we don’t vote on it before passing, the House leadership because The PRESIDING OFFICER. Without Thanksgiving, this bill will become ob- the House leadership, especially Speak- objection, it is so ordered. solete because the current filing dead- er DENNIS HASTERT and Leader TOM The Senator from New Jersey. line is December 22, 2003. DELAY, deserve very special recogni- Mr. LAUTENBERG. Madam Presi- We are reminded that a truly joyous tion. I worked very closely, and our dent, I would just note that the gra- part of the year is just beginning. It leadership worked very closely with cious statement of the Senator from starts with Thanksgiving, goes through them, especially in the final 2 weeks of Texas said ‘‘10 minutes or so.’’ I would to Christmas and Hanukkah. It is just that conference. hope, for clarification, if ‘‘or so’’ is 3 or around the corner. A lone, anonymous I had the opportunity to call yester- 4 minutes longer, it will not be a viola- Republican Senator is holding up a bill day Chairman BILL THOMAS. He is real- tion of the unanimous consent agree- that would make these holidays less ly the mind behind what we accom- ment that we just heard. stressful for the 9/11 families. As we re- plished. He was able to assimilate very f quested or will request in a unanimous complex policy and put it into a por- consent request, the Senate must take trait that ultimately became the sub- COMMENDING THE MAJORITY up and pass this bill today in order to strate for this bill. He demonstrated LEADER fulfill our commitments to compensate real leadership, real patience. Mr. LAUTENBERG. Madam Presi- the victims’ families. Also, chairman of the House Energy dent, before the majority leader leaves So far, out of approximately 3,000 and Commerce Committee, Chairman the floor, I want to say that I have killed, about 1,800 families, or only 60 BILLY TAUZIN, we simply would not be been back here about a year now, and percent of those eligible, have filed here without his active participation working with the majority leader, claims on behalf of relatives who were as well. when he took office, has been an inter- killed. This is far too low a percentage. My dedicated staff—Dean Rosen, esting and a positive experience. We Helping the families of 9/11 victims is Elizabeth Scanlon, Rohit Kumar, and are all cognizant of the wonderful work not just the responsibility of the Sen- Craig Burton—put in hundreds of hours that Dr. FRIST has done in his time be- ators in the Northeast, it is a national and poured over thousands of details. fore the Senate and how he served pop- commitment we made that we owed to Lee Rawls, Eric Ueland, David ulations so desperately in need. He those who suffered on that tragic day. Schiappa and his wonderful staff here took the risks and the time necessary I am distressed by the fact that be- really made it possible. to do that. cause of somebody in the majority, So in closing, to everyone who We all congratulate him for that, for having just spent 39 hours of time talk- worked so hard and have given so much his generosity of spirit, and his skill as ing about a handful of judicial nomi- of themselves, working hard on this ef- a surgeon and physician. nees, we can’t even commit a few min- fort, I thank them. I thank you, the I have found on the rare occasions utes today to take up a simple but crit- Senate thanks you, America thanks that I—I hope they are rare—called on ical bill and pass it. you, and, most of all, America’s seniors Senator FRIST for an ear, he was more The bill is vital to thousands of thank you. than willing to lend it. If he disagreed, Americans who lost loved ones or who Madam President, I appreciate the he said so. And if he agreed—even were themselves injured in the 9/11 at- Senator from New Jersey giving me the rarer—that was done with dispatch and tacks. Many of these families will floor for those few minutes. I look for- a straightforwardness which I greatly mourn forever. Many of these families

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15952 CONGRESSIONAL RECORD — SENATE November 25, 2003 cannot yet bring to closure the terrible went to law school and her friend went JUDICIAL CONFIRMATION tragedy that befell their families. They to work for Cantor Fitzgerald and was PROCESS are just not emotionally ready to begin one of the 700 and left 3 young children Mr. CORNYN. Madam President, I the process of closure by applying to and a husband behind—so unwilling to wish to speak for the next few minutes the victims compensation fund while believe that his wife, the mother of about the judicial confirmation proc- their grief is still surrounding them. these children, was taken away, that ess, now that we have passed the Medi- Imagine the Thanksgiving table he visited hospitals in the area for care bill, which represents perhaps the without a son or a daughter or a moth- some time after the attack took place, single largest accomplishment of this er or a father or a child. How sad that hoping that there was an error some- session—a session filled with many im- is. And we walk away from here not place, that he might find his wife, and portant accomplishments. I want to re- yet completing the task. that some way they would be able to visit the judicial confirmation process I quickly point out, there are no ad- continue. But she is gone. because I think it is perhaps the one ditional funds required. Those funds When I spoke to the people from Can- issue that has the greatest potential were allocated 2 years ago when the tor Fitzgerald, about 4,000 people were for constructive action in this body, fund was established. It is a rather con- there. And, again, this company lost and the one issue that has the most po- fusing application, 40 pages. The dif- 700. The people they touched is a far tential for destruction of constructive ference is, if one applies to the fund, greater number than the number who action in this body. there is a settlement available. But in actually perished. They were looking The American people have seen accu- some cases, it may seem better for to us for some leadership, some rec- sations fly back and forth in the Sen- them to resort to the courts. That is ognition that they paid a price for ate as we have observed partisan mi- why we have the system we have. their sheer courage, many of whom nority filibusters of President Bush’s It is hard to proceed and leave here died helping others, including the po- judicial nominees. As a relatively new without trying to do something about licemen and the fire personnel, the Member of the Senate, I have no per- the condition in which we leave these emergency personnel. sonal stake in these grievances over families. We should help them get There are all kinds of stories, includ- past perceived slights or actions. In through the holiday period and encour- ing the one about the man who walked fact, as the Chair knows, in April, all age them a little bit further. up a flight to try to carry a woman 10 freshmen Senators wrote a letter to The fund was estimated to cost $5 bil- down and both of them perished in the the Senate leadership asking that we lion by Mr. Feinberg, who is the master process. The stories are replete with have a fresh start when it comes to the in charge of the distribution. He is an heroism and courage—but dying. way we approach this process because, outstanding lawyer who took this job, I ask unanimous consent that the Ju- as we all know, any tactic or strategy volunteered to do it. He notes that diciary Committee be discharged from used by a partisan minority now to ob- only $1 billion out of $5 billion that further consideration of S. 1602 and struct President Bush’s nominees, if might be required or available were ex- that the Senate then proceed to its im- successful, if allowed to proceed, will pended. Many others have been wait- mediate consideration; that the bill be no doubt be sought to be used in the ing. Some victims’ families are non-na- read the third time, passed, and the event a Democrat takes the White tive-English speakers, working hard to motion to reconsider be laid upon the House and Republicans find themselves understand, get people to help them table, without intervening action or in the minority of this body. comprehend the application forms. debate. I ask unanimous consent that the Many others have been waiting to re- The PRESIDING OFFICER. Is there letter we freshmen Senators wrote to ceive the required information from objection? the leadership be printed in the their loved ones’ former employers in Mr. CORNYN. I object, Madam Presi- RECORD order to complete the forms. dent. . There being no objection, the mate- S. 1602, the bill that Senator LEAHY The PRESIDING OFFICER. Objec- and I introduced, keeps our promise to tion is heard. rial was ordered to be printed in the the 9/11 victims’ families by extending Mr. LAUTENBERG. Madam Presi- RECORD, as follows: the deadline to apply to the fund to the dent, I know I have to surrender the U.S. SENATE, end of 2004, roughly a year from now. microphone. I do it sadly, because I Washington, DC, April 30, 2003. don’t believe that the Senator from DEAR SENATORS FRIST AND DASCHLE: As the We are simply giving these grief- ten newest members of the United States stricken families some more time to Texas, who raises the objection on be- Senate, we write to express our concerns fill out this cumbersome application. half of the Republican Party, really about the state of the federal judicial nomi- Senators BOXER, CLINTON, CORZINE, would object to extending a deadline— nation and confirmation process. The appar- DODD, DURBIN, LIEBERMAN, and SCHU- no more money and nothing else has to ent breakdown in this process reflects poorly MER are cosponsors of this bill. be done except to say to these people on the ability of the Senate and the Admin- I think it is really unfair that the that we have not forgotten. We remem- istration to work together in the best inter- Republican majority will not permit us ber that you died when America’s in- ests of our country. The breakdown also dis- to just move this bill along. President vincibility was shattered. That is a day serves the qualified nominees to the federal bench whose confirmations have been de- Bush and other Republicans were anx- that will mark our coming and going layed or blocked, and the American people ious to appear with the 9/11 families forever. One need only remember what who rely on our federal courts for justice. soon after the tragedy to show that happens every time you take your We, the ten freshmen of the United States they shared in some way their grief shoes off at the airport, or you are Senate for the 108th Congress, are a diverse and to try to alleviate their distress. forced to show your ID, or you are group. Among our ranks are former federal Now the cameras are gone. We should searched with a magnetic wand, or executive branch officials, members of the not, however, forget that we have these whatever, or the fence surrounding the U.S. House of Representatives, and state at- obligations to these families. This bill Washington Monument so you cannot torneys general. We include state and local officials, and a former trial and appellate is unfinished business with a deadline. see it at ground level when you pass by judge. We have different viewpoints on a va- I had hoped the majority leader and on Constitution Avenue and fortresses riety of important issues currently facing my Republican colleagues would allow are being built out there. They did this our country. But we are united in our com- us to pay our respects to these families to us and we are going to have to live mitment to maintaining and preserving a who need our help. with that. fair and effective justice system for all On September 11 of this past year, I I wish reconsideration would be Americans. And we are united in our concern spoke at an event in Central Park, NY, taken here in a discussion with the ma- that the judicial confirmation process is bro- that was arranged by a company called jority leader and the Senator from ken and needs to be fixed. Cantor Fitzgerald. They lost 700 of In some instances, when a well qualified Texas, if he cares to be involved, and nominee for the federal bench is denied a their 1,000 employees. One of those who that we can pass that bill. vote, the obstruction is justified on the perished was a very close friend of my I yield the floor. ground of how prior nominees—typically, the oldest daughter. They had worked to- The PRESIDING OFFICER. The Sen- nominees of a previous President—were gether at another firm. My daughter ator from Texas is recognized. treated. All of these recriminations, made by

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15953 members on boths sides of the aisle, relate to Let me go over a few of the examples. with those plans anyway. The memo- circumstances which occurred before any of You will see here on this chart to my randum expressed concern about the us arrived in the United States Senate. None left, one internal memorandum, dated propriety of scheduling hearings based of us were parties to any of the reported past offenses, whether real or perceived. None of November 2001. It was reported that on the resolution of a particular case us believe that the ill will of the past should liberal special interest groups urged but went on to say, ‘‘nevertheless, we dictate the terms and direction of the future. Senate Democrats to oppose the nomi- recommend that Sixth Circuit nominee Each of us firmly believes that the United nation of Miguel Estrada ‘‘because he Julia Scott Gibbons be scheduled for a States Senate needs a fresh start. And each has a minimal paper trail, he is Latino, later hearing.’’ of us believes strongly that we were elected and the White House seems to be Even acts that are widely recognized to this body in order to do a job for the citi- grooming him for a Supreme Court ap- as improper and inappropriate seem to zens of our respective states—to enact legis- have become fair game for obstruction- lation to stimulate our economy, protect na- pointment.’’ tional security, and promote the national Such comments discredit the claim ists today. welfare, and to provide advice and consent, made by those who object to this nomi- Not only have we seen obstruction, and to vote on the President’s nominations nation and who oppose Miguel we have seen destruction when it to important positions in the executive Estrada’s confirmation to the DC Cir- comes to the reputation of the nomi- branch and on our Nation’s courts. cuit Court of Appeals and who say that nees who have been proposed by the Accordingly, the ten freshmen of the ethnicity played no part in their ob- President by the use of vicious ad United States Senate for the 108th Congress hominem character attacks. In public, urge you to work toward improving the Sen- struction. This memo stands in stark ate’s use of the current process or estab- contrast to that claim. But the one leading Democrat Senators have called lishing a better process for the Senate’s con- thing I hope we can all agree to is that this President’s judicial nominees ev- sideration of judicial nominations. We ac- the Senate should not make any deci- erything from turkeys to neanderthals, knowledge that the White House should be sions about judicial nominees, or any- to kooks, to selfish, despicable, and included in repairing this process. one else, period, based on their eth- mean. All of us were elected to do a job. Unfortu- nicity or their race. Such actions de- In memos, Democrats—the ones in nately, the current state of our judicial con- the minority who obstruct the Presi- firmation process prevents us from doing an mean not only this body but all of us, important part of that job. We seek a bipar- and the American people did not elect dent’s consideration of his nominees— tisan solution that will protect that integ- us to do any such thing. seem to scrape the bottom of the barrel rity and independence of our Nation’s courts, Yet this memo makes clear—or at when it comes to vituperation, describ- ensure fairness for judicial nominees, and least adds credence to the argument ing these widely respected nominees as leave the bitterness of the past behind us. that but for his ethnicity Miguel alternately ugly, heartless, and even, Yours truly, Estrada would be on the Federal bench as was reported in today’s edition of John Cornyn, Lisa Murkowski, Elizabeth the Washington Times, Nazis. This lan- Dole, Norm Coleman, Lamar Alex- today. ander, Mark Pryor, Lindsey Graham, In another memo, dated November 7, guage is deplorable and simply has no Saxby Chambliss, Jim Talent, John E. 2001, Democratic staff asked the ques- place in the Senate. Sununu. tion, ‘‘Who to fight?’’ Which of Presi- After reading these offensive memos, Mr. CORNYN. Madam President, I, dent Bush’s judicial nominees should we cannot, nor should America, harbor frankly, think it would be just as be opposed? The answer: Texas Su- any further illusions about what is wrong for that to happen as I do for a preme Court Justice Priscilla Owen. going on here. The current mistreat- partisan minority to stand in the way Why? Because ‘‘ . . . she is from Texas ment of nominees is not politics as of a bipartisan majority of the Senate, and was appointed to the Supreme usual, it is politics at its worst and ex- who stand ready to confirm many of Court by Bush, so she will appear paro- poses those who would march in lock- President Bush’s fine nominees. chial and out of the mainstream.’’ step with ideologically driven special I guess just when you think this I served for 4 years on the Texas Su- interest groups whose main purpose is process cannot get any worse, it does. preme Court with Priscilla Owen. I to defeat these nominees—and not just The credibility of this process has re- know Priscilla Owen. It is obvious to defeat them but destroy their reputa- cently been called into question by the me that the people who wrote this tion. disclosure of several internal memos memorandum do not. I am sad to say that as long as these written for Democratic Senators on the Nevertheless, they decided to use the tactics continue without the con- Judiciary Committee. terms ‘‘parochial’’ and ‘‘out of the demnation they deserve, we will see Madam President, as the Chair mainstream,’’ and to suggest that sim- only further degradation and a down- knows, and as all Members of this body ply because she was from Texas, she ward spiral of the judicial confirmation know, there is currently an investiga- could be cast in an ignorant and unfair process. In the end, we all know who tion ongoing by the Sergeant at Arms stereotype, which should never be ap- will pay the price. It is the American into the circumstances under which propriate, even in discussing judicial people who will pay the price. these memos became public to deter- nominees. Just so we understand why this is so mine whether there was any wrong- I believe firmly that these nominees critical to this process, why these doing in obtaining those memos, and, should be judged on their merits, not memos, and what they reveal is so un- of course, we must withhold judgment on their home State, and certainly not fortunate and deplorable, in one of the until that investigation is complete on the basis of any ignorant or ill-in- memos it was made clear that one of and the facts are made known to the formed stereotype. the special interest groups that was Members of this body. I trust we will An April 2002 memorandum indicates monitoring this process would ‘‘score do whatever the law and justice re- some Democrats wanted to delay judi- this vote in the 2003 CONGRESSIONAL quires, and that we will follow the cial nominees, not because of any lack RECORD.’’ In other words, these special truth, wherever it may lead in the in- of qualifications but because they interest groups are not only dictating vestigation and take appropriate ac- wanted to influence the outcome of the tune, expecting Senators to dance tion. I certainly support that. particular cases, a very troubling sug- to that tune, but told that if they do These memos are available on the gestion. not, they will be punished because Web at http://fairjudiciary.campsol.com. According to one memorandum, their vote will be scored in mass mail- The fact is, these memos have now Elaine Jones of the NAACP Legal De- ings and advertising and other publica- entered into the public domain, and I fense Fund would like the committee tions issued by the various special in- think it is important that we address to hold off on any Sixth Circuit nomi- terest groups in the next election. This these memos and what, in fact, they nees until the University of Michigan reveals something that should be very confirm about the obstruction and de- case regarding the constitutionality of disconcerting to everyone and cer- structive politics that have taken hold affirmative action and higher edu- tainly to the American people. of the judicial confirmation process cation is decided en banc by the Sixth The question that perhaps people and which have left me concerned that Circuit. The memo writer appears to who are paying attention, if there are there is no foreseeable end to the cur- have understood that such tactics were people paying attention to my remarks rent gridlock. highly improper but chose to proceed today, would ask is: So what? What

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15954 CONGRESSIONAL RECORD — SENATE November 25, 2003 does this mean? Why should we care? UNEMPLOYMENT COMPENSATION Americans are going to see their bene- In the brief moments remaining, I will Mr. LEVIN. Madam President, after fits exhausted without the benefit of address why the American people the Senate adjourns for the year, the the Federal program. should care and why we should care. plan is for the Senate to reconvene on In the month of January alone—this We have too often seen an unelected, January 20 of next year. Unless Con- coming January—as many as 400,000 lifetime-tenured judiciary make deci- gress acts to extend Federal unemploy- unemployed workers are going to ex- sions based on dubious constitutional ment benefits, the so-called Temporary haust their State benefits if we don’t grounds that would never enjoy the Extended Unemployment Compensa- act. support of the vast majority of the tion Program, before we adjourn, hun- The number of long-term jobless— American people. Just one that comes dreds of thousands of unemployed that is the people who have been job- to mind is a recent ruling of the Ninth Americans face the holidays with the less 6 months or more—grew in October Circuit Court of Appeals saying that prospect of losing their unemployment to over 2 million workers for the first the words ‘‘under God’’ in the Pledge of benefits on January 1. This lack of ac- time since this recession began. That Allegiance may not be uttered in class- tion would put us in exactly the same represents an increase of over 700,000 rooms because it violates the first situation as last year: going home to workers compared to March 2002 when amendment separation of church and our loved ones without helping jobless the current Federal unemployment state. Americans during the holiday season. program was most recently authorized. At a minimum, we should extend the The Federal extended benefits pro- That does not make any sense. It cer- gram which was implemented in the tainly cannot be the law. Yet we have current Federal Unemployment Assist- ance Program for 6 months. At a min- last recession did not end until the lifetime-tenured judges who are stating economy had added nearly 3 million imum, we should stand by America’s that as if it were the law. Thank good- jobs to the prerecession level. The cur- workers and help the unemployed dur- ness that decision will be reviewed, and rent unemployment program is sched- I hope expeditiously reversed, by the ing this holiday season. According to the Center for Budget uled to end, although there are 3 mil- U.S. Supreme Court. lion fewer private sector jobs than We have all sorts of strange things and Policy Priorities, in January, about 90,000 current unemployed work- when this recession began. happening today. One recent article Renewing this Temporary Emergency ers are likely to exhaust their regular caught my attention: When current Su- Unemployment Compensation Pro- State benefits each week. Absent con- preme Court Justices in a recent gram, this Federal benefits program, is gressional action, starting January 1 speech said the decisions of other coun- essential under these circumstances. next year, workers who exhaust their tries’ courts should be persuasive au- The comparison on this chart is dra- thority in America’s courts when inter- regular State benefits will no longer be matic between what we did in prior re- preting what our law is, we ought to eligible for the additional Federal ben- cessions and this recession. look to the law of the European Union efits. The only people who will con- In prior recessions, we had twice the or other countries, perhaps, to guide tinue to receive those benefits will be level of Federal benefits as we do now. these American judges in interpreting those who have begun to receive their We have a modest 13 weeks, half the American law and the American Con- Federal benefits by January 1. level, and in the prior recession we stitution. Justice Breyer recently This chart shows where we are in waited to end the Federal program found useful, in interpreting the Amer- terms of the Federal benefits. In the re- until millions of new jobs had been cre- ican Constitution, decisions by the cession of 1974–1975, there were Federal ated. Privy Counsel of Jamaica and the Su- benefits accumulating to 29 weeks. Unless we act today, we will have preme Courts of India and Zimbabwe. That is in addition to the 26 weeks of lost 3 million jobs and still will be end- Later, Justice Kennedy of the United State benefits. In the 1981–1982 reces- ing a Federal program which is so criti- States Supreme Court cited a decision sion, again, 29 weeks of Federal bene- cally essential to those people who are of the European Court of Human fits. In the 1990–1991 recession, 26 weeks unemployed. Rights in a decision handed down this of Federal benefits. Currently, until The Department of Labor’s an- month. Justice Ginsburg, joined by December 31 of this year, there will be nouncement that 125,000 jobs were cre- Justice Breyer, cited a decision by the 13 weeks of Federal benefits that are ated in October and that the unemploy- International Convention on the Elimi- offered in addition to the 26 weeks in ment rate dropped to 6 percent, the nation of All Forms of Racial Discrimi- each of our States. That is what will first decline since I don’t know how nation in a recent case. It goes on and disappear December 31. long—I don’t have the exact date here, This is a very modest program we on. but in a long time—presents a glimmer have going. This is half of what we Anyone who is paying attention to of hope. It is a glimmer of hope at least have done in the prior two recessions in some places, but in my home State what Federal judges are doing today in terms of Federal benefits, slightly of Michigan the unemployment rate is and what they view in terms of their less than half of what we did in the re- 7.6 percent. obligation to interpret the law have to cessions of 1974–1975 and 1981–1982, but We, like most other States, are very ask the question: What is going on? exactly half of what we did in the 1990– dependent upon a minimum level of un- What would James Madison, Alexander 1991 recession. employment benefits. It would be un- Hamilton, Thomas Jefferson—what Currently, we only have 13 weeks of conscionable for this Congress to leave would our Founding Fathers say about Federal benefits. This is going to run without renewing this program. what is happening in our Federal Judi- out on December 31 unless we act be- Factory employment in America de- ciary today? We all know the answer. fore we leave. clined for the 39th consecutive month They would be shocked. We should be Some contend the issue of whether or by eliminating approximately 24,000 shocked as well. not to extend the program and in what manufacturing jobs. So even though we Finally, this is an important debate form can be dealt with when we return had that slight increase in jobs in Oc- because this determines what kind of on January 20. I believe, however, by tober, for the first time really, we are country we are and what kind of coun- the time January 20 rolls around, it is seeing a slight up-tick in the total try we will become. My hope and pray- going to be too late. In fact, we know number of jobs. We have at least some er is that in the intervening 2 months, it will be too late for thousands of un- jobs being created. In the manufac- when we come back, this debate will employed who will have exhausted turing sector, for the 39th consecutive take on a new civil tone, we will de- their benefits. So action is needed month, we lost tens of thousands of plore and avoid these tactics of the today. It is needed now or else this manufacturing jobs. past and embrace the fresh start we so Federal benefit program, which is a America’s manufacturing core has earnestly sought just a few short modest program—again, I emphasize, shed an average of over 50,000 jobs a months ago. half of what we have done in prior re- month for the last 12 months. These I yield the floor. cessions—unless this is reauthorized manufacturing jobs, which build and The PRESIDING OFFICER. The Sen- today, it is going to run out and hun- sustain America’s middle class, are dis- ator from Michigan. dreds of thousands of unemployed appearing. A total of over 2.5 million

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15955 manufacturing jobs have been lost in This issue is so important to me be- ing, no, thank you, for the hard work the last few years. These are jobs that cause we were in this same situation you have provided to American compa- are good paying jobs, provide good last year. This side of the aisle said, nies in the past and for paying into the health benefits and good retirement se- given that this country has lost so unemployment insurance system. curity. We simply cannot afford to let many jobs, we must do something to It is totally irresponsible for us, as a these jobs leave our country or be lost take care of laid off workers. We must legislative body, to pass all of these tax for good. extend the Federal unemployment ben- cuts for the wealthiest Americans, do In the meantime, while we are fight- efits program. We were successful in all of these programs for special inter- ing the battle for manufacturing jobs, convincing the Senate, with Senator ests, give subsidies, and then leave we should not go home for the holidays NICKLES’ help, to pass a bill out of the American workers without the benefit having failed to act to maintain the Senate extending unemployment bene- program that was designed to help very modest Federal unemployment fits, but the Republicans in the House them in economic downturns. benefits program. I know there are refused to take up the measure and This is not a Republican or Democrat many in this body who are determined people in my State were without unem- issue. We have had a Republican ad- to see us have the opportunity to act to ployment benefits at the end of the ministration and a Democratic admin- extend this program before we leave for year. istration—the first Bush administra- the recess. If somehow my colleagues think that tion and the Clinton administration— I thank the Chair and I yield the people didn’t make very tough deci- who said this is a great policy, but floor. sions because we left them without any somehow this policy is now falling on The PRESIDING OFFICER. The Sen- guarantee that the program would con- deaf ears. During the 1990s, when we ator from Washington. tinue, they did. I had constituents who ran this program for 30 months at rich- f took money out of their pension er benefits, we had an improvement in plans—at a 30 percent penalty—at the the unemployment rate of 1.2 percent UNANIMOUS CONSENT REQUEST— end of December to live on because before we ended the program. It was S. 1839 they thought their benefits had been yet another sign, in addition to the 2.9 Ms. CANTWELL. Madam President, I exhausted. They were forced to trade million net jobs added that it was time rise to echo the comments of the Sen- off long-term security for short-term to end the program. ator from Michigan. I think it criti- economic need, only because the Fed- As I said earlier, we have lost 2.4 mil- cally important that Congress not ad- eral Government did not stand up and lion jobs during this time period and journ for the year without addressing do its job. the unemployment rate has improved unemployment benefits for Americans We had a similar situation in the less than 1 percent—only .4 percent. So who, unfortunately, have been out of 1990s in which we had high unemploy- we do not have the data, we do not work for some time now. ment. What did we do to act respon- have the evidence that things are get- The Senator from Michigan is very sibly? For 30 months, the Federal pro- ting better. And yet somehow now, conscious of the fact that his State, gram offered to unemployed Americans even though we cannot demonstrate with 7.6 percent unemployment, has a richer benefit than we are offering that things are really getting better not seen much economic relief in this today—20 weeks in the 1990s, compared for workers, some people on the other jobless recovery. I can tell him that to 13 weeks today. Well, guess what side of the aisle want to hedge their the State of Washington has seen very was different in the 1990s. During that bets and say, too bad for you. And they little relief, as we are at 7 percent un- time period, 2.9 million net jobs were want to say this at the end of the year employment rate. The States around created. Since this recession started, the holiday season, when people are us—Oregon is at 7.6 percent unemploy- we’ve lost 2.4 million jobs. making some of their most important ment; Alaska is at 7.3 percent unem- The 1990s recession covered both a financial decisions and expenditures. ployment—also continue to suffer. Republican administration—the first I think it is outrageous. It is out- The Pacific Northwest has been very Bush administration—and a Demo- rageous that this body is so cold heart- hard hit by the downturn in our econ- cratic administration. Both those ad- ed to the hard-working men and women omy. While some people would like to ministrations committed—for 30 of America. Let’s remember how we say that is part of the process, I would months, and with a richer Federal pro- got into this situation. Through no argue that losing jobs in the aerospace gram of 20 weeks—to take care of fault of their own, and in particular for industry after 9/11—35,000 jobs just at Americans until this economy recov- New York and Washington State, re- Boeing alone—is no fault of individual ered. As the economy recovered and 2.9 sulting from the unfortunate cir- workers. million new jobs were added, then we cumstances of 9/11 and downturns of I guarantee you, individual workers ended the program. specific industries as a result of that— in my State would rather have a pay- How do our actions today compare to laid-off workers are being left high and check than an unemployment check. that recession? Well, we have only had dry. But if they are not getting an unem- 22 months of this program, so it has Somehow we want to put American ployment check, if they do not have not lasted as long as the previous pro- workers out in the cold just because a the ability to take care of mortgage gram of Federal unemployment bene- very tragic event happened to us at the payments and other bills, it affects our fits. It has been 8 months shorter. The national level? We do not want to say overall economy. That is why for a benefits are less, only 13 weeks instead to those companies and to those indi- long period of time, not only have peo- of 20. So it is not as rich a program. viduals, we understand the hard eco- ple believed that those who pay into The bottom line is what has hap- nomic times they have fallen on? That unemployment benefits should get a pened to our jobs during the time pe- is what the Federal unemployment ex- package for taking care of them during riod. In this time period, instead of tension program is about. downturns in our economy but they adding 2.9 million jobs, we have actu- There are additional reasons we are also think unemployment benefits are ally lost 2.4 million jobs. So if the ar- crazy not to extend this program. One a great stimulus for an economy that gument is that it’s time to stop the is that we have yet to see the economic is sagging. Federal extension program when new results we want. Unemployment insur- My colleagues on the other side of jobs have been created and Americans ance is an economic stimulus. For the aisle continue to refuse to bring up are going back to work, then obviously every dollar spent on unemployment an extension of unemployment bene- 22 months has not been enough. People benefits, it generates $2.15 of economic fits. That means by that December 31 are not going back to work. We have stimulus. I argue that one of the best of this year, some 90,000 unemployed lost 2.4 million jobs. If somebody economic stimulus programs we have people per week will exhaust their reg- thinks it is time to cut off this pro- had in the last 22 months has likely ular benefits. That means in the first 6 gram, they are dead wrong. To do this, been Federal unemployment benefits. months of 2004 there may be as many going into the holiday season, is just These benefits have allowed millions of as 2 million people affected by this loss like giving American workers a lump Americans to make their house pay- of benefits. of coal in their stocking. It’s like say- ments, to pay their medical bills, to

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15956 CONGRESSIONAL RECORD — SENATE November 25, 2003 pay for the various essentials they I hope this body will come to its Iraq, and it is clear these lost heroes need to do to exist. And that is what senses, address this very important are never far from the thoughts of the they are basically doing. They are just issue, and not leave any Americans at soldiers of the 101st. Indeed, these he- getting by. They are just getting by the end of the year without the re- roes remain a source of poignant moti- until new jobs are created. sources to pay their bills and without vation for their comrades. I say to the administration: Where helping them be an effective part of our For our Armed Forces, sad memories are all of these new jobs? The bottom economy. of fallen colleagues are inescapable, line is still 2.4 million jobs lost. If the I yield the floor. but so too is the evidence that the administration wants to curtail this Mr. LEVIN. Mr. President, I suggest Screaming Eagles are on the right side economic program, at least stand up the absence of a quorum. of history. From water coolers in and be as responsive as the last two ad- The PRESIDING OFFICER. The Washington, DC to New York City ministrations were and create the new clerk will call the roll. newsrooms, many of us forget that our jobs. In that recession, 2.9 million jobs The assistant legislative clerk pro- troops were present at the moment were created and so, of course, Ameri- ceeded to call the roll. Iraq was liberated from the tortuous cans could go back to work and, of Mr. MCCONNELL. Mr. President, I grip of Saddam Hussein. They have course, they could get off the Federal ask unanimous consent that the order since witnessed firsthand the birth of a program. for the quorum call be rescinded. democratic process and the reawak- We have a big challenge before us. The PRESIDING OFFICER. Without ening of a people enslaved for genera- And although this bill does not directly objection, it is so ordered. tions by fear and oppression. The address this, we must recognize that f Screaming Eagles have worked side by parts of our economy are retooling. CONTRIBUTIONS OF THE 101st AIR- side with Iraqis to help rebuild a shat- Parts of our economy are demanding a tered country, and their joint success more creative approach to jobs that are BORNE AIR ASSAULT DIVISION OF THE GLOBAL WAR ON TER- in this regard is truly remarkable. lost as industries are transitioning. It The brave soldiers I met in Mosul RORISM will take almost 2 years to regain the know America is in Iraq for the right jobs we have lost. Why not prop up our Mr. MCCONNELL. Mr. President, I reasons, and that despite setbacks and economy by adding needed stimulus? rise to honor the Screaming Eagles of tragic incidents we are winning the Why not give American workers a re- the 101st Airborne, Air Assault Divi- peace in Iraq, just as surely as we won turn on a program they paid into, and sion, based at Fort Campbell, KY. As the war. why not honor them by admitting they you all know, two Black Hawk heli- At one point during my visit, one of would rather have job creation than copters from the 101st Airborne col- the Screaming Eagles came up to me unemployment checks and get about lided in the night sky over Mosul, Iraq and introduced himself as a captain going back to stimulating our economy on November 15, 2003. Tragically, all 17 who hailed from my hometown of Lou- with real job creation? soldiers on board the helicopters per- isville. In the entryway of one of None of that is happening. We are all ished in the incident. This last Satur- Saddam’s former palaces—now serving now about ready to adjourn to some day, two additional soldiers from the as the 101st Airborne’s division head- date uncertain. I do not know if it is Division were killed while they pa- January or a sooner time, but America quarters—he presented me with a flag trolled the streets of Mosul. of the Commonwealth of Kentucky, was listening last year. At the holiday These tragic incidents bring the total season, as December 31 rolled around, and recalled how he brought it with number of Screaming Eagles lost in him as the division left Fort Campbell Americans were furious that this pro- Iraq to 55. My prayers and deepest sym- gram was being curtailed. People made and fought north from Kuwait, up pathies go out to the families and very serious decisions. Why make them through Baghdad, and on to Mosul. friends of these brave Americans. live through those circumstances again This captain spoke with well-earned Last month, in one of the most mov- and then come back in January or Feb- pride about the role he and his fellow ing experiences of my career, I met ruary? After we have all made it clear soldiers played in liberating the Iraqi with some of these soldiers in Mosul, this was a program that was much people and winning the war. And he where the 101st is responsible for keep- needed, why not do the responsible spoke of the progress they were mak- ing the peace in the northern part of thing now and pass these unemploy- ing in winning over the hearts and Iraq. ment benefits. minds of these newly free people by I ask unanimous consent that the Fi- These heroes shared with me their treating the Iraqis with a level of dig- nance Committee be discharged from thoughts about America’s struggle to nity and respect they have not received further consideration of S. 1839 and bring peace and security to a long-op- for generations. that the Senate then proceed to the pressed nation, and their patriotism While in Mosul, I met with the newly immediate consideration of that legis- and passion for their mission shone elected governing council of Iraq’s lation; that the Cantwell amendment, through the dust and grime that accu- Nineveh Province, and I can tell you which is at the desk, be considered and mulates with sustained operations far that the respect and appreciation these agreed, and the motion to reconsider be from the comforts of home. democratically elected leaders have for laid upon the table, and that the bill, Truth be told, I did not expect to en- the U.S. efforts is ample evidence the as amended, be read three times, counter the extraordinary high levels Screaming Eagles are indeed winning passed, and the motion to reconsider be of dedication and morale I witnessed in the hearts and minds of the Iraqi peo- laid upon the table without intervening Mosul and elsewhere in Iraq. Through- ple. action or debate. out that country, I conversed with sol- Indeed, both this democratically The PRESIDING OFFICER (Mr. diers who witnessed first-hand the re- elected new government and that CRAPO). On behalf of the leadership, in ality of war, and who knew friends in- young captain would want us all to un- my capacity as the Senator from the jured or killed in combat. derstand that America did the right State of Idaho, I object. It was obvious that the thoughtful thing to help 25 million Iraqis to real- The objection is heard. young men and women I met in Iraq ize a life without fear. I can assure you Ms. CANTWELL. I do not know how have spent long hours coming to grips that this captain and his fellow sol- many more objections we are going to with these harsh realities, yet remain diers—although mindful of the great hear before we give American workers committed to their mission and deeply risks and danger inherent in their their right to unemployment benefits. believe that what they are doing is work—are committed to finishing the We need to own up to the fact that this right and just. An example: at the 101st job by winning the peace and helping body cannot pass tax cuts for the Airborne’s headquarters in Mosul, I the Iraqis to get back on their feet. wealthiest, incentivize other programs, witnessed a video that detailed the Di- I keep this soldier’s flag—still cov- and then not take care of our obliga- vision’s operations in Iraq. The moving ered in dust and dirt from its historic tion to workers in America—all of video is dedicated to—and features travels—in my office as a reminder whom would, in the end, certainly footage of—Screaming Eagles who have that when America sets out to accom- rather have a paycheck. lost their lives during the liberation of plish a difficult task, it finishes the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15957 job. And when I hear discouraging or ened, the economic and retirement se- appropriations bills have gone through saddening news from Iraq, I think of curity of all Americans has also dra- the Senate. Six bills are the law of the this young captain’s dedication to this matically improved. land and the remaining seven could be mission, and know that America America’s security has benefited just hours away from being success- must—and will—stay the course. from the first funding of the Depart- fully concluded, or might be concluded Mr. President, the entire Fort Camp- ment of Homeland Security, the con- in a couple of weeks. But, in any event, bell community grieves the loss of firmation of the first Secretary of they are largely completed and are every single Screaming Eagle, and we Homeland Security, full funding of the awaiting the desire of the Senate to long to welcome the division home to war on terrorism, passage of a modern- pass this omnibus report and move it the fertile farmland of western Ken- day Marshall plan for Iraq, and passage along. tucky. of both the Defense authorization and When that happens, the Senate will But when the division returns to appropriations bills. have passed 27 normal and supple- Kentucky, it will have left an indelible The security of the American people mental appropriations bills into law— mark on the memories of the people of in their work and their retirement has not a bad year’s work. northern Iraq. The 101st has treated dramatically improved as well. The With this record on appropriations, the Iraqi people with respect and economic growth package passed ear- with passage of the economic growth honor. They have acted not as occu- lier this year has pushed the economy package, and with passage of the Medi- piers, but as allies to the victims of to the highest quarterly growth rate in care prescription drug bill, expecting Hussein’s brutal reign. When the almost 20 years, while the promise of anything more from this Senate would Screaming Eagles come home, Iraqis prescription drugs for our seniors on not be reasonable. But in fact much will see their legacy around every cor- Medicare, thwarted for 38 long years, is more has been delivered to the Amer- ner: in the hundreds of newly refur- just hours—just hours—away from be- ican people by this Senate under the bished schools, in the electricity that coming the law of the land with the leadership of Senator BILL FRIST. We now is available 24 hours a day, in the stroke of the President’s pen. have banned the horrific practice of swimming pool renovated for Iraqi kids These major legislative victories partial-birth abortion. We have passed by the division, in the repaired irriga- have been as demanding as they have the Do Not Call Registry at the Fed- tion canals that bring water to the been time consuming. Yet that did not eral Trade Commission. We provided wheat fields near Mosul, in the soccer stop the majority leader from getting tax relief to military families. We fields that are no longer killing fields, the work of the people done. passed the Healthy Forests Act to stop and in the proud Iraqis now patrolling In an extraordinarily tenacious man- the catastrophic wildfires we have wit- the streets of a free Iraq as policemen ner that should make all Tennesseans nessed raging across the western lands. respectful of the human rights and dig- proud, our leader, BILL FRIST, con- I might say, the occupant of the chair, nity of their fellow citizens. fronted not just the challenges of last the Senator from Idaho, was right in Mr. President, Iraq is now free—and year’s business but also the present de- the middle of that debate from the be- an evil despot no longer threatens the mands of the war on terrorism. ginning to the end, helping steer it to United States and his neighbors—be- As I think back on the first year of a successful conclusion. I commend cause of the selfless actions of the indi- Senator FRIST’s position as our leader, him for his extraordinary work on the vidual soldiers of units like the 101st I think we can all feel extraordinarily Healthy Forests proposal. Airborne. I pray that the families of proud of his many accomplishments in We have enacted free trade agree- those Americans who have lost their holding this somewhat fractious body ments with Chile and with Singapore. lives in this conflict find comfort and together in order to advance the agen- The Senate has passed the Federal solace in their time of need. Their da. Aviation Administration reauthoriza- loved ones are American heroes, and I The Senate, as we all know from tion to revitalize an air transport in- will never forget their sacrifice. working here, and as many Americans dustry suffering from the effects of the Mr. President, I suggest the absence know from studying the history books, terrorist attack of 9/11. We pushed a of a quorum. was basically constructed not to func- comprehensive Energy bill to within The PRESIDING OFFICER. The tion very well or certainly not very two votes of breaking a filibuster. clerk will call the roll. The legislative clerk proceeded to quickly. At one time or another, vir- One thing we can say today: This is call the roll. tually every Senator takes advantage only the end of the first session. We Mr. MCCONNELL. Mr. President, I of that opportunity. Then you add on have a second session of the 108th to ask unanimous consent that the order top of that the fact that the American go. We have not given up on the pros- for the quorum call be rescinded. people dealt a very narrow majority to pect of getting an Energy bill. We are The PRESIDING OFFICER. Without the majority party. going to have a very cold winter. We objection, it is so ordered. Many thought at the beginning of the have the potential for blackouts, all year the prospect of very much success kinds of problems that could be dealt f was quite limited indeed. But as you with substantially by the passage of KEY ACCOMPLISHMENTS IN THE look back over the year, under Senator this Energy bill. I believe there will be FIRST SESSION OF THE 108TH FRIST’s extraordinary leadership, we two additional Senators who will see CONGRESS have been able to make enormous their way to supporting an Energy bill Mr. MCCONNELL. Mr. President, as progress for the American people. something like the one we currently the first session of the 108th Congress It all began back in January, when have before us in order to prevent draws to a close, the score of accom- we had to pass 11 appropriations bills, America from having another experi- plishments of this Senate comes into uncompleted from the previous year. ence like we had last summer with the clearer view. By any historical com- Under Senator FRIST’s leadership, we blackout. parison, this Senate’s record of accom- completed the emergency wartime sup- After more than a decade of repres- plishments is remarkable. But when plemental appropriations bill. He sion, the Senate has passed the Bur- one considers the slender majority that brought to a successful conclusion the mese Freedom and Democracy Act. In this party holds in the Senate, and the fires and NASA disaster supplemental addition, we secured resources to im- numerous unforeseen challenges that appropriation. Then he pulled together prove our Nation’s elections systems have risen, the record of accomplish- the conference to pass a very tough and, hopefully, we will finish the job ments is truly extraordinary. Iraq reconstruction supplemental ap- through the omnibus appropriations Our efforts, the efforts of this Senate propriations bill—all of this in the past bill currently being negotiated. We in the first session of the 108th Con- year. made a commitment to our States to gress, have improved the security of Even though, as of today, it is not ex- be a partner in this endeavor, and we America and the lives of all Americans actly clear when our remaining appro- took the first step to honor that com- in significant ways. priations bills will be approved, what mitment. While the homeland and national se- we can say is this: That under Senator I want to linger a moment on this curity of America has been strength- FRIST’s leadership, all but 1 of the 13 whole election reform issue. Senator

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00077 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15958 CONGRESSIONAL RECORD — SENATE November 25, 2003 CHRIS DODD of Connecticut deserves an we had more votes in the Senate this and both indicated that no deal was enormous amount of credit, as does year than any time since 1995, the first better than any of the options I had set Senator KIT BOND of Missouri. The year of the Contract with America. We forth. As an aside, this was the first, three of us worked long and hard to had a lot of very close votes, a lot of last and only moment when the various produce an election reform bill, the dramatic experiences in the Senate. parties were able to reach agreement theme of which was to make it easier Back during the budget, we had three with respect to anything having to do to vote and tougher to cheat. There is, votes on which the Vice President had with taxing the Internet. in the context of passing the final om- to break the tie in the chair. So for At this point it became clear to me nibus, an additional billion dollars those who were interested in drama that no agreement was in the making going out to the States to guarantee and who typically think of the Senate with respect to a permanent or even that we have the cleanest and the most as a place where you to go watch paint multiyear extension of the Internet tax efficient election in American history peel, there was a good deal of excite- moratorium. I therefore suggested that next November of 2004. ment this year at various intervals in we pass, as a part of the omnibus ap- That money must get out the door, our legislative consideration. propriations bill, a so-called ‘‘Internet- and that is another reason we need to I hope all Members will enjoy the tax CR’’—basically an extension of the wrap up this omnibus appropriation at Thanksgiving holiday and Christmas expired statute to cover the gap be- the earliest possible moment. States with their families and come back to tween November 1 and the second ses- and localities all over America are Washington refreshed to tackle the sion of the 108th Congress when the waiting so they can implement this agenda that remains in the second ses- Senate would be able to return to this mandate, which is a funded mandate— sion of the 108th Congress. issue. not an unfunded mandate, a funded I suggest the absence of a quorum. mandate—only when the money gets to The PRESIDING OFFICER. The My concern was that if we did not ex- the States. The sooner we pass the om- clerk will call the roll. tend the moratorium, the Internet nibus, the sooner that will happen, and The legislative clerk proceeded to would be open to multiple and dis- the more likely it is that we will have call the roll. criminatory taxes for the fist time in 5 the most honest, the most efficiently Mr. MCCONNELL. Mr. President, I years. And while a simple extension conducted election in American his- ask unanimous consent that the order would not have addressed the troubling tory next November of 2004. for the quorum call be rescinded. efforts in several States to begin tax- Numerous other legislative accom- The PRESIDING OFFICER (Mr. ing DSL access, I still believed that plishments have been reached during CHAFEE). Without objection, it is so or- doing something was better than doing this session. Specifically, the Senate dered. nothing. Further, I was prepared to has passed the President’s faith-based f make it clear that the spirit of the initiative. We have funded the efforts original moratorium was intended to INTERNET TAX MORATORIUM to eradicate the scourge of global make all Internet access tax free, and AIDS. We acted to guard our children Mr. FRIST. Mr. President, on Novem- that extending the current moratorium against abduction and exploitation by ber 1, 2003, the most recent Internet tax should not be an invitation for any passing the PROTECT Act. We im- moratorium expired. In the weeks prior State to continue or begin anew taxing proved safeguards from foreign terror- to and following this expiration date, I DSL. ists by enacting the FISA bill. We ex- have been trying to broker a com- Much to my disappointment, even a panded NATO to include almost all of promise between those who, like me, simple extension of the original mora- the former Warsaw Pact countries. We support making the moratorium per- torium failed to gain consensus sup- also passed a significant arms reduc- manent and those who oppose a perma- port. And even when we agreed to con- tion treaty with our former enemy, nent extension. Unfortunately, we have sider modifying the original language turned ally, Russia. We took steps to been unable to reach resolution on leg- to prevent states from taxing DSL for bridge the digital divide by providing islative language that would allow us the duration of this Internet-tax CR, needed funds to historically Black col- to make the moratorium on Internet the House of Representatives was un- leges. access technology neutral and perma- willing to agree. We awarded a congressional gold nent. However, I remain committed to As the strong bipartisan support of medal to U.K. Prime Minister Tony passing a revised moratorium next the Internet moratorium indicates, Blair and affirmed the constitu- year which ensures that all Americans there is a growing consensus that the tionality of using the term ‘‘under can receive Internet access tax free, re- Internet should never be singled out for God’’ in the Pledge of Allegiance. gardless of technology. We have a solemn responsibility to I respect the arguments of those Sen- multiple or discriminatory taxation the American people to improve their ators who are concerned that the lan- and that all forms of Internet access lives, to protect their homeland, and guage in S. 150, the Internet Tax Non- should be tax free. Rather than finding build a future filled with hope and op- discrimination Act, will infringe on the new ways to tax the Internet, the un- portunity. This year, we have made ex- ability of States to tax traditional precedented benefits it offers to our so- cellent progress in fulfilling our obliga- telecommunication services. Because ciety and economy should be encour- tions to the American people. Next of their concerns, I allowed the bill to aged by policymakers at the Federal, year, it is our hope and intention to do be fully debated on the floor of the State and local levels. We must not even more. Senate for several days. In the end, allow differences over details of the Let me say in closing, again, how after spirited discussions, the relevant moratorium to result in tax policies much I admire and how much all of us parties could not reach agreement on which damage this critical economic appreciate the extraordinary leader- appropriate language and the current engine of the future. The Internet is ship of our majority leader, Senator moratorium had expired. too important. FRIST. He has been very skillful in ad- After that process failed to achieve a I specifically thank Senator MCCAIN, vancing our legislative agenda in a resolution, I sought to broker a com- Senator SUNUNU, and Senator ALLEN body which is designed to thwart al- promise by laying out a menu of op- for their excellent leadership and dedi- most every initiative. He has done it tions from which the parties could cation to this issue. Their efforts have with a very narrow majority. So as we choose. None of these options were per- ensured that this important tech- wrap up the first session, plaudits to fect, and none went as far to protect nology issue receives the attention it the leader, to all of our colleagues, not the Internet from taxation as I would deserves from Congress. As majority only on the Republican side but have liked. But in the spirit of com- leader, it is my intention to work hard throughout the Senate, who have promise, I believed that taking some to get the strongest, longest ban on worked extraordinarily hard this year. action was better than doing nothing Internet taxes as possible. As such, I We had 459 votes this year. We were at all. Unfortunately, the various rel- will make passing a meaningful, re- doing a lot of voting on a lot of issues evant parties disagreed. Every option I vised Internet tax moratorium a pri- during the course of the year. In fact, suggested was rejected by both sides ority for next year.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15959 CADET NURSING CORPS SUPPORTING OUR TROOPS AND doing to help boost the morale of our Mr. REID. Mr. President, some of us THEIR FAMILIES troops. Many endure months away are barely old enough to recall the end Mr. DOMENICI. Mr. President, as we from home and, in some cases, face the of World War II. And we remember that approach the Thanksgiving Day holi- pressure of operating daily in a combat it was an effort that involved the en- day, we as Americans have much for zone. The kind of benefit provided by tire Nation in a monumental struggle which to be thankful. Around dinner the Trust gives them some peace of against the evil of fascism. tables this year, there will be added joy mind and allows them to focus on their During World War II the United of loved ones returning home espe- vital mission. I salute the Military Aid States sent more than 250,000 nurses to cially in the case for those families of Societies representing the Army, Navy, the front lines to care for our wounded members of our Armed Forces. Other Air Force and Marine Corps for coming Allied troops. homes may not be as joyful, as those together to create the Armed Forces By 1942, the country was experi- who have chosen to defend their Nation Relief Trust. Perhaps more impor- encing a shortage of nurses for domes- are stationed abroad, particularly in tantly, I salute all those who have do- tic medical needs. In fact, the shortage Iraq and Afghanistan. Both of these nated to the Trust and are helping to was so severe that many clinics were scenes will occur in my home State, ensure that the needs of our brave mili- forced to close. NM. tary personnel and their dedicated fam- To alleviate our domestic medical We as a Nation are ever grateful to ilies are being met. crisis, Congresswoman Frances Payne the men and women of our military As we all gather with our families Bolton introduced legislation creating and the families they leave behind to this Thanksgiving and count our bless- the United States Cadet Nurse Corps in serve. Today, I rise in support of an im- ings, I believe we should remember our 1943. Over the next 5 years, the Corps portant effort to assist these dedicated brave men and women in uniform, and recruited about 125,000 young women to military personnel and their families. consider supporting the Trust and its assume the duties of nurses who had The Armed Forces Relief Trust, work to these personnel and their fami- been dispatched to the front lines. AFRT, is a non-profit fund established lies in need. Throughout World War II, cadet nurses to help ease financial burdens on our f accounted for 80 percent of the nursing military personnel and their families. AIR POLLUTION CLOSE TO HOME With so many of our troops on ex- staff in our domestic medical facilities. Mr. JEFFORDS. Mr. President, I Cadet nurses completed rigorous tended overseas deployments, the ben- would like to ask my colleagues and training under the jurisdiction of the efit provided by the Trust is needed the American public some serious ques- Public Health service. They also more than ever. tions today—questions about air pollu- pledged to serve at any time during the Today nearly 140,000 soldiers, sailors, airmen and marines are deployed over- tion and its impacts closer to home. war, at any hospital or clinic where Many of us listening today have chil- seas in the war on terror. Thousands they might be needed. They were often dren and grandchildren. How many of more are stationed abroad guarding required to leave their families and fill them have asthma? How many of us our freedom. For the families left be- vacant positions across the country. have taken children to the emergency They acted as both caregivers and med- hind, the financial burden of caring for room in the middle of the night, des- ical doctors—as there was also a scar- children and meeting other demands perate to put a stop to their terrifying city of doctors—to the sick and wound- can be a strain. And with an increased asthma attacks? ed. number of National Guardsmen and Re- How many of the Nation’s growing The Cadet Nurse Corps provided the servists currently overseas, the number number of asthmatic children have to support of health care system needed. of families facing such hardship is even carry inhalers to school, and wish they By putting the needs of the Nation greater. could run, play, and breathe freely like ahead of their own, these young women In my own home State of New Mex- the other kids? made it possible for Allied troops to re- ico, many have been affected by the How many Americans know young ceive the best possible medical care frequent and lengthy deployments as- children who depend on their asthma during a time of war. sociated with the war on terror. Most inhalers to get safely through a simple Although the uniforms of these dedi- recently, 60 National Guardsmen from game of baseball? Their asthma at- cated cadet nurses were decorated with the 515th Corps Support Battalion out tacks could be some of the six hundred patches certified by the Secretary of of Springer, NM, were activated to sup- thousand caused by air pollution every the Army, and they served under the port combat forces in Operation Iraqi year. authority of commissioned officers, the Freedom. They join more than 900 How many of our own children or Cadet Nurse Corps has never been rec- other New Mexico Guardsmen already grandchildren yearn to play outdoors ognized as a military organization. deployed worldwide, including those during school recess, only to have their Today, many of these cadet nurses from the Army’s 717th Medical Com- teachers warn them the air is too are no longer living. Those who do sur- pany and the 720th Transportation unhealthy? vive are in their seventies and eighties. Company—both from Santa Fe. And How many of us have parents or sib- Ironically, they are not entitled to use only recently did we welcome home to lings with emphysema? Or chronic lung the veterans health care system, nor do Las Cruces the 281st Transportation disease? Reduced lung function, or lung they receive other benefits such as dis- Company following its service in the cancer? Air pollution decreases lung ability pay. Persian Gulf. These many deployments function and causes asthma and asth- Even more important, they rarely re- from New Mexico represent what is ma attacks, lung disease, emphysema, ceive the recognition they deserve for happening all over the country. lung cancer, and heart problems. their service to their country. And Clearly, many military members and Do Americans ever worry that their every year, as more of the cadet nurses their families face burdens that are own lives may be shortened by three or pass away, it becomes too late to rec- compounded by months of separation four years, just because the air is so ognize them. and tight budgets. For example, a sol- dirty? These women served their country in dier overseas might face the unex- Sixty thousand people die pre- a time of war. I believe they deserve to pected cost of airfare to attend his fa- maturely in this country every year be recognized as veterans of that war ther’s funeral; a deployed airman’s ex- because of air pollution. It’s hard to be- effort. Therefore, I support veterans pectant wife might incur costs for spe- lieve, isn’t it? Let me put it another status for members of the Cadet Nurse cial medical care; or a sailor’s child way. Corps. may need assistance to cover burden- Air pollution is responsible for more I have introduced legislation that some costs associated with attending deaths than breast cancer, colon can- would accomplish this goal. I hope my college. These situations are what the cer, pancreatic cancer, skin cancer, colleagues will support this effort so Armed Forces Relief Trust is designed prostate cancer, brain cancer, we can finally properly recognize the to address. lymphoma, or leukemia. cadet nurses for their outstanding serv- It seems to me that these are the Half of the deaths caused by air pol- ice to this country. sorts of things that we ought to be lution are due to power plants alone. In

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00079 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15960 CONGRESSIONAL RECORD — SENATE November 25, 2003 fact, power plant-related deaths are so to find the vistas clogged with haze? in their diets face two to five times the numerous that they far outnumber Do families go hiking in our national health risk. Unfortunately, these drunk driving fatalities in all but one forests, only to reach bald stands of Americans may lack health insurance of the 15 dirtiest States. trees that have been killed by acid and access to proper medical care to Have Americans ever wondered how rain? deal with these problems. close they live to a powerplant? A Har- I know many people from my State I have made an appeal today to my vard University study showed that of Vermont and other States are avid distinguished colleagues and to my fel- those who live near powerplants, who skiers. Do they wonder why ski resorts low Americans. I know my colleagues are often the poorer, less educated, un- must make their own snow more now are compassionate and they do every- insured, or minority populations, tend than ever before, and why the ski sea- thing possible to represent their con- to be the most affected by pollution. son continues to come later each year? stituents, their States, and the Nation Fortunately for some of us here, we are Global warming will threaten more well. I only hope they are moved by probably less vulnerable. We live fur- than ski vacations in the very near fu- some of what I have said today to take ther away, we live more comfortably, ture. Global warming and rising sea swift and serious action to protect our and we have access to quality health levels could mean life and death to air quality. care. those in our society who live on the Unfortunately, this administration’s But does that sound like a fair and margins. recent and upcoming actions to dis- equitable distribution of the impacts of Do those listening today enjoy fish- mantle our clean air laws mean we all pollution? Hardly. ing trips with their families? Do their have to be vigilant. I will fight to pro- Americans can experience pollution husbands and wives, daughters and tect those 60,000 lives and those 300,000 very differently. Although 58 percent of sons, and grandchildren eat the fish newborns. I will fight to bring down white Americans live in counties vio- that are caught? the $178 billion in costs to human lating Federal air pollution stand- I am sorry to say that the fish being health and to our precious environ- ards—an unacceptably high percent- caught may contain unhealthy levels ment. But Americans will need all of age—71 percent of African Americans of mercury, likely due to dirty power- my colleagues’ help, too. do. Even worse, twice as many African plants. Coal-fired powerplants emit Senators should send a message to Americans die from pollution than mercury emissions. Mercury contami- the President and EPA Administrator whites. Does that sound like a fair allo- nates rainwater. It settles in water- Leavitt right now. It needs to be loud, cation of the impacts? ways. It poisons fish. The contami- and it needs to be clear. If these appeals do not strike a chord, nated fish create a health risk. The Clean Air Act says utility emis- perhaps the economic impact of all Powerplants are responsible for one- sions of air toxics, especially mercury, these health problems will. third of all U.S. mercury emissions. have to come down drastically. EPA is I have mentioned before that over Amazingly, they are currently unregu- already years behind in regulating. 30,000 premature deaths can be blamed lated. on powerplant pollution every year. An Are doctors warning pregnant women There should be no further delay. EPA consulting firm using EPA meth- not to eat fish because mercury endan- In the coming weeks, EPA is likely odology estimated that this loss of life gers fetuses? I hope they do, because to propose a rule on mercury that is hurts the U.S. economy by $170 billion one in 12 women in this country—that not legal or sanctioned by the Clean each year. I ask unanimous consent is 5 million women—have blood levels Air Act. Senators should tell Adminis- that a table from this firm’s recent re- of mercury above EPA’s safe health trator Leavitt and the President that port be printed in the RECORD. threshold. That means that over 300,000 these ongoing assaults on air quality There being no objection, the mate- newborns each year face increased risk have to stop. rial was ordered to be printed in the of nervous system damage due to mer- I call on the President to do the right RECORD, as follows: cury exposure in the womb. thing for once on clean air—cut toxic How many Americans have children air emissions from powerplants. Do it ESTIMATED ANNUAL HEALTH AND MORTALITY COSTS DUE or grandchildren with learning disabil- right. Do it as the law requires. And do TO PARTICULATE MATTER POLLUTION FROM POWER ities, speech problems, attention dis- it now. PLANTS orders, loss of muscle coordination, f memory problems, poor visual spatial Attributable inci- Mean economic im- DIETARY SUPPLEMENTS Health effect dence pact skills, vision problems, hearing loss, seizures, mental retardation, or cere- Mr. DORGAN. Mr. President, I ex- Mortality ...... 30,100 $170,000,000,000 press my support for an amendment of- Chronic Bronchitis ...... 18,600 6,130,000,000 bral palsy? Have they ever wondered COPD—Hospitalization ...... 3,320 41,000,000 whether these disorders could be due to fered by my colleagues Mr. HATCH, Mr. Pneumonia—Hospitalization .... 4,040 59,000,000 HARKIN, and DURBIN earlier this year Asthma—Hospitalization ...... 3,020 21,000,000 mercury exposure? Cardiovascular—Hospitalization 9,720 179,000,000 We all saw what happened when a that provides funding for the Food and Asthma ER Visits ...... 7,160 2,000,000 Drug Administration to implement the Acute Bronchitis ...... 59,00 3,000,000 teen spilled less than a cup of mercury Upper Respiratory Symptoms .... 679,000 16,000,000 at Ballou High School in Southeast dietary supplements law. Lower Respiratory Symptoms .... 630,000 10,000,000 I sponsored and voted for the Dietary Asthma Attacks ...... 603,000 25,000,000 Washington. The metal is so toxic to Work Loss Days ...... 5,130,000 543,000,000 humans that officials closed the school Supplement Health and Education Act, Minor Restricted Activity Days .. 26,300,000 1,270,000,000 for over a month and evacuated 17 DSHEA, of 1994 and continue to support Total ...... 178,000,000,000 nearby homes. it today because it gives consumers the Source: Abt Associates, ‘‘The Particulate-Related Health Benefits of Re- Do we feel comfortable knowing that power to make informed decisions ducing Power Plant Emissions,’’ October 2000. U.S. powerplants emit 50 tons of toxic about whether they want to use dietary Mr. JEFFORDS. When you add in the mercury into the air every year, so supplements. Millions of Americans economic impact of the tens of thou- that it may fall in our backyards, in take vitamins, minerals, and other die- sands of cases of asthma, bronchitis, our grandchildren’s sandboxes, and in tary supplements every day, knowing pneumonia, heart problems, and lost the lakes where we fish? that if there is a problem with a par- work days, you reach a pretty stag- How many Americans depend on fish- ticular product the FDA has the au- gering conclusion. ing in tainted waters for their liveli- thority to step in to protect the public. Powerplant pollution alone is respon- hood? Chances are, they live in one of Ever since the tragic death of Balti- sible for $178 billion in damage to our the 44 States in the Nation with fish more Orioles pitcher Steve Bechler ear- health and our economy each year, advisories for mercury and other toxic lier this year there has been increased burdening our already taxed Medicare pollutants. Chances are also likely that interest in the potential dangers of program and draining American pro- they are unaware that eating fish taking ephedra. In the wake of that ductivity. poisoned by mercury can damage their tragedy, the FDA has opened an inves- There are even more ways in which nervous system, cardiovascular sys- tigation into the use of ephedra. air pollution hurts our way of life. tem, kidneys, and immune system. I support the enforcement efforts and How many Americans seek peace and Sadly, some ethnic groups and an- urge the FDA to act as expeditiously as enjoyment in our national parks, only glers who rely on high amounts of fish possible. I know some of my colleagues

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15961 would simply like to see ephedra than expected. Some active units peace and conflict. I would like to take banned by legislation. My own view is served in Afghanistan, returned home a moment to highlight Captain Zeller’s that we already have a review process for 6 months, and were immediately re- career. in place under DSHEA and now it is deployed to Iraq The son of a career Army soldier, important for Congress to help the Reservists are facing extended de- Randy Zeller was born at Fort Belvoir, agency do its job. ployment as well. Arkansas reservists VA. Continuing this family tradition of I support the amendment offered by in the 39th Infantry Brigade, for in- service, Randy earned an appointment my colleagues because it does just stance, were recently called up for to the United States Naval Academy in that. We must continue to provide con- what could be a 1-year rotation in Iraq Annapolis, graduating in 1975 with a sumers with informed choices about di- beginning early next year. In many bachelor of science degree in marine etary supplements and one way to do cases, the sole breadwinner in a family engineering. Following commissioning, that is to make sure the FDA has the is deployed, making it difficult for the he completed the nuclear power train- resources to do the job as expeditiously families left behind to cope with med- ing program and the Submarine Officer as possible. ical bills or other unexpected expenses. Basic Course. The FDA should conclude its rule- Today, I would like to recognize an This promising young officer was as- making on ephedra, as well its ‘‘good effort undertaken by local radio and signed to four tours aboard nuclear at- manufacturing practices’’ rules, and television stations to help address tack submarines, one tour on an air- move forward as quickly as possible so these issues. The National Association craft carrier, a tour as commander of that consumers can be better informed. of Broadcasters is leading its local tel- the USS Gato (SSN 615) and, as com- f evision and radio stations in a partner- mander of the Trident Submarine Refit ship with the Armed Forces Relief Facility. His tours of duty have in- LOCAL LAW ENFORCEMENT ACT Trust to raise funds for military fami- cluded assignments to the USS Groton OF 2003 lies in need. (SSN 694) as Division Officer in 1977; Mr. SMITH. Mr. President, I rise By producing, distributing, and air- Submarine Training Department Head today to speak about the need for hate ing radio and television public service and submarine tactics instructor at the crimes legislation. On May 1, 2003, Sen- announcements, the NAB and its radio Fleet Anti-Submarine Warfare Train- ator KENNEDY and I introduced the and television broadcast members are ing Center Atlantic in Norfolk, Vir- Local Law Enforcement Enhancement helping raise funds for those military ginia, 1980–1982; and, Chief engineer on Act, a bill that would add new cat- families in need. the USS Phoenix (SSN 702), from Feb- egories to current hate crimes law, Last year, the four emergency assist- ruary 1983–1985. In November 1985, he sending a signal that violence of any ance programs representing the Army, reported to Carrier Group Two (CCG–2) kind is unacceptable in our society. Navy, Air Force, and Marine Corps dis- aboard the USS CORAL SEA (CV–43), as On Saturday, October 25, 2003, an off- tributed more than $109 million in in- a Tactical Action Officer and the Bat- duty officer in Austin, TX, was at- terest free loans and grants to military tle Force Anti-Submarine Warfare Offi- tacked in an apparent anti-gay hate families. Now that the four programs cer. While assigned to CCG–2, he served crime. The victim, his partner, and a have joined together into the one trust, on the Fleet Strike Warfare Com- friend were at a stop sign in a vehicle and more importantly, now that the manders’ staff during the surface ac- with a rainbow sticker on the license trust is receiving generous access to tion and contingency air strikes plate. Two pedestrians in the crosswalk the airwaves to get out its message, against Libya in 1986. In December blocked the vehicle while six to eight they will undoubtedly be able to pro- 1987, he returned to the USS Groton as other men approached and began vide yet more assistance. Executive Officer, serving until July pounding the car. Witnesses say one All of us count on our service people 1990. During this tour, the USS Groton man struck the victim in the face and who are far from home protecting us. earned the COMSIXTHFLT ‘‘Hook’ em pulled him from the passenger seat Their families are enduring hardship Award’’ for anti-Submarine Warfare ex- while yelling, ‘‘faggot.’’ The officer fell enough in waiting for them to return. cellence and played a key role in con- to the ground, and the attackers It is incumbent upon all of us to ensure tingency operations near Lebanon. picked him up only to beat him again. their families do not want financially Captain Zeller’s first command was He suffered broken teeth and puncture during this most difficult time. I would the USS Gato in March 1992. Not sur- wounds on his lower lip. like to compliment the local radio and prisingly, his ship executed several I believe that Government’s first television stations that are involved in ‘‘First of their kind’’ missions, dem- duty is to defend its citizens, to defend this effort. As small business people, onstrating the utility of the attack them against the harms that come out they are dedicating a valuable re- submarine in the post cold war era. For of hate. The Local Law Enforcement source—airtime—to a timely and im- her service during the U.N. embargo of Enhancement Act is a symbol that can portant cause. I salute their efforts. Haiti, USS Gato was awarded the Joint become substance. I believe that by f Meritorious Unit commendation. The passing this legislation and changing USS Gato was also awarded the Navy TRIBUTE TO CPT RANDALL L. current law, we can change hearts and Meritorious Unit commendation for ex- ZELLER minds as well. emplary performance from June 1993 to f Mr. WARNER. Mr. President, I rise June 1994. In June 1994, Captain Zeller today to pay tribute to a dedicated pa- was the Naval Submarine League HONORING OUR TROOPS AND triot, sailor, husband and father, CPT RADM Jack Darby national award re- LOCAL BROADCASTERS Randel L. Zeller, USN. By the time the cipient for inspirational leadership and Mrs. LINCOLN. Mr. President, I rise Congress reconvenes in January, Cap- excellence of command. today to recognize a program that pro- tain Zeller will have retired from ac- After Captain Zeller left command in vides an important service to the men tive duty after 27 years in uniform with November 1994, he served in several im- and women serving in our military. the U.S. Navy. CPT Randy Zeller has portant staff positions, during which With our Armed Forces deployed for served the Navy and the Nation faith- he began his association with the con- extended tours of duty in both Iraq and fully and well over these many years, gress. From January 1995 to March 1997 Afghanistan, the pressures placed on most recently as the legislative direc- he served in the Department of the family members left behind can be tor for the Chairman of the Joint Navy’s Office of Legislative Affairs in enormous. While the military is dedi- Chiefs of Staff. the Pentagon (OLA). At OLA he was in- cated to taking care of its own, the Captain Zeller deserves our recogni- strumental in the Navy’s successful ef- need continues to escalate. tion and gratitude. He has been associ- fort to gain Congressional authoriza- Today, more than 140,000 troops are ated with the Congress in a variety of tion for the third and final Seawolf fighting the war on terrorism in Iraq, positions for over seven years. His ca- class submarine, as well as the first in Afghanistan, and around the world. reer accomplishments reflect the type ship of the Virginia Attack Submarine Many of our brave men and women of military officer this Nation has de- class. Recognizing his leadership tal- have now been deployed much longer pended upon for over 225 years, during ents and potential to assume greater

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00081 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15962 CONGRESSIONAL RECORD — SENATE November 25, 2003 responsibilities, Captain Zeller was se- they were quite efficient. Instead of REMARKS OF SENATOR HILLARY RODHAM lected to command the Trident Refit drafting a separate letter, as most CLINTON Facility (TRF), Kings Bay, Georgia, a States did, to notify Congress of Dela- WASHINGTON, Oct. 29, 2003.—Thank you, 2000-man Fleet Maintenance Activity. ware’s ratification of the Bill of John for that introduction. I want to com- During his tour, TRF was awarded the Rights, they simply penned their signa- pliment you for all the hard work that you Meritorious Unit Commendation for tures on the Bill of Rights document have put into the creation of the Center for outstanding Trident submarine main- and returned it whole cloth to Con- American Progress, an institution that I am convinced will be a tremendous force in en- tenance performance. Following this gress. Thus, Delaware had no copy of gaging in the war of ideas so critical to our highly successful command tour, Cap- what Davis and Mitchell signed. country’s future. And there is no better lead- tain Zeller returned to service on the The National Archives, to its im- er for that effort than John Podesta who has Secretary of the Navy’s staff as the mense credit, conserved Delaware’s the warrior spirit and strategic mind needed Deputy Chief of Legislative Affairs, original copy of the Bill of Rights in for such an endeavor. I also want to thank from May 1999 to June 2000. Captain pristine condition for more than two Bob Kuttner at the American Prospect and Zeller was then selected to be the Leg- centuries. However, two years ago Dick Leone at the Century Foundation for islative Director for the Chairman of Delaware’s Public Archives, State their work on this conference. House Majority Leader Wayne Smith, Today’s conference, ‘‘New American Strat- the Joint Chiefs of Staff. During this egies for Security and Peace’’ comes at a tour of duty from June 2000 until his and the Delaware General Assembly critical point in our nation’s history and I retirement, Captain Zeller served the asked the congressional delegation to commend the Center for American Progress, Chairman of the Joint Chiefs and the help negotiate the return of our Bill of the American Prospect and the Century Congress during an especially demand- Rights document. We all agreed that Foundation for putting together from what ing time in U.S. history that included this historic document should be dis- is, by all accounts, an outstanding program. the attacks of September 11, 2001 on played for all to see in Delaware, not Today is a critical moment, not just in our the World Trade Center and the Pen- stored in the basement of the National history, but in the history of democracy. As tagon, and subsequent military oper- Archives in Washington, DC. we seek to build democratic institutions in Iraq, and we in this room push for us to ations in Afghanistan, Iraq, and else- The National Archives is, justifiably, quite protective of its documents. Suf- reach out to our global partners in this en- where in the Global War on Terrorism. deavor, this nation must remember the te- His important contributions were of fice to say that it took ten months of nets of the democratic process that we advo- great importance in keeping the Con- negotiations, meetings, letters and cate. gress fully informed regarding world- conference calls to come to terms on The issue I’d like to address is whether we wide military developments and re- an agreement that returns this docu- apply the fundamental principles of democ- quirements. Captain Zeller’s timely, ment to Delaware, while retaining the racy—rule of law, transparency and account- responsive support was critical to the National Archives legal and preserva- ability, informed consent—not only to what success of global U.S. military efforts. tion rights to it. we do at home but to what we do in the A successful military career is not Starting this December 7, on my world. There can be no real question that we State’s 216th birthday, its original Bill must do so because foreign policy involves accomplished without dedication and the most important decisions a democracy sacrifice. Captain Zeller is fortunate to of Rights will be on display for all to can make—going to war, our relations with have the devoted support of his wife, see. It will be on view at our new, the world, and our use of power in that the former Deborah Lee Chairman of state-of-the-art Public Archives Build- world. Dayton, OH, and their two children Al- ing in Dover, DE. And that is exactly But the fact is that new doctrines and ac- exandra (11) and Nathaniel (8). For where this document belongs—on pub- tions by the Bush administration undermine their support, service and sacrifice, lic display where school students and these core democratic principles—both at they have my profound appreciation, adults alike can appreciate its historic home and abroad. I believe they do so at a severe cost. and that of a grateful Nation. significance. It is a great honor and personal privi- We should all be proud of this accom- In our efforts abroad, we now go to war as plishment because it’s part of our his- a first resort against perceived threats, not lege for me to recognize the exemplary as a necessary final resort. Preemption is an service of CPT Randel L. Zeller and his tory. The Bill of Rights is a symbol of option every President since Washington has family today. Their selfless service to who we are and the values we hold had and many have used. But to elevate it to country, to the Navy, to their commu- dear. It ties us to our past and reminds the organizing principle of American stra- nity, and to family serve as an inspira- us of those principles that will guide us tegic policy at the outset of the 21st century tion to those whose lives they have into the future. is to grant legitimacy to every nation to touched, and who now carry on the f make war on their enemies before their en- emies make war on them. It is a giant step proud traditions of our Armed Forces. CENTER FOR AMERICAN backward. As the Zeller family moves into a new PROGRESS’S NEW AMERICAN In our dealings abroad, we claim to cham- chapter in their lives as valued citizens STRATEGIES FOR SECURITY AND pion rule of law, yet we too often have of the Commonwealth of Virginia, I PEACE CONFERENCE turned our backs on international agree- wish them the continued success and Mr. LEAHY. Mr. President, in the ments. The Kyoto Treaty, which represents happiness they so richly deserve. May end of October, the Center for Amer- an attempt by the international community to meaningfully address the global problem they always enjoy fair winds and fol- ican Progress, in conjunction with The lowing seas. of climate change and global warming. The American Prospect magazine and The biological weapons enforcement protocol. f Century Foundation, held a conference The Comprehensive Test Ban Treaty. This DELAWARE’S BILL OF RIGHTS on U.S. national security titled, ‘‘New unwillingness to engage the international COMES HOME American Strategies for Security and community on problems that will require Mr. BIDEN. Mr. President, it is with Peace.’’ Three of my fellow senators— international cooperation sends a clear sig- tremendous pride that I rise today to Senator HILLARY CLINTON, Senator JOE nal to other nations that we believe in the rule of law—if it is our law as we interpret BIDEN, and Senator CHUCK HAGEL—and commemorate that after 213 years, it. That is the antithesis of the rule of law. Delaware’s original copy of Bill of Dr. Zbigniew Brzezinski made incisive The administration argues that inter- Rights ratified in 1790, is returning remarks at this conference about the national agreements, like the Kyoto Treaty, home. direction of our country’s foreign pol- are flawed. And the fact is they have some This is a story steeped in history, icy and its effects on Americans at good arguments. When the Clinton adminis- mixed with some modern-day political home and abroad. They also spoke tration signed the Kyoto Protocol it said negotiations—worth celebrating. about how to restore America to re- that, working, inside the tent, it would try While Delaware holds the distinction spected international leadership. I ask to make further improvements. But rather as the first State to ratify the Con- than try to make further improvements from unanimous consent that the remarks of inside the process, the Bush administration stitution, on December 7, 1787, it was Senator CLINTON and Dr. Brzezinski be stomped out in an effort to knock over the the sixth State to ratify the Bill of printed in the RECORD. tent. That is not the prudent exercise of Rights—on January 28, 1790. The two There being no objection, the mate- power. It is the petulant exercise of ideology. signors of this historic document were rial was ordered to be printed in the In our dealings abroad, we more often than Jehu Davis and George Mitchell. And RECORD, as follows: not have promoted, not the principles of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00082 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15963 international cooperation, but the propen- was put and we can’t look at the particular that their money is being spent wisely, as- sity for an aggressive unilateralism that viewpoint that was brought to that analysis. sure the Iraqi people that it is being spent in alienates our allies and undermines our te- I think that is a profound error and under- their interest and assure the world that it is nets. It deeply saddens me, as I speak with mining to our democratic institutions. not being spent for profiteering by American friends and colleagues around the world, that The American people, and indeed the inter- companies. I understand both of these the friends of America from my generation national community, need to have con- amendments, my amendment and the one I tell me painfully that for the first time in fidence that when the U.S. government acts, co-sponsored with Senator Harkin, are the their lives they are on the defensive when it it is acting in good faith—sharing informa- subject of some dispute by the administra- comes to explaining to their own children tion where appropriate and developing ap- tion. And in fact, I understand that the ma- that America truly is a good and benign na- propriate mechanisms to insure that power jority party has been advised to ensure the tion. Their children, too often, have seen an is not being abused. A perception that our final package doesn’t include those amend- America that disregards their concerns, in- government is not providing honest assess- ments. I can only hope that they have a sists they embrace our concerns and forces ments of the rationale for war or is unwilling change of mind. They are creating a level of them to be with us or against us. Our Dec- to admit error will diminish the support for mistrust in our government by our citizens laration of Independence calls for ‘‘ a decent U.S. foreign policy of the American people for which we will reap the consequences for respect for the opinions of mankind,’’ yet and the international community. The years to come. this administration quite simply doesn’t lis- American people will be far more willing to As we discuss and debate these issues, let ten to our friends and allies. From our most accept the administration’s statement’s us remember the simple fact that we remain important allies in Europe to relations with about what is going right in Iraq if they be- at war. That is not a fact lost on the men our neighbors in this hemisphere, this ad- lieve that the administration is more forth- and women stationed in Iraq. It is not a fact ministration has spanned the range of emo- right about what is going wrong. It is dif- lost on their families who sit at home wor- tions from dismissive to indifferent. Ask ficult to convince people that everything is rying about their well-being. It should not President Vincente Fox, who staked his fine when we are asking them to essentially lead to the administration refusing to re- Presidency on a political alliance with Mexi- shelve their common sense and human expe- lease injury figures. We should be willing to co’s historically controversial ally to the rience. admit the price that is being paid by these north, only to discover that he got no farther An example that hits close to home for me brave young men and women to pursue this north than Crawford, Texas. can be found in the administration’s ap- policy. I believe that the Executive Branch If we are to lead this world into a wholly proach to the investigation surrounding 9/11. has a strong prerogative on national security democratic future, we must first be con- As Senator of New York, there is no more issues. As Senator, I have supported that sistent in the principles we champion and searing event than what happened to us on prerogative. But the men and women elected the ones we pursue. September 11th. My constituents have a to serve in the Congress also have a great Nowhere is this more apparent than in the right to know all the facts of how our gov- deal of wisdom to bring to bear. And quite transparency of government decisions. With- ernment was prepared—or not—for the at- honestly, my friends, things, have not gone out such transparency, how can leaders be tacks. Yet, over the weekend, we learned so well in Iraq that we have a single mind to accountable? How can the people by in- that the 9/11 Commission, charged with the waste. formed? Without such transparency—open- important task of investigating how 9/11 hap- Recent articles in The New York Times ness and information—the pillars of democ- pened, complains that it isn’t getting access and Newsweek report that many Republicans racy lose their foundation. to all the documents that it needs. This is a share the frustration that comes from lack Of course in a democracy, there always is hugely important issue and one that must be of genuine consultations—failure to con- tension between the information that the addressed. The lack of transparency on the struct a genuine bipartisan consensus for the Executive Branch needs to keep secret and part of the Bush administration has forced sacrifices we are asking Americans to make. the information that must be provided to the Governor Kean, the former Republican gov- My Republican colleagues Senator McCain public to have an informed citizenry. There ernor of New Jersey, to threaten subpoenas. and Senator Hagel, who is speaking at this are no easy answers to striking the right bal- This should not be happening. conference, have cautioned the administra- ance. But we must always be vigilant against As bad as it was for Vice President Cheney tion of the dangers of a failure to be open letting our desire to keep information con- to keep secret how the administration devel- and honest with the American people on the fidential be used as a pretext for classifying oped its energy policy—this is far worse. The situation in Iraq. information that is more than political em- 9/11 commission is not trying to embarrass As Senator Hagel and others have sug- barrassment than national security. Let me the President, any former Presidents, or gested, Congress needs to be more than just be absolutely clear. This is not a propensity anyone else. It is trying to learn what hap- a rubber stamp for the administration’s poli- that is confined to one party or the other. It pened—what went wrong—in hopes that we cies. Tell me what war America has won is a propensity of power that we must guard can become better prepared to protect our- without seeking, achieving, and maintaining against. Because when that happens, we selves from future attacks. In taking this ac- a bipartisan consensus. move away from the bedrock principle of in- tion, the administration unnecessarily raises President Truman worked closely with formed consent that governs all State ac- suspicions that it has something to hide— Senator Vandenberg after WWII to secure tions in a democracy. Getting back, once that it might use national security to hide U.S. support for the United Nations. Presi- again, to our founders who I think were not mistakes. That is not necessary or appro- dent George H.W. Bush consulted closely only extraordinary statesmen, but brilliant priate. with Democratic congressional leaders dur- psychologists—they understood profoundly Meanwhile, on Iraq, the Bush administra- ing the first Gulf War. My husband consulted the dangers and temptations of power. The tion describes progress on many fronts in di- closely with Senator Dole and other Repub- balance of power that they enshrined in our rect contravention to what we are hearing lican leaders during the military action in Constitution and our system of government every day. There undoubtedly are many in- Bosnia and Kosovo. was a check on all of our human natures and stances where U.S. efforts in Iraq are suc- In giving Iraqis more of a say and in mak- the propensity for anyone, no matter how cessful. But what is going right should not ing transactions and contracting more open, convinced they are of the righteousness of delude us about what is going wrong. There the U.S. simply is practicing the habits of their cause and view of the world, to be held is too much at stake to treat war as a polit- democracy—inclusion, empowerment and in a check and a balance by other institu- ical spin zone. openness. Fundamentally, this is about tions. We need to level with the American peo- trust—winning and earning the trust of the Since 9/11, this question has much more sa- ple—the good, the bad and the ugly. For the Iraqi people and trusting in the Iraqi people lience since the War on Terror will often be simple fact is that we cannot fail in Iraq. On who eventually are going to be left to govern fought in the shadows outside the public that fundamental principle, I am in full and themselves and keeping the trust of the limelight. New doctrines of preemption raise profound agreement with the President. The American people. I cannot stress strongly profound questions about democratic over- stakes are simply too high. That means we enough how significant it is that the Amer- sight by making decisions effecting war and need to improve our transparency and credi- ican people across the board, are beginning peace. They also raise profound questions bility in Iraq. In the recent $87 billion sup- to ask such serious questions about our di- about the quality of the intelligence infor- plemental appropriations bill passed by the rection in our efforts to pursue a course in mation that is not open to public scrutiny. Senate, an amendment that I offered, and Iraq, but also from the Middle East to North One of the most critical issues that we con- which was included in the final bill, would Korea as well. An unwillingness of the ad- front is what is wrong with our intelligence, require GAO audits of these opaque supple- ministration to be more forthright can un- the gathering and the analysis and the use? mental appropriations. Another amendment dermine the greatest capital we have, the Anybody who follows what is going on on that I co-sponsored with Senator Harkin capital of human trust between a govern- Capitol Hill is aware that we are locked in a would require the GAO to examine the level ment and the governed. I think we’re on the partisan conflict as to how far to go in ana- of profits being made by U.S. contractors in edge of losing both the confidence of the lyzing the intelligence with respect to Iraq— Iraq. This is a historic mission that our gov- Iraqi people and of the American people. We with the other side complaining that we can ernment has encouraged, going back to can prevent that from happening with a look to the intelligence community, but we George Washington, to make sure that no heavy dose of straight talk. cannot look at the decision makers. We can’t private company profited off the spoils of At the same time that we are trying to look at the uses to which the intelligence war. We need to assure the American people build a democratic society in Iraq, we must

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00083 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15964 CONGRESSIONAL RECORD — SENATE November 25, 2003 abide by those basic principles that we hold very disturbing phenomena—the loss of U.S. I think that calls for serious debate in dear and demonstrate that we are willing to international credibility, the growing U.S. America about the role of America in the be open and have partnerships and build coa- international isolation. world, and I do not believe that that serious litions that are more than just in a name. Both together can be summed up in a trou- debate is satisfied simply by a very abstract, I think this moment in American history bling paradox regarding the American posi- vague and quasi-theological definition of the is wrought with danger and challenge. If you tion and role in the world today. American war on terrorism as the central preoccupa- look back at our security and goals in WWII power worldwide is at its historic zenith. tion of the United States in today’s world. they were clear, the Cold War was clear, the American global political standing is at its That definition of the challenge in my view post Cold War era, prior to 9/11, was a little nadir. Why? What is the cause of this? These simply narrows down and over-simplifies a more muddy because it wasn’t as obvious are facts. They’re measurable facts. They’re complex and varied set of challenges that what our strategic objectives were and how also felt facts when one talks to one’s friends needs to be addressed on a broad front. we would achieve them. abroad who like America, who value what we It deals with abstractions. It theologizes Now we do have, once again, a very clear treasure but do not understand our policies, the challenge. It doesn’t point directly at the adversary. But just proclaiming the evil of are troubled by our actions and are perplexed problem. It talks about a broad phenomenon, our adversary is not a strategy; just assum- by what they perceive to be either demagogy terrorism, as the enemy overlooking the fact ing that everyone will understand that we or mendacity. that terrorism is a technique for killing peo- ple. That doesn’t tell us who the enemy is. are well motivated and people to be trusted Maybe the explanation is that we are rich, It’s as if we said that World War II was not is beyond the range of human experiences and we are, and that we are powerful, and we against the Nazis but against blitzkrieg. We that I understand. This administration is in certainly are. But if anyone thinks that this need to ask who is the enemy, and the en- danger of squandering not just our surplus is the full explanation I think he or she is taking the easy way out and engaging in a emies are terrorists. which is already gone in financial terms, but But not in an abstract, theologically-de- self-serving justification. I think we have to the surplus of good feeling and hopefulness fined fashion, people, to quote again our and care and that we had in almost global take into account two troubling conditions. Since the tragedy of 9/11 which understand- highest spokesmen, ‘‘people who hate things, unanimity after 9/11. We are a resilient, opti- whereas we love things’’—literally. Not to ably shook and outraged everyone in this mistic and effective people and I’m confident mention the fact that of course terrorists country, we have increasingly embraced at that we can regain our footing, but it needs hate freedom. I think they do hate. But be- the highest official level what I think fairly to be the first order of business, not only for lieve me, I don’t think they sit there ab- can be called a paranoiac view of the world. the administration, but also for Congress stractly hating freedom. They hate some of and the American public. It is my hope this Summarized in a phrase repeatedly used at us. They hate some countries. They hate conference will provide more ammunition the highest level, ‘‘he who is not with us is some particular targets. But it’s a lot more and more support for those of us who are try- against us.’’ I say repeatedly because actu- concrete than these vague quasi-theological ing to get back on track and to give America ally some months ago I did a computer check formulations. the chance to lead consistent with our values to see how often it’s been used at the very I think in the heat of debate Democrats and ideals. Thank you very much. highest level in public statements. should not be nay-sayers only, criticizing. The count then quite literally was 99. So They certainly should not be cheerleaders as it’s a phrase which obviously reflects a deep- REMARKS OF ZBIGNIEW BRZEZINSKI some were roughly a year ago. But they ly felt perception. I strongly suspect the per- should stress a return to fundamentals in so WASHINGTON, Oct. 28, 2003.—Ladies and gen- son who uses that phrase doesn’t know its tlemen, 40 years ago almost to the day an far as American foreign policy is concerned. historical or intellectual origins. It is a Above all else in stressing these fundamen- important Presidential emissary was sent phrase popularized by Lenin when he at- tals, Democrats particularly should insist abroad by a beleaguered President of the tacked the social democrats on the grounds that the foreign policy of a pluralistic de- United States. The United States was facing that they were anti-Bolshevik and therefore mocracy like the United States should be the prospect of nuclear war. These were the he who is not with us is against us and can based on bipartisanship because bipartisan- days of the Cuban Missile Crisis. be handled accordingly. ship is the means and the framework for for- Several emissaries went to our principal This phrase in a way is part of what might mulating policies based on moderation and allies. One of them was a tough-minded be considered to be the central defining focus on the recognition of the complexity of the former Secretary of State, Dean Acheson that our policy-makers embrace in deter- human condition. whose mission was to brief President De mining the American position in the world That has been the tradition since the days Gaulle and to solicit French support in what and is summed up by the words ‘‘war on ter- of Truman and Vandenberg all the way until could be a nuclear war involving not just the rorism.’’ War on terrorism defines the cen- recent times. That has been the basis for United States and the Soviet Union but the tral preoccupation of the United States in American foreign policy that has been re- entire NATO Alliance and the Warsaw Pact. the world today, and it does reflect in my markably successful and has led us not only The former Secretary of State briefed the view a rather narrow and extremist vision of to a triumph in the Cold War but to emerg- French President and then said to him at the foreign policy of the world’s first super- ing as the only global superpower with spe- end of the briefing, I would now like to show power, of a great democracy, with genuinely cial responsibilities. you the evidence, the photographs that we idealistic traditions. Bipartisanship helps to avoid extremes and have of Soviet missiles armed with nuclear The second condition, troubling condition, imbalances. It causes compromises and ac- weapons. The French President responded by which contributes in my view to the crisis of commodations. So let’s cooperate. Let’s co- saying, I do not wish to see the photographs. credibility and to the state of isolation in operate and challenge the administration to The word of the President of the United which the United States finds itself today is cooperate with us because within the admin- States is good enough for me. Please tell him due in part because that skewed view of the istration there are also moderates and people that France stands with America. world is intensified by a fear that periodi- who are not fully comfortable with the ten- Would any foreign leader today react the cally verges on panic that is in itself blind. dencies that have prevailed in recent times. That has a number of specific implications same way to an American emissary who By this I mean the absence of a clearly, that are of a policy type. The first and most would go abroad and say that country X is sharply defined perception of what is tran- important is to emphasize the enduring na- armed with weapons of mass destruction spiring abroad regarding particularly such which threaten the United States? There’s ture of the alliance relationship particularly critically important security issues as the with Europe which does share our values and food for thought in that question. Fifty- existence or the spread or the availability or three years ago, almost the same month fol- interests even if it disagrees with us on spe- the readiness in alien hands of weapons of cific policies. But the sharing of values and lowing the Soviet-sponsored assault by mass destruction. interests is fundamental, and we partake of North Korea on South Korea, the Soviet We have actually experienced in recent the same basic beliefs. Union boycotted a proposed resolution in the months a dramatic demonstration of an un- We cannot have that relationship if we U.N. Security Council for a collective re- precedented intelligence failure, perhaps the only dictate or threaten and condemn those sponse to that act. most significant intelligence failure in the who disagree. Sometimes we may be right. That left the Soviet Union alone in opposi- history of the United States. That failure Sometimes they may be right. But there is tion, stamping it as a global pariah. In the was contributed to and was compensated for something transcendental about shared val- last three weeks there were two votes on the by extremist demagogy which emphasizes ues that shouldn’t be subordinated to tac- subject of the Middle East in the General As- the worst case scenarios which stimulates tical requirements. We should seek to co- sembly of the United Nations. In one of them fear, which induces a very simple dichotomic operate with Europe, not to divide Europe to the vote was 133 to four. In the other one the view of world reality. a fictitious new and a fictitious old. vote was 141 to four, and the four included I think it is important to ask ourselves as And we should recognize that in some the United States, Israel, Marshall Islands citizens, not as Democrats attacking the ad- parts of the world Europeans have more ex- and Micronesia. ministration, but as citizens, whether a perience and more knowledge than we and All of our NATO allies voted with the ma- world power can really provide global leader- certain interests as important as ours. I jority including Great Britain, including the ship on the basis of fear and anxiety? Can it think particularly of the Middle East. We so-called new allies in Europe—in fact al- really mobilize support and particularly the should be therefore supporting a larger Eu- most all of the EU—and Japan. I cite these support of friends when we tell them that if rope, and in so doing we should strive to ex- events because I think they underline two you are not with us you are against us? pand the zone of peace and prosperity in the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00084 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15965 world which is the necessary foundation for sovereign if it helps it to gain political legit- The United States as the government, but a stable international system in which our imacy in a country which is searching to de- all of us as citizens and Democrats particu- leadership could be fruitfully exercised. fine itself, which has been humiliated, in larly, will soon have an opportunity to un- Part of the process of building a larger which there is a great deal of ambivalence, derline their commitments to a peaceful so- zone of peace involves also engaging Russia welcoming on the one hand the overthrow of lution in the Middle East because in the next and drawing it into a closer relationship si- Saddam as the majority does, and on the two weeks a group of Israelis and Palestin- multaneously with Europe and with the other hand resenting our presence and our ians are going to unveil a detailed peace plan Euro-Atlantic community. But we can only domination. on which they have been working for months do that if we are clear as to what we are The sooner we do that the more likely is and months. It’s a fifty-page document with seeking in pursuing that strategy. I would an Iraqi authority under an international maps and detailed compromise solutions for say that what we ought to be seeking unam- umbrella that becomes itself more effective all of the major contentious issues, solutions biguously is the promotion of democracy and in dealing with the residual terrorism and which opinion shows 70 percent of the decency in Russia and not tactical help of a opposition that we continue to confront. We Israelis would accept. very specific and not always all that very will not understand what is happening right When that happens what will be the stance useful type purchased at the cost of compro- now in Iraq by analogies to Vietnam because of the United States? Sharon has already mising even our own concept of what democ- I think they are all together misplaced, and condemned it, and not surprisingly. I hope racy is. one could speak at length about it. we do not decide to condemn it. I hope we I am troubled by the unqualified endorse- If you want to understand what is hap- will show at least a positive interest, and ments of a government in which former KGB pening right now in Iraq I suggest a movie many of us as citizens, as people concerned, types are preponderant as a successful de- that was quite well known to a number of should I think endorse it because if we count mocracy. That has been the judgment ren- people some years ago. Maybe not many in on the people who want peace eventually we dered at the highest levels again within the this audience, given the age of some present, will move towards peace. But they have to be last few weeks without any qualification. but it’s a movie which deals with a reality mobilized and given support. I think one of the reasons that that sup- But in fairness we have to say that some of which is very similar to that that we con- that happened before this administration as- port from the United States has not been front today in Baghdad. It’s called ‘‘The Bat- forthcoming is in fact political cowardice sumed office as well. tle For Algiers.’’ It is a movie that deals We should be aware of that. If we are going which I think is unjustified because I have with what happened in Algeria after the Al- real confidence in the good judgment, both of to pursue a bipartisan policy let’s be willing gerian Liberation Army was defeated in the also to accept some shortcomings on our the Israeli people and of the American Jew- field by the French army and the resistance ish community and more basically of the part. But if Russia is to be part of this larger which used urban violence, bombs, assassina- zone of peace it cannot bring into it its impe- basic American preference for a moderate tions, and turned Algiers into a continuing rial baggage. It cannot bring into it a policy peaceful solution. battle that eventually wore down the of genocide against the Chechens, and cannot The last third area pertains more broadly French. kill journalists, and it cannot repress the to strategic doctrine and to strategic com- I do not expect we’ll be worn down, but I mitment. It involves trying to deal with nu- mass media. think we want to understand the dynamics I think we should be sensitive to that even clear proliferation, and we are learning for- of the resistance. This provides a much bet- if they do arrest oligarchs with whom some tunately that we can only deal with that ter analogy for grappling with what is be- of our friends on K Street have shared inter- problem when it comes to North Korea or to coming an increasingly painful and difficult ests. That is not to be approved. It is to be Iran by cooperation with other major pow- challenge for us. A challenge which will be condemned, but surely there are deeper ers. more successful in meeting if we have more That we have to support, and if the admin- causes for emphasizing that it is important istration moves in that direction or is prod- that Russia should move towards democracy. friends engaged in meeting it and if more To increase the zone of peace is to build Iraqis begin to feel that they are responsible ded to move in that direction that is all to the inner core of a stable international zone. for the key decisions pertaining to their the good because there is no alternative. If While America is paramount it isn’t omnipo- country. we to resolve the North Korean problem by tent. We need the Europeans. We need the We will not turn the Middle East into a arms alone we will produce a violent reac- European Union. (Applause) We have to con- zone of peace instead of a zone of violence tion against the United States in South Korea—and don’t underestimate the growing sistently strive to draw in Russia while at unless we more clearly identify the United anti-American tendencies in South Korean the same time being quite unambiguous in States with the pursuit of peace in the nationalism—and will precipitate a nuclear what it is that disqualifies Russia still from Israeli/Palestinian relationship. Palestinian armed Japan and thereby create a whole duel genuine membership in the community of terrorism has to be rejected and condemned, yes. But it should not be translated de facto strategic dynamic in the Far East. democratic, law abiding states. In the case of Iran it is also in our interest Secondly, we have to deal with that part of into a policy of support for a really increas- that the theocratic despotism fade. It is be- the world which is a zone of conflict and try ingly brutal repression, colonial settlements ginning to fade. It is in its thermidorian to transform it into a zone of peace, and that and a new wall. phase. The young people of Iran are increas- means above all else the Middle East. In Iraq Let us not kid ourselves. At stake is the destiny of a democratic country, Israel, to ingly alienated. The women of Iran are in- we must succeed. Failure is not an option. creasingly assertive and bold. Notice the re- But once we say that we have to ask our- the security of which, the well-being of which, the United States has been com- ception given to the Nobel Peace Prize win- selves what is the definition of success? More ner when she returned to Tehran. That is a killing, more repression, more effective mitted historically for more than half a cen- tury for very good historical and moral rea- symptom of things to come. counter-insurgency, the introduction of And if we take preemptory action we will sons. But soon there will be no option of a newer devices of technological type to crush reinforce the worst tendencies in the theo- two-state solution. the resistance or whatever one wishes to call cratic fundamentalist regime, not to speak Soon the reality of the settlements which it—the terrorism? about the widening of the zone of conflict in are colonial fortifications on the hill with Or is it a deliberate effort to promote by the Middle East. But beyond that we still swimming pools next to favelas below where using force a political solution? And if have one more challenge in the area of stra- there’s no drinking water and where the pop- there’s going to be a political solution in tegic doctrine which is how to respond to the Iraq, clearly I think it is obvious that two ulation is 50 percent unemployed, there will new conditions of uncertainty of weapons of prerequisites have to be fulfilled as rapidly be no opportunity for a two-state solution mass destruction perhaps eventually being as feasible namely the internationalization with a wall that cuts up the West Bank even available to terrorist groups. of the foreign presence in Iraq regarding more and creates more human suffering. Here I think it is terribly important not to which too much time has been lost and Indeed as some Israelis have lately pointed plunge headlong into the tempting notion which is going to be increasingly difficult to out, and I emphasize some Israelis have late- that we will preempt unilaterally on sus- accomplish in spite of the somewhat dialec- ly pointed out, increasingly the only pros- picion which is what the doctrine right now tical successes with which we are defining pect if this continues is Israel becoming in- amounts to. The reason for that being we progress in Iraq lately. creasingly like apartheid South Africa—the simply do not know enough to be able to pre- In addition to the internationalization of minority dominating the majority, locked in empt with confidence. That to me involves Iraq we have to transfer power as soon as is a conflict from which there is no extraction. one fundamentally important lesson. We possible to a sovereign Iraqi authority. Sov- If we want to prevent this the United States have to undertake a genuine national effort ereignty is a word that is often used but it above all else must identify itself with peace to revitalize and restructure our intelligence has really no specific meaning. Sovereignty and help those who are the majority in services. today is nominal. Any number of countries Israel, who want peace and are prepared to For four years I was the principal channel that are sovereign are sovereign only nomi- accept peace. of intelligence to the President of the United nally and relatively. Ultimately even the All public opinion polls show that and the States. We had a pretty good idea of the na- United States is not fully sovereign as we go majority of the Palestinians, and I believe ture of the security challenge that we faced around asking for more men and money to the majority of the Jewish community in because the challenge itself was based on a help us in Iraq. this country which is liberal, open-minded, highly advanced scientific technological sys- Therefore there’s nothing to be lost in pre- idealistic and not committed to extremist tem of arms. Today the problem is much maturely declaring the Iraqi authority as repressions. more difficult.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00085 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15966 CONGRESSIONAL RECORD — SENATE November 25, 2003 It’s more elusive. We’re not dealing with tunity for a consumer to opt-out of re- efficiency, and the wisest use of our en- nuclear silos and coordinated structures nec- ceiving solicitations from a person ergy resources. Given the importance essary for an effective assault on American based on information that has been of energy policy, this bill is a very seri- security, structures that we could begin to shared from an affiliate of that person ous matter and I do not take a decision decipher and also technologically seek to un- to oppose such a bill lightly. In my dermine or in the event of warfare paralyze. Several exceptions to the notice and We were really remarkably well informed opt-out requirement are included in view, this conference report does not and in some respects prepared for a central the bill. The first, and most logical achieve the correct balance on several nuclear war to a degree to which we cer- one, is an exception for a business important energy issues, as well as on tainly are not today in dealing with the new sending solicitations to its own cus- a number of environmental issues. challenges of security. tomers. The conference report defines In my work on this legislation, I These can only be addressed if we have this as a ‘‘pre-existing business rela- have heard from large numbers of my what we do not have, a really effective intel- tionship.’’ constituents. They generally regard ligence service. I find it appalling that when The conference report further defines the bill as legislation written by a we went into Iraq we did not know if they categories of relationships that qualify handful of people with the purpose of had weapons of mass destruction. We rolling back environmental protections thought they had weapons of mass destruc- as a ‘‘pre-existing business relation- tion based largely on extrapolation. But that ship’’ and directs the regulators, in- and providing big corporations with also means that our commanders in the field cluding the Federal Trade Commission, giveaways at the expense of average went into battle without any knowledge of to use their regulatory discretion to Americans. Wally Elton from Spring- the Iraqi WMD order of battle. deem any ‘‘any other pre-existing cus- field, VT called my office last Tuesday They did not know what units, brigades or tomer relationship’’ as qualifying for to voice his many concerns about the divisions in the Iraqi armed forces were the definition that may be appropriate bill. Mr. Elton is skeptical about many equipped with what kind, allegedly, of weap- facets of this legislation. ‘‘It makes en- ons of mass destruction. Were there chemical but not clear from the statute. The first category of relationships ergy the top priority for public lands, weapons on the battalion level or on the bri- it relaxes clean air and clean water gade level or were there special units in the that the conference report definition of different divisions that were supposed to use ‘‘pre-existing business relationship’’ standards, which will have bad effects chemical weapons? lists is a relationship based on ’’a fi- on public health. There is nothing for What about the alleged existence of bac- nancial contract between a person and conservation—it is all about giving teriological weapons? Who had them? Who a consumer which is in force.’’ ‘‘Finan- companies subsidies and granting them had the right to dispose of them? What about cial contract,’’ however, is not defined everything on their ’wish list’. In a the allegedly reconstituted nuclear program? time of deficit, we should not be doing At what level of development was it? Where and it is not clear on its face what the term describes. In any case, I believe this.’’ were these weapons to be deployed? The fact In short, Mr. Elton has deep concern the operative concern is that it must is none of that was known regarding a coun- regarding all aspects of this bill, right be a contract in force. try that was permeable, that was not as iso- down to the way it was produced. ‘‘The lated as the Soviet Union. As a conference, I believe the con- All of that cumulatively testifies to a fun- ference report intends that the term bill is not a reconciliation of two bills, damental shortcoming in our national secu- ‘‘pre-existing business relationship’’ in- and was not the product of bipartisan effort,’’ he said. ‘‘They just started rity policy. If we want to lead we have to cludes a contractual relationship be- have other countries trust us. When we over.’’ tween a consumer and a person, where speak that have to think it is the truth. This Many people echo Mr. Elton’s con- is why DeGaulle said what he did. This is the consumer has requested the provi- cern about this bill being written be- why others believed us. This is why they be- sion of a good or service, or affirma- hind closed doors, in ‘‘secret.’’ My con- lieved us prior to the war in Iraq. tively registered to receive a service, stituents tell me that a bill written It isn’t that the Norwegians or the Ger- whether or not a fee is assessed. without the valid contributions of a mans or whoever else had their own inde- Certain business models, such as wide range of people will not reflect pendent intelligence services. They believed those in the online world, do not follow us, and they no longer do. To correct that we the feelings of the majority of Ameri- the traditional fee for services model cans. It is widely known as ‘‘Cheney’s have to have an intelligence that speaks that characterizes the brick and mor- with authority, that can be trusted, and if bill.’’ preemption becomes necessary can truly tell tar world. Financial consideration may Carol Groom of Warren said ‘‘They us that as a last resort preemption is nec- not exchange up front with a customer, are rolling back our environmental essary. Right now there’s no way of knowing. or at all for that matter. Accordingly, protections and cleanup of MBTE will Ultimately at issue, and I end on this, is I urge the regulators to factor in new be put on the taxpayers.’’ Mary Lou the relationship between the new require- and innovative business models when Treat of Putney, VT is worried about ments of security and the traditions of issuing the regulations implementing respiratory diseases caused from pol- American idealism. We have for decades and section 214 of the Fair and Accurate lutants from coal-burning factories, decades played a unique role in the world be- Credit Transactions Act of 2003, par- cause we were viewed as a society that was while Catherine Audetter, also of generally committed to certain ideals and ticularly with regard to the definition Putney, said ‘‘wary of this legislation’s that we were prepared to practice them at of ‘‘pre-existing business relationship.’’ unusual support of oil’’ and lack of home and to defend them abroad. f focus on renewables. Susanna Today for the first time our commitment ENERGY POLICY ACT OF 2003 Liepmann of South Strafford is con- to idealism worldwide is challenged by a cerned about wildlife protection. sense of security vulnerability. We have to Mr. JEFFORDS. Mr. President, I An energy expert in my State likened be very careful in that setting not to become have raised concerns about the trou- this bill to a horror movie: ‘‘My strong self-centered, preoccupied only with our- bling environmental provisions con- recommendation is to oppose this bill selves and subordinate everything else in the tained in the energy bill conference re- in any way you can. This bill should world to an exaggerated sense of insecurity. port several times during the course of We are going to live in an insecure world. have been released on Halloween—it’s a It cannot be avoided. We have to learn to debate on the measure, but I also want- Frankenstein monster of mismatched live in it with dignity, with idealism, with ed to share my concerns regarding the body parts, most of them bad in and of steadfastness. Thank you. energy provisions of the bill. Energy themselves, and even worse when f policy is an important issue for Amer- patched together.’’ ica and one which my Vermont con- For example, in the electricity title, FAIR AND ACCURATE CREDIT stituents take very seriously. The bill it strengthens the hand of FERC by TRANSACTIONS ACT before us seeks to address important permitting mandatory reliability Mr. BENNETT. Mr. President, this issues, such as the role of domestic pro- standards, which is fine, but not as big past Saturday, November 22, 2003, the duction of energy resources versus for- an improvement as some claim. But it Senate passed the Fair and Accurate eign imports, the tradeoffs between the weakens the hand of FERC to require Credit Transactions Act of 2003. Sec- need for energy and the need to protect transmission companies to join RTOs, tion 214 of the conference report, enti- the quality of our environment, and and blocks FERC’s hand on moving to tled ‘‘Affiliate Sharing,’’ adds a new re- the need for additional domestic efforts better market structures. In New Eng- quirement for a notice and an oppor- to support improvements in our energy land, this means that transmission

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00086 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15967 companies now rule the roost, and can the country could be doing much more broader scope of legislation. In this in- essentially dictate terms to the ISO— to capture natural gas that is lost or stance, these concerns coincide. Bal- because their participation in the re- inefficiently combusted at centrally lo- ancing all that is good against all that gional pool is voluntary. These are the cated powerplants, promote the use of is bad in a large and complex bill, I be- regional monopolists—why is our abil- distributed generation, and advance re- lieve this energy bill will do more ity to regulate them on a regional search to promote energy efficiency harm than good to my state, especially basis made subject to their voluntary and more effectively generate elec- to its coal industry, and to the nation agreement? tricity from biomass. as a whole. For another example, this bill is de- This bill should have contained a re- The failure to produce a bill the Sen- ferring to States by holding back newable portfolio standard requiring ate could pass is especially frustrating FERC from mandating regional mar- electric utilities to generate or pur- to me because I have argued for my en- kets; but it harms States by repealing chase a percentage of the electricity tire Senate career that the country PUHCA without any meaningful re- they sell from renewable sources. desperately needs a comprehensive and placement. Two years after the Enron Fifty-three Senators support such a re- responsible energy policy. Recently disaster, and associated revelations quirement, more than a majority of this need has become obvious even to and bankruptcies of many other major this body. We can and should do better the casual observer. Huge portions of players, why are we are repealing on renewable energy sources. This bill the population suffer blackouts, high PUHCA without any serious look at should have set a serious target, we natural gas prices threaten our manu- what would be needed instead? should have had a floor debate on this facturing base, and highly volatile gas- Of course, at a more fundamental issue, and it should have been in the oline prices hurt so many of our citi- level, a bill that gives enormous bene- conference report. zens. Factors like these compel Con- fits to fossil extraction industries and In addition, this bill repeals the pro- gress to make prudent energy policy does not improve CAFE standards is an consumer Public Utility Holding Com- decisions for our nation. These include embarrassment. The failure is mirrored pany Act, among the Federal Govern- developing our domestic energy re- on the electricity side, where it gives ment’s most important mechanisms to sources where it can be done without incentives for supply side electricity protect electricity consumers. The con- harming the environment, such as is production and delivery with merely ference report fails to protect elec- the case with natural gas exploration face-saving measures to advance effi- tricity consumers, investors, and small in the Appalachian Basin that I have ciency and renewables. The list could businesses from abusive transactions promoted by working to extend tax in- go on. between utilities and affiliate compa- centives for the types of non-conven- My recommendation to the Senate is nies within the same corporate family. tional terrain common there. It should to put the Frankenstein bill out of its It also failed to include an amendment include funding advancements in tech- misery. Stop it any way you can. A fili- that I cosponsored, offered by the Sen- nology, as I have advocated with my buster is in order—and it should be ator from Washington, Ms. CANTWELL, support for clean coal tax incentives about a lot more than MBTE. to the fiscal year 2004 Agriculture Ap- and related R&D, to preserve the long- These examples serve to express my propriations bill, which banned all of term viability of our coal industry. It constituents’ frustration with this leg- the Enron-like trading schemes. The should include common-sense programs islation. And their concern is reflected Cantwell amendment passed with the to protect miners and other energy in- by communication that I have had support of 57 Senators, and should have dustry workers who do the dangerous with other energy sector experts as been added to this bill. work that allows our economy to grow. well. Ralph Nader, long regarded as an As I have said before, the American An energy policy we can all support expert in vehicle fuel economy, is deep- people deserve better than this bill, would do more than pay lip service to ly concerned that this bill does nothing and I cannot vote in favor of it as cur- improving the reliability of our elec- to increase the average fuel efficiency rently drafted. Both the environmental trical grid, or to the efficiency and of our passenger cars, which is the and the energy provisions of this meas- conservation measures that must be worst in 20 years. ure will need to be greatly improved part of an effective national energy Steven M. Nadel, executive director when we return next year to get my strategy. of the American Council for an Energy- vote. I am sad to say that the Energy con- Efficient Economy, said in the New Mr. ROCKEFELLER. Mr. President, ference report misses the mark. We York Times on November 21, 2003, that this past Friday I voted against the would have done better to simply pass the vehicle and energy efficiency provi- Energy bill conference report that was the much more balanced bill the Sen- sions of the current energy bill ‘‘are before the Senate. I did this despite ate passed in 2002, and again this year. only a Band-Aid.’’ The 3-month inves- having worked for many years on some I encourage my Republican colleagues tigation released by a joint U.S.-Can- of the bill’s components that I believe in the strongest terms possible to use ada government task force on the will be good for West Virginia and the that bill as a guide, and to move quick- blackout documents a significant and Nation, such as tax incentives and re- ly, with active bipartisan cooperation, overriding reason for the cascading lated research and development of on this important issue early next outage that knocked out electricity clean coal technologies, incentives to year. This will produce a bill that will from New York to Toronto to Detroit: increase domestic energy production enjoy support on both sides of the No one was in charge of the sprawling, through an expansion of existing cred- aisle. I will not hesitate to oppose an- heavily loaded and trouble-prone part its for production from non-conven- other flawed bill, like the one we re- of the transmission grid running tional sources, and incentives to pro- jected last week that I believe would around Lake Erie. The portion of the mote greater use of alternative fuel ve- hurt my State of West Virginia, no midwestern grid centered in Ohio has hicles. However, presented with the matter how many times the majority long worried industry regulators, and complete package under consideration, seeks to shut off debate. the energy bill does create operating I had no qualms about voting to con- This is a bill I had hoped would help rules to lessen the risk of blackouts. tinue debate and to stop a vote on final sustain the long-term health of the But this conference report could do passage. coal industry. I recognize that the bill much more for reliability such as es- As a Senator from a State where coal contains some clean coal tax incen- tablishing uniform net metering re- is not merely a home state industry, tives, which I have worked hard for quirements, promoting the upgrade of but a part of the spirit of the place, I years to enact into law, and related re- existing infrastructure rather than cre- did not come to this conclusion easily. search and development. Unfortu- ating a frenzy over the construction of Many parts of this bill will have little nately, an Energy conference closedout new lines, and investing in the deploy- or no direct impact on my State, while to Democrats made damaging cuts of 20 ment of new transmission technologies. parts of the bill could help West Vir- percent or more to Senate provisions Finally, I have heard from Norman ginia. My first concern when looking at designed to move the utility industry Milleron, former member of Berkeley’s any bill is how it will affect West Vir- toward emission-free coal-fired power Energy Commission in the 1970s, that ginians. Only then do I look at the plants in the foreseeable future. The

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00087 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15968 CONGRESSIONAL RECORD — SENATE November 25, 2003 R&D goal of $2 billion over 10 years was signed off on the provision last year, mean a cut in health benefits next year cut, and then further diluted by includ- and in 2003, Senator DOMENICI included if Congress does not act to stop it. ing earmarked loan guarantees, includ- it in his version of the bill. But it’s not We had a chance, in the Energy con- ing one to strip clean coal technology in the conference report. I wonder how, ference, to shore up the Combined Ben- out of an Alaska demonstration project in an energy bill that is supposed to be efit Fund while also helping make and reconfigure it as a conventional about maximizing our domestic pro- states whole with regard to what was coal plant. The tax provisions, already duction, we can look the other way at owed them in outstanding Abandoned reduced from a level coal and utility miners’ safety. Mine Land contributions. I have heard industry experts project as necessary I would be remiss, if I did not give promises that both Senate and House to truly drive technological develop- credit where credit is due. I have Chairmen have made to deal with this ment, were cut further. That money worked for many years on incentives to issue next year, when the AML Fund is was shifted to allow the oil and gas in- promote natural gas development from up for reauthorization. For the 80-year dustries to receive almost 49 percent of non-conventional sources. These so- old miners’ widows who are facing a all tax incentives, while coal, which called section 29 credits, including in- benefit cut next February, they have produces more than 50 percent of the centives for the capture of coalmine heard promises before, but in their be- nation’s electricity, has to be satisfied methane and the production of coke, half I must say that I sincerely hope with only about 10 percent of the ben- would, respectively, reinvigorate nat- that next year is not too late. efit of the bill. ural gas drilling in the Appalachian I am not happy that I must vote What is probably most troubling for Basin, lower the production costs and against this bill. I am sorry for my my State of West Virginia is that this increase the safety of coal mining, and State of West Virginia, because it de- bill would tilt a playing field that is far help the struggling American steel in- serves better than this bill gives it. I’m from level already dramatically in the dustry get back on its feet. I have ad- sorry that our balanced bill of 2002 has direction of western coal. Under this vocated for these incentives during my been replaced with this lopsided mon- legislation, companies out west that entire career because I understand how strosity. I will continue to push my mine coal on public lands will be re- much they would help my State of colleagues for a balanced and respon- quired to conduct much less stringent West Virginia. I was proud, both last sible energy policy for this nation, and environmental analysis, and then be year and in 2003, to lead a broad bipar- I look forward to a time, hopefully reimbursed by taxpayers for any costs tisan coalition in the Senate pushing soon, when I can vote for such a bill. incurred. At the same time, these com- for extension and expansion of section f panies will be able to mine this coal 29. With regard to these provisions I the taxpayers’ coal—and pay lower roy- commend the conferees. Unlike many AGROTERRORISM: THE THREAT TO alties than have been required until pieces of our bill that went into con- AMERICA’S BREADBASKET now. Coal from the Powder River Basin ference with the House, I believe the Mr. AKAKA. Mr. President, I rise is already cost-competitive in parts of section 29 provisions in the conference today to discuss how to prepare our Na- the eastern United States with coal report have been greatly improved. tion against a terrorist attack on our mined in Appalachia. Finally, this bill I trust that few Senators cast many agriculture. Senator COLLINS, chair- includes a completely unjustified re- votes that are decided purely on the man of the Governmental Affairs Com- peal of a 4.3 cent per gallon excise tax numbers. How much something costs, mittee, is to be commended for holding railroads pay on diesel fuel, which will or how much are we willing to give to a hearing last week on a critical issue make it even cheaper for western coal this industry or that one play into our which has received little congressional companies to flood the eastern United decisions, to be sure. But for this Sen- attention. I am deeply concerned about States with their product. ator, at least, figures tend to be oblit- our agricultural security. In July and Further, I am simply astonished that erated by the people our actions are October 2001, I held two hearings on the in a bill that gives an unprecedented helping. We had a chance in this con- Nation’s preparedness for a bioterror amount of taxpayer money to special ference report to help a group of people attack. The threat to our agricultural interests, and which purports to sup- I have taken into my heart, and for industry by potential terrorists is not port coal, that House conferees not whom I probably have spent more imagined; it is very real. from coal states demanded that a small hours working than any other. I am One expert likened the American ag- but critical provision of mine from last speaking of retired coal miners and ricultural industry to a large bulls-eye year’s Senate bill be removed. This their surviving spouses. stamped across the United States. Dr. provision, which would have added no The Coal Act was created to protect Peter Chalk, a RAND policy analyst, additional cost to the bill, called upon the promise of lifetime health benefits testified that an attack on American the Secretary of Labor to hire, train, for coal miners, who fueled the nation’s livestock could be extremely attractive and deploy as many Mine Safety In- post World War II economic growth, to a terrorist for the following four spectors as she is currently authorized and who made salary and pension con- reasons: (1) a low level of technology is to have. This was meant to overcome a cessions in exchange for those health needed to do considerable damage, (2) decline in the number of mine inspec- benefits. The Coal Act fulfilled a prom- at least 15 pathogens have the capa- tors, and therefore, in mine inspec- ise first made by President Truman in bility of severely harming the agri- tions, that predates this administra- his 1946 agreement with legendary culture industry, (3) a terrorist would tion. This situation, where mine in- UMWA President John L. Lewis. In re- not need to be at great personal risk in spectors spend far more time on the sponse to a coal strike in the late 1980s order to carry out a successful attack, road traveling between mines than and a looming crisis in the miners’ and (4) a disease could spread quickly they ever spend inspecting them for health funds, the first Bush adminis- throughout a city, state, or even the compliance with federal health and tration created the Coal Commission to country. safety rules, will become untenable if find a long term solution. Those rec- In Afghanistan, hundreds of pages of the nearly 25 percent of inspectors ommendations became the basis for the U.S. agricultural documents were dis- scheduled to retire in the next three to Coal Act, which protected the health covered in al-Qaeda’s possession. A re- five years actually leave the already- benefits of more than 100,000 retired cent unclassified CIA report confirmed depleted workforce. Let me reiterate: miners. Today, there are almost 50,000 that the September 11th hijackers were No new authorization; no demand for retired miners and widows who depend attempting to gain knowledge and ac- additional personnel to make sure the on the Coal Act for their health care cess to crop-dusting aircraft which coal mines in this country are safe for security—their average age is about 78. could be used to easily contaminate the miners producing the fuel that gen- Since enactment, the Coal Act has America’s food supply. erates more than half our electricity. faced many challenges, but the com- An agroterrorisk attack would have Just hire and train them now so that bination of sharply escalating drug severe economic costs to agricultural planned retirements do not leave our costs and a series of negative court de- producers, State and Federal Govern- miners unprotected by qualified Mine cisions have resulted in a serious def- ments, and exporters of U.S. food prod- Safety Inspectors. Secretary Chao icit in the Funds. That deficit will ucts. The widespread contamination of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00088 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15969 American produce or livestock could health professionals to participate in They act as a rubber stamp. They give cause mass panic and long-lasting fear community emergency planning activi- the President a blank check. of American produced food products. ties to assist farmers in strengthening This is dangerous to our constitu- Dr. Chalk cited a study conducted in their defenses against a terrorist tional system. The Founding Fathers California that concluded that ‘‘each threat. did not talk about blank checks. They day of delay in instituting effective The Agriculture Security Prepared- talked about checks and balances. In eradication and control measures ness Act would enable better inter- the Federalist Papers they specifically would cost the state $1 billion in trade agency coordination within the Federal talked about the danger of allowing sanctions.’’ The economic repercus- Government. The legislation estab- any one branch to reign supreme. sions are almost unimaginable. lishes senior level liaisons in the De- Instead of independent, coequal Yet within the Federal Government, partments of Homeland Security and branches of Government, today the ex- no agency has the clear responsibility Health and Human Services to coordi- ecutive branch does, indeed, reign su- for preventing and containing an nate with USDA on agricultural dis- preme. Time and again, this adminis- agroterrorist attack. Over 30 Federal ease emergency management and re- tration dictates to Congress, and Con- agencies have jurisdiction over some sponse. The bill also requires DHS and gress submits—even when both Houses part of the response process. This bifur- USDA to work with the Department of of Congress have previously voted to cation of jurisdiction contributes to Transportation to address the risks as- the contrary. confusion among local and State offi- sociated with transporting Animals, The problem with having the execu- cials as to where to turn for assistance plants, and people between and around tive branch dictating to the legislative and advice. According to a recent Gen- farms. branch—the problem with discarding eral Accounting Office, GAO, report No doubt a terrorist attack on Amer- checks and balances—is that it results Federal agencies are confused about ican agriculture could have a dev- in bad public policy, and that is ex- the chain of command. The report astating effect on the United States. actly what we see here, today. states that neither the Food and Drug Our Nation’s capability to counter Both Houses of Congress, with bipar- Administration, FDA, nor the Depart- such an attack is increasing, but more tisan majorities, voted to block the ad- ment of Agriculture, USDA, believe needs to be done. My two bills would ministration’s proposed overtime rule. that they have the authority to enforce help our Nation act now so that a fu- This was the right thing to do. It was security at U.S. food processing plants. ture agroterrorist attack can be avoid- the correct public policy choice be- GAO states that ‘‘both FDA and USDA ed or quickly responded to before the cause this new rule is a stealth attack have instructed their field inspection damage in lives or livestock is too on the 40-hour workweek, pushed by personnel to refrain from enforcing any great. I urge my colleagues to support the White House without a single pub- aspects of the security guidelines be- this overdue legislation. lic hearing. It will effectively end over- cause the agencies generally believe f time pay for dozens of occupations, in- that they lack such authority.’’ cluding nurses, police officers, fire- When questioned at the Govern- OVERTIME PAY fighters, clerical workers, airtraffic mental Affairs Committee hearing last Mr. HARKIN. Mr. President, we are controllers, social workers, and jour- week, Dr. Penrose Albright, Assistant sent here to do the people’s business, nalists. Secretary for Science and Technology but one critical piece of the people’s This proposal is a slap in the face to in the Department of Homeland Secu- business is missing in this omnibus bill the millions of American workers who rity, DHS, indicated that the responsi- that was filed today. There is one depend on overtime pay to support bility of leadership would likely fall to shameful omission. their families and make ends meet. DHS in the event of an intentional at- Both Houses of Congress, on a bipar- We’re not talking about spare change, tack on the Nation’s agriculture and tisan basis, voted for my amendment here. We are talking about taking stated that DHS ‘‘takes these respon- to block the administration’s proposed away some 25 percent of the income of sibilities seriously,’’ but stopped short new rule on overtime. Both Houses many American workers. of asserting that the new department voted to block the administration’s Now that Congress’s vote and voice had overall responsibility. I have asked radical rewrite of the Nation’s over- have been nullified, we are hearing DHS for clarification on this issue. time laws. That amendment passed 54 that the Department of Labor could Dr. Albright also said that an unin- to 45 in the Senate, and 221 to 203 over issue this new rule in the coming tentional contamination of American in the House. The Congress of the weeks. But I am here to serve notice agriculture would not involve DHS. His United States spoke up—clear as a that I will not give up, nor will others response demonstrates a serious defi- bell—and said, ‘‘No, the administration who have fought this. ciency in the Federal Government’s must not strip overtime rights from 8 The American people will not allow crisis response procedure. If there were million American workers.’’ us to drop this issue. They have been an incident, who would lead the re- The administration refused to accept watching this issue closely, because it sponse in the hours or days before the this act of defiance by Congress. The hits so close to home. I pledge that I cause of an outbreak was known? One administration ordered its foot soldiers will offer the overtime amendment to agency must shoulder the responsi- in the House of Representatives to every piece of legislation until we suc- bility for coordinating an immediate strip this provision from the omnibus. ceed. response regardless of the cause. Senator SPECTER and I fought to keep Let’s be clear. This is not just about To address these concerns, I intro- it in, but the administration refused reversing a destructive, misguided duced two bills, S. 427, the Agriculture any cooperation or compromise. In the measure. It is also about this Congress Security Assistance Act, and S. 430, the end, just like that, the administration asserting its independence and refusing Agriculture Security Preparedness Act, nullified the clear will of both Houses to have its votes nullified at the whim to increase the coordination in con- of Congress and the American public. of this administration. fronting the threat to America’s agri- I believe this is an abuse of power, f culture industry and provide the need- and there is a clear pattern to this ed resources. My legislation provides abuse of power. Time and again, we see BLOCKING THE ENFORCEMENT OF for better funding and a better coordi- this administration dictating to Con- OUR NATION’S GUN SAFETY LAWS nated response and defense to an gress, nullifying the work of Congress, Mr. LEVIN. Mr. President, the agroterrorist attack. running roughshod over the will of House-passed version of the Commerce, The Agriculture Security Assistance Congress. Justice and State Departments Appro- Act would assist States and commu- This administration seems to believe priations Bill included provisions that, nities in responding to threats to the in Government by one branch—the ex- if adopted, would severely hamper ef- agriculture industry. The measure au- ecutive branch. When the executive forts of the Bureau of Alcohol, To- thorizes funds for communities and branch speaks, the administration’s al- bacco, Firearms and Explosives states to increase their ability to han- lies in Congress must obediently fall in (BATFE) to enforce our nation’s gun dle a crisis. It also encourages animal line. And, time and again, they do. safety laws.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00089 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15970 CONGRESSIONAL RECORD — SENATE November 25, 2003 Under current law, dealers are re- OREGON HEALTH CARE HERO issues come up, my first question often quired to notify the BATFE of the sale ∑ Mr. SMITH. Mr. President, I rise is, ‘‘What’s Booth’s take on this?’’ of two or more handguns to the same today to salute a trio of Oregon Health Even on rare occasions when we have person within five business days. The Care Heroes. Three agencies, El disagreed on an issue, I found it valu- House-passed provisions would prohibit Programa Hispano, the Desarrollo Inte- able to understand his perspective. As the public release of information re- gral de la Familia, and the Oregon far as I am concerned, nobody knows lated to multiple handgun sales. The Council for Hispanic Advancement, are agriculture in Utah like Booth House language would also prohibit the working together to provide much Wallentine, and I dare say that no release of information related to trac- needed mental health services to Or- state Farm Bureau director knows ing requests on guns used in crimes. egon’s growing Latino community. Congress and the legislative process Eliminating the public availability of Their combined effort is helping clients like Booth Wallentine, either. this data would make it more difficult improve relationships, find a listening This combination of expertise in the to monitor the activities of reckless ear and access the services they need substance and in the process of agri- gun dealers. to live healthier lives. culture policy-making has helped to In addition, the House-passed lan- Funded by a grant from Multnomah guage would prohibit the BATFE from set Booth apart as a highly effective County, the agencies work with Latino advocate on behalf of Utah agriculture issuing a rule requiring Federal Fire- families and individual clients facing a arm Licensees to take a physical in- interests. It has also helped him to pro- variety of challenges: from depression vide service in various other ways. He ventory of their firearms. A physical and anxiety to post-traumatic stress inventory recently revealed that a Ta- served as vice chairman of the Salt and domestic abuse. Part of the success Lake Chamber of Commerce as well as coma, WA, gun dealer could not ac- of this project is that counselor and count for the sniper rifle used by the chairman of the board of Utah State client share language and culture. Be- University. Remarkably, both institu- Washington, D.C. area sniper and more fore these agencies began serving cli- than 200 other guns. The House lan- tions awarded him their respective dis- ents, finding a counselor who speaks tinguished service awards. He also guage would have required the imme- Spanish or understands Mexican and diate destruction of records of ap- served as the president of the Utah Latin American cultures was next to Council on Economic Education and proved firearms purchases and trans- impossible. fers generated by the National Instant In a recent profile published by the chaired the Utah Farm Service Agency Criminal Background Check System. Portland Oregonian, counselor Marcos Committee on Risk Management. The retention of these records has as- T. Sanchez discussed the importance of Somehow he found the time to help es- sisted law enforcement officials trying sharing language and culture with cli- tablish the National Mormon Pioneer to prevent guns from getting into the ents. Trail Foundation and was asked to hands of criminals and identifying gun It makes such a big difference when you chair the Department of the Interior’s trafficking patterns. come in and the receptionist can speak to Historic Trail Commission. The House-passed provisions were you in Spanish. People walking by can say, But wait a minute, there’s more. never the subject of hearings and are ‘‘Have you been helped?’’ When you go to the Booth Wallentine was Utah State Uni- not supported by any major law en- clinic, you’re already feeling alienated. But versity’s very first inductee in their forcement organizations. They could if you don’t have to risk as much to get these services, you are much better off. Agriculture Hall of Fame, he was shield reckless and negligent gun deal- named the Future Farmers of America The project is also successful because ers from public scrutiny and weaken Farm Leader of the Year, a Friend of it networks within the Latino commu- the BATFE’s oversight and enforce- the Cattlemen, a Friend of Utah Wool nity and employs nontraditional meth- ment authority. They should not be Growers, and he earned the Utah State ods to help clients. Therapists conduct adopted by the Senate. Extension Leadership Award. Booth home visits to work with whole fami- f was also officially recognized by the lies and to better understand the needs Environmental Protection Agency for ADDITIONAL STATEMENTS of individual clients. This individual- his environmental leadership in help- ized approach to care, combined with ing farmers to improve Utah’s water RECOGNIZING THE 1ST ANNUAL culturally sensitive services, will en- quality. MARCH OF DIMES RADIO BROAD- sure that quality care reaches those CASTERS FOR BABIES EVENT who need it most. As the service ex- I should point out that this is not a ∑ Mr. BOND. Mr. President, today I pands, it will serve as a national model complete list, but it serves to make the recognize the St. Louis radio commu- for bringing together the best in com- point that Booth Wallentine is a great nity for joining together to pioneer the munity care and mental health serv- American. He has helped Utah in so 1st Annual March of Dimes Radio ices. many ways. Broadcasters For Babies Event at the Through the vision of the Latino I know that I will miss him dearly, Saint Louis Galleria on November 8, Network and the resources of Mult- but I gain some comfort knowing that 2003. This was the first event of its kind nomah County, these agencies are while he goes into retirement, we con- nationwide. Together, Clear Channel reaching people in need. They connect tinue to benefit from the wisdom he Radio, Emmis Broadcasting, Bonne- with people and care for clients in a shared with us and the legacy he has ville St. Louis Radio Group, KTRS The unique way that is making a real dif- left. I thank my friend, Booth Big 550, 1380 THE TEAM, Q95.5 Radio ference in the lives of Latino Orego- Wallentine for serving so long and so One, Classic 99 and Infinity Radio nians. I thank El Programa Hispano, well. I pray that the Lord will bless raised almost $300,000 to support re- the Oregon Council for Hispanic Ad- him and his sweet wife, Raeda, in their search and programs to save babies vancement and the Desarrollo Integral retirement.∑ from premature birth, the leading de la Familia for their excellent work. They are heroes to the people they f cause of birth defects and infant mor- ∑ tality. serve and to all Oregonians. One out of every eight babies in the f TRIBUTE TO PHILIP SHANNON U.S. is born prematurely, some so tiny TRIBUTE TO C. BOOTH they can’t even cry. In nearly half of WALLENTINE ∑ Mr. DODD. Mr. President, I rise in these cases, no one knows why. With ∑ Mr. HATCH. Mr. President, I give tribute to Philip J. Shannon, of Nor- their 5 year, $75 million Prematurity tribute to my dear friend C. Booth wich, CT, passed away on Tuesday, No- Campaign—no one is working harder Wallentine, who, just days ago, began a vember 11, 2003, at the age of 85. Philip than the March of Dimes to find out very well earned retirement after serv- was a dedicated public servant, a loyal why babies are born too soon. I com- ing for 41 years in the Farm Bureau. Democrat, and above all, a good friend. mend the St. Louis radio community Thirty-one of those years he served as He was a Norwich native who would for their support of the March of the executive director of the Utah dedicate much of his life to serving the Dimes. With their help we will find the Farm Bureau. people of his hometown. He graduated causes of premature birth and gain Booth is an institution in my State, from St. Patrick’s School and the Nor- more knowledge to save more babies.∑ and I have to say that when agriculture wich Free Academy. Like so many in

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00090 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15971 Norwich and across the State of Con- the mills that are located in small THE LIFE OF BRIAN HOWELL necticut, he would go on to work in the rural communities where they provide ∑ Mr. FEINGOLD. Mr. President, today manufacturing industry as a machinist the backbone of the local economy. I pay tribute to a friend who lived his During his years of service to his in- at Pratt and Whitney and as a partner life in the service of his community dustry, Joe McCracken was a fixture in at the Norwich Machine and Tool Com- and his family. his town and served as an advisor and pany. Brian Howell was a committed jour- mentor to many of our predecessors in During his decades of work as a pub- nalist, and his activities reached far lic official in Norwich, Philip was this body. Warren Magnusen, Scoop Jackson, Mark Hatfield, Bob Pack- beyond reporting and editing. He wrote never one to stay silent on any issue eloquently about the importance of that he felt was important to the citi- wood, Frank Church, Jim McClure, Jim Melcher, and other stalwarts of our honest government, and voiced outrage zens of that city. That approach won when news broke of political corrup- him many allies, and it certainly western Senate delegation looked to Joe for counsel and advice on public tion in Wisconsin’s State legislature. earned him his share of critics. But ev- Brian worked his way to become edi- eryone admired the passion and the land issues affecting his constituents. He represented them with a passion tor of Madison Magazine, a position he dedication that Philip Shannon took after serving as features editor of brought to his many years of public and commitment that was exemplary. Joe McCracken was a visionary and the Wisconsin State Journal. service. Brian Howell’s dedication extended He helped spearhead a series of im- was responsible for creating and influ- encing countless pieces of legislation to the University of Wisconsin-Madi- portant local projects, including the and regulations that benefitted his in- son, where he taught a course on public Norwich Golf Course and development dustry, the people that work in it and campaigns and publicity. Shortly after along route 82. He also had the fore- the communities that depend on it. the attacks of September 11, Brian sight to successfully campaign against The Small Business Set Aside Pro- worked closely with students to pub- selling the city’s public utilities de- gram, as just one example, assured lish an issue of their student magazine partment to a private corporation. The small, family-owned mills a fair share that captured the circumstances, decision to keep the department ulti- of the Federal timber sold from our na- changes, and emotions surrounding the mately made the city more money tional forests and lands manager by attacks. Always eager to engage young than it would have received from the the Bureau of Land Management. writers, Brian knew the power of good sale. Joe McCracken was a pioneer in journalism. Those are only a few of Philip Shan- crafting the policies and regulations Brian’s voice remained strong, even non’s many accomplishments. In the affecting the Oregon and California into his last days. He wrote openly words of Bill Stanley, a former State Railroad lands in western Oregon, about his disease, lung cancer. In call- Senator, ‘‘he did more for Norwich today known as the ‘‘O & C’’ lands. He ing for increased research about the than anyone will ever know.’’ did this both as a professional staff per- disease, Howell knew that despite lung His work on behalf of the Democratic son for the Department of the Interior cancer’s stigma and common associa- Party in Norwich was so tireless that and as an advocate for his trade asso- tion with tobacco, its sufferers de- he became known as ‘‘Mr. Democrat.’’ ciation. served the same scientific dedication He served as Democratic town chair- Under Joe McCracken’s representa- that other patients received. man for 20 years and represented Con- tion, the small, family-owned mills Right before he passed, Brian re- necticut’s 19th District on the Demo- throughout the west prospered. Many ceived by telephone the UW-Madison cratic State Central Committee. In his of them are under second and even journalism school’s Director’s Award role as a party leader, he recruited nu- third generation management. Unfor- for Distinguished Service to Jour- merous candidates who went on to hold tunately, many of them no longer nalism. He greatly deserved this high local and State offices. exist. honor. Philip was as good to his friends as After Joe’s retirement in the early My wife Mary and I will truly miss he was to the Democratic Party. He 90s, a sea change in Federal policies Brian. He was a friend of ours for many was a longtime friend of my father, and regulating the management of public years and my wife had the distinct I will never forget how he supported me forests unfolded to the point that very pleasure of working with him at Madi- when I first ran for the Senate back in little timber is being provided from son Magazine. His friendship is some- 1980. these forest lands and many of the thing we will always treasure and hold Norwich is a better place today be- mills have closed. close to our hearts. cause of the efforts of Philip Shannon. Unfortunately, these were the mills Brian’s death is a great loss to the He will be greatly missed, both by the Mr. McCracken fought so hard to pre- Madison community and to Wisconsin people he served and by everyone who serve. Those that have survived owe their existence largely to Joe as a whole. I am saddened by his pass- knew and loved him. McCracken. I offer my most heartfelt sympathies ing and join in honoring his achieve- Joe was born in Butte, MT in 1925. He to Philip’s wife Cresencia, his four chil- ments. I know that he will live on served his country as a lieutenant in through all that he accomplished, and dren, six grandchildren, three great- the United States Marines. He attended grandchildren, and his entire family.∑ through everything that he taught Princeton University where he earned those of us fortunate enough to call f a masters degree in political science. him a friend.∑ He had a distinguished career with JOSEPH W. MCCRACKEN f ∑ the Department of Interior, and specifi- Mr. SMITH. Mr. President, I rise cally, the Bureau of Land Management today to acknowledge the passing of TRIBUTE TO PAUL WALLACE- prior to taking the leadership position BRODEUR Joseph W. McCracken on October 26, with the Western Forest Industries As- ∑ 2003. sociation. Mr. JEFFORDS. Mr. President, For over 4 decades, Mr. McCracken Joe McCracken was a unique indi- today I pay tribute to Paul Wallace- represented the forest products indus- vidual who left a profound imprint on Brodeur, an outstanding Vermonter try in Oregon and other western the growth and evolution of public for- and a national leader in the area of States, as the Executive Vice President est policy and the industry that is so health care reform. As he prepares to of Westen Forest Industries Associa- closely dependent on public forest retire from his position as director of tion. Mr. McCracken represented a sec- lands. His contributions to this body in the Office of Vermont Health Access in tor of the industry that I hold in par- assisting us in the thoughtful debate Waterbury, VT, it is important to re- ticularly high esteem—a sector com- and deliberation of these important flect on how much one person can ac- prised of small, family-owned sawmills matters are worthy of our formal rec- complish in serving others. and plywood plants. ognition. Paul has been on the forefront of pro- These are the mills that traditionally I extend my heartfelt sympathy to viding individuals with greater access depended on our Federal forest lands Joe McCracken’s wife Janet and his to the health care delivery system. As for their supply of timber. These are two children, Jon and Tamsen.∑ the State Medicaid director, which is

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00091 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15972 CONGRESSIONAL RECORD — SENATE November 25, 2003 Vermont’s second largest insurance elor’s degree in Criminal Justice. Be- dured these past decades have been for- program, Paul helped Vermont obtain ginning his career as a Special Agent, gotten. Those who time and again pro- the distinction of having one of the his first assignment was the San Fran- nounced Animas-La Plata a lost cause lowest uninsured rates in the country. cisco office where he investigated gen- obviously didn’t know the stuff Sam Under Paul’s leadership, Vermont eral criminal matters. Just 2 years was made of. I knew—and I knew that broadened its eligibility standards and later, he began a one-year assignment so long as there was any chance at all, was one of the first States in the coun- as the Special Agent Afloat aboard the he would keep fighting. Sam has a war- try to expand Medicaid services to chil- USS Enterprise (CVN 65). During the rior’s heart, and it was an honor to do dren under the Dr. Dynasaur program. tour, he led several high-profile inves- battle alongside him. During his tenure, Medicaid programs tigations while the ship and battle There are generations of Coloradoans grew to cover 143,313 Vermonters. group were deployed in the Western Pa- not yet born, who may never know the Paul began his career in Vermont as cific, and for this he received the name of Sam Maynes, but who will live a social worker at the Brandon Train- NCISRA San Francisco Special Agent better lives because of his tenacity. So ing School. He quickly rose to leader- of the Year Award for Distinguished congratulations to them, Sam, and ship positions as a direct provider and Service. happy birthday to you.∑ then consultant in the field of mental Later, Mr. Billington graduated from f health, followed by his position as the the Department of Defense Polygraph TRIBUTE TO VERMONT ASSOCI- chief social worker for the Vermont Institute in Anniston, AL, and was re- ATES FOR TRAINING AND DE- State Hospital. It came as no surprise assigned as a Special Agent Polygraph VELOPMENT, INC. to those of us who know Paul that he Examiner to the NIS Northeast Region ∑ was selected in the mid-1980s to lead Polygraph Site in New London, CT. He Mr. JEFFORDS. Mr. President, the State of Vermont’s efforts in cre- rose through the ranks first as the Site today I would like to pay tribute to Vermont Associates for Training and ating universal access to health care as Manager and later as the Special Agent Development as it celebrates 20 years the executive director of the Vermont in Charge of The Polygraph Office. of service in meeting the employment Health Policy Council and through his As Division Head at NISHQ, he con- needs of Vermonters, age 55 and older, work for the Vermont Health Care Au- ducted oversight of all polygraph mat- who are ready, willing, and able to thority. Also during the mid-1980s he ters for the Department of the Navy. In 1994, Al Billington was appointed work. spearheaded the creation of the I also acknowledge the organization’s Assistant Special Agent in Charge of Vermont Ethics Network, an organiza- founding executive director, Pat the Northeast Field Office in Newport, tion dedicated to increasing the under- Elmer, for her vision, leadership, and standing of ethical issues, values, and RI, handling all criminal and fraud in- management skills as she has guided choices in health and health care. vestigations. the organization during the past two In 1997, he was promoted and reas- Over the course of 40 years, Paul has decades. The agency has developed a been involved with virtually every signed as the Special Agent in Charge number of programs related to career health policy initiative in Vermont, of the NCIS Middle East Field Office in counseling, job search, and computer particularly the State’s efforts to ex- Bahrain. He served with distinction training in order to prepare individuals pand health coverage. He is personally during this time of heightened alert for the work place. In addition, they responsible for authoring Vermont’s and terrorist activity and was awarded provide on-the-job training stipends to 1115 waiver, which over the years, and the Navy Superior Civilian Service allow people the opportunity to build with many amendments, has provided Award by VADM C.W. Moore, Com- their resumes through real-life work more expansive and flexible Medicaid mander Fifth Fleet, USN. experiences. services to Vermonters. In his quiet Two years later, he was transferred Too often employers may overlook unassuming way, Paul is an integral to NCIS Headquarters and served as this valuable, and often untapped, re- part of the health care delivery system the Deputy Assistant Director for In- source, which older workers have to in Vermont and has gained recognition vestigative Support. offer the workplace. I commend for being a national health policy lead- In 2001, Mr. Billington assumed his Vermont Associates for leading the er and mentor. He has always brought present position as the Special Agent way in changing the mindset of many a steadfast commitment and institu- in Charge of the NCIS Washington, DC, companies by creating new opportuni- tional knowledge to solving the prob- Field Office. ties for employees and employers alike. lem at hand while maintaining a vision Upon his retirement, Mr. Billington As a member of the Senate Com- for improving Vermont’s health care will be returning to his home in Ports- mittee on Health, Education, Labor, system. mouth, RI, spending time with his wife, and Pensions, HELP, which has juris- Paul’s unwavering commitment to- Bonnie, and son, Matthew. diction over the Older Americans Act, I ward improving the health status of I join with Al Billington’s colleagues commend Vermont Associates for their every Vermont citizen is a great lesson in expressing thanks for his dedication wise and prudent use of funding from for all public servants. Vermont is and valuable service to our Nation, and this act. Vermont Associates, and their truly indebted to him. His deep com- in wishing him success in all his future colleagues across the country, were mitment to the citizens of the Green endeavors.∑ very helpful to me as I chaired the Mountain State has endeared him to f HELP Committee during the long- us. He has our best wishes for the fu- 70TH BIRTHDAY OF SAM MAYNES awaited reauthorization of this legisla- ture.∑ tion. ∑ Mr. CAMPBELL. Mr. President, I f I have a strong admiration for Pat’s rise today to congratulate Sam Maynes dedication and the many others, in- ALBERT W. BILLINGTON of Durango, CO, on his 70th birthday, cluding board members and volunteers, ∑ Mr. CHAFEE. Mr. President, I am although it would be more appropriate who have built Vermont Associates. pleased today to draw the Senate’s at- to congratulate those with the good Vermont is grateful to Vermont Asso- tention to a public servant who has fortune to have had Sam for an advo- ciates for their steadfast commitment given meritorious service to Rhode Is- cate or friend over the years. I have to equal access to employment. Collec- land and to the Nation. been lucky enough to count him as tively, they have greatly improved the Since 1981, Albert W. Billington has both. quality of life in our small State. For been a Special Agent with the Naval While others have lived as many that, Vermont owes a great deal of Criminal Investigative Service (NCIS). years, very few have achieved a legacy gratitude.∑ In December, Mr. Billington will retire as significant and lasting as his will f from the NCIS. He leaves a record of prove to be. The Southern Ute Tribe, achievement, and his service will be Ute Mountain Ute Tribe, and all of TRIBUTE TO JOHN R. (JACK) missed. southwestern Colorado will be enjoying CHAILLET Al Billington graduated from North- the fruits of Sam’s hard work long ∑ Mr. WARNER. Mr. President, I rise eastern University in 1977 with a bach- after the struggles and acrimony he en- today to pay tribute to an outstanding

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00092 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15973 Virginian and patriotic American who Federal job applicants, field investiga- Edwards, curator of the Museum of died of lung cancer on November 8, tions for the Environmental protection Aviation at Robins Air Force Base for 2003—John R. (Jack) Chaillet, of Fair- Agency, and court security assign- the past 14 years who passed away Sat- fax, VA. ments for the U.S. Marshal’s Office. urday after a lifetime of service. Jack, age 69, was a retired D.C. Po- He was a native of Washington and a Lieutenant Colonel Edwards was lice detective, who investigated many graduate of Anacostia High School, born in Whigham, Georgia 67 years ago. of the high-profile murder cases of the where he was an outstanding football Interested in flight from a young age, 1960’s and ’70’s. He served 211⁄2 years on player and received the All-Metro he attended the United States Air the Metropolitan Police Department Award for two consecutive years. He Force Academy in Colorado as a mem- before he retired in 1978, serving most served in the Army as a military police ber of its fourth class. He then served of his career as a detective in the officer in Germany. in the Air Force for 33 years, including Homicide Division. He was a Member of the American a tour in Vietnam where he earned the In 1977, he was a lead investigator in Legion, Almas Temple Shriners, Scot- Silver Star, the Distinguished Flying the Hanafi Muslim murders in which tish Rite, Masons, and the Fraternal Cross and many other honors from the seven persons were slain and then D.C. Order of Police. He was a football United States and foreign govern- Council member Marion Barry and two coach for the Camp Sprints (Maryland) ments. others were wounded after 12 Hanafis Boys Club for many years and a volun- Darwin Edwards was able to combine seized the District Building and two teer for charitable golf tournaments his love of aviation and his desire to other facilities to avenge the death of sponsored by the Fraternal Order of serve his fellow Americans by joining members of their sect. Over two days, Police and Heroes, Inc. the Museum of Aviation at Warner Survivors include his wife, Marie, of the group held 134 people hostage. Robins. This museum, with 93 aircraft Fairfax; his sons, Kurt of Fairfax and Among hundreds of other cases, he and missiles, is a first-rate facility Kyle of Berryville, daughters-in-law and his partner were first on the scene with aircraft spanning World War II Karolyn and Caroline; and one grand- of the car-bomb murder in 1976 at though the Cold War, including fight- child, Logan James as well as many ers, bombers, and cargo and trainer air- Sheridan Circle of Chile’s former Am- other relatives and a host of friends in craft. It also includes helicopters and bassador to the United States, Orlando the metropolitan area. missiles. Letelier. This case was taken over by My sincerest condolences are offered Darwin Edwards worked hard to the FBI. In one of his cases involving to his family and friends.∑ build up the museum. His personal the murder of a young female child, he f touch was a big reason the museum has collected the largest number of pieces developed into the fourth largest avia- DEDICATION OF THE BURCH of evidence ever gathered in a homicide tion museum in the United States. TRIBAL OFFICE BUILDING case in D.C. including doorframes and Until he was stricken ill at his home bathtub. ∑ Mr. CAMPBELL. Mr. President, several weeks ago, he was working on During his years in the Homicide Di- today I rise to observe the dedication its $30 million Century 2000 Next Gen- vision, Mr. Chaillet developed a reputa- and naming of a building by the South- eration expansion program. tion as an investigator with patience ern Ute Indian Tribe in Ignacio, CO, a I have known Darwin Edwards for and thoroughness in the vital collec- place I am privileged to call home. many years and sincerely express my tion of evidence. After retirement, he On December 1, 2003—about a week admiration and respect for him. Sev- was told that many homicide detec- from now—the Tribe will dedicate a eral times, I used the museum to hold tives reviewed his reports for guidance new tribal office building to the mem- Christmas receptions for cadets who in their cases and considered him a leg- ory of its former chief, Mr. Leonard had received nominations to the serv- end in homicide investigation. He was Burch, who passed away earlier this ice academies. Each time, Darwin took profiled, along with others, in a Wash- year. The building will bear his name. the time to take the young men and ington Post weekend magazine article Leonard Burch was a quiet man of women on a personal guided tour of the as one of the most outstanding D.C. enormous vision, who led the Southern museum, providing his insight and de- homicide detectives. He worked many Ute Indian Tribe for nearly three dec- tailed knowledge of this outstanding round-the-clock days and nights know- ades, from a little-known, mostly poor facility. ing the case must be pursued while the tribe to the pre-eminent energy-pro- Darwin Edwards leaves behind his trail was hot. There was no overtime ducing Indian tribe in the world—a wife, Sheila, his two sons, Richard and pay and the reward was in knowing the leader among tribes, just as Leonard Howard, as well as a granddaughter, case was closed and another criminal was a leader among men. and six sisters and three brothers. He Leonard’s dream for the Tribe was was taken off the streets. also leaves behind many friends as well Mr. Chaillet helped organize and lec- audacious, but he persisted where oth- as a grateful Nation. ers might have faltered and he be- tured in a homicide school sponsored We will miss Darwin Edwards greatly lieved—believed in his vision, but more by the D.C. Police Department which and we extend to his family and friends important, believed in his people: his ∑ detectives from all parts of the country our heartfelt condolences. faith in the inherent strength of the attend and, therefore, made his name f Southern Utes was unshakeable. known through departments across the it speaks well of the Southern Ute TRIBUTE TO NORMAN TOBIN U.S. In these classes, he had a flair for Tribe that they were perceptive enough ∑ Mr. LAUTENBERG. Mr. President, I presentations in slide shows which to know a great leader when they saw rise to commemorate the passing of kept the classes interesting, dramatic one, and continued following his lead Norman Tobin on October 12, 2003, and shocking. He also lectured at even when the way was difficult. Leon- someone I respected and admired for Criminal Justice classes at several ard and the Tribe deserved each other, many years. Norman and I belonged to community colleges and universities. and their mutual commitment was re- the same synagogue for decades. Prosecutors liked to work with him warded in a community transformed. He was a talented, generous person as they knew they could count on him Leonard Burch will be missed by the who was a leader in philanthropy and to help make their case with his metic- Southern Ute Indians, by me, and by the Jewish community. I considered ulous notebooks, eloquent speaking all who call southwest Colorado home. Norman and his wife Zelda good friends voice and unflappability. He developed He remains in our hearts and, with the and know how strong the ties were in many contacts in the street and at dedication of the Southern Ute Indian the Tobin family. Lorton Reformatory who provided him Tribal Office Building, his memory will I sent my deepest sympathy to the with information on open cases even be forever honored by the tribe he Tobin family and an acknowledgement after his retirement. loved.∑ of my gratitude for having been en- After retiring from the Police De- f riched by my contact with this great partment, he performed security work man. for Drug Fair, former Regency Hotel, HONORING LTC DARWIN EDWARDS I ask to print a copy of the obituary and the National Press Building. He ∑ Mr. CHAMBLISS. Mr. President, I that appeared in the Star Ledger in the also did background investigations of wish to speak about my friend, Darwin RECORD.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00093 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15974 CONGRESSIONAL RECORD — SENATE November 25, 2003 There being no objection, the mate- S. 1156. An act to amend title 38, United nounced that the Speaker has signed rial was ordered to be printed in the States Code, to improve and enhance the the following enrolled bills: provision of health care for veterans, to au- RECORD, as follows: S. 1768. An act to extend the national flood thorize major construction projects and insurance program. [From the Newark (NJ) Star-Ledger, Oct. 12, other facilities matters for the Department H.R. 1367. An act to authorize the Sec- 2003] of Veterans Affairs, to enhance and improve retary of Agriculture to conduct a loan re- NORMAN TOBIN, PRESIDENT OF REALTY authorities relating to the administration of payment program regarding the provision of APPRAISAL FIRM, ACTIVE IN COMMUNITY personnel of the Department of Veterans Af- veterinary services in shortage situations, Norman L. Tobin, 81, of West Orange died fairs, and for other purposes. and for other purposes. yesterday at home. S. 1895. An act to temporarily extend the Services will be at 9:30 a.m. Tuesday in programs under the Small Business Act and The enrolled bills were signed subse- Temple Sharey Tefilo-Israel, South Orange. the Small Business Investment Act of 1958 quently by the President pro temore Arrangements are by the Menorah Chapels through March 15, 2004, and for other pur- (Mr. STEVENS). at Milliburn, Union. poses. A self-employed realtor and appraiser, Mr. H.R. 421. An act to reauthorize the United At 3:49 p.m., a message from the Tobin was the president of Norman Tobin & States Institute for Environmental Conflict House of Representatives, delivered by Co. in Maplewood for more than 35 years. Resolution, and for other purposes. He was a graduate of the Newark School of H.R. 1683. An act to increase, effective as of Mr. Hays, one of its reading clerks, an- Fine & Industrial Arts. December 1, 2003, the rates of disability com- nounced that the House has agreed to Mr. Tobin served in the Army Signal Corps pensation for veterans with service-con- the amendment of the Senate to the during World War II. nected disabilities and the rates of depend- resolution (H. Con. Res. 339) providing A former president of Temple Sharey ency and indemnity compensation for sur- for the sine die adjournment of the Tefilo-Israel, he was a member of the vivors of certain service-connected disabled first session of the One Hundred Eighth Friends of the Memorial Library, the Cham- veterans, and for other purposes. Congress. ber of Commerce and the Unity Club, all in H.R. 1821. An act to award a congressional Maplewood. gold medal to Dr. Dorothy Height in recogni- f He was also a member of the Board of Real- tion of her many contributions to the Na- tors of the Oranges and Maplewood. tion. ENROLLED BILLS PRESENTED Mr. Tobin was currently president of the H.R. 1828. An act to halt Syrian support for Appraisers of America and served as a judge terrorism, end its occupation of Lebanon, The Secretary of the Senate reported on the Condemnation Court of Essex County and stop its development of weapons of mass that on November 25, 2003, she had pre- for 35 years. destruction, and by so doing hold Syria ac- sented to the President of the United He was the dinner chairman of the Lauten- countable for the serious international secu- States the following enrolled bills: berg Cancer Research Foundation and was rity problems it has caused in the Middle instrumental in raising two millions dollars East, and for other purposes. S. 189. An act to authorize appropriations in funds. H.R. 1904. An act to improve the capacity for nanoscience, nanoengineering, and nano- In 1974, he was awarded the Man of the of the Security of Agriculture and the Sec- technology research, and for other purposes. Year Maple Leaf Award for community serv- retary of the Interior to conduct hazardous S. 579. An act to reauthorize the National ice by the Town of Maplewood. fuels reduction projects on National Forest Transportation Safety Board, and for other Mr. Tobin brought back the first Holocaust System lands and Bureau of Land Manage- purposes. Torah from Czechoslovakia to Temple ment lands aimed at protecting commu- S. 1152. An act to reauthorize the United Sharey Tefilo-Israel. nities, watersheds, and certain other at-risk States Fire Administration, and for other An artist, his work is on exhibit at the lands from catastrophic wildfire, to enhance purposes. Newark and Montclair museums and also efforts to protect watersheds and address S. 1156 An act to amend title 38, United displayed at Silermine Shows, the Sinai Mu- threats to forest and rangeland health, in- States Code, to improve and enhance the seum in Los Angeles, Calif., and the Simon cluding catastrophic wildfire, across the provision of health care for veterans, to au- Wiesenthal Museum of Tolerance. He also landscape, and for other purposes. thorize major construction projects and has a sculpture in the registry of the Holo- H.R. 2115. An act to amend title 49, United other facilities matters for the Department caust Museum, Washington, D.C.∑ States Code, to reauthorize programs for the of Veterans Affairs, to enhance and improve f Federal Aviation Administration, and for authorities relating to the administration of other purposes. personnel of the Department of Veterans Af- MESSAGE FROM THE PRESIDENT H.R. 2417. An act to authorize appropria- fairs, and for other purposes. Messages from the President of the tions for fiscal year 2004 for intelligence and S. 1768 An act to extend the national flood United States were communicated to intelligence-related activities of the United insurance program. States Government, the Community Man- S. 1895. An act to temporarily extend the the Senate by Ms. Evans one of his sec- programs under the Small Business Act and retaries. agement Account, and the Central Intel- ligence Agency Retirement and Disability the Small Business Investment Act of 1958 f System, and for other purposes. through March 15, 2004, and for other pur- poses. EXECUTIVE MESSAGES REFERRED H.R. 3038. An act to make certain technical and conforming amendments to correct the As in executive session the Presiding Health Care Safety Net Amendments of 2002. f Officer laid before the Senate messages H.R. 3140. An act to provide for availability from the President of the United of contact lens prescriptions to patients, and REPORTS OF COMMITTEES States submitting sundry nominations for other purposes. The following reports of committees which were referred to the appropriate H.R. 3166. An act to designate the facility were submitted: committees. of the United States Postal Service located at 57 Old Tappan Road in Tappan, New York, By Ms. COLLINS, from the Committee on (The nominations received today are as the ‘‘John G. Dow Post Office building’’. Governmental Affairs: printed at the end of the Senate pro- H.R. 3185. An act to designate the facility Report to accompany S. 1567, a bill to ceedings.) of the United States Postal Service located amend title 31, United States Code, to im- f at 38 Spring Street in Nashua, New Hamp- prove the financial accountability require- shire, as the ‘‘Hugh Gregg Post Office Build- ments applicable to the Department of MESSAGES FROM THE HOUSE ing’’. Homeland Security, and for other purposes At 12:35 p.m., a message from the H.R. 3349. An act to authorize salary ad- (Rept. No. 108-211). House of Representatives, delivered by justments for Justices and judges of the By Ms. COLLINS, from the Committee on Governmental Affairs, with an amendment: Mr. Hays, one of its reading clerks, an- United States for fiscal year 2004. H.R. 3491. An act to establish within the S. 1267. A bill to amend the District of Co- nounced that the Speaker has signed Smithsonian Institution the National Mu- lumbia Home Rule Act to provide the Dis- the following enrolled bills: seum of African American History and Cul- trict of Columbia with autonomy over its S. 189. An act to authorize appropriations ture, and for other purposes. budgets, and for other purposes (Rept. No. for nanoscience, nanoengineering, and nano- The enrolled bills were signed subse- 108-212). technology research, and for other purposes. By Mr. CAMPBELL, from the Committee S. 579. An act to reauthorize the National quently by the President pro tempore on Indian Affairs, with an amendment in the Transportation Safety Board, and for other (Mr. STEVENS). nature of a substitute: purposes. S. 420. A bill to provide for the acknowl- S. 1152. An act to reauthorize the United At 1:32 p.m., a message from the edgement of the Lumbee Tribe of North States Fire Administration, and for other House of Representatives, delivered by Carolina, and for other purposes (Rept. No. purposes. Mr. Hays, one of its reading clerks, an- 108-213).

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00094 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15975 By Ms. COLLINS, from the Committee on the border with Mexico and other appro- nance and economics, and for other purposes; Governmental Affairs, with amendments: priate entities in conducting a hydrogeologic to the Committee on Health, Education, H.R. 1416. A bill to make technical correc- characterization, mapping, and modeling Labor, and Pensions. tions to the Homeland Security Act of 2002 program for priority transboundary aquifers, By Mrs. MURRAY (for herself, Ms. (Rept. No. 108-214). and for other purposes; to the Committee on CANTWELL, and Mr. SMITH): By Mr. MCCAIN, from the Committee on Energy and Natural Resources. S. 1969. A bill to amend the Agricultural Commerce, Science, and Transportation, By Mr. DASCHLE (for Mr. KERRY (for Adjustment Act to add pears and cherries to without amendment: himself and Mr. KENNEDY)): the list of fruits and vegetables subject to S. 1978. An original bill to authorize funds S. 1958. A bill to prevent the practice of regulation in a marketing order by grade, for highway safety programs, motor carrier late trading by mutual funds, and for other size, quality, or maturity, and for other pur- safety programs, hazardous materials trans- purposes; to the Committee on Banking, poses; to the Committee on Agriculture, Nu- portation safety programs, boating safety Housing, and Urban Affairs. trition, and Forestry. programs, and for other purposes (Rept. No. By Mr. SARBANES (for himself, Ms. By Mr. ROCKEFELLER: 108-215). LANDRIEU, Ms. MIKULSKI, and Mr. S. 1970. A bill to amend title 11, United By Mr. GREGG, from the Committee on ALLEN): States Code, to increase the amount of unse- Health, Education, Labor, and Pensions, S. 1959. A bill to amend the Federal Water cured claims for salaries and wages given with an amendment in the nature of a sub- Pollution Control Act and the Water Re- priority in bankruptcy, to provide for cash stitute: sources Development Act if 1992 to provide payments to retirees to compensate for lost S. 1172. A bill to establish grants to provide for the restoration, protection, and enhance- health insurance benefits resulting from the health services for improved nutrition, in- ment of the environmental integrity and so- bankruptcy of their former employer, and for creased physical activity, obesity preven- cial and economic benefits of the Anacostia other purposes; to the Committee on the Ju- tion, and for other purposes. Watershed in the State of Maryland and the diciary. By Mr. HATCH, from the Committee on District of Columbia; to the Committee on By Mr. CORZINE (for himself, Mr. the Judiciary, with an amendment in the na- Environment and Public Works. DODD, and Mr. LIEBERMAN): ture of a substitute: By Mrs. BOXER: S. 1971. A bill to improve transparency re- S. 1960. A bill to exempt airports in eco- S. 1545. A bill to amend the Illegal Immi- lating to the fees and costs that mutual fund nomically depressed communities from gration Reform and Immigrant Responsi- investors incur and to improve corporate matching grant obligations under the Air- bility Act of 1996 to permit States to deter- governance of mutual funds; to the Com- port Improvement Program; to the Com- mine State residency for higher education mittee on Banking, Housing, and Urban Af- mittee on Commerce, Science, and Transpor- purposes and to authorize the cancellation of fairs. tation. By Mrs. BOXER: removal and adjustment of status of certain By Mr. HOLLINGS (for himself, Ms. alien students who are long-term United S. 1972. A bill to amend the Internal Rev- COLLINS, Mr. CARPER, Mr. SPECTER, States residents. enue Code of 1986 to provide for a tax credit Mr. JEFFORDS, Mr. LAUTENBERG, and By Ms. COLLINS, from the Committee on for small employer-based health insurance Mr. BIDEN): coverage in States in which such coverage is Governmental Affairs, with an amendment S. 1961. A bill to provide for the revitaliza- in the nature of a substitute: mandated, and for other purposes; to the tion and enhancement of the American pas- Committee on Finance. S. 1612. A bill to establish a technology, senger and freight rail transportation sys- By Mr. DEWINE: equipment, and information transfer within tem; to the Committee on Commerce, the Department of Homeland Security. S. 1973. A bill to amend the Communica- Science, and Transportation. tions Act of 1934 to protect the privacy f By Mr. GRASSLEY (for himself, Mr. rights of subscribers to wireless communica- BAUCUS, Mr. BUNNING, and Mr. INTRODUCTION OF BILLS AND tions services; to the Committee on Com- BREAUX): merce, Science, and Transportation. JOINT RESOLUTIONS S. 1962. A bill to amend the Internal Rev- By Mr. DASCHLE: The following bills and joint resolu- enue Code of 1986 to provide for excise tax re- S. 1974. A bill to make improvements to form and simplification, and for other pur- tions were introduced, read the first the Medicare Prescriptions Drug, Improve- poses; to the Committee on Finance. ment, and Modernization Act of 2003; to the and second times by unanimous con- By Mr. SPECTER (for himself and Mrs. sent, and referred as indicated: Committee on Finance. BOXER): By Mr. DODD (for himself and Mr. S. 1963. A bill to amend the Communica- By Mr. DASCHLE (for himself and Mr. MCCAIN): JOHNSON): tions Act of 1934 to protect the privacy right S. 1975. A bill to amend the Internal Rev- of subscribers to wireless communication S. 1951. A bill to promote rural safety and enue Code of 1986 to deny a deduction for se- services; to the Committee on Commerce, improve rural law enforcement; to the Com- curities-related fines, penalties, and other Science, and Transportation. mittee on Finance. amounts, and to provide that revenues re- By Ms. STABENOW (for herself and By Mr. GRASSLEY: sulting from such denial be transferred to S. 1952. A bill to direct the United States Mr. GRAHAM of South Carolina): S. 1964. A bill to amend the Internal Rev- Fair Funds for the relief of victims; to the Trade Representative to enforce United Committee on Finance. States rights, under certain trade agree- enue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI By Mr. BINGAMAN (for himself, Mr. ments with respect to Mexico, pursuant to DOMENICI, Mrs. MURRAY, Mr. JEF- title III of the Trade Act of 1974; to the Com- benefit in a manner that preserves jobs and production activities in the United States, FORDS, Ms. CANTWELL, Mr. AKAKA, mittee on Finance. Mr. REED, Mr. CHAFEE, and Mr. By Mr. LAUTENBERG: and for other purposes; to the Committee on Finance. INOUYE): S. 1953. A bill to protect deep sea corals S. 1976. A bill to amend title XXI of the So- and sponges, and for other purposes; to the By Mr. BAYH: S. 1965. A bill to provide for the creation of cial Security Act to permit qualifying States Committee on Commerce, Science, and private-sector-led Community Workforce to use a portion of their allotments under Transportation. Partnerships, and for other purposes; to the the State children’s health insurance pro- By Mr. CRAPO: Committee on Health, Education, Labor, and gram for any fiscal year for certain medical S. 1954. A bill to amend the Violence Pensions. expenditures, and for other purposes; to the Against Women Act of 2000 by expanding the By Mr. BINGAMAN: Committee on Finance. legal assistance for victims of violence grant S. 1966. A bill to require a report on the de- By Ms. SNOWE (for herself and Mr. program to include legal assistance for vic- tainees held at Guantanamo Bay, Cuba; to VOINOVICH): tims of dating violence; to the Committee on the Committee on Armed Services. S. 1977. A bill to promote the manufac- the Judiciary. By Mr. HAGEL (for himself and Ms. turing industry in the United States by es- By Mr. CAMPBELL: SNOWE): tablishing an Assistant Secretary for Manu- S. 1955. A bill to make technical correc- S. 1967. A bill to allow all businesses to facturing within the Department of Com- tions to laws relating to Native Americans, make up to 24 transfers each month from in- merce, an Interagency Manufacturing Task and for other purposes; to the Committee on terest-bearing transaction accounts to other Force, and a Small Business Manufacturing Indian Affairs. transaction accounts, to require the pay- Task Force, and for other purposes; to the By Mrs. BOXER: ment of interest on reserves held for deposi- Committee on Small Business and Entrepre- S. 1956. A bill to provide assistance to tory institutions at Federal reserve banks, neurship. States and nongovernmental entities to ini- to repeal the prohibition of interest on busi- By Mr. MCCAIN: tiate public awareness and outreach cam- ness accounts, and for other purposes; to the S. 1978. An original bill to authorize funds paigns to reduce teenage pregnancies; to the Committee on Banking, Housing, and Urban for highway safety programs, motor carrier Committee on Health, Education, Labor, and Affairs. safety programs, hazardous materials trans- Pensions. By Mr. ENZI (for himself, Mr. AKAKA, portation safety program, boating safety By Mr. BINGAMAN: Mr. CORZINE, and Mr. SARBANES): programs, and for other purposes; from the S. 1957. A bill to authorize the Secretary of S. 1968. A bill to amend the Higher Edu- Committee on Commerce, Science, and the Interior to cooperate with the States on cation Act of 1965 to enhance literacy in fi- Transportation; placed on the calendar.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00095 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15976 CONGRESSIONAL RECORD — SENATE November 25, 2003 By Mr. GRASSLEY (for himself and sure that all American citizens harmed lina (Mrs. DOLE) and the Senator from Mr. BAUCUS): by terrorism overseas receive equal Nevada (Mr. ENSIGN) were added as co- S. 1979. A bill to amend the Internal Rev- treatment by the United States Gov- sponsors of S. 1645, a bill to provide for enue Code of 1986 to prevent the fraudulent ernment regardless of the terrorists’ the adjustment of status of certain for- avoidance of fuel taxes; to the Committee on Finance. country of origin or residence, and to eign agricultural workers, to amend By Mr. ALLARD (for himself, Mr. ensure that all terrorists involved in the Immigration and Nationality Act BROWNBACK, Mr. SESSIONS, Mr. BUN- such attacks are pursued, prosecuted, to reform the H–2A worker program NING, and Mr. INHOFE): and punished with equal vigor, regard- under that Act, to provide a stable, S.J. Res. 26. A joint resolution proposing less of the terrorists’ country of origin legal agricultural workforce, to extend an amendment to the Constitution of the or residence. basic legal protections and better United States relating to marriage; to the S. 736 working conditions to more workers, Committee on the Judiciary. At the request of Mrs. DOLE, her and for other purposes. f name was added as a cosponsor of S. S. 1709 SUBMISSION OF CONCURRENT AND 736, a bill to amend the Animal Welfare At the request of Mr. CRAIG, the SENATE RESOLUTIONS Act to strengthen enforcement of pro- name of the Senator from Nevada (Mr. The following concurrent resolutions visions relating to animal fighting, and REID) was added as a cosponsor of S. and Senate resolutions were read, and for other purposes. 1709, a bill to amend the USA PA- referred (or acted upon), as indicated: S. 972 TRIOT ACT to place reasonable limita- At the request of Mr. COLEMAN, the By Mr. NICKLES (for himself, Mr. tions on the use of surveillance and the BROWNBACK, Mr. SESSIONS, Mr. BUN- name of the Senator from California issuance of search warrants, and for NING, Mr. CORNYN, Mr. SANTORUM, (Mrs. BOXER) was added as a cosponsor other purposes. and Mr. ALLARD): of S. 972, a bill to clarify the authority S. 1833 S. Res. 275. A resolution to affirm the De- of States to establish conditions for in- At the request of Mr. DASCHLE, the fense of Marriage Act; to the Committee on surers to conduct the business of insur- name of the Senator from Michigan the Judiciary. ance within a State based on the provi- (Ms. STABENOW) was added as a cospon- By Mrs. FEINSTEIN (for herself, Mr. sion of information regarding Holo- sor of S. 1833, a bill to improve the CHAFEE, Mr. NELSON of Florida, Mr. caust era insurance policies of the in- LEAHY, and Mr. LAUTENBERG): health of minority individuals. S. Res. 276. A resolution expressing the surer, to establish a Federal cause of S. 1834 action for claims for payment of such sense of the Senate regarding fighting terror At the request of Ms. STABENOW, the and embracing efforts to achieve Israeli-Pal- insurance policies, and for other pur- name of the Senator from Massachu- estinian peace; to the Committee on Foreign poses. setts (Mr. KERRY) was added as a co- Relations. S. 1109 By Mr. FRIST (for himself, Mr. GRASS- sponsor of S. 1834, a bill to waive time At the request of Mr. TALENT, the limitations in order to allow the Medal LEY, Mr. HATCH, Mr. BREAUX, Mr. name of the Senator from North Caro- BAUCUS, and Mr. NICKLES): of Honor to be awarded to Gary Lee S. Res. 277. A resolution tendering the sin- lina (Mrs. DOLE) was added as a cospon- McKiddy, of Miamisburg, Ohio, for acts cere thanks of the Senate to the staffs of the sor of S. 1109, a bill to provide of valor while a helicopter crew chief Offices of the Legislative Counsel of the Sen- $50,000,000,000 in new transportation in- and door gunner with the 1st Cavalry ate and the House of Representatives for frastructure funding through Federal Division during the Vietnam War. their dedication and service to the legisla- bonding to empower States and local S. 1840 tive process; considered and agreed to. governments to complete significant By Mr. BINGAMAN: infrastructure projects across all At the request of Mr. CONRAD, the S. Res. 278. A resolution expressing the modes of transportation, including name of the Senator from Nebraska sense of the Senate regarding the anthrax (Mr. HAGEL) was added as a cosponsor and smallpox vaccines; to the Committee on roads, rail, transit, aviation, and water, and for other purposes. of S. 1840, a bill to amend the Food Se- Armed Services. curity Act of 1985 to encourage owners S. 1353 By Ms. LANDRIEU (for herself and Mr. and operations of privately-held farm BURNS): At the request of Mr. BROWNBACK, the and ranch land to voluntarily make S. Con. Res. 86. A concurrent resolution name of the Senator from New Jersey their land available for access by the congratulating the people and Government (Mr. CORZINE) was added as a cosponsor public under programs administered by of the Republic of Kazakhstan on the twelfth of S. 1353, a bill to establish new spe- anniversary of the independence of States. cial immigrant categories. Kazakhstan and praising the longstanding S. 1853 and growing friendship between the United S. 1380 At the request of Mr. KENNEDY, the States and Kazakhstan; to the Committee on At the request of Mr. SMITH, the name of the Senator from Minnesota Foreign Relations. names of the Senator from Montana (Mr. DAYTON) was added as a cosponsor (Mr. BAUCUS) and the Senator from f of S. 1853, a bill to provide extended un- New Mexico (Mr. DOMENICI) were added ADDITIONAL COSPONSORS as cosponsors of S. 1380, a bill to dis- employment benefits to displaced workers. S. 557 tribute universal service support equi- At the request of Ms. COLLINS, the tably throughout rural America, and S. 1890 names of the Senator from Arkansas for other purposes. At the request of Mr. ENZI, the name (Mrs. LINCOLN) and the Senator from S. 1595 of the Senator from Idaho (Mr. CRAPO) Vermont (Mr. JEFFORDS) were added as At the request of Mr. KERRY, the was added as a cosponsor of S. 1890, a cosponsors of S. 557, a bill to amend the name of the Senator from South Da- bill to require the mandatory expens- Internal Revenue Code of 1986 to ex- kota (Mr. DASCHLE) was added as a co- ing of stock options granted to execu- clude from gross income amounts re- sponsor of S. 1595, a bill to amend the tive officers, and for other purposes. ceived on account of claims based on Internal Revenue Code of 1986 to allow S. 1896 certain unlawful discrimination and to small business employers a credit At the request of Mr. BAUCUS, the allow income averaging for backpay against income tax with respect to em- name of the Senator from New Mexico and frontpay awards received on ac- ployees who participate in the military (Mr. BINGAMAN) was added as a cospon- count of such claims, and for other pur- reserve components and are called to sor of S. 1896, a bill to provide exten- poses. active duty and with respect to re- sions for certain expiring provisions of S. 684 placement employees and to allow a the Internal Revenue Code of 1986, and At the request of Mr. SMITH, the comparable credit for activated mili- for other purposes. name of the Senator from Louisiana tary reservists who are self-employed S. 1920 (Ms. LANDRIEU) was added as a cospon- individuals, and for other purposes. At the request of Mr. LEAHY, the sor of S. 684, a bill to create an office S. 1645 name of the Senator from Wisconsin within the Department of Justice to At the request of Mr. CRAIG, the (Mr. FEINGOLD) was added as a cospon- undertake certain specific steps to en- names of the Senator from North Caro- sor of S. 1920, a bill to extend for 6

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00096 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15977 months the period for which chapter 12 the Senator from Illinois (Mr. FITZ- since 1997, Mexico has engaged in a of title 11 of the United States Code is GERALD), the Senator from Illinois (Mr. concerted effort to restrict U.S. im- reenacted. DURBIN), the Senator from California ports of this product. Throughout this S. 1926 (Mrs. FEINSTEIN), the Senator from time, Mexico has consistently violated At the request of Ms. STABENOW, the Massachusetts (Mr. KERRY) and the its NAFTA and WTO commitments. names of the Senator from California Senator from New Jersey (Mr. LAUTEN- Let me give you a short history of (Mrs. BOXER), the Senator from South BERG) were added as cosponsors of S. Mexico’s unjustified actions. In Feb- Carolina (Mr. HOLLINGS) and the Sen- Con. Res. 82, a concurrent resolution ruary 1997, Mexico initiated an anti- ator from New Jersey (Mr. LAUTEN- recognizing the importance of Ralph dumping investigation of U.S. high BERG) were added as cosponsors of S. Bunche as one of the great leaders of fructose corn syrup, followed by the 1926, a bill to amend title XVIII of the the United States, the first African- imposition of an antidumping order the Social Security Act to restore the American Nobel Peace Prize winner, an following year. The United States chal- medicare program and for other pur- accomplished scholar, a distinguished lenged Mexico’s antidumping order poses. diplomat, and a tireless campaigner of under the NAFTA. On two different oc- casions, NAFTA panels determined S. 1937 civil rights for people throughout the world. that Mexico’s actions violated its At the request of Mr. BAUCUS, the NAFTA obligations. names of the Senator from New Mexico S. RES. 202 At the request of Mr. CAMPBELL, the The United States also challenged (Mr. BINGAMAN), the Senator from Con- Mexico’s antidumping order at the necticut (Mr. LIEBERMAN), the Senator name of the Senator from Louisiana (Ms. LANDRIEU) was added as a cospon- Wortd Trade Organization. On two sep- from Vermont (Mr. JEFFORDS) and the arate occasions, the Dispute Settle- Senator from Iowa (Mr. HARKIN) were sor of S. Res. 202, a resolution express- ing the sense of the Senate regarding ment Body of the WTO held that Mexi- added as cosponsors of S. 1937, a bill to co’s actions violated its international amend the Internal Revenue Code of the genocidal Ukraine Famine of 1932- 33. trade commitments. 1986 to curtail the use of tax shelters, But Mexico continued to ignore its and for other purposes. S. RES. 273 NAFTA and WTO obligations. In fact, S. 1945 At the request of Mr. LAUTENBERG, Mexico went one step further and in ef- At the request of Mr. MCCAIN, the his name was added as a cosponsor of fect threw gasoline onto the fire. On name of the Senator from Florida (Mr. S. Res. 273, a resolution condemning January 1, 2002, in a transparent at- GRAHAM) was added as a cosponsor of S. the terrorist attacks in Istanbul, Tur- tempt to evade the NAFTA and WTO 1945, a bill to amend the Public Health key, on November 15 and 20, 2003, ex- determinations against it, Mexico im- Service Act and the Employee Retire- pressing condolences to the families of posed a 20 percent tax on soft drinks ment Income Security Act of 1974 to the individuals murdered in the at- containing high fructose corn syrup. protect consumers in managed care tacks, expressing sympathies to the in- The intent and effect of this tax was to plans and other health coverage. dividuals injured in the attacks, and continue Mexico’s antidumping order expressing solidarity with the Republic S. 1946 on U.S. produced high fructose corn of Turkey and the United Kingdom in At the request of Mr. CORZINE, the syrup by other means. name of the Senator from Illinois (Mr. the fight against terrorism. In April 2002, with its tax now in DURBIN) was added as a cosponsor of S. f place, and in a continuous event with the imposition of this tax, Mexico lift- 1946, a bill to establish an independent STATEMENTS ON INTRODUCED ed its antidumping order on high fruc- national commission to examine and BILLS AND JOINT RESOLUTIONS evaluate the collection, analysis, re- tose corn syrup. These actions enabled porting, use, and dissemination of in- By Mr. GRASSLEY: Mexico to make the disingenuous telligence related to Iraq and Oper- S. 1952. A bill to direct the United claim that it had come into compliance ation Iraqi Freedom. States Trade Representative to enforce with the findings adopted by the Special Agent rights, under certain S. 1950 NAFTA and the WTO regarding its trade agreements with respect to Mex- antidumping order. At the request of Mr. DURBIN, the ico, pursuant to title III of the Trade names of the Senator from Michigan The effects of the import restrictions Act of 1974; to the Committee on Fi- of Mexico’s antidumping order con- (Mr. LEVIN) and the Senator from Min- nance. tinue, with even more egregious re- nesota (Mr. DAYTON) were added as co- Mr. GRASSLEY. Mr. President, I rise sponsors of S. 1950, a bill to amend title sults. Because of Mexico’s tax, U.S. ex- today to introduce the Mexican Agri- XVIII of the Social Security Act to de- ports of high fructose corn syrup to cultural Trade Compliance Act. This liver a meaningful benefit and lower Mexico are now at almost zero levels. bill directs the U.S. Trade Representa- This is an extraordinary situation. prescription drug prices under the tive to retaliate against Mexico over Mexico lost under the NAFTA, and it medicare program. that country’s de facto prohibition on lost at the WTO commitments, Mexico S.J. RES. 19 the importation of U.S.-produced high responded by imposing a de facto ban At the request of Mr. SPECTER, the fructose corn syrup. on imports of U.S. high fructose corn name of the Senator from New York I introduce this bill reluctantly. For syrup. Mexico is not only violating its (Mr. SCHUMER) was added as a cospon- months I have made it clear, through international trade commitments, but sor of S.J. Res. 19, a joint resolution letters, floor statements, a hearing, also causing significant harm for recognizing Commodore John Barry as and a trade roundtable, that if the Iowa’s corn farmers. Iowa’s producers the first flag officer of the United Mexican Congress did not lift its illegal of high fructose corn syrup are suf- States Navy. 20 percent tax on soft drinks con- fering as well. I know of no other U.S. S. CON. RES. 82 taining high fructose corn syrup, I agricultural product that has been shut At the request of Mr. BIDEN, the would be forced to consider introducing out of its largest export market for so names of the Senator from Washington retaliatory legislation, such as this long. (Ms. CANTWELL), the Senator from ‘‘tequila tariff’’ which also covers other The United States has worked dili- Maryland (Mr. SARBANES), the Senator agricultural products. gently, and patiently with Mexico on from Mississippi (Mr. LOTT), the Sen- We’re at the end of our legislative this issue. U.S. Trade Representative ator from New Mexico (Mr. BINGAMAN), session and there has been no action by Robert Zoellick and Ambassador Allen the Senator from Connecticut (Mr. LIE- the Mexican Congress. So, I’m faced Johnson, our Chief Agricultural Nego- BERMAN), the Senator from West Vir- with no alternative but to introduce tiator, have put in countless hours try- ginia (Mr. ROCKEFELLER), the Senator this bill. ing to convince Mexico to come into from Nebraska (Mr. HAGEL), the Sen- Let me explain how we got to where compliance with its trade obligations ator from Wisconsin (Mr. FEINGOLD), we are today. Mexico was formerly the regarding high fructose corn syrup. But the Senator from Indiana (Mr. BAYH), largest export market for U.S.-pro- still, the tax remains in place. My col- the Senator from Indiana (Mr. LUGAR), duced high fructose corn syrup. But leagues on both sides of the aisle, and

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00097 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15978 CONGRESSIONAL RECORD — SENATE November 25, 2003 in both the Senate and the House, have Mexican products upon which retalia- I hope they repeal their illegal tax to repeatedly contacted Mexican officials tory duties will be imposed. The prod- demonstrate their commitment to liv- reminding them of Mexico’s trade com- ucts on this list will consist first and ing up to the letter and spirit of Mexi- mitments with regard to this issue. foremost of Mexican agricultural prod- co’s promises under NAFTA and the But still, the tax remains in place. ucts that are prospering on account of WTO. I hope they repeal their illegal I too have worked hard, since the be- their access to the U.S. market. These tax to improve relations between the ginning, to try to convince Mexico to Mexican products will likely include United States and Mexico and to bring lift its de facto ban on the sale of U.S.- bottled tequila, tomatoes, bell peppers, the benefits of free trade to consumers produced high fructose corn syrup. As I avocados, limes, asparagus, mangos, and producers in both countries. And, have mentioned, I’ve written letters to papayas, watermelons, honey, pecans, Mr. President, I hope they repeal their Mexican officials, delivered floor and shrimp and prawns. The total illegal tax so the Mexican Agricultural speeches, conducted a Finance Com- amount of duties imposed on these Trade Compliance act is no longer mittee hearing, and held an agricul- Mexican products will equal the lost needed. But, if that’s what it takes, tural roundtable, all in an effort to sales being experienced by U.S. pro- then that’s what we should do. convince Mexico to lift its de facto ban ducers of high fructose corn syrup on on imports of U.S. high fructose corn account of Mexico’s de facto ban of this By Mr. CAMPBELL: syrup. During a hearing of the Finance product, an amount which—according S. 1955. A bill to make technical cor- Committee on September 23, I stated to U.S. industry—could be as high as rections to laws relating to Native $465 million annually. clearly that if the Mexican tax on soft Americans, and for other purposes; to Let me conclude by stating that I drinks containing high fructose corn the Committee on Indian Affairs. syrup was not lifted—and soon—I know that some in Mexico are working constructively to try to resolve this Mr. CAMPBELL. Mr. President, would be forced to consider introducing today I am introducing the Native retaliatory legislation. But still, the issue. Earlier this month President Fox of Mexico sent to the Mexican Congress American Technical Corrections Act of tax remains in place. 2004 to provide amendments to certain So now, at the end of our legislative a formal request to repeal the tax on high fructose corn syrup. I hope that Federal statutes affecting Indian tribes session, I see no alternative but to in- his request becomes law. I appreciated and Indian people. troduce the Mexican Agricultural the offer of Mexico’s Secretary of Agri- Though a modest bill, when it is en- Trade Compliance Act. culture, Javier Usabiaga, to speak with acted it will provide real relief to the The Mexican Agricultural Trade me regarding the tax, and I regret that affected tribes that seek Congress’ help Compliance Act establishes that the our schedules have not permitted us to in removing the many obstacles that Government of Mexico has engaged in a meet personally. I also note that U.S. block the paths to greater levels of ad- pattern of activity that has continu- and Mexican private sector representa- vancement. ously denied the rights of U.S. export- tives have been negotiating over access ers of high fructose corn syrup under I ask unanimous consent that the for U.S. high fructose corn syrup to the text of the legislation be printed in the existing trade agreements. Further, Mexican market. the denial of these rights is unjustifi- RECORD. Regardless of these efforts, Mexico’s There being no objection, the bill was able and burdens or restricts U.S. com- de facto ban on imports of U.S. high merce. Therefore, Mexico’s actions ordered to be printed in the RECORD, as fructose corn syrup remains in place. follows: meet the statutory criteria under sec- Meanwhile, Iowa’s corn growers and tion 301 of the Trade Act of 1974 for re- Iowa’s high fructose corn syrup pro- S. 1955 taliatory action. ducers continue to suffer on account of Be it enacted by the Senate and House of Rep- The Mexican Agricultural Trade Mexico’s NAFTA and WTO illegal ac- resentatives of the United States of America in Compliance Act requires the U.S. tions. Again, I strongly hope that Congress assembled, Trade Representative to retaliate, pur- Mexican legislators will remove Mexi- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. suant to section 301, against imports co’s tax on soft drinks containing high (a) SHORT TITLE.—This Act may be cited as from Mexico within 60 days of enact- fructose corn syrup prior to the return the ‘‘Native American Technical Corrections ment of the Act. However, the U.S. of the U.S. Senate next January. But if Act of 2004’’. Trade Representative shall not take this tax is not repealed by January, I (b) TABLE OF CONTENTS.—The table of con- such action if he certifies, within 30 have every intention of working to ad- tents of this Act is as follows: days after enactment of the Act, that vance this legislation through the Sen- Sec. 1. Short title; table of contents. Mexico has eliminated its tax on soft ate. Sec. 2. Definition of Secretary. drinks containing high fructose corn I’m a strong believer in free trade. I TITLE I—TECHNICAL AMENDMENTS AND syrup and is according the U.S. high fought hard for passage of the NAFTA. OTHER PROVISIONS RELATING TO NA- fructose corn syrup industry the bene- I did so because I know free trade bene- TIVE AMERICANS fits of all applicable trade agreements. fits farmers in Iowa and other states. Sec. 101. National Fund for Excellence in I fully hope that prior to the return U.S. agriculture certainly benefits American Indian Education. of the U.S. Senate in January, the from the NAFTA, as does Mexican agri- Sec. 102. Indian Financing Act Amendment. Mexican Congress will act rationally culture. But Mexico has engaged in a Sec. 103. Exchanged Indian land. and bring Mexico into compliance with blatantly illegal act against U.S. agri- Sec. 104. Indian tribal justice technical and its international trade obligations re- culture for too long. Mexico’s action is legal assistance. garding high fructose corn syrup. If it having a particularly negative impact Sec. 105. Tribal justice systems. does not, I’ll work hard to advance the on my State of Iowa. If we are to main- Sec. 106. Authorization of 99-year leases for Mexican Agricultural Trade Compli- tain support for free trade in this coun- the Prairie Band of Pota- ance Act through the Senate. Given try, we must ensure that our trading watomi. the large number of unjustified bar- partners live up to their obligations. If Sec. 107. Navajo healthcare contracting. riers imposed by Mexico over the past they do not, we must take action. I Sec. 108. Crow Tribal Trust Fund. months against imports of U.S. agri- hope the introduction of this bill sends Sec. 109. Fallon Paiute-Shoshone Tribe Set- cultural products, Mexico has not been a strong message to my Mexican coun- tlement Fund. earning goodwill with Members of the terparts that we are ready and willing Sec. 110. ANCSA amendment. Senate. I expect that my legislation to stand up for U.S. agriculture. I sin- TITLE II—COWLITZ INDIAN TRIBE DIS- will receive broad support. cerely hope that they will do the right TRIBUTION OF JUDGMENT FUNDS ACT I also intend to work with the U.S. thing and repeal their illegal tax on Sec. 201. Cowlitz Indian Tribe Distribution Trade Representative to designate high fructose corn syrup. of Judgment Funds Act.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00098 Fmt 0624 Sfmt 0655 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15979 Sec. 202. Definitions. the land shall be deemed for all purposes to may accrue on that portion may also be ex- Sec. 203. Judgment distribution plan. have been acquired in trust as of the date of pended or obligated only for the following Sec. 204. Distribution and use of funds. the taking. purposes:’’; and TITLE III—ASSINIBOINE AND SIOUX SEC. 104. INDIAN TRIBAL JUSTICE TECHNICAL (B) by striking paragraphs (2) through (4) TRIBES OF THE FORT PECK RESERVA- AND LEGAL ASSISTANCE. and inserting the following: TION. Sections 106 and 201(d) of the Indian Tribal ‘‘(2) No monies from the Fund other than Sec. 301. Short title. Justice Technical and Legal Assistance Act the amounts authorized in subsection (C)(1) Sec. 302. Findings and purpose. (25 U.S.C. 3666, 3681(d)) are amended by strik- may be expended or obligated for any pur- Sec. 303. Definitions. ing ‘‘for fiscal years 2000 through 2004’’ and pose. Sec. 304. Distribution of judgment funds. inserting ‘‘for fiscal years 2004 through 2010’’. ‘‘(3) Notwithstanding any conflicting pro- Sec. 305. Applicable law. SEC. 105. TRIBAL JUSTICE SYSTEMS. vision in the original Fund plan, during fis- TITLE IV—UTU UTU GWAITU PAIUTE Subsections (a), (b), (c), and (d) of section cal year 2004 and each subsequent fiscal year, INDIAN LAND TRANSFER 201 of the Indian Tribal Justice Act (25 not more than 20 percent of the Annual 6 per- Sec. 401. Transfer. U.S.C. 3621) are amended by striking ‘‘2007’’ cent Amount for the fiscal year (referred to SEC. 2. DEFINITION OF SECRETARY. and inserting ‘‘2010’’. in this title as the ‘Annual 1.2 percent In this Act, the term ‘‘Secretary’’ means SEC. 106. AUTHORIZATION OF 99-YEAR LEASES Amount’) may be expended or obligated the Secretary of the Interior. FOR THE PRAIRIE BAND OF POTA- under subsection (c)(1)(C) for per capita dis- WATOMI. tributions to tribal members, provided that TITLE I—TECHNICAL AMENDMENTS AND (a) IN GENERAL.—Subsection (a) of the first during each Fund fiscal year subsequent to OTHER PROVISIONS RELATING TO NA- section of the Act of August 9, 1955 (25 U.S.C. fiscal year 2004, any unexpended and unobli- TIVE AMERICANS 415(a)) is amended in the second sentence— gated portion of the Annual 1.2 percent SEC. 101. NATIONAL FUND FOR EXCELLENCE IN (1) by inserting ‘‘the reservation of the Amount from any of the 3 immediately pre- AMERICAN INDIAN EDUCATION. Prairie Band Potawatomi Nation Reserva- ceding Fund fiscal years subsequent to fiscal Title V of the Indian Self-Determination tion,’’ after ‘‘Spanish Grant’),’’; and year 2003, not including any income that and Education Assistance Act (25 U.S.C. (2) by inserting ‘‘lands held in trust for the may accrue on that portion, may also be ex- 458bbb) is amended— Prairie Band Potawatomi Nation,’’ before pended or obligated for such per capita pay- (1) by striking the title heading and insert- ‘‘lands held in trust for the Cherokee Nation ments.’’; and ing the following: of Oklahoma’’. (2) in subsection (D), by adding at the end ‘‘TITLE V—NATIONAL FUND FOR EXCEL- (b) EFFECTIVE DATE.—The amendments the following: ‘‘Notwithstanding any con- LENCE IN AMERICAN INDIAN EDU- made by subsection (a) apply to any lease en- flicting provision in the original Fund plan, CATION’’; tered into or renewed on or after the date of the Fallon Business Council, in consultation (2) in section 501 (25 U.S.C. 458bbb)— enactment of this Act. with the Secretary, shall promptly amend (A) by striking the section heading and in- SEC. 107. NAVAJO HEALTHCARE CONTRACTING. the original plan for purposes of conforming serting the following: Congress authorizes the Navajo Area Office the plan to this title and making nonsub- ‘‘SEC. 501. NATIONAL FUND FOR EXCELLENCE IN of the Indian Health Service to reprogram stantive updates, improvements, or correc- AMERICAN INDIAN EDUCATION.’’; contract healthcare service dollars for the tions to the original plan.’’. and Navajo Health Foundation/Sage Memorial SEC. 110. ANCSA AMENDMENT. (B) in subsection (a), by striking ‘‘the Hospital 638 contract. All land and interests in land in the State American Indian Education Foundation’’ and SEC. 108. CROW TRIBAL TRUST FUND. of Alaska conveyed by the Federal Govern- inserting ‘‘a foundation to be known as the Section 6(d) of the Crow Boundary Settle- ment under the Alaska Native Claims Settle- ‘National Fund for Excellence in American ment Act of 1994 (25 U.S.C. 1776d(d)), is ment Act (43 U.S.C. 1601 et seq.) to a Native Indian Education’ ’’; and amended— Corporation and reconveyed by that Native (3) in section 503(2) (25 U.S.C. 458bbb–2(2)), (1) in the subsection heading, by inserting Corporation, or a successor in interest, in ex- by striking ‘‘Foundation’’ the second place it ‘‘AND CAPITAL GAINS’’ after ‘‘INTEREST’’; change for any other land or interest in land appears and inserting ‘‘National Fund for (2) in paragraph (1), by striking ‘‘Only’’ and in the State of Alaska and located within the Excellence in American Indian Education’’. inserting ‘‘Except as provided in paragraph same region (as defined in section 9(a) of the SEC. 102. INDIAN FINANCING ACT AMENDMENT. (4), only’’; and Alaska Native Claims Settlement Act (43 (a) LOAN GUARANTIES AND INSURANCE.—Sec- (3) by adding at the end the following: U.S.C. 1608(a)), to a Native Corporation tion 201 of the Indian Financing Act of 1974 ‘‘(4) DISTRIBUTION OF CAPITAL GAINS.—Not- under an exchange or other conveyance, (25 U.S.C. 1481) is amended— withstanding subsection (f) or any other pro- shall be deemed, notwithstanding the con- (1) by striking ‘‘the Secretary is authorized vision of law, capital gains and any other veyance or exchange, to have been conveyed (a) to guarantee’’ and inserting ‘‘the Sec- noninterest income received on funds in the pursuant to that Act. Crow Tribal Trust Fund shall be available retary may— TITLE II—COWLITZ INDIAN TRIBE for distribution by the Secretary to the Crow ‘‘(1) guarantee’’; DISTRIBUTION OF JUDGMENT FUNDS ACT (2) by striking ‘‘members; and (b) in lieu of Tribe to the extent that the balance in the such guaranty, to insure’’ and inserting Crow Tribal Trust Fund (including capital SEC. 201. COWLITZ INDIAN TRIBE DISTRIBUTION ‘‘members; or gains) exceeds $85,000,000, for the same uses OF JUDGMENT FUNDS ACT. ‘‘(2) to insure’’; and subject to the same restrictions in para- This title shall be known as the ‘‘Cowlitz (3) by striking ‘‘SEC. 201. In order’’ and in- graphs (1) and (3) as are applicable to dis- Indian Tribe Distribution of Judgment serting the following: tributions of interest.’’. Funds Act’’. ‘‘SEC. 201. LOAN GUARANTIES AND INSURANCE. SEC. 109. FALLON PAIUTE-SHOSHONE TRIBE SET- SEC. 202. DEFINITIONS. ‘‘(a) IN GENERAL.—In order’’; and TLEMENT FUND. In this title: (4) by adding at the end the following: Section 102 of the Fallon Paiute Shoshone (1) CURRENT JUDGMENT FUND.—The term ‘‘(b) ELIGIBLE BORROWERS.—The Secretary Indian Tribes Water Rights Settlement Act ‘‘current judgment fund’’ means the funds may guarantee or insure loans under sub- of 1990 (104 Stat. 3289) is amended— awarded by the Indian Claims Commission section (a) to both for-profit and nonprofit (1) In subsection (C)— Docket No. 218 and all interest accrued on borrowers.’’. (A) in paragraph (1), by striking ‘‘The in- the funds as of the date of enactment of this (b) LOAN APPROVAL.—Section 204 of the In- come of the Fund may be obligated and ex- Act. dian Financing Act of 1974 (25 U.S.C. 1484) is pended only for the following purposes:’’ and (2) INITIAL INTEREST.—The term ‘‘initial in- amended by striking ‘‘SEC. 204.’’ and insert- inserting the following: ‘‘Notwithstanding terest’’ means the interest on the funds ing the following: any conflicting provision in the original awarded by the Indian Claims Commission ‘‘SEC. 204. LOAN APPROVAL.’’. Fund plan developed in consultation with Docket No. 218 during the time period from SEC. 103. EXCHANGED INDIAN LAND. the Secretary under subsection (f), during 1 year before the date of enactment of this Notwithstanding any other provision of fiscal year 2004 and each subsequent fiscal Act through the date of enactment of this law, if— year, 6 percent of the average quarterly mar- Act. (1) any portion of the Indian country (as ket value of the Fund during the imme- (3) PRINCIPAL.—The term ‘‘principal’’ defined in section 1151 of title 18, United diately preceding 3 fiscal years (referred to means the funds awarded by the Indian States Code) under the jurisdiction of an In- in this title as the ‘Annual 6 percent Claims Commission Docket No. 218 and all dian tribe was subject to a government tak- Amount’) may be expended or obligated only interest accrued on the funds as of 1 year be- ing for a project that received any funding for the purposes specified in subparagraphs fore the date of enactment of this Act. under Public Law 85–500; (a) through (f) of this section. In addition, (4) SECRETARY.—The term ‘‘Secretary’’ (2) the Indian tribe applies for land to be during each fiscal year subsequent to Fund means the Secretary of the Interior. taken into trust by the Federal Government; fiscal year 2004, any unexpended and unobli- (5) TRIBE.—The term ‘‘Tribe’’ means the and gated portion of the Annual 6 percent Cowlitzq Indian Tribe of Washington, to (3) the Secretary of the Interior accepts Amount from any of the 3 immediately pre- which the Secretary extended Federal rec- the land into trust on behalf of the Indian ceding Fund fiscal years subsequent to fiscal ognition on December 31, 2001, under part 83 tribe; year 2003, not including any income that of title 25, Code of Federal Regulations.

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(6) TRIBAL MEMBER.—The term ‘‘tribal (1) SETASIDE.—From the principal, the Sec- of this Act, interest earned on the amount member’’ means an individual who is an en- retary shall set aside 10 percent for an edu- set aside— rolled member of the Cowlitz Indian Tribe in cation, vocational, and cultural training pro- (A) shall be disbursed annually in a lump accordance with tribal enrollment proce- gram. sum to the Cowlitz Tribal Council; and dures and requirements. (2) DISTRIBUTION OF INTEREST.—Beginning (B) may be added to any existing tribal (7) TRIBAL ELDER.—The term ‘‘tribal elder’’ the second year after the date of enactment natural resource program to enhance the use means a tribal member who was 62 years of of this Act, interest earned on the amount and enjoyment by the Tribe of existing and age or older as of February 14, 2000. setaside— renewable natural resources on tribal land. SEC. 203. JUDGMENT DISTRIBUTION PLAN. (A) shall be distributed annually in a lump (3) AVAILABILITY OF INTEREST.—7.5 percent Notwithstanding the Indian Tribal Judg- sum to the Cowlitz Tribal Council; and of the initial interest shall be available upon ment Funds Use or Distribution Act (25 (B) shall be used to provide scholarships to the date of enactment of this Act to fund the U.S.C. 1401 et seq.), or any plan prepared or tribal members pursuing educational ad- program for the first year after the date of promulgated by the Secretary under that vancement, including cultural and voca- enactment of this Act. Act, the judgment funds awarded in Indian tional training. (h) CULTURAL RESOURCES.— Claims Commission Docket No. 218 and in- (3) AVAILABILITY OF INTEREST.—Of the ini- (1) SETASIDE.—From the principal, the Sec- terest accrued on those funds as of the date tial interest, 10 percent shall be available retary shall set aside 4 percent for cultural of enactment of this Act shall be distributed upon the date of enactment of this Act to resources. and used in accordance with this title. fund the program for the first year after the (2) DISTRIBUTION OF INTEREST.—Beginning SEC. 204. DISTRIBUTION AND USE OF FUNDS. date of enactment of this Act. the second year after the date of enactment (a) PRESERVATION OF PRINCIPAL AFTER EL- (e) HOUSING ASSISTANCE PROGRAM.— of this Act, interest earned on the amount DERLY ASSISTANCE AND TRIBAL ADMINISTRA- (1) SETASIDE.—From the principal, the Sec- set aside— TION PAYMENTS.— retary shall set aside 5 percent for a housing (A) shall be distributed annually in a lump (1) IN GENERAL.—Except as provided in sub- assistance program. sum to the Cowlitz Tribal Council; and section (b), the principal shall not be distrib- (2) DISTRIBUTION OF INTEREST.—Beginning (B) shall be used to— uted under this title. the second year after the date of enactment (i) maintain artifacts; (2) DISBURSEMENTS.—The Secretary shall— of this Act, interest earned on the amount (ii) collect documents; and (A) maintain undistributed current judg- set aside— (iii) archive and identify cultural sites of ment funds in an interest-bearing account in (A) shall be disbursed annually in a lump tribal significance. trust for the Tribe; and sum to the Cowlitz Tribal Council; and (3) AVAILABILITY OR INTEREST.—Of the ini- (B) disburse principal or interest in accord- (B) shall be— tial interest, 4 percent shall be available on ance with this title not later than 30 days (i) used as a supplement to any existing the date of enactment of this Act to fund the after receipt by the Northwest Regional Di- tribal housing improvements program; or program for the first year after the date of rector of the Bureau of Indian Affairs of a re- (ii) used in a separate housing assistance enactment of this Act. quest by the Cowlitz Tribal Council for a dis- Program established by the Cowlitz Tribal (i) HEALTH.— bursement of funds. Council. (1) SETASIDE.—From the principal, the Sec- (b) ELDERLY ASSISTANCE PROGRAM.— (3) AVAILABILITY OF INTEREST.—Of the ini- retary shall set aside 21 percent for health. (1) SETASIDE.—From the current judgment tial interest, 5 percent shall be available on (2) DISTRIBUTION OF INTEREST.—Beginning fund, the Secretary shall set aside 20 percent the date of enactment of this Act to fund the the second year after the date of enactment for an elderly assistance payment. program for the first year after the date of of this Act, interest earned on the amount (2) PAYMENTS.—The Secretary shall pro- enactment of this Act. set aside— vide 1 elderly assistance payment to each en- (f) ECONOMIC DEVELOPMENT, TRIBAL, AND (A) shall be disbursed annually in a lump rolled tribal elder not later than 30 days CULTURAL CENTERS.— sum to the Cowlitz Tribal Council; and after all of the following have occurred: (1) SETASIDE.—From the principal, the Sec- (B) shall be used for the health needs of the (A) LIST OF ENROLLED MEMBERS.—The Cow- retary shall set aside 21.5 percent— Tribe. litz Tribal Council has compiled and re- (A) for economic development; and (3) AVAILABILITY OF INTEREST.—21 percent viewed for accuracy a list of all enrolled (B) if other funding is not available or not of the initial interest shall be available on tribal members that are both a minimum of adequate (as determined by the Tribe), for the date of enactment of this Act to fund the 1⁄16 Cowlitz blood and 62 years of age or older the construction and maintenance of tribal program for the first year after the date of as of February 14, 2000. and cultural centers. enactment of this Act. (B) VERIFICATION.—The Secretary has (2) DISTRIBUTION OF INTEREST.—Beginning (j) TRIBAL ADMINISTRATION PROGRAM.— verified the blood quantum and age of the the second year after the date of enactment (1) SETASIDE.—From the principal, the Sec- tribal members identified on the list under of this Act, interest earned on the amount retary shall set aside 21 percent for tribal ad- subparagraph (A). set aside— ministration. (C) REQUEST FOR DISBURSEMENT.—The Cow- (A) shall be disbursed annually in a lump (2) DISTRIBUTION OF INTEREST.— litz Tribal Council has made a request for sum to the Cowlitz Tribal Council; and (A) INITIAL DISTRIBUTION.—Of the initial in- disbursement of judgment funds for the el- (B) shall be used for— terest, 21 percent, and of the principal, the derly assistance payment. (i) property acquisition for business or difference between 21 percent of the initial (3) DEATH OF TRIBAL ELDER.—If a tribal other activities that are likely to benefit the interest and $150,000, shall be set aside and elder eligible for an elderly assistance pay- Tribe economically or provide employment immediately disbursed to the Tribe for the ment dies before receiving payment under for tribal members; purposes of funding tribal administration for this subsection, the funds that would have (ii) business development for the Tribe, in- the first year after the date of enactment of been paid to the tribal elder shall be added to cluding collateralization of loans for the pur- this Act. and distributed in accordance with the emer- chase or operation of businesses, matching (B) SUBSEQUENT DISTRIBUTION.—Beginning gency assistance program under subsection funds for economic development grants, the second year after the date of enactment (c). joint venture partnerships, and other similar of this Act, interest earned on the remaining (4) COSTS.—The Secretary shall pay all ventures that are likely to produce profits principal set aside under this subsection costs of distribution under this subsection for the Tribe; and shall be disbursed annually in a lump sum to out of the amount set aside under paragraph (iii) design, construction, maintenance, pay the operating costs of the Cowlitz Tribal (1). and operation of tribal centers and cultural Council, including travel, telephone, cul- (c) EMERGENCY ASSISTANCE PROGRAM.— centers. tural, and other expenses incurred in the (1) SETASIDE.—From the principal, the Sec- (3) LOAN REPAYMENT.—The principal and conduct of the affairs of the Tribe and legal retary shall set aside 10 percent for an emer- interest of any business loan made under fees as approved by the Cowlitz Tribal Coun- gency assistance program. paragraph (2) shall be repaid to the economic cil. (2) DISTRIBUTION OF INTEREST.—Beginning development program for reinvestments, and (k) GENERAL CONDITIONS.— the second year after the date of enactment business profits shall be credited to the gen- (1) IN GENERAL.—The conditions stated in of this Act, interest earned on the amount eral fund of the Tribe for uses to be deter- this subsection apply to the management setaside— mined by the Cowlitz Tribal Council. and use of all funds available under this title (A) shall be distributed annually in a lump (4) AVAILABILITY OF INTEREST.— 21.5 per- by the Cowlitz Tribal Council. sum to the Cowlitz Tribal Council; and cent of the initial interest available upon the (2) ADMINISTRATIVE COSTS.—Not more than (B) shall be used to provide emergency as- date of enactment of this Act to fund the 10 percent of the interest earned on the prin- sistance for tribal members. program for the first year after the date of cipal designated for the program under any (3) AVAILABILITY OF INTEREST.—Of the ini- enactment of this Act. subsection, except the programs under sub- tial interest, 10 percent shall be available on (g) NATURAL RESOURCES.— sections (i) and (j), may be used for the ad- the date of enactment of this Act shall be (1) SETASIDE.—From the principal, the Sec- ministrative costs of the program. used to fund the program for the first year retary shall set aside 7.5 percent for natural (3) NO SERVICE AREA.— after the date of enactment of this Act. resources. (A) IN GENERAL.—No service area is implied (d) EDUCATION, VOCATIONAL, AND CULTURAL (2) DISTRIBUTION OF INTEREST.—Beginning or imposed under any program under this TRAINING PROGRAM.— the second year after the date of enactment title.

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(B) MEMBERS OUTSIDE SERVICE AREA.—If the (5) on March 18, 1999, $4,522,551.84 was Use or Distribution Act (25 U.S.C. 1401 et costs of administering any program under transferred to the Department of the Inte- seq.), the share of the Tribe of the distribu- this Act for the benefit of tribal members rior; tion amount, and such additional amounts as living outside the Tribe’s Indian Health (6) that judgment amount was deposited in may be awarded to the Tribe by the Court Service area are greater than 10 percent of an escrow account established to provide— with respect to the case referred to in sec- the interest earned on the principal des- (A) $350,000 for the payment of attorney’s tion 302(1) (including any interest accrued on ignated for that program, the Cowlitz Tribal fees and expenses; and those amounts)— Council may authorize the expenditure of (B) $4,172,551.84 for pending Court-ordered (1) shall be made available for tribal such funds for that program. distribution to the Tribe and individual In- health, education, housing, and social serv- (3) APPROVAL.—Before any expenditures, dian trust beneficiaries; ices programs of the Tribe, including— the Cowlitz Tribal Council shall approve all (7) on January 31, 2001, the Court approved (A) educational and youth programs; programs and shall publish in a publication a joint stipulation that established proce- (B) programs for improvement of facilities of general circulation regulations that pro- dures for— and housing; vide standards and priorities for programs (A) identification of the class of individual (C) programs to provide equipment for pub- under this title. Indians having an interest in the judgment; lic utilities; (4) APPLICABILITY OF OTHER LAW.—Section 7 (B) notice to and certification of that (D) programs to provide medical assistance of the Indian Tribal Judgment Funds Use or class; and or dental, optical, or convalescent equip- Distribution Act (25 U.S.C. 1407) shall apply (C) the distribution of the judgment ment; and to funds available under this title. amount to the Tribe and affected class of in- (E) programs to provide senior citizen and (5) APPEAL.— dividual Indians; community services; and (A) IN GENERAL.—Any tribal member who (8)(A) on or about February 14, 2001, in ac- (2) shall not be available for per capita dis- believes that he or she has been unfairly de- cordance with the Court-approved stipula- tribution to any member of the Tribe. nied the right to take part in any program tion, $643,186.73 was transferred to an ac- (b) BUDGET SPECIFICATION.—The specific under this title may appeal to the tribal sec- count established by the Secretary for the programs for which funds are made available retary. benefit of the Tribe; and under subsection (a)(1), and the amount of (B) RESOLUTION.—The tribal secretary (B) that transferred amount represents— funds allocated to each of those programs, shall bring the appeal to the Cowlitz Tribal (i) 54.2 percent of the Tribe’s estimated 26- shall be specified in an annual budget devel- Council for resolution. percent share of the amount referred to in oped by the Tribe and approved by the Sec- (C) TIMELY RESPONSE.—The resolution paragraph (6)(B); plus retary. shall be made in a timely manner, and the (ii) 50 percent of the Tribe’s estimated 26- SEC. 305. APPLICABLE LAW. tribal secretary shall respond to the tribal percent share of interest and capital gains Except as provided in section 304(a), all member. earned on the judgment amount from the pe- funds distributed under this title are subject riod beginning March 18, 1999, and ending on to sections 7 and 8 of the Indian Tribal Judg- TITLE III—ASSINIBOINE AND SIOUX December 31, 2000; ment Funds Use or Distribution Act (25 TRIBES OF THE FORT PECK RESERVA- (9) under the Court-approved stipulation— U.S.C. 1407, 1408). TION (A) that transferred amount is to remain TITLE IV—UTU UTU GWAITU PAIUTE SEC. 301. SHORT TITLE. available for use by the Tribe in accordance INDIAN LAND TRANSFER with a plan adopted under the Indian Tribal This title may be cited as the ‘‘Assiniboine SEC. 401. TRANSFER. Judgment Funds Use or Distribution Act (25 and Sioux Tribes of the Fort Peck Reserva- Section 902(b) of the California Indian U.S.C. 1401 et seq.); tion Judgment Fund Distribution Act of Land Transfer Act (114 Stat. 2921) is amend- (B) the Tribe will most likely receive addi- 2003’’. ed— tional payments from the distribution (1) by striking ‘‘3,525.8’’ and inserting SEC. 302. FINDINGS. amount once the identification of all individ- ‘‘3,765.8’’; and Congress finds that— uals eligible to share in the distribution (2) by adding at the end the following: (1) on December 18, 1987, the Assiniboine amount is completed and the pro rata shares ‘‘(9) UTU UTU GWAITU PAIUTE TRIBE.—Lands and Sioux Tribes of the Fort Peck Reserva- are calculated; and to be held in trust for the Utu Utu Gwaitu tion and 5 individual Fort Peck tribal mem- (C) those additional payments would in- Paiute Tribe, Benton Paiute Reservation are bers filed a complaint in the United States clude— comprised of approximately 240 acres de- Claims Court (currently the Court of Federal (i) the balance of the share of the Tribe of scribed as follows: Claims) in the case of Assiniboine and Sioux the distribution amount and investment in- ‘‘Mount Diablo Base and Meridian Tribes of the Fort Peck Reservation v. come earned on the distribution amount; ‘‘Township 2 South, Range 31 East United States of America, Docket No. 773–87– (ii) the portion of the distribution amount ‘‘Section 11: that represents income derived on funds in L, to recover interest earned on trust funds ‘‘SE1⁄2 and E1⁄2 of SW1⁄4.’’. while those funds were held in special de- special deposit accounts that are not attrib- posit accounts and Indian Moneys–Proceeds utable to the Tribe or any individual Indian; By Mrs. BOXER: of Labor accounts; and S. 1956. A bill to provide assistance to (2) the Court held that the United States (iii) the portion of the distribution amount States and nongovernmental entities that represents shares attributable to indi- was liable for any income derived from in- to initiate public awareness and out- vestment of the trust funds of the Tribe and vidual Indians that— (I) cannot be located for purposes of ac- reach campaigns to reduce teenage individual members of the Tribe for the pe- pregnancies; to the Committee on riod during which those funds were held in cepting payment; and special deposit accounts and Indian Moneys– (II) will not be bound by the judgment in Health, Education, Labor, and Pen- Proceeds of Labor accounts; the case referred to in paragraph (1); and sions. (3) on December 31, 1998, the plaintiffs en- (10) under the Indian Tribal Judgment Mrs. BOXER. Mr. President, today, I tered into a settlement with the United Funds Use or Distribution Act (25 U.S.C. 1401 am proud to introduce the HOPE Youth States for claims made in the case for pay- et seq.), the Secretary is required to submit Pregnancy Prevention Act. ment by the United States of— to Congress for approval an Indian judgment While teen pregnancy rates in the (A) $1,339,415.33, representing interest fund use or distribution plan. United States have dropped signifi- earned on funds while held in special deposit SEC. 303. DEFINITIONS. cantly in the last decade, we still have accounts at the Fort Peck Agency during the In this title: one of the highest rates among indus- (1) COURT.—The term ‘‘Court’’ means the period August 13, 1946, through September 30, trialized nations. American teens are 1981; Court of Federal Claims. (B) $2,749,354.41, representing— (2) DISTRIBUTION AMOUNT.—The term ‘‘dis- twice as likely to become pregnant as (i) interest on the principal indebtedness tribution amount’’ means the amount re- teenagers in Great Britain and four for the period from August 13, 1946, through ferred to in section 302(6)(B). times more likely than teens in Swe- July 31, 1998; plus (3) JUDGMENT AMOUNT.—The term ‘‘judg- den and France. At the same time, the (ii) $364.27 in per diem interest on the prin- ment amount’’ means the amount referred to teen pregnancy rates for Hispanic and cipal indebtedness for each day during the in section 302(5). other minority teens in the United period commencing August 1, 1998, and end- (4) PRINCIPAL INDEBTEDNESS.—The term States are significantly higher than ing on the date on which the judgment is ‘‘principal indebtedness’’ means the amount referred to in section 302(3)(A). the national average. paid; and The HOPE Youth Pregnancy Preven- (C) $350,000, representing the litigation (5) TRIBE.—The term ‘‘Tribe’’ means the costs and attorney’s fees that the Tribe in- Assiniboine and Sioux Tribes of the Fort tion Act would provide resources to curred to prosecute the claims; Peck Reservation. help prevent teen pregnancy among at- (4) the terms of the settlement were ap- SEC. 304. DISTRIBUTION OF JUDGMENT FUNDS. risk and minority youth. proved by the Court on January 8, 1999, and (a) IN GENERAL.—Notwithstanding any pro- Specifically, my bill would provide judgment was entered on January 12, 1999; vision of the Indian Tribal Judgment Funds grants to States, localities, and non-

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00101 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15982 CONGRESSIONAL RECORD — SENATE November 25, 2003 governmental organizations for teen- groundwater resources. A thorough un- I ask unanimous consent that the age pregnancy prevention activities derstanding of the resource is the first text of the bill be printed in the targeted to areas with large ethnic mi- step to avoiding conflicts similar to RECORD. norities and other at-risk youth. These those that have arisen between the There being no objection, the bill was grants could be used for a number of United States and Mexico over shared ordered to be printed in the RECORD, as activities, including youth develop- surface waters—e.g. the Rio Grande. follows: ment, work-related interventions and The United States-Mexico Trans- S. 1957 other educational activities, parental boundary Assessment Act is intended Be it enacted by the Senate and House of Rep- involvement, teenage outreach and to address the lack of binational con- resentatives of the United States of America in clinical services. The bill would au- sensus regarding the source and avail- Congress assembled, thorize $30 million a year for five years ability of future water supplies along SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘United for these grants. the border. It will do this by estab- The bill would also provide grants to States-Mexico Transboundary Aquifer As- lishing a scientific program, involving sessment Act’’. States and non-governmental organiza- entities on both sides of the border, to SEC. 2. FINDINGS AND PURPOSE. tions to establish multimedia public comprehensively assess priority trans- (a) FINDINGS.—Congress finds that— awareness campaigns to combat teen- boundary aquifers. The information (1) rapid population growth in the United age pregnancy. These campaigns would and scientific tools developed by this States-Mexico border region over the last aim to prevent teen pregnancy through program will be extremely valuable to decade has placed major strains on limited TV, radio and print ads, billboards, State and local water resource man- water supplies in the region; posters, and the Internet. Priority agers in the border region. This effort (2) water quantity and quality issues are likely to be the determining and limiting would be given to those activities that is to be led by the United States Geo- target ethnic minorities and other at- factors affecting future economic develop- logical Survey (USGS) working closely ment, population growth, and human health risk youth. The bill would authorize with the border states and local enti- in the border region; $20 million a year for 5 years. ties. Over the last several years the (3) increasing use of groundwater resources Over the past 10 years, we have made USGS has been working with key in the border region by municipal and other progress reducing teen pregnancy. But stakeholders in the border region to de- water users has raised serious questions con- out work is not done. We need to sign this technical program. cerning the long-term availability of the strengthen our efforts, especially water supply; I understand that establishing this among Hispanic and other minority (4) cooperation between the United States scientific program and accurately as- youth. I encourage my colleagues to and Mexico in assessing and understanding sessing our shared water resources is transboundary aquifers is necessary for the support this effort. just a step towards developing the successful management of shared ground- long-term plans and solutions that will water resources by State and local authori- By Mr. BINGAMAN: ties in the United States and appropriate au- S. 1957. A bill to authorize the Sec- help avoid future international dis- putes concerning scarce water supplies. thorities in Mexico, including management retary of the Interior to cooperate with that avoids conflict between the United the States on the border with Mexico This small step, however, is an impor- States and Mexico; and other appropriate entities in con- tant one, and is recognized by a num- (5) while there have been some studies of ducting a hydrogeologic characteriza- ber of organizations familiar with the binational groundwater resources along the tion, mapping, and modeling program need for cooperative efforts between United States-Mexico border, additional data for priority transboundary aquifers, the United States and Mexico on and analyses are needed to develop an accu- and for other purposes; to the Com- shared water resources. In its 6th Re- rate understanding of the long-term avail- ability of useable water supplies from trans- mittee on Energy and Natural Re- port on the U.S.-Mexico Border Envi- ronment, the Good Neighbor Environ- boundary aquifers; and sources. (6) the Border States— Mr. BINGAMAN. Mr. President, mental Board, an independent federal (A) are primarily responsible for the man- today I am pleased to introduce the advisory committee managed by the agement and allocation of groundwater re- United States-Mexico Transboundary U.S. Environmental Protection Agen- sources within the respective boundaries of Aquifer Assessment Act. cy, recommended the initiation of a the Border States; and This bill is the result of a field hear- ‘‘border-wide groundwater assessment (B) should have a cooperative role in the ing I conducted in Las Cruces, NM two program to systematically analyze pri- analysis and characterization of transbound- ary aquifers. years ago during my tenure as the ority trans-boundary aquifers.’’ Also, the Center for Strategic and Inter- (b) PURPOSE.—The purpose of this Act is to Chairman of the Energy and Natural direct the Secretary of the Interior to estab- Resources Committee. The focus of the national Studies, in a January 2003 re- lish a United States-Mexico transboundary hearing was water resource issues that port of its U.S.-Mexico Binational aquifer assessment program to— were developing along the U.S.-Mexico Council, included as one of its rec- (1) systematically assess priority trans- border—particularly the area encom- ommendations that Mexico and the boundary aquifers; and passing Las Cruces, El Paso, Texas, and United States ‘‘improve data collec- (2) provide the scientific foundation nec- Jua´ rez, Mexico. tion, information gathering, and trans- essary for State and local officials to address pressing water resource challenges in the There had long existed an ongoing ef- parency as the first step to developing a long-term strategy for water manage- United States-Mexico border region. fort to address water quality issues and SEC. 3. DEFINITIONS. waste-water infrastructure needs in the ment.’’ In this Act: border region, but I was concerned that Ultimately, the necessary long-term (1) AQUIFER.—The term ‘‘aquifer’’ means a issues regarding the availability of fu- strategy will have to be developed by subsurface water-bearing geologic formation ture water supplies were growing. The the communities and other water users from which significant quantities of water testimony at that hearing made clear who reside along the border. Working may be extracted. that there exists little consensus on with each other and their state water (2) BORDER STATE.—The term ‘‘Border how growing communities in the bor- resource agencies, I believe successful State’’ means each of the States of Arizona, California, New Mexico, and Texas. der region will address their future strategies can be developed so long as (3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ water needs. In particular, I was struck the information that is the basis for means an Indian tribe, band, nation, or other by the lack of agreement on the long- the plans is the most accurate possible. organized group or community— term viability of future groundwater In that respect, the USGS has a strong (A) that is recognized as eligible for the sources, many of which involve and important role to play. This bill special programs and services provided by aquifers underlying communities in will ensure that the USGS will be able the United States to Indians because of their both the United States and Mexico. to fulfill this role which, in turn, will status as Indians; and Given the rapid population growth enhance the prospects for our border (B) the reservation of which includes a transboundary aquifer within the exterior along the U.S.-Mexico border and the communities to plan for their future boundaries of the reservation. increasing demand for water, there is a and manage their growth in a manner (4) PRIORITY TRANSBOUNDARY AQUIFER.— strong need to gain a common under- that ensures their long-term viability The term ‘‘priority transboundary aquifer’’ standing of the limits of our shared and prosperity. means a transboundary aquifer that has been

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00102 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15983 designated for study and analysis under the (A) conduct joint scientific investigations; (At the request of Mr. DASCHLE, the program. (B) archive and share relevant data; and following statement was ordered to be (5) PROGRAM.—The term ‘‘program’’ means (C) carry out any other activities con- printed in the RECORD.) the United States-Mexico transboundary aq- sistent with the program; and ∑ Mr. KERRY. Mr. President, as the uifer assessment program established under (3) produce scientific products for each pri- world’s largest economy, I believe the section 4(a). ority transboundary aquifer to provide the (6) RESERVATION.—The term ‘‘reservation’’ scientific information needed by water man- United States must have the fairest, means land that has been set aside or that agers and natural resource agencies on both most transparent and efficient finan- has been acknowledged as having been set sides of the United States-Mexico border to cial markets in the world. Our finan- aside by the United States for the use of an effectively accomplish the missions of the cial services companies must live up to Indian tribe, the exterior boundaries of managers and agencies. the highest standards of account- which are more particularly defined in a (c) DESIGNATION OF CERTAIN AQUIFERS.— ability. This is critical to ensure that final tribal treaty, agreement, executive For purposes of the program, the Secretary the United States remains strong, com- order, Federal statute, secretarial order, or shall designate the Hueco Bolson and Mesilla judicial determination. aquifers underlying parts of Texas, New Mex- petitive and safe in the global econ- (7) SECRETARY.—The term ‘‘Secretary’’ ico, and Mexico as priority transboundary omy. Unfortunately, recent reports of means the Secretary of the Interior, acting aquifers. late trading and market timing have through the Director of the United States (d) COOPERATION WITH MEXICO.—To ensure brought into question whether mutual Geological Survey. a comprehensive assessment of transbound- fund companies have lived up to the (8) TRANSBOUNDARY AQUIFER.—The term ary aquifers, the Secretary shall, to the max- highest standards of accountability. ‘‘transboundary aquifer’’ means an aquifer imum extent practicable, work with appro- They have also shown that the Bush that underlies the boundary between the priate Federal agencies and other organiza- United States and Mexico. tions to develop partnerships with, and re- Administration failed to provide effec- (9) TRI-REGIONAL PLANNING GROUP.—The ceive input from, relevant organizations in tive oversight and examination of mu- term ‘‘Tri-Regional Planning Group’’ means Mexico to carry out the program. tual fund companies, while poorly en- the binational planning group comprised of— (e) GRANTS AND COOPERATIVE AGREE- forcing our securities laws. The inac- (A) the Junta Municipal de Aqua y MENTS.—The Secretary may provide grants tion of the Bush Administration has Saneamiento de Ciudad Juarez; or enter into cooperative agreements and dangerously eroded the trust and con- (B) the El Paso Water Utilities Public other agreements with the Water Resource fidence of the American people in mu- Service Board; and Research Institutes and other Border State (C) the Lower Rio Grande Water Users Or- entities to carry out the program. tual funds and may have allowed mu- ganization. SEC. 5. STATE AND TRIBAL ROLE. tual fund companies and big investors (10) WATER RESOURCES RESEARCH INSTI- (a) COORDINATION.—The Secretary shall co- to engage in fraudulent behavior TUTES.—The term ‘‘water resources research ordinate the activities carried out under the against individuals and pension funds. institutes’’ means the institutes within the program with— New York and Massachusetts regu- Border States established under section 104 (1) the appropriate water resource agencies lators have uncovered a scheme in of the Water Resources Research Act of 1984 in the Border States; and which some of America’s top mutual (42 U.S.C. 10303). (2) any affected Indian tribes. fund companies let big investors profit SEC. 4. ESTABLISHMENT OF PROGRAM. (b) NEW ACTIVITY.—After the date of enact- illegally at the expense of small inves- (a) IN GENERAL.—The Secretary, in con- ment of this Act, the Secretary shall not ini- sultation and cooperation with the Border tiate any field studies to develop data or de- tors with so-called ‘‘late trades’’ and States, the Water Resources Research Insti- velop any groundwater flow models for a pri- ‘‘market timing.’’ The scam appears to tutes, Sandia National Laboratories, and ority transboundary aquifer under the pro- be widespread. Today, roughly half of other appropriate entities in the United gram before consulting with, and coordi- all American households own mutual States and Mexico, shall carry out the nating the activity with, the Border State funds either directly or through a re- United States-Mexico transboundary aquifer water resource agency that has jurisdiction tirement account or pension fund. It’s assessment program to characterize, map, over the aquifer. and model transboundary groundwater re- been reported that as much as one SEC. 6. AUTHORIZATION OF APPROPRIATIONS. quarter of mutual fund companies may sources along the United States-Mexico bor- (a) IN GENERAL.—There are authorized to der at a level of detail determined to be ap- be appropriated to carry out this Act be involved in late trading and market propriate for the particular aquifer. $50,000,000 for the period of fiscal years 2005 timing and that such schemes may cost (b) OBJECTIVES.—The objectives of the pro- through 2014. investors as much as $5 billion annu- gram are to— (b) DISTRIBUTION OF FUNDS.—Of the ally. (1) develop and implement an integrated amounts made available under subsection In a late trade, big investors pur- scientific approach to assess transboundary (a), 50 percent shall be made available to the chase mutual fund shares after the groundwater resources, including— Water Resource Research Institutes to pro- (A)(i) identifying fresh and saline trans- close of the market but at the closing vide funding to appropriate entities in the price, allowing them to take advantage boundary aquifers; and Border States (including Sandia National (ii) prioritizing the transboundary aquifers Laboratories, State agencies, universities, of late-breaking financial news. A mu- for further analysis by assessing— the Tri-Regional Planning Group, and other tual fund manager might allow a big (I) the proximity of the transboundary aq- relevant organizations) and Mexico to con- investor to buy shares in a technology uifer to areas of high population density; duct activities under the program, including fund at the 4 p.m. close price after (II) the extent to which the transboundary the binational collection and exchange of learning at 5 p.m. that a major tech- aquifer is used; and scientific data. (III) the susceptibility of the transbound- nology company has reported unex- SEC. 7. REPORTS. ary aquifer to contamination; pectedly strong earnings. The investor Not later than 5 years after the date of en- is almost guaranteed a profit when the (B) evaluating all available data and publi- actment of this Act, and on completion of cations as part of the development of study the program in fiscal year 2014, the Sec- market opens the following day and plans for each priority transboundary aqui- retary shall submit to the appropriate water share prices climb. In return for this il- fer; resource agency in the Border States, an in- legal access, the big investor might (C) creating a geographic information sys- terim and final report, respectively, that de- pledge to continue to invest in the tem database to characterize the spatial and scribes— fund. temporal aspects of each priority trans- (1) any activities carried out under the pro- Market timing exploits the unique boundary aquifer; and gram; way that mutual funds set their prices. (D) using field studies, including support (2) any conclusions of the Secretary relat- for and expansion of ongoing monitoring and While it is not illegal, most mutual ing to the status of transboundary aquifers; fund companies assure investors that metering efforts, to develop any additional and data that are needed to define aquifer char- (3) the level of participation in the pro- they discourage such practices and acteristics to the extent necessary to enable gram of entities in Mexico. that they are working to prevent fund the development of groundwater flow models timing. Under a market timing trade, to assess sustainable water yields for each By Mr. DASCHLE (for Mr. KERRY big investors trade in and out of cer- priority transboundary aquifer; (for himself and Mr. KENNEDY)): tain mutual funds in order to exploit (2) expand existing agreements, as appro- S. 1958. A bill to prevent the practice priate, between the United States Geological the inefficient way mutual funds price Survey, the Border States, the Water Re- of late trading by mutual funds, and their shares and ensure a profit. sources Research Institutes, and appropriate for other purposes; to the Committee In 2002, individuals who invested in authorities in the United States and Mexico, on Banking, Housing, and Urban Af- mutual funds paid approximately $70 to— fairs. billion in advisory and management

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00103 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15984 CONGRESSIONAL RECORD — SENATE November 25, 2003 fees, an average of more than $700 per doing and the SEC still has not inves- ment of mutual funds. This new board investor. There is a significant dis- tigated whether outside investors were will be similar to the Public Company parity between the rate of advisory engaged in market-timing activities. Accounting Oversight Board developed fees charged to mutual fund investors New York Attorney General Eliot in the Sarbanes-Oxley Act. It will be and the rate paid by institutional in- Spitzer said that Putnam’s agreement charged with identifying potential vestors, even though they provide the with the SEC does not address crucial problems in the mutual fund industry similar services. Currently, mutual issues involving restitution to fund and ensuring that fund boards are ac- fund managers are under no obligation holders, fees and penalties. William tively addressing these problems—be- to negotiate advisory and management Galvin, the Massachusetts Secretary of fore they spread. It would promulgate fees that are in the best interest of State said that the agreement clearly guidance regarding current regulatory their shareholders. In some instances, demonstrates that the SEC is more in- issues and best practices regarding how mutual fund managers has a financial terested in protecting the mutual fund to deal with them, and it would exam- relationship with the contractor which industry than the average investor. ine mutual funds to ensure that they receives a no-bid contract from the These actions by the SEC highlight a are taking necessary steps to protect same mutual fund. fundamental problem in the Bush Ad- shareholders. The Board itself would In a September 2003 complaint, New ministration’s hands-off approach to determine how to provide an adequate York Attorney General Spitzer alleged regulating financial markets and the and reliable source of funding for its that Canary Capital Partners, a New danger it poses to small investors and investigations. Jersey hedge fund, engaged in illegal the national economy. I believe that every investor has the and unethical trading in mutual funds, Compounding this danger and lack of right to know how much their mutual such as late trading and market tim- responsible leadership, President Bush fund takes away from their investment ing. After the New York State com- has repeatedly nominated individuals to pay for advisory, management, and plaint, the SEC ordered a preliminary to important economic positions nota- investment service fees. Under this leg- investigation, which found that half of ble for their corporate sympathies. The islation, each investor will receive in the 88 mutual fund companies and bro- President selected a lobbyist for finan- their statement a regular accounting kerage firms had arrangements to cial deregulation as the chief regulator as to what types of fees they are pay- make market-timing trades. These ar- of the federal mortgage lender Freddie ing to invest in their mutual fund. This rangements occurred even though Mac. His first SEC chairman was an ac- will help investors shop around and about half of the fund companies have counting industry who was forced to find the mutual funds that have the policies specifically barring market resign in a storm of public outrage over lowest fees. Mutual funds will have to timing. Other investigations of mutual his lenient treatment of his former respond to the changing marketplace fund companies have begun, and it ap- business. and only charge fees that are abso- pears as though many mutual fund Even after the accounting scandals lutely necessary to the management of companies have been involved directly that felled Enron and WorldCom, it was the fund. Also, this legislation requires or indirectly in late trading and mar- last year’s Democratic Senate that mutual fund managers to negotiate fee ket-timing schemes. pushed to enact an historic corporate contracts that are reasonable and in I am very concerned that the actions reform law and the President who their investors’ best interest and to re- of the SEC in response to the State in- joined the effort only once its passage port on any significant or material vestigations of late trading and market was all but ensured. It was state attor- business or professional relationship timing have been inadequate and show neys general who exposed dubious con- with companies that the mutual fund a bias in favor of mutual fund compa- flicts of interest at brokerage houses. provides contracts. Finally, the bill re- nies at the expense of small investors. And when energy companies gauged quires each mutual fund to hire a com- For example, earlier this year the ratepayers in the West through ques- pliance officer to ensure that the mu- SEC conducted a four-month investiga- tionable trades, the Administration sat tual fund complies with all relevant tion of Putnam Investments’ record on its hands for months. laws and makes sure that they provide keeping, internal controls, and ability The message from the White House any information on scams to the inde- to comply with Federal securities laws. to the regulatory agencies, in actions if pendent mutual fund directors to stop During that review, a Putnam em- not words, is don’t ask and don’t tell abuse. Taken together, these provi- ployee informed the SEC that the com- when it comes to protecting investors sions will help investors by making it pany had failed to stop improper mar- and consumers. much more difficult for mutual funds ket-timing trades. Despite the tip, SEC Justice demands that we fully pros- to charge unreasonable and unneces- examiners did not identify any prob- ecute Wall Street insiders that steal sary fees. lems with market timing in its report from Americans saving for retirement, Today, mutual funds are valued once on Putnam. The Putnam employee, education or simply a brighter future. a day, called the Net Asset Value or after being rejected by the SEC, And we can only hope to revive our NAV, usually at 4 p.m. EST, when the brought the same information to the economy if we restore investor con- New York market closes. The bill will Massachusetts Secretary of State’s of- fidence in the markets so that capital require that all mutual fund companies fice, which began an investigation. flows to business growth and job cre- receive an order prior to the time the Only after the Commonwealth of Mas- ation. fund sets a share price or NAV for an sachusetts began an investigation did To stop the erosion of trust in our fi- investor to receive that day’s price. the SEC begin its own investigation of nancial markets and to help restore This will make it much more difficult market timing at Putnam. In October, the American investor’s faith in the for big investors to use brokers to send both the Commonwealth of Massachu- mutual fund industry, I am introducing in trades after the 4 p.m. deadline. setts and the SEC charged Putnam the Mutual Fund Investor Protection We should include late-trading laws with securities fraud, only months Act to update federal securities laws to as an offense under the Racketeer In- after the SEC gave Putnam a clean bill curb late-trading and market-timing fluenced and Corrupt Organization of health. Only a few weeks later, Put- abuses and institute new limits on mu- (RICO) provisions of the criminal code. nam reached a partial settlement of tual fund fees paid by investors. First used to prosecute the Mob, RICO the securities fraud charges with the The actions by the SEC show that it should now be used to stop and punish SEC which did not include the Com- is incapable of protecting investors organized crime on Wall Street. This monwealth of Massachusetts. Under from securities fraud by mutual fund will help limit mutual fund employees the settlement, Putnam agrees to companies and will not prosecute this and big investors from attempting to make restitution only for losses to in- type of fraud to the full extent of the defraud small investors. It will also vestors attributable to excessive short- law. Therefore, we must take the day- help investors who lose money due to term and market-timing trading by its to-day oversight of mutual funds away late-trading schemes to recover treble employees and to make structural re- from the SEC and develop a new Mu- damages, costs and attorneys’ fees. forms. Under the agreement, Putnam tual Fund Oversight Board to provide The SEC recently found that many neither admitted nor denied wrong- oversight, examination and enforce- mutual fund companies and brokerage

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00104 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15985 firms had arrangements with big inves- metropolitan area Congressional Dele- governmental commitment to Ana- tors allowing them to make market- gation. costia restoration. There are today timing trades even though these fund Mr. President, the Anacostia River is more than 60 local, State and Federal companies have policies specifically a resource rich in history and with tre- agencies involved in Anacostia water- barring market timing. My legislation mendous natural resources and rec- shed restoration. And more than $100 bars mutual fund employees from en- reational potential. It is homes to 43 million has been spent cleaning up the gaging in market timing trades. It re- species of fish, some 200 species of river. There is clearly much for which quires each mutual fund prospectus to birds, as well as more than 800,000 peo- we can all be proud. But the job of re- explicitly disclose market-timing poli- ple whose neighborhoods border the storing the Anacostia watershed is far cies and procedures to stop abuse. watershed. Flowing through Mont- from complete. The Anacostia is still Then, it increases penalties for mutual gomery and Prince George’s Counties one of North America’s most endan- funds which do not follow their own in Maryland and emptying into the Po- gered and threatened rivers. It is des- policies and procedures to limit abuse. tomac at the District of Columbia, the ignated one of three ‘‘regions of con- In order to help stop mutual fund watershed consists of a 176-square-mile cern’’ for toxics in the Chesapeake Bay abuse, this legislation increases the drainage area. One of the most urban- watershed. penalties and jail time for current se- ized watersheds in the United States, The legislation which we are intro- curities laws including: defrauding the the Anacostia suffers a series of prob- ducing authorizes more than $200 mil- offer or sale of securities, failing to lems including trash, toxic pollution lion in Federal assistance over the next keep current and appropriate records of from urban runoff, sewage pollution 10 years to restore the Anacostia. Of brokerage transactions, and not selling from leaking sewer lines and combined these funds, $170 million is authorized to address the biggest pollution prob- or redeeming fund shares at a price sewer overflows, sediment pollution lems in the watershed—stormwater based on current Net Asset Value from erosion, and loss of fish and wild- runoff and failing wastewater infra- (NAV). These changes will make crimi- life and recreational resources. It is a structure. As the builder of much of nals think twice before committing resource that has long been abused and the original infrastructure and a major violations of securities laws. The pro- neglected, but one that, in my view, user, the Federal Government has an ceeds of the additional fines collected can and must be protected and re- important responsibility to help stem by this legislation will be put into a stored. the flow of this pollution and comply fund to assist the victims of their Efforts to begin rejuvenating the with the Clean Water Act. The remain- crimes. Anacostia watershed began formally in ing funds will allow the administrator Today, individual mutual funds are 1987 when the State of Maryland, Mont- of EPA, working together with an effectively dominated by their advis- gomery and Prince George’s Counties, ‘‘Anacostia Watershed Council’’ of ers. My legislation strengthens the in- and the District of Columbia signed an State and local officials, to develop a fluence of independent directors on Anacostia Watershed Restoration comprehensive environmental protec- fund boards by requiring that inde- Agreement. The agreement authorized the Washington Area Council of Gov- tion and resource management plan for pendent directors comprise at least the watershed, for several Federal three-quarters of the board. It will also ernments, COG, to manage the restora- tion program and the Interstate Com- agencies to join in the implementation require mutual funds to have an inde- of the plan. pendent chairman with the authority mission on the Potomac River Basin, ICPRB, to protect the resources and fa- Mr. President, the Anacostia River and ability to demand and receive all suffers from centuries of impacts and information from the fund advisory cilitate public participation. COG cre- ated an Anacostia Watershed Restora- changes. Once a healthy, thriving and management companies. This will river, it is today severely degraded. tion Committee, AWRC, to coordinate increase the voice investors have in This legislation is urgently needed if and implement restoration projects fund management and limit mutual we are to achieve the goal of making throughout the watershed. Since that fund abuses. the Anacostia and its tributaries swim- time, local, State, and Federal Govern- By developing a new structure to pro- mable and fishable again. I urge my ment agencies, as well as the Anacostia vide appropriate oversight and enforce- colleagues to join me in supporting Watershed Society, the Anacostia Citi- ment mechanisms to fight abuse in the this measure and ask unanimous con- zens Advisory Committee and other en- mutual fund industry, this legislation sent that a section-by-section analysis vironmental organizations and dedi- restores the confidence of investors in of the legislation be printed in the cated private citizens have contributed mutual funds. Ultimately, investor RECORD. confidence will increase investment significant resources toward re-estab- There being no objection, the anal- and enhance economic growth. I ask all lishing the Anacostia watershed eco- ysis was ordered to be printed in the my colleagues to support this legisla- system. RECORD, as follows: Thanks to this cooperative and co- tion.∑ SECTION-BY-SECTION ANALYSIS OF THE ‘‘ANA- ordinated Federal, State, local and pri- COSTIA WATERSHED INITIATIVE ACT OF 2003’’ By Mr. SARBANES (for himself, vate effort, we are beginning to make Section 1—Title—‘‘The Anacostia Water- Ms. LANDRIEU, Ms. MIKULSKI, some progress in restoring the water- shed Restoration Act of 2003’’ and Mr. ALLEN): shed. A Six Point Action Plan was Section 2—Findings—Describes the at- S. 1959. A bill to amend the Federal signed in 1991 setting ambitious and tributes and challenges of the watershed, ad- Water Pollution Control Act and the broad-reaching goals for the river’s res- dresses the economic and natural potential Water Resources Development Act of toration. In 1993 we celebrated the suc- of the watershed to Maryland, DC and the cessful restoration of 32 acres of emer- United States; relates the history of efforts 1992 to provide for the restoration, pro- to restore the Anacostia River and water- tection, and enhancement of the envi- gent tidal wetlands by the Army Corps shed; and suggests that the importance of ronmental integrity and social and eco- of Engineers at Kenilworth marsh. The the Anacostia River combined with the need nomic benefits of the Anacostia Water- project has shown significant results in for concerted sustained actions among the shed in the State of Maryland and the improving tidal water flow through the affected jurisdictions, requires the develop- District of Columbia; to the Committee marsh, and reducing the concentration ment of comprehensive environmental pro- on Environment and Public Works. of nitrogen and phosphorus in the area tection and resource management action plan. Mr. SARBANES. Mr. President, and demonstrates what can be achieved Section 3—Anacostia Watershed Initia- today I am introducing legislation to in urban river restoration. There have tive—Amends Federal Water Pollution Con- bolster efforts to restore the Anacostia been other success stories as well in trol Act (Clean Water Act) by adding a new River. Joining me in sponsoring this urban stream restoration in Mont- section 123 that: measure are my colleagues Senators gomery and Prince George’s counties, a. Provides definitions. b. Establishes the ‘‘Anacostia Watershed LANDRIEU, MIKULSKI and ALLEN. A removing barriers to fish passage and Restoration Initiative’’ in the U.S. Environ- companion bill has also been intro- reforestation efforts throughout the mental Protection Agency to restore the en- duced in the House, sponsored by Rep- watershed, to name only a few. In 1999, vironmental integrity of the Anacostia wa- resentative ELEANOR HOLMES NORTON a new Anacostia Watershed Agreement tershed and plan and fund restoration im- and other members of the Washington was signed to strengthen the regional provements.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00105 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15986 CONGRESSIONAL RECORD — SENATE November 25, 2003 c. Establishes the Anacostia Watershed that the community can’t match the good repair. All Amtrak has been able Council (comprised of the Administrator of federal grants. to do for 30 years is stay alive. It’s the EPA, the Interior Secretary, the Sec- The bill that I am introducing today time to give Amtrak the tools and retary of the Army, the Governor of Mary- would address this by eliminating the land, the Governor of Virginia, the Mayor of funding it needs to do the job we keep the District of Columbia, and the County Ex- match required under the Airport Im- asking it to do. provement Program for economically ecutives from Prince Georges and Mont- Last year I introduced the National depressed communities. gomery Counties) and provides minimum Defense Rail Act of 2002 which was ap- meeting requirements. To be considered an economically de- d. Establishes objectives and guidelines for pressed community, a community proved by the Senate Commerce Com- the development, review and approval, with- would have a variety of ways to qual- mittee by a vote of 20–3. We have in one year after enactment, of a 10-year ity. First, for the last two years, the shown that bipartisan support exists multi-jurisdictional Comprehensive Action unemployment rate could be one per- for authorizing a strong rail program, Plan for restoration of the Anacostia water- cent higher than the nation’s unem- however the main obstacle we have shed. Directs that the comprehensive action faced has been securing funding to live plan shall incorporate the goals of the 1991 ployment rate. Second, the per capita Anacostia Watershed Restoration Agree- income of the community could be 80 up to the authorized amounts. This leg- ment; provide for public input; identify an- percent or less of the nation’s per cap- islation attempts to address the lack of nual restoration targets, describe the duties ita income. Or third, the Secretary of a guaranteed revenue stream for pas- of federal, state and local agencies, and sug- Transportation could decide that a par- senger rail programs and establishes a gest methods, schedules, and amounts of ticular community had a special needs. framework to address freight needs funding required for programs, activities, These criteria are consistent with where there is a clear public benefit. and projects. Directs that the plan shall pro- mote implementation of a federally approved other provisions of federal law. It’s a foregone conclusion that trans- combined sewer long term control plan. Al- I believe that by waiving the match- portation development requires money. ing grant in communities that have a lows the plan to be amended as appropriated. We somehow figured this out a long e. Requires the Anacostia Watershed Coun- high unemployment rate or low per time ago with regard to every other cil to report annually to the Congressional capita income, we will help to rejuve- mode of transportation. We federally authorizing and appropriating committees. nate their business climate and rein- f. Permits the Administrator, in consulta- vigorate their local economies. funded the development of the inter- tion with the Anacostia Watershed Council, state highway system; we subsidized to provide financial and technical support to With a little bit of help, I am very optimistic about the future of Del airport construction; we dredged har- local public and non-profit entities to de- bors and channels; and we built locks velop and implement the Comprehensive Ac- Norte County and other areas in Cali- tion Plan. fornia and across the Nation that are and dams. And the result of all that in- g. Directs Under or Assistant Secretaries facing tough economic times. This bill vestment is that our citizens and our of the EPA, Interior, Agriculture, Com- will provide that little bit of help. goods can move across the country, merce, Army, HUD, and Transportation act- from big cities and from small towns, ing through designed agencies to support the By Mr. HOLLINGS (for himself, efficiently and relatively cheaply. We Initiative and Comprehensive Action Plan. h. Provides that the Initiative shall not af- Ms. COLLINS, Mr. CARPER, Mr. have today a national transportation fect existing obligations. SPECTER, Mr. JEFFORDS, Mr. system with many impressive compo- i. Authorizes appropriations for fiscal LAUTENBERG, and Mr. BIDEN): nents. years 2004–2013; $3,000,000 to the Adminis- S. 1961. A bill to provide for the revi- trator for development and implementation talization and enhancement of the You might even say we have been a of the Initiative and $6,000,000 of which shall American passenger and freight rail little too successful with these modes be used by EPA, Interior, Agriculture, Com- transportation system; to the Com- of transportation because many of merce, Transportation, HUD, and the Army; mittee on Commerce, Science, and them are now strained to capacity in provided that not more than 10 percent of Transportation. many areas of the country. This situa- these funds may be used for administrative tion presents not only an economic di- costs. Mr. HOLLINGS. Mr. President, I rise Section 4—Water Infrastructure—Amends today to introduce the American Rail- lemma, but also a genuine security Section 219(f) of the Water Resource Devel- road Revitalization, Investment, and risk. The atrocious events of Sep- opment Act to provide $150 million to sup- Enhancement Act of the 21st Century, tember 11th, and the aftermath that port upgrading the DC combined sewer and better known as ‘‘ARRIVE–21.’’ This followed, exposed the vulnerability of $20 million for a program of assistance to legislation is of vital importance to our society and our economy when non-federal entities to address other water rail transportation because it provides quality issues. transportation choices become limited steady, dependable funding for our be- and our mobility is diminished. Effec- By Mrs. BOXER: leaguered national passenger rail sys- tive transportation security means S. 1960. A bill to exempt airports in tem. It also provides funding for infra- that, as a Nation, we nurture all trans- economically depressed communities structure investment in the railroad portation options and we do not allow from matching grant obligations under industry as a whole, including freight ourselves to be overly dependent on the Airport Improvement Program; to railroads. And it establishes a financ- only one or two particular modes. In the Committee on Commerce, Science, ing mechanism to ensure that our rail effect, that’s what we have done by fa- and Transportation. system benefits from a steady stream voring highways and aviation, where Mrs. BOXER. Mr. President, last of funding, just like our airline indus- we have directed the flow of billions of summer I visited Del Norte County—in try, our transit systems, and our na- dollars. Ironically, rail passenger serv- the most northern part of my State. tional highway system. ice is more environmentally-friendly, Del Norte County has been hit particu- For the past 30 years, Amtrak has more fuel-efficient, and more capable larly hard during these tough economic provided us with a valuable public serv- of mitigating the impacts of popu- times. Unemployment in the county ice, even though it was forced year lation congestion to help foster re- tops 7.6 percent. Local officials are after year to come beg for money from gional economic growth than any of the Congress. And year after year, the working hard to revitalize the econ- the other modes. But in the process of Congress gave it just enough money to omy, and one of their top priorities is shoring up those other transportation barely survive another 12 months. to renovate Del Norte County’s airport. modes for all those years, we lost our Sometimes Congress didn’t appropriate And they would like federal assistance. focus on passenger rail and we sadly However, under the federal Airport even enough money to last 12 months, Improvement Program, federal grants and Amtrak had to come back and beg neglected investing in its development. must be matched with local funds. In for a supplemental appropriation just For passenger rail to be successful, general, I support that policy. But, for to remain in business until the end of its infrastructure must be developed communities facing severe economic the fiscal year. Never mind having through the kind of bold Federal lead- problems, this match is prohibitive. enough money to grow the railroad; ership we exercised for our other modes It’s a bit of a Catch-22. The Federal never mind having enough money to of transportation. That’s why my col- funds that would help the local econ- run a first-class passenger railroad. leagues and I are pleased to introduce omy rebound are not available because And never mind having enough money this landmark piece of legislation de- the local economy is in such bad shape to keep the infrastructure in a state of signed to change the way we think

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00106 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15987 about financing passenger rail service intermodal capacity in connection with ask unanimous consent that the and designed to grow our passenger rail maritime, aviation, and highway facili- amendment and the text of the bill be system into the world-class system it ties. printed in the RECORD. should be. The bill creates Federal/ Eligible capital projects would in- There being no objection, the amend- State and public/private partnerships clude new rail line development, plan- ment and the bill was ordered to be to promote infrastructure development ning and environmental reviews, track printed in the RECORD, as follows: for both freight and passenger rail. It upgrades and restoration, highway-rail AMENDMENT provides $20-$25 billion in grants over grade crossing improvements and TITLE VIII—RAIL INFRASTRUCTURE TAX six years to States and State compacts eliminations, relocation of track, in- CREDIT BONDS for rail capital projects to provide for a frastructure and facilities, construc- SEC. 801. CREDIT TO HOLDERS OF QUALIFIED safe, secure, and efficient rail transpor- tion of intermodal facilities and pas- RAIL INFRASTRUCTURE BONDS. tation system. It enhances Federal and senger rail stations, tunnel and bridge (a) IN GENERAL.—Part IV of subchapter A State rail transportation policy, and it repairs, communication and signaling of chapter 1 of the Internal Revenue Code of promotes intermodal transportation improvements, environmental impact 1986 (relating to credits against tax) is investment. mitigation, acquisition of passenger amended by adding at the end the following ARRIVE–21 creates a non-profit Rail rail equipment, and security improve- new subpart: Infrastructure Finance Corporation ments. Projects to receive discre- ‘‘Subpart H—Nonrefundable Credit for Hold- (RIFCO) to issue $30 billion in tax-cred- tionary funding would be selected by ers of Qualified Rail Infrastructure Bonds it bonds over six years for the purpose RIFCO according to selection criteria ‘‘Sec. 54. Credit to holders of qualified rail of providing grants to States for cap- contained in the bill. The projects infrastructure bonds. ital investment in freight and pas- would require a 20 percent non-Federal ‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED senger rail infrastructure and facili- RAIL INFRASTRUCTURE BONDS. contribution paid to RIFCO for bond ‘‘(a) ALLOWANCE OF CREDIT.—In the case of ties. RIFCO will establish a trust ac- repayment. a taxpayer who holds a qualified rail infra- count made up of bond proceeds and ARRIVE–21 also directs the Federal structure bond on a credit allowance date of contributions from States that receive Railroad Administration to develop a such bond which occurs during the taxable RIFCO grants. Bond proceeds and State National Rail Plan and to work with year, there shall be allowed as a credit contributions in excess of the amount States in developing State rail plans, against the tax imposed by this chapter for required to maintain the trust account so that we have a comprehensive and such taxable year an amount equal to the will then be available for grants to the coordinated long-range plan for rail de- sum of the credits determined under sub- States through a competitive process. velopment for the whole country. The section (b) with respect to credit allowance Although my first choice would be to dates during such year on which the tax- bill also directs the Office of Intermod- payer holds such bond. fully fund the needs authorized in this alism in the Department of Transpor- ‘‘(b) AMOUNT OF CREDIT.— legislation by straight federal spend- tation to create a ‘‘50-Year Blueprint’’ ‘‘(1) IN GENERAL.—The amount of the credit ing, it has become clear that over the for the development of a national determined under this subsection with re- last thirty years that there is no pot of intermodal transportation system and spect to any credit allowance date for a gold at the end of the rainbow when it provide a vision of emerging trends and qualified rail infrastructure bond is 25 per- comes to Amtrak. There is not enough opportunities for the future of pas- cent of the annual credit determined with re- spect to such bond. money in the scant pot available for senger and freight rail transportation. discretionary spending on transpor- ‘‘(2) ANNUAL CREDIT.—The annual credit de- Before I close, I would be remiss if I termined with respect to any qualified rail tation programs. We have established did not recognize the work of Nancy infrastructure bond is the product of— dedicated trust funds for the airlines Lummens Lewis, a detailee from the ‘‘(A) the applicable credit rate, multiplied with their ticket taxes, and we have Federal Railroad Administration, who by the trust fund for the highways and has worked on the Commerce Com- ‘‘(B) the outstanding face amount of the transit programs which are funded mittee since January. We have appre- bond. through the gas tax, but when it comes ciated her professionalism, com- ‘‘(3) APPLICABLE CREDIT RATE.—For pur- to passenger railroads, there is no such petency, and her willingness to work poses of paragraph (2), the applicable credit revenue stream. The establishment of rate with respect to an issue is the rate, and share her time with us. I thank equal to an average market yield (as of the RIFCO was not my first choice to fi- Nancy for her time spent on this bill, day before the date of sale of the issue) on nance the publicly needed improve- as well as her efforts on the reauthor- outstanding long-term corporate debt obliga- ments of the railroad system, but it is ization of the Transportation Equity tions (determined under regulations pre- an option for the Congress to debate Act of the 21st Century, The Federal scribed by the Secretary). and consider as we attempt to address Railroad Safety Improvement Act, and ‘‘(4) CREDIT ALLOWANCE DATE.—For pur- what we need the rail system to do for The Surface Transportation Board Act poses of this section, the term ‘credit allow- this country. of 2003. We wish her well in her future ance date’ means— ‘‘(A) March 15, RIFCO is set up to assist the States endeavors. fund both passenger and freight ‘‘(B) June 15, ARRIVE–21 presents a smart and effi- ‘‘(C) September 15, and projects that benefit the public on a cient solution to a very important ‘‘(D) December 15. State, regional or national basis. State transportation dilemma. I am joined by Such term includes the last day on which the or State compacts may apply for several of my colleagues, including bond is outstanding. RIFCO funds for discretionary and for- Senators COLLINS, SPECTER, CARPER ‘‘(5) SPECIAL RULE FOR ISSUANCE AND RE- mula funds for capital projects in four and JEFFORDS, in introducing this bi- DEMPTION.—In the case of a bond which is categories: State Intercity Passenger partisan legislation. As we have passed issued during the 3-month period ending on a Rail Corridor Development, including legislation this week providing ap- credit allowance date, the amount of the equipment, stations, and facilities. proximately $15 billion annually for credit determined under this subsection with State Freight Rail Infrastructure De- aviation for the next 4 years, and plan respect to such credit allowance date shall velopment Projects, including capital be a ratable portion of the credit otherwise to take up a highway bill next year determined based on the portion of the 3- projects that primarily benefit freight which will spend $40 to $60 billion an- month period during which the bond is out- rail transportation. States may use a nually on highways and transit over standing. A similar rule shall apply when the percentage of these formula funds to six years, we must not leave rail out. It bond is redeemed. manage State rail programs. National is critical that the Senate take this ‘‘(c) LIMITATION BASED ON AMOUNT OF System Improvement Projects, includ- bill up, and pass it, to ensure that our TAX.—The credit allowed under subsection ing projects that significantly benefit railroad transportation system, espe- (a) for any taxable year shall not exceed the the national passenger rail system, cially our passenger rail system, can excess of— Amtrak-sponsored projects and North- ‘‘(1) the sum of the regular tax liability (as grow and develop to meet our current defined in section 26(b)) plus the tax imposed east Corridor projects. High Priority and future transportation needs. by section 55, over Projects, including projects with major Attached is an amendment that the ‘‘(2) the sum of the credits allowable under public policy benefits to the national sponsors of ARRIVE–21 intend to offer this part (other than this subpart and sub- rail system or significantly expand rail during floor consideration of the bill. I part C).

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‘‘(d) CREDIT INCLUDED IN GROSS INCOME.— ‘‘(1) IN GENERAL.—If any bond which when ture bond is held by a regulated investment Gross income includes the amount of the issued purported to be a qualified rail infra- company, the credit determined under sub- credit allowed to the taxpayer under this structure bond ceases to be such a qualified section (a) shall be allowed to shareholders section (determined without regard to sub- bond, the issuer shall pay to the United of such company under procedures prescribed section (e)) and the amount so included shall States (at the time required by the Sec- by the Secretary. be treated as interest income. retary) an amount equal to the sum of— ‘‘(6) REPORTING.—Issuers of qualified rail ‘‘(c) QUALIFIED RAIL, INFRASTRUCTURE ‘‘(A) the aggregate of the credits allowable infrastructure bonds shall submit reports BOND.—For purposes of this part, the term under this section with respect to such bond similar to the reports required under section ‘qualified rail infrastructure bond’ means (determined without regard to subsection 149(e).’’. any bond issued as part of an issue if— (c)) for taxable years ending during the cal- (b) AMENDMENTS TO OTHER CODE SEC- ‘‘(1) the bond is issued by the Rail Infra- endar year in which such cessation occurs TIONS.— structure Finance Corporation and is in reg- and the 2 preceding calendar years, and (1) REPORTING.—Subsection (d) of section istered form, ‘‘(B) interest at the underpayment rate 6049 of the Internal Revenue Code of 1986 (re- ‘‘(2) the term of each bond which is part of under section 6621 on the amount determined lating to returns regarding payments of in- such issue does not exceed 20 years, under subparagraph (A) for each calendar terest) is amended by adding at the end the ‘‘(3) the payment of principal with respect year for the period beginning on the first day following new paragraph: to such bond is the obligation of the Rail In- of such calendar year. ‘‘(8) REPORTING OF CREDIT ON QUALIFIED frastructure Finance Corporation and not an ‘‘(2) NONCULPABLE DISQUALIFICATIONS.—If a RAIL INFRASTRUCTURE BONDS.— obligation of the United States, qualified rail infrastructure bond ceases to ‘‘(A) IN GENERAL.—For purposes of sub- ‘‘(4) all proceeds from the sale of the issue qualify as such a bond due to action taken section (a), the term ‘interest’ includes are used for the purposes set forth in section by the recipient of a grant made under sec- amounts includible in gross income under 507(c)(5) of the Arrive 21 Act, and tion 601, 602, or 603 of the Arrive 21 Act, the section 54(d) and such amounts shall be ‘‘(5) 95 percent or more of the net spendable issuer may seek compensation under para- treated as paid on the credit allowance date proceeds from the sale of such issue are to be graph (1) of this subsection. (as defined in section 54(b)(4)). ‘‘(h) RAIL INFRASTRUCTURE FINANCE used for expenditures incurred after the date ‘‘(B) REPORTING TO CORPORATIONS, ETC.— of enactment of this section for any qualified TRUST.— Except as otherwise provided in regulations, ‘‘(i) IN GENERAL.—The following amounts project described in section 601, 602, or 603 of in the case of any interest described in sub- shall be held in a trust account by the Rail the Arrive 21 Act subject to the limitations paragraph (A), subsection (b)(4) shall be ap- established by that Act. Infrastructure Finance Corporation: ‘‘(A) An amount of the proceeds from the plied without regard to subparagraphs (A), ‘‘(f) SPECIAL RULES RELATING TO NET (H), (I), (J), (K), and (L)(i) of such subsection. SPENDABLE PROCEEDS.— sale of all bonds designated for purposes of this section that, when combined with ‘‘(C) REGULATORY AUTHORITY.—The Sec- ‘‘(1) IN GENERAL.—Subject to paragraph (2), retary may prescribe such regulations as are an issue shall be treated as meeting the re- amounts described in subparagraphs (B), (C), and (D), is sufficient— necessary or appropriate to carry out the quirements of this subsection if, as of 6 years purposes of this paragraph, including regula- after the date of issuance, the issuer reason- ‘‘(i) to ensure the Corporation’s ability to redeem all bonds upon maturity; and tions which require more frequent or more ably expects— detailed reporting.’’. ‘‘(A) to award grants under sections 501, ‘‘(ii) to pay the administrative expenses of (2) TREATMENT FOR ESTIMATED TAX PUR- 502, and 503 of the Arrive 21 Act in a total the Corporation and the Rail Infrastructure POSES.— amount that is at least 95 percent of the net Finance Trust. (A) INDIVIDUAL.—Section 6654 of such Code spendable proceeds of the issue for 1 or more ‘‘(B) The amount of any on-Federal con- (relating to failure by individual to pay esti- qualified projects within the 6-year period tributions required under section 604(b) of mated income tax) is amended by redesig- beginning on such date, the Arrive 21 Act. ‘‘(C) The temporary period investment nating subsection (m) as subsection (n) and ‘‘(B) to incur a binding commitment with a earnings on proceeds from the sale of such by inserting after subsection (l) the fol- third party— lowing new subsection: ‘‘(i) to spend at least 10 percent of the net bonds. ‘‘(D) Any earnings on any amounts de- spendable proceeds of the issue, or to com- ‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALI- scribed in subparagraph (A), (B), or (C). mence construction, with respect to such FIED RAIL INFRASTRUCTURE BONDS.—For pur- ‘‘(2) USE OF FUNDS.—Amounts in the trust projects within the 12-month period begin- poses of this section, the credit allowed by account may be used only for investment section 54 to a taxpayer by reason of holding ning on such date, and purposes to generate sufficient funds to re- ‘‘(ii) to proceed with due diligence to com- a qualified rail infrastructure bond on a deem qualified rail infrastructure bonds at credit allowance date shall be treated as if it plete such projects, and maturity and pay the administrative ex- ‘‘(C) to expend the total amount of the net were a payment of estimated tax made by penses of the Corporation and the Trust. spendable proceeds of the issue. the taxpayer on such date.’’. ‘‘(3) USE OF REMAINING FUNDS ON TRUST AC- ‘‘(2) RULES REGARDING CONTINUING COMPLI- (B) CORPORATE.—Section 6655 of such Code COUNT.—If the Corporation determines that ANCE AFTER 6-YEAR DETERMINATION.—If at (relating to failure by corporation to pay es- the amount in the trusts account exceeds the timated income tax) is amended by adding at least 95 percent of the net spendable proceeds amount required to comply with paragraph of the issue is not awarded as grants to be the end of subsection (g) the following new (2), the Corporation may transfer the excess paragraph: expended for 1 or more qualified projects to the Rail Infrastructure Investment ac- within the 6-year period beginning 6 years ‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI- count to be available for awarding grants as FIED RAIL INFRASTRUCTURE BONDS.—For pur- after the date of issuance, but the require- provided for in section 507(c)(5)(B) of the Ar- ments of paragraph (1) are otherwise met, an poses of this section, the credit allowed by rive 21 Act. section 54 to a taxpayer by reason of holding issue shall be treated as continuing to meet ‘‘(4) REVERSION OF REMAINING PROCEEDS.— the requirements of paragraph (1) if either a qualified rail infrastructure bond on a Upon retirement of all bonds issued by the credit allowance date shall be treated as if it the requirement under subparagraph (A) or Corporation, any remaining proceeds from the requirements under subparagraph (B) are were a payment of estimated tax made by the sale of such bonds shall be covered into the taxpayer on such date.’’. met, as follows: the general fund of the Treasury of the ‘‘(A) The issuer uses all unspent proceeds (c) CLERICAL AMENDMENTS.— United States as miscellaneous receipts. (1) The table of subparts for part IV of sub- from the sale of the issue to redeem bonds of ‘‘(i) OTHER DEFINITIONS AND SPECIAL chapter A of chapter 1 is amended by adding the issue within 90 days after the end of such RULES.—For purposes of this section— at the end the following new item: 6-year period and disburses any remaining ‘‘(1) BOND.—The term ‘bond’ includes any net spendable proceeds to the Secretary of obligation. ‘‘Subpart H. Nonrefundable Credit for Hold- Treasury within 30 days after the end of such ‘‘(2) NET SPENDABLE PROCEEDS.—The terms ers of Qualified Rail Infrastruc- 6-year period. ‘net spendable proceeds’ has the meaning ture Bonds.’’. ‘‘(B) The issuer— give such term in section 507(c)(6) of the Ar- (2) Section 6401(b)(1) is amended by strik- ‘‘(i) awards in grants under sections 501, rive 21 Act. ing ‘‘and G’’ and inserting ‘‘G, and H’’. 502, and 503 of the Arrive 21 Act at least 75 ‘‘(3) QUALIFIED PROJECT.—The term ‘quali- SEC. 802. ISSUANCE OF REGULATIONS. percent of the net spendable proceeds of the fied project’ means any project that is eligi- The Secretary of the Treasury shall issue issue for 1 or more qualified projects within ble for grant funding under section 601, 602, regulations required under section 54 of the the 6-year period beginning 6 years after the or 603 of the Arrive 21 Act. date of issuance, and ‘‘(4) PARTNERSHIP; S CORPORATION; AND Internal Revenue Code of 1986 not later than ‘‘(ii) awards in grants under sections 501, OTHER PASS-THRU ENTITIES.—Under regula- 90 days after the date of the enactment of 502, and 503 of the Arrive 21 Act at least 95 tions prescribed by the Secretary, in the case this Act. percent of the net spendable proceeds of the of a partnership, trust, S corporation, or SEC. 803. EFFECTIVE DATE. issue for 1 or more qualified projects within other pass-thru entity, rules similar to the The amendments made by section 701 shall the 7-year period beginning 6 years after the rules of section 41(g) shall apply with respect apply to obligations issued after the date of date of issuance. to the credit allowable under subsection (a). enactment of this Act. ‘‘(g) RECAPTURE OF PORTION OF CREDIT (5) BONDS HELD BY REGULATED INVESTMENT On page 3, at the end of the matter appear- WHERE CESSATION OF COMPLIANCE.— COMPANIES.—If any qualified rail infrastruc- ing before line 1, insert the following:

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TITLE VIII—RAIL INFRASTRUCTURE TAX TITLE VI—RAIL DEVELOPMENT GRANT (b) CONSULTATION; USE OF EXISTING RE- CREDIT BONDS PROGRAMS SOURCES.—In carrying out the assessment re- Sec. 801. Credit to holders of qualified rail in- Sec. 601. Intercity passenger rail develop- quired by subsection (a), the Secretary shall frastructure bonds. ment grant program. consult with rail management, rail labor, fa- Sec. 802. Issuance of regulations. Sec. 602. Freight rail infrastructure develop- cility owners and operators, and public safe- Sec. 803. Effective date. ment grant program. ty officials (including officials responsible S. 1961 Sec. 603. High priority projects grant pro- for responding to emergencies). (C) REPORT.— Be it enacted by the Senate and House of Rep- gram. Sec. 604. Grant program requirements and (1) CONTENTS.—Within 180 days after the resentatives of the United States of America in date of enactment of this Act, the Secretary Congress assembled, limitations. Sec. 605. Standards and conditions. shall transmit to the Senate Committee on SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 606. Grant program funding. Commerce, Science, and Transportation and (a) SHORT TITLE.—This Act may be cited as the House of Representatives Committee on TITLE VII—AUTHORIZATION OF the ‘‘American Railroad Revitalization, In- Transportation and Infrastructure a report, APPROPRIATIONS vestment, and Enhancement Act of the 21st without compromising national security, Century’’ or the ‘‘Arrive 21 Act’’. Sec. 701. Authorization of Appropriations. containing the assessment and prioritized (b) TABLE OF CONTENTS.—The table of con- SEC. 2. AMENDMENT OF TITLE 49, UNITED recommendations required by subsection (a). tents for this Act is as follows: STATES CODE. (2) FORMAT.—The Secretary may submit Sec. 1. Short title; table of contents. Except as otherwise expressly provided, the report in both classified and redacted Sec. 2. Amendment of title 49, United States whenever in this Act an amendment or re- formats if the Secretary determines that Code. peal is expressed in terms of an amendment such action is appropriate or necessary. Sec. 3. Purposes. to, or a repeal of, a section or other provi- (d) AUTHORIZATION OF APPROPRIATIONS.— TITLE I—RAIL TRANSPORTATION sion, the reference shall be considered to be There are authorized to be appropriated to SECURITY made to a section or other provision of title the Secretary $515,000,000 for fiscal year 2004 49, United States Code. to carry out this section, implement the Sec. 101. Rail transportation security risk measures contained in the Secretary’s assessment. SEC. 3. PURPOSES. Sec. 102. Certain personnel limitations not to The purposes of this Act are— prioritized recommendations, and award apply. (1) to ensure more adequate financing of grants for purposes identified in the assess- infrastructure projects for the national rail ment in subsection (a), such sums to remain TITLE II—FEDERAL RAIL POLICY transportation system through— available until expended. Sec. 201. Federal rail policy enhancement. (A) the establishment of the nonprofit Rail SEC. 102. CERTAIN PERSONNEL LIMITATIONS Sec. 202. Rail cooperative research program. Infrastructure Finance Corporation to pro- NOT TO APPLY. Sec. 203. State rail plans. vide financial support for rail infrastructure Any statutory limitation on the number of Sec. 204. Interstate railroad passenger high- improvement projects by issuing qualified employees in the Transportation Security speed transportation policy. rail transportation bonds; and Administration of the Department of Trans- Sec. 205. High-speed rail corridor planning. (B) the provision of appropriate tax treat- portation, before or after its transfer to the Sec. 206. Designated high-speed rail cor- ment of qualified rail transportation bonds Department of Homeland Security, does not ridors. so issued; apply to the extent that any such employees Sec. 207. Rehabilitation, improvement, and (2) to create a partnership between public are responsible for implementing the provi- security financing. and private entities to promote freight and sions of this Act. Sec. 208. Repayment of loan to National passenger rail infrastructure development TITLE II—FEDERAL RAIL POLICY Railroad Passenger Corpora- that benefits the public; tion. SEC. 201. FEDERAL RAIL POLICY ENHANCEMENT (3) to provide resources to States and Section 103 is amended to read as follows: TITLE III—INTERMODAL POLICY groups of States for rail capital projects that Sec. 301. 50–year intermodal blueprint. result in a safe, secure, and efficient rail ‘‘§ 103. Federal Railroad Administration Sec. 302. Intermodal transportation policy. transportation system; ‘‘(a) IN GENERAL.—The Federal Railroad TITLE IV—AMTRAK AUTHORIZATIONS (4) to enhance Federal and State rail trans- Administration is an administration in the portation policy and planning; Department of Transportation. Sec. 401. National Railroad Passenger Trans- (5) to promote intermodal transportation ‘‘(b) ADMINISTRATOR.—The head of the Ad- portation system defined. investment, planning, and coordination; and ministration is the Administrator who is ap- Sec. 402. Restructuring of long-term debt and (6) to reauthorize the National Railroad pointed by the President, by and with the ad- capital leases. Passenger Corporation and reaffirm the Fed- vice and consent of the Senate. The Adminis- Sec. 403. General Amtrak authorizations. trator reports directly to the Secretary of Sec. 404. Excess railroad retirement. eral commitment to a national system of intercity passenger 19l transportation. Transportation. Sec. 405. Authorizations for environmental ‘‘(c) SAFETY.—To carry out all railroad TITLE I—RAIL TRANSPORTATION compliance and station im- safety laws of the United States, the Admin- SECURITY provements. istration is divided on a geographical basis Sec. 406. Tunnel life safety. SEC. 101. RAIL TRANSPORTATION SECURITY RISK into at least 8 safety offices. The Secretary Sec. 407. Authorization for capital and oper- ASSESSMENT. of Transportation is responsible for all acts ating expenses. (a) IN GENERAL.— taken under those laws and for ensuring that Sec. 408. Establishment of grant process. (1) ASSESSMENT.—The Secretary of Home- the laws are uniformly administered and en- Sec. 409. State-supported routes. land Security, in consultation with the Sec- forced among the safety offices. Sec. 410. Re-establishment of Northeast Cor- retary of Transportation, shall assess the se- ‘‘(d) POWERS AND DUTIES.— ridor Safety Committee. curity risks associated with freight and ‘‘(1) IN GENERAL.—The Administrator shall Sec. 411. Amtrak board of directors. intercity passenger rail transportation and carry out— Sec. 412. Establishment of financial account- develop prioritized recommendations for— ‘‘(A) the duties and powers related to rail ing system for Amtrak oper- (A) improving the security of rail infra- road safety vested in the Secretary by sec- ations by independent auditor. structure and facilities, terminals, tunnels, tion 20134(c) and chapters 203 through 211 of Sec. 413. Development of 5-year financial rail bridges, rail switching areas, and other this title, and chapter 213 of this title in car- plan. areas identified by the Secretary as posing rying out chapters 203 through 211; Sec. 414. Independent auditor to establish significant rail-related risks to public safety ‘‘(B) the duties and powers related to rail- methodologies for Amtrak and the movement of interstate commerce, road policy and development under sub- route and service planning deci- taking into account the impact that any pro- section (e); and sions. posed security measure might have on the ‘‘(C) any additional duties and powers pre- Sec. 415. Metrics and standards. provision of rail service; scribed by the Secretary. Sec. 416. On-time performance. (B) deploying chemical and biological ‘‘(2) TRANSFERS.—A duty or power specified TITLE V—RAIL INFRASTRUCTURE weapon detection equipment; by paragraph (1)(A) of this subsection may be FINANCE CORPORATION (C) training employees in terrorism re- transferred to another part of the Depart- Sec. 501. Establishment of corporation. sponse activities; and ment only when specifically provided by law Sec. 502. Board of directors. (D) identifying the immediate and long- or a reorganization plan submitted under Sec. 503. Officers and employees. term economic impact of measures that may chapter 9 of title 5. A decision of the Admin- Sec. 504. Nonprofit and nonpolitical nature of be required to address those risks. istrator in carrying out those duties or pow- the corporation. (2) EXISTING PRIVATE AND PUBLIC SECTOR ers and involving notice and hearing re- Sec. 505. Purpose and activities of corpora- EFFORTS.—The assessment shall include a re- quired by law is administratively final. tion. view of any actions already taken or pro- ‘‘(3) CONTRACTS, GRANTS, LEASES, COOPERA- Sec. 506. Report to Congress. spective actions necessary to address identi- TIVE AGREEMENTS, AND SIMILAR TRANS- Sec. 507. Administrative matters. fied security issues by both public and pri- ACTIONS.—Subject to the provisions of sub- Sec. 508. Rail Infrastructure Finance Trust. vate entities. title I of title 40 and title III of the Federal

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00109 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15990 CONGRESSIONAL RECORD — SENATE November 25, 2003 Property and Administrative Services Act of ‘‘(1) address, among other matters, inter- ‘‘(C) representatives of Amtrak, the Alaska 1949 (41 U.S.C. 251 et seq.), the Secretary of city rail passenger and freight rail services, Railroad, freight railroads, transit operating Transportation may make, enter into, and including existing rail passenger and freight agencies, intercity rail passenger agencies, perform such contracts, grants, leases, coop- technologies and speeds, incrementally en- railway labor organizations, and environ- erative agreements, and other similar trans- hanced rail systems and infrastructure, and mental organizations. actions with Federal or other public agencies new high-speed wheel-on-rail systems and ‘‘(d) NATIONAL ACADEMY OF SCIENCES.—The (including State and local governments) and rail security; Secretary may make grants to, and enter private organizations and persons, and make ’’(2) address ways to expand the transpor- into cooperative agreements with, the Na- such payments, by way of advance or reim- tation of international trade traffic by rail, tional Academy of Sciences to carry out bursement, as the Secretary may determine enhance the efficiency of intermodal inter- such activities relating to the research, tech- to be necessary or appropriate to carry out change at ports and other intermodal termi- nology, and technology transfer activities functions of the Federal Railroad Adminis- nals, and increase capacity and availability described in subsection (b) as the Secretary tration. The authority of the Secretary of rail service for seasonal freight needs; deems appropriate.’’. granted by this paragraph shall be carried ‘‘(3) consider research on the interconnect- (2) CLERICAL AMENDMENT.—The chapter out by the Administrator. edness of commuter rail, passenger rail, analysis for chapter 249 is amended by add- ‘‘(e) ADDITIONAL DUTIES OF THE ADMINIS- freight rail, and other rail networks; and ing at the end the following: TRATOR.—The Administrator shall— ‘‘(4) give consideration to regional con- ‘‘24910. Rail cooperative research program’’. ‘‘(1) provide assistance to States in devel- cerns regarding rail passenger and freight (b) AUTHORIZATION OF APPROPRIATIONS.— oping State rail plans prepared under section transportation, including meeting research There are authorized to be appropriated to 22501 and review all State rail plans sub- needs common to designated high-speed cor- mitted under such section 22501; the Secretary of Transportation $5,000,000 for ridors, long-distance rail services, and re- each of fiscal years 2004 through 2009 to carry ‘‘(2) develop a long range national rail plan gional intercity rail corridors, projects, and that is consistent with approved State rail out the rail cooperative research program entities. under section 24910 of title 49, United States plans, the 50-year Intermodal Blueprint de- ‘‘(b) CONTENT.—The program to be carried Code. veloped under section 5503(e), and the rail out under this section shall include research needs of the Nation, as determined by the designed— SEC. 203. STATE RAIL PLANS. Secretary in order to promote an integrated, ‘‘(1) to identify the unique aspects and at- (a) IN GENERAL.—Part B of subtitle V is cohesive, efficient, and optimized national tributes of rail passenger and freight service; amended by adding at the end the following: rail system for the movement of goods and ‘‘(2) to develop more accurate models for ‘‘CHAPTER 225—STATE RAIL PLANS AND people; evaluating the impact of rail passenger and HIGH PRIORITY PROJECTS ‘‘(3) develop a preliminary national rail freight service, including the effects on high- ‘‘Sec. plan within a year after the date of enact- way and airport and airway congestion, envi- ‘‘22501. Authority ment of the Arrive 21 Act; ronmental quality, and energy consumption; ‘‘22502. Purposes ‘‘(4) develop and enhance partnerships with ‘‘(3) to develop a better understanding of ‘‘22503. Transparency; coordination; review the freight and passenger railroad industry, modal choice as it affects rail passenger and ‘‘22504. Content States, and the public concerning rail devel- freight transportation, including develop- ‘‘22505. Approval opment;– ment of better models to predict utilization; ‘‘22506. High priority projects ‘‘(5) support rail intermodal development ‘‘(4) to recommend priorities for tech- ‘‘22507. Definitions and high-speed rail development, including nology demonstration and development; ‘‘§ 22501. Authority high speed rail planning under section 205; ‘‘(5) to meet additional priorities as deter- ‘‘(a) IN GENERAL.—Each State may prepare ‘‘(6) ensure that programs and initiatives mined by the advisory board established and maintain a State rail plan in accordance developed under this section benefit the pub- under subsection (c), including any rec- with the provisions of this chapter. lic and work toward achieving regional and ommendations made by the National Re- ‘‘(b) REQUIREMENTS.—For the preparation national transportation goals; and search Council; and periodic revision of a State rail plan, a ‘‘(7) facilitate and coordinate efforts to as- ‘‘(6) to explore improvements in manage- State shall— sist freight and passenger rail carriers, tran- ment, financing, and institutional struc- ‘‘(1) establish or designate a State rail sit agencies and authorities, municipalities, tures; transportation authority to prepare, main- and States in passenger-freight service inte- ‘‘(7) to address rail capacity constraints tain, coordinate, and administer the plan; gration on shared rights of way by providing that affect passenger and freight rail service ‘‘(2) establish or designate a State rail plan neutral assistance at the joint request of af- through a wide variety of options, ranging approval authority to approve the plan; fected rail service providers and infrastruc- from operating improvements to dedicated ‘‘(3) submit the State’s approved plan to ture owners relating to operations and ca- new infrastructure, taking into account the the Secretary of Transportation for ap- pacity analysis, capital requirements, oper- impact of such options on operations; proval; and ating costs, and other research and planning ‘‘(8) to improve maintenance, operations, ‘‘(4) revise and resubmit a State-approved related to corridors shared by passenger or customer service, or other aspects of inter- plan no less frequently than once every 5 commuter rail service and freight rail oper- city rail passenger and freight service; years for reapproval by the Secretary. ations. ‘‘(9) to recommend objective methodologies ‘‘§ 22502. Purposes ‘‘(f) PERFORMANCE GOALS AND REPORTS.— for determining intercity passenger rail ‘‘(1) PERFORMANCE GOALS.—In conjunction ‘‘(a) PURPOSES.—The purposes of a State routes and services, including the establish- with the objectives established and activities rail plan are as follows: ment of new routes, the elimination of exist- undertaken under section 103(e) of this title, ‘‘(1) To set forth State policy involving ing routes, and the contraction or expansion the Administrator shall develop a schedule freight and passenger rail transportation, in- of services or frequencies over such routes; cluding commuter rail operations, in the for achieving specific, measurable perform- ‘‘(10) to review the impact of equipment ance goals. State. and operational safety standards on the fur- ‘‘(2) RESOURCE NEEDS.—The strategy and ‘‘(2) To establish the period covered by the ther development of high speed passenger annual plans shall include estimates of the State rail plan. rail operations connected to or integrated funds and staff resources needed to accom- ‘‘(3) To present priorities and strategies to with non-high speed freight or passenger rail plish each goal and the additional duties re- preserve, enhance, or expand rail service in operations; and quired under section 103(e). the State that benefits the public. ‘‘(11) to recommend any legislative or reg- ‘‘(3) SUBMISSION WITH PRESIDENT’S BUDG- ‘‘(4) To serve as the basis for Federal and ulatory changes necessary to foster further ET.—Beginning with fiscal year 2005 and each State rail investments within the State. fiscal year thereafter, the Secretary shall development and implementation of high ‘‘(b) COORDINATION.—A State rail plan shall submit to Congress, at the same time as the speed passenger rail operations while ensur- be coordinated with other State transpor- President’s budget submission, the Adminis- ing the safety of such operations that are tation planning goals and programs and set tration’s performance goals and schedule de- connected to or integrated with non-high forth rail transportation’s role within the veloped under paragraph (1), including an as- speed freight or passenger rail operations. State transportation system. ‘‘(c) ADVISORY BOARD.— sessment of the progress of the Administra- ‘‘(1) ESTABLISHMENT.—In consultation with ‘‘§ 22503. Transparency; coordination; review tion toward achieving its performance the heads of appropriate Federal depart- ‘‘(a) PREPARATION.—A State shall provide goals.’’. ments and agencies, the Secretary shall es- adequate and reasonable notice and oppor- SEC. 202. RAIL COOPERATIVE RESEARCH PRO- tablish an advisory board to recommend re- tunity for comment and other input to the GRAM. search, technology, and technology transfer public, rail carriers, commuter and transit (a) REQUIREMENT FOR PROGRAM.— activities related to rail passenger and authorities operating in, or affected by rail (1) ESTABLISHMENT AND CONTENT.—Chapter operations within the State, units of local 249 is amended by adding at the end the fol- freight transportation. ‘‘(2) MEMBERSHIP.—The advisory board government, and other interested parties in lowing: shall include— the preparation and review of its State rail ‘‘§ 24910. Rail cooperative research program ‘‘(A) representatives of State transpor- plan. ‘‘(a) IN GENERAL.—The Secretary shall es- tation agencies; ‘‘(b) INTERGOVERNMENTAL COORDINATION.— tablish and carry out a rail cooperative re- ‘‘(B) transportation and environmental A State shall review the freight and pas- search program. The program shall— economists, scientists, and engineers; and senger rail service activities and initiatives

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00110 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15991 by regional planning agencies, regional State, including logistics and process im- ‘‘(3) the content of the plan is coordinated transportation authorities, and municipali- provements. with— ties within the State, or in the region in ‘‘(10) A review of publicly funded projects ‘‘(A) State transportation plans developed which the State is located, while preparing within the State to improve rail transpor- pursuant to the requirements of section 135 the plan, and shall include any recommenda- tation safety and security, including all of title 23; and tions made by such agencies, authorities, major projects funded under section 130 of ‘‘(B) the national rail plan, the 50-year and municipalities as deemed appropriate by title 23. intermodal blueprint developed under sec- the State. ‘‘(11) A performance evaluation of pas- tion 5503(e) of this title, (if either is avail- ‘‘(c) ANNUAL REVIEWS.—Each State shall senger rail services operating in the State, able) and any other transportation plan of transmit an annual report on its plan to the including possible improvements in those the Federal Government that is required by Secretary of Transportation. The report services, and a description of strategies to law deemed relevant by the Secretary. shall include, for the year preceding the year achieve those improvements. ‘‘(b) PROCEDURES FOR STATE RAIL PLAN in which submitted, the following matters: ‘‘(12) A compilation of studies and reports SUBMISSION AND APPROVAL.—The Secretary ‘‘(1) A review of progress made, and actions on high-speed rail corridor development shall prescribe procedures for States to sub- taken, under the plan during the year, in- within the State not included in a previous mit State rail plans for review under this cluding an update on the budget, schedule, plan under this chapter, and a plan for fund- title, including standardized format and data and financing for each project on the freight ing any recommended development of such requirements and procedures for resubmittal or passenger rail capital project list com- corridors in the State. if a State rail plan is disapproved. The proce- piled under section 22504(a) of this title. ‘‘(13) A statement that the State is in com- dures shall provide for the Secretary to re- ‘‘(2) Any modifications made in the plan pliance with the requirements of section view a State rail plan and issue a record of after approval of the plan by the Secretary 22102. decision of approval or disapproval, with or after the submission of the most recent ‘‘(b) LONG-RANGE SERVICE AND INVESTMENT comment, on such plan within 180 days after annual report on the plan to the Secretary, PROGRAM.— the plan is submitted. including any modifications made to the pri- ‘‘(1) PROGRAM CONTENT.—A long-range rail ‘‘§ 22506. High priority projects ority freight or passenger rail capital list re- service and investment program included in ‘‘(a) DESIGNATION OF PROJECTS.—In review- quired by section 22504(b). a State rail plan under subsection (a)(5) shall ing State rail plans, the Secretary of Trans- ‘‘(d) APPROVAL OF MODIFIED PLANS.—Modi- include the following matters: fications of a State rail plan that are deter- ‘‘(A) Two ranked lists for rail capital portation may designate as a high priority mined substantive by the Secretary, includ- projects, 1 for freight rail capital projects project any project submitted by a State or ing any modification to a priority freight or and 1 for intercity passenger rail capital group of States that meets both of the fol- passenger rail capital project list required by projects. lowing criteria: ‘‘(1) The project focuses on key rail conges- section 22504(b), is subject to approval (for ‘‘(B) A detailed funding plan for the tion points that are— the purposes of this chapter) by the Sec- projects. ‘‘(A) selected by the Secretary on the basis retary. ‘‘(2) PROJECT LIST CONTENT.—The ranked of national benefits to the rail transpor- ‘‘§ 22504. Content list of freight and intercity passenger rail capital projects shall contain— tation system; and ‘‘(a) IN GENERAL.—Each State rail plan ‘‘(A) a description of the anticipated public ‘‘(B) coordinated with the national rail shall contain the following: plan, if that plan is available. ‘‘(1) An evaluation of the existing overall and private benefits of each such project; and ‘‘(B) a statement of the correlation be- ‘‘(2) The project is on a ranked list of pri- rail transportation system and rail services ority freight and passenger rail capital and facilities within the State, a tween— ‘‘(i) public funding contributions for the projects that is included in a State rail plan prioritization of such services and facilities projects; and under section 22504(a)(5) of title 49, United in terms of their contributions to the State’s ‘‘(ii) the public benefits. States Code, unless this criterion is waived rail and transportation system. ‘‘(3) CONSIDERATIONS FOR PROJECT LIST.—In by the Secretary. ‘‘(2) A comprehensive review of all rail preparing the ranked list of freight and ‘‘(b) PREFERRED PROJECTS.—The Secretary, lines within the State, including proposed intercity passenger rail capital projects, a in designating high priority projects, shall high speed rail corridors and significant rail State rail transportation authority shall give preference to— line segments not currently in service, con- take into consideration the following mat- ‘‘(1) projects that have national signifi- taining an overview of the transportation ters: cance for— services provided by those lines, their owner- ‘‘(A) Contributions made by non-Federal ‘‘(A) improving the national rail network ship, operating characteristics, and the gen- and non-State sources through user fees, and the Nation’s transportation system; eral state of their infrastructure. ‘‘(B) ensuring particularly high levels of matching funds, or other private capital in- ‘‘(3) A statement of the State’s freight and safety; volvement. passenger rail service objectives, including ‘‘(C) increasing intermodal connectivity by ‘‘(B) Rail capacity and congestion effects. minimum service levels, for rail transpor- providing or improving direct connections ‘‘(C) Effects to highway, aviation, and mar- tation routes in the State. between rail facilities and other modes of itime capacity, congestion, or safety. ‘‘(4) A general analysis of rail’s transpor- transportation; tation, economic, and environmental im- ‘‘(D) Regional balance. ‘‘(E) Environmental impact. ‘‘(D) significantly improving highway, pacts in the State, including congestion ‘‘(F) Competitive and service impacts for aviation, or maritime capacity, congestion, mitigation, trade and economic develop- rail carriers and shippers. or safety; ment, air quality, land-use, energy-use, and ‘‘(G) Preservation of rail service. ‘‘(E) improving intercity passenger rail community impacts. ‘‘(H) Economic and employment impacts. service by increasing ridership, reducing trip ‘‘(5) A long-range rail service and invest- ‘‘(I) Projected ridership and other service time, or other significant enhancements; ment program for current and future freight measures for passenger rail projects. ‘‘(F) improving both intercity passenger and passenger services in the State that ‘‘(c) WAIVER.—The Secretary may waive rail and freight rail services simultaneously; meets the requirements of subsection (b). any requirement of subsection (a) upon ap- ‘‘(G) enhancing freight rail service for ‘‘(6) A statement of public financing issues plication under circumstances that the Sec- shippers; for rail projects and service in the State, in- retary determines appropriate. ‘‘(H) causing positive economic and em- cluding a list of current and prospective cap- ployment results; ital and operating funding resources, public § 22505. Approval ‘‘(I) producing significant environmental subsidies, State taxation, and other financial ‘‘(a) CRITERIA.—The Secretary may ap- or community benefits; policies relating to rail service and rail in- prove a State rail plan for the purposes of ‘‘(J) having received financial commit- frastructure development. this chapter if— ments and other support from non-Federal ‘‘(7) A statement of rail service issues ‘‘(1) the plan meets all of the requirements entities such as States, local governments, within the State, such as congestion and ca- applicable to State plans under this chapter; or private entities; pacity, and current system deficiencies on a ‘‘(2) for each ready-to-commence project ‘‘(K) enhancing international trade; regional, intrastate, and interstate basis, listed on the ranked list of freight and inter- ‘‘(L) enhancing national security; or that reflects consultation with neighboring city passenger rail capital projects under the ‘‘(M) employing positive train control States and describes any coordination of re- plan— technologies; and gional rail service. ‘‘(A) the project meets all safety and envi- ‘‘(2) projects that are at the stage of prepa- ‘‘(8) A review of major passenger and ronmental requirements including those pre- ration that all pre-commencement compli- freight intermodal rail connections and fa- scribed under the National Environmental ance with environmental protection require- cilities within the State, including seaports, Policy Act of 1969 (42 U.S.C. 4331 et seq.) that ments has been completed and the projects and prioritized options to maximize service are applicable to the project under law; and are ready to commence. integration and efficiency between rail and ‘‘(B) the State has entered into an agree- ‘‘(c) REGIONAL BALANCE AND COMPAT- other modes of transportation within the ment with any owner of rail infrastructure IBILITY.—The Secretary, in designating high State. or right of way directly affected by the priority projects, shall ensure that— ‘‘(9) A description of new technology that project that provides for the State to pro- ‘‘(1) the geographic distribution of the des- relates to rail transportation within the ceed with the project; and ignated high priority projects is balanced

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among the geographic regions of the United ‘‘(1) IN GENERAL.—The Secretary of Trans- following shall be considered to be des- States and a disproportionated number of portation shall provide planning assistance ignated high-speed rail corridors: such projects is not concentrated in a single to States or group of States and other public (1) California Corridor connecting the San State; and agencies promoting the development of high- Francisco Bay area and Sacramento to Los ‘‘(2) all projects are— speed rail corridors designated by the Sec- Angeles and San Diego. ‘‘(A) compatible with State transportation retary under section 104(d) of title 23. The (2) Chicago Hub Corridor Network with the plans developed pursuant to the require- Secretary shall establish an application and following spokes: ments of section 135 of title 23; and qualification process for applicants eligible (A) Chicago to Detroit. ‘‘(B) carried out in conformance with the for assistance under this section. (B) Chicago to Minneapolis/St. Paul, Min- national rail plan. ‘‘(2) SECRETARY MAY PROVIDE DIRECT OR FI- nesota, via Milwaukee, Wisconsin. ‘‘(d) ADDITIONAL PROJECTS.—The Secretary NANCIAL ASSISTANCE.—The Secretary may (C) Chicago to Kansas City, Missouri, via may designate projects submitted to the Of- provide planning assistance under paragraph Springfield, Illinois, and St. Louis, Missouri. fice by the National Railroad Passenger Cor- (1) directly or by providing financial assist- (D) Chicago to Louisville, Kentucky, via poration, either independently or in conjunc- ance to a public agency or group of public Indianapolis, Indiana, and Cincinnati, Ohio. tion with a State or group of States, as a agencies to undertake planning activities ap- (E) Chicago to Cleveland, Ohio, via Toledo, high priority project. Any such projects shall proved by the Secretary. Twenty percent of Ohio. (F) Cleveland, Ohio, to Cincinnati, Ohio, be subject to the same designation and selec- the publicly financed planning costs associ- via Columbus, Ohio. tion criteria as apply under this section, ex- ated with projects assisted under this chap- (3) Empire State Corridor from New York cept the criteria set forth in subsections ter shall come from non-Federal sources. City, New York, through Albany, New York, (a)(2) and (c)(2) of this section. State matching contributions may not be de- to Buffalo, New York. ‘‘§ 22507. Definitions rived, directly or indirectly, from Federal (4) Florida High-Speed Rail Corridor from ‘‘In this chapter: funds. Tampa through Orlando to Miami. ‘‘(d) RECORD OF DECISION.—Upon comple- ‘‘(1) PRIVATE BENEFIT.—The term ‘private (5) Gulf Coast Corridor from Houston benefit’ means a benefit accrued to a person tion of planning activities funded under this Texas, through New Orleans, Louisiana, to or private entity, other than the National section, the Secretary shall make a rec- Mobile, Alabama, with a branch from New Railroad Passenger Corporation, that di- ommendation on the record of whether to Orleans, through Meridian, Mississippi, and rectly improves the economic and competi- proceed with the implementation of the cor- Birmingham, Alabama, to Atlanta, Georgia. tive condition of that person or entity ridor.’’. (6) Keystone Corridor from Philadelphia, (b) CONFORMING AND OTHER AMENDMENTS TO through improved assets, cost reductions, Pennsylvania, through Harrisburg, Pennsyl- SECTION 26101.—Section 26101 is further service improvements, or any other means as vania, to Pittsburgh, Pennsylvania. amended— defined by the Secretary. The Secretary may (7) Northeast Corridor from Washington, (1) by striking subsection (c)(2) and insert- seek the advice of the states and rail carriers District of Columbia, through New York ing the following: City, New York, New Haven, Connecticut, in further defining this term.xxx ‘‘(2) the extent to which the proposed plan- ‘‘(2) PUBLIC BENEFIT.—The term ‘public and Providence, Rhode Island, to Boston, ning focuses on high-speed rail systems, giv- benefit’ means a benefit accrued to the pub- Massachusetts, with a branch from New ing a priority to systems which will achieve lic in the form of enhanced mobility of peo- Haven, Connecticut, to Springfield, Massa- sustained speeds of 125 miles per hour or ple or goods, environmental protection or en- chusetts. greater and projects involving dedicated rail hancement, congestion mitigation, enhanced (8) New England Corridor from Boston, passenger rights-of-way;’’; Massachusetts, to Portland and Auburn, trade and economic development, improved (2) by inserting ‘‘and’’ after the semicolon air quality or land use, more efficient energy Maine, and from Boston, Massachusetts, in subsection (c)(12); through Concord, New Hampshire, and Mont- use, enhanced public safety or security, re- (3) by striking ‘‘completed; and’’ in sub- pelier, Vermont, to Montreal, Quebec. duction of public expenditures due to im- section (c)(13) and inserting ‘‘completed.’’; proved transportation efficiency or infra- (9) Pacific Northwest Corridor from Eu- and gene, Oregon; through Portland, Oregon, and structure preservation, and any other posi- (4) by striking subsection (c)(14). Seattle, Washington, to Vancouver, British tive community effects as defined by the (c) CONFORMING AMENDMENT.—Section Columbia. Secretary. The Secretary make seek the ad- 26105(2)(A) is amended by striking ‘‘more (10) South Central Corridor from San Anto- vice of the States and rail carriers in further than 125 miles per hour;’’ and inserting ‘‘90 nio, Texas, through Dallas/Fort Worth to defining this term. miles per hour or more;’’. Little Rock, Arkansas, with a branch from ‘‘(3) STATE.—The term ‘State’ means any of (d) FINANCIAL ASSISTANCE TO INCLUDE Dallas/Fort Worth through Oklahoma City, the 50 States and the District of Columbia. LOANS AND LOAN GUARANTEES—.Section Oklahoma, to Tulsa, Oklahoma. ‘‘(4) STATE RAIL TRANSPORTATION AUTHOR- 26105(1) is amended by inserting ‘‘loans, loan (11) Southeast Corridor from Washington, ITY.—The term ‘State rail transportation au- guarantees,’’ after ‘‘contracts,’’. District of Columbia, through Richmond, thority’ means the State agency or official (e) SPECIAL TRANSPORTATION CIR- Virginia, Raleigh, North Carolina, Columbia, responsible under the direction of the Gov- CUMSTANCES.—Section 26101 is amended by South Carolina, Savannah, Georgia, and ernor of the State or a State law for prepara- adding at the end the following: Jessup, Georgia, to Jacksonville, Florida, tion, maintenance, coordination, and admin- ‘‘(d) SPECIAL TRANSPORTATION CIR- with— istration of the State rail plan.’’. CUMSTANCES.—In carrying out this section, (A) a branch from Raleigh, North Carolina, (b) CLERICAL AMENDMENT.—The table of the Secretary shall allocate an appropriate through Charlotte, North Carolina, and chapters for subtitle V is amended by insert- portion of the amounts available for plan- Greenville, South Carolina, to Atlanta, Geor- ing after the item relating to chapter 223 the ning assistance to providing appropriate gia; a branch from Richmond, to Hampton following: transportation-related assistance in any Roads/Norfolk, Virginia; ‘‘225. STATE RAIL PLANS AND State in which the rail transportation sys- (B) a branch from Charlotte, North Caro- HIGH PRIORITY PROJECTS ...... 22501.’’. tem— lina, to Columbia, South Carolina, to ‘‘(1) is not physically connected to rail sys- 2SEC. 204. INTERSTATE RAILROAD PASSENGER Charleston, South Carolina; HIGH-SPEED TRANSPORTATION POL- tems in the continental United States; and (C) a connecting route from Atlanta, Geor- ‘‘(2) may not otherwise qualify for high ICY. gia, to Jessup, Georgia; (a) IN GENERAL.—Chapter 261 is amended speed rail implementation assistance due to (D) a connecting route from Atlanta, Geor- by inserting before section 26101 the fol- the constraints imposed on the railway in- gia, to Charleston, South Carolina; and lowing: frastructure in that State due to the unique (E) a branch from Raleigh, North Carolina, characteristics of the geography of that ‘‘§ 26100. Policy. through Florence, South Carolina, to State or other relevant considerations, as de- Charleston, South Carolina, and Savannah, ‘‘The Congress declares that it is the pol- termined by the Secretary.’’. icy of the United States that designated Georgia, with a connecting route from Flor- (f) AUTHORIZATION OF APPROPRIATIONS.— ence, South Carolina, to Myrtle Beach, high-speed railroad passenger transportation There are authorized to be appropriated to corridors are the building blocks of an inter- South Carolina. the Secretary of Transportation $50,000,000 (12) Southwest Corridor from Los Angeles, connected National railroad passenger sys- for each of fiscal years 2004 through 2009 to tem.’’. California, to Las Vegas, Nevada. provide planning assistance under section (c) OTHER HIGH-SPEED RAIL CORRIDORS.— (b) CONFORMING AMENDMENT.—The chapter 26101(a) of title 49, United States Code. analysis for chapter 261 is amended by in- For purposes of this section, subsection (b)— SEC. 206. DESIGNATED HIGH-SPEED RAIL COR- (1) does not limit the term ‘‘designated serting before the item relating to section RIDORS. highspeed rail corridor’’ to those corridors 26101 the following: (a) IN GENERAL.—The Secretary of Trans- described in subsection (b); and ‘‘26100. Policy’’. portation shall give priority in allocating (2) does not limit the Secretary of Trans- SEC. 205. HIGH-SPEED RAIL CORRIDOR PLAN- funds authorized by section 26104 of title 49, portation’s authority— NING. United States Code, to designated high-speed (A) to designate additional high-speed rail (a) IN GENERAL.—Section 26101(a) is amend- rail corridors. corridors; or ed to read as follows: (b) DESIGNATED HIGH-SPEED RAIL COR- (B) to terminate the designation of any ‘‘(a) PLANNING.— RIDORS.—For purposes of subsection (a), the high-speed rail corridor.

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REHABILITATION, IMPROVEMENT, AND project in the same manner that the Na- (1) by redesignating subsections (e) and (f) SECURITY FINANCING. tional Railroad Passenger Corporation is re- as subsections (g) and (h), respectively; and (a) DEFINITIONS.—Section 102(7) of the Rail- quired to comply with such standards for (2) by inserting after subsection (d) the fol- road Revitalization and Regulatory Reform construction work financed under an agree- lowing: Act of 1976 (45 U.S.C. 802(7)) is amended to ment made under section 24308(a); and ‘‘(e) 50-YEAR INTERMODAL BLUEPRINT.— read as follows: ‘‘(B) the protective arrangements estab- ‘‘(1) IN GENERAL.—The Secretary, in con- ‘‘(7) ‘railroad’ has the meaning given that lished under section 504 of the Railroad Revi- sultation with the advisory board estab- term in section 20102 of title 49, United talization and Regulatory Reform Act of 1976 lished under section 24910(c) of this title, and States Code; and’’. (45 U.S.C. 836) with respect to employees af- other Federal, State, local, and private con- (b) GENERAL AUTHORITY.—Section 502 of fected by actions taken in connection with cerns, shall create a document to be known the Railroad Revitalization and Regulatory the project to be financed by direct loans or as the ‘50-year Intermodal Blueprint’, which Reform Act of 1976 (45 U.S.C. 822) is amend- loan guarantees.’’. shall— ed— (f) TIME LIMIT FOR APPROVAL OR DIS- ‘‘(A) set forth a plan to develop a national (1) by striking ‘‘Secretary may provide di- APPROVAL.—Section 502 of the Railroad Revi- intermodal transportation system, including rect loans and loan guarantees to State and talization and Regulatory Reform Act of 1976 all major modes of transportation; local governments,’’ in subsection (a) and in- (45 U.S.C. 822) is amended by adding at the ‘‘(B) describe emerging trends and opportu- serting ‘‘Secretary shall provide direct loans end the following: nities to fulfill the future passenger and and loan guarantees to State and local gov- ‘‘(i) TIME LIMIT FOR APPROVAL OR DIS- freight transportation needs of the United ernments, interstate compacts entered into APPROVAL.—Not later than 180 days after re- States; under section 410 of the Amtrak Reform and ceiving a complete application for a direct ‘‘(C) illustrate and estimate the potential Accountability Act of 1997 (49 U.S.C 24101 loan or loan guarantee under this section, results of current policies, possible policy note),’’; the Secretary shall approve or disapprove improvements, and directives for achieving (2) by striking ‘‘or’’ in subsection (b)(1)(B); the application.’’. the goals set forth in the document; (3) by redesignating subparagraph (C) of (g) FEES AND CHARGES.—Section 503 of the ‘‘(D) forecast the impact of current and fu- subsection (b)(1) as subparagraph (D); and Railroad Revitalization and Regulatory Re- ture transportation policies on mobility, (4) by inserting after subparagraph (B) of form Act of 1976 (45 U.S.C. 823) is amended— safety, energy consumption, the environ- (1) by adding at the end of subsection (k) subsection (b)(1) the following: ment, technology, international trade, eco- the following: ‘‘Funds received by the Sec- ‘‘(C) to acquire, improve, or rehabilitate nomic activity, and the quality of life in the retary under the preceding sentence shall be rail safety and security equipment and fa- United States; and credited to the appropriation from which the cilities; or’’. ‘‘(E) identify sources of funding to imple- expenses of making such appraisals, deter- (c) EXTENT OF AUTHORITY.—Section 502(d) ment the plan described in subparagraph (A). minations, and findings were incurred.’’; and of the Railroad Revitalization and Regu- (2) by adding at the end the following new ‘‘(2) BIENNIAL PROGRESS REPORTS.—The Di- latory Reform Act of 1976 (45 U.S.C. 822(d)) is subsection: rector, working with the Department of amended by adding at the end ‘‘The Sec- ‘‘(m) FEES AND CHARGES.—Except as pro- Transportation Inspector General, shall retary shall not establish any limit on the vided in this title, the Secretary may not as- issue a 50-year Intermodal Blueprint proportion of the unused amount authorized sess any fees, including user fees, or charges progress report every 2 years and transmit a under this subsection that may be used for a in connection with a direct loan or loan copy to the Senate Committee on Commerce, single loan or loan guarantee.’’. guarantee provided under section 502.’’. Science, and Transportation and the House (d) COHORTS OF LOANS.—Section 502(f) of (h) SUBSTANTIVE CRITERIA AND STAND- of Representatives Committee on Transpor- the Railroad Revitalization and Regulatory ARDS.—Not later than 30 days after the date tation and Infrastructure. In the report, the Reform Act of 1976 (45 U.S.C. 822(f)) is amend- of the enactment of this Act, the Secretary Director shall— ed— of Transportation shall publish in the Fed- ‘‘(A) disclose the results of an audit of the (1) in paragraph (2)— eral Register and post on the Department of progress made toward achieving the goals set (A) by striking ‘‘and’’ at the end of sub- Transportation Web site the substantive cri- forth in the 50-year Intermodal Blueprint; paragraph (D); teria and standards used by the Secretary to ‘‘(B) describe successes, challenges, and ob- (B) by redesignating subparagraph (E) as determine whether to approve or disapprove stacles with respect to the 50-year Inter- subparagraph (F); and applications submitted under section 502 of modal Blueprint; (C) by adding after subparagraph (D) the the Railroad Revitalization and Regulatory ‘‘(C) suggest any changes to the 50-year following new subparagraph: Reform Act of 1976 (45 U.S.C. 822). Intermodal Blueprint that the Director ‘‘(E) the size and characteristics of the co- (i) OPERATORS DEEMED RAIL CARRIERS; deems necessary or appropriate to reflect hort of which the loan or loan guarantee is a LOANS AND LOAN GUARANTEES FOR NON-RAIL- changed circumstances or new developments; member; and’’; and ROAD ENTITIES.—Section 502 of the Railroad ‘‘(D) make recommendations on ways to (2) by adding at the end of paragraph (4) Revitalization and Regulatory Reform Act of increase intermodal planning and coopera- the following: ‘‘A cohort may include loans 1976 (45 U.S.C. 822), as amended by subsection tion throughout the national transportation and loan guarantees. The Secretary shall not (f), is amended by adding at the end the fol- system and within the Department of Trans- establish any limit on the proportion of a co- lowing: portation; and hort that may be used for a single loan or ‘‘(j) OPERATORS DEEMED RAIL CARRIERS.— ‘‘(E) identify successful funding mecha- loan guarantee.’’. Any entity providing railroad transportation nisms and make recommendations for new (e) CONDITIONS OF ASSISTANCE.—Section 502 (within the meaning of section 20102) that be- approaches to funding intermodal transpor- of the Railroad Revitalization and Regu- gins operations after the date of enactment tation facilities and services. latory Reform Act of 1976 (45 U.S.C. 822) is of the Arrive 21 Act and that uses property ‘‘(3) SEXENNIAL REVISIONS.—The Secretary, amended— acquired pursuant to this section shall be in consultation with Federal, State, local, (1) by striking ‘‘offered;’’ in subsection (f) considered an employer for purposes of the and private concerns, shall revise and repub- (2) (A) and inserting ‘‘offered, if any;’’; Railroad Retirement Act of 1974 (45 U.S.C. lish the 50-year Intermodal Blueprint every 6 (2) by inserting ‘‘(1)’’ before ‘‘The Sec- 231 et seq.) and considered a carrier for pur- years. retary’’ in subsection (h) and redesignating poses of the Railway Labor Act (45 U.S.C. 151 ‘‘(f) IMPACT MEASUREMENT METHODOLOGY; paragraphs (1), (2), and (3) of that subsection et seq. ). IMPACT REVIEW.—The Secretary, working as subparagraphs (A), (B), and (C); and ‘‘(k) LOAN AND LOAN GUARANTEES FOR NON- with the Bureau of Transportation Statis- (3) by adding at the end of subsection (h) RAILROAD ENTITIES.—Notwithstanding any tics, and taking into account the work of the the following: . other provision of law, entities other than rail cooperative research program estab- ‘‘(2) The Secretary may not require an ap- rail companies shall be eligible for loans and lished under section 24910(a) of this title, plicant for a direct loan or loan guarantee loan guarantees under this section.’’. shall— under this section to provide collateral. SEC. 208. REPAYMENT OF LOAN TO NATIONAL ‘‘(1) formulate a methodology for meas- ‘‘(3) The Secretary may not require that an RAILROAD PASSENGER CORPORA- uring the impact of intermodal transpor- TION. applicant for a direct loan or loan guarantee tation on— The Secretary of Transportation may not under this section have previously sought ‘‘(A) the environment; collect any payments of principal or interest the financial assistance requested from an- ‘‘(B) public health and welfare; for the direct loan made to the National other source. ‘‘(C) energy consumption; ‘‘(4) The Secretary shall require recipients Railroad Passenger Corporation under sec- ‘‘(D) the operation and efficiency of the of direct loans or loan guarantees under this tion 502 of the Railroad Revitalization and transportation system; section to apply the standards of subsections Regulatory Reform Act of 1976 (45 U.S.C. 822). ‘‘(E) congestion; and (b) and (e) of section 22301 of title 49, United There are authorized to be appropriated to ‘‘(F) the economy and employment; and States Code, to their projects. the Secretary for fiscal year 2004 $100,000,000 ‘‘(2) undertake a comprehensive review of ‘‘(5) The Secretary shall require recipients for the purpose of repaying that loan to the the impact of international trade on inter- of direct loans or loan guarantees under this Secretary of the Treasury. modal transportation and existing inter- section to comply with— TITLE III—INTERMODAL POLICY modal transportation infrastructure.’’. ‘‘(A) the standards of section 24312, as in ef- SEC. 301. 50-YEAR INTERMODAL BLUEPRINT. (b) RETAINED FUNDS.—Section 5568 is fect on September 1, 2003, with respect to the (a) IN GENERAL.—Section 5503 is amended— amended—

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(1) by redesignating subsection (b) as sub- (b) NEW DEBT PROHIBITION.—Except as ap- (1) TITLE 49 AMENDMENTS.—CHAPTER 241 IS section (c); and proved by the Secretary of Transportation, AMENDED (2) by inserting after subsection (a) the fol- Amtrak may not enter into any obligation (A) by striking the last sentence of section lowing: secured by assets of the Corporation after 24101(d); and ‘‘(b) 50-YEAR INTERMODAL BLUEPRINT.— the date of enactment of this Act. This sec- (B) by striking the last sentence of section There are authorized to be appropriated to tion does not prohibit unsecured lines of 24104(a). the Secretary $1,000,000 for each of fiscal credit used by Amtrak or any subsidiary for (2) AMTRAK REFORM AND ACCOUNTABILITY years 2004 through 2009 to carry out section working capital purposes. ACT AMENDMENTS.—Title II of the Amtrak 5503(e).’’. (c) DEBT REDEMPTION.—The Secretary of Reform and Accountability Act of 1997 (49 SEC. 302. INTERMODAL TRANSPORTATION POL- Transportation, in consultation with the U.S.C. 24101 nt) is amended by striking sec- ICY. Secretary of the Treasury, shall enter into tions 204 and 205. (a) POLICY STANDARDS.—Section 302(e) is negotiations with the holders of Amtrak (3) COMMON STOCK REDEMPTION DATE.—Sec- amended by striking ‘‘system’’ and inserting debt, including leases, that is outstanding on tion 415 of the Amtrak Reform and Account- ‘‘system, including freight and passenger rail the date of enactment of this Act for the ability Act of 1997 (49 U.S.C. 24304 nt) is service and maritime transportation, includ- purpose of redeeming or restructuring that amended by striking subsection (b). ing such transportation via inland water- debt. The Secretary, in consultation with (b) LEASE ARRANGEMENTS.—Amtrak may ways,’’. the Secretary of the Treasury, shall secure obtain services from the Administrator of (b) STATE TRANSPORTATION IMPROVEMENT agreements for repayment on such terms as General Services, and the Administrator PROGRAMS.—Section 135(f)(4) of title 23, the Secretary deems favorable to the inter- may provide services to Amtrak, under sec- United States Code, is amended by inserting ests of the Government. Payments for such tion 201(b) and 211(b) of the Federal Property ‘‘a State rail plan developed under chapter redemption may be made after October 1, and Administrative Service Act of 1949 (40 225 of title 49,’’ after ‘‘134,’’. 2004, in either a single payment or a series of U.S.C. 481(b) and 491(b)) for each of fiscal TITLE IV—AMTRAK AUTHORIZATIONS payments, but in no case shall the repay- years 2004 through 2008. (c) FINANCIAL POWERS.—Section 415(d) of ment period extend beyond September 30, SEC. 401. NATIONAL RAILROAD PASSENGER the Amtrak Reform and Accountability Act 2008. TRANSPORTATION SYSTEM DE- of 1997 by adding at the end, the following: (d) CRITERIA.—In redeeming or restruc- FINED. ‘‘(3) This section does not affect the appli- turing Amtrak’s indebtedness, the Secre- (a) IN GENERAL.—Section 24102 is amend- cability of section 3729 of title 31, United taries and Amtrak— ed— States Code, to claims made against Am- (1) by striking paragraph (2); (1) shall ensure that the restructuring im- trak.’’. (2) by redesignating paragraphs (3), (4), and poses the least practicable burden on tax- (5) as paragraphs (2), (3), and (4), respec- payers; and SEC. 404. EXCESS RAILROAD RETIREMENT. tively; and (2) take into consideration repayment Beginning in fiscal year 2004, the Secretary (3) by inserting after paragraph (4) as so re- costs, the term of any loan or loans, and of the Treasury each year shall pay to the designated the following: market conditions. Railroad Retirement Account an amount ‘‘(5) ‘national rail passenger transportation (e) AUTHORIZATION.—There are authorized equal to the amount Amtrak must pay under system’ means— to be appropriated to the Secretary such section 3221 of the Internal Revenue Code of ‘‘(A) the segment of the Northeast Corridor sums as may be necessary for fiscal years 1986 in fiscal years that is more than the between Boston, Massachusetts and Wash- 2005 through 2008 to restructure or redeem amount needed for benefits for individuals ington, D.C.; Amtrak’s secured debt. who retire from Amtrak and for their bene- ‘‘(B) rail corridors that have been des- (f) AMTRAK PRINCIPAL AND INTEREST PAY- ficiaries. There are authorized to be appro- ignated by the Secretary of Transportation MENTS.— priated such sums as may be necessary in as high-speed corridors, but only after they (1) PRINCIPAL ON DEBT SERVICE.—Unless the each fiscal year beginning after fiscal year have been improved to permit operation of Secretary of Transportation and the Sec- 2004 for these payments. highspeed service; retary of the Treasury restructure or redeem SEC. 405. AUTHORIZATIONS FOR ENVIRON- ‘‘(C) long-distance routes of more than 750 the debt, there are authorized to be appro- MENTAL COMPLIANCE AND STATION miles between endpoints operated by Amtrak priated to the Secretary of Transportation EVIPROVEMENTS. as of the date of enactment of the Arrive 21 for the use of Amtrak for retirement of prin- (a) ENVIRONMENTAL COMPLIANCE.—There Act; and cipal on loans for capital equipment, or cap- are authorized to be appropriated to the Sec- ‘‘(D) short-distance corridors or routes op- ital leases, not more than the following retary of Transportation for the use of Am- erated by Amtrak.’’. amounts: trak in order to comply with environmental (b) AMTRAK ROUTES WITH STATE FUNDING.— (A) For fiscal year 2004, $116,900,000. regulations the following amounts: (1) IN GENERAL.—Chapter 247 is amended by (B) For fiscal year 2005, $109,500,000. (A) For fiscal year 2004, $18,800,000. inserting after section 24701 the following: (C) For fiscal year 2006, $114,700,000. (B) For fiscal year 2005, $21,700,000. (D) For fiscal year 2007, $202,900,000. (C) For fiscal year 2006, $22,300,000. ‘‘§ 24702. Transportation requested by States, (D) For fiscal year 2007, $15,100,000. authorities, and other persons (E) For fiscal year 2008, $164,300,000. (F) For fiscal year 2009, $155,800,000. (E) For fiscal year 2008, $15,900,000. ‘‘(a) CONTRACTS FOR TRANSPORTATION.— (F) For fiscal year 2009, $16,000,000. (2) INTEREST ON DEBT.—Unless the Sec- (b) CAPITAL IMPROVEMENTS TO STATIONS.— Amtrak and a State, a regional or local au- retary of Transportation and the Secretary (1) IN GENERAL.—There are authorized to be thority, or another person may enter into a of the Treasury restructure or redeem the contract for Amtrak to operate an intercity appropriated to the Secretary of Transpor- debt, there are authorized to be appropriated tation for the use of Amtrak for capital im- rail service or route not included in the na- to the Secretary of Transportation for the tional rail passenger transportation system provements to stations, including an initial use of Amtrak for the payment of interest on assessment of the full set of accessibility upon such terms as the parties thereto may loans for capital equipment, or capital agree. needs across the national rail passenger leases, the following amounts: transportation system and improved accessi- ‘‘(b) DISCONTINUANCE.—Upon termination (A) For fiscal year 2004, $162,600,000. bility for the elderly and people with disabil- of a contract entered into under this section, (B) For fiscal year 2005, $151,300,000. ities and in Amtrak facilities and stations, or the cessation of financial support under (C) For fiscal year 2006, $146,300,000. such a contract by either party, Amtrak (D) For fiscal year 2007, $137,500,000. the following amounts: (A) For fiscal year 2004, $17,100,000. may discontinue such service or route, not- (E) For fiscal year 2008, $125,300,000. (B) For fiscal year 2005, $19,800,000. withstanding any other provision of law.’’. (F) For fiscal year 2009, $117,100,000. (2) CONFORMING AMENDMENT.—The chapter (C) For fiscal year 2006, $19,800,000. (3) REDUCTIONS IN AUTHORIZATION LEVELS.— (D) For fiscal year 2007, $19,000,000. analysis for chapter 247 is amended by in- Whenever action taken by the Secretary of serting after the item relating to section (E) For fiscal year 2008, $19,000,000. the Treasury under subsection (c) results in (F) For fiscal year 2009, $19,000,000. 24701 the following: reductions in amounts of principle and inter- (2) STUDY OF COMPLIANCE REQUIREMENTS AT ‘‘24702. Transportation requested by States, est that Amtrak must service on existing EXISTING INTERCITY RAIL STATIONS.—Amtrak authorities, and other persons’’. debt, Amtrak shall submit revised rec- shall evaluate the improvements necessary (c) AMTRAK TO CONTINUE TO PROVIDE NON- ommendations to the Senate Committee on to make. all existing stations it serves read- HIGH-SPEED SERVICES.—Nothing in this Act Commerce, Science and Transportation, the ily accessible to and usable by individuals is intended to preclude Amtrak from restor- House of Representatives Committee on with disabilities, as required by section ing, improving, or developing non-high-speed Transportation and Infrastructure, the Sen- 242(e)(2) of the Americans with Disabilities intercity passenger rail service. ate Committee on Appropriations, and House Act of 1990 (42 U.S.C. 12162(e)(2)). The evalua- SEC. 402. RESTRUCTURING OF LONG-TERM DEBT of Representatives Committee on Appropria- tion shall include the estimated cost of the AND CAPITAL LEASES. tions revised requests for amounts author- improvements necessary, the identification (a) IN GENERAL.—The Secretary of the ized by paragraphs (1) and (2) that reflect the of the responsible person (as defined in sec- Treasury shall work with the Secretary of such reductions. tion 241(5) of that Act (42 U.S.C. 12161(5)), and Transportation and Amtrak to restructure SEC. 403. GENERAL AMTRAK AUTHORIZATIONS. the earliest practicable date when such im- Amtrak’s indebtedness as of the date of en- (a) REPEAL OF SELF-SUFFICIENCY REQUIRE- provements can be made. Amtrak shall sub- actment of this Act. MENTS.— mit the survey to the Senate Committee on

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Commerce, Science, and Transportation, the (b) PROCEDURES FOR GRANT REQUESTS.— sult with the Speaker of the House of Rep- House of Representatives Committee on The Secretary shall establish substantive resentatives, the Minority Leader of the Transportation and Infrastructure, and the and procedural requirements, including House of Representatives, the Majority National Council on Disability by September schedules, for grant requests under this sec- Leader of the Senate, and the Minority Lead- 30, 2005, along with recommendations for tion not later than 30 days after the date of er of the Senate and should ensure adequate funding the necessary improvements. enactment of this Act and shall transmit and balanced representation of the major ge- SEC. 406. TUNNEL LIFE SAFETY. copies to the Senate Committee on Com- ographic regions of the United States. (a) LIFE SAFETY NEEDS.—There are author- merce, Science, and Transportation and the ‘‘(3) An individual appointed under para- ized to be appropriated to the Secretary of House of Representatives Committee on graph (1)(C) of this subsection serves for 5 Transportation for the use of Amtrak for fis- Transportation and Infrastructure. years or until the individual’s successor is cal year 2004: (c) REVIEW AND APPROVAL.— appointed and qualified. Not more than 4 in- (1) $677,000,000 for the 6 New York tunnels (1) 30-DAY PROCESS.—The Secretary shall dividuals appointed under paragraph (1)(C) built in 1910 to provide ventilation, elec- complete the review of a grant request and may be members of the same political party. trical, and fire safety technology upgrades, approve or disapprove the request within 30 ‘‘(4) The board shall elect a chairman and emergency communication and lighting sys- days after the date on which Amtrak sub- a vice chairman from among its membership. tems, and emergency access and egress for mits the grant request. The vice chairman shall serve as chairman in passengers. (2) INCOMPLETE OR DEFICIENT REQUESTS.—If the absence of the chairman. (2) $57,000,000 for the Baltimore & Potomac the Secretary disapproves the request or de- ‘‘(5) The Secretary may be represented at tunnel built in 1872 to provide adequate termines that the request is incomplete or board meetings by the Secretary’s designee. drainage, ventilation, communication, light- deficient, the Secretary shall immediately ‘‘(b) PAY AND EXPENSES.—Each director not ing, and passenger egress upgrades. notify Amtrak of the reason for disapproval employed by the United States Government (3) $40,000,000 for the Washington, DC, or the incomplete items or deficiencies. is entitled to $300 a day when performing Union Station tunnels built in 1904 under the Within 15 days after receiving notification board duties and powers. Each director is en- Supreme Court and House and Senate Office from the Secretary under the preceding sen- titled to reimbursement for necessary travel, Buildings to improve ventilation, commu- tence, Amtrak shall submit a modified re- reasonable secretarial and professional staff nication, lighting, and passenger egress up- quest for the Secretary’s review. support, and subsistence expenses incurred grades. (3) REVISED REQUESTS.—Within 15 days in attending board meetings. (b) INFRASTRUCTURE UPGRADES.—There are after receiving a modified request from Am- ‘‘(c) VACANCIES.— A vacancy on the board authorized to be appropriated to the Sec- trak, the Secretary shall either approve the is filled in the same way as the original se- retary of Transportation for the use of Am- modified request, or, if the Secretary finds lection, except that an individual appointed trak $3,000,000 for fiscal year 2004 for the pre- that the request is still incomplete or defi- by the President of the United States under liminary design of options for a new tunnel cient, the Secretary shall identify in writing subsection (a)(1)(C) of this section to fill a on a different alignment to augment the ca- to the Senate Committee on Commerce, vacancy occurring before the end of the term pacity of the existing Baltimore tunnels. Science, and Transportation and the House for which the predecessor of that individual (c) FINANCIAL CONTRIBUTION FROM OTHER of Representatives Committee on Transpor- was appointed is appointed for the remainder TUNNEL USERS.—The Secretary shall, taking tation and Infrastructure the remaining defi- of that term. A vacancy required to be filled into account the need for the timely comple- ciencies and recommend a process for resolv- by appointment under subsection (a)(1)(C) tion of all life safety portions of the tunnel ing the outstanding portions of the request. must be filled not later than 120 days after projects described in subsection (a)— SEC. 409. STATE-SUPPORTED ROUTES. the vacancy occurs. (1) consider the extent to which rail car- The Board of Directors of Amtrak, in con- ‘‘(d) BYLAWS.—The board may adopt and riers other than Amtrak use the tunnels; sultation with the Secretary of Transpor- amend bylaws governing the operation of (2) consider the feasibility of seeking a fi- tation and the chief executive officer of each Amtrak. The bylaws shall be consistent with nancial contribution from those other rail State and the District of Columbia, shall de- this part and the articles of incorporation.’’. carriers toward the costs of the projects; and velop a formula for funding the operating (b) EFFECTIVE DATE FOR DIRECTORS’ PROVI- (3) obtain financial contributions or com- costs of trains operating on routes not in ex- SION.—The amendment made by subsection mitments from such other rail carriers if cess of 750 miles in length that— (a) shall take effect on October 1, 2003. The feasible. (1) is equitable and fair; and members of the Amtrak Reform Board may (d) AVAILABILITY OF FUNDS. Amounts ap- (2) ensures, within 5 years after the date of continue to serve until 3 directors appointed propriated pursuant to this section shall re- enactment of this Act, equal treatment of all by the President under section 24302(a) of main available until expended. States (and the District of Columbia) and title 49, United States Code, as amended by SEC. 407. AUTHORIZATION FOR CAPITAL AND OP- groups of States (including the District of subsection (a), have qualified for office. ERATING EXPENSES. Columbia). SEC. 412. ESTABLISHMENT OF FINANCIAL AC- (a) OPERATING EXPENSES.—There are au- SEC. 410. RE-ESTABLISHMENT OF NORTHEAST COUNTING SYSTEM FOR AMTRAK thorized to be appropriated to the Secretary CORRIDOR SAFETY COMMITTEE. OPERATIONS BY INDEPENDENT AUDITOR. of Transportation for the use of Amtrak for (a) RE-ESTABLISHMENT OF NORTHEAST COR- (a) IN GENERAL.—The Inspector General of operating costs the following amounts: RIDOR SAFETY COMMITTEE.—The Secretary of (1) For fiscal year 2004, $581,000,000. Transportation shall re-establish the North- the Department of Transportation shall em- (2) For fiscal year 2005, $567,000,000. east Corridor Safety Committee authorized ploy an independent financial consultant (3) For fiscal year 2006, $558,000,000. by section 24905(b) of title 49, United States with experience in railroad accounting— (1) to assess Amtrak’s financial accounting (4) For fiscal year 2007, $529,000,000. Code. and reporting system and practices; (5) For fiscal year 2008, $522,000,000. (b) TERMINATION DATE.—Section 24905(b)(4) (6) For fiscal year 2009, $522,000,000. is amended by striking ‘‘January 1, 1999,’’ (2) to design and assist Amtrak in imple- (b) CAPITAL BACKLOG AND UPGRADES.— and inserting ‘‘January 1, 2009,’’. menting a modern financial accounting and There are authorized to be appropriated to reporting system, on the basis of the assess- the Secretary of Transportation for the use SEC. 411. AMTRAK BOARD OF DIRECTORS. ment, that will produce accurate and timely of Amtrak for capital expenses, the following (a) IN GENERAL.—Section 24302 is amended financial information in sufficient detail— amounts: to read as follows: (A) to enable Amtrak to assign revenues (1) For fiscal year 2004, $674,000,000. ‘‘§ 24302. Board of directors and expenses appropriately to each of its (2) For fiscal year 2005, $765,000,000. ‘‘(a) COMPOSITION AND TERMS.— lines of business and to each major activity (3) For fiscal year 2006, $733,000,000. ‘‘(1) The board of directors of Amtrak is within each line of business activity, includ- (4) For fiscal year 2007, $604,000,000. composed of the following 9 directors, each ing train operations, equipment mainte- (5) For fiscal year 2008, $560,000,000. of whom must be a citizen of the United nance, ticketing, and reservations; (6) For fiscal year 2009, $565,000,000. States: (B) to aggregate expenses and revenues re- (c) REDUCTIONS.—Amounts authorized ‘‘(A) The President of Amtrak. lated to infrastructure and distinguish them under subsection (b) shall be reduced by ‘‘(B) The Secretary of Transportation. from expenses and revenues related to rail amounts equal to grants provided by the ‘‘(C) 7 individuals appointed by the Presi- operations; and Rail Infrastructure Finance Corporation dent of the United States, by and with the (C) to provide ticketing and reservation in- under title VI of this Act upon receipt to advice and consent of the Senate, with expe- formation on a real-time basis. Amtrak for capital requirements and ex- rience and qualifications in or directly re- (b) VERIFICATION OF SYSTEM; REPORT.—The penditures listed in the annual budget and 5 lated to rail transportation, including rep- Inspector General of the Department of Year Financial Plan required under section resentatives of freight and passenger rail Transportation shall review the accounting 413. transportation, travel, hospitality, cruise system designed and implemented under sub- SEC. 409. ESTABLISHMENT OF GRANT PROCESS. line, and passenger air transportation busi- section (a) to ensure that it accomplishes the (a) GRANT REQUESTS.—Amtrak shall sub- nesses, consumers of passenger rail transpor- purposes for which it is intended. The Inspec- mit grant requests to the Secretary of tation, and State government. tor General shall report his findings and con- Transportation for funds authorized to be ap- ‘‘(2) In selecting individuals described in clusions, together with any recommenda- propriated to the Secretary for the use of paragraph (1) for nominations for appoint- tions, to the Senate Committee on Com- Amtrak under sections 405, 406, and 407. ments to the Board, the President shall con- merce, Science, and Transportation and the

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House of Representatives Committee on (2) ASSESSMENT TO BE FURNISHED TO THE Finance Corporation’’. The Rail Infrastruc- Transportation and Infrastructure. CONGRESS.—The Inspector General shall fur- ture Finance Corporation is not an agency or (c) AUTHORIZATION OF APPROPRIATIONS.— nish to the House of Representatives Com- establishment of the United States Govern- There are authorized to be appropriated to mittee on Appropriations, the Senate Com- ment. The Corporation shall be subject to the Secretary of Transportation $2,500,000 for mittee on Appropriations, the House of Rep- the provisions of this title and title VI, and, fiscal year 2004 to carry out subsection (a), resentatives Committee on Transportation to the extent consistent with this section, to such sums to remain available until ex- and Infrastructure, and the Senate Com- the laws of the State of Delaware applicable pended. mittee on Commerce, Science, and Transpor- to corporations not for profit. SEC. 413. DEVELOPMENT OF 5-YEAR FINANCIAL tation— SEC. 502. BOARD OF DIRECTORS. (A) an assessment of the annual budget PLAN. (a) APPOINTMENT.—The Rail Infrastructure within 90 days after receiving it from Am- (a) DEVELOPMENT OF 5-YEAR FINANCIAL Finance Corporation shall have a Board of trak; and PLAN.—The Amtrak board of directors shall Directors consisting of 9 members appointed submit an annual budget for Amtrak, and a (B) an assessment of the remaining 4 years of the 5–year financial plan within 180 days by the President, by and with the advice and 5-year financial plan for the fiscal year to after receiving it from Amtrak. consent of the Senate. The President shall which that budget relates and the subse- submit all nominations for the initial Board quent 4 years, prepared in accordance with SEC. 414. INDEPENDENT AUDITOR TO ESTABLISH METHODOLOGIES FOR AMTRAK not less than 180 days after the date of enact- this section, to the Secretary of Transpor- ROUTE AND SERVICE PLANNING DE- ment of this Act. Not more than 5 members tation and the Inspector General of the De- CISIONS. of the Board may be members of the same partment of Transportation no later than— (a) REVIEW.—The Secretary of Transpor- political party. (1) the first day of each fiscal year begin- tation shall, in consultation with the Fed- (b) MEMBERSHIP QUALIFICATIONS.— ning after the date of enactment of this Act; eral Railroad Administration, execute a con- (1) IN GENERAL.—The 9 members of the or tract to obtain the services of an inde- Board shall be appointed from among citi- (2) the date that is 60 days after the date of pendent auditor or consultant to research zens of the United States (not regular full- enactment of an appropriation Act for the and define Amtrak’s past and current meth- time employees of the United States) who fiscal year, if later. odologies for determining intercity pas- are eminent in the fields of rail transpor- (b) CONTENTS OF 5-YEAR FINANCIAL PLAN.— senger rail routes and services. tation, rail financing, and intermodal trans- The 5-year financial plan for Amtrak shall (b) RECOMMENDATIONS.—The independent portation planning, and the financing and include, at a minimum— auditor or consultant shall recommend ob- management of large-scale, long-term pub- (1) all projected revenues and expenditures jective methodologies for determining such lic-private cooperative projects. for Amtrak, including governmental funding routes and services, including the establish- (2) REPRESENTATION OF SPECIFIC INTER- sources; ment of new routes, the elimination of exist- ESTS.—Of the 9 members of the Board, 8 of (2) projected ridership levels for all Am- ing routes, and the contraction or expansion the members shall be selected as follows: trak passenger operations; of services or frequencies over such routes. (A) 1 member from among individuals who (3) revenue and expenditure forecasts for (c) SUBMITTAL TO CONGRESS.—The Sec- represent the interests of freight rail trans- nonpassenger operations; retary shall submit recommendations re- portation. (4) capital funding requirements and ex- ceived under subsection (b) to Amtrak, the (B) 1 member from among individuals who penditures necessary to maintain passenger House of Representatives Committee on represent the interests of intermodal trans- service which will accommodate predicted Transportation and Infrastructure, and the portation. ridership levels and predicted sources of cap- Senate Committee on Commerce, Science, (C) 1 member from among individuals who ital funding; and Transportation. represent the interests of passenger rail (5) operational funding needs, if any, to (d) AUTHORIZATION OF APPROPRIATIONS.— transportation. maintain current and projected levels of pas- There are authorized to be made available to (D) 1 member from among individuals who senger service, including state-supported the Secretary of Transportation, out of any represent the interests of the States. routes and predicted funding sources; amounts authorized by this Act to be appro- (E) 1 member from among individuals who (6) projected capital and operating require- priated for the benefit of Amtrak and not represent the interests of intercity passenger ments, ridership, and revenue for any new otherwise obligated or expended, such sums rail users. passenger service operations or service ex- as may be necessary to carry out this sec- (F) 1 member from among individuals who pansions; tion. represent the interests of organized rail (7) an assessment of the continuing finan- SEC. 415. METRICS AND STANDARDS. labor. cial stability of Amtrak, as indicated by fac- The Administrator of the Federal Railroad (G) 2 members from among persons who are tors such as: the ability of the federal gov- Administration shall, in consultation with involved in finance. ernment to adequately meet capital and op- Amtrak and host railroads, develop new or (c) INCORPORATION.—The members initially erating requirements, Amtrak’s access to improve existing metrics and minimum appointed to the Board of Directors shall long-term and short-term capital markets, standards for measuring the service quality serve as incorporators and, upon the estab- Amtrak’s ability to efficiently manage its of intercity train operations, including on- lishment of a quorum, shall take whatever workforce, and Amtrak’s ability to effec- time performance, on-board services, sta- actions are necessary to establish the Cor- tively provide passenger train service. tions, facilities, equipment, and other serv- poration under the laws of Delaware. (8) lump sum expenditures of $10,000,000 or ices. (d) TERMS OF OFFICE.—Members of the more and sources of funding. SEC. 416. ON–TIME PERFORMANCE. Board shall be appointed for terms of 6 years. (9) estimates of long-term and short-term Section 24308 is amended by adding at the No member of the Board shall be eligible to debt and associated principle and interest end the following: serve in excess of 2 consecutive full terms. payments (both current and anticipated); ‘‘(f) ON–TIME PERFORMANCE AND OTHER (e) VACANCIES.—A member of the Board ap- (10) annual cash flow forecasts; and STANDARDS.—If the on-time performance of pointed to fill a vacancy occurring prior to (11) a statement describing methods of es- any intercity passenger train averages less the expiration of the term for which the timation and significant assumptions. than 80 percent for any consecutive 6–month member’s predecessor was appointed shall be (c) STANDARDS TO PROMOTE FINANCIAL STA- period, or the service quality of intercity appointed for the remainder of such term. BILITY.—In meeting the requirements of sub- train operations for which minimum stand- Upon the expiration of a member’s term, the section (b) with respect to a 5-year financial ards are established under section 415 of the member shall continue to serve until a suc- plan, Amtrak shall— Arrive 21 Act fails to meet those standards, cessor is appointed. (1) apply sound budgetary practices, in- Amtrak may petition the Surface Transpor- (f) ATTENDANCE REQUIRED.—Members of the cluding reducing costs and other expendi- tation Board to investigate whether, and to Board shall attend not less than 50 percent of tures, improving productivity, increasing what extent, delays or failure to achieve all duly convened meetings of the Board in revenues, or combinations of such practices; minimum standards are due to causes that any calendar year. A member who fails to and could reasonably be addressed by a rail car- meet the requirement of the preceding sen- (2) use the categories specified in the fi- rier over the tracks of which the intercity tence shall forfeit membership and the Presi- nancial accounting and reporting system de- passenger train operates, or by a regional au- dent shall appoint a new member to fill the veloped under section 412 when preparing its thority providing commuter service, if any. resulting vacancy not later than 90 days 5-year financial plan. In carrying out such an investigation, the after such vacancy is determined by the (d) ASSESSMENT BY DOT INSPECTOR GEN- Surface Transportation Board shall obtain Chairman of the Board. ERAL.— information from all parties involved and (g) ELECTION OF CHAIRMAN AND VICE CHAIR- (1) IN GENERAL.—The Inspector General of make recommendations regarding reason- MAN.—Members of the Board shall annually the Department of Transportation shall as- able measures to improve the service, qual- elect 1 of their members to be Chairman and sess the 5–year financial plans prepared by ity, and on-time performance of the train.’’. elect 1 or more of their members as a Vice Amtrak under this section to determine TITLE V—RAIL INFRASTRUCTURE Chairman or Vice Chairmen. whether they meet the requirements of sub- FINANCE CORPORATION (h) COMPENSATION.—The members of the section (b), and may suggest revisions to any SEC. 501. ESTABLISHMENT OF CORPORATION. Board shall not, by reason of such member- components thereof that do not meet those There is established a nonprofit corpora- ship, be considered to be officers or employ- requirements. tion, to be known as the ‘‘Rail Infrastructure ees of the United States. They shall, while

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00116 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15997 attending meetings of the Board or while en- SEC. 505. PURPOSE AND ACTIVITIES OF COR- supercede or otherwise affect the application gaged in duties related to such meetings or PORATION. of the Federal securities laws (as such term other activities of the Board pursuant to this (a) PURPOSE.—The Rail Infrastructure Fi- is defined in section 2(a)(47) of the Securities Act, be entitled to receive compensation at nance Corporation shall, through the Exchange Act of 1934) or the rules, regula- the rate of $300 per day, including travel- issuance of qualified rail infrastructure tions, or orders of the Securities and Ex- time. No Board member shall receive com- bonds in accordance with section 54 of the change Commission promulgated under pensation of more than $10,000 in any fiscal Internal Revenue Code of 1986 and this title, those laws. year. While away from their homes or reg- provide financial support for rail transpor- SEC. 506. REPORT TO CONGRESS. tation capital projects under title VI of this ular places of business, Board members shall (a) IN GENERAL.—On or before May 15 of be allowed travel and actual, reasonable, and Act. each year, the Rail Infrastructure Finance necessary expenses. (b) BOND ISSUANCE AUTHORITY.— Corporation shall submit an annual report (1) IN GENERAL.—In order to carry out its (i) MEETINGS OPEN TO PUBLIC.—All meet- for the fiscal year ending on September 30 of purposes, the Corporation is authorized to ings of the Board of Directors of the Corpora- the preceding year to the Senate Committee issue qualified rail infrastructure bonds (as tion, including any committee of the Board, on Commerce, Science, and Transportation defined in section 54(e) of the Internal Rev- shall be open to the public under such terms, and the House of Representatives Committee enue Code of 1986) during the 6–year period conditions, and exceptions as the Board may on Transportation and Infrastructure. The beginning on the day after the date of enact- establish. report shall include a comprehensive and de- ment of this Act. (j) QUORUM AND PROCEEDINGS.—Five mem- tailed report of the Corporation’s operations, (2) LIMITATION.—The total face amount of bers of the Board shall constitute a quorum activities, financial condition, and accom- the bonds outstanding under paragraph (1) at for the Board to conduct business. All deci- plishments under this title and such rec- any time may not exceed $30,000,000,000. sions of the Board shall be entered upon the ommendations as the Corporation deems ap- (3) NO FEDERAL GUARANTEE.— records of the Board. propriate. (A) OBLIGATIONS INSURED BY THE CORPORA- SEC. 503. OFFICERS AND EMPLOYEES. (b) AVAILABILITY FOR TESTIMONY.—The offi- TION.—No obligation that is insured, guaran- (a) IN GENERAL.—The Rail Infrastructure teed, or otherwise backed by the Corporation cers and directors of the Corporation shall be Finance Corporation shall have a President, shall be deemed to be an obligation that is available to testify before those committees and such other officers as may be named and guaranteed by the full faith and credit of the with respect to such report or any other appointed by the Board for terms and at United States. matter which such committees may deter- rates of compensation fixed by the Board. No (B) SPECIAL RULE.—This paragraph shall mine. individual other than a citizen of the United not affect the determination of whether such SEC. 507. ADMINISTRATIVE MATTERS. States may be an officer of the Corporation. obligation is guaranteed for purposes of Fed- (a) BUDGET.—The Rail Infrastructure Fi- No officer of the Corporation may receive eral income taxes. nance Corporation shall establish an annual any salary or other compensation (except for (C) SECURITIES OFFERED BY THE CORPORA- budget for the Corporation, including the compensation for services on boards of direc- TION.—No debt or equity securities of the Rail Infrastructure Investment Account tors of other organizations that do not re- Corporation shall be deemed to be guaran- under subsection (c). ceive funds from the Corporation, on com- teed by the full faith and credit of the United (b) IMPLEMENTATION PLAN.— mittees of such boards, and in similar activi- States. (1) REQUIREMENT FOR PLAN.—The Corpora- ties for such organizations) from any sources (4) AUTHORITY.—To carry out the foregoing tion shall conduct a study and prepare a plan other than the Corporation for services ren- purposes and engage in the foregoing activi- on how the Corporation can best achieve the dered during the period of his or her employ- ties, the Corporation shall have the usual purposes and fulfill the requirements of this ment by the Corporation. Service by any of- powers conferred upon a nonprofit corpora- title. ficer on boards of directors of other organiza- tion under the laws of the State of Delaware. (2) CONSULTATION.—In preparing the plan, tions, on committees of such boards, and in (c) FEDERAL ASSISTANCE.—The Corporation the Corporation may consult with represent- similar activities for such organizations shall be eligible to receive discretionary atives of State and local governments, rail- shall be subject to annual advance approval grants, contracts, gifts, contributions, or roads, and other similar entities. by the Board and subject to the provisions of technical assistance from any department or (3) OTHER REQUIREMENTS.—The plan, which the Corporation’s Statement of Ethical Con- agency of the Federal Government, but only shall be based on the conclusions resulting duct. All officers shall serve at the pleasure to the extent permitted by law and to the ex- from the study conducted under paragraph of the Board. An officer of the corporation tent necessary to carry out the purpose set (1), shall be submitted by the Corporation to shall not be considered to be an officer or forth in subsection (a) and the activities de- the Senate Committee on Commerce, employee of the United States by virtue of scribed in subsection (b). Science, and Transportation and the House such office. (d) STATUS UNDER FEDERAL SECURITIES of Representatives Committee on Transpor- (b) NONPARTISAN NATURE OF APPOINT- LAWS.— tation and Infrastructure not later than 180 MENTS.—No political test or qualification (1) IN GENERAL.—For purposes of the Secu- days after the date on which the Corporation shall be used in selecting, appointing, pro- rities Act of 1933, the Securities Exchange is incorporated. Unless directed otherwise by moting, or taking other personnel actions Act of 1934 or the Trust Indenture Act of law, the Corporation shall implement the with respect to officers, agents, or employees 1939, the Rail Infrastructure Finance Cor- plan during the first fiscal year beginning of the Corporation. poration shall not be considered an agency after the fiscal year in which the plan is sub- SEC. 504. NONPROFIT AND NONPOLITICAL NA- or instrumentality of the United States or mitted to Congress. TURE OF THE CORPORATION. any State or Territory thereof nor an entity (c) RAIL INFRASTRUCTURE INVESTMENT AC- (a) STOCK.—The Rail Infrastructure Fi- described in section 3(a)(4) of the Securities COUNT.— nance Corporation shall have no power to Act of 1933 and shall not be entitled to rely (1) ESTABLISHMENT.—The Board of Direc- issue any shares of stock, or to declare or on any exemption from those laws. Any secu- tors for the Corporation shall establish an pay any dividends. rity offered or sold or guaranteed by the Rail account to be known as the Rail Infrastruc- (b) NO PRIVATE BENEFIT.—No part of the Infrastructure Finance Corporation may not ture Investment Account. income or assets of the Corporation shall be offered or sold in reliance on any exemp- (2) DEPOSIT OF BOND PROCEEDS.—The Cor- inure to the benefit of any director, officer, tion from registration under the Securities poration shall deposit the proceeds of sales employee, or any other individual except as Act of 1933, unless exempted by rule or regu- of any bonds issued under section 54 of the salary or reasonable compensation for serv- lation of the Securities and Exchange Com- Internal Revenue Code of 1986 into the Ac- ices. mission. For so long as the Rail Infrastruc- count. (c) POLITICAL ACTIVITY PROHIBITED.—The ture Finance Corporation has any securities (3) DEPOSIT OF NON-FEDERAL CONTRIBU- Corporation may not contribute to or other- outstanding, it may not rely on the rules TIONS.—The Board shall deposit all non-Fed- wise support any political party or candidate promulgated under the Securities Exchange eral contributions received into the Account. for elective public office. Act of 1934 to voluntarily terminate or sus- (4) DISBURSEMENTS.—The Board may make (d) CONFLICTS OF INTEREST.—No director, pend the Rail Infrastructure Finance Cor- available and may disburse, during the first officer, or employee of the Corporation shall poration’s obligations to comply with the re- fiscal year beginning after the date of enact- in any manner, directly or indirectly, par- porting requirements of the Securities Ex- ment of this Act and during each succeeding ticipate in the deliberation upon or the de- change Act of 1934 with regard to any of its fiscal year thereafter, such funds as may be termination of any question affecting his or outstanding securities and the provisions of available for obligation and expenditure her personal interests or the interests of any section 15(d)(6) of the Securities Exchange from the Account. corporation, partnership, or organization in Act of 1934 shall not apply to the Rail Infra- (5) USE OF ACCOUNT FUNDS.—Funds in the which he or she has a direct or indirect fi- structure Finance Corporation, unless ex- Account— nancial interest. Board members shall recuse empted by rule, regulation, or order of the (A) shall be used by the Corporation for in- themselves from Board decisions that di- Securities and Exchange Commission. vestment purposes through the trust estab- rectly affect either them or entities they (2) RELATIONSHIP TO FEDERAL SECURITIES lished under section 508 to generate an represent regarding grants and other finan- LAWS.—Except as provided in paragraph (1), amount sufficient— cial assistance provided to States by the no provision of this section or any regulation (i) to repay the principal of the bonds at Board. issued by any other Federal agency shall their maturity; and

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00117 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S15998 CONGRESSIONAL RECORD — SENATE November 25, 2003 (ii) to pay the administrative costs of the annual financial report) as the Corporation ployees of the Government of the United Corporation and the Rail Infrastructure Fi- may require. States. nance Trust under section 508; and (5) ADDITIONAL RECORDKEEPING.—Any re- (4) QUALIFICATIONS.—The Trustees shall be (B) shall, to the extent of the net spendable cipient of assistance by grant or contract appointed only from among persons who proceeds in the account, be held in the Rail under this section, other than a fixed price have experience and expertise in the man- Infrastructure Finance Trust established contract awarded pursuant to competitive agement of financial investments. No mem- under section 508 and be available for dis- bidding procedures, shall keep such records ber of the Board of Directors of the Rail In- tribution as grants of financial assistance as may be reasonably necessary to disclose frastructure Finance Corporation is eligible under title VI of this Act. fully the amount and the disposition by such to be a Trustee. (6) NET SPENDABLE PROCEEDS DEFINED.—In recipient of such assistance, that total cost (5) TERMS.—Each member of the Board of this subsection, the term ‘‘net spendable pro- of the project or undertaking in connection Trustees shall be appointed for a 3–year ceeds’’, with respect to the Rail Infrastruc- with which such assistance is given or used, term. Any member whose term has expired ture Investment Account, means the and the amount and nature of that portion of may serve until such member’s successor has amount, determined by the Board of Trust- the cost of the projects or undertaking sup- taken office, or until the end of the calendar ees of the Rail Infrastructure Finance Trust, plied by other sources, and such other year in which such member’s term has ex- equal to the excess of— records as will facilitate an effective audit. pired, whichever is earlier. A vacancy in the (A) the total amount in such Account, over (6) ACCESS TO RECORDS.—The Corporation Board of Trustees shall not affect the powers (B) the amount in such Account that is or any of its duly authorized representatives of the Board of Trustees and shall be filled in needed for uses under paragraph (5)(A). shall have access to any books, documents, the same manner as the member whose de- (d) RECORDS AND AUDIT.— papers, and records of any recipient of assist- parture caused the vacancy. Any member ap- (1) IN GENERAL.—The account of the Cor- ance for the purpose of auditing and, exam- pointed to fill a vacancy occurring prior to poration shall be audited annually in accord- ining all funds received from the Corpora- the expiration of the term for which the ance with generally accepted auditing stand- tion. member’s predecessor was appointed shall be ards by independent certified public account- (7) PUBLIC INSPECTION.—The Corporation appointed for the remainder of such term. ants or independent licensed public account- shall maintain the information described in (d) POWERS.—The Board of Trustees shall— ants certified or licensed by a regulatory au- paragraphs (4), (5), and (6) at its offices for (1) establish investment policies, including thority of a State or other political subdivi- public inspection and copying for at least 3 guidelines, and retain independent advisers sion of the United States. The audits shall be years, according to such reasonable guide- to assist in the formulation and adoption of conducted at the place or places where the lines as the Corporation may issue. This pub- the investment guidelines; accounts of the Corporation are normally lic file shall be updated regularly. (2) retain independent investment man- kept. All books, accounts, financial records, SEC. 508. RAIL. INFRASTRUCTURE FINANCE agers to invest the assets of the Trust in a reports, files, and all other papers, things, or TRUST. manner consistent with such investment property belonging to or in use by the Cor- (a) ESTABLISHMENT.—The Board of Direc- guidelines; poration and necessary to facilitate the au- tors of the Rail Infrastructure Finance Cor- (3) invest assets in the Trust, pursuant to dits shall be made available to the person or poration shall establish the Rail Infrastruc- the policies adopted in paragraph (1); persons conducting the audits; and full fa- ture Finance Trust (hereafter in this section (4) pay administrative expenses of the cilities for verifying transactions with the referred to as the ‘‘Trust’’) as a trust domi- Trust from the assets in the Trust; balances or securities held by depositories, ciled in the State of Delaware before the (5) transfer money to the Rail Infrastruc- fiscal agents and custodians shall be afforded issuance of bonds under section 505(b). The ture Investment Account, upon request of to such person or persons. Trust shall, to the extent not inconsistent the Board of Directors of the Rail Infrastruc- (2) AUDIT REPORT.—The report of each such with this Act, be subject to the laws of the ture Finance Corporation, for bond repay- independent audit shall be included in the State of Delaware that are applicable to ment and administrative expenses; and annual report required by section 506. The trusts. The Trust shall manage and invest (6) develop a formula, subject to approval audit report shall set forth the scope of the the assets of the Rail Infrastructure Account by the Board of Directors before the issuance audit and include such statements as are described in section 507(c) that are trans- of bonds under section 505(b), for deter- necessary to present fairly the Corporation’s ferred to it by the Board in the manner set mining when there is a sufficient trust in- assets and liabilities, surplus or deficit, with forth in this section. come stream for purposes of paragraph (7); an analysis of the changes therein during the (b) NOT A FEDERAL AGENCY OR INSTRUMEN- and year, supplemented in reasonable detail by a TALITY.—The Trust is not a department, (7) transfer net spendable proceeds to the statement of the Corporation’s income and agency, or other instrumentality of the Gov- Board of Directors to be used for grants expenses during the year, and a statement of ernment of the United States and shall not under title VI of this Act after determining the sources and application of funds, to- be subject to title 31, United States Code. that adequate trust funds are available, or gether with the independent auditor’s opin- (c) BOARD OF TRUSTEES.— that there is a trust income stream suffi- ion of those statements. (1) ESTABLISHMENT.—The Trust shall have cient, to allow the Board of Trustees to meet (3) ACCOUNTING PRINCIPLES.—Not later than a Board of Trustees. its obligations under paragraphs (4) and (5). 1 year after the date of the enactment of this (2) COMPOSITION.— (e) REPORTING REQUIREMENTS AND FIDU- Act, the Corporation shall develop account- (A) APPOINTMENT.—The Board of Trustees CIARY STANDARDS.—The following reporting ing principles which shall be used uniformly shall consist of 5 members (hereafter in this requirements and fiduciary standards shall by all entities receiving funds under this title referred to as ‘‘Trustees’’) 3 of whom apply with respect to the Trust: Act, taking into account organizational dif- shall be appointed by a unanimous vote of (1) DUTIES OF THE BOARD OF TRUSTEES.— ferences among various categories of such the Board of Directors of the Rail Infrastruc- The Trust and each member of the Board of entities. Such principles shall be designed to ture Finance Corporation. Trustees shall discharge the duties of the account fully for all funds received and ex- (B) REPRESENTATION OF PARTICULAR INTER- Trust and the duties of the Trustee, respec- pended for purposes of this Act by such enti- ESTS.—The 3 members of the Board of Trust- tively (including the voting of proxies), with ties. ees shall be selected as follows: respect to the assets of the Trust solely in (4) REQUIREMENTS FOR RECIPIENTS.—Each (i) 1 from among persons who represent the the interests of the Rail Infrastructure Fi- entity receiving funds under this Act shall— interests of the States. nance Corporation and the programs funded (A) keep its books, records, and accounts (ii) 1 from among persons who represent under this title— in such form as may be required by the Cor- the interests of freight and passenger rail- (A) for the exclusive purposes of— poration; roads. (i) providing sufficient funds to repay (B) either— (iii) 1 from among persons who represent qualified rail infrastructure bonds issued by (i) undergo an annual audit by independent the interests of holders of qualified rail in- the Rail Infrastructure Finance Corporation, certified public accountants or independent frastructure bonds issued by the Rail Infra- (ii) funding the administrative costs of the licensed public accountants certified or li- structure Corporation. Rail Infrastructure Finance Corporation; censed by a regulatory authority of a State, (C) The 2 Trustees not appointed under (iii) defraying reasonable expenses of ad- which audit shall be in accordance with au- subparagraph (A) shall be elected directly by ministering the Trust; and diting standards developed by the Corpora- holders of qualified rail infrastructure bonds (iv) providing grants for rail capital tion; or issued by the Rail Infrastructure Corpora- projects under title VI of this Act; and (ii) submit a financial statement in lieu of tion through procedures established by the (B) with the care, skill, prudence, and dili- the audit required by subparagraph (A) if the Board of Trustees to represent the interests gence under the circumstances then pre- Corporation determines that the cost burden of such bond holders. The election shall be vailing that a prudent person acting in a like of such audit on such entity is excessive in held, and both members elected under this capacity and familiar with such matters light of the financial condition of such enti- subparagraph shall take office as Trustees, would use in the conduct of an enterprise of ty; and within 1 year after the initial issuance of a like character and with like aims; (C) furnish biennially to the Corporation a bonds under section 505(b). (C) by diversifying investments so as to copy of the audit report required pursuant to (3) MEMBERS NOT UNITED STATES OFFI- minimize the risk of large losses and to the subparagraph (B), as well as such other CIALS.—The members of the Board of Trust- avoid disproportionate influence over a par- information regarding finances (including an ees may not be considered officers or em- ticular industry or firm, unless under the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00118 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S15999 circumstances it is clearly prudent not to do vestment advisory, or other services nec- structure or services or the development of so; and essary for the proper administration of this passenger rail corridors (including high- (D) in accordance with Trust governing section. In the case of a contract for invest- speed rail corridors designated by the Sec- documents and instruments insofar as such ment advisory services, compensation for retary under section 104(d) of title 23, United documents and instruments are consistent such services may be provided on a fixed fee States Code) and provide significant public with this title. basis or on such other terms and conditions benefits. (2) PROHIBITIONS WITH RESPECT TO MEMBERS as are customary for such services. (b) PURPOSES ELIGIBLE FOR GRANT FUND- OF THE BOARD OF TRUSTEES.—A member of (2) QUORUM AND PROCEEDINGS.—Three mem- ING.—The purposes for which grants may be the Board of Trustees may not— bers of the Board of Trustees shall constitute made under subsection (a) for, or in connec- (A) deal with the assets of the Trust in the a quorum for the Board to conduct business. tion with, an intercity passenger rail capital Trustee’s own interest or for the Trustee’s Investment guidelines shall be adopted by a project described in that subsection are as own account; unanimous vote of the entire Board of Trust- follows: (B) act in an individual or in any other ca- ees. All other decisions of the Board of (1) Planning, including activities described pacity, in any transaction involving the as- Trustees shall be decided by a majority vote in section 26101(b)(1) of title 49, United sets of the Trust on behalf of a party (or rep- of the quorum present. All decisions of the States Code, and environmental impact stud- resent a party) whose interests are adverse Board of Trustees shall be entered upon the ies. to the interests of the Trust and the Rail In- records of the Board of Trustees. (2) New rail line development, including frastructure Finance Corporation; or (3) COMPENSATION OF TRUSTEES AND EM- right of way and infrastructure acquisition (C) receive any consideration for the Trust- PLOYEES.—The salaries of the Trustees are and construction of track and facilities. ee’s own personal account from any party subject to the limitations in section 502(h). (3) Track upgrades and restoration. dealing with the assets of the Trust. (4) COMPENSATION ARRANGEMENTS.—The (4) Highway-rail grade crossing improve- (3) EXCULPATORY PROVISIONS AND INSUR- Board of Trustees may compensate invest- ment or elimination. ANCE.—Any provision in an agreement or in- ment advisory service providers and employ- (5) Track, infrastructure, and facility relo- strument that purports to relieve a Trustee ees of the Trust on a fixed contract fee basis cation. from responsibility or liability for any re- or on such other terms and conditions as are (6) Acquisition, financing, or refinancing of sponsibility, obligation, or duty under this customary for such services. locomotives and rolling stock. Act shall be void. Nothing in this paragraph (5) FUNDING.—The expenses of the Trust (7) Intermodal and station facilities. shall be construed to preclude— and the Board of Trustees that are incurred (8) Tunnel and bridge repair or replace- (A) the Trust from purchasing insurance under this section shall be paid from the ment. for its Trustees or for itself to cover liability Trust. (9) Communications and signaling im- or losses occurring by reason of the act or (g) AUDIT AND REPORT.— provements. omission of a Trustee, if such insurance per- (1) REQUIREMENT FOR ANNUAL AUDIT.—The (10) Environmental impact mitigation. mits recourse by the insurer against the Trust shall annually engage an independent (11) Security improvements. Trustee in the case of a breach of a fiduciary qualified public accountant to audit the fi- (12) Supplemental funding for direct loans obligation by such Trustee; nancial statements of the Trust. or loan guarantees made under title V of the (B) a Trustee from purchasing insurance to (2) ANNUAL MANAGEMENT REPORT.—The Railroad Revitalization and Regulatory Re- cover liability under this section from and Trust shall submit an annual management form Act of 1976 (45 U.S.C. 821 et seq.). for his own account; or report to be included in the annual report of (13) Payment of credit risk premiums, to (C) an employer or an employee organiza- the Corporation required under section 506. lower rates of interest, or to provide for a tion from purchasing insurance to cover po- The management report under this para- holiday on principal payments on loan or fi- tential liability of 1 or more Trustees with graph shall include the following matters: nancing directly associated with rail capital respect to their fiduciary responsibilities, (A) A statement of financial position. projects described in paragraphs (1) through obligations, and duties under this section. (B) A statement of operations. (11). (4) TRUSTEES, BONDS.— (C) A statement of cash flows. (c) PROJECT SELECTION CRITERIA.—The (A) REQUIREMENT.—Each Trustee and every (D) A statement on internal accounting Board, in selecting the recipients of financial person who handles funds or other property and administrative control systems. assistance to be provided under subsection of the Trust (hereafter in this section re- (E) The report resulting from an audit of (a), shall— ferred to as ‘‘Trust official’’) shall be bonded. the financial statements of the Trust con- (1) require that each proposed project meet The bond shall provide protection to the ducted under paragraph (1). all safety requirements that are applicable Trust against loss by reason of acts of fraud (F) Any other comments and information to the project under law, and give a pref- or dishonesty on the part of any Trust offi- necessary to inform Congress about the oper- erence to any project determined by the cial, directly or through the connivance of ations and financial condition of the Trust. Board as having provided for particularly others. (h) ENFORCEMENT.—The Rail Infrastructure high levels of safety; (B) AMOUNT.—The amount of a bond for a Finance Corporation may commence a civil (2) give preference to projects with high Trustee under this paragraph shall be fixed action— levels of estimated ridership, increased at the beginning of each fiscal year of the (1) to enjoin any act or practice by the ontime performance, reduced trip time, addi- Trust by the Board of Directors of the Rail Trust, its Board of Trustees, or its employ- tional service frequency, or other significant Infrastructure Finance Corporation. The ees or agents that violates any provision of service enhancements as measured against amount may not be less than 10 percent of this title; or minimum standards developed under section the amount of the funds administered by the (2) to obtain other appropriate relief to re- 415 of this Act; Trust. dress such violations, or to enforce any pro- (3) encourage intermodal connectivity (C) UNLAWFUL CONDUCT.—It shall be unlaw- visions of this title. through projects that provide direct connec- ful for— (i) EXEMPTION FROM TAX FOR RAIL INFRA- tions between train stations, airports, bus (i) any Trust official to receive, handle, STRUCTURE FINANCE TRUST.—Subsection (c) terminals, subway stations, ferry ports, and disburse, or otherwise exercise custody or of section 501 of the Internal Revenue Code other modes of transportation; control of any of the funds or other property of 1986 is amended by adding at the end the (4) ensure a general balance across geo- of the Trust without being bonded as re- following new paragraph: graphic regions of the United States in pro- ‘‘(29) The Rail Infrastructure Finance quired by this subsection; viding such assistance and avoid a con- Trust established under section 408 of the Ar- (ii) any Trust official, or any other person centration of a disproportionate amount of rive 21 Act.’’Add to Title IV where appro- having authority to direct the performance such financial assistance in a single project, priate: of such functions, to permit such functions, State, or region of the country; or any of them, to be performed by any Trust TITLE VI—RAIL DEVELOPMENT GRANT (5) encourage projects that also improve official, with respect to whom the require- PROGRAMS freight or commuter rail operations; ments of this subsection have not been met; SEC. 601. INTERCITY PASSENGER RAIL DEVELOP- (6) ensure that each project is compatible and MENT GRANT PROGRAM. with, and is operated in conformance with— (iii) any person to procure any bond re- (a) GRANTS TO STATES.—The Board of Di- (A) plans developed pursuant to the re- quired by this subsection from any surety or rectors of the Rail Infrastructure Finance quirements of sections 135 of title 23, United other company or through any agent or Corporation may, by grant, provide financial States Code; broker in whose business operations such assistance to a State, a group of States, or (B) State rail plans under chapter 225 of person has any control or significant finan- the National Railroad Passenger Corporation title 49, United States Code; and cial interest, direct or indirect. for, or in connection with, 1 or more inter- (C) the national rail plan (if it is avail- (f) ADMINISTRATIVE MATTERS.— city passenger rail capital projects that— able); and (1) AUTHORITY.—The Board of Trustees (1) in accordance with section 22504(a)(5) of (8) favor the following kinds of projects: shall have the authority to make rules to title 49, United States Code, are listed in a (A) Projects that are expected to have a govern its operations, employ professional State rail plan approved for such State under significant favorable impact on air or high- staff, and contract with outside advisors (in- chapter 225 of such title; and way traffic congestion, capacity, or safety. cluding the Rail Infrastructure Finance Cor- (2) as determined by the Board, would pri- (B) Projects that have significant environ- poration) to provide legal, accounting, in- marily benefit intercity passenger rail infra- mental benefits.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00119 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16000 CONGRESSIONAL RECORD — SENATE November 25, 2003 (C) Projects that are— (A) in accordance with section 22504(a)(5) of State received the grant, such sums shall be (i) at a stage of preparation that all pre- title 49, United States Code, are listed in a returned to the Board for other freight rail commencement compliance with environ- State rail plan approved for such State under capital projects under this section at the dis- mental protection requirements has already chapter 225 of such title; and cretion of the Board. been completed; and (B) as determined by the Board, would pri- SEC. 603. HIGH PRIORITY PROJECTS GRANT PRO- (ii) ready to be commenced. marily benefit freight rail transportation in- GRAM. (D) Projects with positive economic and frastructure or services, but also would pro- (a) GRANTS TO STATES.—The Board of Di- employment impacts. vide significant public benefits; or rectors of the Rail Infrastructure Finance (E) Projects that encourage the use of posi- (2) for the payment of staff expenses asso- Corporation may, by grant, provide financial tive train control technologies. ciated with the management of State rail assistance to a State, a group of States, or (F) Projects that have commitments of programs and the development and updating the National Railroad Passenger Corporation funding from non-Federal Government of State rail plans under chapter 225 of title for intercity passenger rail and freight rail sources in a total amount that exceeds the 49, United States Code. infrastructure development projects that are minimum amount of the non-Federal con- (b) PURPOSES ELIGIBLE FOR GRANT FUND- designated as high priority projects under tribution required for the project. ING.—The purposes for which grants may be section 22505 of title 49, United States Code. (G) Projects that involve donated property made under subsection (a)(1) for, or in con- (b) PURPOSES.—The purposes for which a interests or services. nection with, a freight rail capital project grant may be made under this section are— (H) Projects that enhance national secu- are as follows: (1) in the case of an intercity passenger rity. (1) Planning, including activities described rail corridor development project, the same (d) AMTRAK ELIGIBILITY.—To receive a in section 26101(b)(1) of title 49, United purposes as are provided under section 601; grant under this section, the National Rail- States Code, and environmental impact stud- and road Passenger Corporation may enter into a ies. (2) in the case of a freight rail infrastruc- cooperative agreement with 1 or more States (2) New rail line development, including in- ture development project, the same purposes to carry out 1 or more projects on an ap- frastructure acquisition and construction of as are provided under section 602. (c) PREFERRED PROJECTS.—In selecting the proved State rail plan’s ranked list of pri- track and facilities. projects to receive financial assistance under ority freight and passenger rail capital (3) Track upgrades and restoration. this section, the Board shall give preference projects developed under section 22504(a)(5) (4) Highway-rail grade crossing improve- of title 49, United States Code, or may sub- to a project that— ment or elimination. (1) provides for use of positive train control mit an independent application for a grant (5) Track, infrastructure, and facility relo- for any eligible project under this section. technologies; cation. (2) provides for particularly high levels of Any such independent grant request shall be (6) Intermodal facilities. safety; subject to the same selection criteria as (7) Tunnel and bridge repair or replace- (3) increases intermodal connectivity by apply under subsection (b) to projects of ment. providing or improving direct connections States, except the criteria set forth in sub- (8) Communications and signaling im- between rail facilities and other modes of section (a) (1) and subparagraphs (A) and (B) provements. transportation; of subsection (b)(12). (9) Environmental impact mitigation. (4) assists the Board— (e) LIMITATIONS.— (10) Security improvements. (A) to achieve a general balance across ge- (1) 2-YEAR AVAILABILITY.—If any amount (11) Supplemental funding for direct loans ographic regions of the United States in the provided as a grant to a State or the Na- or loan guarantees made under title V of the awarding of grants under this section; and tional Railroad Passenger Corporation under Railroad Revitalization and Regulatory Re- (B) to avoid a concentration of a dispropor- this section is not obligated or expended for form Act of 1976 (45 U.S.C. 821 et seq.) for tionate amount of such financial assistance the purposes described in subsection (a) or projects described in the last sentence of sec- in a single project, State, or region of the (b) within 2 years after the date on which the tion 502(d) of that Act (45 U.S.C. 822(d)). country; State or Corporation received the grant, (12) Payment of credit risk premiums, to (5) has a significant favorable impact on such sums shall be returned to the Board for lower rates of interest, or to provide for a highway, aviation, or maritime capacity, other intercity passenger rail development holiday on principal payments on loan or fi- congestion, or safety; projects under this section at the discretion nancing directly associated with capital (6) improves the national intercity pas- of the Board. projects described paragraphs (1) through (9). senger rail system through higher levels of (2) SINGLE PROJECT AMOUNT.—In awarding (c) STATE GRANT FUNDING FORMULA.—Of estimated ridership, reduced trip time, in- grants to States or the National Railroad the total amount reserved for a grant pro- creased ontime performance, additional serv- Passenger Corporation for eligible projects gram under section 606(b)(2) for a fiscal year, ice frequency, or other significant service under this section, the Board shall limit the there shall be reserved for each State (to enhancements as measured against min- amount of any grant made for a particular fund grants made to such State under this imum standards developed under section 415 project in a fiscal year to not more than 30 section) the amount determined for such of this Act; percent of the total amount of the funds State in accordance with a formula pre- (7) has positive economic and employment available for grants under this section for scribed by the Board to weigh equally for impacts; that fiscal year. each State— (8) has significant environmental benefits; (9) is— (3) AMTRAK.—The total amount of grants (1) the number of rail miles in active use in (A) at the stage of preparation that all pre- made under this section solely to the Na- the State; commencement compliance with environ- tional Railroad Passenger Corporation in a (2) the number of rail cars loaded in the mental protection requirements has been fiscal year may not exceed 50 percent of the State; total amount available under this section for completed; and (3) the number of rail cars unloaded in the (B) ready to be commenced; all grants in that fiscal year. State; and (10) has received financial commitments (f) FUNDING.—Amounts reserved for grants (4) the number of railroad and public road and other support from non-Federal entities for a fiscal year under section 606(b)(1) shall grade crossings in the State. such as States, local governments, and pri- be available for grants under this section. (d) PERIOD OF AVAILABILITY FOR GRANTS.— vate entities; (e) PUBLIC BENEFIT.—The term ‘‘public ben- (1) THREE-YEAR RESERVATION.—The amount (11) has commitments of funding from non- efit’’ means a benefit accrued to the public reserved for grant to a State under section Federal Government sources in a total in the form of enhanced mobility of people or (c) in a fiscal year shall be available for amount that exceeds the minimum amount goods, environmental protection or enhance- grant to such State in such fiscal year and of the non-Federal contribution required; ment, congestion mitigation, enhanced trade the 2 successive fiscal years. and and economic development, improved air (2) CANCELLATION AT END OF PERIOD.—At (12) involves donated property interests or quality or land use, more efficient energy the end of the third of the 3 successive fiscal services. use, enhanced public safety or security, re- years, the reservation of any part of the (d) AMTRAK ELIGIBILITY.—To receive a duction of public expenditures due to im- amount for a State that has not been award- grant under this section, the National Rail- proved transportation efficiency or infra- ed in a grant to such State shall be canceled, road Passenger Corporation may submit an structure preservation, and any other posi- and the amount of the canceled reservation— independent application or may enter into a tive community effects as defined by the (A) shall be merged with the funds reserved cooperative agreement with 1 or more States Secretary. for the grant program under section 606(b)(2) to carry out 1 or more high priority projects SEC. 602. FREIGHT RAIL INFRASTRUCTURE DE- for the next fiscal year; and designated under section 22506 of title 49, VELOPMENT GRANT PROGRAM. (B) shall be reserved for each State in ac- United States Code. Any such independent (a) GRANTS TO STATES.—The Board of Di- cordance with the formula provided under grant request shall be subject to the same rectors of the Rail Infrastructure Finance this section. conditions as apply under this section to Corporation shall, by grant, provide finan- (e) TWO-YEAR AVAILABILITY.—If any projects of States. cial assistance to a State or group of amount provided as a grant to a State under (e) LIMITATIONS.— States— this section is not obligated or expended for (1) TWO-YEAR AVAILABILITY.—If any amount (1) for, or in connection with, 1 or more the purposes described in subsection (a) or provided as a grant to a State or the Na- freight rail capital projects that— (b) within 2 years after the date on which the tional Railroad Passenger Corporation under

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00120 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16001 this section is not obligated or expended for ‘‘(1) is not physically connected to rail sys- (A) any compensation for such use; the purposes for which the grant is made tems in the continental United States; and (B) assurances regarding the adequacy of within 2 years after the date on which the ‘‘(2) may not otherwise qualify for assist- infrastructure capacity to accommodate State or the National Railroad Passenger ance under section 601 or 602 due to the con- both existing and future freight and pas- Corporation received the grant, such sums straints imposed on the railway infrastruc- senger operations; and shall be returned to the Board for other high ture in that State due to the unique charac- (C) an assurance by the railroad that col- priority projects under this section at the teristics of the geography of that State or lective bargaining agreements with the rail- discretion of the Board. other relevant considerations, as determined road’s employees (including terms regulating (2) SINGLE PROJECT AMOUNT.—In awarding by the Board. the contracting of work) will remain in full grants to States for eligible projects under (g) APPLICATIONS.—To seek a grant under force and effect according to their terms for this section, the Board shall limit the this title, a State or, in the case of a grant work performed by the railroad on the rail- amount of any grant made for a particular under section 601 or 603, the National Rail- road transportation corridor; and project in a fiscal year to not more than 30 road Passenger Corporation shall submit an (2) the applicant agrees to comply with— percent of the total amount of the funds application for the grant to the Board. The (A) the standards of section 24312 of title available for grants under this section for application shall be submitted at such time 49, United States Code, as such section was that fiscal year. and contain such information as the Board in effect on September 1, 2003, with respect (f) FUNDING.—Amounts reserved for grants requires. to the project in the same manner that the for a fiscal year under section 606(b)(3) shall (h) PROCEDURES FOR GRANT AWARD.—The National Railroad Passenger Corporation is be available for grants under this section. Board shall prescribe procedures and sched- required to comply with those standards for SEC. 604. GRANT PROGRAM REQUIREMENTS AND ules for the awarding of grants under this construction work financed under an agree- LIMITATIONS. title, including application and qualification ment made under section 24308(a) of that (a) AUTHORIZED USES.—The proceeds of a procedures and a record of decision on appli- title; and grant made for a project under this title may cant eligibility. The procedures shall include (B) the protective arrangements estab- be used to defray the costs of the project or the execution of a grant agreement between lished under section 504 of the Railroad Revi- to reimburse the recipient for costs of the the applicant and the Board. The Board shall talization and Regulatory Reform Act of 1976 project paid by the recipient. issue a final rule establishing the procedures (45 U.S.C. 836) with respect to employees af- (b) NON-FEDERAL CONTRIBUTION.—The pro- not later than 90 days after the date on fected by actions taken in connection with ceeds of a grant under this title may be re- which a sufficient number of the members of the project to be financed in whole or in part leased upon receipt by the Board of Directors Board to constitute a quorum has taken of- by the Rail Infrastructure Finance Corpora- of the Rail Infrastructure Finance Corpora- fice. tion. tion of cash payment by a non-Federal Gov- (i) DOMESTIC BUYING PREFERENCE.— (c) REPLACEMENT OF EXISTING INTERCITY ernment source, or 1 or more such sources (1) REQUIREMENT.— PASSENGER RAIL SERVICE.— jointly, in an amount not less than the (A) IN GENERAL.—In carrying out a project (1) COLLECTIVE BARGAINING AGREEMENT FOR amount equal to 20 percent of the amount of funded in whole or in part with a grant under INTERCITY PASSENGER RAIL PROJECTS.—Any the grant disbursed. The cash payment may this title, the grant recipient shall purchase entity providing intercity passenger railroad not be derived, directly or indirectly, from only— transportation that begins operations after Federal funds. Amounts received under this (i) unmanufactured articles, material, and the date of enactment of this Act on a subsection shall be credited to the Rail In- supplies mined or produced in the United project funded in whole or in part by grants frastructure Investment Account established States; or made under this title and replaces intercity under section 507(e). (ii) manufactured articles, material, and rail passenger service that was provided by (c) PREFERENCE INVOLVING DONATED PROP- supplies manufactured in the United States another entity as of such date shall enter ERTY INTERESTS AND SERVICES.—In selecting substantially from articles, material, and into an agreement with the authorized bar- projects for grant funding under this title, supplies mined, produced, or manufactured gaining agent or agents for employees of the the Board may give preference to projects in the United States. predecessor provider that— (B) DE MINIMIS AMOUNT.—Subparagraph (1) that involve donated right-of-way, property, (A) gives each qualified employee of the applies only to a purchase in an total or in-kind services by a public sector or pri- predecessor provider priority in hiring ac- amount that is not less than $1,000,000. vate sector entity. The value of a donation cording to the employee’s seniority on the (2) EXEMPTIONS.—On application of a re- under this subsection may not be counted to- predecessor provider for each position with cipient, the Board may exempt a recipient ward satisfaction of the requirement in sub- the replacing entity that is in the employ- from the requirements of this subsection if section (b). ee’s craft or class and is available within 3 the Board decides that, for particular arti- (d) FLEXIBILITY.—Notwithstanding any years after the termination of the service cles, material, or supplies— other provision of this title, amounts made being replaced; available under section 506 may be combined (A) such requirements are inconsistent with the public interest; (B) establishes a procedure for notifying and used for projects that significantly ben- such an employee of such positions; efit either freight rail service, intercity pas- (B) the cost of imposing the requirements is unreasonable; or (C) establishes a procedure for such an em- senger rail service, or both. ployee to apply for such positions; and (e) SUBALLOCATION; PUBLIC-PRIVATE PART- (C) the articles, material, or supplies, or the articles, material, or supplies from (D) establishes rates of pay, rules, and NERSHIPS.— working conditions. (1) IN GENERAL.—A metropolitan planning which they are manufactured, are not mined, (2) IMMEDIATE REPLACEMENT SERVICE.— organization, State transportation depart- produced, or manufactured in the United States in sufficient and reasonably available (A) NEGOTIATIONS.—If the replacement of ment, or other project sponsor may enter preexisting intercity rail passenger service into an agreement with any public, private, commercial quantities and are not of a satis- factory quality. occurs concurrent with or within a reason- or nonprofit entity to cooperatively imple- able time before the commencement of the ment any project funded with a grant under (3) UNITED STATES DEFINED.—In this sub- section, the term ‘‘the United States’’ means replacing entity’s rail passenger service, the this title. replacing entity shall give written notice of (2) FORMS OF PARTICIPATION.—Participation the States, territories, and possessions of the its plan to replace existing rail passenger by an entity under paragraph (1) may consist United States and the District of Columbia. service to the authorized collective bar- of— SEC. 605. STANDARDS AND CONDITIONS. gaining agent or agents for the employees of (A) ownership or operation of any land, fa- (a) OPERATORS DEEMED RAIL CARRIERS AND the predecessor provider at least 90 days be- cility, locomotive, rail car, vehicle, or other EMPLOYERS FOR CERTAIN PURPOSES.—A per- fore the date on which it plans to commence physical asset associated with the project; son that con ducts rail operations over rail (B) cost-sharing of any project expense; infrastructure constructed or improved with service. Within 5 days after the date of re- (C) carrying out administration, construc- funding provided in whole or in part in a ceipt of such written notice, negotiations be- tion management, project management, grant made under this title tween the replacing entity and the collective project operation, or any other management (1) shall be considered an employer for pur- bargaining agent or agents for the employees or operational duty associated with the poses of the Railroad Retirement Act of 1974 of the predecessor provider shall commence project; and (45 U.S.C. 231 et seq.); and for the purpose of reaching agreement with (D) any other form of participation ap- (2) shall be considered a carrier for pur- respect to all matters set forth in subpara- proved by the Board. poses of the Railway Labor Act (43 U.S.C. 151 graphs (A) through (D) of paragraph (1). The (3) SUB-ALLOCATION.—A State may allocate et seq.). negotiations shall continue for 30 days or funds under this section to any entity de- (b) GRANT CONDITIONS.—The Board of Di- until an agreement is reached whichever is scribed in paragraph (1). rectors of the Rail Infrastructure Finance sooner. If at the end of 30 days the parties (f) SPECIAL TRANSPORTATION CIR- Corporation shall require as a condition of have not entered into an agreement with re- CUMSTANCES.—In carrying out this section, making any grant under this title that in- spect to all such matters, the unresolved the Board shall allocate an appropriate por- cludes the improvement or use of rights-of- issues shall be submitted for arbitration in tion of the amounts available under section way owned by a railroad that— accordance with the procedure set forth in 601 or 602 to provide appropriate transpor- (1) a written agreement exist between the subparagraph (B). tation-related assistance in any State in applicant and the railroad regarding such (B) ARBITRATION.—If an agreement has not which the rail transportation system— use and owner ship, including— been entered into with respect to all matters

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00121 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16002 CONGRESSIONAL RECORD — SENATE November 25, 2003 set forth in subparagraphs (A) through (D) of passenger rail development grant program Today, America’s freight railroads paragraph (1) as described in subparagraph under section 601, 40 percent. carry 16 percent of the nation’s freight (A) of this paragraph, the parties shall select (2) FREIGHT INFRASTRUCTURE DEVELOPMENT by tonnage and intercity passenger rail an arbitrator. If the parties are unable to GRANT PROGRAM.—For the freight infrastruc- carriers roughly 23 million passenger agree upon the selection of such arbitrator ture development grant program under sec- within 5 days, either or both parties shall no- tion 602, 40 percent. annually. But, the ability of our pas- tify the National Mediation Board, which (4) HIGH PRIORITY PROJECTS GRANT PRO- senger and freight rail systems to gen- shall provide a list of seven arbitrators with GRAM.—For the high priority projects grant erate the sufficient investment capital experience in arbitrating rail labor protec- program under section 603, 20 percent. needed to maintain this market share, tion disputes. Within 5 days after such noti- TITLE VII—AUTHORIZATION OF or expand it to handle the expected in- fication, the parties shall alternately strike APPROPRIATIONS creases in passenger and freight traffic names from the list until only 1 name re- over the next 20 years, is limited or in mains, and that person shall serve as the SEC. 701. AUTHORIZATION OF APPROPRIATIONS. There is authorized to be appropriated jeopardy. According to the America As- neutral arbitrator. Within 45 days after se- sociation of State Highway and Trans- lection of the arbitrator, the arbitrator shall $5,000,000 for fiscal year 2004 for the estab- conduct a hearing on the dispute and shall lishment and payment of initial administra- portation Officials’ (ASSHTO) ‘‘Freight render a decision with respect to the unre- tive costs of the Rail Infrastructure Finance Rail Bottom Line Report,’’ the nation’s solved issues among the matters set forth in Corporation, including the Rail Infrastruc- freight railroads will need an addi- subparagraphs (A) through (D) of paragraph ture Finance Trust. tional $2.65 billion of public sector an- (1). This decision shall be final, binding, and Mr. CARPER. Mr. President, I rise nual capital investment over the next conclusive upon the parties. The salary and today to join Senators HOLLINGS, COL- 20 years above and beyond what they expenses of the arbitrator shall be borne LINS, SPECTER, JEFFORDS and LAUTEN- can finance themselves just to main- equally by the parties; all other expenses BERG in introducing ‘‘ARRIVE 21,’’ the tain their current share of the freight shall be paid by the party incurring them. American Railroad Revitalization, In- tonnage. (3) SERVICE COMMENCEMENT.—A replacing vestment, and Enhancement Act of the entity under this subsection shall commence Without this additional investment, service only after an agreement is entered 21st Century. ARRIVE 21 is a com- freight traffic is likely to shift from into with respect to the matters set forth in prehensive proposal that creates a new rail to our highways, resulting in an subparagraphs (A) through (D) of paragraph public/private partnership to fund rail additional 450 million tons of freight (1) or the decision of the arbitrator has been infrastructure development, reauthor- and 15 billion truck VMT (Vehicle rendered. izes and improves Amtrak, and en- Miles Traveled) on our roads and $162 (4) SUBSEQUENT REPLACEMENT OF SERVICE.— hances Federal and State rail policy billion in increased shipper costs, $238 If the replacement of existing rail passenger and planning efforts. service takes place within 3 years after the billion in increased highway user costs, replacing entity commences intercity pas- As our Nation faces a mobility crisis and approximately $20 billion in direct senger rail service, the replacing entity and of staggering proportions, with freight additional highway infrastructure the collective bargaining agent or agents for movements expected to double and our costs. Alternatively, ASSHTO has con- the employees of the predecessor provider highways and airways already overbur- cluded that with a public investment of shall enter into an agreement with respect dened with congestion, ARRIVE 21 will $4 billion annually in freight rail infra- to the matters set forth in subparagraphs (A) give our States a new and powerful tool structure over the next 20 years, through (D) of paragraph (1). If the parties to unlock the potential of intercity freight rail’s tonnage share would in- have not entered into an agreement with re- passenger rail, bringing high-speed rail spect to all such matters within 60 days after crease 1 percentage point to 17 percent. the date on which the replacing entity re- to viable corridors across the country This shift would thereby relieve our places the predecessor provider, the parties while providing capital funding for highways of an estimated 600 million shall select an arbitrator using the proce- freight rail projects that deliver public tons of freight traffic and 25 billion dures set forth in paragraph (2)(B), who benefits. Today’s passenger and freight VMT, while saving shippers $239 billion shall, within 20 days after the commence- railroads are already essential compo- and highways users $397 billion, and re- ment of the arbitration, conduct a hearing nents of our surface transportation ducing direct highway infrastructure and decide all unresolved issues. This deci- system and I believe that greater use of costs by $17 billion. sion shall be final, binding, and conclusive rail offers one of the best opportunities upon the parties. For intercity passenger rail, (d) INAPPLICABILITY TO CERTAIN RAIL OPER- to augment the capacity of our exist- ASSHTO similarly concludes that ATIONS.—Nothing in this section applies to— ing transportation network, while ben- roughly $3 billion in annual public sec- (1) commuter rail passenger transportation efiting the environment and reducing tor investment over the next 20 years (as defined in section 24102(4) of title 49, our dependency on foreign oil. is needed to expand intercity passenger United States Code) operations of a State or Historically, railroads have been rail services and advance the many via- local government authority (as those terms built, maintained and operated outside ble high speed rail corridors that could are defined in section 5302(11) and (6), respec- of the publicly funded programs that fi- tively, of that title) eligible to receive finan- reduce highway and aviation conges- cial assistance under section 5307 of that nance our other transportation modes, tion. The Texas Transportation Insti- title, or to its contractor performing services relying almost exclusively on the pri- tute’s ‘‘2003 Urban Mobility Report,’’ in connection with commuter rail passenger vate sector to fund their infrastruc- which looks at transportation mobility operations (as so defined); or ture. However, today’s railroads face in 75 cities of varying sizes, concludes (2) the Alaska Railroad or its contractors. restricted access to capital and capac- that the average annual transportation (3) The National Railroad Passenger Cor- ity constraints that limit service qual- poration’s access rights to railroad rights of delay time per person climbed from ‘‘16 way and facilities under current law for ity and expansion, all the while facing hours in 1982 to 60 hours in 2001’’ due to projects funded under this title where train ever-growing modal competition fi- the congestion of our surface system. operating speeds do not exceed 79 miles per nanced by federally funded trust funds. High-quality and high-speed intercity hour. If rail is to remain viable or increase passenger service, especially in inter- SEC. 606. GRANT PROGRAM FUNDING. its share of the intercity passenger and city corridors of 500 miles or less where (a) ANNUAL RESERVATION OF FUNDS.—Each freight markets—necessary develop- rail can offer competitive trip times, fiscal year, the Board of directors of the Rail ments if we are to reach other trans- offers a tremendous opportunity to re- Infrastructure Finance Corporation Board portation and public policy goals in- lieve such congestion by shifting trav- shall reserve for grants under each of the grant programs authorized under sections cluding highway infrastructure preser- elers who current drive and fly onto 501, 502, and 503 the amount determined by vation, highway and air congestion re- trains. Today, roughly 80 percent off multiplying the percent applicable to the lief, energy efficiency, environmental all trips of more than 100 miles are less program under subsection (b) times the stewardship and smart growth develop- than 500 miles in length. Successful amount of the net spendable proceeds (as de- ment—then the pubic sector, through rail corridors in California, the Pacific fined under section 507(c)(7)) that is available arm’s length voluntary partnerships Northwest, and in the Northeast have for such fiscal year. with private railroads, must play a shown that rail can be viable option for (b) APPLICABLE PERCENT.—The percent ap- more active role in financing the devel- travelers in such markets, capturing plicable to a grant program under subsection (a) is as follows: opment of freight and passenger rail in- significant market share and in same (1) INTERCITY PASSENGER RAIL DEVELOP- frastructure, as it has with all other cases becoming the dominate mode MENT GRANT PROGRAM.—For the intercity modes. when frequent and high-quality service

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00122 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16003 is offered. Where intercity passenger freight mobility. Such investment will RIVE 21 authorizes $515 million in 2004 rail is successful, congestion in our air- revitalize the U.S. rail supply industry for rail security threat assessments ports and on our highways is reduced, and create thousands of jobs. Accord- and grants through the Department of smart development is induced, jobs are ing to U.S. Transportation Secretary Homeland Security. created and citizens’ safety and quality Mineta, every $1 billion invested in In total, ARRIVE 21 provides the of life are improved. transportation infrastructure creates needed funding for the more than $5 Theses facts lead to the obvious con- roughly 47,500 jobs. That means AR- billion annual shortfall in U.S. rail in- clusion that leveraging modest public RIVE 21 stands to create roughly 2 mil- frastructure investment cited by investment in our rail system will reap lion jobs, if enacted. AASHTO Bottom Line Report without benefits to our entire surface transpor- ARRIVE 21 reauthorizes and reforms involving the Highway Trust Fund or tation system and to our Nation as a Amtrak. Designed to improve upon sapping funds away from other impor- whole. In my State of Delaware, we Amtrak’s current congressional and tant transportation priorities. This bill have clearly seen the value that high- State funding processes, our bill au- will provide our States and the Nation quality passenger and freight rail serv- thorizes approximately $1.5 billion an- with a fiscally responsible and innova- ice brings and we have made signifi- nually for 6 years to Amtrak for the tive opportunity to enhance our entire cant investments to upgrade both Am- basic capital and operating needs re- transportation system. We owe it to trak facilities and infrastructure and quired to run and maintain the current the American people to support this enhance freight capacity for the rail- system. In addition to these funds, the bill and move towards the type of high- roads that serve Delaware industries. States and Amtrak can pursue major quality, high-speed intercity passenger But despite of all the good reasons to capital improvements and equipment rail service that Americans desire and invest in our railroad infrastructure, acquisition through RIFCO, with re- deserve, while meeting the ever-grow- Delaware and other States are limited ductions in Amtrak’s capital author- ing demands that trade and our econ- in what they can do on there own with- izations for projects funded through omy are placing on our freight system. out the benefit of the financing part- RIFCO capital grants. Through this I ask my colleagues to join me in sup- nership that our Federal Government process, the amount needed for annual porting ARRIVE 21. provides the State for all other trans- Amtrak appropriation for capital will Mr. JEFFORDS. Mr. President, I portation investments. ARRIVE 21 is be reduced over the life of the reau- have frequently reiterated my convic- designed to change that. thorization, as RIFCO begins to finance tion that investment in transportation ARRIVE 21 will empower our States a growing share of Amtrak’s capital is a means to an end. Our national to make rational investments in our needs. As is the case today, operating transportation policy must be designed rail system when such investments costs on long distance trains will be to serve the public good. In my view, provide significant pubic benefits. covered by Amtrak’s annual appropria- the outcomes we seek are a strong Through the creation of the Rail Infra- tion, while States will share the costs economy, safe and healthy commu- structure Finance Corporation (RIFCO) with Amtrak for operations of short nities, and a clean environment. A bal- a non-profit, non-Federal, congression- distance corridors. anced transportation system, including ally-chartered corporation that can For such shot distance corridors, AR- a strong freight and passenger rail sys- issue $30 billion in tax-credit bonds RIVE 21 infuse fairness into the cur- tem, is necessary for us to attain these over 6 years, States will have a new rent system by requiring parity be- goals. partner to assist them in undertaking tween Amtrak and all States for cost As ranking member of the Com- rail capital projects. RIFCO will award, sharing, putting an end to disparate mittee on Environment and Public using a portion of the proceeds from treatment among the States that con- Works, I have been highly involved in the bond issuance, discretionary cap- tract with Amtrak to provide corridor the Senate’s effort to reauthorize the ital matching grants to States and Am- service. Furthermore, it authorizes a nation’s surface transportation pro- gram. Over the past two years, I have trak for high-speed rail and intercity study of new methodologies to deter- traveled around the country, visiting passenger rail projects and State for- mine Amtrak routes and services while local examples of national transpor- mula matching grants for freight cap- defining the national passenger rail tation challenges. I have heard cri- ital projects. Prior to issuing grants, a system based on existing service and tiques and suggestions from dozens of portion of the bond proceeds will be de- high-speed rail corridors. ARRIVE 21 transportation officials, users, and ad- posited in a secure and continually also requires a whole host of new re- forms including accounting trans- vocates. monitored repayment fund managed by In order to best serve the needs of parency measures, the establishment of the RIFCO investment trust to retire this country, we must redouble our in- a quarterly grant process for Amtrak the debt over the life of the bonds. vestment in an efficient, intermodal Passenger and freight rail projects el- through the U.S. Department of Trans- transportation system. I have often ex- igible for funding through RIFCO in- portation to ensure accountability, and pressed my view that the success of our clude planning and environmental re- the creation of new service metrics surface transportation program rests view, rail line rehabilitation, upgrades that will improve the monitoring and on four fundamental ‘pillars’: and development, safety and security quantification of Amtrak service per- First, asset management. We must projects, passenger equipment acquisi- formance and quality. maintain and preserve existing infra- tion, station improvements, and inter- ARRIVE 21 helps to coordinate rail- structure. Second, we must enhance ac- modal facilities development. In order planning efforts across the U.S. at the cess and mobility, particularly for to receive grants, States must prepare national and State level and increases Americans living in our most con- a State rail plan and provide a 20 per- the Federal Railroad Administration’s gested urban areas. cent non-Federal match to RIFCO, advocacy role in promoting a safe, se- The third pillar is freight and trade. thereby replicating the cost sharing re- cure, efficient, environmentally sound We need new and improved facilities to lationship our States currently have rail transportation system nationwide. accommodate the quantity of goods for investments in other modes. The bill directs the Federal Govern- moving through our system. ARRIVE 21 will promote jobs and ment to develop a national rail plan in Fourth, I believe that rail is the final economic growth through the rehabili- coordination with State rail plans and component of a successful surface tation and expansion of rail infrastruc- creates a rail cooperative research pro- transportation system. We are not cur- ture, the manufacture and procure- gram through the National Academies rently meeting the nation’s freight and ment of new rail equipment and the en- of Sciences. It also authorizes addi- passenger rail needs. We must invest in hancement of mobility and develop- tional funds for planning of high-speed a modern national rail system, com- ment in and around or cities and rail projects through the U.S. Sec- parable to our highway and aviation towns. Our bill provides a total $42 bil- retary of Transportation and addresses systems. The bill that we are intro- lion investment in U.S. rail infrastruc- rail safety needs by authorizing fund- ducing today will help us achieve that ture and service to expand high-speed ing for emergency passenger safety im- goal. passenger rail in congested corridors, provement projects. In light of the se- The American Railroad Revitaliza- strengthen Amtrak, and improve curity risks facing our railroads, AR- tion, Investment, and Enhancement

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00123 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16004 CONGRESSIONAL RECORD — SENATE November 25, 2003 Act of the 21st Century (ARRIVE 21) rewards in the form of reduced conges- as a result of being the most densely strives to provide sustainable, mean- tion, improved environmental quality, populated State in the Nation. New ingful, and continuous funding oppor- and improved mobility options for our Jersey needs federal assistance for pas- tunities for states that want to im- nation’s travelers. ARRIVE 21 encour- senger rail infrastructure. But New prove and expand their rail systems. ages States, and the Federal Govern- Jersey is not alone. As metropolitan Currently, the federal government pro- ment, to more fully integrate freight areas across the country continue to vides few funding sources to assist and passenger rail into the surface swell with people, our roads and air- states in their efforts to maintain and transportation system. Improved rail ports become more and more con- improve freight and passenger rail planning policy, at both the Federal gested. I think the prudence of increas- service. This bill creates a nonprofit, and State levels, will enhance the effi- ing our investment in another way to public-private partnership—the Rail ciency and longevity of our transpor- move people—passenger rail—has be- Infrastructure Finance Corporation tation system and will promote safe, come more and more obvious. And AR- (RIFCO)—with the authority to issue efficient, and environmentally sound RIVE–21 provides this investment op- $30 billion in tax-credit bonds over six transportation options. portunity. years. With the resulting revenue, Mr. LAUTENBERG. Mr. President, I The benefits of rail service are not RIFCO will award capital grants to am proud to be a cosponsor of AR- limited to urban areas. In rural towns states and to Amtrak. RIVE–21. I believe rail is a vital compo- across America, passenger trains may My State of Vermont has long dis- nent of our national transportation be the only option for intercity travel played a commitment to maintaining system, and investment in our Nation’s for many people. From 1987 through 2000, I was the an effective and efficient freight and rail infrastructure is necessary for our Chairman or Ranking Member of the passenger rail system. This legislation economy, our security, and the effec- Senate Appropriations Subcommittee would provide Vermont a significant tive and safe movement of people and on Transportation. During that time, I new source of revenue to fund capital goods in our country. helped to secure 10.3 billion dollars in The importance of rail service be- projects such as rail line rehabilita- operating funds for AMTRAK and an came apparent in the Northeast long tion, safety and security projects, and additional 2.2 billion dollars in tax-ad- development of intermodal facilities. ago, as we dealt with the myriad trans- vantaged financing for capital im- In fact, grants awarded by RIFCO could portation planning and congestion provements. Unfortunately, during be used to reimburse States for the issues that many other States are now that time, we have not been able to capital investments they’ve already just facing. These States are joining us make the capital investments nec- made, a provision that is particularly Northeasterners in looking to the Fed- essary to bring Amtrak’s infrastruc- helpful to States, like Vermont, that eral Government to provide the leader- ture up to a state of good repair. have invested State money into eligi- ship needed to ensure that passenger ARRIVE–21 gives the Federal Gov- ble projects. rail is given the priority it deserves. ernment the impetus to step up and For Amtrak, this legislation intro- It took Federal money, not just gaso- take charge with a strong program to duces financial and policy commit- line taxes, to build the Dwight D. Ei- invest in our rail infrastructure. The ments to dramatically improve pas- senhower Interstate Highway System. States are interested, the traveling senger rail service in this country. We It took Federal money to build our na- public is interested. This kind of in- envision a future that includes a tional aviation system. vestment will lay the tracks for the fu- healthy and efficient passenger rail Here in the Northeast, the first part ture of all Americans to have travel op- system and provide the resources to of the country to become densely popu- tions, provide a national security role, move Amtrak in that direction. lated, we faced congestion problems and support our economy. ARRIVE 21 authorizes approximately long ago, and passenger rail service be- For these reasons, I am proud to co- $1.5 billion per year, for six years, for came a mainstay. In the Northeast, we sponsor ARRIVE–21. capital and operating expenses. We rely heavily on Amtrak’s high-speed have under-funded Amtrak for too service between Boston and Wash- By Mr. SPECTER (for himself long. This funding level will provide ington, D.C. The Northeast Corridor and Mrs. BOXER): Amtrak the resources it needs to ad- serves cities with four of the Nation’s S. 1963. A bill to amend the Commu- dress urgent infrastructure needs and seven most congested airports: Logan, nications Act of 1934 to protect the pri- system-wide service improvements. LaGuardia, Newark, and Reagan Na- vacy right of subscribers to wireless Amtrak will also benefit from provi- tional. Amtrak carries more passengers communication services; to the Com- sions in this bill that encourage long- between New York and Washington mittee on Commerce, Science, and term sustainability and enhanced oper- than all of the airlines combined and, Transportation. Mr. SPECTER. Mr. President, I rise ations. ARRIVE 21 requires improved unlike airline passengers, rail travelers today to introduce the Wireless Con- accounting procedures and oversight. are able to stop in Trenton and New- sumer Privacy Protection Act. Additionally, states that currently ark, New Jersey, and in other places As every Senator is aware, con- share responsibility with Amtrak for along the way. sumers today rely on their wireless supporting services through or within Next month, New Jersey Transit will telephones as a vital and important their states will see changes to equal- open for service a new rail station in means of communication. Wireless ize their cost burden. This bill requires Secaucus, NJ. As a result of this open- telephones enable families to stay con- that Amtrak, in collaboration with the ing, more than 15,000 cars will be di- nected, permit commerce to be con- Department of Transportation, adopt verted from our roads each day by 2010. ducted anywhere at any time, and pro- fair and uniform standards for cost That will reduce carbon monoxide vide a vital link in the event of an sharing on short-distance services that emissions by nearly 277,000 pounds each emergency. Some people have even states contract with Amtrak to pro- year. New Jersey riders who switch to abandoned traditional telephones and vide. rail because of this one station will cut now use their wireless phones as their ARRIVE 21 also directs an inde- their gasoline consumption by 1.3 mil- primary phone service. In fact, just pendent study to research Amtrak’s lion gallons each year. this month, the Federal Communica- current and past procedures for deter- Also, in this post-9–11 environment tions Commission began requiring mining intercity passenger rail routes we have a new perspective about the number portability for wireless phones and services. The study will rec- national security interest in ensuring so that consumers, if they wish, can ommend changes to that process to im- that there is more than one way to get make their wireless phone their only prove the efficiency, accessibility, and from here to there, and this includes phone. effectiveness of our national rail serv- passenger rail. September 11 under- The wireless industry is on the verge ice. scored just how important passenger of introducing a ‘‘wireless white pages’’ I have long been a strong advocate rail is to America’s economy and secu- service, and though this step could for rail. I firmly believe that nation- rity. have positive benefits, it raises con- wide investment in freight and pas- New Jersey’s economy is so depend- cerns about how consumers’ expecta- senger rail infrastructure will invite ent on passenger rail and mass transit tion of privacy will be protected. The

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00124 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16005 legislation I am introducing today sent that the text of the bill be printed ‘‘(9) WIRELESS CONSUMER PRIVACY PROTEC- along with Senator BOXER ensures that in the RECORD. TION.— consumers expectations will be pre- There being no objection, the bill was ‘‘(A) CURRENT SUBSCRIBERS.—A provider of served. ordered to be printed in the RECORD, as commercial mobile services, or any direct or follows: indirect affiliate or agent of such a provider, An important reason that Americans may not include the wireless telephone num- increasingly trust their cell phone S. 1963 ber information of any current subscriber in service is that they have a great deal of Be it enacted by the Senate and House of Rep- any wireless directory assistance service privacy on their cell phone numbers. resentatives of the United States of America in database unless— For more than 20 years of cellular serv- Congress assembled, ‘‘(i) the mobile service provider provides a ice, consumers have become accus- SECTION 1. SHORT TITLE. conspicuous, separate notice to the sub- tomed to not having their wireless This Act may be cited as the ‘‘Wireless 411 scriber informing the subscriber of the right phone numbers available to the public. Privacy Act’’. not to be listed in any wireless directory as- SEC. 2. FINDINGS. sistance service; and The protection of wireless telephone ‘‘(ii) the mobile service provider obtains number is important. For example, Congress finds that— (1) there are roughly 150 million wireless express prior authorization for listing from wireless customers are typically subscribers in the United States, up from ap- such subscriber, separate from any author- charged for incoming calls. Without proximately 15 million subscribers just a ization obtained to provide such subscriber protections for wireless numbers, sub- decade ago; with commercial mobile service, or any call- scribers could incur large bills, or use (2) wireless phone service has proven valu- ing plan or service associated with such com- up their allotted minutes of use, sim- able to millions of Americans because of its mercial mobile service, and such authoriza- tion has not been subsequently withdrawn. ply by receiving calls they do not mobility, and the fact that government poli- ‘‘(B) NEW SUBSCRIBERS.—A provider of com- want—from telemarketers and others. cies have expanded opportunities for new carriers to enter the market, offering more mercial mobile services, or any direct or in- Because consumers often take their choices and ever lower prices for consumers; direct affiliate or agent of such a provider, cell phones with them everywhere, re- (3) in addition to the benefits of competi- may include the wireless telephone number peated unwanted calls are particularly tion and mobility, subscribers also benefit information of any new subscriber in a wire- disruptive, and may even present safe- from the fact that wireless phone numbers less directory assistance service database ty concerns for those behind the wheel. have not been publicly available; only if the commercial mobile service pro- It may surprise my colleagues that (4) up until now, the privacy of wireless vider— subscribers has been safeguarded and thus ‘‘(i) provides a conspicuous, separate notice today, no federal or state law or regu- to the subscriber, at the time of entering lation prohibits a carrier from divulg- vastly diminished the likelihood of sub- scribers receiving unwanted or annoying into an agreement to provide commercial ing your wireless telephone number. phone call interruptions on their wireless mobile service, and at least once each year And with the industry poised to intro- phones; thereafter, informing the subscriber of the duce wireless director assistance serv- (5) moreover, because their wireless con- right not to be listed in any wireless direc- ices, it is important for Congress to act tact information, such as their phone num- tory assistance service database; and now to preserve the expectation of pri- ber, have never been publicly available in ‘‘(ii) provides the subscriber with conven- any published directory or from any direc- ient mechanisms by which the subscriber vacy that consumers have in their may decline or refuse to participate in such wireless phone numbers. Because wire- tory assistance service, subscribers have come to expect that if their phone rings it’s database, including mechanisms at the time less directory assistance offer great likely to be a call from someone to whom of entering into an agreement to provide benefits as well as posing significant they have personally given their number; commercial mobile service, in the billing of privacy concerns, the legislation I am (6) the wireless industry is poised to begin such service, and when receiving any con- introducing today strikes an important implementing a directory assistance service nected call from a wireless directory assist- balance. It enables those consumers so that callers can reach wireless sub- ance service. who want to be reached to be acces- scribers, including subscribers who have not ‘‘(C) CALL FORWARDING.—A provider of commercial mobile services, or any direct or sible, while providing privacy protec- given such callers their wireless phone num- ber; indirect affiliate or agent of such provider, tions that are important to consumers. (7) while some wireless subscribers may may connect a calling party from a wireless First, this legislation permits wire- find such directory assistance service useful, directory assistance service to a commercial less subscribers to choose not to be current subscribers deserve the right to mobile service subscriber only if— listed in wireless directory assistance choose whether they want to participate in ‘‘(i) such subscriber is provided prior notice databases. This feature gives con- such a directory; of the calling party’s identity and is per- sumers the ultimate ability to keep (8) because wireless users are typically mitted to accept or reject the incoming call charged for incoming calls, consumers must on a per-call basis; their numbers entirely private. Second, ‘‘(ii) such subscriber’s wireless telephone for those in the directory assistance be afforded the ability to maintain the max- imum amount of control over how many number information is not disclosed to the database, the bill requires wireless pro- calls they may expect to receive and, in par- calling party; and viders to use systems that give users ticular, control over the disclosure of their ‘‘(iii) such subscriber is not an unlisted privacy protections and control over wireless phone number; commercial mobile service subscriber. the use of their wireless numbers. (9) current wireless subscribers who elect ‘‘(D) PUBLICATION OF DIRECTORIES PROHIB- These services must not divulge a sub- to participate, or new wireless subscribers ITED.—A provider of commercial mobile serv- scriber’s wireless number (unless the who decline to be listed, in any new wireless ices, or any direct or indirect affiliate or agent of such a provider, may not publish, in subscriber consents to disclosure), the directory assistance service directory, in- cluding those subscribers who also elect not printed, electronic, or other form, the con- service must provide identifying infor- to receive forwarded calls from any wireless tents of any wireless directory assistance mation to the wireless subscriber so directory assistance service, should not be service database, or any portion or segment that the subscriber knows who is call- charged for exercising such rights; thereof. ing through the forwarding service, and (10) the marketplace has not yet ade- ‘‘(E) NO CONSUMER FEE FOR RETAINING PRI- the service must give a subscriber the quately explained an effective plan to pro- VACY.—A provider of commercial mobile option of rejecting or accepting each tect consumer privacy rights; services may not charge any subscriber for incoming call. Finally, this legislation (11) Congress previously acted to protect exercising any of the rights under this para- graph. prohibits wireless carriers from charg- the wireless location information of sub- scribers by enacting prohibitions on the dis- ‘‘(F) DEFINITIONS.—For purposes of this ing any special fees to consumers who closure of such sensitive in formation with- paragraph— wish to receive the privacy protections out the express prior authorization of the ‘‘(i) the term ‘current subscriber’ means provided by the bill. Customers should subscriber; and any subscriber to commercial mobile service not have to pay extra for the privacy (12) the public interest would be served by as of the date when a wireless directory as- protections that they have come to ex- similarly enacting effective and industry- sistance service is implemented by a pro- pect. There should be no ‘‘privacy tax’’ wide privacy protections for consumers with vider of commercial mobile service; for consumers to continue the privacy respect to wireless directory assistance serv- ‘‘(ii) the term ‘new subscriber’ means any subscriber to commercial mobile service who protection they have long enjoyed, and ice. SEC. 3. CONSUMER CONTROL OF WIRELESS becomes a subscriber after the date when a this bill ensures that will be the case. PHONE NUMBERS. wireless directory assistance service is im- I urge my colleagues to join me in Section 332(c) of the Communications Act plemented by a provider of commercial mo- supporting this important legislation. of 1934 (47 U.S.C. 332(c)) is amended by adding bile service, and includes any subscriber of a Mr. President, I ask unanimous con- at the end the following: different provider of commercial mobile

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00125 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16006 CONGRESSIONAL RECORD — SENATE November 25, 2003 service who subsequently switches to a new that the rights of consumers to keep Tax Credit for domestic companies. A provider of commercial mobile service; their cell phone numbers private is company, under my proposal, would be ‘‘(iii) the term ‘wireless telephone number paramount. allowed to deduct 9 percent of its do- information’ means the telephone number, mestic production income before it has electronic address, and any other identifying By Ms. STABENOW (for herself information by which a calling party may to figure its tax liability. In effect, this and Mr. GRAHAM of South Caro- reach a subscriber to commercial mobile would result in a new tax rate for our services, and which is assigned by a commer- lina): U.S. manufacturers that are 3 percent cial mobile service provider to such sub- S. 1964. A bill to amend the Internal lower—32 percent instead of 35 percent. scriber, and includes such subscriber’s name Revenue Code of 1986 to comply with And, my bill would make this effective and address; the World Trade Organization rulings immediately, not phased in as others ‘‘(iv) the term ‘wireless directory assist- on the FSC/ETI benefit in a manner have suggested. ance service’ means any service for con- that preserves jobs and production ac- The credit would be extended to a necting calling parties to a subscriber of tivities in the United States, and for wide array of companies: small busi- commercial mobile service when such calling other purposes; to the Committee on parties themselves do not possess such sub- nesses, large businesses and agricul- Finance. tural cooperatives. So whether it is a scriber’s wireless telephone number informa- Ms. STABENOW. Mr. President, I small furniture manufacturer in west- tion; and rise today to introduce the Manufac- ‘‘(v) the term ‘calling party’s identity’ ern Michigan, a tool and die company turing Opportunities to Revitalize our means the telephone number of the calling in Grand Rapids, or one of our auto- Economy’s JOBS Act, or the MORE party or the name of subscriber to such tele- makers in metro Detroit, companies JOBS Act. We are facing a manufac- phone, or an oral or text message which pro- will be rewarded for their domestic pro- turing job crisis in this country, and vides sufficient information to enable a com- duction. And, our farmers will benefit, mercial mobile services subscriber to deter- that is why I am introducing this bill too. mine who is calling; to help our U.S. manufacturers to cre- I often say that we in Michigan pride ‘‘(vi) the term ‘unlisted commercial mobile ate manufacturing jobs here at home. services subscriber’ means— Since January of 2001, the State of ourselves on what we make and what ‘‘(I) a current subscriber to commercial Michigan has faced devastating losses we grow. These two activities are vital mobile services who has not provided express in the manufacturing sector. While the to a strong economy, and our farmers prior consent to a commercial mobile service U.S. has lost 3.3 million private sector would also benefit under my bill. provider to be included in a wireless direc- Farmers themselves, if they have at jobs—2.5 million in the manufacturing tory assistance service database; and least one employee, will directly ben- sector, Michigan has lost 162,300 manu- ‘‘(II) a new subscriber to commercial mo- efit under my bill, since they qualify bile service who has exercised the right con- facturing jobs. That is 18 percent of the tained in subparagraph (B)(ii) to decline or state’s manufacturing employment. In for the tax benefit as manufacturers. In refuse to such inclusion.’’. other words, 1 in 6 Michiganians has addition, agricultural cooperatives Mrs. BOXER. Mr. President, I am lost their manufacturing job in the last would also receive this tax benefit. Farmers often belong to an agricul- pleased to join Senator SPECTER in in- 2 years. troducing the Wireless 411 Privacy Act It is an unfortunate fact that Michi- tural cooperative which is covered of 2003. gan is one of the leading states in the under my bill. Agricultural coopera- About 150 million Americans sub- country in manufacturing job loss. In- tives do the processing, handling, stor- scribe to wireless telephone service. deed, while the U.S. employment rate ing, and marketing for their members. They rely on wireless service to stay in is around 6 percent, Michigan’s unem- For example, a farmer will sell his spe- touch with friends, family, and the ployment rate is currently around 7.6 cialty crop to the cooperative. The co- workplace. As a cellular phone user percent. In some parts of Michigan, the operative then takes the farmer’s crop myself, I value the privacy of my wire- unemployment rate is as high as 12 per- and puts it with other farmers’ produce less number. I want to have control cent. and then stores and prepares the over who can reach me on my cell The people of Michigan and the peo- produce for sale to a food processing phone. ple of the United States need relief to company. The coop passes its profits on However, the wireless phone industry help revitalize our economy. In the to the members of the cooperative is planning to list customers in a wire- midst of these troubling times, we are based on the amount of business each less phone directory starting sometime faced with a new challenge: complying member does with the cooperative. So next year. The Specter-Boxer bill with a World Trade Organization the tax benefits for the cooperative can would protect consumers by providing (WTO) decision finding that our For- be passed-through to farmer members them with the right not to have their eign Sales Corporation (FSC) and of the coop. cell phone number listed in the direc- Extraterritorial Income (ETI) tax code Finally, one of the cornerstones of tory and the right not to be charged a must be reformed to meet inter- my legislation is that my bill would fee for being unlisted. national trade law requirements. I un- create incentives for companies to As we saw with the strong consumer derstand that our colleagues on the keep jobs in the U.S. and to bring more support for the right to keep a cell Senate Finance Committee have been jobs to our country. The MORE JOBS phone when you switch carriers, con- and continue to work diligently on this Act would encourage companies to sumers consider their cell phone num- issue. Our country is one that plays by keep their manufacturing in the U.S. ber their property. It is not the prop- the rules and we will ultimately fix our by basing the amount of their tax cred- erty of the carrier to hand out to tax code. it on how much of their manufacturing whomever the carrier wishes, and the The tax benefits of the FSC and ETI, is done in the U.S. Companies that carrier should not be allowed to charge however, are valued at nearly $50 bil- have all of their manufacturing in the consumers for the right to keep that lion over 10 years. We cannot just take U.S. would receive the full 3 percent number private. away these benefits to our American tax credit. Companies that have much This is especially important when manufacturers without creating new their manufacturing outside of the U.S. you consider that wireless users pay tax relief for them. The practical effect would receive a reduced credit in pro- for both their incoming and outgoing of that would be a $50 billion tax in- portion to their U.S. manufacturing. calls. Having your number listed could crease. And, that is why we must cre- While other proposals being circulated easily lead to receiving calls that you ate a new tax credit for our U.S. manu- eventually eliminate this incentive, did not want but for which you will facturers. my bill would make this incentive per- have to pay. That seems wrong to me. The MORE JOBS Act that I am intro- manent. To date, the wireless phone industry ducing today lays out a vision on how Why would we want to reward com- has been unclear on how they will ad- I believe we should reform the code. panies if they send their jobs overseas? dress these valid concerns when they First of all it, it phases out the non- We want to reward those who are con- move forward with their directory compliant FSC/ETI tax code over the tributing to our economy and putting plans next year. To avoid any confu- next three years. Americans to work here at home. sion or uncertainty, Congress must Then, to help our U.S. manufactur- I want to work closely with my col- make clear to the cell phone companies ers, the bill creates a Manufacturers’ leagues to reform our manufacturing

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00126 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16007 tax code. In doing so, we will make our becoming totally or partially separated from tions, for the purpose of establishing an eli- country stronger, our economy more employment; gible entity; and resilient, and we can create millions of (2) eligible entities that include businesses (2) to entities described in paragraph (1) new good jobs in the manufacturing with fewer than 250 employees; or and established eligible entities, for the pur- (3) eligible entities from a geographic re- pose of preparing such application materials and agricultural sector. But we must gion in the United States that has been ad- as may be required under section 4. do it carefully and with a priority on versely impacted by the movement of manu- (b) OUTREACH AND PROMOTIONAL ACTIVI- our U.S. manufacturing base. I urge my facturing operations or businesses to other TIES.—The Secretary may undertake such colleagues to support the MORE JOBS regions or countries, due to corporate re- outreach and promotional activities as the Act. structuring, technological advances, Federal Secretary determines will best carry out the law, international trade, or another factor, objectives of this Act. By Mr. BAYH: as determined by the Secretary. (c) LIMITATIONS ON EXPENDITURES.—The S. 1965. A bill to provide for the cre- SEC. 3. PARTNERSHIP ACTIVITIES. Secretary may not use more than 10 percent ation of private-sector-led Community (a) USE OF GRANT AMOUNTS.—Each eligible of the amount authorized to be appropriated Workforce Partnerships, and for other entity that receives a grant under section 2 under section 8 to carry out this section. shall use the amount made available through SEC. 6. LIMITATIONS ON FUNDING. purposes; to the Committee on Health, the grant to carry out a program that pro- (a) REQUIREMENT OF MATCHING FUNDS.— Education, Labor, and Pensions. vides— The Secretary may not award a grant under Mr. BAYH. Mr. President, I ask unan- (1) workforce development activities to im- this Act to an eligible entity unless such en- imous consent that the text of the bill prove the job skills of individuals who have, tity agrees that the entity will make avail- are seeking, or have been dislocated from, be printed in the RECORD. able non-Federal contributions toward the employment with a business that is a mem- There being no objection, the bill was costs of carrying out activities funded by ber of that eligible entity, or with a business ordered to be printed in the RECORD, as that grant in an amount that is not less than that is in the industry of a business that is follows: $2 for each $1 of Federal funds made avail- a member of that eligible entity; able through the grant. S. 1965 (2) business modernization activities; or (b) IN-KIND CONTRIBUTIONS.—The Sec- Be it enacted by the Senate and House of Rep- (3) activities that are— retary— resentatives of the United States of America in (A) workforce investment activities (in- Congress assembled, cluding such activities carried out through (1) shall, in awarding grants under this SECTION 1. SHORT TITLE. one-stop delivery systems) carried out under Act, give priority consideration to those en- This Act may be cited as the ‘‘Community subtitle B of title I of the Workforce Invest- tities whose members offer in-kind contribu- Workforce Development and Modernization ment Act of 1998 (42 U.S.C. 2811 et seq.); or tions; and Partnership Act’’. (B) activities described in section 25 of the (2) may not consider any in-kind contribu- SEC. 2. AUTHORIZATION. National Institute of Standards and Tech- tion in lieu of or as any part of the contribu- (a) IN GENERAL.—From amounts made nology Act (15 U.S.C. 278k). tions required under subsection (a). available to carry out this Act, the Sec- (b) ACTIVITIES INCLUDED.— (c) SENIOR MANAGEMENT TRAINING AND DE- retary of Labor (referred to in this Act as (1) WORKFORCE DEVELOPMENT ACTIVITIES.— VELOPMENT.—An eligible entity may not use the ‘‘Secretary’’), in consultation with the The workforce development activities re- any amount made available through a grant Secretary of Commerce and the Secretary of ferred to in subsection (a)(1) may include ac- awarded under this Act for training and de- Education, shall award grants on a competi- tivities that— velopment activities for senior management, tive basis to eligible entities described in (A) develop skill standards and provide unless that entity certifies to the Secretary subsection (b) to assist each entity to— training, including— that expenditures for the activities are— (1) help workers improve those job skills (i) assessing the training and job skill (1) an integral part of a comprehensive that are necessary for employment by busi- needs of the industry involved; modernization plan; or nesses in the industry with respect to which (ii) developing a sequence of skill stand- (2) dedicated to team building or employee the entity was established; ards that are benchmarked to advanced in- involvement programs. (2) help dislocated workers find employ- dustry practices; (d) PERFORMANCE MEASURES.—Each eligi- ment; and (iii) developing curricula and training ble entity shall, in carrying out the activi- (3) upgrade the operating and competitive methods; ties described in section 3, provide for devel- capacities of businesses that are members of (iv) purchasing, leasing, or receiving dona- opment of, and tracking of performance ac- the entity. tions of training equipment; cording to, performance outcome measures. (b) ELIGIBLE ENTITIES.—An eligible entity (v) identifying and developing the skills of (e) ADMINISTRATIVE COSTS.—Each eligible described in this subsection is a consortium training providers; entity may use not more than 10 percent of (either established prior to the date of enact- (vi) developing apprenticeship programs; the amount made available to that entity ment of this Act or established specifically and through a grant awarded under this Act to to carry out programs under this Act) that— (vii) developing training programs for dis- pay for administrative costs. (1) shall include— located workers; (f) MAXIMUM AMOUNT OF GRANT.—No eligi- (A) 2 or more businesses (or nonprofit orga- (B) assist workers in finding new employ- ble entity may receive— nizations representing businesses) that are ment; or (1) a grant under this Act in an amount of facing similar workforce development or (C) provide supportive services to workers more than $1,000,000 for any fiscal year; or business modernization challenges; who— (2) grants under this Act in any amount for (B) labor organizations, if the businesses (i) are participating in a program carried more than 3 fiscal years. described in subparagraph (A) employ work- out by the entity under this Act; and (g) SUPPORT FOR EXISTING OPERATIONS.— ers who are covered by collective bargaining (ii) are unable to obtain the supportive (1) IN GENERAL.—In making grants under agreements; and services through another program providing this Act, the Secretary may use a portion (C) 1 or more businesses (or nonprofit orga- the services. equal to not more than 50 percent of the nizations that represent businesses) with re- (2) BUSINESS MODERNIZATION ACTIVITIES.— funds appropriated to carry out this Act for sources or expertise that can be brought to The business modernization activities re- a fiscal year, to support the existing training bear on the workforce development and busi- ferred to in subsection (a)(2) may include ac- and modernization operations of existing eli- ness modernization challenges referred to in tivities that upgrade technical or organiza- gible entities. subparagraph (A); and tional capabilities in conjunction with im- (2) ENTITIES.—The Secretary may award a (2) may include— proving the job skills of workers in a busi- grant to an existing eligible entity for exist- (A) State governments and units of local ness that is a member of that entity. ing training and modernization operations government; SEC. 4. APPLICATION. only if the entity— (B) educational institutions; To be eligible to receive a grant under sec- (A) currently offers (as of the date of the (C) labor organizations; or tion 2, an entity shall submit an application award of the grant) a combination of train- (D) nonprofit organizations. to the Secretary at such time, in such man- ing, modernization, and business assistance (c) COMMON GEOGRAPHIC REGION.—To the ner, and containing such information as the services; and maximum extent practicable, the organiza- Secretary may reasonably require. (B) has demonstrated success in accom- tions that are members of an eligible entity SEC. 5. SEED GRANTS AND OUTREACH ACTIVI- plishing the objectives of activities described described in subsection (b) shall be located TIES. in section 3. within a single geographic region of the (a) SEED GRANTS.—The Secretary shall pro- (3) APPLICATION.—Paragraph (1) shall not United States. vide technical assistance and award financial apply to support for the expansion of train- (d) PRIORITY CONSIDERATION.—In awarding assistance (not to exceed $150,000 per award) ing and modernization operations of existing grants under subsection (a), the Secretary on such terms and conditions as the Sec- eligible entities. shall give priority consideration to— retary determines to be appropriate— (4) DEFINITIONS.—In this subsection: (1) eligible entities that serve dislocated (1) to businesses, nonprofit organizations (A) EXISTING TRAINING AND MODERNIZATION workers or workers who are threatened with representing businesses, and labor organiza- ACTIVITY.—The term ‘‘existing training and

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00127 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16008 CONGRESSIONAL RECORD — SENATE November 25, 2003 modernization activity’’ means a training me, they said that the review had re- retary to provide information related and modernization activity carried out prior sulted in the release of 64 detainees to this release, how long they were de- to the date of enactment of this Act. who were determined to no longer pose tained, the conditions of their release, (B) EXISTING ELIGIBLE ENTITY.—The term a threat to the United States, and if any, the explanations of why the De- ‘‘existing eligible entity’’ means an eligible entity that was established prior to the date more releases were expected. partment of Defense has now deter- of enactment of this Act. However, the letter fails to address mined these individuals could be re- SEC. 7. GENERAL ACCOUNTING OFFICE STUDY. the more important question, which is leased after what has in many cases (a) STUDY.—Beginning 3 years after the whether the Department’s review of been a very long detention. date of enactment of this Act, the Comp- these detainees is being done in accord- For the remaining detainees—those troller General of the United States shall ance with any recognized civilian or who are still at Guantanamo—the ad- conduct a study concerning the activities military legal process. ministration has still refused to pro- carried out under this Act. In conducting the I ask unanimous consent to have the vide ‘‘access to an impartial tribunal study, the Comptroller General shall assess to review whether any basis exists for the effectiveness of the activities and sug- letter printed in the RECORD at the gest improvements to the grant program es- conclusion of my remarks. [detainees] continued detention.’’ The tablished under this Act, including recom- The PRESIDING OFFICER. Without detainees have not been allowed to mending whether the program should be ad- objection, it is so ordered. speak with their families or their coun- ministered by the Department of Labor or by (See Exhibit 1.) sel, nor have they been informed of any another agency or an alternative entity. Mr. BINGAMAN. What prompted me charges against them, as far as I am in- (b) REPORT.—Not later than 3 years and 6 to come to the floor of the Senate formed. months after the date of enactment of this The bill I filed requires that within 90 Act, the Comptroller General of the United today was an article I saw in the morn- States shall prepare and submit to Congress ing paper. This appeared in various pa- days of its enactment the Secretary of a report containing the results of the study. pers around the country, but the one I Defense provide the Senate with infor- SEC. 8. AUTHORIZATION OF APPROPRIATIONS. have here in front of me is from the mation related to the process used to There are authorized to be appropriated to Boston Globe. It says: categorize and hold these detainees. It carry out this Act— The U.S. military sent home 20 ‘‘enemy does not call for release of the detain- (1) $15,000,000 for fiscal year 2004; combatants’’ last weekend who were being ees. It does not in any way, shape, or (2) $20,000,000 for fiscal year 2005; held without trial at Guantanamo Bay Naval form require the release of any classi- (3) $25,000,000 for fiscal year 2006; and Base in Cuba, only to replace them with the fied information other than to the (4) $30,000,000 for fiscal year 2007. same number of new prisoners. chairman and vice chairman of the It has a quotation from a spokes- Senate and House committees. The By Mr. BINGAMAN: person for the military saying: S. 1966. A bill to require a report on amendment merely seeks to clarify for We cannot talk about any of the individ- the detainees held at Guantanamo Bay, the Senate and for the Congress the uals that may have departed the island due process by which the detainees’ status Cuba; to the Committee on Armed to security concerns. Services. is determined. Mr. BINGAMAN. Mr. President, I According to this article, all those Like most Americans, I have always want to speak for just a few minutes transferred last week have been re- thought that what distinguished our today on an issue on which I have in- turned, many of them to Pakistan, and country in the history of the world was troduced a bill. The bill is S. 1966. It is all of those transferred last weekend, our commitment to individual freedom a bill to require a report on the detain- according to representatives from the and to the rule of law; that the bedrock ees being held at Guantanamo Bay, countries they are citizens of, said they of a free society is the obligation taken Cuba. will be released once they have arrived by the Government to afford individ- The purpose of this legislation is to in those countries. uals with certain legal protections, and shed some light on the process that is The figure now, as I understand it, is as a Nation committed to these prin- being used by this administration to there are 88 suspects who have been ciples we have been instrumental in determine the status of so-called transferred out of Guantanamo Bay. the formulation and enforcement of enemy combatants who are held by our Four were released, 4 were handed over international law, particularly when it Government at Guantanamo Bay Naval to Saudi Arabia, and the remaining 650 came to the treatment of prisoners of Base. It has now been nearly 2 years or 700 are still there. As this article in- war. For over 75 years, the United since the first detainees arrived at dicated, we continue to add additional States has adhered to the Geneva Con- Guantanamo as prisoners of the United people to this prison we are operating vention. Even during conflicts with in- States. Yet these individuals are still there at Guantanamo. surgents and irregular forces, we have being held in what most would refer to There are various complaints de- adhered to the Geneva Convention. as legal limbo. scribed in the article by foreign dip- Whenever our Nation has gone to war, My colleagues will recall that on lomats about the process we are fol- we have taken pride in going above and July 16, I urged the Senate to adopt an lowing. There is a statement by the at- beyond the requirements of inter- amendment to the Defense appropria- torney for one of the human rights or- national law as set out in the third Ge- tions bill. That amendment was tabled ganizations that has complained bit- neva Convention of 1929. In fact, the 52 to 42. It is essentially the same pro- terly about the improvisational policy Department of Defense has adopted its vision—it contained the same provi- decisions and the arbitrary power over own detailed regulations and doctrine sions I have now put into S. 1966, this prisoners at the base. and field manuals built on the provi- freestanding legislation I have intro- My motives for offering this legisla- sions of the Geneva Convention which duced. tion are very simple. While I obviously have guided our military through The day after that amendment was have concerns about judicial treatment many conflicts regardless of size and defeated I sent a letter to Secretary and the failure of any kind of legal scope and duration. Rumsfeld expressing my concern over process being followed in the treatment These regulations we have in our own the apparent lack of any kind of legal of these detainees in Guantanamo, I military, like international law, do not process being extended to the detainees am even more concerned about the im- contemplate the legal limbo we are being held at Guantanamo. Only re- plications of this treatment we are af- holding these detainees in at Guanta- cently I received a reply from the De- fording these individuals for our own namo. Neither the Geneva Convention partment of Defense. In that letter, the fighting forces as well as our inter- nor the established military regula- Department of Defense maintains that national reputation. tions define or use the term the Presi- it: The bill I filed here in the Senate dent is using here. This term, unlawful . . . reviews on a regular basis the contin- today requires the Secretary of Defense combatant, is a new term which has ued detention of each enemy combatant and to report on the status of these detain- come up in order to sidestep the re- assesses the appropriate disposition of each ees, including the process that was uti- quirements both of the Geneva Conven- individual case. lized to determine that status for those tion and of our own military regula- According to the Defense Depart- who have already been released from tions. Army Regulation 190–8 provides ment, at the time they wrote back to Guantanamo. The bill requires the Sec- an effective and efficient process to

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00128 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16009 categorize the detainees on the battle- and wisdom of the administration’s captors placed the appropriate Geneva Con- field. According to that provision, de- policy of open-ended detentions at vention signage in the barracks, permitted tainees must be classified either as an Guantanamo. Some of those briefs were the international Red Cross to ship basic ne- enemy prisoner of war, a recommended cessities to POWs, and allowed a Geneva in- extremely thoughtful, in my view. One spector to survey the premises. Mr. Jackson retained person entitled to enemy pris- former diplomat wrote: believes that his survival and relatively good oner-of-war protections, an innocent It has been the experience of each of us health while in captivity are the result of civilian who should be immediately re- that our most important diplomatic asset the German Army’s adherence to the 1929 turned to his or her home or released, has been this Nation’s values. . . . The hint Geneva Conventions. or a civilian internee who, for reasons that America is not all that it claims, that The experiences of Mr. Jackfert and Mr. of operational security, or probable it . . . can accept that the Executive Branch Harrington in the custody of Japan, which cause incident to criminal investiga- may imprison whom it will and do so beyond had not ratified and did not purport to follow the reach of due process of law demeans and the 1929 Geneva Conventions, offer a sharp tion, should be retained. Such intern- weakens this Nation’s voice abroad. contrast. Both men were serving with the ees have the right to appeal the order In their brief, former judge advocate U.S. Army in the Philippines when it surren- directing their internment by chal- generals, the military’s legal prosecu- dered to the Japanese in 1942, and both sub- lenging the existence of imperative se- tors and those most familiar with the sequently served several years of hard cap- curity reasons that led to their deten- tivity beyond the reach of any Geneva Con- law as it applies to enemy prisoners of tion. vention protections. Both were part of the The President’s unilateral deter- war, strongly argue: Bataan Death March and its well-docu- mination of the detainee’s status at To be sure, this is a perilous time, as the mented horrors. Mr. Harrington was forced Guantanamo Bay signals a significant President has stated. But that does not jus- into slave labor in a Japanese coalmine, and tify indefinite confinement without any type saw his compatriots starved, beaten and departure from the spirit of the Geneva of hearing or judicial review. The United killed. Mr. Jackfert was also forced into Convention and a significant departure States played a major role in the develop- slave labor and suffered the extreme effects from the letter of established military ment and adoption of the Geneva Conven- of heavy labor, cruelty and inadequate nour- regulations. In stark contrast to our tions. The requirements of those Conven- ishment, going from 125 pounds to 90 pounds Government’s previous commitment to tions. The requirements of those Conven- in a matter of months. There was no Geneva adherence to the rule of law and human tions are incorporated directly into Amer- signage, no recognition of prisoner rights, rights, this administration has adopted ican Military Regulations. American failure and virtually no Red Cross access. Nor were the experiences of Mr. Harrington a position that once the President des- to provide foreign prisoners with the protec- tions of the Geneva Conventions may well and Mr. Jackfert atypical. Studies have de- ignates that a person is a so-called provide foreign authorities, in current or fu- termined that the death rate of U.S. Military enemy combatant or unlawful combat- ture conflicts, with an excuse not to comply personnel interned by Japan was as high as ant, a term created by the administra- with the Geneva Conventions with respect to 40 percent while the death rate of personnel tion, that person can be locked up and captured American military forces. captured and interned by Germany was little held incommunicado as long as the Just as compelling are the stories more than 1 percent. . . . Moreover, while it President desires, with absolutely no told in the ‘‘friends of the court’’ brief was rare for American POWs detained in legal rights; no right to review of that Germany to be tortured, the opposite was filed by former prisoners of war. They true for American POWs in Japan. No one decision. This means even if the admin- argue that as a result of their own ex- can adequately impart the suffering most al- istration makes a mistake or is given perience as prisoners of war, the United lied prisoners endured [in Japan]. . . . They faulty information, it is virtually im- States has an interest ‘‘in fostering the were beaten, kicked, robbed . . . and were possible for the person involved to development, acceptance and enforce- buried alive. . . . [T]he overwhelming major- prove his or her innocence because not ment of international norms pursuant ity endured ‘‘hell on earth.’’ only can they not talk to a lawyer or to which prisoners of war and others Again, let me say, I am in no way to family members, but they do not captured during armed conflicts will be suggesting that the detainees are not have the right even to know what they treated humanely and in accordance being treated humanely. In fact, from are being charged with. with the rule of law.’’ They emphasize, all information I have received, they The U.S. Supreme Court has agreed that in particular, they ‘‘wish to en- are being treated humanely. But what to consider the narrow question of sure that the treatment by the Untied I and these briefs that were filed in the whether the Federal courts have the States of foreign detainees . . . is such Supreme Court are suggesting is that power to hear challenges to the detain- that the United States and former our failure to adhere to some recog- ees’ imprisonment. This is a significant American POWs retain the moral au- nized legal process in determining the move towards restoring the system of thority to demand fair and humane status of these detainees opens the checks and balances, which needs to be treatment for any future Americans door for other countries to refuse to restored—the system of checks and bal- detained by foreign governments.’’ adhere to any legal process as well. It ances our Founders felt was essential However, nothing more clearly dem- may very well result in arbitrary con- to preserving liberty in the country. onstrates this point than the actual finement and harsh treatment or other Similarly, the bill I have filed begins stories themselves. Leslie H. Jackson, inhumane practices applied to our own to fulfill Congress’s constitutional re- Edward Jackfert, and Neal Harrington citizens. sponsibility to oversee what the execu- are former prisoners of war. Mr. Jack- This bill will help Congress fulfill its tive branch does. It calls on the admin- son was captured by the Germans, who duties and obligations as outlined in istration to tell us whether its actions adhered to the Geneva Conventions. the Constitution and in U.S. law and are in accordance with military regula- Mr. Jackfert and Mr. Harrington were regulation. tions and doctrine. held by Japan, which had not ratified I hope we can quickly pass this legis- Our goal is to bring transparency to and did not purport to follow inter- lation when we return for the second the issue and to fulfill Congress’s con- national law. session of the Congress in January. stitutional role of oversight of the ex- If you will allow me to read them I yield the floor. ecutive. We should know what process their brief: EXHIBIT 1 the administration is using to deter- Mr. Jackson was captured by the German [From the Boston Globe, Nov. 25, 2003] mine the status of these detainees. Army on April 24, 1944, when his B–17 bomber US RELEASES 20 DETAINEES, TRANSFERS 20 My concern is much broader than crashed. Jailed and interrogated for approxi- MORE TO CUBA what happens to these particular de- mately one week, he was then transported to (By Charlie Savage) tainees. I am concerned about the im- Stalag 17, a converted concentration camp. WASHINGTON.—The U.S. military sent home pact of our treatment of these detain- In his 13 months of captivity, Mr. Jackson 20 ‘‘enemy combatants’’ last weekend who ees on the treatment of our own mili- was granted the bare necessities: shelter, were being held without trial at Guanta- tary personnel who are captured in fu- minimal food, and the ability to socialize namo Bay naval base in Cuba—only to re- ture conflicts. Former U.S. diplomats with other American POWs. While the expe- place them with the same number of new rience was harsh and unpleasant, Mr. Jack- prisoners. and judge advocate generals and even son was never tortured or otherwise hurt by The prisoner transfer, the first such move- former U.S. prisoners of war filed the German guards. To follow the terms of ment since mid-July, followed a determina- ‘‘friend of the court’’ briefs in the Su- the Geneva Conventions of 1929, to which tion by senior military and intelligence offi- preme Court questioning the legality Germany was a party, Mr. Jackson’s German cials that the outgoing group ‘‘either no

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00129 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16010 CONGRESSIONAL RECORD — SENATE November 25, 2003 longer posed a threat to U.S. security or no Ken Hurwitz of the Lawyers Committee for ernors of the Federal Reserve System may longer required detention by the United Human Rights, a New York-based organiza- determine by rule or order), for any purpose, States,’’ according to a statement the De- tion, said that the surprise release reflected to another account of the owner in the same partment of Defense released yesterday. the military’s ‘‘improvisational’’ policy deci- institution. An account offered pursuant to ‘‘We can’t talk about any of the individ- sions and its arbitrary power over the pris- this paragraph shall be considered a trans- uals that may have departed the island due oners at the base. action account for purposes of section 19 of to security concerns,’’ said Lieutenant Colo- ‘‘It’s the rule of law that’s the point,’’ he the Federal Reserve Act, unless the Board of nel Pamela Hart, a spokeswoman for the iso- said. ‘‘They’re saying, ‘Trust us, and we’ll do Governors of the Federal Reserve System de- lated facility at which the United States de- the right thing.’ But there is no right thing termines otherwise.’’. tains and interrogates suspected terrorists. unless it’s pursuant to some kind of ordered, (b) CONFORMING AMENDMENTS.— But a high-ranking Pakistani official, who lawful proceeding.’’ (1) IN GENERAL.—Section 2(a) of Public Law said yesterday that at least five of the out- Challenges to the detentions that have 93–100 (12 U.S.C. 1832(a)), as amended by sub- going transferees were Pakistani citizens, of- been filed in federal court have so far been section (a), is further amended— fered a chilly reaction to the Pentagon’s dismissed because the base is located on (A) in paragraph (1), by striking ‘‘but sub- news. Cuban soil—it has been leased and controlled ject to paragraph (2)’’; ‘‘The government is happy, but this is too by the United States for a century—and out- (B) by amending paragraph (2) to read as damn late,’’ said Imran Ali, second secretary side the jurisdiction of U.S. sovereignty. Two follows: of the Pakistan Embassy, adding that 21 weeks ago, the Supreme Court said it would ‘‘(2) No provision of this section may be Pakistanis have been released from Guanta- review the question of whether federal court construed as conferring the authority to namo, but another 37 are still there. ‘‘Their lives have been destroyed. Their jurisdiction may extend there. offer demand deposit accounts to any insti- families have gone through psychological In a related development, the lawyer for tution that is prohibited by law from offer- trauma, since they were not terrorists; they Army Captain James ‘‘Yousef’’ Yee, the ing demand deposit accounts.’’; and were just low-level Taliban fighters.’’ former Muslim chaplain at Guantanamo who (C) in paragraph (3), by striking ‘‘and is The Pakistani official’s reaction illus- was arrested in September in the alleged not a deposit or account described in para- trated the pressure on the United States to mishandling of classified material, sent a graph (2)’’. resolve the situation—especially from allies letter to President Bush yesterday asking (2) EFFECTIVE DATE.—The amendments in the war on terrorism who have expressed that his client be released from pretrial de- made by paragraph (1) shall take effect on concern for their citizens who are among the tention for Thanksgiving and his daughter’s the date which is 2 years after the date of en- 660 prisoners from 42 countries being held at birthday. actment of this Act. the base. ‘‘These charges do not warrant pretrial SEC. 3. AUTHORIZATION OF INTEREST-BEARING Although the State Department has been confinement of any kind,’’ Eugene Fidell TRANSACTION ACCOUNTS. negotiating with a number of countries to wrote in the letter. ‘‘While military sources (a) REPEAL OF PROHIBITION ON PAYMENT OF continue the detention of some, all those initially reported a wild laundry list of sus- INTEREST ON DEMAND DEPOSITS.— transferred last weekend will be released by pected offenses, such as spying or aiding the (1) FEDERAL RESERVE ACT.—Section 19(i) of their countries, U.S. officials said. enemy, these have now been reduced to two the Federal Reserve Act (12 U.S.C. 371a) is re- The Pentagon statement said that ‘‘at the relatively minor [charges]. . . . Nonetheless, pealed. time of their detention, these enemy com- he is being treated as if the original laundry (2) HOME OWNERS’ LOAN ACT.—Section batants posed a threat to U.S. security.’’ It list of charges was the legal basis for his con- 5(b)(1)(B) of the Home Owners’ Loan Act (12 offered little information about the new ar- finement. This is totally wrong and unfair.’’ U.S.C. 1464(b)(1)(B)) is amended by striking rivals, except that they were transferred Sean McCormack, a spokesman for the Na- ‘‘savings association may not—’’ and all that from U.S. Central Command in the Middle tional Security Council, said he would look follows through ‘‘(ii) permit any’’ and insert- East. into the letter, but had no comment on the ing ‘‘savings association may not permit Navy Lieutenant Commander Barbara president’s behalf. any’’. Burfeind, a Pentagon spokeswoman, said (3) FEDERAL DEPOSIT INSURANCE ACT.—Sec- none of the new detainees were captured in By Mr. HAGEL (for himself and tion 18(g) of the Federal Deposit Insurance Iraq. Ms. SNOWE): Act (12 U.S.C. 1828(g)) is repealed. The weekend transfers of the detainees (b) JOINT RULEMAKING REQUIRED.— bring to 88 the number of Al Qaeda or S. 1967. A bill to allow all businesses (1) IN GENERAL.—Not later than 2 years Taliban suspects who have been transferred to make up to 24 transfers each month from interest-bearing transaction ac- after the date of enactment of this Act, the out. Of those, 84 were released and four were Secretary of the Treasury and the Federal handed over to Saudi Arabia. counts to other transaction accounts, banking agencies shall issue joint final regu- Ruth Wedgwood, an international law pro- to require the payment of interest on lations authorizing the payment of interest fessor at Johns Hopkins University, said the reserves held for depository institu- and dividends on transaction accounts at de- arrival of the 20 new detainees follows a tions at Federal reserve banks, to re- pository institutions that are subject to reg- flare-up of fighting by Taliban insurgents in ulation by those entities. Afghanistan. peal the prohibition of interest on busi- Wedgwood has defended the Bush adminis- ness accounts, and for other purposes; (2) CONTENTS.—Regulations required by tration’s position that the rules of the Gene- to the Committee on Banking, Hous- this subsection shall— va Conventions do not apply to the detainees ing, and Urban Affairs. (A) establish the scope of the authorization because they were not soldiers of a regular described in paragraph (1) and the types of Mr. HAGEL. Mr. President, I ask transaction accounts to which that author- Afghan army. unanimous consent that the text of the ‘‘Dismayingly, the Taliban have become ization shall apply; and very active again in the southern area, so bill be printed in the RECORD. (B) include any appropriate limitations, really . . . the war isn’t over in that area,’’ There being no objection, the bill was exceptions, or restrictions on that authoriza- she said. ordered to be printed in the RECORD, as tion, consistent with the purposes of this Not among those who were transferred for follows: section. (3) EFFECTIVE DATE OF REGULATIONS.—The release, according to a senior Pentagon offi- S. 1967 cial, were the three ‘‘juvenile enemy combat- regulations required by this subsection shall Be it enacted by the Senate and House of Rep- ants’’—Afghans ages 13 to 15 who were cap- take effect not later than 2 years after the resentatives of the United States of America in tured fighting alongside the Taliban and date of enactment of this Act. Congress assembled, whose detention at the prison has attracted (4) DEFINITIONS.—As used in this sub- particularly intense international criticism. SECTION 1. SHORT TITLE. section— The commander of Guantanamo operations, This Act may be cited as the ‘‘Interest on (A) the terms ‘‘depository institution’’ and Major General Geoffrey Miller, had rec- Business Checking Act of 2003’’. ‘‘transaction account’’ have the meanings ommended that they be sent home in Au- SEC. 2. INTEREST-BEARING TRANSACTION AC- given such terms in subparagraphs (A) and gust. COUNTS AUTHORIZED FOR ALL (C), respectively, of section 19(b)(1) of the U.S. officials say they have been coordi- BUSINESSES. Federal Reserve Act (12 U.S.C. 461(b)(1)); and nating with UNICEF in the event that the (a) IN GENERAL.—Section 2(a) of Public (B) the term ‘‘Federal banking agency’’ has young fighters are released. UNICEF, a Law 93–100 (12 U.S.C. 1832(a)) is amended by the meaning the term in section 3 of the Fed- United Nations agency that has offered to inserting after paragraph (2) the following: eral Deposit Insurance Act (12 U.S.C. 1813). handle the juvenile combatants, runs a pro- ‘‘(3) Notwithstanding any other provision (c) EFFECTIVE DATE OF REPEAL.—The gram to ease the reintegration of former of law, any depository institution may per- amendments made by subsection (a) shall be- child soldiers back into their home societies. mit the owner of any deposit or account come effective on the earlier of— ‘‘The State Department and UNICEF will which is a deposit or account on which inter- (1) 2 years after the date of enactment of make sure that if they’re returned to Af- est or dividends are paid and is not a deposit this Act; or ghanistan, they won’t just be plopped down,’’ or account described in paragraph (2) to (2) the date on which final regulations re- a Pentagon official told The Boston Globe make not more than 24 transfers per month quired to be issued under subsection (b) be- last week. (or such greater number as the Board of Gov- come effective.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00130 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16011 SEC. 4. PAYMENT OF INTEREST ON RESERVES AT (1) the absorption, by the depository insti- high interest rates. Senator AKAKA and FEDERAL RESERVE BANKS. tution, of expenses incidental to providing a I worked together on language included (a) IN GENERAL.—Section 19(b) of the Fed- normal banking service with respect to an eral Reserve Act (12 U.S.C. 461(b)) is amended in the No Child Left Behind Act to en- escrow account described in subsection (a); sure elementary and secondary stu- by adding at the end the following: (2) the forbearance, by the depository insti- ‘‘(12) EARNINGS ON RESERVES.— tution, from charging a fee for providing any dents would have more access to finan- ‘‘(A) IN GENERAL.—Balances maintained at such banking function; and cial literacy training that we hope will a Federal reserve bank by or on behalf of a (3) any benefit which may accrue to the make our children wiser and better depository institution may receive earnings holder or the beneficiary of such escrow ac- users of consumer credit. to be paid by the Federal reserve bank at count as a result of an action of the deposi- This bill builds on the activities we least once each calendar quarter at a rate or tory institution described in paragraph (1) or helped authorize in No Child Left Be- rates not to exceed the general level of (2) or a similar action. short-term interest rates. hind. It emphasizes financial literacy ‘‘(B) REGULATIONS RELATING TO PAYMENTS for students enrolled in institutions of AND DISTRIBUTION.—The Board may promul- By Mr. ENZI (for himself, Mr. higher education, or students who will gate regulations concerning— AKAKA, Mr. CORZINE, and Mr. soon be enrolled. With the training and ‘‘(i) the payment of earnings in accordance SARBANES): real life advice they will receive in with this paragraph; S. 1968. A bill to amend the Higher these courses we will be able to reduce ‘‘(ii) the distribution of such earnings to Education Act of 1965 to enhance lit- the number of our children who leave the depository institutions which maintain eracy in finance and economics, and for high school and head out into the balances at such banks or on whose behalf other purposes; to the Committee on such balances are maintained; and world on their own with little or no ‘‘(iii) the responsibilities of depository in- Health, Education, Labor, and Pen- preparation for the demands that will stitutions, Federal home loan banks, and the sions. be placed on their limited incomes. National Credit Union Administration Cen- Mr. ENZI. Mr. President, it wasn’t all Our legislation would include finan- tral Liquidity Facility with respect to the that long ago that a good education cial literacy and personal finance in crediting and distribution of earnings attrib- consisted of providing our children the list of permissible activities of sev- utable to balances maintained, in accordance with a strong background in reading, eral programs authorized under the with subsection (c)(1)(A), in a Federal re- writing and arithmetic skills, mixed Higher Education Act. These programs serve bank by any such entity on behalf of are set up to support students, and I depository institutions. with an understanding of history and a ‘‘(C) DEPOSITORY INSTITUTION DEFINED.— good hard look at civics and how our believe financial literacy should be an For purposes of this paragraph, the term ‘de- government works. We thought, if our important aspect of the support proc- pository institution’, in addition to any in- sons and daughters had taken courses ess. Attending college is a necessary stitution described in paragraph (1)(A), in- in those subjects and mastered them, step that must be taken if our young cludes any trust company, corporation orga- they were as prepared as they could be adults are to succeed in the work force, nized under section 25A or having an agree- to face the real world, get good jobs, and learning how to make a personal ment with the Board under section 25, or any and one day, live happily ever after. budget and meet individual financial branch or agency of a foreign bank (as de- obligations should be a priority in that fined in section 1(b) of the International Unfortunately, we left one vital skill Banking Act of 1978).’’. out of the mix. process. (b) AUTHORIZATION FOR PASS THROUGH RE- As an accountant, I have become in- Our bill would also emphasize finan- SERVES FOR MEMBER BANKS.—Section creasingly concerned about the lack of cial literacy in exit counseling for col- 19(c)(1)(B) of the Federal Reserve Act (12 knowledge we have as a society, and es- lege students receiving federal student U.S.C. 461(c)(1)(B)) is amended by striking pecially, the lack of insight we share financial assistance. Today’s under- ‘‘which is not a member bank’’. with our children about money and graduate students are leaving school (c) TECHNICAL AND CONFORMING AMEND- with an average of nearly $17,000 in stu- MENTS.—Section 19 of the Federal Reserve how to properly handle it, budget it, Act (12 U.S.C. 461) is amended— and use it to plan for their retirement. dent loan obligations. This can be a (1) in subsection (b)(4), The numbers are quite startling when large burden to bear, but it becomes (A) by striking subparagraph (C); and you take a close look at how many of impossible to address if a young man or (B) by redesignating subparagraphs (D) and our children are leaving college al- woman is unable to successfully man- (E) as subparagraphs (C) and (D), respec- ready saddled with credit card debt and age their own finances. tively; and The answer to this challenge is to (2) in subsection (c)(1)(A), by striking ‘‘sub- school loans that need to be repaid. It wasn’t like that when many of us were start educating students before they section (b)(4)(C)’’ and inserting ‘‘subsection experience financial difficulty. Stu- in college. School didn’t seem to cost (b)’’. dents who are faced with the possi- nearly as much as it does now, and the SEC. 5. INCREASED FEDERAL RESERVE BOARD bility of accruing larger and larger lev- FLEXIBILITY IN SETTING RESERVE scourge of a strong economy, easily els of debt must be taught the full REQUIREMENTS. available credit, hadn’t reached the Section 19(b)(2)(A) of the Federal Reserve meaning and significance of concepts ranks of our schools yet. Act (12 U.S.C. 461(b)(2)(A)) is amended— as simple as compound interest, credit This is a problem at the present (1) in clause (i), by striking ‘‘the ratio of 3 scores, and minimum payments. That time, but if we don’t act quickly to per centum’’ and inserting ‘‘a ratio not way, when they leave school with their make sure our Nation’s young people greater than 3 percent (and which may be lives before them, they will be able to zero)’’; and receive the advice and education they plan how to pay back their student (2) in clause (ii), by striking ‘‘and not less need on handling money and planning loans, and keep credit card debt to a than 8 per centum,’’ and inserting ‘‘(and their finances for the future, we will which may be zero),’’. minimum. Taking the initiative while have a disaster on our hands. Young these students are in school will help SEC. 6. TREATMENT OF CERTAIN ESCROW AC- men and women, in their prime earning COUNTS. them avoid some of the serious prob- (a) IN GENERAL.—In the case of an escrow years, are facing a mountain of per- lems that can develop when someone account maintained at a depository institu- sonal debt at high interest rates, with has little or poor financial skills. tion for the purpose of completing the settle- little hope of paying it off anytime These problems can literally have life- ment of a real estate transaction, activities soon. Clearly, that is something we described in subsection (b) shall not be treat- long implications for those who over- must take every action to help future extend their resources or fail to learn ed as the payment or receipt of interest for generations of students avoid. purposes of this Act or any other provision of to live within the limits of a budget. law relating to the payment of interest on That is why I am introducing the Fi- I ask unanimous consent that the accounts or deposits maintained at deposi- nancial Literacy in Higher Education text of the bill be printed in the tory institutions, including such provisions Act with my colleague, Senator AKAKA. RECORD. in— Senator AKAKA and I share many of the There being no objection, the bill was (1) Public Law 93–100; same ideas with respect to the impor- ordered to be printed in the RECORD, as (2) the Federal Reserve Act; tance of financial literacy and ensuring follows: (3) the Home Owners’ Loan Act; or our children have a grasp of the impli- (4) the Federal Deposit Insurance Act. S. 1968 (b) EXCLUSIONS.—For purposes of sub- cations of their actions when they use Be it enacted by the Senate and House of Rep- section (a), activities described in this para- the credit they have been extended by resentatives of the United States of America in graph are— banks eager to make quick loans at Congress assembled,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00131 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16012 CONGRESSIONAL RECORD — SENATE November 25, 2003 SECTION 1. SHORT TITLE. SEC. 4. ENHANCEMENT OF FINANCIAL LITERACY (i) by redesignating paragraphs (2) through This Act may be cited as the ‘‘Financial AND ECONOMIC LITERACY. (12) as paragraphs (3) through (13), respec- Literacy in Higher Education Act’’. The Higher Education Act of 1965 (20 U.S.C. tively; SEC. 2. AREAS OF EMPHASIS. 1001 et seq.) is amended— (ii) by inserting after paragraph (1) the fol- Part B of title I of the Higher Education (1) in section 201(a)(3), by inserting ‘‘per- lowing: Act of 1965 (20 U.S.C. 1011 et seq.) is amended sonal finance,’’ after ‘‘economics,’’; ‘‘(2) education or counseling services de- by adding at the end the following: (2) in section 311(c)— signed to improve the financial literacy and ‘‘SEC. 123. AREAS OF EMPHASIS. (A) by redesignating paragraphs (7) economic literacy of students and their par- ‘‘In carrying out activities under this Act through (12) as paragraphs (8) through (13), ents;’’; and related to improving financial and economic respectively; and (iii) in paragraph (13), as redesignated by literacy, education, and counseling, the Sec- (B) by inserting after paragraph (6) the fol- clause (i), by striking ‘‘paragraphs (1) retary shall emphasize, among other ele- lowing: through (11)’’ and inserting ‘‘paragraphs (1) ments, basic personal income and household ‘‘(7) Education or counseling services de- through (12)’’; and money management and financial planning signed to improve the financial literacy and (B) in subsection (e), by striking ‘‘sub- skills, and basic economic decision making economic literacy of students and their par- section (b)(10)’’ and inserting ‘‘subsection skills, including how to— ents.’’; (b)(11)’’; ‘‘(1) create household budgets, initiate sav- (3) in section 316(c)(2)— (10) in section 402D(b)— ings plans, and make strategic investment (A) by redesignating subparagraphs (G) (A) by redesignating paragraphs (2) decisions for education, employment, retire- through (L) as subparagraphs (H) through through (10) as paragraphs (3) through (11), ment, home ownership, wealth building, or (M), respectively; respectively; other savings goals; (B) by inserting after subparagraph (F) the (B) by inserting after paragraph (1) the fol- ‘‘(2) manage credit and debt effectively, in- following: lowing: cluding student financial aid and credit card ‘‘(G) education or counseling services de- ‘‘(2) education or counseling services de- debt, and understand the merits of estab- signed to improve the financial literacy and signed to improve the financial literacy and lishing and maintaining excellent credit his- economic literacy of students and their par- economic literacy of students and their par- tory; ents;’’; and ents;’’; and ‘‘(3) understand, evaluate, and compare fair (C) in subparagraph (M), as redesignated by (C) in paragraph (11), as redesignated by and favorable financial products, services, subparagraph (A), by striking ‘‘subpara- subparagraph (A), by striking ‘‘paragraphs and opportunities, and avoid abusive, preda- graphs (A) through (K)’’ and inserting ‘‘sub- (1) through (9)’’ and inserting ‘‘paragraphs (1) tory, or deceptive financial products, serv- through (10)’’; ices, and opportunities; paragraphs (A) through (L)’’; (4) in section 317(c)(2)— (11) in section 402E(b)— ‘‘(4) complete tax returns and understand (A) by redesignating paragraphs (7) and (8) tax consequences when making certain fi- (A) in subparagraph (G), by striking ‘‘and’’ after the semicolon; as paragraphs (8) and (9), respectively; and nancial decisions, such as placing an invest- (B) by inserting after paragraph (6) the fol- ment or purchasing a home; (B) in subparagraph (H), by striking the pe- riod at the end and inserting ‘‘; and’’; and lowing: ‘‘(5) identify economic problems, alter- ‘‘(7) education or counseling services de- natives, benefits, and costs; (C) by adding at the end the following: ‘‘(I) education or counseling services de- signed to improve the financial literacy and ‘‘(6) analyze the incentives at work in an economic literacy of students and their par- economic situation; signed to improve the financial literacy and economic literacy of students and their par- ents;’’; ‘‘(7) examine the consequences of changes (12) in section 402F(b)— in economic conditions and public policies; ents.’’; (5) in section 323(a)— (A) by redesignating paragraphs (4) ‘‘(8) collect and organize economic evi- through (10) as paragraphs (5) through (11), dence, including understanding, evaluating, (A) by redesignating paragraphs (7) through (12) as paragraphs (8) through (13), respectively; and making strategic decisions using eco- (B) by inserting after paragraph (3) the fol- respectively; and nomic indicators; lowing: (B) by inserting after paragraph (6) the fol- ‘‘(9) compare benefits with costs; and ‘‘(4) education or counseling services de- lowing: ‘‘(10) improve financial and economic lit- signed to improve the financial literacy and ‘‘(7) Education or counseling services de- eracy and education through all other re- economic literacy of students and their par- signed to improve the financial literacy and lated skills.’’. ents;’’; and economic literacy of students and their par- SEC. 3. COORDINATION. (C) in paragraph (11), as redesignated by ents.’’; In carrying out the financial and economic subparagraph (A), by striking ‘‘paragraphs (6) in section 326(c)— literacy activities authorized under this Act (1) through (9)’’ and inserting ‘‘paragraphs (1) (A) by redesignating paragraphs (5) and the amendments made by this Act, the through (10)’’; through (7) as paragraphs (6) through (8), re- Secretary of Education, to the greatest ex- (13) in section 404D(b)(2)(A)(ii), by striking tent practicable, shall coordinate such ac- spectively; and ‘‘and academic counseling’’ and inserting tivities with the financial and economic lit- (B) by inserting after paragraph (4) the fol- ‘‘academic counseling, and financial literacy eracy efforts of a Federal commission com- lowing: and economic literacy education or coun- prised of the following: ‘‘(5) education or counseling services de- seling’’; (1) The Secretary of the Treasury. signed to improve the financial literacy and (14) by striking section 418A(c)(1)(B)(i) and (2) The respective head of each of the fol- economic literacy of students and their par- inserting the following: lowing: ents;’’; ‘‘(i) personal, academic, career, and eco- (A) Each of the Federal banking agencies (7) in section 503(b)— nomic education or personal finance coun- (as defined in section 3 of the Federal De- (A) by redesignating paragraphs (5) seling as an ongoing part of the program;’’; posit Insurance Act (12 U.S.C. 1813)). through (14) as paragraphs (6) through (15), (15) in section 428F, by adding at the end (B) The National Credit Union Administra- respectively; and the following: tion. (B) by inserting after paragraph (4) the fol- (C) The Securities and Exchange Commis- lowing: ‘‘(c) FINANCIAL AND ECONOMIC LITERACY.— sion. ‘‘(5) Education or counseling services de- Where appropriate, each program described (D) Each of the Departments of Education, signed to improve the financial literacy and under subsection (b) shall include making Agriculture, Defense, Health and Human economic literacy of students and their par- available financial and economic education Services, Housing and Urban Development, ents.’’; materials for the borrower.’’; Labor, and Veterans Affairs. (8) in section 402B(b)— (16) in section 432(k)(1), by striking ‘‘and (E) The Federal Trade Commission. (A) by redesignating paragraphs (3) offering’’ and all that follows through the pe- (F) The General Services Administration. through (10) as paragraphs (4) through (11), riod and inserting ‘‘, offering loan repayment (G) The Small Business Administration. respectively; matching provisions as part of employee (H) The Social Security Administration. (B) by inserting after paragraph (2) the fol- benefit packages, and providing employees (I) The Commodity Futures Trading Com- lowing: with financial and economic education and mission. ‘‘(3) education or counseling services de- counseling.’’; (J) The Office of Personal Management. signed to improve the financial literacy and (17) in section 441(c)— (3) At the discretion of the President, not economic literacy of students and their par- (A) in paragraph (1), by inserting ‘‘finan- more than 5 individuals appointed by the ents;’’; and cial literacy and economic literacy,’’ after President from among the administrative (C) in paragraph (11), as redesignated by ‘‘social services,’’; and heads of any other Federal agencies, depart- subparagraph (A), by striking ‘‘paragraphs (B) in paragraph (4)(C), by striking the pe- ments, or other Government entities, whom (1) through (9)’’ and inserting ‘‘paragraphs (1) riod at the end and inserting ‘‘and coun- the President determines to be engaged in a through (10)’’; seling for the purposes of improving finan- serious effort to improve financial literacy (9) in section 402C— cial literacy and economic literacy.’’; and education. (A) in subsection (b)— (18) in section 485—

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00132 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16013 (A) in subsection (a)(1)(D), by striking the a mainstream financial institution, the anty agencies as emphasized by the Sec- semicolon at the end and inserting ‘‘, includ- counseling shall include information about retary of Education pursuant to section 123 ing the merits of taking a personal finance low-cost financial services and the benefits of the Higher Education Act of 1965. course, if the institution offers such a of using such services, and where and how Mr. AKAKA. Mr. President, I am course, and of the student reviewing the stu- the borrower could open a low-cost account pleased to introduce the Financial Lit- dent’s personal credit profile not less fre- in a federally insured credit union or bank. eracy in Higher Education Act with quently than once a year;’’; ‘‘(ii) PERMISSIVE USE.—Grant funds re- (B) in subsection (b)— ceived under this paragraph may be used to Senator ENZI and original cosponsors (i) in paragraph (1)(A)— pay for additional financial aid personnel or of S. 1800, the College LIFE, Literacy (I) in clause (i), by striking ‘‘and’’ after the for training for existing financial aid per- in Finance and Economics Act, Sen- semicolon; sonnel. ators SARBANES and CORZINE. (II) in clause (ii), by striking the period at ‘‘(iii) STUDY.— This is truly a bipartisan com- the end and inserting ‘‘; and’’; and ‘‘(I) IN GENERAL.—An institution of higher promise on the provisions of S. 1800, (III) by adding at the end the following: education that receives a grant under this the College LIFE Act, and I appreciate ‘‘(iii) if it is determined during the coun- paragraph shall conduct a study to evaluate seling that the borrower is not connected to the impacts, if any, of the financial and eco- Senator ENZI’s willingness to collabo- a mainstream financial institution, informa- nomic literacy and counseling activities on rate on this matter. As in S. 1800, the tion about low-cost financial services and students’ levels of savings and indebtedness, Financial Literacy in Higher Edu- the benefits of using such services, and and creditworthiness, and such activities’ ef- cation Act proposes a pilot program for where and how the borrower could open a fectiveness in reducing the incidence of prob- five higher education institutions to low-cost account in a federally insured cred- lems with handling credit, including bank- encourage students to take a personal it union or bank.’’; and ruptcy filing and student financial loan de- (ii) by adding at the end the following: finance course and participate in pre- fault. ventive annual credit counseling, ‘‘(3) PILOT PROGRAM.— ‘‘(II) ASSISTANCE.—An institution of higher ‘‘(A) AUTHORIZATION.— education may conduct the study under sub- working in conjunction with State or ‘‘(i) IN GENERAL.—The Secretary shall es- clause (I) with the assistance of appropriate local public, private, and nonprofit en- tablish a pilot program that awards a total Federal agencies or other entities approved tities selected by the local education of 5 grants to 5 different institutions of high- by the Secretary. agency or the school, and measuring er education that are located in geographi- ‘‘(III) REPORT.—Not later than 6 months the effectiveness of efforts in any be- cally different parts of the United States to after completion of the study under sub- enable the institutions to provide annual havioral changes that may result. clause (I), the institution of higher education The bill emphasizes the importance personal finance counseling for students en- shall report the results of such study to the rolled at such institutions. of personal finance and economic edu- Secretary, the Secretary of the Treasury, cation and counseling by authorizing ‘‘(ii) MINORITY SERVING INSTITUTIONS.—In the Committee on Health, Education, Labor, awarding grants under this paragraph, the and Pensions of the Senate, the Committee these activities as allowable uses in ex- Secretary shall award not less than 2 of the on Banking, Housing, and Urban Affairs of isting Higher Education Act programs, 5 grants to institutions of higher education the Senate, the Committee on Education and such as TRIO, GEAR UP, and title III that are eligible to receive assistance under the Workforce of the House of Representa- and title V Serving Institutions. These title III or title V. tives, and the Committee on Financial Serv- ‘‘(B) APPLICATION.—An institution of high- are programs that have been successful ices of the House of Representatives. er education that desires to receive a grant in expanding higher education access ‘‘(D) DURATION.—Grants awarded under under this paragraph shall submit an appli- to populations with unique needs and, this paragraph shall be for a period of 3 cation to the Secretary at such time, in such therefore, are ideal avenues through years. manner, and containing such information as ‘‘(E) AMOUNT.—The Secretary shall award which we can further the important the Secretary may require. grants of not more than $1,000,000 annually components of financial and economic ‘‘(C) USE OF FUNDS.— to each institution of higher education literacy, such as wise budgeting, sav- ‘‘(i) COUNSELING.— awarded a grant under this paragraph. The ‘‘(I) IN GENERAL.—In addition to making ing, debt management, tax prepara- available exit counseling under paragraph Secretary may determine the grant award tion, and avoiding predatory or abusive (1), an institution of higher education that amount based on the number of students to practices. receives a grant under this paragraph shall be counseled at the institution of higher edu- The bill promotes greater collabora- through financial aid officers or otherwise, cation. tion with and support from Federal make available counseling to borrowers of ‘‘(F) REPORT.—Not later than 90 days after the date of completion of the pilot program agencies in the higher education arena loans which are made, insured, or guaranteed with respect to economic and financial under part B (other than loans made pursu- under this paragraph, the Secretary shall ant to section 428B) of this title or made submit a report to Congress on the effective- literacy, including coordination with under part D or E of this title at the com- ness of the program. the Financial Literacy and Education mencement of the borrower’s course of study ‘‘(G) AUTHORIZATION OF APPROPRIATIONS.— Commission, which was created by at the institution, not less frequently than There is authorized to be appropriated to title V of H.R. 2622, the Fair and Accu- once annually while the borrower is enrolled carry out this paragraph such sums as may rate Credit Transactions Act of 2003. at the institution, and not later than 30 days be necessary for each of fiscal years 2005 The conference report of H.R. 2622 was after completion of the course of study for through 2009.’’; and (C) in subsection (c), by adding at the end adopted recently by this Chamber and which the borrower enrolled at the institu- the other body. For those who may not tion or at the time of departure from such the following: ‘‘Appropriate Federal agencies institution. shall provide material developed by such be familiar with the Commission, the ‘‘(II) CONTENT.—The counseling required agencies for the purpose of financial edu- new entity will work to improve finan- under subclause (I) shall include the average cation, to financial assistance information cial literacy and education in the anticipated monthly repayments, a review of personnel at institutions of higher education United States through the development the repayment options available, the total for the use of such personnel in financial aid of a national strategy. amount of interest that would be paid over a counseling.’’; and I urge my colleagues to support this range of possible interest rates and the (19) in section 491(d)(8), by inserting ‘‘, in- cluding those related to financial literacy bipartisan effort to increase the finan- amount of interest in the monthly pay- cial and economic literacy of our col- ments, information on the availability and activities,’’ after ‘‘resources and services’’. content of a personal finance course if such SEC. 5. EVALUATION. lege students. I will also work with my course is offered by the institution and if not Not later than 6 years after the date of en- colleagues on advancing the grant pro- already completed by the individual, and actment of this Act, the Comptroller General grams in S. 1800 that are not in our such debt and management strategies as the of the United States shall submit to the compromise package, because I feel institution determines are designed to facili- Committee on Health, Education, Labor, and that those, too, are important parts of tate the repayment of such indebtedness, Pensions of the Senate, the Committee on our overall effort. Students in higher which may be implemented in partnership Banking, Housing, and Urban Affairs of the education are some of our Nation’s best with State or local public, private, and non- Senate, the Committee on Education and the and brightest, and we must work to profit entities approved by the local edu- Workforce of the House of Representatives, cational agency that serves schools in the and the Committee on Financial Services of give them the tools that will help them area where the institution is located, or a the House of Representatives, an evaluation succeed. Not the least among these is campus committee formed for the purpose of of the range and effectiveness of financial literacy in personal finance and eco- evaluating the qualifications of such enti- and economic education and financial aid nomics. ties. If it is determined during the coun- counseling activities of institutions of high- seling that the borrower is not connected to er education, lenders, servicers, and guar- By Mr. ROCKEFELLER:

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00133 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16014 CONGRESSIONAL RECORD — SENATE November 25, 2003 S. 1970. A bill to amend title 11, More and more we see companies left holding the bag when their com- United States Code, to increase the taking the easy road to profitability by pany declares bankruptcy. In that case, amount of unsecured claims for sala- abandoning commitments that they employees were owed an average of ries and wages given priority in bank- made to workers. For retirees who $35,000 in back-wages, severance, and ruptcy, to provide for cash payments to have planned for their golden years other promised compensation. They de- retirees to compensate for lost health based on the benefits they have earned, served to recover more than a mere insurance benefits resulting from the losing health insurance can be a dev- $4,650 of what was owed them. Let me bankruptcy of their former employer, astating blow. Retirees must have the be clear, this bill does not establish and for other purposes; to the Com- right to reasonable compensation if the any new obligation for a company to mittee on the Judiciary. company seeks to break its promise to pay severance or other compensation Mr. ROCKEFELLER. Mr. President, provide health insurance. Under cur- to employees caught up in a company’s over the last several years as the econ- rent law, these retirees receive what is bankruptcy. It merely ensures that em- omy came down from the high of the called a general unsecured claim for ployees can recover more of what is al- 1990s, we have seen how devastating it the value of the benefits they lost. As ready owed to them through the bank- can be for workers when their compa- any creditor will tell you, a general un- ruptcy process. nies declare bankruptcy. From the secured claim is essentially worthless I understand that many creditors or enormous Enron bankruptcy at the end in most bankruptcies. It means you are investors are not able to recover what of 2001 to the bankruptcies of Wheel- at the end of the line, and there are not is rightfully owed to them in bank- ing-Pitt and then Weirton Steel in my enough assets to go around. This law ruptcy, but employees deserve protec- own home State, every bankruptcy has allows companies to essentially rescind tion that recognizes the unique nature brought heartache for workers who had compensation that retirees have earned of their dependence on their employer. dedicated themselves to their employ- with virtually no cost to the company. Any smart investor diversifies his or ers. In many cases, employees and re- Of course that is a great deal for the her portfolio so that a bankruptcy at tirees have very limited ability to re- company, but it is spectacularly unfair one company does not bankrupt the in- cover the wages, severance, or benefits to the retirees. vestor. Likewise, suppliers and credi- they are due when their companies Recognizing that so-called legacy tors that do business with a company seek protection from creditors. costs are often an impossible burden typically have many other clients. This Workers deserve better. So today I for a company that is trying to emerge is not the case with workers. They can- am introducing the Bankruptcy Fair- from bankruptcy, my legislation would not diversify away from the risk of ness Act to strengthen workers’ rights still allow companies in some cir- working for a bankrupt company, and in bankruptcy and to provide greater cumstances to alter the health cov- the financial hardship a bankruptcy authority to bankruptcy courts to en- erage offered to retirees. However, it brings is more devastating to the aver- sure a fair distribution of assets. Spe- would require that the company pay a age worker than the average creditor cifically, my bill will do three things. minimum level of compensation to re- or supplier. It will ensure that retirees whose tirees. Under this bill, each retiree Now, I know that some of my col- promised health insurance is taken would be entitled to a payment equal leagues listening to this may be wor- away receive at least some compensa- to the cost of purchasing comparable rying that this legislation is insensi- tion for their lost benefits. Second, my health insurance for a period of 18 tive to the needs of companies that are legislation would allow employees to months. Of course, 18 months of health trying to reorganize in order to emerge recover more of the back-pay or other insurance coverage is a lot less than from bankruptcy and go forward as compensation that is owed to them at many of these retirees are losing, but successful businesses. I am fully aware the time of the bankruptcy. And lastly, it can ease the transition as retirees that sometimes, too often in the real I would provide bankruptcy courts the make alternative plans, and it will dis- world, the bankruptcy process can help authority to recover company assets in courage companies from thinking that companies stay open and maintain jobs cases where company managers fla- terminating retiree health coverage is by restructuring obligations to credi- grantly paid excessive compensation to an easy solution. The retirees would tors. Too many companies in West Vir- favored employees just before declaring still be entitled to a general unsecured ginia have had to go through the pain- bankruptcy. claim for the value of the benefits lost ful process of Chapter 11 reorganiza- I am proposing this legislation as a in excess of this one time payment. tion. I completely understand the need way to start a dialogue about how we This change would ensure that retirees, to keep the factories open. And I have can better protect workers whose com- while still not being made whole on always worked side by side with com- panies file for bankruptcy. I do not pre- lost benefits, will at least receive some panies to help them recover. tend to have all the answers. But I do compensation for the broken promises. I will continue that important work, know that we must do a better job of Many active workers, too, have a dif- and I have included a provision in this easing the burden that bankruptcy im- ficult time recovering what is owed to bill to help bankrupt companies that poses on employees and retirees. And I them by their employer when the com- are struggling to survive to recover as- believe that we can do so in creative pany files bankruptcy. Under current sets that have been pilfered from the ways that do not make it more dif- law, employees are entitled to a pri- corporate coffers. In too many cases, ficult for companies to successfully re- ority claim of up to $4,650. But that fig- company executives reward themselves organize and emerge from bankruptcy. ure is usually not enough to cover the even as their companies careen toward I look forward to the ideas and sugges- back-wages, vacation time, severance bankruptcy. The most egregious recent tions of my colleagues. pay, or benefit payments that the em- example is at Enron in 2001. In the days In the simplest economic terms, em- ployees are owed for work done prior to and weeks leading up to the bank- ployees sell their labor to their compa- the bankruptcy. Congress needs to up- ruptcy filing, executives granted large nies. They toil away in offices, plants, date the amount of the priority claim bonuses to themselves and their fa- factories, mills, and mines, because to ensure that more workers are able vored employees. Millions of dollars they are promised that at the end of to receive what is rightfully theirs. were paid to a select group of employ- the day they will receive certain com- The Bankruptcy Fairness Act would es- ees just before the company declared pensation. One of the most important tablish a priority claim for the first bankruptcy. It is unconscionable that types of compensation that workers $15,000 of compensation owed to an em- executives would grant themselves earn is the right to enjoy certain bene- ployee. undeserved bonuses and then weeks fits when they retire. Pensions, life in- In most cases, employees have been later claim that the company did not surance, or health care coverage are working their hardest to help the com- have the resources to pay its rank and earned by workers in addition to their pany avoid the nightmare of bank- file employees. weekly paychecks. Yet, sadly we have ruptcy, only to find that they will not My legislation provides bankruptcy seen many companies in the last few be compensated for their services as courts greater authority to recover ex- years abandon these promises when promised. As we saw so clearly with cessive compensation that was paid they declare bankruptcy. the Enron case, employees are often just prior to the bankruptcy filing. If

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00134 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16015 the court finds that compensation was ernance, disclosures to investors, late holders’ interest. Neither fund insiders out of the ordinary course of business trading and market timing, increased nor preferred customers must enjoy or was unjust enrichment, the court regulatory oversight, and financial lit- privileges like market timing that are can recover those assets for the bank- eracy. denied to the millions of average mu- rupt company, ensuring that more This legislation significantly im- tual fund investors. creditors, employees, and retirees can proves corporate governance standards Late trading is already illegal, but receive what is rightfully owed to them at mutual funds. Investors have begun we now know it isn’t isolated. The sys- by the company. to lose faith that their hard earned tem for prohibiting late trading in mu- The reforms I have outlined are mod- savings are not being managed with tual funds must be strengthened, so all est. They will not take the sting out of their best interests in mind. Mutual mutual fund investors are treated fair- bankruptcy. By definition a bank- fund boards must have greater inde- ly. This legislation creates new re- ruptcy is a failure, and it is painful for pendence from fund managers and be quirements for intermediaries and the company’s employees, retirees, and more accountable to shareholders of funds to ensure that illegal late trad- business partners. But the Bankruptcy the fund. Directors and chairmen must ing activities are stopped. Fairness Act I am introducing today exercise greater oversight to ensure As a result of the recent widespread would make progress toward ensuring that funds are run in the interest of scandals in this area, we must rededi- that bankruptcies are more fair to the their shareholders—and be accountable cate our regulatory oversight of the workers who gave their time and en- to shareholders for failing to do so. Ad- mutual fund industry. Due to the tre- ergy and sweat to the company in ex- ditionally, this legislation directs the mendous size of mutual funds and how change for certain promised compensa- SEC to determine whether directors critical of an investment tool they are tion. And by helping a company re- and chairmen need additional tools to to small investors, this legislation di- cover assets that should not have been carry out that job. rects the General Accounting Office to paid out as undeserved bonuses just be- This legislation mandates that cor- consider the value of creating a new fore bankruptcy the bill ensures that porate governance requirements cre- self regulatory body and/or inde- more of a company’s assets are paid to ated in the Sarbanes-Oxley Act, such pendent regulator for mutual fund the employees, retirees, and creditors as director independence requirements, oversight. who are rightfully owed. financial expertise, and certification Lastly, this legislation calls for im- It is my hope that this legislation measures apply to mutual funds. Of proved efforts to promote financial lit- will receive serious consideration from particular note, this legislation man- eracy among mutual fund shareholders. my colleagues, and that this can open dates that funds employ a chief compli- Ensuring that investors have the re- an important debate about how work- ance officer to ensure that internal sources available to them to under- ers and retirees can be better protected controls, policies and procedures are stand the benefits and costs of mutual from the ugly side of prolonged eco- met by the fund in the interest of funds is a fundamental importance. nomic downturns. shareholders. The Mutual Fund Investor Con- We need to improve the disclosures fidence Restoration Act is an impor- By Mr. CORZINE (for himself, to investors about the fees and costs tant step in the right direction of re- Mr. DODD, and Mr. LIEBERMAN): associated with mutual funds. Current storing the integrity of the mutual S. 1971. A bill to improve trans- disclosures are inadequate in providing fund industry and will greatly improve parency relating to the fees and costs investors the information necessary to the basic protections given to investors that mutual fund investors incur and understand the true costs of investing who rely upon these investment vehi- to improve corporate governance of through mutual funds. The current ex- cles for their economic security. mutual funds; to the Committee on pense ratio by no means includes all of Mr. CORZINE. Mr. President, I rise Banking, Housing, and Urban Affairs. the fund’s expenses. along with my colleague from Con- Mr. DODD. Mr. President, I rise This legislation requires that cur- necticut, Senator DODD, to introduce today, with my colleague from New rently unaccounted for expenses, such the Mutual Fund Investor Confidence Jersey, to introduce a measure that is as brokerage commissions, advertising Restoration Act of 2003, a bill that critical to improving the investing fees and research costs, among others, would improve the oversight of the mu- public’s faith in our capital markets. are fully disclosed. tual fund industry, enhance fund gov- This legislation, the ‘‘Mutual Fund In- Additionally, the legislation requires ernance, and protect the millions of vestor Confidence Restoration Act’’ the breakout of these respective costs Americans who invest in these funds. will fundamentally strengthen protec- to be displayed as a graph provided to Mutual funds are the primary means tions for the millions of investors who shareholders that will enable them to for investors to participate in the mar- rely on mutual funds for their financial compare the costs associated with own- ket. Approximately 95 million Ameri- security. ing shares of different mutual funds. cans invest in mutual funds, and in- America is the land of opportunity. The ability to compare the total costs vestments total near $7 trillion dollars. Millions of Americans and countless of mutual funds with each other will The industry, one of our oldest and others around the world seek the op- drive competition and lower costs for most-revered, is entrusted by those portunity to participate in the eco- investors. shareholders with their dreams of a nomic life of our nation. Mutual funds Investors deserve to know if their comfortable retirement, the ability to are a principal pathway through which broker has a financial incentive to pay their children’s college tuition, most investors achieve financial secu- steer them into particular mutual buy a first home or pursue other life- rity. Mutual funds have in the past not funds. This legislation mandates great- long dreams. only lived up to, but in many cases ex- er disclosure of financial incentives It’s not a stretch to say that in many ceeded, the grand expectations of in- provided to intermediaries and requires ways the mutual fund industry has vestors. They are a true success story fund companies and investment advis- been the standard bearer for ethical be- of our securities markets and our sys- ers to fully disclose certain sales prac- havior, strong oversight and govern- tem of securities regulation. tices, including revenue-sharing and di- ance committed to investor protection However, in recent months, a series rected brokerage arrangements and in our capital markets. Few, if anyone, of revelations has shaken investor con- disclose the value of research and other would dare to have suggested that our fidence in the promise of mutual funds. services paid for as part of brokerage mutual fund industry could become fer- We must restore the faith of investors commissions. tile ground for the types of ‘infectious in mutual funds and those who manage The recent abuses that we have seen greed’ we witnessed during the govern- them. This legislation is designed to with respect to late trading and mar- ance and accounting scandals a few address some of the abuses and short- ket timing must be stopped to restore years ago. comings which have received so much investors faith in mutual funds. Insider But that is just what has happened. recent attention. dealings at mutual funds must never Today, the mutual fund industry There are five broad areas which this recur. Fund insiders must be prohibited faces its own litany of scandals cen- legislation addresses: corporate gov- from trading against their own share- tered on allegations of investor fraud,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00135 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16016 CONGRESSIONAL RECORD — SENATE November 25, 2003 flawed corporate governance, financial evant securities laws, including meas- through late trading and market tim- conflicts of interest and outright inves- ures preventing market-timing and ing. Late trading refers to the practice tor abuse. Names like Putnam and Ca- late trading abuses, are in place at the of placing orders to buy or sell mutual nary Capital have become synonymous fund and with the investment adviser. fund shares after 4 p.m., and market with Enron, Tyco and WorldCom in Additionally, the legislation calls for timing is short-term trading in and out terms of the financial harm inflicted the disclosure of insider transactions of stocks in the hope of exploiting an upon investors, undermining their con- by mutual fund managers and Board inefficiency in the fund’s share price. fidence and trust in America’s finan- notification of Securities and Ex- To address the issue of market tim- cial markets. change Commission (SEC) deficiency ing, the legislation requires the SEC to The vast majority of those who work letters. ensure that fund companies are in com- in this industry are decent, hard-work- Another issue of concern with the pliance with the Investment Company ing individuals who make a significant mutual fund industry is the inadequate Act rules requiring them to use fair contribution to the betterment of our and confusing disclosure provided to value calculation to determine the net nation. shareholders regarding expenses. Fund asset value a fund company’s securities Unfortunately, there are also far too shareholders are responsible for paying when market quotations are otherwise many associated with this profession— various fees and costs related to the unavailable or do not accurately re- including some investment advisors, operation and trading activity of the flect the companies fair market value. fund board members, and those in fund fund. While funds provide investors This provision would eliminate the company management—who are all too with certain fee-related disclosure, stale pricing that allows market timers willing to disregard their fiduciary ob- shareholders are largely in the dark to profit, often illicitly, from the inac- ligation to shareholders in order to about many other costs that impact curate pricing of a fund’s shares. pursue their own personal self-enrich- the value of their fund’s assets. The legislation would also require ment. The legislation includes numerous the SEC to establish a rule requiring Investors should not perceive that provisions aimed at improving the fund companies and investment advis- the deck is stacked against them. They cost, fee and other disclosures share- ers to develop and disclose formal poli- should not think that there are dif- holders receive from mutual funds. cies related to market timing and ferent rules—one that applies to them These would include requirements that short term trading. Certification by and a different and considerably less funds disclose the actual cost borne by fund company management would fur- ther ensure that policies are being ad- stringent set that applies to wealthy each shareholder for the operating ex- hered to. industry insiders. penses of the fund and the estimated To address late trading, the bill re- The legislation we are introducing expenses paid for costs associated with quires the SEC to issues rules and es- today, The Mutual Fund Investor Con- management of the fund that reduces tablishes guidelines for trades in fund fidence Restoration Act will make sure the fund’s overall value, including bro- securities that go through newly estab- that the playing field stays level. kerage commissions, revenue sharing lished ‘‘permitted intermediaries’’, This bill has five primary themes: and directed brokerage arrangements, such as broker-dealers. The rules would improving mutual fund governance; en- transactions costs another fees. allow these permitted intermediaries hancing cost, fee and other important The legislation would require a to execute trades of a fund after the disclosures to shareholders; preventing breakdown of these respective costs to funds net asset value has been derived, be displayed graphically, in order to abusive mutual fund practices such as if the intermediary has; a policy in late trading and market timing; provide shareholders with the requisite place that the company does not per- strengthening mutual fund industry information to compare the costs asso- mit late trades, mechanisms in place to oversight; and promoting fund share- ciated with owning shares of various detect late-trades and if that inter- holder literacy. mutual funds. mediary make those procedures avail- In addition these requirements, the Let me give a more detailed summa- able for inspection by the SEC. Non- legislation would require fund compa- tion of what this legislation would do permitted intermediaries would be re- nies and investment advisers to fully and why it is so important. quired to submit their transactions to Boards of directors for mutual funds disclose certain sales practices, includ- the fund company prior to market have been criticized recently for the ing revenue-sharing and directed bro- close. high number of directorships that kerage arrangements, shareholder eli- To reduce other conflicts, the legisla- members hold, the lack of board inde- gibility for breakpoint discounts and tion would prohibit mutual fund man- pendence from fund management and the value of research and other services agers from jointly managing a hedge the failure of several to fulfill their fi- paid for as part of brokerage commis- fund, and would prohibit short-term duciary responsibility to shareholders. sions, directing the SEC to study so- trading by fund and investment com- This legislation would strengthen fund called ‘‘soft-dollar’’ arrangements. pany management and requires disclo- governance by establishing truly inde- As I mentioned earlier, Mr. Presi- sure of insider transactions. pendent mutual fund boards, chairmen, dent, this bill includes measures aimed In seeking to bolster mutual fund in- nominating committees and inde- at preventing abusive mutual fund dustry oversight, this legislation would pendent audit committees that con- practices, such as late trading and require the SEC to review the alloca- form to Sarbanes-Oxley Act require- market timing, that diminish the tion of the resources it has dedicated ments for those at publicly traded com- shareholders’ assets of a particular to industry oversight and the General panies. fund. First, the legislation seeks to en- Accounting Office (GAO) to study the The bill would also improve fund gov- sure that fund companies and invest- feasibility of establishing a new, inde- ernance by requiring Sarbanes-Oxley- ment advisers have adequate share- pendent regulator—the Mutual Fund like ‘‘certification’’ from Board Chair- holder safeguards in palace, and that Oversight Board. The bill also would men and newly-designated Chief Com- they ‘certify’ these internal control direct the SEC to establish incentives pliance Officers that shareholders safe- procedures. Those would include estab- and protections for whistleblowers and guards are in place within the fund. lishing a code of ethics, improving the would require the GAO to independ- Also, it would ensure that accurate accurate disclosure of fund company ently review and report to Congress on disclosures to shareholders, including policies, and ensuring compliance ef- the coordination of enforcement efforts cost and fee information, are contained forts are overseen by the chief compli- between the SEC, its regional offices, in the prospectus. ance officer. and state regulators. The legislation includes other ‘cer- The bill also would also take steps Finally, this bill calls for a study tifiable’ requirements for board chair- aimed at directly preventing abusive into ways in which we can improve and men and chief compliance officers, in- practices and conflicts of interest. The promote financial literacy among mu- cluding disclosures that internal con- recent scandals surrounding mutual tual fund shareholders. And the legisla- trols, a code of ethics and personnel funds primarily focus on brokers and tion, through its enhanced disclosures designated to ensuring adherence to fund officials that have engaged in the to shareholders, already makes a sig- stated polices and compliance with rel- improper trading of mutual fund shares nificant contribution to improving

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00136 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16017 shareholder understanding of the poli- ment company, in the quarterly statement (ii) DISPLAY.—Each category of costs under cies of the fund and the costs associ- or other periodic report to shareholders or clause (i) shall be presented in a graphical ated with its management and oper- other appropriate disclosure document, of— display (such as a bar or pie chart) that ation. (A) the actual dollar amount, borne by shows each category as a percentage of the each shareholder, of the expenses of the com- total dollar amount under paragraph (1)(D). There being no objection, the bill was pany; (C) CERTIFICATION.—Not later than 90 days ordered to be printed in the RECORD, as (B) the structure of, method used to deter- after the date of enactment of this Act, the follows: mine, and the total amount of the compensa- Securities and Exchange Commission shall S. 1971 tion of individuals employed by the invest- issue rules or regulations requiring the inde- Be it enacted by the Senate and House of Rep- ment adviser of the company to manage the pendent audit of the estimate required under resentatives of the United States of America in portfolio of the company, and the ownership paragraph (1)(D) and certification by the in- Congress assembled, interest of such individuals in the securities vestment adviser and the chairman of the board of directors of the open-end invest- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. of the company, including when such individ- ment company. (a) SHORT TITLE.—This Act may be cited as uals have no ownership interest in the com- PPROPRIATE DISCLOSURE DOCUMENT.— the ‘‘Mutual Fund Investor Confidence Res- pany; (b) A (1) IN GENERAL.—For purposes of subsection toration Act of 2003’’. (C) whether the chairman of the board of (a)(1), a disclosure shall not be considered to (b) TABLE OF CONTENTS.—The table of con- directors of the open-end management in- tents for this Act is as follows: vestment company or any directors of the in- be made in an appropriate disclosure docu- vestment adviser of such company employed ment if the disclosure is made exclusively in Sec. 1. Short title; table of contents. to manage the portfolio of the company do a prospectus or statement of additional in- TITLE I—ENHANCING COST, FEE, AND not own any securities of the company; formation, or both such documents. OTHER DISCLOSURES TO SHARE- (D) the estimated total annual dollar (2) EXCEPTIONS.—Notwithstanding para- HOLDERS amount of fees, costs, expenses, taxes, and graph (1), the disclosures required by para- Sec. 101. Improved transparency of mutual any other payments made by the company graph (1)(B), (C), and (E) of subsection (a) fund costs. for any purpose, excluding only pro rata dis- may be considered to be made in an appro- Sec. 102. Obligations regarding certain dis- tributions to shareholders, and set forth in a priate disclosure document if the disclosure tribution and soft dollar ar- manner that facilitates comparison among is made exclusively in a prospectus or state- rangements. different companies; ment of additional information, or both such Sec. 103. Definition of no-load mutual fund. (E) information concerning the company’s documents. Sec. 104. Disclosure of incentive compensa- policies and practices with respect to the SEC. 102. OBLIGATIONS REGARDING CERTAIN tion and mutual fund sales. payment of commissions for effecting securi- DISTRIBUTION AND SOFT DOLLAR TITLE II—MUTUAL FUND GOVERNANCE ties transactions to a member of an ex- ARRANGEMENTS. Sec. 201. Independent mutual fund boards. change, broker, or dealer who— Section 15 of the Investment Company Act Sec. 202. Audit committee requirements for (i) furnishes advice, either directly or of 1940 (15 U.S.C. 80a–15) is amended by add- investment companies. through publications or writings, as to the ing at the end the following: Sec. 203. Informing directors of significant value of securities, the advisability of in- ‘‘(g) OBLIGATIONS REGARDING CERTAIN DIS- deficiencies. vesting in, purchasing, or selling securities, TRIBUTION AND SOFT DOLLAR ARRANGE- Sec. 204. Certification by chairman and chief and the availability of securities or pur- MENTS.— compliance officer. chasers or sellers of securities; ‘‘(1) REPORTING REQUIREMENTS.—Each in- (ii) furnishes analyses and reports con- vestment adviser to a registered investment TITLE III—PREVENTING ABUSIVE cerning issuers, industries, securities, eco- company shall, not less frequently than an- MUTUAL FUND PRACTICES nomic factors and trends, portfolio strategy, nually, submit to the board of directors of Sec. 301. Prevention of fraud; internal com- and the performance of accounts; or the company a report on— pliance and control procedures. (iii) facilitates the sale and distribution of ‘‘(A) payments during the reporting period Sec. 302. Ban on joint management of mu- the company’s shares; by the adviser (or an affiliated person of the tual funds and hedge funds. (F) information concerning payments by adviser) that were directly or indirectly Sec. 303. Restrictions on short term trading any person other than the company that are made for the purpose of promoting the sale and mandatory redemption intended to facilitate the sale and distribu- of shares of the investment company (re- fees. tion of the company’s shares; and ferred to in paragraph (2) as a ‘revenue shar- Sec. 304. Elimination of stale prices. (G) information concerning discounts on ing arrangement’); Sec. 305. Formal policies and procedures re- front-end sales loads for which investors may ‘‘(B) services to the company provided or lated to market timing. be eligible, including the minimum purchase paid for by a broker or dealer or an affiliated Sec. 306. Prevention of late trades. amounts required for such discounts. person of the broker or dealer (other than Sec. 307. Disclosure of insider transactions. (2) RULES AND REGULATIONS.— brokerage and research services) in exchange TITLE IV—STRENGTHENING MUTUAL (A) OTHER MANAGEMENT AND SERVICE-RE- for the direction of brokerage to the broker FUND INDUSTRY OVERSIGHT LATED COST.—Not later than 180 days after or dealer (referred to in paragraph (2) as a Sec. 401. Study of Mutual Fund Oversight the date of enactment of this Act, the Secu- ‘directed brokerage arrangement’); and Board. rities and Exchange Commission shall issue ‘‘(C) research services obtained by the ad- Sec. 402. Study of coordination of enforce- rules or regulations defining ‘‘fees, costs, ex- viser (or an affiliated person of the adviser) ment efforts. penses, taxes, and any other payments made during the reporting period from a broker or Sec. 403. Review of Commission resources. by the company’’ for purposes of paragraph dealer, the receipt of which may reasonably Sec. 404. Commission study and report regu- (1)(D). Such definition shall include any be attributed to securities transactions ef- lating soft dollar arrangements. management fees, transfer agency expenses, fected on behalf of the company or any other Sec. 405. Report on adequacy of regulatory custodial fees, shareholder servicing fees, company that is a member of the same group response to late trading and portfolio transaction costs (including com- of investment companies (referred to in market timing. missions, market impact, spread, and oppor- paragraph (2) as a ‘soft dollar arrangement’). Sec. 406. Study of arbitration claims. tunity costs, fees charged under a plan ‘‘(2) FIDUCIARY DUTY OF BOARD OF DIREC- TITLE V—PROMOTING SHAREHOLDER adopted pursuant to rule 12b–1 of the rules of TORS.—The board of directors of a registered LITERACY the Securities and Exchange Commission (17 investment company shall have a fiduciary C.F.R. 270.12b–1), and other distribution ex- duty— Sec. 501. Financial literacy among mutual penses, directors’ fees, and registration fees. ‘‘(A) to review the investment adviser’s di- fund investors study. (B) MANNER THAT FACILITATES COMPARISON rection of the company’s brokerage trans- TITLE I—ENHANCING COST, FEE, AND AMONG INVESTMENT COMPANIES.— actions, including directed brokerage ar- OTHER DISCLOSURES TO SHAREHOLDERS (i) IN GENERAL.—Not later than 180 days rangements and soft dollar arrangements, SEC. 101. IMPROVED TRANSPARENCY OF MUTUAL after the date of enactment of this Act, the and that the direction of such brokerage ad- FUND COSTS. Securities and Exchange Commission shall heres to the Fund’s stated policies and is in (a) REGULATION REVISION REQUIRED.— issue rules or regulations defining ‘‘manner the best interests of the shareholders of the (1) IN GENERAL.—Not later than 180 days that facilitates comparison amount invest- company; and after the date of enactment of this Act, the ment companies’’ for purposes of paragraph ‘‘(B) to review any revenue sharing ar- Securities and Exchange Commission shall (1)(D). Such definition shall include defini- rangements to ensure compliance with this revise regulations under the Securities Act tions of functional categories of fees, costs, Act and the rules adopted thereunder, and of 1933, the Securities Exchange Act of 1934, expenses, taxes, and other payments dis- that such revenue sharing arrangements ad- or the Investment Company Act of 1940, or closed under paragraph (1)(D) that shall not heres to the Fund’s stated policies and are in any combination thereof, to require, con- be based on the contract under which or with the best interests of the shareholders of the sistent with the protection of investors and whom the services are provided, and shall in- company. the public interest, improved disclosure with stead be based on the nature of the services ‘‘(3) SUMMARIES OF REPORTS IN ANNUAL RE- respect to an open-end management invest- provided. PORTS TO SHAREHOLDERS.—In accordance

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with regulations prescribed by the Commis- ‘‘(C) LIMITATION.—The disclosures required (2) CHAIRMAN; FINANCIAL EXPERT; INDE- sion under paragraph (4), annual reports to under subparagraph (A) may not be made ex- PENDENT COMMITTEE.—Section 10 of the In- shareholders of a registered investment com- clusively in— vestment Company Act of 1940 (15 U.S.C. 80a– pany shall include a summary of the most ‘‘(i) a registration statement or prospectus 10) is amended by adding at the end the fol- recent report submitted to the board of di- of an open-end company; or lowing: rectors under paragraph (1). ‘‘(ii) any other filing of an open-end com- ‘‘(i) CHAIRMAN.—No registered investment ‘‘(4) REGULATIONS.—The Commission shall pany with the Commission. company shall have as chairman of its board adopt rules and regulations implementing ‘‘(D) COMMISSION AUTHORITY.—Not later of directors an interested person of such reg- this section, which rules and regulations than 1 year after the date of enactment of istered company. shall, among other things, prescribe the con- the Mutual Fund Investor Confidence Res- ‘‘(j) INDEPENDENT COMMITTEE.— tent of the required reports. toration Act of 2003, the Commission shall, ‘‘(1) IN GENERAL.—The members of the ‘‘(5) DEFINITION.—For purposes of this sub- by rule, establish, to the extent practicable, board of directors of a registered investment section— standards for the disclosures required under company who are not interested persons of ‘‘(A) the term ‘brokerage and research subparagraph (A). such registered investment company shall services’ has the same meaning as in section ‘‘(E) DEFINITION OF OPEN-END COMPANY.—In establish a committee comprised solely of 28(e)(3) of the Securities Exchange Act of this paragraph, the term ‘open-end company’ such members, which committee shall be re- 1934; and has the same meaning as in section 5 of the sponsible for— ‘‘(B) the term ‘research services’ means the Investment Company Act of 1940 (15 U.S.C. ‘‘(A) selecting persons to be nominated for services described in subparagraphs (A) and 80a–5). election to the board of directors; and (B) of such section.’’. ‘‘(F) DEFINITIONS OF DIFFERENTIAL COM- ‘‘(B) adopting qualification standards for PENSATION AND MUNICIPAL FUND SECURITY.— SEC. 103. DEFINITION OF NO-LOAD MUTUAL the nomination of directors. FUND. ‘‘(i) DIFFERENTIAL COMPENSATION.—In this ‘‘(2) DISCLOSURE.—The standards developed paragraph, an associated person of a broker under paragraph (1)(B) shall be disclosed in Not later than 180 days after the date of or dealer shall be considered to receive dif- the registration statement of the registered enactment of this Act, the Securities and ferential compensation if such person re- investment company. Exchange Commission shall, by rule adopted ceives any increased or additional remunera- ‘‘(k) FINANCIAL EXPERT.— by the Commission or a self-regulatory orga- tion, in whatever form— ‘‘(1) IN GENERAL.—Each registered invest- nization (or both)— ‘‘(I) for sales of the securities of an invest- ment company shall have as a member of its (1) clarify the definition of ‘‘no-load’’ as ment company or municipal fund security board of directors not less than 1 member such term is used by investment companies that is affiliated with, or otherwise specifi- who is a financial expert, as such term is de- that impose any fee under a plan adopted cally designated by, such broker or dealer or fined by the Commission. pursuant to rule 12b–1 of the rules of the Se- municipal securities broker or dealer, as ‘‘(2) RULES DEFINING FINANCIAL EXPERT.—In curities and Exchange Commission (17 C.F.R. compared with the remuneration for sales of defining the term ‘financial expert’ for pur- 270.12b–1); and securities of an investment company or mu- poses of paragraph (1), the Commission shall (2) require disclosure to prevent investors nicipal fund security offered by such broker consider whether a person has, through edu- from being misled by the use of such termi- or dealer or municipal securities broker or cation and experience as a public accountant nology by the company or its adviser or prin- dealer that are not so affiliated or des- or auditor or principal financial officer, cipal underwriter. ignated; or comptroller, or principal accounting officer SEC. 104. DISCLOSURE OF INCENTIVE COM- ‘‘(II) for the sale of any class of securities of a registered investment company, or from PENSATION AND MUTUAL FUND of an investment company or municipal fund a position involving the performance of simi- SALES. security as compared with the remuneration lar functions— (a) IN GENERAL.—Section 15(b) of the Secu- for the sale of a class of securities of such in- ‘‘(A) an understanding of generally accept- rities Exchange Act of 1934 (15 U.S.C. 78o(b)) vestment company or municipal fund secu- ed accounting principles and financial state- is amended by adding at the end the fol- rity (offered by such broker or dealer or mu- ments; and lowing: nicipal securities broker or dealer) that ‘‘(B) experience in the preparation or au- ‘‘(11) CONFIRMATION OF TRANSACTIONS FOR charges a sales load (as defined in section diting of financial statements of general MUTUAL FUNDS.— 2(a)(35) of the Investment Company Act of comparable registered investment compa- ‘‘(A) IN GENERAL.—Each broker shall dis- 1940 (15 U.S.C. 80a–2(a)(35)) only at the time nies. close in writing to customers that purchase of such a sale. ‘‘(3) DEADLINE FOR RULEMAKING.—Not later the shares of an open-end company reg- ‘‘(ii) MUNICIPAL FUND SECURITY.—In this than 180 days after the date of enactment of istered under section 8 of the Investment paragraph, a municipal fund security is any the Mutual Fund Investor Confidence Res- Company Act of 1940 (15 U.S.C. 80a–8)— municipal security issued by an issuer that, toration Act of 2003, the Commission shall ‘‘(i) the amount of any compensation re- but for the application of section 2(b) of the issue rules under paragraph (2).’’. ceived or to be received by the broker in con- Investment Company Act of 1940 (15 U.S.C. (c) DEFINITION OF INTERESTED PERSON.— nection with such transaction from any 80a–2(b)), would constitute an investment Section 2(a)(19) of the Investment Company sources, including— company within the meaning of section 3 of Act of 1940 (15 U.S.C. 80a–2(a)(19)) is amend- ‘‘(I) the amount and source of sales fees, the Investment Company Act of 1940 (15 ed— payments by persons other than the invest- U.S.C. 80a–3).’’. (1) in subparagraph (A)— ment company that are intended to facili- TITLE II—MUTUAL FUND GOVERNANCE (A) in clause (iv), by striking ‘‘two’’ and in- tate the sale and distribution of the securi- serting ‘‘5’’; and ties, and commissions for effecting portfolio SEC. 201. INDEPENDENT MUTUAL FUND BOARDS. (B) by striking clause (vii) and inserting securities transactions, or other payments, (a) DIRECTOR INDEPENDENCE.— the following: paid to such broker or dealer, or municipal (1) IN GENERAL.—Section 10(a) of the In- ‘‘(vii) any natural person who has served as securities broker or dealer, or associated vestment Company Act of 1940 (15 U.S.C. 80a– an officer or director, or as an employee person thereof in connection with such sale; 10(a)) is amended— within the preceding 10 fiscal years, of an in- ‘‘(II) any commission or other fees or (A) by striking ‘‘more than 60 per centum’’ vestment adviser or principal underwriter to charges the investor has paid or will or and inserting ‘‘more than 25 percent’’; and such registered investment company, or of might be subject to, including as a result of (B) by striking the period at the end and any entity controlling, controlled by, or purchases or redemptions; inserting ‘‘, and such company shall not have under common control with such investment ‘‘(III) any conflicts of interest that any as- as a member of its board of directors any adviser or principal underwriter; sociated person of the broker, dealer, or mu- person— ‘‘(viii) any natural person who has served nicipal securities broker or dealer of the in- ‘‘(1) who has served without being approved as an officer or director, or as an employee vestor may face due to the receipt of dif- or elected by the shareholders of such reg- within the preceding 10 fiscal years, of any ferential compensation in connection with istered investment company at least once entity that has within the preceding 5 fiscal such sale; and every 5 years; and years acted as a significant service provider ‘‘(IV) information about the estimated ‘‘(2) unless such director is an interested to such registered investment company, or of amount of any asset-based distribution ex- person or has been found, on an annual basis, any entity controlling, controlled by, or penses incurred, or to be incurred, by the in- by a majority of the directors who are not under the common control with such service vestment company in connection with the interested persons, after reasonable inquiry provider; or purchase of securities by the investor; and by such directors, not to have any material ‘‘(ix) any natural person who is a member ‘‘(ii) such other information as the Com- business or familial relationship with the of a class of persons that the Commission, by mission determines appropriate. registered investment company, a signifi- rule or regulation, determines is unlikely to ‘‘(B) TIMING OF DISCLOSURE.—The disclo- cant service provider to the company, or any exercise an appropriate degree of independ- sure required under subparagraph (A) shall entity controlling, controlled by, or under ence as a result of— be made to a customer not later than as of common control with such service provider, ‘‘(I) a material business relationship with the date of the completion of the trans- that is likely to impair the independence of the investment company or an affiliated per- action. the director.’’. son of such investment company;

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00138 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16019 ‘‘(II) a close familial relationship with any subsection and any rule or regulation of the of this subsection, the term ‘issuer’ shall not natural person who is an affiliated person of Commission issued thereunder. include any investment company that is reg- such investment company; or ‘‘(2) RESPONSIBILITY RELATING TO INDE- istered under section 8 of the Investment ‘‘(III) any other reason determined by the PENDENT PUBLIC ACCOUNTANTS.—The audit Company Act of 1940.’’. Commission.’’; and committee of the registered company, in its (c) IMPLEMENTATION.— (2) in subparagraph (B)— capacity as a committee of the board of di- (1) IN GENERAL.—Not later than 180 days (A) in clause (iv), by striking ‘‘two’’ and in- rectors, shall be directly responsible for the after the date of enactment of this Act, the serting ‘‘5’’; and appointment, compensation, and oversight of Securities and Exchange Commission shall (B) by striking clause (vii) and inserting the work of any independent public account- issue final regulations to carry out section the following: ant employed by such registered company 32(d) of the Investment Company Act of 1940, ‘‘(vii) any natural person who is a member (including resolution of disagreements be- as added by subsection (a) of this section. of a class of persons that the Commission, by tween management and the auditor regard- (2) INCENTIVES.—Not later than 180 days rule or regulation, determines is unlikely to ing financial reporting) for the purpose of after the date of enactment of this Act, the exercise an appropriate degree of independ- preparing or issuing the audit report or re- Securities and Exchange Commission shall, ence as a result of— lated work, and each such independent pub- by rule, establish— ‘‘(I) a material business relationship with lic accountant shall report directly to the (A) a program of incentives to encourage such investment adviser or principal under- audit committee. the filing of meritorious complaints under writer or affiliated person of such invest- ‘‘(3) INDEPENDENCE.— section 32(d)(4)(A) of the Investment Com- ment adviser or principal underwriter; ‘‘(A) IN GENERAL.—Each member of the pany Act of 1940; and ‘‘(II) a close familial relationship with any audit committee of the registered company (B) appropriate penalties for the willful fil- natural person who is an affiliated person of shall be a member of the board of directors ing of materially false complaints under of the company, and shall otherwise be inde- such investment adviser or principal under- such section. writer; or pendent. ‘‘(III) any other reason as determined by ‘‘(B) CRITERIA.—In order to be considered SEC. 203. INFORMING DIRECTORS OF SIGNIFI- the Commission.’’. to be independent for purposes of this para- CANT DEFICIENCIES. (d) DEFINITION OF SIGNIFICANT SERVICE graph, a member of an audit committee of a Section 42 of the Investment Company Act PROVIDER.—Section 2(a) of the Investment registered company may not, other than in of 1940 (15 U.S.C. 80a–41) is amended by add- Company Act of 1940 (15 U.S.C. 80a-2(a)) is his or her capacity as a member of the audit ing at the end the following: amended by adding at the end the following: committee, the board of directors, or any ‘‘(f) INFORMING DIRECTORS OF SIGNIFICANT ‘‘(53) SIGNIFICANT SERVICE PROVIDER.— other board committee— DEFICIENCIES.— ‘‘(A) IN GENERAL.—Not later than 180 days ‘‘(i) accept any consulting, advisory, or ‘‘(1) IN GENERAL.—If the report of an in- after the date of enactment of the Mutual other compensatory fee from the registered spection by the Commission of a registered Fund Investor Confidence Restoration Act of company or the investment adviser or prin- investment company identifies significant 2003, the Securities and Exchange Commis- cipal underwriter of the registered company; deficiencies in the operations of such com- sion shall issue final rules defining the term or pany, or of its investment adviser or prin- ‘significant service provider’. ‘‘(ii) be an ‘interested person’ of the reg- cipal underwriter, the company shall provide ‘‘(B) REQUIREMENTS.—The definition devel- istered company, as such term is defined in such report to the directors of such com- oped under paragraph (1) shall include, at a section 2(a)(19). pany. minimum, the investment adviser and prin- ‘‘(4) COMPLAINTS.—The audit committee of ‘‘(2) DISCLOSURE OF DEFICIENCIES.—The cipal underwriter of a registered investment the registered company shall establish pro- Commission shall, on an annual basis, review company for purposes of paragraph (19).’’. cedures for— all inspection reports of registered invest- SEC. 202. AUDIT COMMITTEE REQUIREMENTS ‘‘(A) the receipt, retention, and treatment ment companies and publicly disclose the 10 FOR INVESTMENT COMPANIES. of complaints received by the registered most common deficiencies cited in those re- (a) AMENDMENTS.—Section 32 of the Invest- company regarding accounting, internal ac- ports.’’. ment Company Act of 1940 (15 U.S.C. 80a–31) counting controls, or auditing matters; and is amended— ‘‘(B) the confidential, anonymous submis- SEC. 204. CERTIFICATION BY CHAIRMAN AND (1) in subsection (a)— sion by employees of the registered company CHIEF COMPLIANCE OFFICER. (A) by striking paragraphs (1) and (2) and and its investment adviser or principal un- (a) IN GENERAL.—Subsection (j) of section inserting the following: derwriter of concerns regarding questionable 17 of the Investment Company Act of 1940 (15 ‘‘(1) such accountant shall have been se- accounting or auditing matters. U.S.C. 80a–17(j)), as amended by section 301 of lected at a meeting held within 30 days be- ‘‘(5) AUTHORITY TO ENGAGE ADVISERS.—The this Act, is amended by adding at the end fore or after the beginning of the fiscal year audit committee of the registered company the following: or before the annual meeting of stockholders shall have the authority to engage inde- ‘‘(4) CERTIFICATION BY CHAIRMAN.—The in that year by the vote, cast in person, of a pendent counsel and other advisers, as it de- rules and regulations established under para- majority of the members of the audit com- termines necessary to carry out its duties. graph (1) shall require the chairman of the mittee of such registered company; ‘‘(6) FUNDING.—The registered company board of directors of each registered open- ‘‘(2) such selection shall have been sub- shall provide appropriate funding, as deter- end investment company to certify, in the mitted for ratification or rejection at the mined by the audit committee, in its capac- periodic report to shareholders, or other ap- next succeeding annual meeting of stock- ity as a committee of the board of directors, propriate disclosure document, that— holders if such meeting be held, except that for payment of compensation— ‘‘(A) procedures are in place for verifying any vacancy occurring between annual meet- ‘‘(A) to the independent public accountant that the determination of current net asset ings, due to the death or resignation of the employed by the registered company for the value of any redeemable security issued by accountant, may be filled by the vote of a purpose of rendering or issuing the audit re- the company used in computing periodically majority of the members of the audit com- port; and the current price for the purpose of purchase, mittee of such registered company, cast in ‘‘(B) to any advisers employed by the audit redemption, and sale complies with the re- person at a meeting called for the purpose of committee under paragraph (5). quirements of the Investment Company Act voting on such action;’’; and ‘‘(7) AUDIT COMMITTEE.—For purposes of of 1940 and the rules and regulations there- (B) by adding at the end the following new this subsection, the term ‘audit committee’ under, and the company is in compliance sentence: ‘‘The Commission, by rule, regula- means— with such procedures; tion, or order, may exempt a registered man- ‘‘(A) a committee (or equivalent body) es- ‘‘(B) procedures are in place for the over- agement company or registered face-amount tablished by and among the board of direc- sight of the flow of funds into and out of the certificate company subject to this sub- tors of a registered investment company for securities of the company, and the company section from the requirement in paragraph the purpose of overseeing the accounting and is in compliance with such procedures; (1) that the votes by the members of the financial reporting processes of the company ‘‘(C) procedures are in place to ensure that audit committee be cast at a meeting in per- and audits of the financial statements of the investors are receiving any applicable dis- son when such a requirement is impracti- company; and counts on front-end sales loads that are dis- cable, subject to such conditions as the Com- ‘‘(B) if no such committee exists with re- closed in the company’s prospectus; mission may require.’’; and spect to a registered investment company, ‘‘(D) procedures are in place to ensure that, (2) by adding at the end the following: the entire board of directors of the com- if the company’s shares are offered as dif- ‘‘(d) AUDIT COMMITTEE REQUIREMENTS.— pany.’’. ferent classes of shares, such classes are de- ‘‘(1) REQUIREMENTS AS PREREQUISITE TO FIL- (b) CONFORMING AMENDMENT.—Section signed in the interests of investors, and ING FINANCIAL STATEMENTS.—Any registered 10A(m) (15 U.S.C. 78j–1(m)) of the Securities could reasonably be an appropriate invest- management company or registered face- Exchange Act of 1934 is amended by adding ment option for an investor; amount certificate company that files with at the end the following: ‘‘(E) procedures are in place to ensure that the Commission any financial statement ‘‘(7) EXEMPTION FOR INVESTMENT COMPA- information about the company’s portfolio signed or certified by an independent public NIES.—Effective 1 year after the date of en- securities is not disclosed in violation of the accountant shall comply with the require- actment of the Mutual Fund Investor Con- securities laws or the company’s code of eth- ments of paragraphs (2) through (6) of this fidence Restoration Act of 2003, for purposes ics;

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00139 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16020 CONGRESSIONAL RECORD — SENATE November 25, 2003 ‘‘(F) the members of the board of directors principal underwriters for, such investment is further amended by adding at the end the who are not interested persons of the com- companies establishing such standards as are following: pany have reviewed and approved the com- reasonably necessary to prevent such acts, ‘‘(h) BAN ON JOINT MANAGEMENT OF MUTUAL pensation of the company’s portfolio man- practices, or courses of business. Such rules FUNDS AND HEDGE FUNDS.— ager in connection with their consideration and regulations shall require each such reg- ‘‘(1) PROHIBITION OF JOINT MANAGEMENT.—It of the investment advisory contract under istered investment company to disclose such shall be unlawful for any individual to serve section 15(c); codes of ethics (and any changes therein) in or act as the portfolio manager or invest- ‘‘(G) the company has established and en- the periodic report to shareholders of such ment adviser of a registered open-end invest- forces a code of ethics as required by para- company, and to disclose such code of ethics ment company if such individual also serves graph (2) of this subsection; and any waivers and material violations or acts as the portfolio manager or invest- ‘‘(H) the company is in compliance with thereof on a readily accessible electronic ment adviser of an investment company that the additional requirements of paragraph (3) public information facility of such company is not registered, or of such other categories of this subsection; and in such additional form and manner as of companies as the Commission shall pre- ‘‘(I) the report submitted to the board of the Commission shall require by rule or reg- scribe by rule in order to prohibit conflicts directors under section 15(g)(1) is complete ulation. of interest, such as conflicts in the selection and accurate; and ‘‘(3) ADDITIONAL COMPLIANCE PROCEDURES.— of the portfolio securities. ‘‘(J) the board of directors has fulfilled its The rules and regulations established under ‘‘(2) EXCEPTIONS.—Notwithstanding para- obligations under section 15(g)(2).’’ paragraph (1) shall— graph (1), the Commission may, by rule, reg- ‘‘(5) CERTIFICATION BY CHIEF COMPLIANCE ‘‘(A) require each investment company and ulation, or order, permit joint management OFFICER.—The rules and regulations estab- investment adviser registered with the Com- by a portfolio manager in exceptional cir- lished under paragraph (1) shall require the mission to adopt and implement policies and cumstances when necessary to protect the chief compliance officer of each registered procedures reasonably designed to prevent interest of investors, provided that such open-end investment company to certify, on violation of the Securities Act of 1933 (15 rule, regulation, or order requires— an annual basis, that— U.S.C. 78a et seq.), the Securities Exchange ‘‘(A) enhanced disclosure by the registered ‘‘(A) appropriate internal controls are in Act of 1934 (15 U.S.C. 78a et seq.), the Sar- open-end investment company to investors place for the review required under subpara- banes-Oxley Act of 2002 (15 U.S.C. 7201 et of any conflicts of interest raised by such graphs (A) through (H) of paragraph (4); and seq.), the Trust Indenture Act of 1939 (15 joint management; and ‘‘(B) such internal controls have been re- U.S.C. 77aaa et seq.), the Investment Com- ‘‘(B) fair and equitable policies and proce- viewed, and determined to reasonably pany Act of 1940 (15 U.S.C. 80a–1 et seq.), the dures for the allocation of securities to the achieve their stated purpose, by the chief Investment Advisers Act of 1940 (15 U.S.C. portfolios of the jointly managed companies, compliance officer. 80b et seq.), the Securities Investor Protec- and certification by the members of the ‘‘(6) REVIEW OF ADVISORY CONTRACTS.—The tion Act of 1970 (15 U.S.C. 78aaa et seq.), sub- board of directors who are not interested rules and regulations established under para- chapter II of chapter 53 of title 31, United persons of such registered open-end invest- graph (1) shall require that the chairman of States Code, chapter 2 of title I of Public ment company, in the periodic report to the board of directors and the chief compli- Law 91–508 (12 U.S.C. 1951 et seq.), or section shareholders, or other appropriate disclosure ance officer of a registered open-end invest- 21 of the Federal Deposit Insurance Act (12 document, that such policies and procedures ment company certify, on an annual basis, U.S.C. 1829b); of such company are fair and equitable. that any advisory contract entered into by ‘‘(B) require each such company and ad- ‘‘(3) DEFINITION.—For purposes of this sub- the company and associated management viser to review such policies and procedures section, the term ‘portfolio manager’ means fees have been negotiated and are in the best annually for their adequacy and the effec- the individual or individuals who are des- interests of the company.’’. tiveness of their implementation; ignated as responsible for decision-making in (b) DEADLINE FOR RULES.—Not later than 90 ‘‘(C) require each such company to appoint connection with the securities purchased and days after the date of enactment of this Act, a chief compliance officer to be responsible sold on behalf of a registered open-end in- the Securities and Exchange Commission for overseeing such policies and procedures, vestment company, but shall not include in- shall prescribe— ensuring that the practices of the company dividuals who participate only in making re- (1) rules to implement subsection (a); and adhere to those policies and procedures, and search recommendations or executing trans- (2) minimum standards for compliance promote the interest of shareholders— actions on behalf of such company.’’. with the certification requirements of para- ‘‘(i) whose compensation shall be approved (b) DEADLINE FOR RULES.—The Securities graphs (4) and (5) of section 17(j) of the In- by the members of the board of directors of and Exchange Commission shall prescribe vestment Company Act of 1940 (15 U.S.C. 80a- the company who are not interested persons rules to implement the amendment made by 17(j)). of such company; subsection (a) of this section within 90 days after the date of enactment of this Act. TITLE III—PREVENTING ABUSIVE ‘‘(ii) who shall report directly to the mem- MUTUAL FUND PRACTICES bers of the board of directors of the company SEC. 303. RESTRICTIONS ON SHORT TERM TRAD- who are not interested persons of such com- ING AND MANDATORY REDEMPTION SEC. 301. PREVENTION OF FRAUD; INTERNAL pany, privately as such members request, FEES. COMPLIANCE AND CONTROL PROCE- (a) SHORT TERM TRADING PROHIBITED.—Sec- but no less frequently than annually; and DURES. tion 17 of the Investment Company Act of ‘‘(iii) whose report to such members shall (a) AMENDMENT.—Subsection (j) of section 1940 (15 U.S.C. 80a–17) is amended by adding include any violations or waivers of, and any 17 of the Investment Company Act of 1940 (15 at the end the following: other significant issues arising under, such U.S.C. 80a–17(j)) is amended to read as fol- ‘‘(k) SHORT TERM TRADING PROHIBITED.—It policies and procedures; and lows: shall be unlawful for any officer, director, ‘‘(D) require each such company to estab- ‘‘(j) DETECTION AND PREVENTION OF partner, or employee of a registered invest- lish policies and procedures reasonably de- FRAUD.— ment company, any affiliated person, invest- signed to protect any officer, director, em- ‘‘(1) COMMISSION RULES TO PROHIBIT FRAUD, ment adviser, or principal underwriter of ployee, contractor, subcontractor, or agent DECEPTION, AND MANIPULATION.—It shall be such company, or any officer, director, part- of such company from retaliation, including unlawful for any affiliated person of or prin- ner, or employee of such an affiliated person, discharge, demotion, suspension, harass- cipal underwriter for a registered investment investment adviser, or principal underwriter, ment, or any other manner of discrimination company or any affiliated person of an in- to engage in short-term transactions, as in the terms and conditions of employment, vestment adviser of or principal underwriter such term is defined by the Commission by because of any lawful act done by such offi- for a registered investment company, to en- rule, in any securities of which such com- cer, director, employee, contractor, subcon- gage in any act, practice, or course of busi- pany, or any affiliate of such company, is the tractor, or agent to provide information, ness in connection with the purchase or sale, issuer, except that this subsection shall not cause information to be provided, or other- directly or indirectly, by such person of any prohibit transactions in money market wise assist in an investigation that relates security held or to be acquired by such reg- funds, other funds the investment policy of to any conduct which such officer, director, istered investment company, or any security which expressly permits short-term trans- employee, contractor, subcontractor, or issued by such registered investment com- actions, or such other categories of reg- agent reasonably believes constitutes a vio- pany or by an affiliated registered invest- istered investment companies as the Com- lation of the securities laws or the code of ment company, in contravention of such mission shall specify by rule.’’. rules and regulations as the Commission ethics of such investment company.’’. (b) MANDATORY REDEMPTION FEES.—Not may adopt to define, and prescribe means (b) DEADLINE FOR RULES.—Not later than 90 later than 180 days after the date of enact- reasonably necessary to prevent, such acts, days after the date of enactment of this Act, ment of this Act, the Securities and Ex- practices, or courses of business as are fraud- the Securities and Exchange Commission change Commission shall, by rule, require ulent, deceptive, or manipulative. shall prescribe rules to implement sub- that any investment company that does not ‘‘(2) CODES OF ETHICS.—The rules and regu- section (a). allow for market timing practices to charge lations established under paragraph (1) shall SEC. 302. BAN ON JOINT MANAGEMENT OF MU- a redemption fee upon the short-term re- include requirements for the adoption of TUAL FUNDS AND HEDGE FUNDS. demption of any securities of such company. codes of ethics by registered investment (a) AMENDMENT.—Section 15 of the Invest- (c) DEADLINE FOR RULES.—Not later than companies and investment advisers of, and ment Company Act of 1940 (15 U.S.C. 80a–15) 180 days after the date of enactment of this

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00140 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16021 Act, the Securities and Exchange Commis- change Commission shall issue rules to pre- SEC. 402. STUDY OF COORDINATION OF EN- sion shall prescribe rules to implement the vent transactions in the securities of any FORCEMENT EFFORTS. amendment made by subsection (a) of this registered open-end investment company in (a) IN GENERAL.—The General Accounting section. violation of section 22 of the Investment Office shall conduct a study of the coordina- SEC. 304. ELIMINATION OF STALE PRICES. Company Act of 1940 (15 U.S.C. 80a–22), in- tion of enforcement efforts related to allega- tions of misconduct by open-end manage- (a) IN GENERAL.—Not later than 180 days cluding after-hours trades that are executed ment companies between the headquarters of after the date of enactment of this Act, the at a price based on a net asset value that was the Securities and Exchange Commission, Securities and Exchange Commission shall determined as of a time prior to the actual the regional offices of the Commission, and prescribe, by rule or regulation, standards execution of the transaction. appropriate State regulatory and law en- (b) TRADES COLLECTED BY INTER- concerning the obligation of registered open- forcement entities, such as State attorney MEDIARIES.— end investment companies under the Invest- generals and the North American Securities ment Company Act of 1940 to apply and use (1) IN GENERAL.—The rules established Administrators Association. fair value methods of determination of net under subsection (a) shall permit execution (b) REPORT.—Not later than 1 year after asset value when market quotations are un- of after-hours trades that are provided to the the date of enactment of this Act, the Gen- available or do not accurately reflect the registered open-end investment company by eral Accounting Office shall submit a report fair market value of the companies’ portfolio a broker-dealer, retirement plan adminis- on the study required under subsection (a) to securities, in order to prevent dilution of the trator, insurance company, or other inter- Congress. interests of long-term investors or as nec- mediary, after the time as of which such net SEC. 403. REVIEW OF COMMISSION RESOURCES. essary in the other interests of investors. asset value was determined, if the late trad- (a) IN GENERAL.—The Securities and Ex- Such rule or regulation shall identify, in ad- ing and detection procedures and policies of change Commission shall conduct a study on dition to significant events, the conditions such intermediary are subject to inspection the allocation and adequacy of the super- or circumstances from which such obligation by the Commission (in this subsection, a vision and enforcement resources of the will arise, such as the need to value securi- ‘‘permitted intermediary’’). Commission dedicated to the oversight of ties traded on foreign exchanges, and the (2) RULES.—The Commission, by rule, open-end management companies. methods by which fair value methods shall shall— (b) REPORT.—Not later than 1 year after be applied in such events, conditions, and (A) require each permitted intermediary to the date of enactment of this Act, the Secu- circumstances. certify that it has policies and procedures in rities and Exchange Commission shall sub- (b) FORMAL POLICIES AND PROCEDURES.— place to prevent and detect late-trades, and mit a report on the study required under (1) IN GENERAL.—Not later than 180 days that such policies have been adhered too by subsection (a) to— after the date of enactment of this Act, the the permitted intermediary; (1) the Committee on Banking, Housing, Securities and Exchange Commission shall, (B) require each permitted intermediary to and Urban Affairs of the Senate; and by rule or regulation— submit an independent annual audit (2) the Committee on Financial Services of (A) require that each registered open-end verifying that its policies and procedures do the House of Representatives. investment company and registered invest- not permit the acceptance of late order trad- SEC. 404. COMMISSION STUDY AND REPORT REG- ment advisor establish formal policies with ing; and ULATING SOFT DOLLAR ARRANGE- respect to compliance with the regulations (C) provide that any intermediary that is MENTS. established under subsection (a); not a permitted intermediary shall be re- (a) STUDY REQUIRED.— (B) require such policies to be publicly dis- quired to submit all transactions to the (1) IN GENERAL.—The Commission shall closed to shareholders; open-end investment company before the de- conduct a study of the use of soft dollar ar- (C) require the adoption of internal proce- termination of the related net asset value. rangements by investment advisers as con- dures to ensure compliance with such poli- templated by section 28(e) of the Securities SEC. 307. DISCLOSURE OF INSIDER TRANS- Exchange Act of 1934 (15 U.S.C. 78bb(e)). cies; ACTIONS. (2) AREAS OF CONSIDERATION.—The study (D) require that such policies be subject to Not later than 180 days after the date of ongoing review by the company or invest- required by this section shall examine— enactment of this Act, the Securities and (A) the trends in the average amounts of ment adviser; and Exchange Commission shall, by rule, re- (E) require, on an annual basis, a certifi- soft dollar commissions paid by investment quire— advisers and investment companies in the cation by the chief executive officer of the (1) that any senior executive officer of an past 3 years; company or investment adviser that such open-end management investment company (B) the types of services provided through policies are being adhered to. publicly disclose, prior to the actual time of soft dollar arrangements; (2) CHANGES TO POLICIES.—Any policies purchase, any intended sale or purchase of (C) the benefits and disadvantages of the adopted by a registered open-end company or securities of an open-end management in- use of soft dollars for investors, including registered investment adviser under para- vestment company that employs the same the extent to which use of soft dollar ar- graph (1) shall not be altered without the investment adviser as the company with rangements affects the ability of mutual prior approval of a majority of the share- whom such senior executive officer is em- fund investors to evaluate and compare the holders of such company or adviser. ployed; and expenses of different mutual funds; SEC. 305. FORMAL POLICIES AND PROCEDURES (2) that any such securities purchased be (D) the potential or actual conflicts of in- RELATED TO MARKET TIMING. held by the senior executive officer for not terest (or both potential and actual con- (a) IN GENERAL.—Not later than 180 days less than 6 months. flicts) created by soft dollar arrangements, after the date of enactment of this Act, the including whether certain potential conflicts Securities and Exchange Commission shall, TITLE IV—STRENGTHENING MUTUAL FUND INDUSTRY OVERSIGHT are being managed effectively by other laws by rule— and regulations specifically addressing those (1) require that each registered open-end SEC. 401. STUDY OF MUTUAL FUND OVERSIGHT situations, the role of the board of directors BOARD. investment company and registered invest- in managing these potential or actual (or ment advisor establish formal policies with (a) IN GENERAL.—The General Accounting both) conflicts, and the effectiveness of the respect to whether it permits market timing Office shall conduct a study to determine the board in this capacity; and short term trading, and under what cir- feasibility of, and assess what, if any, bene- (E) the transparency of such soft dollar ar- cumstances such practices will be permitted; fits to shareholders, mutual fund governance rangements to investment company share- (2) require such policies to be publicly dis- and mutual fund supervision would result holders and investment advisory clients of closed in any prospectus delivered by the from establishing a Mutual Fund Oversight investment advisers, the extent to which en- company or investment advisor; Board that would— hanced disclosure is necessary or appropriate (3) require the adoption of internal proce- (1) have inspection, examination, and en- to enable investors to better understand the dures reasonably designed to ensure compli- forcement authority over mutual fund impact of these arrangements, and an assess- ance with such policies; boards of directors; ment of whether the cost of any enhanced (4) require that such policies be subject to (2) be funded by assessments against mu- disclosure or other regulatory change would ongoing review by the company or invest- tual fund assets or management fees; result in benefits to the investor; and ment advisor; and (3) have members selected by Commission; (F) whether such section 28(e) should be (5) require, on an annual basis, a certifi- and modified, and whether other regulatory or cation by the chief executive officer of the (4) have rulemaking authority. legislative changes should be considered and investment adviser, and chairman of the (b) REPORT.—Not later than 1 year after adopted to benefit investors. board of directors and chief compliance offi- the date of enactment of this Act, the Gen- (b) REPORT REQUIRED.—Not later than 1 cer of the company that such policies are eral Accounting Office shall submit a report year after the date of enactment of this Act, being adhered too by the investment adviser on the study required under paragraph (1) the Commission shall submit a report on the or the company. to— study required by subsection (a) to the Com- SEC. 306. PREVENTION OF LATE TRADES. (1) the Committee on Banking, Housing, mittee on Financial Services of the House of (a) ADDITIONAL RULES REQUIRED.—Not and Urban Affairs of the Senate; and Representatives and the Committee on later than 180 days after the date of enact- (2) the Committee on Financial Services of Banking, Housing, and Urban Affairs of the ment of this Act, the Securities and Ex- the House of Representatives. Senate.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00141 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16022 CONGRESSIONAL RECORD — SENATE November 25, 2003 SEC. 405. REPORT ON ADEQUACY OF REGU- (1) the Committee on Banking, Housing, Medicare bill—but it is an important LATORY RESPONSE TO LATE TRAD- and Urban Affairs of the Senate; and step. ING AND MARKET TIMING. (2) the Committee on Financial Services of This summer, the Senate passed a (a) REPORT REQUIRED.—Not later than 180 the House of Representatives. days after the date enactment of this Act, prescription drug bill. It was not per- the Securities and Exchange Commission fect. But it was a start at providing the shall submit a report to the Committee on By Mrs. BOXER: most necessary reform Medicare Financial Services of the House of Rep- S. 1972. A bill to amend the Internal needs—covering prescription drugs for resentatives and the Committee on Banking, Revenue Code of 1986 to provide for a the program’s 41 million beneficiaries. Housing, and Urban Affairs of the Senate on tax credit for small employer-based And I reluctantly supported it. market timing and late trading of mutual health insurance coverage in States in What came back from the Conference funds. which such coverage is mandated, and was no longer a bill to add a drug ben- (b) REQUIRED CONTENTS OF REPORT.—The for other purposes; to the Committee report required by this section shall include efit to Medicare. It was a vehicle for the following: on Finance. Republicans to harm Medicare under (1) The economic harm of market timing Mrs. BOXER. Mr. President, today, I the guise of ‘‘reforms.’’ and late trading of mutual fund shares on am introducing the ‘‘Small Business I am introducing a bill today to ad- long-term mutual fund shareholders. State Mandated Health Insurance As- dress some of the main weaknesses in (2) The findings by the Commission’s Office sistance Act.’’ the Conference bill. It will not be the of Compliance, Inspections and Examina- The legislation would provide a tax last of these bills introduced. And it tions, and the actions taken by the Commis- credit to small businesses in states does not repair all of the damage done sion’s Division of Enforcement, regarding— where the law mandates that they pro- (A) illegal late trading practices; to Medicare by the Conference bill. vide health insurance to their employ- The bill I introduce today is simply (B) illegal market timing practices; and ees. The credit would be for 50 percent (C) market timing practices that are not in an initial effort to carve out some of violation of prospectus disclosures. of the amount the employer spends the more egregious provisions of the (3) When the Commission became aware providing health insurance for his or Conference bill. It does not address the that the use of market timing practices was her employees. critical issues of the 2.7 million retir- harming long-term shareholders, and the cir- In California 6.4 million people are ees who will lose their good coverage or cumstances surrounding the Commission’s uninsured. That’s more than 18 percent the 6 million of the lowest-income sen- discovery of that activity. of the state. To deal with the issue, the iors who will be worse off than they are (4) The steps the Commission has taken state legislature recently passed a law now. It does not address the inad- since becoming aware of market timing mandating that employers provide practices to protect long-term mutual fund equacy of the drug benefit itself. We investors. their workers with health insurance. will come back to those issues in the (5) Any additional legislative or regulatory Many smaller businesses have told near future. action that is necessary to protect long-term me that they do not object to the law The Medicare Preservation and Drug mutual fund shareholders against the detri- itself, but that they will have a hard Price Fairness Act is a start toward mental effects of late trading and market time financially complying with the righting the wrongs done to Medicare timing practices. mandate—especially in these tough today. It repeals the language in the SEC. 406. STUDY OF ARBITRATION CLAIMS. economic times. Furthermore, there is Republican bill that prohibits Medicare (a) STUDY REQUIRED.—The Securities and concern that neighboring States with- from negotiating lower prices on behalf Exchange Commission shall conduct a study out such a mandate will recruit our of beneficiaries. It repeals the highly of the increased rate of arbitration claims and decisions involving mutual funds since small businesses entrepreneurs to move controversial ‘‘premium support’’ dem- 1995 for the purposes of identifying trends in to their states where they would not onstration projects that would force arbitration claim rates and, if applicable, have to provide insurance for their beneficiaries who do not want to join the causes of such increased rates and the workers. an HMO to pay higher premiums. It en- means to avert such causes. While businesses can currently de- sures that the guaranteed Medicare (b) REPORT.—Not later than 1 year after duct from federal taxes, as costs of fallback is triggered whenever there the date of enactment of this Act, the Secu- doing businesses, the costs of the are not two stand-alone drug plans rities and Exchange Commission shall sub- mit a report on the study required by sub- health insurance provided to their em- available in an area so that seniors are section (a) to the Committee on Financial ployees, this assistance is simply not not forced to join an HMO if the one Services of the House of Representatives and large enough to provide the help that that is available to them is priced too the Committee on Banking, Housing, and small businesses truly need. That is high. It repeals the $12 billion slush Urban Affairs of the Senate. why I am introducing this bill today. I fund giveaway to HMOs and the $6 bil- TITLE V—PROMOTING SHAREHOLDER encourage my colleagues to join me in lion tax shelters for the wealthy and LITERACY this effort. healthy. And, unlike the Republican SEC. 501. FINANCIAL LITERACY AMONG MUTUAL bill, it allows Americans to obtain US- FUND INVESTORS STUDY. By Mr. DASCHLE: made drugs at lower prices safely from (a) IN GENERAL.—The Securities and Ex- S. 1974. A bill to make improvements other industrialized countries. change Commission shall conduct a study to to the Medicare Prescriptions Drug, I noted earlier today when we voted identify— Improvement, and Modernization Act (1) the existing level of financial literacy on the Conference Report that there among investors that purchase shares of of 2003; to the Committee on Finance. were few, if any, seniors looking on ex- open-end companies, as such term is defined Mr. DASCHLE. Mr. President, by pectantly from the gallery. And in fact, under section 5 of the Investment Company adopting the Medicare Conference Re- we have heard from them in large num- Act of 1940, that are registered under section port today, the Senate has done great bers that they do not support the Con- 8 of such Act; harm to one of our most successful and ference bill. In contrast, the lobbies (2) the most useful and understandable rel- important social programs. As I have were full of well-tailored lobbyists— evant information that investors need to said over the past week, I believe that and the big drug companies and the make sound financial decisions prior to pur- this will not be the end of the issue. I HMOs are the ones celebrating the pas- chasing such shares; believe this is just the end of the first (3) methods to increase the transparency of sage of the Conference bill. The Repub- expenses and potential conflicts of interest chapter. licans got it backwards. The Medicare in transactions involving the shares of open- And I predict that the call from bene- Preservation and Drug Price Fairness end companies; ficiaries and future beneficiaries to re- Act is a first step toward the bill Con- (4) the existing private and public efforts pair this damage will be so loud that gress should have passed—a bill that to educate investors; and Congress will be compelled to act. We truly benefits America’s seniors. (5) a strategy to increase the financial lit- are hearing already from seniors in There being no objection, the bill was eracy of investors that results in a positive South Dakota and all across the coun- ordered to be printed in the RECORD, as change in investor behavior. try. For that reason, I am introducing (b) REPORT.—Not later than 1 year after follows: the date of enactment of this Act, the Secu- today the Medicare Preservation and S. 1974 rities and Exchange Commission shall sub- Drug Price Fairness Act. It is only a Be it enacted by the Senate and House of Rep- mit a report on the study required under first step in addressing some of the resentatives of the United States of America in subsection (a) to— many problems in the Republican Congress assembled,

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SECTION 1. SHORT TITLE. (7) in subsection (g)— ‘‘(1) MULTIPLE ELEMENTS.—For the purpose This Act may be cited as the ‘‘Medicare (A) by striking ‘‘counterfeit or’’; and of making it more difficult to counterfeit Preservation and Drug Price Fairness Act’’. (B) by striking ‘‘and the Secretary deter- the packaging of drugs subject to section SEC. 2. AUTHORITY TO NEGOTIATE PRICES. mines that the public is adequately pro- 503(b), manufacturers of the drugs shall in- Subsection (i) of section 1860D–11, as added tected from counterfeit and violative cov- corporate the technologies described in sub- by section 101 of the Medicare Prescription ered products being imported pursuant to section (b) into multiple elements of the Drug, Improvement, and Modernization Act subsection (a)’’; physical packaging of the drugs, including of 2003, is repealed. (8) in subsection (i)(1)— blister packs, shrink wrap, package labels, SEC. 3. REPEAL OF COMPARATIVE COST ADJUST- (A) by amending subparagraph (A) to read package seals, bottles, and boxes. MENT (CCA) PROGRAM. as follows: ‘‘(2) LABELING OF SHIPPING CONTAINER.— Subtitle E of title II of the Medicare Pre- ‘‘(A) IN GENERAL.—The Secretary shall con- Shipments of drugs described in subsection scription Drug, Improvement, and Mod- duct, or contract with an entity to conduct, (a) shall include a label on the shipping con- ernization Act of 2003, and the amendments a study on the imports permitted pursuant tainer that incorporates the technologies de- made by such subtitle, are repealed. to subsection (a), including consideration of scribed in subsection (b), so that officials in- SEC. 4. PHARMACEUTICAL MARKET ACCESS. the information received under subsection specting the packages will be able to deter- (a) IMPORTATION OF PRESCRIPTION DRUGS.— (d). In conducting such study, the Secretary mine the authenticity of the shipment. Section 804 of the Federal Food, Drug, and or entity shall evaluate the compliance of Chain of custody procedures shall apply to Cosmetic Act (21 U.S.C. 384) is amended— importers with regulations under subsection such labels and shall include procedures ap- (1) in subsection (a)— (a), and the incidence of shipments pursuant plicable to contractual agreements for the (A) by striking ‘‘The Secretary’’ and in- to such subsection, if any, that have been de- use and distribution of the labels, methods serting ‘‘Not later than 180 days after the termined to be misbranded or adulterated, to audit the use of the labels, and database date of the enactment of the Medicare Pre- and determine how such compliance con- access for the relevant governmental agen- scription Drug, Improvement, and Mod- trasts with the incidence of shipments of cies for audit or verification of the use and ernization Act of 2003, the Secretary’’; and prescription drugs transported within the distribution of the labels.’’. (B) by striking ‘‘pharmacists and whole- United States that have been determined to (c) REPEAL.—Subtitle C of title XI of the salers’’ and inserting ‘‘pharmacists, whole- be misbranded or adulterated.’’; and Medicare Prescription Drug, Improvement, salers, and qualifying individuals’’; (B) in subparagraph (B), by striking ‘‘Not and Modernization Act of 2003, and the (2) in subsection (b)— later than 2 years after the effective date of amendments made by such subtitle, are re- (A) by amending paragraph (1) to read as final regulations under subsection (a),’’ and pealed. follows: inserting ‘‘Not later than 18 months after the SEC. 5. ASSURING ACCESS TO COVERAGE. ‘‘(1) require that each covered product im- date of the enactment of the Medicare Pre- Paragraph (3) of section 1860D–3(a), as ported pursuant to such subsection complies scription Drug, Improvement, and Mod- added by section 101 of the Medicare Pre- with sections 501, 502, and 505, and other ap- ernization Act of 2003,’’; scription Drug, Improvement, and Mod- plicable requirements of this Act; and’’; (9) in subsection (k)(2)— ernization Act of 2003, is amended to read as (B) in paragraph (2), by striking ‘‘, includ- (A) by redesignating subparagraphs (D) and follows: ing subsection (d); and’’ and inserting a pe- (E) as subparagraphs (E) and (F), respec- ‘‘(3) QUALIFYING PLAN DEFINED.—For pur- riod; and tively; and poses of this section, the term ‘qualifying (C) by striking paragraph (3); (B) by inserting after subparagraph (C) the plan’ means a prescription drug plan offered (3) in subsection (c), by inserting ‘‘by phar- following: by a PDP sponsor.’’. macists and wholesalers (but not qualifying ‘‘(D) The term ‘qualifying individual’ SEC. 6. REPEAL OF MA REGIONAL PLAN STA- individuals)’’ after ‘‘importation of covered means an individual who is not a pharmacist BILIZATION FUND. products’’; or a wholesaler. ’’; and (a) IN GENERAL.—Section 1858 of the Social (4) in subsection (d)— (10) by striking subsections (l) and (m). Security Act, as added by section 221(c) of SE OF COUNTERFEIT-RESISTANT TECH- (A) by striking paragraphs (3) and (10); (b) U the Medicare Prescription Drug, Improve- NOLOGIES TO PREVENT COUNTERFEITING.— (B) in paragraph (5), by striking ‘‘, includ- ment, and Modernization Act of 2003, is (1) MISBRANDING.—Section 502 of the Fed- ing the professional license number of the amended— eral Food, Drug, and Cosmetic Act (21 U.S.C. importer, if any’’; (1) by striking subsection (e); 352; deeming drugs and devices to be mis- (C) in paragraph (6)— (2) by redesignating subsections (f), (g), and branded) is amended by adding at the end the (i) in subparagraph (C), by inserting ‘‘(if re- (h) as subsections (e), (f), and (g), respec- following: quired under subsection (e))’’ before the pe- tively; and ‘‘(w) If it is a drug subject to section 503(b), (3) in subsection (e), as so redesignated, by riod; unless the packaging of such drug complies (ii) in subparagraph (D), by inserting ‘‘(if striking ‘‘subject to subsection (e),’’. with the requirements of section 505B for (b) CONFORMING AMENDMENT.—Section required under subsection (e))’’ before the pe- counterfeit-resistant technologies.’’. 1851(i)(2) of the Social Security Act (42 U.S.C. riod; and (2) REQUIREMENTS.—Title V of the Federal 1395w–21(i)(2)), as amended by section (iii) in subparagraph (E), by striking ‘‘la- Food, Drug, and Cosmetic Act (21 U.S.C. 351 221(d)(5) of the Medicare Prescription Drug, beling’’; et seq.) is amended by inserting after section Improvement, and Modernization Act of 2003, (D) in paragraph (7)— 505A the following: is amended by striking‘‘1858(h)’’ and insert- (i) in subparagraph (A), by inserting ‘‘(if ‘‘SEC. 505B. COUNTERFEIT-RESISTANT TECH- ing ‘‘1858(g)’’. required under subsection (e))’’ before the pe- NOLOGIES. riod; and SEC. 7. REPEAL OF HEALTH SAVINGS ACCOUNTS. ‘‘(a) INCORPORATION OF COUNTERFEIT-RE- Section 1201 of the Medicare Prescription (ii) by amending subparagraph (B) to read SISTANT TECHNOLOGIES INTO PRESCRIPTION as follows: Drug, Improvement, and Modernization Act DRUG PACKAGING.—The Secretary shall re- of 2003, and the amendments made by such ‘‘(B) Certification from the importer or quire that the packaging of any drug subject section, are repealed. manufacturer of such product that the prod- to section 503(b) incorporate— uct meets all requirements of this Act.’’; and ‘‘(1) overt optically variable counterfeit-re- SEC. 8. EFFECTIVE DATE. (E) by redesignating paragraphs (4) sistant technologies that are described in (a) IN GENERAL.—The amendments made by through (9) as paragraphs (3) through (8), re- subsection (b) and comply with the standards this Act shall take effect as if included in spectively; of subsection (c); or the enactment of the Medicare Prescription (5) by amending subsection (e) to read as ‘‘(2) technologies that have an equivalent Drug, Improvement, and Modernization Act follows: function of security, as determined by the of 2003. (b) APPLICATION OF LAWS.—If any amend- ‘‘(e) TESTING.— Secretary. ment to any provision of any Act is repealed ‘‘(1) IN GENERAL.—Subject to paragraph (2), ‘‘(b) ELIGIBLE TECHNOLOGIES.—Tech- regulations under subsection (a) shall re- nologies described in this subsection— by this Act, such provision shall be applied quire that testing referred to in paragraphs ‘‘(1) shall be visible to the naked eye, pro- and administered as if the amendment had (5) through (7) of subsection (d) be conducted viding for visual identification of product never been enacted. by the importer of the covered product, un- authenticity without the need for readers, less the covered product is a prescription microscopes, lighting devices, or scanners; By Mr. DODD (for himself and drug subject to the requirements of section ‘‘(2) shall be similar to that used by the Mr. MCCAIN): 505B for counterfeit-resistant technologies. Bureau of Engraving and Printing to secure S. 1975. A bill to amend the Internal ‘‘(2) EXCEPTION.—The testing requirements United States currency; Revenue Code of 1986 to deny a deduc- of paragraphs (5) through (7) of subsection (d) ‘‘(3) shall be manufactured and distributed tion for securities-related fines, pen- shall not apply to an importer unless the im- in a highly secure, tightly controlled envi- alties, and other amounts, and to pro- porter is a wholesaler.’’; ronment; and vide that revenues resulting from such (6) in subsection (f), by striking ‘‘or des- ‘‘(4) should incorporate additional layers of ignated by the Secretary, subject to such non-visible covert security features up to denial be transferred to Fair Funds for limitations as the Secretary determines to and including forensic capability. the relief of victims; to the Committee be appropriate to protect the public health’’; ‘‘(c) STANDARDS FOR PACKAGING.— on Finance.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00143 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16024 CONGRESSIONAL RECORD — SENATE November 25, 2003 Mr. DODD. Mr. President, I rise settlement. Second, it directs all of the CHIP, which provides enhanced funding today to introduce important legisla- tax revenues gained from those pay- to meet these goals. To this end, the tion designed to ensure that corporate ments into existing funds administered Governors support providing additional wrongdoers are held fully responsible by the Securities and Exchange Com- funding flexibility to states that had for their illegal actions and that inves- mission which repay money to de- already significantly expanded cov- tors are given fair compensation for frauded investors. Under my bill, the erage of the majority of uninsured chil- such actions. perpetrators of corporate misdeeds will dren in their states. As most of my colleagues are aware, be fairly punished, and the victims will For six years, our group of States in April of this year, 10 large securities be fairly compensated. have sought to have this inequity ad- firms agreed to pay a total of $1.4 bil- Everyone agrees that restoring inves- dressed. Early this year, I introduced lion in fines and payments for giving tor confidence is a crucial part of get- the ‘‘Children’s Health Equity of 2003’’ their investment clients tainted and ting our economy back on the right with Senators JEFFORDS, MURRAY, misleading advice—advice which cost track. The vitality of 10 largest securi- LEAHY, and Ms. CANTWELL and we those clients hundreds of millions of ties firms represent an important piece worked successfully to get a com- dollars. of this puzzle. But Americans will only promise worked out for inclusion in S. The ‘‘global settlement’’ was ini- be willing to entrust them with their 312 by Senators ROCKEFELLER, and tially lauded as a historic victory hard-earned money if they can be sure CHAFEE. This compromise extended ex- against corporate wrongdoers. And in- that they are being dealt with ethi- piring CHIP allotments only for fiscal deed, thanks to the efforts of Federal cally and honestly. years 1998 through 2001 in order to meet and State securities regulators, and The global settlement represents a budgetary caps. New York State Attorney General tremendous opportunity to help mend The compromise allowed States to be Eliot Spitzer, the settlement has the the tattered relationship between cor- able to use up to 20 percent of our potential to fundamentally change per- porate America and the American peo- State’s CHIP allotments to pay for vasive business practices that were so ple. We can’t afford to lose that oppor- Medicaid eligible children about 150 harmful to so many. tunity in a tax loophole. We need to percent of poverty that were part of But the settlement’s impact could be show Americans that corporate fraud is our State’s expansions prior to the en- significantly weakened by a loophole a real crime—not business as usual. I actment of CHIP. That language was that would allow the firms to avoid urge my colleagues to support this bill. maintained in conference and included paying taxes on nearly $900 million of in H.R. 2854 that was signed by the the penalties—by deducting them as By Mr. BINGAMAN (for himself, President as Public Law 108–74. Unfor- standard business costs. Mr. DOMENICI, Mrs. MURRAY, tunately, a slight change was made in Only one-third of the total settle- Mr. JEFFORDS, Ms. CANTWELL, the conference language that excluded ment is specifically prohibited by law Mr. AKAKA, Mr. REED, Mr. New Mexico and Hawaii, Maryland, and from being tax-deductible. If the firms CHAFEE, and Mr. INOUYE: Rhode Island needed specific changes are able to write off the remainder of S. 1976. A bill to amend title XXI of so an additional bill was passed, H.R. the costs as business expenses, then the the Social Security Act to permit 3288, and signed into law as Public Law total price tag of the settlement will be qualifying States to use a portion of 108–107, on November 17, 2003. This sec- much smaller than advertised. their allotments under the State chil- ond bill included language from legisla- However, there is much more at dren’s health insurance program for tion that I introduced with Senator stake. America’s financial markets are any fiscal year for certain medical ex- DOMENICI, S. 1547, to address the prob- the most vibrant in the world for one penditures, and for other purposes; to lem caused to New Mexico by the con- reason—investor confidence. The secu- the Committee on Finance. ference committee’s change. rities laws of the 1930’s built the foun- Mr. BINGAMAN. Mr. President, I rise Unfortunately, one major problem dation for the deepest, most liquid today to introduce legislation with with the compromise was that it would markets in the world. They have cre- Senators DOMENICI, MURRAY, JEFFORDS, allow the 10 States flexibility with its ated a public trust in our markets CANTWELL, AKAKA, REED, CHAFEE, and CHIP funds for allotments between 1998 among investors worldwide who know INOUYE entitled the ‘‘Children’s Health and 2001 and not in the future. There- that we have a zero-tolerance policy Equity Technical Amendments Act of fore, the inequity continues with CHIP towards corporate malfeasance. 2003.’’ allotments last year, this year, and If we allow firms to write off fines as Since the passage of the Children’s into the future. This legislation would the cost of doing business, then we will Health Insurance Program, or CHIP, in address that problem and ensure that perpetuate the idea that fraud is no 1997, a group of States that expanded all future allotments give these 11 longer a crime, but an accepted busi- coverage to children in Medicaid prior States the flexibility to use up to 20 ness practice. And we will compromise to the enactment of CHIP have been percent of our CHIP allotments to pay the very principles on which our mar- unfairly penalized for that expansion. for health care services of children kets are based—credibility, honesty, States are not allowed to use the en- above 150 percent of poverty in our re- and responsibility. hanced matching rate available to spective state Medicaid programs. We need to send the strongest pos- other States for children at similar This rather technical issue has real sible message to corporate America levels of poverty under the act. As a re- and negative consequences in States that defrauding people of their life sav- sult, a child in the States of New York, such as New Mexico. In fact, due to the ings can never, under any cir- Florida, and Pennsylvania, because CHIP inequity, New Mexico has been cumstances, be considered ‘‘business as they were grandfathered in the original allocated $266 million from CHIP be- usual.’’ Our tax code should not reward act or in Iowa, Montana, or a number tween fiscal years 1998 and 2002, and these practices—it should discourage of other States at 134 percent of pov- yet, has only been able to spend slight- and punish them, to the greatest ex- erty is eligible for an enhanced match- ly over $26 million as of the end of last tent possible. Otherwise, the victims of ing rate in CHIP but that has not been fiscal year. In other words, New Mexico corporate misconduct will include not the case for States such as New Mex- has been allowed to spend less than 10 only individual investors, but the ico, Vermont, Washington, Rhode Is- percent of its federal CHIP allocations. credibility of our capital markets. And land, Hawaii, and a number of others, With the passage of H.R. 2854 and if our markets suffer, so will America’s including Connecticut, Tennessee, Min- H.R. 3288, that situations will improve place in the world economy. nesota, New Hampshire, Wisconsin, and somewhat. Unfortunately, the change That is why I rise today to introduce Maryland. was not made permanent and does not my legislation. This legislation takes As the health policy statement by apply to future CHIP allotments. This two important steps towards fixing the National Governors’ Association legislation would correct this problem. this problem. First, it expressly pro- reads, ‘‘The Governors believe that it is It is important to note that this ini- hibits any tax deduction on payments critical that innovative states not be tiative includes strong maintenance of for violations of securities laws, in- penalized for having expanded coverage effort language as well as incentives cluding those required by the global to children before the enactment of S– for our State to conduct outreach and

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00144 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16025 enrollment efforts and program sim- to face-to-face interviews), forms, and fre- cially with the current 6.0 percent un- plification to find and enroll uninsured quency as the State uses for such purposes employment rate in the United States. kids because we feel strongly that they under this title, and, as part of such redeter- To ensure that the road to recovery is must receive the health coverage for minations, provides for the automatic reas- robust, we have a special obligation to sessment of the eligibility of such children which they are eligible. for assistance under title XIX and this title. provide the investment to allow small The bill does not take money from ‘‘(E) OUTSTATIONING ENROLLMENT STAFF.— companies to grow. In fact, it has been other States’s CHIP allotments. It sim- The State provides for the receipt and initial reported that for every dollar of final ple allows our States to spend our processing of applications for benefits under manufacturing output, an additional States’ specific CHIP allotments from this title and for children under title XIX at $1.26 is created in other industry sec- the Federal government on our unin- facilities defined as disproportionate share tors such as suppliers of raw materials, sured children—just as other States hospitals under section 1923(a)(1)(A) and Fed- marketing, and retail industries. across the country are doing. erally-qualified health centers described in Looking even more broadly, a I ask unanimous consent that the section 1905(l)(2)(B) consistent with section healthy manufacturing base is essen- 1902(a)(55).’’. text of the bill be printed in the (c) CONFORMING AMENDMENT.—Section tial to the preservation of our Nation’s RECORD. 2105(g)(3) of the Social Security Act (42 security and its status as a world There being no objection, the bill was U.S.C. 1397ee(g)(3)) is amended by striking power. We must end the trend of be- ordered to be printed in the RECORD, as ‘‘paragraphs (1) and (2)’’ and inserting ‘‘this coming increasingly dependent upon follows: subsection’’. other countries for the products we use (d) EFFECTIVE DATE.—The amendments S. 1976 and rely upon. Now is the crucial time made by this section take effect as if enacted Be it enacted by the Senate and House of Rep- on October 1, 2003. for everyone—industry representatives, resentatives of the United States of America in Congress, the President, Republicans Congress assembled, By Ms. SNOWE (for herself and and Democrats alike—to work together SECTION 1. SHORT TITLE. Mr. VOINOVICH): toward the common goal of revitalizing This Act may be cited as the ‘‘Children’s S. 1977. A bill to promote the manu- this industry. Health Equity Technical Amendments Act of facturing industry in the United States As the Chair of the Committee on 2003’’. Small Business, I have been focusing SEC. 2. AUTHORITY FOR QUALIFYING STATES TO by establishing an Assistant Secretary USE PORTION OF SCHIP ALLOTMENT for Manufacturing within the Depart- considerable attention on the concerns FOR ANY FISCAL YEAR FOR CERTAIN ment of Commerce, an Interagency of small business manufacturers and ef- MEDICAID EXPENDITURES. Manufacturing Task Force, and a forts to aid in their recovery. Last (a) IN GENERAL.—Section 2105(g)(1)(A) of Small Business Manufacturing Task month, I held a field hearing on this the Social Security Act (42 U.S.C. Force, and for other purposes; to the critical subject in Lewiston, ME. I in- 1397ee(g)(1)(A)) (as added by section 1(b) of vited Grant Aldonas, Under Secretary Public Law 108–74) is amended by striking ‘‘, Committee on Small Business and En- 1999, 2000, or 2001’’ and inserting ‘‘and any fis- trepreneurship. for International Trade of the Com- cal year thereafter’’. Ms. SNOWE. Mr. President, I rise merce Department, and Pamela Olson, (b) SPECIAL RULE FOR USE OF ALLOTMENTS today to introduce the ‘‘Small Manu- Assistant Secretary for Tax Policy of FOR FISCAL YEAR 2002 OR THEREAFTER.—Sec- facturers Assistance, and Trade the Treasury Department, to partici- tion 2105(g) of the Social Security Act (42 (SMART) Act,’’ which responds to the pate and explored with them ways to U.S.C. 1397ee(g)) (as so added and as amended needs of America’s small manufactur- strengthen and expand this vital indus- by Public Law 108–127) is amended— ers. This bill offers a new emphasis on try. Their testimony and comments (1) in paragraph (2), by striking ‘‘In this subsection’’ and inserting ‘‘Subject to para- programs and services within the Fed- confirmed that we cannot delay and graph (4), in this subsection’’; and eral Government that will provide must act quickly to support our small (2) by adding at the end the following: small companies a better opportunity manufacturing base. ‘‘(4) SPECIAL RULE REGARDING AUTHORITY TO to survive in these challenging times Additionally, I heard from a number USE PORTION OF ALLOTMENTS FOR FISCAL YEAR and compete in our global economy. of small businesses in the manufac- 2002 OR THEREAFTER.—Notwithstanding para- The SMART Act introduces new re- turing industry. Their testimony con- graph (2), the authority provided under para- sources, improves existing programs, firmed the damage sustained by our graph (1)(A) with respect to any allotment and expands those programs that work country’s manufacturing sector, and under section 2104 for fiscal year 2002 or any the sense of urgency that we need to fiscal year thereafter (insofar as the allot- to serve a larger constituency. It is ment is available under subsections (e) and critical that we revitalize our coun- act immediately to assist them. The (g) of such section), shall only apply to a try’s manufacturing base and establish SMART Act is a vital first step toward qualifying State if the State has imple- an environment for economic growth helping them do what they do best— mented at least 3 of the following policies and job creation. create jobs. and procedures (relating to coverage of chil- Small manufacturers constitute over The bill I introduce today starts by dren under title XIX and this title): 98 percent of our Nation’s manufac- establishing a strong and influential ‘‘(A) UNIFORM, SIMPLIFIED APPLICATION turing enterprises, employ 12 million voice for manufacturers within the FORM.—With respect to children who are eli- people, and supply more than 50 per- Federal Government through the cre- gible for medical assistance under section ation of an Assistant Secretary for 1902(a)(10)(A), the State uses the same uni- cent of the value-added U.S. produc- form, simplified application form (including, tion. It is a sector we cannot afford to Manufacturing within the U.S. Depart- if applicable, permitting application other ignore. In addition, no industry has ment of Commerce. The new Assistant than in person) for purposes of establishing witnessed a more profound erosion of Secretary will be responsible for iden- eligibility for benefits under title XIX and jobs. tifying and addressing the concerns of this title. The damage manufacturing has sus- small manufacturers at the highest ‘‘(B) ELIMINATION OF ASSET TEST.—The tained is nothing short of alarming. level of our Federal Government. Sen- State does not apply any asset test for eligi- Since July 2000, almost 2.8 million U.S. ator VOINOVICH has introduced S. 1326, bility under section 1902(l) or this title with which similarly creates an Assistant respect to children. manufacturing jobs have been elimi- Secretary for Manufacturing. I support ‘‘(C) ADOPTION OF 12-MONTH CONTINUOUS EN- nated. New England alone lost more ROLLMENT.—The State provides that eligi- than 214,000 jobs between June 1993 that bill and Senator VOINOVICH’s ef- bility shall not be regularly redetermined through June 2003, with 78 percent of forts to assisting our country’s manu- more often than once every year under this those losses, 166,000 jobs, occurring facturers. title or for children described in section since January of 2001. To ensure that the government acts 1902(a)(10)(A). In my home State of Maine, we’ve on the needs of manufacturers, the ‘‘(D) SAME VERIFICATION AND REDETERMINA- been shedding jobs at a startling rate SMART Act creates an Interagency TION POLICIES; AUTOMATIC REASSESSMENT OF over the past decade—and even more so Manufacturing Task Force (IMTF). The ELIGIBILITY.—With respect to children who mission of the IMTF will be to encour- are eligible for medical assistance under sec- in the past 2 years. Between July 2000 tion 1902(a)(10)(A), the State provides for ini- and June 2003 an astounding 17,300 age the Federal departments and agen- tial eligibility determinations and redeter- manufacturing jobs were lost. cies to coordinate their efforts by iden- minations of eligibility using the same The bottom line is that we must bol- tifying and addressing manufacturing verification policies (including with respect ster our manufacturing industry, espe- concerns collectively. The IMTF will

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00145 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16026 CONGRESSIONAL RECORD — SENATE November 25, 2003 be chaired by the Commerce Depart- and exporting related organizations, loan size, from $1 million to $4 million. ment’s new Assistant Secretary for which will help increase the marketing Second, for loans to exporters, the bill Manufacturing and will be comprised capabilities of these small producers increases the maximum loan size from of representatives from the Federal de- and exporters. $3.25 million to $5 million by increasing partments and agencies that directly I have also learned that small and the SBA’s maximum guarantee from affect this sector of our economy. In medium sized companies are often hesi- $1.3 million to $2 million. addition, the IMTF will be tasked with tant to engage in the export of their Finally, the bill clarifies that under the duty of submitting an annual re- product as a way to grow their small the SBA’s Surety Bond Guarantee Pro- port on their findings and rec- business, because they are often fearful gram, the SBA may guarantee bonds ommendations to the President and the of the many unfamiliar intricacies in- for specific contracts of $2 million or Senate and House Small Business Com- volved in doing business in a foreign less, even if the total range of affili- mittees. market. Small businesses currently ac- ated contracts may exceed $2 million. In conjunction with this government- count for almost $300 billion of yearly These SBA financing programs have wide task force, the SMART Act also export sales—nearly one-third of total helped to create millions of jobs in continues to improve the Federal infra- U.S. exports. However, according to an America, and manufacturers and ex- structure supporting the industry by Administration survey through the porters have been an important part of establishing a Small Business Manu- SBA’s Export Trade Assistance Part- that success. This bill will increase facturing Task Force (SBMTF) within nership, approximately 30 percent of small companies’ and exporters’ ability the Small Business Administration non-exporting small businesses are in- to obtain vital capital that will help (SBA). The SBA has a wide spectrum of terested in exporting their products them compete in a very difficult inter- programs and services available to and services. These businesses hold the national environment and enable them small manufacturers. The mission of potential to be a major source for even to create more jobs for American work- the new SBMTF will be to refocus the more economic activity and job ers. agency’s programs and services to en- growth. I am drawing these provisions from sure that they respond to the par- The SBA is a pivotal resource in de- another bill I have authored, the Small ticular needs of small manufacturers livering financial and business develop- Business Administration 50th Anniver- while still serving all aspects of the ment tools to businesses seeking to ex- sary Reauthorization Act of 203 (S. small business community. port. The SMART Act improves the 1375), which the Committee and the Adding to the information gained SBA’s international trade and export- Senate unanimously approved earlier from the Committee’s hearing, we have ing programs to assist small businesses this year. While we are waiting for the reviewed the SBA’s programs and serv- and manufacturers expand into the ex- House of Representatives to pass an ices that are geared specifically toward port market and play an even greater SBA reauthorization bill, I believe that manufacturing and international trade. role in the balance of U.S. trade. given the importance of these financ- I was alarmed to learn, during this The SMART Act also requires the ing provisions, they must be included hearing, that small manufacturers SBA to establish annual goals that are in this bill as well to increase their were unfamiliar with the SBA pro- linked to its trade promotion activi- chance of being signed into law. grams that can assist them. These find- ties, and to develop programs that will Because Federal assistance for small ings revealed that the SBA needs to re- help small businesses compete against manufacturers should extend beyond align its efforts specifically to include imports. This objective will be more the SBA, the SMART Act will also es- manufacturers in the delivery of the easily obtained by incrementally in- tablish a new Assistant United States agency’s program and services. creasing the number of SBA represent- Trade Representatives for Small Busi- In order to improve existing SBA atives at the U.S. Export Assistance ness within the Office of the United small business development programs, Centers (USEACs) over the next 3 States Trade Representatives (USTR). the agency needs to take its services years. To ensure that all States have This office will be tasked with focusing beyond the traditional small business the same services available, the SBA on small businesses’, including small enterprise. The SMART Act improves Office of International Trade will have manufacturers, concerns in trade nego- the SBA’s entrepreneurial development at least one financial specialist dedi- tiations and promoting their exports. programs and services so that small cated to the international loan pro- There are currently 21 Assistant manufacturers can grow their business grams and providing oversight of trade USTRs covering issues from services to operation, expand their facilities, and financing issues. telecommunications to labor. While purchase new equipment—all of which The SBA’s financing programs have small businesses face many of the same will result in creating jobs throughout helped American small businesses cre- issues that serve as barriers to trade as the industry and its supply chain. ate and retain jobs, even as other many of the largest multinational cor- Partnerships developed between SBA sources of financing have become more porations, they do not have the same related organizations and non-SBA re- scarce. This bill provides improve- resources to overcome these barriers, lated entities will be an additional ments to the SBA’s 7(a), 504, and Sur- thus blocking them from reaping the asset for these producers. The SMART ety Bond programs. benefits of international trade. In par- Act directs the SBA to develop part- From Fiscal Year 1999 through Fiscal ticular, small businesses do not have nerships with the Manufacturing Ex- Year 2002, the 7(a) loan program helped the resources necessary to settle pri- tension Partnership (MEP), community small businesses create more than 1.3 vate trade disputes in a timely and economic development organizations, million new jobs by making $37.7 bil- cost effective fashion, meet physical and the agency’s resource partners— lion in financing available to more presence requirements in other coun- such as Small Business Development than 182,000 small businesses. This bill tries, conform to complex customs pro- Centers and SCORE—to create new increases the maximum size of 7(a) cedures, or meet off-set exclusions in outreach and training programs for loans for small exporters from $2 mil- government procurement. By estab- small manufacturers and small busi- lion to $2.6 million by increasing the lishing a new Assistant U.S. Trade nesses in the manufacturing supply maximum amount guaranteed by the Representative, we will ensure that the chain. SBA from $1 million to $1.3 million. views and concerns of small businesses The SMART Act requires SCORE, During that same period, the 504 loan will have an appropriate seat at the ne- with its long established expertise in program provided more than 20,000 new gotiating table and help secure the counseling, to extend its reach to small loans to small businesses, allowing competitiveness of our small exporters manufacturers and exporters through those businesses to create or retain al- abroad. its online counseling services and its most 450,000 jobs. The SMART Act in- The Small Manufacturers Assistance, community based offices. The Act also creases 504 loan sizes in two ways. Recovery, and Trade Act answers the directs SCORE to recruit more coun- First, the bill increases the maximum call for help that I have heard too often selors with manufacturing and inter- loan size for manufacturing projects by of late from small manufacturers in national trade expertise and increase increasing the SBA’s maximum guar- this country. These improvements to its partnerships with manufacturing antee, which is 40 percent of the total existing resources within the Federal

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00146 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16027 government will give these companies (2) be compensated at the rate of pay pro- (10) a representative of the Office of the a better opportunity to survive in vided for under level IV of the Executive United States Trade Representative, to be these challenging times and compete in Schedule (5 U.S.C. 5315). designated by the United States Trade Rep- the global economy. (b) DUTIES.—The Assistant Secretary of resentative; Commerce for Manufacturing shall— (11) a representative of the Small Business This bill is a critical starting point (1) identify and address the concerns of Administration, to be designated by the Ad- to revitalize our country’s manufac- manufacturers; ministrator of the Small Business Adminis- turing base and create an environment (2) represent and advocate for the interests tration; that allows them to grow and create of United States manufacturers; (12) a representative of the Executive Of- jobs again. We must help these busi- (3) aid in the development of policies that fice of the President, to be designated by the nesses access the global marketplace promote the vitality and expansion of United President; and through expanded exporting opportuni- States manufacturing; (13) 2 additional members, to be designated ties and assistance. I intend to work (4) review policies that adversely impact by the President. manufacturers; with all groups and interested parties (c) DUTIES.—Under the direction of the As- (5) identify and address issues that are sistant Secretary of Commerce for Manufac- that are committed to improving and unique to small manufacturers and those turing, the IMTF shall— passing this bill. There are still many that are exacerbated by the size or limited (1) provide advice and counsel to the Presi- needs that face our Nation’s manufac- capital of small manufacturers; and dent and Congress on matters of importance turers—and this is just the beginning. (6) perform such other duties as the Sec- to manufacturers; I look forward to working with my retary of Commerce may prescribe. (2) monitor, coordinate, and promote the colleagues in the Senate to ensure that (c) REPORTING REQUIREMENTS.—The Assist- plans, programs, and operations of the de- the provisions of this bill are enacted ant Secretary of Commerce for Manufac- partments and agencies of the Federal Gov- so that these companies can continue turing shall submit to Congress an annual ernment that may contribute to the growth report that contains— of the United States manufacturing indus- to grow and reach their full potential. (1) an overview of the state of the manufac- try; Mr. President, I ask unanimous con- turing sector in the United States; (3) develop and promote new public sector sent that the text of the bill and a sec- (2) a forecast of the future state of the initiatives, policies, programs, and plans de- tion-by-section analysis be printed in manufacturing sector in the United States; signed to foster the manufacturing industry; the RECORD. and (4) review, monitor, and coordinate plans There being no objection, the mate- (3) an analysis of current and significant and programs developed in the public sector, rial was ordered to be printed in the laws, regulations, and policies that adversely which affect the ability of manufacturers to RECORD, as follows: impact the manufacturing sector in the obtain capital, credit, and access to tech- United States. nology; S. 1977 (d) TECHNICAL AND CONFORMING AMEND- (5) identify and address regulations that Be it enacted by the Senate and House of Rep- MENT.—Section 5315 of title 5, United States are needlessly burdensome on manufactur- resentatives of the United States of America in Code, is amended by striking ‘‘Assistant Sec- ers; and Congress assembled, retaries of Commerce (11)’’ and inserting (6) design a comprehensive plan for a joint SECTION 1. SHORT TITLE; TABLE OF CONTENTS. ‘‘Assistant Secretaries of Commerce (12)’’. public-private sector effort to facilitate the (a) SHORT TITLE.—This Act may be cited as SEC. 102. INTERAGENCY MANUFACTURING TASK growth and development of the United the ‘‘Small Manufacturers Assistance, Re- FORCE. States manufacturing industry. covery, and Trade Act’’ or ‘‘SMART Act’’. (a) ESTABLISHMENT.—There is established (d) MEETINGS.— (b) TABLE OF CONTENTS.—The table of con- an Interagency Manufacturing Task Force (1) FREQUENCY.—The IMTF shall meet not tents for this Act is as follows: (referred to in this section as the ‘‘IMTF’’) less than 4 times per year to perform the du- Sec. 1. Short title; table of contents. for the purposes of— ties under subsection (c). TITLE I—MANUFACTURING AND TRADE (1) maximizing the efforts and resources of (2) QUORUM.—A majority of the members of REPRESENTATIVES AND TASK FORCE Federal agencies in assisting the manufac- the IMTF shall constitute a quorum to ap- prove recommendations or reports. Sec. 101. Assistant Secretary of Commerce turing industry; for Manufacturing. (2) improving interagency cooperation in (e) PERSONNEL MATTERS.— Sec. 102. Interagency Manufacturing Task their efforts to assist the manufacturing in- (1) COMPENSATION OF MEMBERS.— Force. dustry; (A) FEDERAL EMPLOYEES.—Each member of Sec. 103. Assistant United States Trade Rep- (3) encouraging additional efforts to assist the IMTF who is an officer or employee of resentative for Small Business. United States manufacturers; the Federal Government shall serve without (4) coordinating the agencies’ efforts to as- compensation in addition to that received TITLE II—SMALL BUSINESS sist the manufacturing industry; and for services rendered as an officer or em- ADMINISTRATION (5) identifying and addressing collective ployee of the United States. Subtitle A—Manufacturing and manufacturing concerns. (B) OTHER MEMBERS.—Each member of the Entrepreneurial Development (b) MEMBERSHIP.—The IMTF shall be com- IMTF who is not an officer or employee of Sec. 201. Small Business Manufacturing posed of 14 members, including— the Federal Government shall be com- Task Force. (1) the Assistant Secretary of Commerce pensated at a rate equal to the daily equiva- Sec. 202. Entrepreneurial development pro- for Manufacturing, who shall serve as chair lent for level IV of the Executive Schedule (5 grams and services. of the IMTF; U.S.C. 5315) for each day (including travel Subtitle B—Small Business Loan Programs (2) a representative of the Department of time) during which such member is engaged Sec. 211. Increased loan amounts for export- the Treasury, to be designated by the Sec- in the performance of the duties of the ers. retary of the Treasury; IMTF. Sec. 212. Debenture size. (3) a representative of the Department of (2) TRAVEL EXPENSES.—The members of the Sec. 213. Job creation or retention stand- Defense, to be designated by the Secretary of IMTF shall be allowed travel expenses, in- ards. Defense; cluding per diem in lieu of subsistence, at Sec. 214. Clarification of maximum surety (4) a representative of the Department of rates authorized for employees of Federal bond guarantee. Education, to be designated by the Secretary agencies under subchapter I of chapter 57 of title 5, United States Code, while away from Subtitle C—International Trade of Education; (5) a representative of the Department of their homes or regular place of business in Sec. 221. Office of International Trade. Energy, to be designated by the Secretary of the performance of services for the IMTF. TITLE I—MANUFACTURING AND TRADE Energy; (3) DETAIL OF FEDERAL EMPLOYEES.—Any REPRESENTATIVES AND TASK FORCE (6) a representative of the Department of employee of the Federal Government may be SEC. 101. ASSISTANT SECRETARY OF COMMERCE Health and Human Services, to be designated detailed to the IMTF without reimburse- FOR MANUFACTURING. by the Secretary of Health and Human Serv- ment, and such detail shall be without inter- (a) ESTABLISHMENT.—There shall be in the ices; ruption or loss of civil service status or Department of Commerce, in addition to the (7) a representative of the Department of privilege. Assistant Secretaries of Commerce provided Homeland Security, to be designated by the (f) REPORTS.— by law as of the date of enactment of this Secretary of Homeland Security; (1) FINDINGS AND RECOMMENDATIONS.—Not Act, 1 additional Assistant Secretary of (8) a representative of the Department of later than 1 year after the date of enactment Commerce, to be known as the Assistant Labor, to be designated by the Secretary of of this Act, and annually thereafter, the Secretary of Commerce for Manufacturing, Labor; IMTF shall submit a report containing the who shall— (9) a representative of the Environmental findings and recommendations described in (1) be appointed by the President, by and Protection Agency, to be designated by the paragraphs (1) through (5) of subsection (c) with the advice and consent of the Senate; Administrator of the Environmental Protec- to— and tion Agency; (A) the President;

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00147 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16028 CONGRESSIONAL RECORD — SENATE November 25, 2003 (B) the Committee on Small Business and (3) actively promote the programs and preneurial Development of the Small Busi- Entrepreneurship of the Senate; and services of the Small Business Administra- ness Administration shall develop programs (C) the Committee on Small Business of tion that serve small manufacturers; and and services to strengthen small business the House of Representatives. (4) identify and study the unique condi- vendors and suppliers that participate in the (2) GROWTH PLAN.—Not later than 1 year tions facing small manufacturers and de- manufacturing supply chain. after the date of enactment of this Act, the velop and propose policy initiatives to sup- (f) SIMPLIFIED REPORTING REQUIREMENTS.— Assistant Secretary of Commerce for Manu- port and assist small manufacturers. The Small Business Administration shall re- facturing shall submit the plan prepared pur- (d) MEETINGS.— view and simplify, as appropriate, its report- suant to subsection (c)(6) to— (1) FREQUENCY.—The Task Force shall ing requirements for the Small Business De- (A) the President; meet not less than 4 times per year, and velopment Centers, the Service Corps of Re- (B) the Committee on Small Business and more frequently if necessary to perform its tired Executives, and Women’s Business Cen- Entrepreneurship of the Senate; and duties. ters so that these organizations can maxi- (C) the Committee on Small Business of (2) QUORUM.—A majority of the members of mize the time spent assisting their clients. the House of Representatives. the Task Force shall constitute a quorum to (g) DISTRICT OFFICES.—The Small Business Administration shall provide district offices SEC. 103. ASSISTANT UNITED STATES TRADE REP- approve recommendations or reports. RESENTATIVE FOR SMALL BUSI- (e) PERSONNEL MATTERS.— with adequate resources, including budget NESS. (1) COMPENSATION OF MEMBERS.—Each allocations for travel and materials used to Section 141(c) of the Trade Act of 1974 (19 member of the Task Force shall serve with- conduct outreach and training activities. U.S.C. 2171(c)) is amended by adding at the out compensation in addition to that re- Subtitle B—Small Business Loan Programs end the following: ceived for services rendered as an officer or SEC. 211. INCREASED LOAN AMOUNTS FOR EX- ‘‘(6)(A) There is established within the Of- employee of the United States. PORTERS. fice the position of Assistant United States (2) DETAIL OF SBA EMPLOYEES.—Any em- Section 7(a) of the Small Business Act (15 Trade Representative for Small Business, ployee of the Small Business Administration U.S.C. 636(a)) is amended— which shall be appointed by the United may be detailed to the Task Force without (1) in paragraph (3)— States Trade Representative. reimbursement, and such detail shall be (A) in subparagraph (A), by inserting be- ‘‘(B) The Assistant United States Trade without interruption or loss of civil service fore the semicolon at the end the following: Representative for Small Business shall— status or privilege. ‘‘and paragraph (14)’’; and (f) REPORT.—Not later than 1 year after the ‘‘(i) promote the trade interests of small (B) in subparagraph (B), by striking date of enactment of this Act, and annually businesses, including manufacturers; ‘‘$1,250,000’’ and inserting ‘‘$1,300,000’’; and thereafter, the Task Force shall submit a re- ‘‘(ii) identify and address foreign trade bar- (2) in paragraph (14), by adding at the end port containing the findings and rec- riers that impede small business exporters; the following: ommendations of the task force to— ‘‘(iii) enforce existing trade agreements ‘‘(D) The total amount of financings under (1) the President; beneficial to small businesses; this paragraph that are outstanding and (2) the Committee on Small Business and ‘‘(iv) maintain an open line of communica- committed (by participation or otherwise) to Entrepreneurship of the Senate; and tion with the Small Business Administration the borrower from the business loan and in- (3) the Committee on Small Business of the concerning small business trade issues; vestment fund established under this Act House of Representatives. ‘‘(v) ensure that small business concerns may not exceed $1,300,000 and the gross loan are considered in trade negotiations and SEC. 202. ENTREPRENEURIAL DEVELOPMENT amount under this paragraph may not ex- PROGRAMS AND SERVICES. agreements; and ceed $2,600,000.’’. (a) MANUFACTURING OUTREACH AND TRAIN- ‘‘(vi) perform such other duties as the SEC. 212. DEBENTURE SIZE. ING PROGRAMS.—The Office of Entrepre- United States Trade Representative may di- Section 502(2) of the Small Business Invest- neurial Development of the Small Business ment Act of 1958 (15 U.S.C. 696(2)) is amend- rect. Administration shall develop new outreach ‘‘(C) The Assistant United States Trade ed— and training programs for small manufactur- (1) by striking ‘‘$1,300,000’’ and inserting Representative for Small Business shall be ers and small businesses in the manufac- paid at the level of a member of the Senior ‘‘$2,000,000’’; and turing supply chain, in partnership with 1 or (2) by inserting before the period at the end Executive Service with equivalent time and more of the following: service.’’. the following: ‘‘, and loans for which the loan (1) The Manufacturing Extension Partner- proceeds will be directed toward manufac- TITLE II—SMALL BUSINESS ship. turing projects, which shall be limited to ADMINISTRATION (2) Community economic development or- $4,000,000 for each such identifiable small Subtitle A—Manufacturing and ganizations. business concern’’. (3) Small Business Development Centers. Entrepreneurial Development SEC. 213. JOB CREATION OR RETENTION STAND- (4) The Service Corps of Retired Execu- ARDS. SEC. 201. SMALL BUSINESS MANUFACTURING tives. TASK FORCE. Section 501 of the Small Business Invest- (5) Women’s Business Centers. (a) ESTABLISHMENT.—The Administrator of ment Act of 1958 (15 U.S.C. 695) is amended by (b) REPORTING REQUIREMENT.—The Small adding at the end the following: the Small Business Administration (referred Business Administration shall include ‘‘man- to in this subtitle as the ‘‘Administrator’’) ‘‘(e) JOB CREATION OR RETENTION FOR MAN- ufacturing’’ as a category on the scorecard UFACTURING PROJECTS.—A manufacturing shall establish a Small Business Manufac- that tracks the goals of the Small Business turing Task Force (referred to in this section project being funded by the debenture is Administration on its annual performance deemed to satisfy the job creation or reten- as the ‘‘Task Force’’) to address the concerns report to Congress. of small manufacturers. tion requirement under subsection (d)(1) if (c) MANUFACTURING WORKSHOPS.—The Of- the project creates or retains 1 job oppor- (b) MEMBERSHIP.— fice of Entrepreneurial Development of the (1) IN GENERAL.—The Task Force shall be tunity for every $100,000 guaranteed by the Small Business Administration, in consulta- Administration.’’. composed of a representative from— tion with manufacturing and economic de- SEC. 214. CLARIFICATION OF MAXIMUM SURETY (A) the Office of Capital Access; velopment organizations, shall develop (B) the Office of Entrepreneurial Develop- BOND GUARANTEE. workshops to be conducted by district of- Section 411(a)(1) of the Small Business In- ment; fices, in conjunction with the entities listed vestment Act of 1958 (15 U.S.C. 694b(a)(1)) is (C) the Office of Administration and Man- in paragraphs (1) through (5) of subsection amended by striking ‘‘contract up to’’ and agement; (a), addressing— inserting ‘‘total work order or contract (D) the Office of Government Contracting (1) product design and testing; amount at the time of bond execution that and Business Development; and (2) the patent process; does not exceed’’. (E) any other employee of the Small Busi- (3) prototype demonstrations; Subtitle C—International Trade ness Administration, on a temporary basis, (4) product production; as determined necessary by the Adminis- (5) market research; and SEC. 221. OFFICE OF INTERNATIONAL TRADE. trator to carry out the goals of the Task (6) business financing. Section 22 of the Small Business Act (15 Force. (d) SCORE.—The Service Corps of Retired U.S.C. 649) is amended— (2) CHAIR.—The Administrator shall assign Executives shall— (1) by striking ‘‘SEC. 22’’ and inserting the a member of the Task Force to serve as chair (1) make their counseling services avail- following: of the Task Force. able to small manufacturers and exporters ‘‘SEC. 22. OFFICE OF INTERNATIONAL TRADE.’’; (c) DUTIES.—The Task Force shall— through their on-line counseling services and (2) in subsection (a)— (1) evaluate and identify whether programs community-based offices; (A) by inserting ‘‘ESTABLISHMENT.—’’ after and services are sufficient to serve the needs (2) recruit counselors with manufacturing ‘‘(a)’’; and of small manufacturers; and international trade expertise; and (B) by inserting ‘‘(referred to in this sec- (2) ensure that the Small Business Admin- (3) develop additional partnerships with tion as the ‘Office’),’’ after ‘‘Trade’’; istration implements the small business manufacturing and exporting organizations. (3) in subsection (b)— manufacturing training programs estab- (e) ENTREPRENEURIAL DEVELOPMENT PRO- (A) by striking ‘‘The Office’’ and inserting lished under section 202; GRAM IMPROVEMENTS.—The Office of Entre- the following:

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‘‘(b) TRADE DISTRIBUTION NETWORK.—The ‘‘(1) designate at least 1 individual within President and Congress on matters of impor- Office, including United States Export As- the Administration as a trade financial spe- tance to manufacturers; (c) monitor, coordi- sistance Centers (referred to as ‘one-stop cialist to oversee the international loan pro- nate and promote the plans, programs and shops’ in section 2301(b)(8) of the Omnibus grams and assist Administration employees operations of the departments and agencies Trade and Competitiveness Act of 1988 (15 with trade finance issues; and of the Federal Government that may con- U.S.C. 4721(b)(8)) and as ‘Export Centers’ in ‘‘(2) work’’; tribute to the U.S. manufacturing industry’s this section),’’; and (6) in subsection (e), by inserting ‘‘TRADE growth; (d) develop and promote new public- (B) by amending paragraph (1) to read as REMEDIES.—’’ after ‘‘(e)’’; sector initiatives, policies, programs and follows: (7) by amending subsection (f) to read as plans designed to foster the manufacturing ‘‘(1) assist in maintaining a distribution follows: industry; (e) review, monitor and coordinate network using regional and local offices of ‘‘(f) REPORTING REQUIREMENT.—The Office plans and programs developed in the public the Administration, the Small Business De- shall submit an annual report to the Com- sector that affect manufacturers’ ability to velopment Center network, the Women’s mittee on Small Business and Entrepreneur- obtain capital, credit and access to tech- Business Center network, and Export Cen- ship of the Senate and the Committee on nology; and (f) design a comprehensive plan ters for— Small Business of the House of Representa- for a joint public-private sector effort to fa- ‘‘(A) trade promotion; tives that contains— cilitate the growth and development of the ‘‘(B) trade finance; ‘‘(1) a description of the progress of the Of- U.S. manufacturing industry, which shall be ‘‘(C) trade adjustment; fice in implementing the requirements under submitted, not later than 1 year after the ef- ‘‘(D) trade remedy assistance; and this section; fective date of the bill, to the President and ‘‘(E) trade data collection.’’; ‘‘(2) the destinations and benefits to the the Senate and House Small Business Com- (4) in subsection (c)— Administration and to small business con- mittees. This section also instructs the (A) by redesignating paragraphs (1) cerns of travel by Office staff; and IMTF to submit a report of its findings and through (8) as paragraphs (2) through (9); ‘‘(3) a description of the participation by recommendations to the President and the (B) by inserting before paragraph (2), as re- the Office in trade negotiations.’’; Senate and House Small Business Commit- designated, the following: (8) in subsection (g), by inserting ‘‘STUD- tees not later than 1 year after the effective ‘‘(1) establish annual goals within the Of- IES.—’’ after ‘‘(g)’’; and date of the bill and annually thereafter. fice relating to— (9) by adding at the end the following: ‘‘(A) enhancing the exporting ability of Section 103. Assistant United States Trade Rep- ‘‘(h) EXPORT ASSISTANCE CENTERS.— small business concerns and small manufac- resentative for Small Business. ‘‘(1) ADDITIONAL CENTERS.—The Adminis- This section establishes a new Assistant turers; tration, in accordance with the March 29, ‘‘(B) facilitating technology transfers; United States Trade Representative for 2002, agreement with the Department of ‘‘(C) enhancing programs and services to Small Business, within the Office of the Commerce and the Export-Import Bank, assist small business concerns and small United States Trade Representative (USTR). shall assign not less than 4 additional em- manufacturers to compete effectively and ef- This new position shall promote trade inter- ployees to Export Centers during each of the ficiently against foreign entities; est for small businesses and ensure that fiscal years 2004 through 2006. ‘‘(D) increasing the access to capital by their concerns are considered in trade nego- ‘‘(2) PLACEMENT.—The Administration small business concerns; tiations and agreements. shall use the resource allocation method- ‘‘(E) disseminating information concerning TITLE II—SMALL BUSINESS ADMINISTRATION ology, used by the Department of Commerce Federal, State, and private programs and ini- as of the date of enactment of this sub- SUBTITLE A—MANUFACTURING AND tiatives; ENTREPRENEURIAL DEVELOPMENT ‘‘(F) ensuring that the interests of small section, to strategically assign Administra- tion employees to all Export Centers based Section 201. The Small Business Manufacturing business concerns are adequately represented Task Force. in trade negotiations;’’; on the needs of exporters. This section establishes a Small Business (C) in paragraph (2), as redesignated, by ‘‘(3) GOALS.—The Office shall work with Manufacturing Task Force (SBMTF) within striking ‘‘mechanism for’’ and all that fol- the Department of Commerce and the Ex- the Small Business Administration (SBA), lows through ‘‘(D)’’ and inserting the fol- port-Import Bank to establish shared annual lowing: ‘‘mechanism for— goals for the Export Centers. which will be comprised of the SBA per- ‘‘(A) identifying subsectors of the small ‘‘(4) OVERSIGHT.—The Office shall designate sonnel appointed by the SBA Administrator. business community with strong export po- an individual within the Administration to The SBMTF will: (a) evaluate and identify tential; oversee all activities conducted by Adminis- whether existing programs and services are ‘‘(B) identifying areas of demand in foreign tration employees assigned to Export Cen- sufficient to serve small manufacturers’ markets; ters.’’. needs, or whether additional programs or ‘‘(C) prescreening foreign buyers for com- TITLE 1. MANUFACTURING AND TRADE services are necessary; (b) ensure that the mercial and credit purposes; and REPRESENTATIVES AND TASK FORCE SBA implements the small business manu- ‘‘(D)’’; and facturing training initiatives referenced in Section 101. Assistant Secretary of Commerce for this legislation; (c) actively promote the (D) in paragraph (9), as redesignated— Manufacturing. (i) by striking ‘‘full-time export develop- SBA’s programs and services that serve This section establishes an Assistant Sec- ment specialists to each Administration re- small manufacturers; and (d) identify and retary of Commerce for Manufacturing with- gional office and assigning’’; study the unique conditions of small manu- in the Department of Commerce. The Assist- (ii) by striking ‘‘office. Such specialists’’ facturers and develop and propose policy ini- ant Secretary shall be responsible for identi- and inserting ‘‘office and providing each Ad- tiatives to support and assist them. This sec- fying and addressing manufacturers’ con- ministration regional office with a full-time tion also instructs the SBMTF to submit a cerns and representing and advocating for export development specialist, who’’; report of its findings and recommendations their interests. A person shall be appointed (iii) in subparagraph (D), by striking ‘‘and’’ to the President and the Senate and House to this position by the President of the at the end; Small Business Committees not later than 12 United States, in accordance with the Con- (iv) in subparagraph (E), by striking the months after the effective date of the bill stitution, and shall serve at the discretion of period at the end and inserting a semicolon; and annually thereafter. the President of the United States. and Section 202. Entrepreneurial development pro- (v) by adding at the end the following: Section 102. The Interagency Manufacturing grams and services. ‘‘(F) participate jointly with employees of Task Force. This section: (a) directs the SBA to create the Office in an annual training program This provision establishes an Interagency new outreach and training programs for that focuses on current small business needs Manufacturing Task Force (IMTF). The small manufacturers and small businesses in for exporting; and IMTF will be chaired by the new Assistant the manufacturing supply chain by devel- ‘‘(G) jointly develop and conduct training Secretary of Commerce for Manufacturing oping partnerships with other manufacturing programs for exporters and lenders in co- and will be comprised of representatives of and business-assistance organizations and operation with the United States Export As- the Departments of Treasury, Defense, Edu- SBA’s resource partners; (b) directs the SBA sistance Centers, the Department of Com- cation, Energy, Health and Human Services, to include ‘‘manufacturing’’ on their score- merce, Small Business Development Centers, Homeland Security, and Labor, the Environ- card that tracks the goals of the SBA and to and other relevant Federal agencies.’’; mental Protection Agency, the Small Busi- report this information to Congress; (c) di- (5) in subsection (d)— ness Administration, the United States rects the SBA to consult with manufacturing (A) by inserting ‘‘EXPORT FINANCING PRO- Trade Representative, a representative of and economic development organizations to GRAMS.—’’ after ‘‘(d)’’; the Executive staff of the President and two develop and conduct specialized workshops (B) by redesignating paragraphs (1) additional members designated by the Presi- to address important aspects of the manufac- through (5) as subparagraphs (A) through (E); dent. turing business; (d) requires SCORE to ex- and Under the Chair’s direction, the IMTF pand and improve their present counseling (C) by striking ‘‘To accomplish this goal, shall: (a) identify and address regulations services for small manufacturers and export- the Office shall work’’ and inserting ‘‘To ac- that are needlessly burdensome on manufac- ers; (e) directs the SBA’s Office of Entrepre- complish this goal, the Office shall— turers; (b) provide advice and counsel to the neurial Development to develop programs

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00149 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16030 CONGRESSIONAL RECORD — SENATE November 25, 2003 and services to strengthen small business justification for the Office of International diverted as part of some scam to de- vendors and suppliers that participate in the Trade’s expenditures on travel and participa- fraud the Federal Government. manufacturing supply chain; (f) directs the tion in trade negotiations; and (e) requires That is why I am proud to introduce SBA to review and simplify its reporting re- that the SBA increase the number of SBA today the Fuel Fraud Prevention Act quirements for the Small Business Develop- representatives at the United States Export ment Centers, SCORE, and Women’s Busi- Assistance Centers (USEACs) over the next 3 of 2003. ness Centers; and (g) directs the SBA to pro- years according to the Commerce Depart- I am aware that this is a very con- vide adequate resources to the district of- ment’s resource allocation methodology and troversial subject, but one that we fices for outreach and training activities. to designate an individual within the SBA to must address. This fraud represents SUBTITLE B—SMALL BUSINESS LOAN PROGRAMS oversee the agency’s participation as well as money that the federal government is to work with the USEACs partners to estab- Section 211. Increased loan amounts for export- losing while crooked individuals are lish annual goals for the Export Centers. ers. getting rich on the backs of good hon- This section increases the maximum size of By Mr. GRASSLEY (for himself est citizens. a loan that an exporter may receive under and Mr. BAUCUS): Uncovering this kind of corruption is the SBA’s 7(a) Export Working Capital Pro- S. 1979. A bill to amend the Internal what we mean by practicing good gov- gram (EWCP) to $2.6 million (instead of the Revenue Code of 1986 to prevent the ernment. We need to catch these folks current maximum loan size of $2 million) by fraudulent avoidance of fuel taxes; to and make sure the money is going increasing the maximum SBA guarantee to where it should. $1.3 million (instead of the current maximum the Committee on Finance. SBA guarantee of $1 million). In order to Mr. GRASSLEY. Mr. President, This is money that goes to transpor- conform the size of the guaranteed portion of today we introduce a bill to fight tax tation projects and creates transpor- an EWCP loan to that of a loan under the fraud. I am not talking about just mov- tation jobs. That is important to Mon- SBA’s 7(a) International Trade Loan Pro- ing around a few numbers on a tax re- tana and to all states. gram, the section also increases the max- turn. Today we will begin closing the As a result of both TEA 21 and AIR imum SBA-guaranteed portion of an ITL loop holes that have created millions 21, revenues collected by the Trust Program loan from $1.25 million to $1.3 mil- of gallon and billions of dollars of miss- Funds are directly tied to spending on lion. ing fuel and missing tax dollars. This surface and air transportation. There- Section 212. Debenture size. problem not only robs the U.S. Treas- fore adequately funding the nation’s This section increases the maximum loan ury it also robs the American Tax- transportation infrastructure—both guarantee amount from $1.3 million to $2 surface and air—is almost entirely million for loans that support a public policy payer. goal, which includes loans to exporters. The We rely on these tax dollars to fund based on actually collecting all the guaranteed amount of $2 million represents not only the Highway Trust Fund, taxes that should be collected by law. 40 percent of the total loan size, so small which is charged with constructing and businesses will be able to receive loans of up maintaining our national transpor- By Mr. ALLARD (for himself, Mr. to $5 million for these types of projects. This tation system, this also robs money BROWNBACK, Mr. SESSIONS, Mr. section also increases the maximum size of from our Airport Trust Fund. BUNNING, and Mr. INHOFE): the SBA’s guarantee from $1 million to $4 In light of investigations completed S.J. Res. 26. A joint resolution pro- million for loans that will be used for manu- since September 11th, the safety and posing an amendment to the Constitu- facturing projects (leading to a maximum soundness of maintaining our nation’s tion of the United States relating to loan size of $10 million for small manufactur- marriage; to the Committee on the Ju- ers, because the guarantee represents 40 per- transportation infrastructure is now cent of the maximum loan size). more than ever of the utmost impor- diciary. Section 213. Job creation or retention standards. tance. These issues are not just tax Mr. ALLARD. Mr. President, I rise today to submit legislation that would This section modifies the job retention or fraud—not only are we concerned with creation standard for small manufacturers the tax loss, but where else is this amend the United States Constitution (currently one job per $35,000 guaranteed by money going—is it being used to fund identifying and reaffirming the institu- the SBA) so that the small manufacturers terrorism? We need to know where all tion of marriage as a union between a must create or retain one job for each of this fuel is going. What makes us man and a woman. The language I sub- $100,000 guaranteed by the SBA. think that if we cannot find the fuel to mit today is brief and simple: Section 214. Clarification of maximum surety collect the tax, that we could find the Marriage in the United States shall bond guarantee. fuel to stop the terrorists acts. A miss- consist only of the union of a man and This section clarifies that the SBA may ing barge could hold ninety tanker a woman. Neither this Constitution, guarantee surety bonds for specific contracts truck loads of fuel, that’s about $500,000 nor the Constitution of any State, nor of $2 million or less when the total range of in Federal and State excise taxes left State or Federal law, shall be con- affiliated contracts exceeds $2 million, or has strued to require that marital status or the potential to exceed $2 million. The sure- uncollected, its also hundreds of thou- ty’s bond liability, however, may not exceed sands of gallons that we cannot ac- the legal incidents thereof be conferred $2 million. count. That cannot happen, and this upon unmarried couples or groups. SUBTITLE C—INTERNATIONAL TRADE bill should help our enforcement offi- This language is simple, direct and to Section 221. Office of International Trade. cers close the loop holes and collect the the point. This union is sacred and This section: (a) establishes annual goals tax that builds our highways. must remain so. for the Office of International Trade—spe- Mr. BAUCUS. Mr. President, today This resolution is a starting point for cifically, to enhance the export ability of Senator GRASSLEY and I introduce a a more comprehensive discussion. I small businesses and small manufacturers, bill that is the essence of good govern- look forward to having an involved, in- to facilitate technological transfers, to en- ment. For a few years now the Senate formed debate with the other members hance the ability of small business and small Finance Committee has been working of this chamber. manufacturers to compete against foreign to increase the revenue into the High- I am pleased to be joined in this ef- corporations, to increase small businesses’ way Fund Trust so we can fund a fort by my colleagues Senator SAM access to capital, to disseminate information BROWNBACK and Senator JEFF SESSIONS on programs and initiatives, and to ensure strong national highway program. that small businesses are represented in The committee has also been looking who are original cosponsors of this trade negotiations; (b) instructs the Office of at preventing several schemes, scams Resolution. International Trade and district office ex- and cons against the federal govern- I ask unanimous consent that the port development specialist to participate in ment. These are schemes that are used text of this Resolution be printed in an annual training program that focuses on by participants in the fuel distribution the RECORD. current small business needs for exporting; chain to evade federal and state fuel There being no objection, the joint (c) instructs the district offices to jointly de- taxes, fuel fraud prevention marries resolution was ordered to be printed in velop and conduct training programs for ex- both those goals-fighting fraud and in- the RECORD, as follows: porters and lenders in cooperation with USEACs, the Department of Commerce, creasing revenue into the Highway S.J. RES. 26 Small Business Development Centers and Trust Fund. Resolved by the Senate and House of Rep- other relevant Federal agencies; (d) amends It is crucial to ensure that all the resentatives of the United States of America in the Office of International Trade’s reporting taxes that are due to the Trust Fund Congress assembled (two-thirds of each House requirements to include a description and are actually getting there, not being concurring therein), That the following article

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00150 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16031 is proposed as an amendment to the Con- tribe, shall be required to give effect to any SENATE RESOLUTION 277—TEN- stitution of the United States, which shall be public act, record, or judicial proceeding of DERING THE SINCERE THANKS valid to all intents and purposes as part of any other State, territory, possession, or OF THE SENATE TO THE STAFFS the Constitution when ratified by the legis- tribe respecting a relationship between per- OF THE OFFICES OF THE LEGIS- latures of three-fourths of the several States sons of the same sex that is treated as a mar- within seven years after the date of its sub- riage under the laws of such State, territory, LATIVE COUNSEL OF THE SEN- mission by the Congress: possession, or tribe, or a right or claim aris- ATE AND THE HOUSE OF REP- RESENTATIVES FOR THEIR DEDI- ‘‘ARTICLE — ing from such relationship. CATION AND SERVICE TO THE ‘‘Marriage in the United States shall con- f sist only of the union of a man and a woman. LEGISLATIVE PROCESS Mr. FRIST (for himself, Mr. GRASS- Neither this Constitution, nor the Constitu- SENATE RESOLUTION 276—EX- tion of any State, nor State or Federal law, LEY, Mr. HATCH, Mr. BREAUX, Mr. BAU- PRESSING THE SENSE OF THE shall be construed to require that marital CUS, and Mr. NICKLES) submitted the status or the legal incidents thereof be con- SENATE REGARDING FIGHTING following resolution; which was consid- ferred upon unmarried couples or groups.’’. TERROR AND EMBRACING EF- ered and agreed to: FORTS TO ACHIEVE ISRAELI- f S. RES. 277 PALESTINIAN PEACE SUBMITTED RESOLUTIONS Whereas the Offices of the Legislative Mrs. FEINSTEIN (for herself, Mr. Counsel of the Senate and the House of Rep- CHAFEE, Mr. NELSON of Florida, Mr. resentatives have demonstrated great exper- SENATE RESOLUTION 275—TO AF- LEAHY, and Mr. LAUTENBERG) sub- tise, dedication, professionalism, and integ- FIRM THE DEFENSE OF MAR- mitted the following resolution; which rity in faithfully discharging the duties and RIAGE ACT was referred to the Committee on For- responsibilities of their positions; Whereas legislative drafting is a lengthy, Mr. NICKLES (for himself, Mr. eign Relations: arduous, and demanding process requiring a BROWNBACK, Mr. SESSIONS, Mr. BUN- S. RES. 276 keen intellect, thorough knowledge, stern NING, Mr. CORNYN, Mr. SANTORUM, and Whereas ending the violence and terror constitution, and remarkable patience; Mr. ALLARD) submitted the following that have devastated Israel, the West Bank, Whereas the staff of the Senate and House resolution; which was referred to the and Gaza since September 2000 is in the vital Offices of the Legislative Counsel, in par- ticular, Ruth Ann Ernst, John Goetcheus, Committee on the Judiciary: interests of the United States, Israel, and the Palestinians; Peter Goodloe, Edward G. Grossman, Pierre S. RES. 275 Whereas ongoing Israeli-Palestinian con- Poisson, and James G. Scott, have performed Whereas, marriage is a fundamental social flict strengthens extremists and opponents above and beyond the call of duty in drafting institution that has been tested and re- of peace throughout the region, including the Medicare Prescription Drug, Improve- affirmed over thousands of years; those who seek to undermine efforts by the ment, and Modernization Act of 2003; and Whereas, historically marriage has been United States to stabilize Iraq and those who Whereas the Senate and House Offices of reflected in our law and the law of all juris- want to see conflict spread to other nations the Legislative Counsel have met the legisla- dictions in the United States as the union of in the region; tive drafting needs of the Senate and the a man and a woman, and the everyday mean- Whereas more than 3 years of violence, ter- House of Representatives with unfailing pro- ing of marriage and the legal meaning of ror, and escalating military engagement fessionalism, exceptional skill, undying dedi- marriage has always been defined as the have demonstrated that military means cation, and, above all, patience and good legal union of a man and a woman as hus- alone will not solve the Israeli-Palestinian humor as the Medicare Prescription Drug, band and wife; conflict; Improvement, and Modernization Act of 2003 Whereas, families consisting of the legal Whereas despite mutual mistrust, anger, passed through the legislative process: Now, union of one man and one woman for the and pain, courageous and credible Israelis therefore, be it purpose of bearing and raising children re- and Palestinians have come together in a Resolved, That the sincere thanks of the mains the basic unit of our civil society; private capacity to develop serious model Senate are hereby tendered to the staff of Whereas, in Goodridge v. Department of peace initiatives, like the People’s Voice Ini- both the Office of the Legislative Counsel of Public Health, the Supreme Judicial Court of tiative, One Voice, and the Geneva Accord; the Senate and the Office of the Legislative Massachusetts ruled 4 to 3 that the Constitu- Whereas those initiatives, and other simi- Counsel of the House of Representatives for tion of the State of Massachusetts prohibits lar private efforts, are founded on the deter- their outstanding work and dedication to the the denial of the issuance of marriage li- mination of Israelis and Palestinians to put United States Congress and the people of the censes to same-sex couples; an end to decades of confrontation and con- United States of America. Whereas, the power to regulate marriage flict and to live in peaceful coexistence, mu- f lies with the legislature and not with the ju- tual dignity, and security, based on a just, SENATE RESOLUTION 278—EX- diciary and the Constitution of the State lasting, and comprehensive peace and Massachusetts specifically states that the achieving historic reconciliation; PRESSING THE SENSE OF THE judiciary ‘‘shall never exercise the legisla- Whereas those initiatives demonstrate SENATE REGARDING THE AN- tive and executive powers, or either of them: that both Israelis and Palestinians have a THRAX AND SMALLPOX VAC- to the end it may be a government of laws partner for peace, that both peoples want to CINES and not of men’’; and end the current vicious stalemate, and that Mr. BINGAMAN submitted the fol- Whereas, in 1996, Congress overwhelmingly both peoples are prepared to make necessary lowing resolution; which was referred passed, and President Bill Clinton signed, compromises in order to achieve peace; the Defense of Marriage Act under which Whereas each of the private initiatives ad- to the Committee on Armed Services: Congress exercised its rights under the ef- dresses the fundamental requirements of S. RES. 278 fects clause of section 1 of Article IV of the both peoples, including preservation of the Whereas military personnel are asked to United States Constitution: Now, therefore, Jewish, democratic nature of Israel with se- risk and even sacrifice their lives and the be it cure and defensible borders and the creation well-being of their families in defense of the Resolved, That it is the Sense of the Sen- of a viable Palestinian state; and United States; ate— Whereas such peace initiatives dem- Whereas vaccines are an important factor (1) Congress should take whatever steps onstrate that there are solutions to the con- in ensuring force health protection by pro- necessary to affirm the fact that marriage in flict and present precious opportunities to tecting the military personnel of the United the United States shall consist only of the end the violence and restart fruitful peace States from both natural health threats and union of one man and one woman; negotiations: Now, therefore, be it health threats resulting from biological (2)(A) same-sex marriage is not a right, Resolved, That the Senate— weapons in overseas conflicts; fundamental or otherwise, recognized in this (1) applauds the courage and vision of Whereas vaccines offer significant benefits country; and Israelis and Palestinians who are working and protections that must be carefully bal- (B) neither the United States Constitution together to conceive pragmatic, serious anced with the reality that vaccines and nor any Federal law shall be construed to re- plans for achieving peace; drugs generally carry rare but serious ad- quire that marital status or legal incidents (2) calls on Israeli and Palestinian leaders verse events and life-threatening risks; thereof be conferred upon unmarried couples to capitalize on the opportunity offered by Whereas in 2002, the insert label for the an- or groups; and these peace initiatives; and thrax vaccine required by the Food and Drug (3) the Defense of Marriage Act is a proper (3) urges the President of the United States Administration was revised to include ap- and constitutional exercise of Congress’s to encourage and embrace all serious efforts proximately 40 serious adverse events with powers under the effects clause of section 1 to move away from violent military stale- information that ‘‘approximately 6 percent of Article IV and that no State, territory, or mate toward achieving Israeli-Palestinian of the reported events were listed as seri- possession of the United States, or Indian peace. ous.’’;

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00151 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16032 CONGRESSIONAL RECORD — SENATE November 25, 2003 Whereas in 2002, the Food and Drug Admin- (4) the Secretary of Veterans Affairs of our military personnel and our vet- istration also compelled the manufacturer of should assess those adverse events being re- erans is in question and should be ad- the anthrax vaccine to substantially revise ported with respect to the anthrax and dressed. the package insert and changed the risk to smallpox vaccines, research causal relation- Ensuring the health and well-being of pregnant women from Category C (a possible ships, and estimate a future cost to the De- risk) to Category D (a known risk) because partment to treat these conditions. our military personnel before, during and after serving our country should of ‘‘positive evidence of human fetal risk Mr. BINGAMAN. Mr. President, based on adverse reaction data from inves- always be a top priority of our nation. tigational or marketing experience or stud- throughout the conflict in Iraq, our The major potential benefit of any ies in humans’’; brave soldiers have carried out their vaccine would be force protection. Un- Whereas in 2002, the General Accounting duties with strength, with honor, and fortunately, there are major questions Office reported ‘‘an estimated 84 percent of with courage. They have never faltered that arise with this argument con- the personnel who had had anthrax vaccine in their service to this nation or the cerning the anthrax and smallpox vac- shots between September 1998 and September world. That is why I am so troubled cines. First, even if there was a threat, 2000 reported having side effects or reactions. that some of our servicemembers and This rate is more than double the level cited such a threat against our troops in the in the vaccine product insert. Further, about their families believe that current De- conflicts in Iraq and Afghanistan has 24 percent of all events were classified as sys- partment of Defense policies may be been significantly diminished. Second, temic—a level more than a hundred times failing them, with grievous con- there are other mechanisms to address higher than that estimated in the product sequences. any potential exposure, including post- insert at the time’’; That is why I rise today to submit a exposure vaccination and antibiotics. Whereas in June 2003, the Advisory Com- Sense of the Senate Resolution that This was the effective treatment used mittee on Immunization Practices of the asks for reconsideration of the policies Centers for Disease Control and Prevention in the Senate after the anthrax expo- withdrew its support for expanding the surrounding the current smallpox and sure in 2001. Third, we do not even smallpox vaccination program for first-re- anthrax immunization programs. Spe- know if the anthrax vaccine works at sponders after finding that 1 in 500 civilians cifically it asks the Secretary of De- all on inhalation anthrax or vaccinated for smallpox had a serious vac- fense to reconsider the mandatory na- weaponized anthrax, so the vaccine cine event; ture of its smallpox and anthrax vac- may be completely ineffective anyway. Whereas in 2002, the General Accounting cine immunization programs pending For our brave men and women serv- Office found that 69 percent of experienced the development of new and better vac- ing in harm’s way, all too often the pilots and aircrew members in the National cines that are currently under develop- Guard and the Reserve reported that the an- first threat they face is not when their thrax shot was the major influence in their ment; reconsider adverse actions taken boots hit the ground in Baghdad, Iraq, decision to change their military status in against servicemembers on the basis of or Kandahar, Afghanistan—the first 2000, including leaving the military entirely; refusal to take the smallpox or anthrax threat many servicemembers believe Whereas in the war in Iraq that continues vaccines; and reevaluate, with the in- they face may be in line at the home as of the date of enactment of this resolu- telligence community, the current station when they receive their an- tion, the British and Australian militaries threat of anthrax and smallpox attacks thrax and smallpox vaccinations. have conducted voluntary anthrax vaccine on our troops, in an effort to reflect programs, and other allies who have been of- There is a growing number of dis- fered the anthrax vaccine have declined; current operational realities when con- turbing reports about how some of our Whereas in March 2000, the National Insti- sidering the continuation of a manda- servicemembers have contracted tute of Allergy and Infectious Disease re- tory vaccination program. health problems shortly after receiving ported in the ‘‘Jordan Report 20th Anniver- It also urges the Department of Vet- the anthrax and smallpox vaccines. sary: Accelerated Development of Vaccines erans Affairs to assess these adverse These illnesses include mysterious 2000’’ that no data existed to support the ef- events being reported with respect to pneumonia-like illnesses, heart prob- fectiveness of the anthrax vaccine against the smallpox and anthrax vaccines, re- pulmonary (inhalation) anthrax in humans; lems, blood clots, and other medical Whereas because anthrax can be prevented search causal relationships, and esti- conditions that have stricken other- and treated with antibiotics and other op- mate a future cost to the Department wise young, healthy, and strong mili- tions are either in clinical trials or develop- of Veterans Affairs to treat these con- tary personnel. It has even resulted in ment, the current anthrax vaccine is not the ditions. death. only choice for force health protection; Vaccines are an important factor in This is not entirely surprising, in Whereas in the 2002 State of the Union ad- ensuring protection of our nation’s light of the fact that the Food and dress, President Bush placed a national pri- military personnel from health Drug Administration, or FDA, has ority on developing a new anthrax vaccine threats—both natural or from biologi- and a newer and safer smallpox vaccine is identified a number of adverse reac- also in development; and cal weapons—in overseas conflicts. tions associated with these two vac- Whereas the threat of anthrax and small- However, the current smallpox and an- cines. With respect to the anthrax vac- pox attacks against the deployed troops of thrax vaccines have real and serious cine alone, in 2002 the FDA required the United States has significantly dimin- consequences that must be weighed the anthrax vaccine product label be ished since the overthrow of Saddam Hussein against the potential benefits. This is revised and it now includes approxi- and the disruption of Al Qaeda activity in why the President has made develop- mately 40 serious adverse events. As it Afghanistan: Now, therefore, be it ment of a modern anthrax vaccine a Resolved, That it is the sense of the Senate reads, ‘‘Approximately 6% of the re- that— national priority in his last two State ported events were listed as serious. (1) the Secretary of Defense should recon- of the Union addresses and why the In- Serious adverse events include those sider the mandatory nature of the anthrax stitute of Medicine urged the govern- that result in death, hospitalization, and smallpox vaccine immunization pro- ment to do so in March 2002. permanent disability or are life-threat- gram, pending the development of new and What are the consequences of a pol- ening.’’ The FDA also raised the rate of better vaccines that are under development icy that makes it mandatory that mili- systemic reactions by up to 175 times as of the date of enactment of this resolu- tary personnel get the anthrax and over the previous 1999 product label, tion; smallpox vaccines? First, there are a (2) the Secretary of Defense and Board for from 0.2 percent to 5–35 percent Correction of Military Records should recon- growing number of adverse events re- Meanwhile, in light of adverse events sider adverse actions already taken or in- ported in conjunction with these two that exceed those for other vaccines tended to be taken against servicemembers vaccines, which is in sharp contrast to and other concerns about the smallpox for refusing to accept the anthrax or small- other vaccines. Second, there is a mo- vaccine, both the Institute of Medicine pox vaccine; rale problem in the military associated and the Advisory Committee on Immu- (3) the Secretary of Defense and the intel- with the mandatory nature of requir- nization Practices recently issued rec- ligence community should reevaluate the ing military personnel to take these ommendations calling for a pause in threat of anthrax and smallpox attacks on shots that has a serious negative im- troops in Iraq and Afghanistan to reflect the Federal Government’s smallpox operational realities as of the date of enact- pact on the recruitment and retention vaccination program. ment of this resolution when considering the of our military personnel. Third, the Meanwhile, both CBS News and UPI continuation of a mandatory military vac- long-term consequences of the vaccine have identified a growing number of cination program; and programs for the health and well-being deaths and severe illnesses that they

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00152 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16033 claim point to the anthrax and small- ‘‘post-vaccine’’ problems on the death There is also the case of Air Force pox vaccines. These include the deaths certificate for Rachel Lacy and said, Captain John Buck, M.D. He was court- of Army SP4 Joshua Neusche, Army ‘‘it’s just very suspicious in my mind martialed for refusing the anthrax vac- SGT Michael Tosto, LTC Anthony . . . that she’s healthy, gets the vac- cine in a trial in which the judge re- Sherman, Army SP4 Rachel Lacy, cinations and then dies a couple weeks fused to allow the jury to hear the doc- Army SP4 Zeferino Colunga, Army SP4 later.’’ tor’s views on its safety and efficacy. Cory Hubbell, Army SP4 Levi Kinchen, The Army is, according to published After he was convicted, fined $21,000, Army SSG Richard Eaton, Jr., Army reports, conducting an investigation of and denied a promotion he had earned, PVT Matthew Bush, Army SSG David the 100 or more soldiers that have got- Dr. Buck deployed to the Indian Ocean Loyd, and Army SP4 William Jeffries. ten pneumonia in Iraq and south- after September 11th to support U.S. Eight of these 11 Army personnel were western Asia. Of those 100, 2 have died military operations in Afghanistan. He under the age of 25. and another 13 have had to be put on was awarded a medal for his service in As Dr. Jeffrey Sartin, and infectious respirators. support of Operation Enduring Free- disease doctor at the Gundersen Clinic According to a story published in dom and subsequently given an honor- both the New York Times and Wash- in La Crosse, WI, said, ‘‘I would say able discharge. that the number of cases among young ington Post on November 19, 2003, as In fact, the military has court- healthy troops would seem to be un- part of that investigation, the Advi- martialed soldiers throughout the mili- usual.’’ sory Committee on Immunization tary for refusing the anthrax vaccine, Practices and the Armed Services Epi- The numbers of those with adverse including a case this spring in New demiology Board said the evidence health events is significantly higher. York of Private Rhonda Hazley who re- ‘‘strongly favors’’ the belief that vac- There have been around 700 adverse fused the vaccine because she was cines led to the death of Rachel Lacy. events reported in just the first 6 breast-feeding her child. One of the It was an important admission and yet months of this year and this is as part things this resolution asks is for the the military immediately said its vac- of a reporting system that has been cination policies would ‘‘not be Department of Defense to reconsider found to significantly under-report ad- changed.’’ adverse actions taken against verse events. Rachel’s father, Moses Lacy, has servicemembers on the basis of refusal In addition, there are the reports of asked, ‘‘Let’s stop this, re-evaluate to take the smallpox or anthrax vac- problems at both Ft. Stewart and Ft. what we’re doing, re-evaluate the cines. The court-martialing of a woman Knox with respect to sick and injured risks.’’ That is a reasonable request that refused these vaccines because she soldiers who have been waiting weeks and our nation’s servicemembers and was breast-feeding is particularly dis- and sometimes months for medical families deserve it. We owe it to the turbing. treatment. Senators LEAHY and BOND Lacy family and to all our military It is important to note that the FDA should be commended for drawing at- personnel and their families. revised the product label for the an- tention to those problems and getting As a result of the concerns of thrax vaccine from ‘‘a possible risk’’ to the military to move to address it. servicemembers and their families that a ‘‘known risk’’ to pregnant women be- What remains disturbing is that many these vaccines are having on their cause of ‘‘positive evidence of human of those who are ill and on ‘‘medical health and well-being, it must also be fetal risk based on adverse reaction hold’’ were never deployed. At Ft. noted that the anthrax and smallpox data from investigational or marketing Stewart, Senators BOND and LEAHY vaccines are having serious con- experience or studies in humans.’’ found that one-third of the 650 soldiers sequences for our nation’s military While Private Hazley was no longer awaiting medical care and follow-up readiness. In September 2002, the Gen- pregnant, the FDA does believe the evaluations were not physically quali- eral Accounting Office reported that 69 ‘‘pregnancy and lactation are a clinical fied for deployment and therefore percent of trained and experienced pi- continuum.’’ Once again, the risks of never deployed overseas. lots and aircrew members in the Guard the vaccine would appear to far out- At Ft. Knox, according to a UPI and Reserve reported that the anthrax weigh the benefit to a mother and me- story, 369 of the 422 soldiers at Ft. shot was the major influence in their chanic in the Army. Knox did not deploy to Operation Iraqi decision to change their military sta- The DOD’s actions in such cases have Freedom because of their illnesses. tus in 2002, including leaving the mili- created a climate of distrust and fear This includes, according to the story, tary entirely. within the ranks of the military. This ‘‘strange clusters of heart problems Responding to the serious recruit- comply or be discharged or prosecuted and breathing problems, as did soldiers ment and retention problems caused by policy is of great concern to our brave at Ft. Stewart and other locations.’’ the mandatory anthrax vaccine policy, young men and women in uniform, and These are health problems that are in February 2000, my colleague and in the case of Private Hazley, to her often cited as adverse events accom- then Presidential candidate JOHN child. Again, due to this policy, many panying the anthrax and smallpox vac- MCCAIN called for a moratorium of this soldiers, sailors, airmen and marines to cines. Once again, there is a surprising policy. Unfortunately, the safety con- reevaluate their commitment to the number of such cases in what are oth- cerns Senator MCCAIN noted then have military. erwise a strong, healthy, and young not been resolved. The military con- The military has argued that we need group of people. tinues to deny problems with the vac- a mandatory program with respect to We certainly do not know whether cine while simultaneously operating a our nation’s military personnel as part these cases have been caused by the an- clinic at Walter Reed Army Medical of ensuring force protection. However, thrax or smallpox vaccines at this Center to treat the illnesses caused by I understand that our allies—both the point. In fact, these personnel des- the vaccine. British and Australians—have not perately await any medical treatment Instead of reconsidering its policy, made the anthrax vaccines mandatory and that must be addressed. While the the DOD has, instead, aggressively in the Iraqi Freedom Operation. As military works to address that prob- moved against those who have refused those two nations weighed the poten- lem, they should also reconsider the the vaccines. After his testimony be- tial consequences of requiring all mili- mandatory nature of the anthrax and fore the House Government Reform tary personnel to get the vaccines smallpox vaccines, as they may be con- Committee, Major Sonnie Bates, the versus any potential benefit, they came tributing heavily to the problem. highest ranking officer to refuse the down on the side of making the vaccine In the case of Army SP4 Rachel anthrax vaccination, was charged voluntary. Lacy, who loved her country and vol- under article 15 of the Uniform Code of In the case of the British military, unteered to deploy to the Persian Gulf, Military Justice and the Department of more than half the armed forces per- she was ordered to take the anthrax Defense moved to court-martial him. sonnel deployed in the Gulf have re- vaccine and did so without objection. After accusations of reprisal came fused to be vaccinated against anthrax. Within days, she started to suffer pneu- from the Congress, the Department of The British Ministry of Defense monia and flu-like symptoms. Within Defense backed down and discharged spokesman said that this policy would weeks, she was dead. The coroner listed Major Bates. remain voluntary ‘‘in accordance with

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00153 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16034 CONGRESSIONAL RECORD — SENATE November 25, 2003 long-standing medical practice.’’ Of in- self when he acknowledged on October postdeployment health issues, and terest, British army units that would 25, 2001—in the midst of the anthrax at- these organizations continue to sup- be responsible for dealing with suspect tacks—that he was not taking the an- port the national center concept.’’ We chemical and biological sites are given thrax vaccine. owe this to our nation’s the smallpox vaccine but still are not When the President was running for servicemembers and veterans and I required to get the anthrax vaccine. our Nation’s highest office, he said look forward to working with them For those that have agreed to accept with respect to questions posed to him over the coming months in the develop- the anthrax vaccine among British in the September 2000 issue of U.S. ment of that long-needed legislation. troops, they are reporting a large num- Medicine, ‘‘The Defense Department’s f ber of adverse events. According to a Anthrax Immunization Program has SENATE CONCURRENT RESOLU- report by the British National Gulf raised numerous health concerns and TION 86—CONGRATULATING THE Veterans and Families’ Association, caused fear among the individuals PEOPLE AND GOVERNMENT OF they anticipate adverse reaction whose lives it touches. I don’t feel the THE REPUBLIC OF KAZAKHSTAN among ‘‘at least 6,000 new cases as a re- current administration’s anthrax im- ON THE TWELFTH ANNIVERSARY sult of the Iraq conflict—about 30 per- munization program has taken into ac- OF THE INDEPENDENCE OF cent of the 22,000 troops who had the count the effect of this program on the KAZAKHSTAN AND PRAISING anthrax vaccination.’’ soldiers in our military and their fami- THE LONGSTANDING AND GROW- In addition to the policy of our allies lies. Under my administration, soldiers ING FRIENDSHIP BETWEEN THE that military personnel should be able and their families will be taken into UNITED STATES AND to make their own decisions regarding consideration.’’ KAZAKHSTAN the anthrax vaccine, another reason Some of our nation’s servicemembers they have made the vaccine voluntary and their families believe that the cur- Ms. LANDRIEU (for herself and Mr. is that we do not even know whether rent policy of this Administration does BURNS) submitted the following con- the anthrax vaccine is effective against not adequately take soldiers and their current resolution; which was referred inhalation or weaponized anthrax. families into consideration. They be- to the Committee on Foreign Rela- Furthermore, even if we had truly lieve we are, in fact, failing to ensure tions: thought there was strong evidence that Whereas, on December 16, 2003, the people the health and well-being of our mili- of the Republic of Kazakhstan will celebrate the Iraqi government had and was pre- tary personnel and we must do better. 12 years of independence, and on December paring to use biological weapons such Before closing, I would like to par- 25, 2003, the United States and Kazakhstan as anthrax against the United States ticularly note the long-standing work will mark the 12th anniversary of diplomatic military, the report by Weapons In- by Congressman CHRISTOPHER SHAYS relations between the two countries; spector David Kay in September indi- on this issue. In a report issued by the Whereas Kazakhstan in a short period of cates that threat has been found to be House Committee on Government Re- time has managed to shed totalitarian lacking or non-existent. There appears form in April 2000, the report states, shackles and become a dynamically devel- oping civil society in which public and pri- to be little evidence available that Al ‘‘many members of the armed services vate institutions are strong, effective demo- Qaeda or Saddam have the capability do not share that faith [that the DOD cratic mechanisms and the rule of law are es- to deliver anthrax or smallpox against places in the anthrax vaccine]. They do tablished, and basic human rights are re- our troops in Iraq or Afghanistan. Even not believe merely suggestive evidence spected; if there was such a threat, it is likely of vaccine efficacy outweighs their Whereas Kazakhstan, an open country extremely small at this point. Again, if concerns over the lack of evidence of where citizens of more than 100 ethnic nothing else, this change in the threat long term vaccine safety. Nor do they groups enjoy equal rights and opportunities, made a significant contribution to pro- to our troops requires an immediate re- trust DOD has learned the lessons of moting global peace and harmony by hosting evaluation of DOD vaccination policy. part military medical mistakes: atom- in September 2003 the Congress of the World Even if you still think there is some ic testing, Agent Orange, Persian Gulf and Traditional Religions, which brought to- potential benefit of these vaccinations, war drugs, and vaccines. Heavy handed, gether leaders of world religions seeking to it must be further weighed against one-sided informational materials only bridge religious differences; whether there is another mechanism fuel suspicions the program under- Whereas the Government of Kazakhstan available that would have the same ef- states adverse reaction risks in order has toughened legislation and taken other fect. We in the Senate, for example, concrete steps to prevent human trafficking to magnify the relative, admittedly and end this cruel form of human mistreat- know very well that the treatment of marginal, benefits of the vaccine.’’ ment; anthrax exposure via antibiotics works Many of the findings by Congressman Whereas Kazakhstan is confidently moving very well. The Senate was faced with SHAYS, such as the concerns by mili- toward integration with the world economic the choice of having those exposed un- tary servicemembers are even more system by establishing the conditions for de- dergo a course of antibiotics versus valid today with the introduction of veloping a true market economy; getting the anthrax vaccine and the the smallpox vaccine to the list of vac- Whereas the United States Government, vast majority of those exposed to an- cines required by the military. recognizing the economic progress of thrax choose to take the antibiotic Consequently, I urge the passage of Kazakhstan, granted to Kazakhstan ‘‘market economy status’’, the first such designation treatment rather than volunteer to this Sense of the Senate urging the De- of any country in the Commonwealth of take the anthrax vaccine. partment of Defense to reconsider the Independent States; In fact, the current Majority Leader, mandatory nature of its smallpox and Whereas United States businesses actively Senator FRIST, said at the time the an- anthrax vaccination programs and to participate in the development of one of the thrax vaccine was offered to Senate minimize the use of these vaccines world’s largest energy resources in employees potentially exposed to an- pending the current development of Kazakhstan and consider the country to be thrax, ‘‘I do not recommend widespread new and better vaccines. an alternative and reliable source of energy; inoculation for people with the vaccine I also plan to introduce legislation Whereas the application to Kazakhstan of early next year, as the Institute of chapter 1 of title IV of the Trade Act of 1974 in the Hart Building. There are too (commonly referred to as the ‘‘Jackson- many side effects and if there is lim- Medicine recommended back in 1999, to Vanik amendment’’) prevents Kazakhstan ited chance of exposure the side effects establish a National Center for Mili- from achieving permanent normal trade re- would far outweigh any potential ad- tary Deployment Health Research. Our lations status with the United States; vantage.’’ nation’s servicemembers deserve our Whereas an independent and democratic Again, in weighing the potential ben- best efforts to assure their health and Kazakhstan is the cornerstone of peace, sta- efit of the vaccine versus the option of well-being. As the IOM said in making bility, and prosperity in the vitally impor- antibiotics, the vast majority decided the recommendation to establish a Na- tant region of Central Asia; in support of the latter option. Our tional Center for Military Deployment Whereas Kazakhstan voluntarily disarmed its nuclear arsenal, the world’s fourth larg- military personnel certainly deserve Health Research, ‘‘Veterans’ organiza- est, and joined the Treaty on Reduction and the option that many Senate personnel tions were instrumental in developing Limitation of Strategic Offensive Arms, with chose for themselves and what it seems the idea for a national center for the Annexes, Protocols, and Memorandum of Un- the Secretary of Defense chose for him- study of war-related illness and derstanding, signed at Moscow on July 31,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00154 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16035 1991 (START Treaty), and in so doing pro- Dams Act of 1978; which was ordered to lie on Majority Leader or his designee, it stand ad- vided an example of a responsible national the table. journed sine die, or stand recessed or ad- approach to nonproliferation; SA 2219. Mr. BURNS (for himself, Mr. journed until such day and time as may be Whereas the people of Kazakhstan, under WYDEN, Mr. MCCAIN, and Mr. HOLLINGS) pro- specified by its Majority Leader or his des- the leadership of Nursultan Nazarbayev, are posed an amendment to the bill S. 877, to ignee in the motion to recess or adjourn, or providing unconditional and firm support in regulate interstate commerce by imposing until the time of any reassembly pursuant to the ongoing allied campaign in Afghanistan limitations and penalties on the trans- section 2 of this concurrent resolution, by allowing coalition forces to use the air mission of unsolicited commercial electronic whichever occurs first’’. space of Kazakhstan and the largest airport mail via the Internet. in Almaty, Kazakhstan; SA 2220. Mr. HOLLINGS (for himself, Ms. SA 2218. Mr. SMITH submitted an Whereas Kazakhstan is taking an active COLLINS, Mr. CARPER, Mr. SPECTER, Mr. JEF- amendment intended to be proposed by part in rehabilitating Iraq and is the only FORDS, and Mr. LAUTENBERG) submitted an him to the bill S. 1727, to authorize ad- country in the region of Central Asia to send amendment intended to be proposed by him ditional appropriations for the Rec- a military contingent of combat engineers to the bill S. 1961, to provide for the revital- lamation Safety of Dams Act of 1978; who in a few months have neutralized more ization and enhancement of the American which was ordered to lie on the table; than 300,000 explosive devices in Iraq, there- passenger and freight rail transportation by saving thousands of lives; system; which was referred to the Com- as follows: Whereas, within the framework of growing mittee on Commerce, Science, and Transpor- At the end of the bill, insert: military cooperation, the United States and tation. ‘‘SECTION 2. PARTICIPATION BY PROJECT BENE- Kazakhstan signed an Article 98 Agreement SA 2221. Mr. MCCONNELL (for Mr. LOTT) FICIARIES. relating to the International Criminal Court; proposed an amendment to the resolution S. ‘‘(1) Section 2 of the Reclamation Safety of Whereas the increasing significance of Res. 177, to direct the Senate Commission on Dams Act of 1978 (43 U.S.C. 506) is amended Kazakhstan to United States foreign policy Art to select an appropriate scene com- by adding at the end the following: has resulted in the creation of the United memorating the Great Compromise of our ‘(b) Upon identifying a Bureau of Reclama- States-Kazakhstan Interparliamentary forefathers establishing a bicameral Con- tion facility for modification, the Secretary Friendship Group, which is designed to gress with equal representation in the shall notify in writing every project con- strengthen relations of strategic partnership United States Senate, to be placed in the tractor, irrigation district, drainage district, between the two countries; and Senate wing of the Capitol, and to authorize water conservation or conservancy district, Whereas Kazakhstan is an important the Committees on Rules and Administra- or similar special purpose political subdivi- friend and strategic ally of the United tion to obtain technical advice and assist- sion or multi-agency authority (hereafter re- States: Now, therefore, be it ance in carrying out its duties. ferred to as ‘‘project beneficiaries’’) that has Resolved by the Senate (the House of Rep- SA 2222. Mr. MCCONNELL (for Mr. LOTT) a contract for repayment, water service, op- resentatives concurring), That Congress— proposed an amendment to the resolution S. eration, or maintenance for or from that fa- (1) congratulates the people and Govern- Res. 177, supra. cility. The Secretary’s communication shall: ment of the Republic of Kazakhstan on the SA 2223. Mr. MCCONNELL (for Mr. LOTT) ‘(1) explain why the facility has been iden- 12th anniversary of the independence of proposed an amendment to the resolution S. tified for possible modification; Kazakhstan and the establishment of diplo- Res. 177, supra. ‘(2) summarize the administrative and matic relations with the United States; SA 2224. Ms. CANTWELL submitted an statutory requirements to which Reclama- (2) welcomes and supports political and amendment intended to be proposed by her tion must adhere in the planning, design, economic transformations achieved by to the bill S. 1839, to extend the Temporary value-engineering review, procurement, con- Kazakhstan during its years of independence; Extended Unemployment Compensation Act struction, and management of the modifica- (3) expresses gratitude for the leadership of of 2002; which was referred to the Committee tion; and Kazakhstan in establishing interreligious on Finance. ‘(3) invite the project beneficiaries to par- dialogue to promote peace and harmony in SA 2225. Mr. LEVIN submitted an amend- ticipate with the Bureau of Reclamation in the world; ment intended to be proposed by him to the the planning, design, value-engineering re- (4) commends Kazakhstan on toughening bill S. 1267, to amend the District of Colum- view, cost containment, procurement, con- measures to stop human trafficking; bia Home Rule Act to provide the District of struction and management (hereafter re- (5) recognizes the need to terminate appli- Columbia with autonomy over its budgets, ferred to as ‘‘joint oversight’’) of the modi- cation to Kazakhstan of title IV of the Trade and for other purposes; which was ordered to fication. ‘(c) Each project beneficiary must notify Act of 1974 (commonly known as the ‘‘Jack- lie on the table. the Bureau, in writing, within 30 days of its son-Vanik Amendment’’) and extend normal SA 2226. Mr. AKAKA submitted an amend- receipt of the Secretary’s letter, as to its in- trade relations status to Kazakhstan; ment intended to be proposed by him to the tent to participate in the joint oversight of (6) expresses gratitude for the support and bill S. 910, to ensure the continuation of non- the modification. assistance of the people of Kazakhstan in the homeland security functions of Federal ‘(d) If a project beneficiary elects to par- antiterrorist campaign of the United States agencies transferred to the Department of ticipate in the joint oversight of the modi- and coalition countries and for their support Homeland Security; which was ordered to lie fication, the Secretary, acting through the for the reconstruction of Iraq; on the table. Commissioner of Reclamation, shall enter (7) applauds the wise decision of the leader- f into an agreement with project beneficiaries ship of Kazakhstan to renounce the deploy- for the joint oversight of the modification. ment of the nuclear weapons inherited by TEXT OF AMENDMENTS Reasonable costs incurred by the project the country and make the world a safer SA 2217. Mr. CRAIG (for Mr. FRIST) beneficiaries resulting from participation in place; the joint oversight of the modification shall (8) calls upon the President to actively proposed an amendment to the concur- be credited toward repayment of the reim- popularize the example set by Kazakhstan in rent resolution H. Con. Res. 339, pro- bursable costs under this Act. renouncing the deployment of its nuclear viding for the sine die adjournment of ‘(e) Prior to submitting the modification weapons with respect to United States nego- the first session of the One Hundred reports required in section 5, the Secretary tiations with countries that are trying to ac- Eighth Congress; as follows: shall consider, and where appropriate imple- quire, develop, or deploy nuclear weapons; On page 1, line 2, strike ‘‘That’’ and all ment, alternatives recommended by any and that follows through page 3, line 3, and in- project beneficiary that has chosen to par- (9) urges further strengthening of strategi- sert: ticipate in the joint oversight of the modi- cally important relations between ‘‘That when the House adjourns on any leg- fication (hereafter referred to as ‘‘partici- Kazakhstan and the United States on all islative day from Tuesday, November 25, pating project beneficiary’’). Within 30 days other issues of importance between the two 2003, through the remainder of the first ses- after receiving such recommendations, the countries. sion of the One Hundred Eighth Congress, on Secretary shall provide to the participating f a motion offered pursuant to this concurrent project beneficiaries a written response de- AMENDMENTS SUBMITTED & resolution by its Majority Leader or his des- tailing proposed actions to address the rec- ignee, it stand adjourned sine die, or until PROPOSED ommendations. The Secretary’s response to such day and time as may be specified by its the participating project beneficiaries shall SA 2217. Mr. CRAIG (for Mr. FRIST) pro- Majority Leader or his designee in the mo- be included in the modification reports re- posed an amendment to the concurrent reso- tion to adjourn, or until the time of any re- quired by section 5.’ lution H. Con. Res. 339, providing for the sine assembly pursuant to section 2 of this con- ‘‘(2) Section 4 of the Reclamation Safety of die adjournment of the first session of the current resolution, whichever occurs first; Dams Act of 1978 (43 U.S.C. 508) is amended One Hundred Eighth Congress. that when the Senate recesses or adjourns at by adding at the end: SA 2218. Mr. SMITH submitted an amend- the close of business on any day from Mon- ‘(e) During the construction phase of the ment intended to be proposed by him to the day, November 24, 2003, through the remain- modification, the Secretary shall consider bill S. 1727, to authorize additional appro- der of the first session of the One Hundred and, where appropriate, implement alter- priations for the Reclamation Safety of Eighth Congress, on a motion offered by its natives recommended by participating

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The Secretary shall keep all such senders in the future, or both. sage for purposes of this Act if the contents project beneficiaries, regardless of whether (10) Many senders of bulk unsolicited com- or circumstances of the message indicate a they have elected to participate in joint mercial electronic mail use computer pro- primary purpose other than commercial ad- oversight, regularly informed of the costs grams to gather large numbers of electronic vertisement or promotion of a commercial and status of such modification.’ ’’ mail addresses on an automated basis from product or service. Internet websites or online services where (3) COMMISSION.—The term ‘‘Commission’’ SA 2219. Mr. BURNS (for himself, Mr. users must post their addresses in order to means the Federal Trade Commission. WYDEN, Mr. MCCAIN, and Mr. HOLLINGS) make full use of the website or service. (4) DOMAIN NAME.—The term ‘‘domain proposed an amendment to the bill S. (11) Many States have enacted legislation name’’ means any alphanumeric designation 877, to regulate interstate commerce by intended to regulate or reduce unsolicited which is registered with or assigned by any domain name registrar, domain name reg- imposing limitations and penalties on commercial electronic mail, but these stat- utes impose different standards and require- istry, or other domain name registration au- the transmission of unsolicited com- ments. As a result, they do not appear to thority as part of an electronic address on mercial electronic mail via the Inter- have been successful in addressing the prob- the Internet. net; as follows: lems associated with unsolicited commercial (5) ELECTRONIC MAIL ADDRESS.—The term In lieu of the matter proposed to be in- electronic mail, in part because, since an ‘‘electronic mail address’’ means a destina- serted, insert the following: electronic mail address does not specify a ge- tion, commonly expressed as a string of characters, consisting of a unique user name SECTION 1. SHORT TITLE. ographic location, it can be extremely dif- or mailbox (commonly referred to as the This Act may be cited as the ‘‘Controlling ficult for law-abiding businesses to know ‘‘local part’’) and a reference to an Internet the Assault of Non-Solicited Pornography with which of these disparate statutes they domain (commonly referred to as the ‘‘do- and Marketing Act of 2003’’, or the ‘‘CAN– are required to comply. main part’’), whether or not displayed, to SPAM Act of 2003’’. (12) The problems associated with the rapid growth and abuse of unsolicited commercial which an electronic mail message can be SEC. 2. CONGRESSIONAL FINDINGS AND POLICY. electronic mail cannot be solved by Federal sent or delivered. (a) FINDINGS.—The Congress finds the fol- legislation alone. The development and adop- (6) ELECTRONIC MAIL MESSAGE.—The term lowing: tion of technological approaches and the pur- ‘‘electronic mail message’’ means a message (1) Electronic mail has become an ex- suit of cooperative efforts with other coun- sent to a unique electronic mail address. tremely important and popular means of tries will be necessary as well. (7) FTC ACT.—The term ‘‘FTC Act’’ means communication, relied on by millions of (b) CONGRESSIONAL DETERMINATION OF PUB- the Federal Trade Commission Act (15 U.S.C. Americans on a daily basis for personal and LIC POLICY.—On the basis of the findings in 41 et seq.). commercial purposes. Its low cost and global subsection (a), the Congress determines (8) HEADER INFORMATION.—The term ‘‘head- reach make it extremely convenient and effi- that— er information’’ means the source, destina- cient, and offer unique opportunities for the (1) there is a substantial government inter- tion, and routing information attached to an development and growth of frictionless com- est in regulation of commercial electronic electronic mail message, including the origi- merce. mail on a nationwide basis; nating domain name and originating elec- (2) The convenience and efficiency of elec- tronic mail address, and any other informa- tronic mail are threatened by the extremely (2) senders of commercial electronic mail should not mislead recipients as to the tion that appears in the line identifying, or rapid growth in the volume of unsolicited purporting to identify, a person initiating commercial electronic mail. Unsolicited source or content of such mail; and (3) recipients of commercial electronic the message. commercial electronic mail is currently esti- (9) INITIATE.—The term ‘‘initiate’’, when mail have a right to decline to receive addi- mated to account for over half of all elec- used with respect to a commercial electronic tional commercial electronic mail from the tronic mail traffic, up from an estimated 7 mail message, means to originate or trans- same source. percent in 2001, and the volume continues to mit such message or to procure the origina- rise. Most of these messages are fraudulent SEC. 3. DEFINITIONS. tion or transmission of such message, but or deceptive in one or more respects. In this Act: shall not include actions that constitute rou- (3) The receipt of unsolicited commercial (1) AFFIRMATIVE CONSENT.—The term ‘‘af- tine conveyance of such message. For pur- electronic mail may result in costs to recipi- firmative consent’’, when used with respect poses of this paragraph, more than 1 person ents who cannot refuse to accept such mail to a commercial electronic mail message, may be considered to have initiated a mes- and who incur costs for the storage of such means that— sage. mail, or for the time spent accessing, review- (A) the recipient expressly consented to re- (10) INTERNET.—The term ‘‘Internet’’ has ing, and discarding such mail, or for both. ceive the message, either in response to a the meaning given that term in the Internet (4) The receipt of a large number of un- clear and conspicuous request for such con- Tax Freedom Act (47 U.S.C. 151 nt). wanted messages also decreases the conven- sent or at the recipient’s own initiative; and (11) INTERNET ACCESS SERVICE.—The term ience of electronic mail and creates a risk (B) if the message is from a party other ‘‘Internet access service’’ has the meaning that wanted electronic mail messages, both than the party to which the recipient com- given that term in section 231(e)(4) of the commercial and noncommercial, will be lost, municated such consent, the recipient was Communications Act of 1934 (47 U.S.C. overlooked, or discarded amidst the larger given clear and conspicuous notice at the 231(e)(4)). volume of unwanted messages, thus reducing time the consent was communicated that the (12) PROCURE.—The term ‘‘procure’’, when the reliability and usefulness of electronic recipient’s electronic mail address could be used with respect to the initiation of a com- mail to the recipient. transferred to such other party for the pur- mercial electronic mail message, means in- (5) Some commercial electronic mail con- pose of initiating commercial electronic tentionally to pay or provide other consider- tains material that many recipients may mail messages. ation to, or induce, another person to ini- consider vulgar or pornographic in nature. (2) COMMERCIAL ELECTRONIC MAIL MES- tiate such a message on one’s behalf. (6) The growth in unsolicited commercial SAGE.— (13) PROTECTED COMPUTER.—The term ‘‘pro- electronic mail imposes significant mone- (A) IN GENERAL.—The term ‘‘commercial tected computer’’ has the meaning given tary costs on providers of Internet access electronic mail message’’ means any elec- that term in section 1030(e)(2)(B) of title 18, services, businesses, and educational and tronic mail message the primary purpose of United States Code. nonprofit institutions that carry and receive which is the commercial advertisement or (14) RECIPIENT.—The term ‘‘recipient’’, such mail, as there is a finite volume of mail promotion of a commercial product or serv- when used with respect to a commercial that such providers, businesses, and institu- ice (including content on an Internet website electronic mail message, means an author- tions can handle without further investment operated for a commercial purpose). ized user of the electronic mail address to in infrastructure. (B) TRANSACTIONAL OR RELATIONSHIP MES- which the message was sent or delivered. If a (7) Many senders of unsolicited commercial SAGES.—The term ‘‘commercial electronic recipient of a commercial electronic mail electronic mail purposefully disguise the mail message’’ does not include a trans- message has 1 or more electronic mail ad- source of such mail. actional or relationship message. dresses in addition to the address to which (8) Many senders of unsolicited commercial (C) REGULATIONS REGARDING PRIMARY PUR- the message was sent or delivered, the recipi- electronic mail purposefully include mis- POSE.—Not later than 12 months after the ent shall be treated as a separate recipient leading information in the message’s subject date of the enactment of this Act, the Com- with respect to each such address. If an elec- lines in order to induce the recipients to mission shall issue regulations pursuant to tronic mail address is reassigned to a new view the messages. section 13 defining the relevant criteria to user, the new user shall not be treated as a (9) While some senders of commercial elec- facilitate the determination of the primary recipient of any commercial electronic mail tronic mail messages provide simple and re- purpose of an electronic mail message. message sent or delivered to that address be- liable ways for recipients to reject (or ‘‘opt- (D) REFERENCE TO COMPANY OR WEBSITE.— fore it was reassigned. out’’ of) receipt of commercial electronic The inclusion of a reference to a commercial (15) ROUTINE CONVEYANCE.—The term ‘‘rou- mail from such senders in the future, other entity or a link to the website of a commer- tine conveyance’’ means the transmission,

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routing, relaying, handling, or storing, mail messages, with the intent to deceive or ‘‘(2) MATERIALLY.—For purposes of para- through an automatic technical process, of mislead recipients, or any Internet access graphs (3) and (4) of subsection (a), header in- an electronic mail message for which an- service, as to the origin of such messages, formation or registration information is ma- other person has identified the recipients or ‘‘(3) materially falsifies header information terially falsified if it is altered or concealed provided the recipient addresses. in multiple commercial electronic mail mes- in a manner that would impair the ability of (16) SENDER.— sages and intentionally initiates the trans- a recipient of the message, an Internet ac- (A) IN GENERAL.—Except as provided in mission of such messages, cess service processing the message on behalf subparagraph (B), the term ‘‘sender’’, when ‘‘(4) registers, using information that ma- of a recipient, a person alleging a violation used with respect to a commercial electronic terially falsifies the identity of the actual of this section, or a law enforcement agency mail message, means a person who initiates registrant, for 5 or more electronic mail ac- to identify, locate, or respond to a person such a message and whose product, service, counts or online user accounts or 2 or more who initiated the electronic mail message or or Internet web site is advertised or pro- domain names, and intentionally initiates to investigate the alleged violation. moted by the message. the transmission of multiple commercial ‘‘(3) MULTIPLE.—The term ‘multiple’ means (B) SEPARATE LINES OF BUSINESS OR DIVI- electronic mail messages from any combina- more than 100 electronic mail messages dur- SIONS.—If an entity operates through sepa- tion of such accounts or domain names, or ing a 24-hour period, more than 1,000 elec- rate lines of business or divisions and holds ‘‘(5) falsely represents oneself to be the tronic mail messages during a 30-day period, itself out to the recipient throughout the registrant or the legitimate successor in in- or more than 10,000 electronic mail messages message as that particular line of business or terest to the registrant of 5 or more Internet during a 1-year period. division rather than as the entity of which Protocol addresses, and intentionally initi- ‘‘(4) OTHER TERMS.—Any other term has such line of business or division is a part, ates the transmission of multiple commer- the meaning given that term by section 3 of then the line of business or the division shall cial electronic mail messages from such ad- the CANSPAM Act of 2003.’’. be treated as the sender of such message for dresses, (2) CONFORMING AMENDMENT.—The chapter purposes of this Act. or conspires to do so, shall be punished as analysis for chapter 47 of title 18, United (17) TRANSACTIONAL OR RELATIONSHIP MES- provided in subsection (b). States Code, is amended by adding at the end SAGE.— ‘‘(b) PENALTIES.—The punishment for an the following: (A) IN GENERAL.—The term ‘‘transactional offense under subsection (a) is— ‘‘Sec. or relationship message’’ means an elec- ‘‘(1) a fine under this title, imprisonment ‘‘1037. Fraud and related activity in connec- tronic mail message the primary purpose of for not more than 5 years, or both, if— tion with electronic mail.’’. which is— ‘‘(A) the offense is committed in further- (b) UNITED STATES SENTENCING COMMIS- (i) to facilitate, complete, or confirm a ance of any felony under the laws of the SION.— commercial transaction that the recipient United States or of any State; or (1) DIRECTIVE.—Pursuant to its authority has previously agreed to enter into with the ‘‘(B) the defendant has previously been under section 994(p) of title 28, United States sender; convicted under this section or section 1030, Code, and in accordance with this section, (ii) to provide warranty information, prod- or under the law of any State for conduct in- the United States Sentencing Commission uct recall information, or safety or security volving the transmission of multiple com- shall review and, as appropriate, amend the information with respect to a commercial mercial electronic mail messages or unau- sentencing guidelines and policy statements product or service used or purchased by the thorized access to a computer system; recipient; ‘‘(2) a fine under this title, imprisonment to provide appropriate penalties for viola- (iii) to provide— for not more than 3 years, or both, if— tions of section 1037 of title 18, United States (I) notification concerning a change in the ‘‘(A) the offense is an offense under sub- Code, as added by this section, and other of- terms or features of; section (a)(1); fenses that may be facilitated by the sending (II) notification of a change in the recipi- ‘‘(B) the offense is an offense under sub- of large quantities of unsolicited electronic ent’s standing or status with respect to; or section (a)(4) and involved 20 or more fal- mail. (III) at regular periodic intervals, account sified electronic mail or online user account (2) REQUIREMENTS.—In carrying out this balance information or other type of account registrations, or 10 or more falsified domain subsection, the Sentencing Commission shall statement with respect to, name registrations; consider providing sentencing enhancements for— a subscription, membership, account, loan, ‘‘(C) the volume of electronic mail mes- (A) those convicted under section 1037 of or comparable ongoing commercial relation- sages transmitted in furtherance of the of- title 18, United States Code, who— ship involving the ongoing purchase or use fense exceeded 2,500 during any 24-hour pe- (i) obtained electronic mail addresses by the recipient of products or services of- riod, 25,000 during any 30-day period, or through improper means, including— fered by the sender; 250,000 during any 1-year period; (I) harvesting electronic mail addresses of (iv) to provide information directly related ‘‘(D) the offense caused loss to 1 or more the users of a website, proprietary service, or to an employment relationship or related persons aggregating $5,000 or more in value other online public forum operated by an- benefit plan in which the recipient is cur- during any 1-year period; other person, without the authorization of rently involved, participating, or enrolled; or ‘‘(E) as a result of the offense any indi- such person; and (v) to deliver goods or services, including vidual committing the offense obtained any- (II) randomly generating electronic mail product updates or upgrades, that the recipi- thing of value aggregating $5,000 or more addresses by computer; or ent is entitled to receive under the terms of during any 1-year period; or (ii) knew that the commercial electronic a transaction that the recipient has pre- ‘‘(F) the offense was undertaken by the de- mail messages involved in the offense con- viously agreed to enter into with the sender. fendant in concert with 3 or more other per- tained or advertised an Internet domain for (B) MODIFICATION OF DEFINITION.—The Com- sons with respect to whom the defendant oc- which the registrant of the domain had pro- mission by regulation pursuant to section 13 cupied a position of organizer or leader; and vided false registration information; and may modify the definition in subparagraph ‘‘(3) a fine under this title or imprisonment (B) those convicted of other offenses, in (A) to expand or contract the categories of for not more than 1 year, or both, in any eluding offenses involving fraud, identity messages that are treated as transactional other case. theft, obscenity, child pornography, and the or relationship messages for purposes of this ‘‘(c) FORFEITURE.— sexual exploitation of children, if such of- Act to the extent that such modification is ‘‘(1) IN GENERAL.—The court, in imposing fenses involved the sending of large quan- necessary to accommodate changes in elec- sentence on a person who is convicted of an tities of electronic mail. tronic mail technology or practices and ac- offense under this section, shall order that (c) SENSE OF CONGRESS.—It is the sense of complish the purposes of this Act. the defendant forfeit to the United States— ‘‘(A) any property, real or personal, consti- Congress that— SEC. 4. PROHIBITION AGAINST PREDATORY AND tuting or traceable to gross proceeds ob- (1) Spam has become the method of choice ABUSIVE COMMERCIAL E–MAIL. tained from such offense; and for those who distribute pornography, per- (a) OFFENSE.— ‘‘(B) any equipment, software, or other petrate fraudulent schemes, and introduce (1) IN GENERAL.—Chapter 47 of title 18, technology used or intended to be used to viruses, worms, and Trojan horses into per- United States Code, is amended by adding at commit or to facilitate the commission of sonal and business computer systems; and the end the following new section: such offense. (2) the Department of Justice should use ‘‘§ 1037. Fraud and related activity in connec- ‘‘(2) PROCEDURES.—The procedures set all existing law enforcement tools to inves- tion with electronic mail forth in section 413 of the Controlled Sub- tigate and prosecute those who send bulk ‘‘(a) IN GENERAL.—Whoever, in or affecting stances Act (21 U.S.C. 853), other than sub- commercial e-mail to facilitate the commis- interstate or foreign commerce, knowingly— section (d) of that section, and in Rule 32.2 of sion of Federal crimes, including the tools ‘‘(1) accesses a protected computer without the Federal Rules of Criminal Procedure, contained in chapters 47 and 63 of title 18, authorization, and intentionally initiates shall apply to all stages of a criminal for- United States Code (relating to fraud and the transmission of multiple commercial feiture proceeding under this section. false statements); chapter 71 of title 18, electronic mail messages from or through ‘‘(d) DEFINITIONS.—In this section; United States Code (relating to obscenity); such computer, ‘‘(1) LOSS.—The term ‘loss’ has the mean- chapter 110 of title 18, United States Code ‘‘(2) uses a protected computer to relay or ing given that term in section 1030(e) of this (relating to the sexual exploitation of chil- retransmit multiple commercial electronic title. dren); and chapter 95 of title 18, United

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States Code (relating to racketeering), as ap- tronic mail address or other mechanism does (1) ADDRESS HARVESTING AND DICTIONARY propriate. not fail to satisfy the requirements of sub- ATTACKS.— SEC. 5. OTHER PROTECTIONS FOR USERS OF paragraph (A) if it is unexpectedly and tem- (A) IN GENERAL.—It is unlawful for any per- COMMERCIAL ELECTRONIC MAIL. porarily unable to receive messages or proc- son to initiate the transmission, to a pro- (a) REQUIREMENTS FOR TRANSMISSION OF ess requests due to a technical problem be- tected computer, of a commercial electronic MESSAGES.— yond the control of the sender if the problem mail message that is unlawful under sub- (1) PROHIBITION OF FALSE OR MISLEADING is corrected within a reasonable time period. section (a), or to assist in the origination of TRANSMISSION INFORMATION.—It is unlawful (4) PROHIBITION OF TRANSMISSION OF COM- such message through the provision or selec- for any person to initiate the transmission, MERCIAL ELECTRONIC MAIL AFTER OBJECTION.— tion of addresses to which the message will to a protected computer, of a commercial (A) IN GENERAL.—If a recipient makes a re- be transmitted, if such person had actual electronic mail message, or a transactional quest using a mechanism provided pursuant knowledge, or knowledge fairly implied on or relationship message, that contains, or is to paragraph (3) not to receive some or any the basis of objective circumstances, that— accompanied by, header information that is commercial electronic mail messages from (i) the electronic mail address of the re- materially false or materially misleading. such sender, then it is unlawful— cipient was obtained using an automated (i) for the sender to initiate the trans- means from an Internet website or propri- For purposes of this paragraph— mission to the recipient, more than 10 busi- (A) header information that is technically etary online service operated by another per- ness days after the receipt of such request, of son, and such website or online service in- accurate but includes an originating elec- a commercial electronic mail message that tronic mail address, domain name, or Inter- cluded, at the time the address was obtained, falls within the scope of the request; a notice stating that the operator of such net Protocol address the access to which for (ii) for any person acting on behalf of the website or online service will not give, sell, purposes of initiating the message was ob- sender to initiate the transmission to the re- or otherwise transfer addresses maintained tained by means of false or fraudulent pre- cipient, more than 10 business days after the by such website or online service to any tenses or representations shall be considered receipt of such request, of a commercial elec- other party for the purposes of initiating, or materially misleading; tronic mail message with actual knowledge, enabling others to initiate, electronic mail (B) a ‘‘from’’ line (the line identifying or or knowledge fairly implied on the basis of messages; or purporting to identify a person initiating the objective circumstances, that such message (ii) the electronic mail address of the re- message) that accurately identifies any per- falls within the scope of the request; cipient was obtained using an automated son who initiated the message shall not be (iii) for any person acting on behalf of the means that generates possible electronic considered materially false or materially sender to assist in initiating the trans- mail addresses by combining names, letters, misleading; and mission to the recipient, through the provi- or numbers into numerous permutations. (C) header information shall be considered sion or selection of addresses to which the (B) DISCLAIMER.—Nothing in this para- materially misleading if it fails to identify message will be sent, of a commercial elec- graph creates an ownership or proprietary accurately a protected computer used to ini- tronic mail message with actual knowledge, interest in such electronic mail addresses. tiate the message because the person initi- or knowledge fairly implied on the basis of (2) AUTOMATED CREATION OF MULTIPLE ELEC- ating the message knowingly uses another objective circumstances, that such message TRONIC MAIL ACCOUNTS.—It is unlawful for protected computer to relay or retransmit would violate clause (i) or (ii); or any person to use scripts or other automated the message for purposes of disguising its or- (iv) for the sender, or any other person who means to register for multiple electronic igin. knows that the recipient has made such a re- mail accounts or online user accounts from (2) PROHIBITION OF DECEPTIVE SUBJECT quest, to sell, lease, exchange, or otherwise which to transmit to a protected computer, HEADINGS.—It is unlawful for any person to transfer or release the electronic mail ad- or enable another person to transmit to a initiate the transmission to a protected com- dress of the recipient (including through any protected computer, a commercial electronic puter of a commercial electronic mail mes- transaction or other transfer involving mail- mail message that is unlawful under sub- sage if such person has actual knowledge, or ing lists bearing the electronic mail address section (a). knowledge fairly implied on the basis of ob- of the recipient) for any purpose other than (3) RELAY OR RETRANSMISSION THROUGH UN- jective circumstances, that a subject head- compliance with this Act or other provision AUTHORIZED ACCESS.—It is unlawful for any ing of the message would be likely to mis- of law. (B) SUBSEQUENT AFFIRMATIVE CONSENT.—A person knowingly to relay or retransmit a lead a recipient, acting reasonably under the commercial electronic mail message that is circumstances, about a material fact regard- prohibition in subparagraph (A) does not apply if there is affirmative consent by the unlawful under subsection (a) from a pro- ing the contents or subject matter of the tected computer or computer network that message (consistent with the criteria used in recipient subsequent to the request under subparagraph (A). such person has accessed without authoriza- enforcement of section 5 of the Federal tion. Trade Commission Act (15 U.S.C. 45)). (5) INCLUSION OF IDENTIFIER, OPT-OUT, AND (c) SUPPLEMENTARY RULEMAKING AUTHOR- (3) INCLUSION OF RETURN ADDRESS OR COM- PHYSICAL ADDRESS IN COMMERCIAL ELECTRONIC ITY.—The Commission shall by regulation, PARABLE MECHANISM IN COMMERCIAL ELEC- MAIL.— (A) It is unlawful for any person to initiate pursuant to section 13— TRONIC MAIL.— the transmission of any commercial elec- (1) modify the 10-business-day period under (A) IN GENERAL.—It is unlawful for any per- tronic mail message to a protected computer subsection (a)(4)(A) or subsection (a)(4)(B), or son to initiate the transmission to a pro- both, if the Commission determines that a tected computer of a commercial electronic unless the message provides— (i) clear and conspicuous identification different period would be more reasonable mail message that does not contain a func- that the message is an advertisement or so- after taking into account— tioning return electronic mail address or licitation; (A) the purposes of subsection (a); other Internet-based mechanism, clearly and (ii) clear and conspicuous notice of the op- (B) the interests of recipients of commer- conspicuously displayed, that— portunity under paragraph (3) to decline to cial electronic mail; and (i) a recipient may use to submit, in a receive further commercial electronic mail (C) the burdens imposed on senders of law- manner specified in the message, a reply messages from the sender; and ful commercial electronic mail; and electronic mail message or other form of (iii) a valid physical postal address of the (2) specify additional activities or prac- Internet-based communication requesting sender. tices to which subsection (b) applies if the not to receive future commercial electronic (B) Subparagraph (A)(i) does not apply to Commission determines that those activities mail messages from that sender at the elec- the transmission of a commercial electronic or practices are contributing substantially tronic mail address where the message was mail message if the recipient has given prior to the proliferation of commercial electronic received; and affirmative consent to receipt of the mes- mail messages that are unlawful under sub- (ii) remains capable of receiving such mes- sage. section (a). sages or communications for no less than 30 (6) MATERIALLY.—For purposes of para- (d) REQUIREMENT TO PLACE WARNING LA- days after the transmission of the original graph (1), the term ‘‘materially’’, when used BELS ON COMMERCIAL ELECTRONIC MAIL CON- message. with respect to false or misleading header in- TAINING SEXUALLY ORIENTED MATERIAL.— (B) MORE DETAILED OPTIONS POSSIBLE.—The formation, includes the alteration or con- (1) IN GENERAL.—No person may initiate in person initiating a commercial electronic cealment of header information in a manner or affecting interstate commerce the trans- mail message may comply with sub para- that would impair the ability of an Internet mission, to a protected computer, of any graph (A)(i) by providing the recipient a list access service processing the message on be- commercial electronic mail message that in- or menu from which the recipient may half of a recipient, a person alleging a viola- cludes sexually oriented material and— choose the specific types of commercial elec- tion of this section, or a law enforcement (A) fail to include in subject heading for tronic mail messages the recipient wants to agency to identify, locate, or respond to a the electronic mail message the marks or receive or does not want to receive from the person—who initiated the electronic mail notices prescribed by the Commission under sender, if the list or menu includes an option message or to investigate the alleged viola- this subsection; or under which the recipient may choose not to tion, or the ability of a recipient of the mes- (B) fail to provide that the matter in the receive any commercial electronic mail mes- sage to respond to a person who initiated the message that is initially viewable to the re- sages from the sender. electronic message. cipient, when the message is opened by any (C) TEMPORARY INABILITY TO RECEIVE MES- (b) AGGRAVATED VIOLATIONS RELATING TO recipient and absent any further actions by SAGES OR PROCESS REQUESTS.—A return elec- COMMERCIAL ELECTRONIC MAIL.— the recipient, includes only—

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00158 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16039 (i) to the extent required or authorized (ii) receives, or expects to receive, an eco- (9) under the Farm Credit Act of 1971 (12 pursuant to paragraph (2), any such marks or nomic benefit from such promotion. U.S.C. 2001 et seq.) by the Farm Credit Ad- notices; (c) EXCLUSIVE ENFORCEMENT BY FTC.—Sub- ministration with respect to any Federal (ii) the information required to be included sections (f) and (g) of section 7 do not apply land bank, Federal land bank association, in the message pursuant to subsection (a)(5); to violations of this section. Federal intermediate credit bank, or produc- and (d) SAVINGS PROVISION.—Except as provided tion credit association; and (iii) instructions on how to access, or a in section 7(f)(8), nothing in this section may (10) under the Communications Act of 1934 mechanism to access, the sexually oriented be construed to limit or prevent any action (47 U.S.C. 151 et seq.) by the Federal Commu- material. that may be taken under this Act with re- nications Commission with respect to any (2) PRIOR AFFIRMATIVE CONSENT.—Para- spect to any violation of any other section of person subject to the provisions of that Act. graph (1) does not apply to the transmission this Act. (c) EXERCISE OF CERTAIN POWERS.—For the of an electronic mail message if the recipient SEC. 7. ENFORCEMENT GENERALLY. purpose of the exercise by any agency re- has given prior affirmative consent to re- (a) VIOLATION IS UNFAIR OR DECEPTIVE ACT ferred to in subsection (b) of its powers under ceipt of the message. OR PRACTICE.—Except as provided in sub- any Act referred to in that subsection, a vio- (3) PRESCRIPTION OF MARKS AND NOTICES.— section (b), this Act shall be enforced by the lation of this Act is deemed to be a violation Not later than 120 days after the date of the Commission as if the violation of this Act of a Federal Trade Commission trade regula- enactment of this bet, the Commission in were an unfair or deceptive act or practice tion rule. In addition to its powers under any consultation with the Attorney General proscribed under section 18(a)(1)(B) of the provision of law specifically referred to in shall prescribe clearly identifiable marks or Federal Trade Commission Act (15 U.S.C. subsection (b), each of the agencies referred notices to be included in or associated with 57a(a)(1)(B)). to in that subsection may exercise, for the commercial electronic mail that contains (b) ENFORCEMENT BY CERTAIN OTHER AGEN- purpose of enforcing compliance with any re- sexually oriented material, in order to in- CIES.—Compliance with this Act shall be en- quirement imposed under this Act, any other form the recipient of that fact and to facili- forced— authority conferred on it by law. tate filtering of such electronic mail. The (1) under section 8 of the Federal Deposit (d) ACTIONS BY THE COMMISSION.—The Com- Commission shall publish in the Federal Insurance Act (12 U.S.C. 1818), in the case mission shall prevent any person from vio- Register and provide notice to the public of of— lating this Act in the same manner, by the the marks or notices prescribed under this (A) national banks, and Federal branches same means, and with the same jurisdiction, paragraph. and Federal agencies of foreign banks, by the powers, and duties as though all applicable (4) DEFINITION.—In this subsection, the Office of the Comptroller of the Currency; terms and provisions of the Federal Trade term ‘‘sexually oriented material’’ means (B) member banks of the Federal Reserve Commission Act (15 U.S.C. 41 et seq.) were any material that depicts sexually explicit System (other than national banks), incorporated into and made a part of this conduct (as that term is defined in section branches and agencies of foreign banks Act. Any entity that violates any provision 2256 of title 18, United States Code), unless (other than Federal branches, Federal agen- of that subtitle is subject to the penalties the depiction constitutes a small and insig- cies, and insured State branches of foreign and entitled to the privileges and immuni- nificant part of the whole, the remainder of banks), commercial lending companies ties provided in the Federal Trade Commis- which is not primarily devoted to sexual owned or controlled by foreign banks, orga- sion Act in the same manner, by the same matters. nizations operating under section 25 or 25A means, and with the same jurisdiction, (5) PENALTY.—Whoever knowingly violates of the Federal Reserve Act (12 U.S.C. 601 and power, and duties is though all applicable paragraph (1) shall be fined under title 18, 611), and bank holding companies, by the terms and provisions of the Federal Trade United States Code, or imprisoned not more Board; Commission Act were incorporated into and than 5 years, or both. (C) banks insured by the Federal Deposit node a part of that subtitle. SEC. 6. BUSINESSES KNOWINGLY PROMOTED BY Insurance Corporation (other than members (e) AVAILABILITY OF CEASE-AND-DESIST OR- ELECTRONIC MAIL WITH FALSE OR of the Federal Reserve System) insured DERS AND INJUNCTIVE RELIEF WITHOUT SHOW- MISLEADING TRANSMISSION INFOR- State branches of foreign banks, by the ING OF KNOWLEDGE.—Notwithstanding any MATION. Board of Directors of the Federal Deposit In- other provision of this Act, in any pro- (a) IN GENERAL.—It is unlawful for a person to promote, or allow the promotion of, that surance Corporation; and ceeding or action pursuant to subsection (a), (D) savings associations the deposits of person’s trade or business, or goods, prod- (b), (c), or (d) of this section to enforce com- which are insured by the Federal Deposit In- ucts, property, or services sold, offered for pliance, through an order to cease and desist surance Corporation, by the Director of the sale, leased or offered for lease, or otherwise or an injunction, with section 5(a)(1)(C), sec- Office of Thrift Supervision; made available through that trade or busi- tion 5(a)(2), clause (ii), (iii), or (iv) of section (2) under the Federal Credit Union Act (12 ness, in a commercial electronic mail mes- 5(a)(4)(A), section 5(b)(1)(A), or section U.S.C. 1751 et seq.) by the Board of the Na- sage the transmission of which in violation 5(b)(3), neither the Commission nor the Fed- tional Credit Union Administration with re- of section 5(a)(1) if that person— eral Communications Commission shall be spect to any Federally insured credit union; (1) knows, or should have known in the or- required to allege or prove the state of mind (3) under the Securities Exchange Act of dinary course of that person’s trade or busi- required by such section or subparagraph. 1934 (15 U.S.C. 78a et seq.) by the Securities ness, that the goods, products, property, or (f) ENFORCEMENT BY STATES.— and Exchange Commission with respect to (1) CIVIL ACTION.—In any case in which the services sold, offered for sale, leased or of- any broker or dealer; attorney general of a State, or an official or fered for lease, or otherwise made available (4) under the Investment Company Act of agency of a State, has reason to believe that through that trade or business were being 1940 (15 U.S.C. 80a–1 et seq.) by the Securities an interest of the residents of that State has promoted in such a message; and Exchange Commission with respect to (2) received or expected to receive an eco- been or is threatened or adversely affected investment companies; nomic benefit from such promotion; and by any person who violates paragraph (1) or (5) under the Investment Advisers Act of (3) took no reasonable action— (2) of section 5(a), who violates section 5(d), (A) to prevent the transmission; or 1940 (15 U.S.C. 80b–1 et seq.) by the Securities or who engages in a pattern or practice that (B) to detect the transmission and report it and Exchange Commission with respect to violates paragraph (3), (4), or (5) of section to the Commission. investment advisers registered under that 5(a), of this Act, the attorney general, offi- (b) LIMITED ENFORCEMENT AGAINST THIRD Act; cial, or agency of the State, as parens PARTIES.— (6) under State insurance law in the case of patriae, may bring a civil action on behalf of (1) IN GENERAL.—Except as provided in any person engaged in providing insurance, the residents of the State in a district court paragraph (2), a person (hereinafter referred by the applicable State insurance authority of the United States of appropriate jurisdic- to as the ‘‘third party’’) that provides goods, of the State in which the person is domi- tion— products, property, or services to another ciled, subject to section 104 of the Gramm- (A) to enjoin further violation of section 5 person that violates subsection (a) shall not Bliley-Leach Act (15 U.S.C. 6701), except that of this Act by the defendant; or be held liable for such violation. in any State in which the State insurance (B) to obtain damages on behalf of resi- (2) EXCEPTION.—Liability for a violation of authority elects not to exercise this power, dents of the State, in an amount equal to the subsection (a) shall be imputed to a third the enforcement authority pursuant to this greater of— party that provides goods, products, prop- Act shall be exercised by the Commission in (i) the actual monetary loss suffered by erty, or services to another person that vio- accordance with subsection (a); such residents; or lates subsection (a) if that third party— (7) under part A of subtitle VII of title 49, (ii) the amount determined under para- (A) owns, or has a greater than 50 percent United States Code, by the Secretary of graph (3). ownership or economic interest in, the trade Transportation with respect to any air car- (2) AVAILABILITY OF INJUNCTIVE RELIEF or business of the person that violated sub- rier or foreign air carrier subject to that WITHOUT SHOWING OF KNOWLEDGE.—Notwith- section (a); or part; standing any other provision of this Act, in (B)(i) has actual knowledge that goods, (8) under the Packers and Stockyards Act, a civil action under paragraph (1)(A) of this products, property, or services are promoted 1921 (7 U.S.C. 181 et seq.) {except as provided subsection, the attorney general, official, or in a commercial electronic mail message the in section 406 of that Act (7 U.S.C. 226, 227)), agency of the State shall not be required to transmission of which is in violation of sec- by the Secretary of Agriculture with respect allege or prove the state of mind required by tion 5(a)(1); and to any activities subject to that Act; section 5(a)(1)(C), section 5(a)(2), clause (ii),

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00159 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16040 CONGRESSIONAL RECORD — SENATE November 25, 2003 (iii), or (iv) of section 5(a)(4)(A), section this Act, no State attorney general, or offi- (ii) the violation occurred despite commer- 5(b)(1)(A), or section 5(b)(3). cial or agency of a State, may bring an ac- cially reasonable efforts to maintain compli- (3) STATUTORY DAMAGES.— tion under this subsection during the pend- ance with the practices and procedures to (A) IN GENERAL.—For purposes of para- ency of that action against any defendant which reference is made in clause (i). graph (1)(B)(ii), the amount determined named in the complaint of the Commission (4) ATTORNEY FEES.—In any action brought under this paragraph is the amount cal- or the other agency for any violation of this pursuant to paragraph (1), the court may, in culated by multiplying the number of viola- Act alleged in the complaint. its discretion, require an undertaking for the tions (with each separately addressed unlaw- (9) REQUISITE SCIENTER FOR CERTAIN CIVIL payment of the costs of such action, and as- ful message received by or addressed to such ACTIONS.—Except as provided in section sess reasonable costs, including reasonable residents treated as a separate violation) by 5(a)(1)(C), section 5(a)(2), clause (ii), (iii), or attorneys’ fees, against any party. up to $250. (iv) of section 5(a)(4)(A), section 5(b)(1)(A), or SEC. 8. EFFECT ON OTHER LAWS. (B) LIMITATION.—For any violation of sec- section 5(b)(3), in a civil action brought by a tion 5 (other than section 5(a)(1)), the State attorney general, or an official or (a) FEDERAL LAW.— amount determined under subparagraph (A) agency of a State, to recover monetary dam- (1) Nothing in this Act shall be construed may not exceed $2,000,000. ages for a violation of this Act, the court to impair the enforcement of section 223 or (C) AGGRAVATED DAMAGES.—The court may shall not grant the relief sought unless the 231 of the Communications Act of 1934 (47 increase a damage award to an amount equal attorney general, official, or agency estab- U.S.C. 223 or 231, respectively), chapter 71 to not more than three times the amount lishes that the defendant acted with actual (relating to obscenity) or 110 (relating to sex- otherwise available under this paragraph if— knowledge, or knowledge fairly implied on ual exploitation of children) of title 18, (i) the court determines that the defendant the basis of objective circumstances, of the United States Code, or any other Federal committed the violation willfully and know- act or omission that constitutes the viola- criminal statute. ingly; or tion. (2) Nothing in this Act shall be construed (ii) the defendant’s unlawful activity in- (g) ACTION BY PROVIDER OF INTERNET AC- to affect in any way the Commission’s au- cluded one or more of the aggravating viola- CESS SERVICE.— thority to bring enforcement actions under tions set forth in section 5(b). (1) ACTION AUTHORIZED.—A provider of FTC Act for materially false or deceptive (D) REDUCTION OF DAMAGES.—In assessing Internet access service adversely affected by representations or unfair practices in com- damages under subparagraph (A), the court a violation of section 5(a)(1), 5(b), or 5(d), or mercial electronic mail messages. may consider whether— a pattern or practice that violates paragraph (b) STATE LAW.— (i) the defendant has established and im- (2), (3), (4), or (5) of section 5(a), may bring a (1) IN GENERAL.—This Act supersedes any plemented, with due care, commercially rea- civil action in any district court of the statute, regulation, or rule of a State or po- sonable practices and procedures designed to United States with jurisdiction over the de- litical subdivision of a State that expressly effectively prevent such violations; or fendant— regulates the use of electronic mail to send (ii) the violation occurred despite commer- (A) to enjoin further violation by the de- commercial messages, except to the extent cially reasonable efforts to maintain compli- fendant; or that any such statute, regulation, or rule ance the practices and procedures to which (B) to recover damages in an amount equal prohibits falsity or deception in any portion reference is made in clause (i). to the greater of— of a commercial electronic mail message or (i) actual monetary loss incurred by the (4) ATTORNEY FEES.—In the case of any suc information attached thereto. provider of Internet access service as a result cessful action under paragraph (1), the court, (2) STATE LAW NOT SPECIFIC TO ELECTRONIC in its discretion, may award the costs of the of such violation; or (ii) the amount determined under para- MAIL.—This Act shall not be construed to action and reasonable attorney fees to the preempt the applicability of— State. graph (3). (2) SPECIAL DEFINITION OF ‘‘PROCURE’’.—In (A) State laws that are not specific to elec- IGHTS OF FEDERAL REGULATORS.—The (5) R tronic mail, including State trespass, con- State shall serve prior written notice of any any action brought under paragraph (1), this tract, or tort law; or action under paragraph (1) upon the Federal Act shall be applied as if the definition of the (B) other State laws to the extent that Trade Commission or the appropriate Fed- term ‘‘procure’’ in section 3(12) contained, those laws relate to acts of fraud or com- eral regulator determined under subsection after ‘‘behalf’’ the words ‘‘with actual knowl- puter crime. (b) and provide the Commission or appro- edge, or by consciously avoiding knowing, priate Federal regulator with a copy of its whether such person is engaging, or will en- (c) NO EFFECT ON POLICIES OF PROVIDERS OF complaint, except in any case in which such gage, in a pattern or practice that violates INTERNET ACCESS SERVICE.—Nothing in this prior notice is not feasible, in which case the this Act’’. Act shall be construed to have any effect on (3) STATUTORY DAMAGES.— State shall serve such notice immediately the lawfulness or unlawfulness, under any (A) IN GENERAL.—For purposes of para- upon instituting such action. The Federal other provision of law, of the adoption, im- graph (1)(B)(ii), the amount determined plementation, or enforcement by a provider Trade Commission or appropriate Federal under this paragraph is the amount cal- regulator shall have the right— of Internet access service of a policy of de- culated by multiplying the number of viola- clining to transmit, route, relay, handle, or (A) to intervene in the action; tions (with each separately addressed unlaw- (B) upon so intervening, to be heard on all store certain types of electronic mail mes- ful message that is transmitted or attempted matters arising therein; sages. to be transmitted over the facilities of the (C) to remove the action to the appropriate SEC. 9. DO-NOT-E-MAIL REGISTRY. provider of Internet access service, or that is United States district court; and transmitted or attempted to be transmitted (a) IN GENERAL.—Not later than 6 months (D) to file petitions for appeal. to an electronic mail address obtained from after the date of enactment of this Act, the (6) CONSTRUCTION.—For purposes of bring- the provider of Internet access service in vio- Commission shall transmit to the Senate ing any civil action under paragraph (1), lation of section 5 (b)(1)(A)(i), treated as a Committee on Commerce, Science, and nothing in this Act shall be construed to pre- separate violation) by— Transportation and the House of Representa- vent an attorney general of a State from ex- (i) up to $100, in the case of a violation of tives Committee on Energy and Commerce a ercising the powers conferred on the attor- section 5(a)(1); or report that— ney general by the laws of that State to— (ii) up to $25, in the case of any other viola- (1) sets forth a plan and timetable for es- (A) conduct investigations; tion of section 5. tablishing a nationwide marketing Do-Not- (B) administer oaths or affirmations; or (B) LIMITATION.—For any violation of sec- E-Mail registry; (C) compel the attendance of witnesses or tion 5 (other than section 5(a)(1)), the (2) includes an explanation of any prac- the production of documentary and other amount determined under subparagraph (A) tical, technical, security, privacy, enforce- evidence.— may not exceed $1,000,000. ability, or other concerns that the Commis- (7) VENUE; SERVICE OF PROCESS.— (C) AGGRAVATED DAMAGES.—The court may sion has regarding such a registry; and (A) VENUE.—Any action brought under increase a damage award to an amount equal (3) includes an explanation of how the reg- paragraph (1) may be brought in the district to not more than three times the amount istry would be applied with respect to chil- court of the United States that meets appli- otherwise available under this paragraph if— dren with e-mail accounts. cable requirements relating to venue under (i) the court determines that the defendant (b) AUTHORIZATION TO IMPLEMENT.—The section 1391 of title 28, United States Code. committed the violation willfully and know- Commission may establish and implement (B) SERVICE OF PROCESS.—In an action ingly; or the plan, but not earlier than 9 months after brought under paragraph (1), process may be (ii) the defendant’s unlawful activity in- the date of enactment of this Act. served in any district in which the defend- cluded one or more of the aggravated viola- ant— tions set forth in section 5(b). SEC. 10. STUDY OF EFFECTS OF COMMERCIAL (i) is an inhabitant; or (D) REDUCTION OF DAMAGES.—In assessing ELECTRONIC MAIL. (ii) maintains a physical place of business. damages under subparagraph (A), the court (a) IN GENERAL.—Not later than 24 months (8) LIMITATION ON STATE ACTION WHILE FED- may consider whether— after the date of the enactment of this Act, ERAL ACTION IS PENDING.—If the Commission, (i) the defendant has established and im- the Commission, in consultation with the or other appropriate Federal agency under plemented, with due care, commercially rea- Department of Justice and other appropriate subsection (b), has instituted a civil action sonable practices and procedures designed to agencies, shall submit a report to the Con- or an administrative action for violation of effectively prevent such violations; or— gress that provides a detailed analysis of the

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00160 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16041 effectiveness and enforcement of the provi- identification required by section 5(a)(5)(A) system; which was referred to the Com- sions of this Act and the need (if any) for the in any particular part of such a mail mes- mittee on Commerce, Science, and Congress to modify such provisions. sage (such as the subject line or body). Transportation; as follows: (b) REQUIRED ANALYSIS.—The Commission SEC. 14. APPLICATION TO WIRELESS. shall include in the report required by sub- TITLE VIII—RAIL INFRASTRUCTURE TAX (a) EFFECT ON OTHER LAW.—Nothing in this CREDIT BONDS section (a)— Act shall be interpreted to preclude or over- (1) an analysis of the extent to which tech- ride the applicabi1ity of section 227 of the SEC. 801. CREDIT TO HOLDERS OF QUALIFIED RAIL INFRASTRUCTURE BONDS. nological and marketplace developments, in- Communications Act of 1934 (7 U.S.C. 227) or (a) IN GENERAL.—Part IV of subchapter A cluding changes in the nature of the devices the rules prescribed under section 3 of the of chapter 1 of the Internal Revenue Code of through which consumers access their elec- Telemarketing and Consumer Fraud and 1986 (relating to credits against tax) is tronic mail messages, may affect the practi- Abuse Prevention Act (15 U.S.C. 6102). amended by adding at the end the following cality and effectiveness of the provisions of (b) FCC RULEMAKING.—The Federal Com- new subpart: this Act; munications Commission, in consultation (2) analysis and recommendations con- with the Federal Trade Commission, shall ‘‘Subpart H—Nonrefundable Credit for Hold- cerning how to address commercial elec- promulgate rules within 270 days to protect ers of Qualified Rail Infrastructure Bonds tronic mail that originates in or is trans- consumers from unwanted mobile service ‘‘See. 54. Credit to holders of qualified rail mitted through or to facilities or computers commercial messages. The Federal Commu- infrastructure bonds. in other nations, including initiatives or pol- nications Commission, in promulgating the ‘‘SEC. 54. CREDIT TO HOLDERS OF QUALIFIED icy positions that the Federal Government rules, shall, to the extent consistent with RAIL INFRASTRUCTURE BONDS. could pursue through international negotia- subsection (c)— ‘‘(a) ALLOWANCE OF CREDIT.—In the case of tions, fora, organizations, or institutions; (1) provide subscribers to commercial mo- a taxpayer who holds a qualified rail infra- and bile services the ability to avoid receiving structure bond on a credit allowance date of (3) analysis and recommendations con- mobile service commercial messages unless such bond which occurs during the taxable cerning options for protecting consumers, in- the subscriber has provided express prior au- year, there shall be allowed as a credit cluding children, from the receipt and view- thorization to the sender, except as provided against the tax imposed by this chapter for ing of commercial electronic mail that is ob- in paragraph (3); such taxable year an amount equal to the scene or pornographic. (2) allow recipients of mobile service com- sum of the credits determined under sub- SEC. 11. IMPROVING ENFORCEMENT BY PRO- mercial messages to indicate electronically a section (b) with respect to credit allowance VIDING REWARDS FOR INFORMA- desire not to receive future mobile service dates during such year on which the tax- TION ABOUT VIOLATIONS; LABEL- commercial messages from the sender; payer holds such bond. ING. (3) take into consideration, in determining ‘‘(b) AMOUNT OF CREDIT.— The Commission shall transmit to the Sen- whether to subject providers of commercial ‘‘(1) IN GENERAL.—The amount of the credit ate Committee on Commerce, Science, and mobile services to paragraph (1), the rela- determined under this subsection with re- Transportation and the House of Representa- tionship that exists between providers of spect to any credit allowance date for a tives Committee on Energy and Commerce— such services and their subscribers, but if the qualified rail infrastructure bond is 25 per- (1) a report, within 9 months after the date Commission determines that such providers cent of the annual credit determined with re- of enactment of this Act, that sets forth a should not be subject to paragraph (1), the spect to such bond. system for rewarding those who supply infor- rules shall require such providers, in addi- ‘‘(2) ANNUAL CREDIT.—The annual credit de- mation about violations of this Act, includ- tion to complying with the other provisions termined with respect to any qualified rail ing— of this Act, to allow subscribers to indicate infrastructure bond is the product of— (A) procedures for the Commission to grant a desire not to receive future mobile service ‘‘(A) the applicable credit rate, multiplied a reward of not less than 20 percent of the commercial messages from the provider— by total civil penalty collected for a violation (A) at the time of subscribing to such serv- ‘‘(B) the outstanding face amount of the of this Act to the first person that— ice; and bond. (i) identifies the person in violation of this (B) in any billing mechanism; and ‘‘(3) APPLICABLE CREDIT RATE.—For pur- Act; and (4) determine a sender of mobile service poses of paragraph (2), the applicable credit (ii) supplies information that leads to the commercial messages may comply with the rate with respect to an issue is the rate, successful collection of a civil penalty by the provisions of this Act, considering the equal to an average market yield (as of the Commission; and unique technical aspects, including the func- day before the date of sale of the issue) on (B) procedures to minimize the burden of tional and character limitations, of devices outstanding long-term corporate debt obliga- submitting a complaint to the Commission that receive such messages. tions (determined under regulations pre- concerning violations of this Act, including (C) OTHER FACTORS CONSIDERED.—The Fed- scribed by the Secretary). procedures to allow the electronic submis- eral Communications Commission shall con- ‘‘(4) CREDIT ALLOWANCE DATE.—For pur- sion of complaints to the Commission; and sider the ability of a sender of a commercial poses of this section, the term ‘credit allow- (2) a report, within 18 months after the electronic mail message to reasonably deter- ance date’ means— ‘‘(A) March 15, date of enactment of this Act, that sets forth mine that the message is a mobile service a plan for requiring commercial electronic ‘‘(B) June 15, commercial message. ‘‘(C) September 15, and mail to be identifiable from its subject line, (d) MOBILE SERVICE COMMERCIAL MESSAGE ‘‘(D) December 15. by means of compliance with Internet Engi- DEFINED.—In this section, the term ‘‘mobile neering Task Force Standards, the use of the service commercial message’’ means a com- Such term includes the last day on which the characters ‘‘ADV’’ in the subject line, or mercial electronic mail message that is bond is outstanding. ‘‘(5) SPECIAL, RULE FOR ISSUANCE AND RE- other comparable identifier, or an expla- transmitted directly to a wireless device DEMPTION.—In the case of a bond which is nation of any concerns the Commission has that is utilized by a subscriber of commer- issued during the 3-month period ending on a that cause the Commission to recommend cial mobile service (as such term is defined credit allowance date, the amount of the against the plan. in section 332(d) of the Communications Act credit determined under this subsection with of 1934 (47 U.S.C. 332(d))) in connection with SEC. 12. RESTRICTIONS ON OTHER respect to such credit allowance date shall TRANSMSSIONS. such service. be a ratable portion of the credit otherwise Section 227(b)(1) of the Communications SEC. 15. SEPARABILITY. determined based on the portion of the 3- Act of 1934 (47 U.S.C. 227(b)(1)) is amended, in If any provision of this Act or the applica- month period during which the bond is out- the matter preceding subparagraph (A), by tion thereof to any person or circumstance is standing. A similar rule shall apply when the inserting ‘‘, or any person outside the United held invalid, the remainer of this Act and bond is redeemed. States if the recipient is within the United the application of such provision to other ‘‘(c) LIMITATION BASED ON AMOUNT OF States’’ after ‘‘United States’’. persons or circumstances shall not be af- TAX.—The credit allowed under subsection SEC. 13. REGULATIONS. fected. (a) for any taxable year shall not exceed the (a) IN GENERAL.—The Commission may SEC. 16. EFFECTIVE DATE. excess of— issue regulations to implement the provi- The provisions of this Act, other than sec- ‘‘(1) the sum of the regular tax liability (as sions of this Act (not including the amend- tion 9, shall take effect on January 1, 2004. defined in section 26(b)) plus the tax imposed ments made by sections 4 and 12). Any such by section 55, over regulations shall be issued in accordance SA 2220. Mr. HOLLINGS (for himself, ‘‘(2) the sum of the credits allowable under with section 553 of title 5, United States Ms. COLLINS, Mr. CARPER, Mr. SPECTER, this part (other than this subpart and sub- Code. Mr. JEFFORDS, and Mr. LAUTENBERG) part C). (b) LIMITATION.—Subsection (a) may not be submitted an amendment intended to ‘‘(d) CREDIT INCLUDED IN GROSS INCOME.— construed to authorize the Commission to Gross income includes the amount of the establish a requirement pursuant to section be proposed by him to the bill S. 1961, credit allowed to the taxpayer under this 5(a)(5)(A) to include any specific words, char- to provide for the revitalization and section (determined without regard to sub- acters, marks, or labels in a commercial enhancement of the American pas- section (c)) and the amount so included shall electronic mail message, or to include the senger and freight rail transportation he treated as interest income.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00161 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16042 CONGRESSIONAL RECORD — SENATE November 25, 2003

‘‘(e) QUALIFIED RAIL INFRASTRUCTURE ‘‘(A) the aggregate of the credits allowable ‘‘(6) REPORTING.—Issuers of qualified rail BOND.—For purposes of this part, the term under this section with respect to such bond infrastructure bonds shall submit reports ‘qualified rail infrastructure bond’ means (determined without regard to subsection similar to the reports required under section any bond issued as part of an issue if— (c)) for taxable years ending during the cal- 149(e).’’. ‘‘(1) the bond is issued by the Rail Infra- endar year in which such cessation occurs (b) AMENDMENTS TO OTHER CODE SEC- structure Finance Corporation and is in reg- and the 2 preceding calendar years, and TIONS.— istered form, ‘‘(B) interest at the underpayment rate (1) REPORTING.—Subsection (d) of section ‘‘(2) the term of each bond which is part of under section 6621 on the amount determined 6049 of the Internal Revenue Code of 1986 (re- such issue does not exceed 20 years, under subparagraph (A) for each calendar lating to returns regarding payments of in- ‘‘(3) the payment of principal with respect year for the period beginning on the first day terest) is amended by adding at the end the to such bond is the obligation of the Rail In- of such calendar year. following new paragraph: frastructure Finance Corporation and not an ‘‘(2) NONCULPABLE DISQUALIFICATIONS.—If a ‘‘(8) REPORTING OF CREDIT ON QUALIFIED obligation of the United States, qualified rail infrastructure bond ceases to RAIL INFRASTRUCTURE BONDS.— ‘‘(4) all proceeds from the sale of the issue qualify, as such a bond due to action taken ‘‘(A) IN GENERAL.—For purposes of sub- are used for the purposes set forth in section by the recipient of a grant made under sec- section (a), the term ‘interest’ includes 507(c)(5) of the Arrive 21 Act, and tion 601, 602, or 603 of the Arrive 21 Act, the amounts includible in gross income under ‘‘(5) 95 percent or more of the net spendable issuer may seek compensation under para- section 54(d) and such amounts shall be proceeds from the sale of such issue are to be graph (1) of this subsection. treated as paid on the credit allowance date used for expenditures incurred after the date ‘‘(h) RAIL INFRASTRUCTURE FINANCE (as defined in section 54(b)(4)). of enactment of this section for any qualified TRUST.— ‘‘(B) REPORTING TO CORPORATIONS, ETC.— project described in section 601, 602, or 603 of ‘‘(1) IN GENERAL.—The following amounts Except as otherwise provided in regulations, the Arrive 21 Act subject to the limitations shall be held in a trust account by the Rail in the case of any interest described in sub- established by that Act. Infrastructure Finance Corporation: paragraph (A), subsection (b)(4) shall be ap- ‘‘(f) SPECIAL RULES RELATING TO NET ‘‘(A) An amount of the proceeds from the plied without regard to subparagraphs (A), SPENDABLE PROCEEDS.— sale of all bonds designated for purposes of (H), (I), (J), (K), and (L)(i) of such subsection. ‘‘(1) IN GENERAL.—Subject to paragraph (2), this section that, when combined with ‘‘(C) REGULATORY AUTHORITY.—The Sec- an issue shall be treated as meeting the re- amounts described in subparagraphs (B), (C), retary may prescribe such regulations as are quirements of this subsection if, as of 6 years and (D), is sufficient— necessary or appropriate to carry out the after the date of issuance, the issuer reason- ‘‘(1) to ensure the Corporation’s ability to purposes of this paragraph, including regula- ably expects— redeem all bonds upon maturity; and tions which require more frequent or more ‘‘(A) to award grants under sections 501, ‘‘(ii) to pay the administrative expenses of detailed reporting.’’. 502, and 503 of the Arrive 21 Act in a total the Corporation and the Rail Infrastructure (2) TREATMENT FOR ESTIMATED TAX PUR- amount that is at least 95 percent of the net Finance Trust. POSES.— spendable proceeds of the issue for 1 or more ‘‘(B) The amount of any on-Federal con- (A) INDIVIDUAL.—Section 6654 of such Code qualified projects within the 6-year period tributions required under section 604(b) of (relating to failure by individual to pay esti- beginning on such date, the Arrive 21 Act. mated income tax) is amended by redesig- ‘‘(B) to incur a binding commitment with a ‘‘(C) The temporary period investment nating subsection (m) as subsection (n) and third party— earnings on proceeds from the sale of such by inserting after subsection (l) the fol- ‘‘(i) to spend at least 10 percent of the net bonds. lowing new subsection: spendable proceeds of the issue, or to com- ‘‘(D) Any earnings on any amounts de- ‘‘(m) SPECIAL RULE FOR HOLDERS OF QUALI- mence construction, with respect to such scribed in subparagraph (A), (B), or (C). FIED RAIL INFRASTRUCTURE BONDS.—For pur- projects within the 12-month period begin- ‘‘(2) USE OF FUNDS.— Amounts in the trust poses of this section, the credit allowed by ning on such date, and account may be used only for investment section 54 to a taxpayer by reason of holding ‘‘(ii) to proceed with due diligence to com- purposes to generate sufficient funds to re- a qualified rail infrastructure bond on a plete such projects, and deem qualified rail infrastructure bonds at credit allowance date shall he treated as if it ‘‘(C) to expend the total amount of the net maturity and pay the administrative ex- were a payment of estimated tax made by spendable proceeds of the issue. penses of the Corporation and the Trust. the taxpayer on such date.’’. ‘‘(2) RULES REGARDING CONTINUING COMPLI- ‘‘(3) USE OF REMAINING FUNDS ON TRUST AC- (13) CORPORATE.—Section 6655 of such Cole ANCE AFTER 6-YEAR DETERMINATION.—If at COUNT.—If the Corporation determines that (relating to failure by corporation to pay es- least 95 percent of the net spendable proceeds the amount in the trust account exceeds the timated income tax) is amended by adding at of the issue is not awarded as grants to be amount required to comply with paragraph the end of subsection (g) the following new expended for 1 or more qualified projects (2), the Corporation may transfer the excess paragraph: within the 6-year period beginning 6 years to the Rail Infrastructure Investment ac- ‘‘(5) SPECIAL RULE FOR HOLDERS OF QUALI- after the date of issuance, but the require- count to be available for awarding grants as FIED RAIL INFRASTRUCTURE BONDS.—For pur- ments of paragraph (1) are otherwise met, an provided for in section 507(c)(5)(B) of the Ar- poses of this section, the credit allowed by issue shall be treated as continuing to meet rive 21 Act. section 54 to a taxpayer by reason of holding the requirements of paragraph (1) if either ‘‘(4) REVERSION OF REMAINING PROCEEDS.— a qualified rail infrastructure bond on a the requirement under subparagraph (A) or Upon retirement of all bonds issued by the credit allowance date shall be treated as if it the requirements under subparagraph (B) are Corporation, any remaining proceeds from were a payment of estimated tax made by met, as follows: the sale of such bonds shall be covered into the taxpayer on such date.’’. ‘‘(A) The issuer uses all unspent proceeds the general fund of the Treasury of the (c) CLERICAL AMENDMENTS.— from the sale of the issue to redeem bonds of United States as miscellaneous receipts. (1) The table of subparts for part IV of sub- the issue within 90 days after the end of such ‘‘(i) OTHER DEFINITIONS AND SPECIAL chapter A of chapter 1 is amended by adding 6-year period and disburses any remaining RULES.—For purposes of this section— at the end the following new item: net spendable proceeds to the Secretary of ‘‘(1) BOND.—The term ‘bond’ includes any ‘‘Subpart H. Nonrefundable Credit for Hold- Treasury within 30 days after the end of such obligation. ers of Qualified Rail Infrastruc- 6-year period. ‘‘(2) NET SPENDABLE PROCEEDS.—The term ture Bonds.’’. ‘‘(B) The issuer— ‘net spendable proceeds’ has the meaning (2) Section 6401(b)(1) is amended by strik- ‘‘(i) awards in grants under sections 501, give such term in section 507(c)(6) of the Ar- ing ‘‘and G’’ and inserting ‘‘G, and H’’. 502, and 503 of the Arrive 21 Act at least 75 rive 21 Act. SEC. 802. ISSUANCE OF REGULATIONS. percent of the net spendable proceeds of the ‘‘(3) QUALIFIED PROJECT.—The term ‘quali- The Secretary of the Treasury shall issue issue for 1 or more qualified projects within fied project’ means any project that is eligi- regulations required under section 54 of the the 6-year period beginning 6 years after the ble for grant funding under section 601, 602, Internal Revenue Code of 1986 not later than date of issuance, and or 603 of the Arrive 21 Act. 90 days after the date of the enactment of ‘‘(ii) awards in grants under sections 501, ‘‘(4) PARTNERSHIP; S CORPORATION; AND this Act. 502, and 503 of the Arrive 21 Act at least 95 OTHER PASS-THRU ENTITIES.—Under regula- SEC. 803. EFFECTIVE DATE. percent of the net spendable proceeds of the tions prescribed by the Secretary, in the case The amendments made by section 701 shall issue for 1 or more qualified projects within of a partnership, trust, S corporation, or apply to obligations issued after the date of the 7-year period beginning 6 years after the other pass-thru entity, rules similar to the enactment of this Act. rules of section 41(g) shall apply with respect date of issuance. On page 3, at the end of the matter appear- ‘‘(g) RECAPTURE OF PORTION OF CREDIT to the credit allowable under subsection (a). ing before line 1, insert the following: WHERE CESSATION OF COMPLIANCE.— ‘‘(5) BONDS HELD BY REGULATED INVESTMENT ‘‘(1) IN GENERAL.—If any bond which when COMPANIES.—If any qualified rail infrastruc- TITLE VIII—RAIL INFRASTRUCTURE TAX issued purported to be a qualified rail infra- ture bond is held by a regulated investment CREDIT BONDS structure bond ceases to be such a qualified company, the credit determined under sub- Sec. 801. Credit to holder of qualified rail in- bond, the issuer shall pay to the United section (a) shall be allowed to shareholders frastructure bonds. States (at the time required by the Sec- of such company under procedures prescribed Sec. 802. Issuance of regulations. retary) an amount equal to the sum of— by the Secretary. Sec. 803. Effective date.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00162 Fmt 0624 Sfmt 0655 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16043 SA 2221. Mr. MCCONNELL (for Mr. by her to the bill S. 1839, to extend the him to the bill S. 1267, to amend the LOTT) proposed an amendment to the Temporary Extended Unemployment District of Columbia Home Rule Act to resolution S. Res. 177, to direct the Compensation Act of 2002; which was provide the District of Columbia with Senate Commission on Art to select an referred to the Committee on Finance; autonomy over its budgets, and for appropriate scene commemorating the as follows: other purposes; which was ordered to Great Compromise of our forefathers Starting on page 1, line one, strike all that lie on the table; as follows: establishing a bicameral Congress with follows and replace with the following: At the appropriate place, insert the fol- equal representation in the United SECTION 1. SHORT TITLE. lowing: States Senate, to be placed in the Sen- This Act may be cited as the ‘‘Unemploy- SEC. ll. METERED TAXICABS IN THE DISTRICT ate wing of the Capitol, and to author- ment Compensation Extension Act of 2003’’. OF COLUMBIA. ize the Committees on Rules and Ad- SEC. 2. REFERENCES. (a) IN GENERAL.—Except as provided in ministration to obtain technical advice Except as otherwise expressly provided, subsection (b) and not later than 1 year after and assistance in carrying out its du- whenever in this Act an amendment is ex- the date of enactment of this Act, the Dis- ties; as follows: pressed in terms of an amendment to a sec- trict of Columbia shall require all taxicabs licensed in the District of Columbia to On page 3, strike lines 2 through 4 and in- tion or other provision, the reference shall charge fares by a metered system. sert the following: ‘‘forefathers, to be placed be considered to be made to a section or (b) DISTRICT OF COLUMBIA OPT OUT.—The in a location in the Senate wing to be deter- other provision of the Temporary Extended mined by the chairman and ranking member Unemployment Compensation Act of 2002 Mayor of the District of Columbia may ex- of the Committee on Rules and Administra- (Public Law 107–147; 26 U.S.C. 3304 note). empt the District of Columbia from the re- tion.’’. SEC. 3. EXTENSION OF THE TEMPORARY EX- quirement under subsection (a) by issuing an TENDED UNEMPLOYMENT COM- executive order that specifically states that SA 2222. Mr. MCCONNELL (for Mr. PENSATION ACT OF 2002. the District of Columbia opts out of the re- LOTT) proposed an amendment to the (a) FOUR-MONTH EXTENSION OF PROGRAM.— quirement to implement a metered fare sys- resolution S. Res. 177, to direct the Section 208 is amended to read as follows: tem for taxicabs. Senate Commission on Art to select an ‘‘SEC. 208. APPLICABILITY. ‘‘(a) IN GENERAL.—Subject to subsection SA 2226. Mr. AKAKA submitted an appropriate scene commemorating the amendment intended to be proposed by Great Compromise of our forefathers (b), an agreement entered into under this title shall apply to weeks of unemploy- him to the bill S. 910, to ensure the establishing a bicameral Congress with ment— continuation of non-homeland security equal representation in the United ‘‘(1) beginning after the date on which such functions of Federal agencies trans- States Senate, to be placed in the Sen- agreement is entered into; and ferred to the Department of Homeland ate wing of the Capitol, and to author- ‘‘(2) ending before May 1, 2004. Security; which was ordered to lie on ize the Committees on Rules and Ad- ‘‘(b) TRANSITION FOR AMOUNT REMAINING IN the table; as follows: ministration to obtain technical advice ACCOUNT.— and assistance in carrying out its du- ‘‘(1) IN GENERAL.—Subject to paragraph (2), On page 3, line 1, beginning with the ties; as follows: in the case of an individual who has amounts comma strike all through page 4, line 19, and remaining in an account established under insert a period. Amend the preamble to read as follows: section 203 as of May 1, 2004, temporary ex- On page 5, line 5, strike the comma and in- Whereas on July 16, 1787, the framers of the tended unemployment compensation shall sert ‘‘(except for the Coast Guard),’’. United States Constitution, meeting at Inde- continue to be payable to such individual On page 5, strike lines 16 through 21, and pendence Hall, reached a supremely impor- from such amounts for any week beginning insert the following: tant agreement, providing for a dual system after such date for which the individual (4) the Committee on the Judiciary of the of congressional representation, such that in meets the eligibility requirements of this Senate; the House of Representatives, each State title. (5) the Committee on Environment and would be assigned a number of seats in pro- ‘‘(2) LIMITATION.—No compensation shall be Public Works of the Senate; portion to its population, and in the Senate, payable by reason of paragraph (1) for any (6) the Committee on Government Reform all States would have an equal number of week beginning after October 31, 2004.’’. of the House of Representatives; seats, an agreement which became known as (b) EFFECTIVE DATE.—The amendment (7) the Select Committee on Homeland Se- the ‘‘Great Compromise’’ or the ‘‘Con- made by this section shall take effect as if curity of the House of Representatives; necticut Compromise’’; and included in the enactment of the Temporary (8) the Committee on Appropriations of the Whereas an appropriate scene commemo- Extended Unemployment Compensation Act House of Representatives; rating the Great Compromise of our fore- of 2002 (Public Law 107–147; 26 U.S.C. 3304 (9) the Committee on the Judiciary of the fathers establishing a bicameral Congress note). House of Representatives; with equal State representation in the (10) the Committee on Transportation and United States Senate should be placed in the SEC. 4. ADDITIONAL REVISION TO CURRENT TEUC–X TRIGGER. Infrastructure of the House of Representa- Senate wing of the Capitol: Now, therefore, Section 203(c)(2)(B) is amended to read as tives; and be it follows: (11) any other relevant committee of the Senate or House of Representatives that re- SA 2223. Mr. MCCONNELL (for Mr. ‘‘(B) such a period would then be in effect for such State under such Act if— quests a copy of the report. LOTT) proposed an amendment to the ‘‘(i) section 203(d) of such Act were applied On page 7, strike lines 16 through 18, and resolution S. Res. 177, to direct the as if it had been amended by striking ‘5’ each insert the following: Senate Commission on Art to select an place it appears and inserting ‘4’; and to— appropriate scene commemorating the ‘‘(ii) with respect to weeks of unemploy- (A) the Committee on Governmental Af- Great Compromise of our forefathers ment beginning on or after the date of enact- fairs of the Senate; establishing a bicameral Congress with ment of this clause— (B) the Committee on Appropriations of equal representation in the United ‘‘(I) paragraph (1)(A) of such section 203(d) the Senate; States Senate, to be placed in the Sen- did not apply; and (C) the Committee on the Judiciary of the Senate; ate wing of the Capitol, and to author- ‘‘(II) clause (ii) of section 203(f)(1)(A) of such Act did not apply.’’. (D) the Committee on Environment and ize the Committees on Rules and Ad- Public Works of the Senate; ministration to obtain technical advice SEC. 5. TEMPORARY STATE AUTHORITY TO WAIVE APPLICATION OF (E) the Committee on Government Reform and assistance in carrying out its du- LOOKBACKS UNDER THE FEDERAL- of the House of Representatives; ties; as follows: STATE EXTENDED UNEMPLOYMENT (F) the Select Committee on Homeland Se- Amend the title so as to read: ‘‘To direct COMPENSATION ACT OF 1970. curity of the House of Representatives; the Senate Commission on Art to select an For purposes of conforming with the provi- (G) the Committee on Appropriations of appropriate scene commemorating the Great sions of the Federal-State Extended Unem- the House of Representatives; Compromise of our forefathers establishing a ployment Compensation Act of 1970 (26 (H) the Committee on the Judiciary of the bicameral Congress with equal representa- U.S.C. 3304 note), a State may, during the pe- House of Representatives; tion in the United States Senate, to be riod beginning on the date of enactment of (I) the Committee on Transportation and placed in the Senate wing of the Capitol, and this Act and ending on June 30, 2004, waive Infrastructure of the House of Representa- to authorize the Committees on Rules and the application of either subsection (d)(1)(A) tives; and Administration to obtain technical advice of section 203 of such Act or subsection (J) any other relevant committee of the and assistance in carrying out its duties.’’. (f)(1)(A)(ii) of such section, or both. Senate or House of Representatives that re- quests a copy of the report. SA 2224. Ms. CANTWELL submitted SA 2225. Mr. LEVIN submitted an (3) CONTENTS.—The report submitted under an amendment intended to be proposed amendment intended to be proposed by paragraph (2) shall contain—

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00163 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16044 CONGRESSIONAL RECORD — SENATE November 25, 2003 On page 8, strike line 15 and all that fol- place and time for Congress to so assemble; We in Washington are prepared to lows through page 9, line 13, and insert the and offer assistance and support to Prime following: (2) Congress shall assemble in accordance Minister Recep Tayyip Erdogan and his (f) APPLICATION OF REQUIREMENTS TO THE with that notification. government in the days ahead as Tur- SECRET SERVICE.— f key shores up security and begins heal- (1) IN GENERAL.—The Director of the Secret Service shall submit each report in accord- CONDEMNING THE TERRORIST ing from these traumatic incidents. ance with subsections (a), (b), and (c). ATTACKS IN ISTANBUL, TURKEY The U.S.-Turkish friendship continues (2) ANNUAL EVALUATIONS AND PERFORMANCE to be strong and will stand united in Mr. MCCONNELL. Mr. President, I REPORTS.—Subsections (d) and (e) shall apply the face of the global threat of ter- ask unanimous consent that the For- with respect to that portion included in each rorism. report under paragraph (1). eign Relations Committee be dis- Mr. MCCONNELL. I ask unanimous (g) COAST GUARD REPORTS.—Any report re- charged from further consideration of consent that the resolution be agreed quired to be submitted to Congress by the S. Res. 273 and the Senate proceed to to, the preamble be agreed to, and any Secretary of Homeland Security, the Com- its immediate consideration. statements relating to the resolution mandant of the Coast Guard, or the Inspec- The PRESIDING OFFICER. Without be printed in the RECORD. tor General of the Department of Homeland objection, it is so ordered. The clerk The PRESIDING OFFICER. Without Security under section 348 of the Maritime will report the resolution by title. objection, it is so ordered. Transportation Security Act of 2002 (116 The assistant legislative clerk read Stat. 2111) shall also be submitted to the The resolution (S. Res. 273) was Governmental Affairs Committee of the Sen- as follows: agreed to. ate and the Committee on Government Re- A resolution (S. Res. 273) condemning the The preamble was agreed to. form of the House of Representatives. terrorist attacks in Istanbul, Turkey, on No- The resolution, with its preamble, vember 15 and 20, 2003, expressing condo- reads as follows: f lences to the families of the individuals mur- S. RES. 273 PRIVILEGE OF THE FLOOR dered in the attacks, expressing sympathies Whereas, in Istanbul, Turkey, on Novem- to the individuals injured in the attacks, and ber 15, 2003, two explosions set off minutes Mr. CORNYN. Madam President, I expressing solidarity with the Republic of ask unanimous consent that Candace apart during Sabbath morning services dev- Turkey and the United Kingdom in the fight astated Neve Shalom, the largest synagogue Shelton and Scott Koelker of my staff against terrorism. in the city, and the Beth Israel synagogue, be granted floor privileges for the dura- There being no objection, the Senate about 3 miles away from Neve Shalom; tion of my remarks. proceeded to consider the resolution. Whereas the casualties of more than 20 The PRESIDING OFFICER. Without Mr. LAUTENBERG. Mr. President, people killed and more than 300 people objection, it is so ordered. last week’s double set of suicide at- wounded in the bombing attacks on the syn- agogues included both Muslims and Jews; f tacks in Istanbul are acts of cowardice targeting both the structures and sym- Whereas, on November 20, 2003, two bombs APPOINTING THE DAY FOR THE exploded in Istanbul at the Consulate of the bols of Turkish coexistence. I grieve CONVENING OF THE SECOND United Kingdom and the HSBC Bank; for the families of the 58 victims and SESSION OF THE ONE HUNDRED Whereas the casualties of more than 25 wish the 750 injured individuals a EIGHTH CONGRESS people killed and 450 people wounded in the speedy recovery. November 20, 2003, bombing attacks included Mr. MCCONNELL. Mr. President, I The terrorists who have attacked Muslims and Christians, and Turks, British ask unanimous consent that the Sen- Turkey in the name of Islam and its diplomats, and visitors to the Republic of ate proceed to the immediate consider- heritage do not know their history. Turkey; ation of H.J. Res. 80, the convening Throughout the Ottoman Empire, Whereas troops of the United Kingdom are date of the 102nd Congress; further, part of the United States-led coalition that Jews, Christians and other minorities liberated Iraq from the regime of Saddam that the resolution be read three times were treated with respect and allowed Hussein and are now present in Iraq under and passed and the motion to recon- to practice their religion freely. Since the auspices of the United Nations Security sider be laid upon the table. Mustafa Kemal Ataturk founded mod- Council; The PRESIDING OFFICER. Without ern Turkey in 1923, Turkey has been Whereas the acts of murder committed on objection, it is so ordered. admired by western and non-western November 15 and 20, 2003, in Istanbul, Tur- The joint resolution (H.J. Res. 80) countries alike as an apotheosis of pro- key, were cowardly and brutal manifesta- was read the third time and passed, as gressive Muslim democracy. tions of international terrorism; follows: Whereas the Government of Turkey imme- In Turkey, pride in a rich heritage diately condemned the terrorist attacks in H. J. RES. 80 and faith coexist with a desire to the strongest possible terms and has vowed Resolved by the Senate and House of Rep- globalize and enhance representative to bring the perpetrators to justice at all resentatives of the United States of America in democracy and the freedom it brings. costs; Congress assembled, During World War II, as Hitler’s Whereas the United States, the United SECTION 1. DAY FOR CONVENING OF SECOND troops were marching from the Bal- Kingdom, and Turkey equally abhor and de- REGULAR SESSION OF ONE HUN- kans and emptying Greek cities of nounce these hateful, repugnant, and loath- DRED EIGHTH CONGRESS. their Jewish populations, Turkey’s some acts of terrorism; The second regular session of the One Hun- president, Ismet Inonu, closed its bor- Whereas, in light of the escalation of anti- dred Eighth Congress shall begin at noon on Semitic activities, the safety and security of Tuesday, January 20, 2004. der. The Jews of Turkey were spared by Jewish people throughout the world is a SEC. 2. AUTHORITY FOR CALLING SPECIAL SES- the principled leadership of their gov- matter of serious concern; SION BEFORE CONVENING OF SEC- ernment, who refused to be complicit Whereas, since Turkey cherishes its tradi- OND REGULAR SESSION. in murder. In my own travels through tions of hospitality and religious tolerance, If the Speaker of the House of Representa- Turkey—from Istanbul to Idirdne—I and in particular its history of more than 500 tives (or the designee of the Speaker) and the have seen the rich fusion of ancient years of good relations between Jews and Majority Leader of the Senate (or the des- and modern and of religious and sec- Muslims, the attacks on synagogues, con- ignee of the Majority Leader), acting jointly ular. I have enjoyed the renowned hos- sular premises, and commercial buildings after consultation with the Minority Leader came as a special shock to the people of Tur- of the House of Representatives and the Mi- pitality offered to all visitors. key and to their friends throughout the nority Leader of the Senate, determine it is The terrorists who attacked the syn- world; in the public interest for Congress to assem- agogues, consulate, and bank in Whereas the United States and Turkey are ble during the period between the end of the Istanbul last week seek to undermine allied by shared values and a common inter- first regular session of the One Hundred the pluralism, diversity, and openness est in building a stable, peaceful, and pros- Eighth Congress at noon on January 3, 2004, that have long characterized Turkish perous world; and the convening of the second regular ses- culture and society. Together, we will Whereas Turkey, a predominantly Muslim sion of the One Hundred Eighth Congress as prevent the terrorists from achieving nation with a secular government, has close provided in section 1— relations with Israel and is also the only pre- (1) the Speaker and Majority Leader, or this aim. Americans, and particularly dominantly Muslim member of the North At- their respective designees, shall notify the New Jerseyans, are intimately familiar lantic Treaty Organization; and Members of the House and Senate, respec- with the pain wreaked by a terrorist Whereas the acts of murder committed on tively, of such determination and of the attack on our homeland. November 15 and 20, 2003, demonstrate again

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00164 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16045 that terrorism respects neither boundaries (2) recommendations for ensuring, to the SEC. 2. AMENDMENT OF TITLE 49, UNITED nor borders: Now, therefore, be it maximum extent practicable, the elimi- STATES CODE. Resolved, That the Senate— nation of disparities in classifications, pay Except as otherwise expressly provided, (1) condemns in the strongest possible and benefits for law enforcement officers whenever in this Act an amendment or re- terms the terrorist attacks in Istanbul, Tur- throughout the Federal Government. peal is expressed in terms of an amendment key, on November 15 and 20, 2003; SEC. 3. EMPLOYEE EXCHANGE PROGRAM BE- to, or a repeal of, a section or other provi- (2) expresses its condolences to the fami- TWEEN FEDERAL EMPLOYEES AND sion, the reference shall be considered to be lies of the individuals murdered in the ter- EMPLOYEES OF STATE AND LOCAL made to a section or other provision of title rorist attacks, expresses its sympathies to GOVERNMENTS. 49, United States Code. the individuals injured in the attacks, and (a) DEFINITIONS.—In this section— SEC. 3. TABLE OF CONTENTS. conveys its hope for the rapid and complete (1) the term ‘‘employing agency’’ means The table of contents for this Act is as fol- recovery of all such injured individuals; the Federal, State, or local government lows: (3) expresses its condolences to the people agency with which the participating em- ployee was employed before an assignment Sec. 1. Short title. and the governments of the Republic of Tur- Sec. 2. Amendment of title 49, United States key and the United Kingdom over the losses under the Program; (2) the term ‘‘participating employee’’ Code. they suffered in these attacks; and Sec. 3. Table of contents. (4) expresses its solidarity with the United means an employee who is participating in Kingdom, Turkey, and all other countries the Program; and TITLE I—AUTHORIZATION OF that stand united against terrorism and (3) the term ‘‘Program’’ means the em- APPROPRIATIONS work together to bring to justice the per- ployee exchange program established under Sec. 101. Authorization of appropriations. petrators of these and other terrorist at- subsection (b). TITLE II—RULEMAKING, INSPECTION, tacks. (b) ESTABLISHMENT.—The President shall ENFORCEMENT, AND PLANNING AU- establish an employee exchange program be- THORITY f tween Federal agencies that perform law en- FEDERAL LAW ENFORCEMENT forcement functions and agencies of State Sec. 201. National crossing inventory. Sec. 202. Grade crossing elimination and PAY AND BENEFITS PARITY ACT and local governments that perform law en- forcement functions. consolidation. Mr. MCCONNELL. Mr. President, I (c) CONDUCT OF PROGRAM.—The Program Sec. 203. Model legislation for driver behav- ask unanimous consent that the Sen- shall be conducted in accordance with sub- ior. ate now proceed to consideration of chapter VI of chapter 33 of title 5, United Sec. 204. Operation Lifesaver. Calendar No. 409, S. 1683. States Code. Sec. 205. Transportation security. The PRESIDING OFFICER. The (d) QUALIFICATIONS.—An employee of an Sec. 206. Railroad accident and incident re- porting. clerk will report the bill by title. employing agency who performs law enforce- ment functions may be selected to partici- Sec. 207. Railroad radio monitoring author- The assistant legislative clerk read ity. as follows: pate in the Program if the employee— (1) has been employed by that employing Sec. 208. Recommendations on fatigue man- A bill (S. 1683) to provide for a report on agency for a period of more than 3 years; agement. parity of pay and benefits among Federal law (2) has had appropriate training or experi- Sec. 209. Positive train control. enforcement officers and to establish an ex- ence to perform the work required by the as- Sec. 210. Positive train control implementa- change program between Federal law en- signment; tion. forcement employees and State and local law (3) has had an overall rating of satisfactory Sec. 211. Survey of rail bridge structures. enforcement employees. or higher on performance appraisals from the Sec. 212. Railroad police. There being no objection, the Senate employing agency during the 3-year period Sec. 213. Federal Railroad Administration proceeded to consider the resolution. before being assigned to another agency employee training. Mr. MCCONNELL. I ask unanimous under this section; and Sec. 214. Report regarding impact on public consent that the bill be read a third (4) agrees to return to the employing agen- safety of train travel in commu- time and passed, the motion to recon- cy after completing the assignment for a pe- nities without grade separation. Sec. 215. Runaway trains emergency response. sider be laid upon the table, and any riod not less than the length of the assign- statements relating to the bill be ment. TITLE III—MISCELLANEOUS PROVISIONS (e) WRITTEN AGREEMENT.—An employee Sec. 301. Technical amendments regarding en- printed in the RECORD. shall enter into a written agreement regard- The PRESIDING OFFICER. Without forcement by the Attorney Gen- ing the terms and conditions of the assign- eral. objection, it is so ordered. ment before beginning the assignment with Sec. 302. Technical amendments to civil penalty The bill (S. 1683) was read the third another agency. provisions. time and passed, as follows: f Sec. 303. Technical amendments to eliminate S. 1683 unnecessary provisions. FEDERAL RAILROAD SAFETY Be it enacted by the Senate and House of Rep- TITLE I—AUTHORIZATION OF resentatives of the United States of America in IMPROVEMENT ACT APPROPRIATIONS Congress assembled, Mr. MCCONNELL. Mr. President, I SEC. 101. AUTHORIZATION OF APPROPRIATIONS. SECTION 1. SHORT TITLE. ask unanimous consent that the Sen- Section 20117(a) is amended to read as fol- This Act may be cited as the ‘‘Federal Law ate proceed to immediate consider- Enforcement Pay and Benefits Parity Act of lows: 2003’’. ation of Calendar No. 358, S. 1402. ‘‘(a) GENERAL.—There are authorized to be appropriated to the Secretary of Transpor- SEC. 2. LAW ENFORCEMENT PAY AND BENEFITS The PRESIDING OFFICER. The PARITY REPORT. clerk will report the bill by title. tation to carry out this chapter— (a) DEFINITION.—In this section, the term The assistant legislative clerk read ‘‘(1) $166,000,000 for the fiscal year ending ‘‘law enforcement officer’’ means an indi- as follows: September 30, 2004; vidual— ‘‘(2) $176,000,000 for the fiscal year ending A bill (S. 1402) to authorize appropriations September 30, 2005; (1)(A) who is a law enforcement officer de- for activities under the Federal railroad fined under section 8331 or 8401 of title 5, ‘‘(3) $185,000,000 for the fiscal year ending safety laws for fiscal years 2004 through 2008, September 30, 2006; United States Code; or and for other purposes. (B) the duties of whose position include the ‘‘(4) $192,000,000 for the fiscal year ending investigation, apprehension, or detention of There being no objection, the Senate September 30, 2007; and individuals suspected or convicted of of- proceeded to consider the bill, which ‘‘(5) $200,000,000 for the fiscal year ending fenses against the criminal laws of the had been reported from the Committee September 30, 2008.’’. United States; and on Commerce, Science, and Transpor- TITLE II—RULEMAKING, INSPECTION, EN- (2) who is employed by the Federal Govern- tation, with amendments as follows: FORCEMENT, AND PLANNING AUTHOR- ment. [Strike the part shown in black ITY (b) REPORT.—Not later than April 30, 2004, brackets and insert the part shown in SEC. 201. NATIONAL CROSSING INVENTORY. the Office of Personnel Management shall italic.] (a) IN GENERAL.—Chapter 201 is amended submit a report to the President of the Sen- by adding at the end the following: ate and the Speaker of the House of Rep- S. 1402 resentatives and the appropriate committees Be it enacted by the Senate and House of Rep- ‘‘§ 20154. National crossing inventory and subcommittees of Congress that in- resentatives of the United States of America in ‘‘(a) INITIAL REPORTING OF INFORMATION cludes— Congress assembled, ABOUT PREVIOUSLY UNREPORTED CROSS- (1) a comparison of classifications, pay, SECTION 1. SHORT TITLE. INGS.—Not later than 6 months after the date and benefits among law enforcement officers This Act may be cited as the ‘‘Federal of enactment of the Federal Railroad Safety across the Federal Government; and Railroad Safety Improvement Act’’. Improvement Act or 6 months after a new

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crossing becomes operational, whichever oc- ‘‘(2) PERIODIC UPDATING OF CROSSING INFOR- actment of this Act, the Secretary shall up- curs later, each railroad carrier shall— MATION.—On a periodic basis beginning not date, reissue, and distribute the publication ‘‘(1) report to the Secretary of Transpor- later than 18 months after the date of enact- entitled ‘‘A Guide to Crossing Consolidation tation current information, as specified by ment of the Federal Railroad Safety Im- and Closure’’. the Secretary, concerning each previously provement Act and on or before September (d) INCENTIVE PAYMENTS FOR AT-GRADE unreported crossing through which it oper- 30 of every third year thereafter, or as other- CROSSING CLOSURES.—Section 130(i)(3)(B) of ates; or wise specified by the Secretary, each State title 23, United States Code is amended by ‘‘(2) ensure that the information has been shall report to the Secretary current infor- striking ‘‘$7,500.’’ and inserting ‘‘$15,000.’’. reported to the Secretary by another rail- mation, as specified by the Secretary, con- (e) FUNDING FOR PLAN.—From amounts au- road carrier that operates through the cross- cerning each crossing located within its bor- thorized by section 20117(a)(1) of title 49, ing. ders. United States Code, to the Secretary, there ‘‘(b) UPDATING OF CROSSING INFORMATION.— ‘‘(3) RULEMAKING AUTHORITY.—The Sec- shall be available $500,000 for fiscal year 2004 (1) On a periodic basis beginning not later retary shall prescribe the regulations nec- to prepare the plan required by this section, than 18 months after the date of enactment essary to implement this section. The Sec- such sums to remain available until the plan of the Federal Railroad Safety Improvement retary may enforce each provision of the is transmitted to the Senate Committee on Act and on or before September 30 of every Federal Railroad Administration’s Highway- Commerce, Science, and Transportation and third year thereafter, or as otherwise speci- Rail Crossing Inventory Instructions and the House of Representatives Committee on fied by the Secretary, each railroad carrier Procedures Manual that is in effect on the Transportation and Infrastructure as re- shall— date of enactment of the Federal Railroad quired by subsection (a). ‘‘(A) report to the Secretary current infor- Safety Improvement Act, until such provi- SEC. 203. MODEL LEGISLATION FOR DRIVER BE- mation, as specified by the Secretary, con- sion is superseded by a regulation issued HAVIOR. cerning each crossing through which it oper- under this subsection. (a) IN GENERAL.—Section 20151 is amend- ates; or ‘‘(4) DEFINITIONS.—In this subsection, the ed— ‘‘(B) ensure that the information has been terms ‘crossing’ and ‘State’ have the mean- (1) by striking the section caption and in- reported to the Secretary by another rail- ing given those terms by section 20154(d)(1) serting the following: road carrier that operates through the cross- and (2), respectively, of title 49.’’. ‘‘§ 20151. Strategy to prevent railroad tres- ing. (d) CIVIL PENALTIES.— passing and vandalism and violation of ‘‘(2) A railroad carrier that sells a crossing (1) Section 21301(a)(1) is amended— grade crossing signals’’; on or after the date of enactment of the Fed- (A) by inserting ‘‘with section 20154 or ’’ (2) by striking ‘‘safety,’’ in subsection (a) eral Railroad Safety Improvement Act, after ‘‘comply’’ in the first sentence; and and inserting ‘‘safety and violations of high- shall, not later than the date that is 18 (B) by inserting ‘‘section 20154 of this title way-rail grade crossing signals,’’; months after the date of enactment of the or’’ after ‘‘violating’’ in the second sentence. (3) by striking the second sentence of sub- Act or 3 months after the sale, whichever oc- (2) Section 21301(a)(2) is amended by insert- section (a) and inserting ‘‘The evaluation curs later, or as otherwise specified by the ing ‘‘The Secretary shall impose a civil pen- and review shall be completed not later than Secretary, report to the Secretary current alty for a violation of section 20154 of this 1 year after the date of enactment of the information, as specified by the Secretary, title.’’ after the first sentence. Federal Railroad Safety Improvement Act.’’; concerning the change in ownership of the SEC. 202. GRADE CROSSING ELIMINATION AND and CONSOLIDATION. crossing. (4) by striking ‘‘MODEL LEGISLATION.— ‘‘(c) RULEMAKING AUTHORITY.—The Sec- (a) CROSSING REDUCTION PLAN.—Within 24 Within 18 months after November 2, 1994, months after the date of enactment of this retary shall prescribe the regulations nec- the’’ in subsection (c) and inserting ‘‘LEGIS- Act, the Secretary of Transportation shall essary to implement this section. The Sec- LATION FOR VANDALISM AND TRESPASSING develop and transmit to the Senate Com- retary may enforce each provision of the PENALTIES.—The’’; and mittee on Commerce, Science, and Transpor- Federal Railroad Administration’s Highway- (5) by adding at the end the following: tation and the House of Representatives Rail Crossing Inventory Instructions and ‘‘(d) MODEL LEGISLATION FOR GRADE-CROSS- Committee on Transportation and Infra- Procedures Manual that is in effect on the ING VIOLATIONS.—Within 2 years after the structure a plan for a joint initiative with date of enactment of the Federal Railroad date of the enactment of the Federal Rail- States and municipalities to systematically Safety Improvement Act, until such provi- road Safety Improvement Act, the Sec- sion is superseded by a regulation issued reduce the number of public and private highway-rail grade crossings by 1 percent per retary, after consultation with State and under this section. local governments and railroad carriers, ‘‘(d) DEFINITIONS.—In this section: year in each of the succeeding 10 years. The plan shall include— shall develop and make available to State ‘‘(1) CROSSING.—The term ‘crossing’ means and local governments model State legisla- a location within a State, other than a loca- (1) a prioritization of crossings for elimi- nation or consolidation, based on consider- tion providing for civil or criminal penalties, tion where one or more railroad tracks cross or both, for violations of highway-rail grade one or more railroad tracks either at grade ations including— (A) whether the crossing has been identi- crossing signals. or grade-separated, where— ‘‘(e) VIOLATION DEFINED.—In this section, fied as high risk; ‘‘(A) a public highway, road, or street, or a the term ‘violation of highway-rail grade (B) whether the crossing is located on a private roadway, including associated side- crossing signals’ includes any action by a designated high-speed corridor or on a rail- walks and pathways, crosses one or more motorist, unless directed by an authorized road right-of-way utilized for the provision railroad tracks either at grade or grade-sepa- safety officer— of intercity or commuter passenger rail serv- rated; or ‘‘(1) to drive around or through a grade ice; and ‘‘(B) a dedicated pedestrian pathway that crossing gate in a position intended to block (C) the existing level of protection; is not associated with a public highway, passage over railroad tracks; (2) suggested guidelines for the establish- road, or street, or a private roadway, crosses ‘‘(2) to drive through a flashing grade ment of new public and private highway-rail one or more railroad tracks either at grade crossing signal; grade crossings, with the goal of avoiding or grade- separated. ‘‘(3) to drive through a grade crossing with unnecessary new crossings through careful ‘‘(2) STATE.—The term ‘State’ means a passive warning signs without determining traffic, zoning, and land use planning; and State of the United States, the District of that the grade crossing could be safely (3) an estimate of the costs of imple- Columbia, or Puerto Rico.’’. crossed before any train arrived; and menting the plan and suggested funding (b) CONFORMING AMENDMENT.—The chapter ‘‘(4) in the vicinity of a grade crossing, analysis for chapter 201 is amended by in- sources. (b) CONSULTATION WITH STATES.—In pre- that creates a hazard of an accident involv- serting after the item relating to section ing injury or property damage at the grade 20153 the following: paring the plan required by subsection (a), the Secretary shall seek the advice of State crossing.’’. ‘‘20154. National crossing inventory.’’. officials, including highway, rail, and judi- (b) CONFORMING AMENDMENT.—The chapter (c) REPORTING AND UPDATING.—Section 130 cial officials, with jurisdiction over crossing analysis for chapter 201 is amended by strik- of title 23, United States Code, is amended by safety, including crossing closures. The Sec- ing the item relating to section 20151 and in- adding at the end the following: retary and State officials shall consider— serting the following: ‘‘(k) NATIONAL CROSSING INVENTORY.— (1) the feasibility of consolidating and im- ‘‘20151. Strategy to prevent railroad tres- ‘‘(1) INITIAL REPORTING OF CROSSING INFOR- proving multiple crossings in a single com- passing and vandalism and vio- MATION.—Not later than 6 months after the munity; lation of grade crossing sig- date of enactment of the Federal Railroad (2) the impact of closure on emergency ve- nals.’’. Safety Improvement Act or within 6 months hicle response time, traffic delays, and pub- SEC. 204. OPERATION LIFESAVER. of a new crossing becoming operational, lic inconvenience; and Section 20117(e) is amended to read as fol- whichever occurs later, each State shall re- (3) the willingness of a municipality to par- lows: port to the Secretary of Transportation cur- ticipate in the elimination or consolidation ‘‘(e) OPERATION LIFESAVER.—In addition to rent information, as specified by the Sec- of crossings. amounts otherwise authorized by law, from retary, concerning each previously unre- (c) GUIDE TO CROSSING CONSOLIDATION AND the amounts authorized to be appropriated ported crossing located within its borders. CLOSURE.—Within 1 year after the date of en- under subsection (a), there shall be available

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00166 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16047 for railroad research and development having received the communication or ac- (1) the varying circumstances of rail car- $1,250,000 for fiscal year 2004, $1,300,000 for fis- quired knowledge of the contents, substance, rier operations and appropriate fatigue coun- cal year 2005, $1,350,000 for fiscal year 2006, purport, effect, or meaning of the commu- termeasures to address those varying cir- $1,400,000 for fiscal year 2007, and $1,460,000 nication (or any part thereof). cumstances, based on current and evolving for fiscal year 2008 to support Operation Life- ‘‘(E) Recording the communication by any scientific and medical research on circadian saver, Inc.’’. means, including writing and tape recording. rhythms and human sleep and rest require- SEC. 205. TRANSPORTATION SECURITY. ‘‘(2) LIMITATION.—The Secretary, and offi- ments; (a) MEMORANDUM OF AGREEMENT.—Within cers, employees, and agents of the Depart- (2) research considered by the Federal 60 days after the date of enactment of this ment of Transportation authorized by the Motor Carrier Safety Administration in de- Act, the Secretary of Transportation and the Secretary may engage in the activities au- vising new hours of service regulations for Secretary of Homeland Security shall exe- thorized by paragraph (1) for the purpose of motor carriers; cute a memorandum of agreement governing accident prevention, including, but not lim- (3) the benefits and costs of modifying the the roles and responsibilities of the Depart- ited to, accident investigation. railroad hours of service statute or imple- ment of Transportation and the Department ‘‘(3) USE OF INFORMATION.— menting other fatigue management counter- of Homeland Security, respectively, in ad- ‘‘(A) Except as provided in subparagraph measures for railroad employees subject to dressing railroad transportation security (F), information obtained through activities chapter 211; and matters, including the processes the depart- authorized by paragraphs (1) and (2) shall not (4) ongoing and planned initiatives by the ments will follow to promote communica- be admitted into evidence in any administra- railroads and rail labor organizations to ad- tions, efficiency, and nonduplication of ef- tive or judicial proceeding except to impeach dress fatigue management. fort. evidence offered by a party other than the (b) REPORT TO CONGRESS.—Not later than 24 months after the date of enactment of this (b) RAIL SAFETY REGULATIONS.—Section Federal Government regarding the existence, 20103(a) is amended to read as follows: electronic characteristics, content, sub- Act, the working group convened under sub- section (a) shall submit a report containing ‘‘(a) REGULATIONS AND ORDERS.—The Sec- stance, purport, effect, meaning, or timing retary of Transportation, as necessary, shall of, or identity of parties to, a communica- its conclusions and recommendations to the Railroad Safety Advisory Committee and the prescribe regulations and issue orders for tion intercepted pursuant to paragraphs (1) Secretary of Transportation. The Secretary every area of railroad safety, including secu- and (2) in proceedings pursuant to sections shall transmit the report to the Senate Com- rity, supplementing laws and regulations in 5122, 20702(b), 20111, 20112, 20113, or 20114 of mittee on Commerce, Science, and Transpor- effect on October 16, 1970. When prescribing a this title. tation and to the House Committee on security regulation or issuing a security ‘‘(B) If information obtained through ac- tivities set forth in paragraphs (1) and (2) is Transportation and Infrastructure. order that affects the safety of railroad oper- (c) RECOMMENDATIONS.—If the Railroad admitted into evidence for impeachment ations, the Secretary of Homeland Security Safety Advisory Committee does not reach a shall consult with the Secretary of Transpor- purposes in accordance with subparagraph consensus on recommendations within 24 tation.’’. (A), the court, administrative law judge, or months after the date of enactment of this SEC. 206. RAILROAD ACCIDENT AND INCIDENT other officer before whom the proceeding is Act, the Secretary of Transportation shall, REPORTING. conducted may make such protective orders within 36 months after the date of enactment Section 20901(a) is amended to read as fol- regarding the confidentiality or use of the of this Act, submit to the Senate Committee lows: information as may be appropriate in the on Commerce, Science, and Transportation ‘‘(a) GENERAL REQUIREMENTS.—On a peri- circumstances to protect privacy and admin- and to the House Committee on Transpor- odic basis specified by the Secretary of ister justice. tation and Infrastructure recommendations Transportation but not less frequently than ‘‘(C) Information obtained through activi- for legislative, regulatory, or other changes quarterly, a railroad carrier shall file a re- ties set forth in paragraphs (1) and (2) shall to address fatigue management for railroad port with the Secretary on all accidents and not be subject to publication or disclosure, employees. incidents resulting in injury or death to an or search or review in connection therewith, SEC. 209. POSITIVE TRAIN CONTROL. individual or damage to equipment or a road- under section 552 of title 5. Within 6 months after the date of enact- bed arising from the carrier’s operations dur- ‘‘(D) No evidence shall be excluded in an ment of this Act, the Secretary of Transpor- ing the specified period. The report shall administrative or judicial proceeding solely tation shall prescribe a final rule addressing state the nature, cause, and circumstances of because the government would not have safety standards for positive train control each reported accident or incident. If a rail- learned of the existence of or obtained such systems or other safety technologies that road carrier assigns human error as a cause, evidence but for the interception of informa- provide similar safety benefits. the report shall include, at the option of tion that is not admissible in such pro- SEC. 210. POSITIVE TRAIN CONTROL IMPLEMEN- each employee whose error is alleged, a ceeding under subparagraph (A). TATION. statement by the employee explaining any ‘‘(E) Nothing in this subsection shall be (a) REPORT ON PILOT PROJECTS.—Within 3 factors the employee alleges contributed to construed to impair or otherwise affect the months after completion of the North Amer- the accident or incident.’’. authority of the United States to intercept a ican Joint Positive Train Control Project, SEC. 207. RAILROAD RADIO MONITORING AU- communication, and collect, retain, analyze, the Secretary of Transportation shall submit THORITY. use, and disseminate the information ob- a report on the progress of on-going and Section 20107 is amended by inserting at tained thereby, under a provision of law completed projects to implement positive the end the following: other than this subsection. train control technology or other safety technologies that provide similar safety ben- ‘‘(c) RAILROAD RADIO COMMUNICATIONS.— ‘‘(F) No information obtained by an activ- efits to the Senate Committee on Commerce, ‘‘(1) IN GENERAL.—To carry out the Sec- ity authorized by paragraph (1)(A) that was Science, and Transportation and to the retary’s responsibilities under this part and undertaken solely for the purpose of accident House Committee on Transportation and In- under chapter 51, the Secretary may author- investigation may be introduced into evi- frastructure. The report shall include rec- ize officers, employees, or agents of the Sec- dence in any administrative or judicial pro- ommendations for future projects and any retary to conduct the following activities at ceeding in which civil or criminal penalties may be imposed. legislative or other changes the Secretary reasonable times: deems necessary. ‘‘(A) Intercepting a radio communication ‘‘(4) APPLICATION WITH OTHER LAW.—Section 705 of the Communications Act of 1934 (47 (b) AUTHORIZATION OF APPROPRIATIONS.— that is broadcast or transmitted over a fre- The Secretary shall establish a grant pro- U.S.C. 605) and chapter 119 of title 18 shall quency authorized for the use of one or more gram with a 50 percent match requirement not apply to conduct authorized by and pur- railroad carriers by the Federal Communica- for the implementation of positive train con- suant to this subsection. tions Commission, with or without making trol technology or other safety technologies their presence known to the sender or other ‘‘(d) REASONABLE TIME DEFINED.—In this that provide similar safety benefits. From receivers of the communication and with or section, the term ‘at reasonable times’ the amounts authorized to be appropriated without obtaining the consent of the sender means at any time that the railroad carrier for each of fiscal years 2004 through 2008 or other receivers of the communication. being inspected or investigated is performing under section 20117(a) of title 49, United ‘‘(B) Communicating the existence, con- its rail transportation business.’’. States Code, there shall be made available tents, substance, purport, effect, or meaning SEC. 208. RECOMMENDATIONS ON FATIGUE MAN- for the grant program— of the communication, subject to the restric- AGEMENT. (1) $16,000,000 for fiscal year 2004; tions in paragraph (3). (a) WORKING GROUP ESTABLISHED.—The (2) $18,000,000 for fiscal year 2005; and ‘‘(C) Receiving or assisting in receiving the Railroad Safety Advisory Committee of the (3) $20,000,000 for each of fiscal years 2006 communication (or any information therein Federal Railroad Administration shall con- through 2008. contained). vene a working group to consider what legis- SEC. 211. SURVEY OF RAIL BRIDGE STRUCTURES. ‘‘(D) Disclosing the contents, substance, lative or other changes the Secretary of The Secretary of Transportation shall con- purport, effect, or meaning of the commu- Transportation deems necessary to address duct a safety survey of the structural integ- nication (or any part thereof of such commu- fatigue management for railroad employees rity of railroad bridges and railroads’ pro- nication) or using the communication (or subject to chapter 211 of title 49, United grams of inspection and maintenance of rail- any information contained therein), subject States Code. The working group shall con- road bridges. The Secretary shall issue a re- to the restrictions in paragraph (3), after sider— port to Congress at the completion of the

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(1) by striking ‘‘$10,000.’’ and inserting ‘‘$10,000 or the amount to which the stated The bill (S. 1402) was ordered to be Section 28101 is amended by striking ‘‘the engrossed for a third reading, was read rail carrier’’ each place it appears and insert- maximum penalty is adjusted if required by ing ‘‘any rail carrier’’. the Federal Civil Penalties Inflation Adjust- the third time, and passed, as follows: ment Act of 1990 (28 U.S.C. 2461 note).’’; and SEC. 213. FEDERAL RAILROAD ADMINISTRATION S. 1402 EMPLOYEE TRAINING. (2) by striking ‘‘$20,000.’’ and inserting Be it enacted by the Senate and House of Rep- From the amounts authorized to be appro- ‘‘$20,000 or the amount to which the stated resentatives of the United States of America in priated for fiscal year 2004 by section maximum penalty is adjusted if required by Congress assembled, the Federal Civil Penalties Inflation Adjust- 20117(a)(1) of title 49, United States Code, SECTION 1. SHORT TITLE. ment Act of 1990 (28 U.S.C. 2461 note).’’. there shall be made available to the Sec- This Act may be cited as the ‘‘Federal (b) ACCIDENT AND INCIDENT VIOLATIONS OF retary of Transportation $300,000 for the Fed- Railroad Safety Improvement Act’’. CHAPTER 201; VIOLATIONS OF CHAPTERS 203 eral Railroad Administration to perform a SEC. 2. AMENDMENT OF TITLE 49, UNITED demonstration program to provide central- THROUGH 209.— (1) Section 21302(a)(2) is amended— STATES CODE. ized training for its employees. The Sec- Except as otherwise expressly provided, retary of Transportation shall report on the (A) by striking ‘‘$10,000.’’ and inserting ‘‘$10,000 or the amount to which the stated whenever in this Act an amendment or re- results of such training and provide further peal is expressed in terms of an amendment recommendations to the Congress. maximum penalty is adjusted if required by the Federal Civil Penalties Inflation Adjust- to, or a repeal of, a section or other provi- SEC. 214. REPORT REGARDING IMPACT ON PUB- sion, the reference shall be considered to be LIC SAFETY OF TRAIN TRAVEL IN ment Act of 1990 (28 U.S.C. 2461 note).’’; and (B) by striking ‘‘$20,000.’’ and inserting made to a section or other provision of title COMMUNITIES WITHOUT GRADE SEP- 49, United States Code. ARATION. ‘‘$20,000 or the amount to which the stated SEC. 3. TABLE OF CONTENTS. (a) STUDY.—The Secretary of Transportation maximum penalty is adjusted if required by shall, in consultation with State and local gov- the Federal Civil Penalties Inflation Adjust- The table of contents for this Act is as fol- ernment officials, conduct a study of the impact ment Act of 1990 (28 U.S.C. 2461 note).’’. lows: of blocked highway-railroad grade crossings on (2) Section 21302 is amended by adding at Sec. 1. Short title. the ability of emergency responders to perform the end the following: Sec. 2. Amendment of title 49, United States public safety and security duties. ‘‘(c) SETOFF.—The Government may deduct Code. (b) REPORT ON THE IMPACT OF BLOCKED HIGH- the amount of a civil penalty imposed or Sec. 3. Table of contents. WAY-RAILROAD GRADE CROSSINGS ON EMERGENCY compromised under this section from TITLE I—AUTHORIZATION OF RESPONDERS.—Not later than 1 year after the amounts it owes the person liable for the APPROPRIATIONS date of enactment of this Act, the Secretary penalty. Sec. 101. Authorization of appropriations. shall submit the results of the study and rec- ‘‘(d) DEPOSIT IN TREASURY.—A civil penalty TITLE II—RULEMAKING, INSPECTION, ommendations for reducing the impact of collected under this section shall be depos- ENFORCEMENT, AND PLANNING AU- blocked crossings on emergency response to the ited in the Treasury as miscellaneous re- THORITY Senate Committee on Commerce, Science, and ceipts.’’. Transportation and the House of Representa- (c) VIOLATIONS OF CHAPTER 211.— Sec. 201. National crossing inventory. tives Committee on Transportation and Infra- (1) Section 21303(a)(2) is amended— Sec. 202. Grade crossing elimination and structure. (A) by striking ‘‘$10,000.’’ and inserting consolidation. Sec. 203. Model legislation for driver behav- SEC. 215. RUNAWAY TRAINS EMERGENCY RE- ‘‘$10,000 or the amount to which the stated SPONSE. maximum penalty is adjusted if required by ior. Sec. 204. Operation Lifesaver. (a) NOTIFICATION PROCEDURES.— the Federal Civil Penalties Inflation Adjust- Sec. 205. Transportation security. (1) REGULATIONS.—The Secretary of Transpor- ment Act of 1990 (28 U.S.C. 2461 note).’’; and Sec. 206. Railroad accident and incident re- tation shall prescribe regulations setting forth (B) by striking ‘‘$20,000.’’ and inserting porting. procedures for a railroad to immediately notify ‘‘$20,000 or the amount to which the stated Sec. 207. Railroad radio monitoring author- first responders in communities that lie in the maximum penalty is adjusted if required by ity. path of a runaway train. the Federal Civil Penalties Inflation Adjust- Sec. 208. Recommendations on fatigue man- (2) TIME FOR ISSUANCE OF REGULATIONS.—The ment Act of 1990 (28 U.S.C. 2461 note).’’. agement. Secretary shall issue the final regulations under (2) Section 21303 is amended by adding at the end the following: Sec. 209. Positive train control. this section not later than 120 days after the Sec. 210. Positive train control implementa- date of enactment of this Act. ‘‘ø(c)¿ (d) SETOFF.—The Government may deduct the amount of a civil penalty imposed tion. (3) DEFINITIONS.—In this section, the term Sec. 211. Survey of rail bridge structures. or compromised under this section from ‘‘runaway train’’ means a locomotive, train, rail Sec. 212. Railroad police. amounts it owes the person liable for the car, or other item of railroad equipment that, at Sec. 213. Federal Railroad Administration penalty. a particular moment in time, is rolling on tracks employee training. ‘‘ø(d)¿ (e) DEPOSIT IN TREASURY.—A civil outside the operations limits of a railroad and is Sec. 214. Report regarding impact on public penalty collected under this section shall be not under the control of the railroad. safety of train travel in com- deposited in the Treasury as miscellaneous (b) RESPONSE PROCEDURES.—Not later than 60 munities without grade separa- receipts.’’. days after the Secretary prescribes the regula- tion. tions under subsection (a), each railroad shall SEC. 303. TECHNICAL AMENDMENTS TO ELIMI- Sec. 215. Runaway trains emergency re- submit to the Department of Transportation for NATE UNNECESSARY PROVISIONS. sponse. the Secretary’s approval the procedures pro- (a) IN GENERAL.—Chapter 201 is amended— TITLE III—MISCELLANEOUS PROVISIONS posed by the railroad for providing the notice (1) by striking the second sentence of sec- described in such subsection. tion 20103(f); Sec. 301. Technical amendments regarding (c) REPORTING OF INCIDENTS REQUIRED.—The (2) by striking section 20145; enforcement by the Attorney Secretary shall require railroads to report to the (3) by striking section 20146; and General. Department of Transportation each incident of (4) by striking section 20150. Sec. 302. Technical amendments to civil pen- a runaway train. (b) CONFORMING AMENDMENTS.—The chap- alty provisions. Sec. 303. Technical amendments to elimi- TITLE III—MISCELLANEOUS PROVISIONS ter analysis for chapter 201 is amended by striking the items relating to sections 20145, nate unnecessary provisions. SEC. 301. TECHNICAL AMENDMENTS REGARDING ENFORCEMENT BY THE ATTORNEY 20146, and 20150 and inserting at the appro- TITLE I—AUTHORIZATION OF GENERAL. priate place in the analysis the following: APPROPRIATIONS Section 20112(a) is amended— ‘‘20145. [Repealed]. SEC. 101. AUTHORIZATION OF APPROPRIATIONS. (1) by inserting ‘‘this part, except for sec- ‘‘20146. [Repealed]. Section 20117(a) is amended to read as fol- tion 20109 of this title, or’’ in paragraph (1) ‘‘20150. [Repealed].’’. lows: after ‘‘enforce,’’; Mr. MCCONNELL. I ask unanimous ‘‘(a) GENERAL.—There are authorized to be (2) by striking ‘‘21301’’ in paragraph (2) and consent that the committee amend- appropriated to the Secretary of Transpor- inserting ‘‘21301, 21302, or 21303’’; ments be agreed to, the bill as amended tation to carry out this chapter— (3) by striking ‘‘subpena’’ in paragraph (3) be read a third time and passed, the ‘‘(1) $166,000,000 for the fiscal year ending and inserting ‘‘subpena, request for produc- September 30, 2004; tion of documents or other tangible things, motion to reconsider be laid on the ‘‘(2) $176,000,000 for the fiscal year ending or request for testimony by deposition’’; and table, en bloc, and any statements re- September 30, 2005; (4) by striking ‘‘chapter.’’ in paragraph (3) lating to the bill be printed in the ‘‘(3) $185,000,000 for the fiscal year ending and inserting ‘‘part.’’. RECORD. September 30, 2006;

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‘‘(4) $192,000,000 for the fiscal year ending serting after the item relating to section (b) CONSULTATION WITH STATES.—In pre- September 30, 2007; and 20153 the following: paring the plan required by subsection (a), ‘‘(5) $200,000,000 for the fiscal year ending ‘‘20154. National crossing inventory.’’. the Secretary shall seek the advice of State September 30, 2008.’’. (c) REPORTING AND UPDATING.—Section 130 officials, including highway, rail, and judi- TITLE II—RULEMAKING, INSPECTION, EN- of title 23, United States Code, is amended by cial officials, with jurisdiction over crossing FORCEMENT, AND PLANNING AUTHOR- adding at the end the following: safety, including crossing closures. The Sec- ITY ‘‘(k) NATIONAL CROSSING INVENTORY.— retary and State officials shall consider— NITIAL REPORTING OF CROSSING INFOR (1) the feasibility of consolidating and im- SEC. 201. NATIONAL CROSSING INVENTORY. ‘‘(1) I - MATION.—Not later than 6 months after the proving multiple crossings in a single com- (a) IN GENERAL.—Chapter 201 is amended date of enactment of the Federal Railroad munity; by adding at the end the following: Safety Improvement Act or within 6 months (2) the impact of closure on emergency ve- ‘‘§ 20154. National crossing inventory of a new crossing becoming operational, hicle response time, traffic delays, and pub- ‘‘(a) INITIAL REPORTING OF INFORMATION whichever occurs later, each State shall re- lic inconvenience; and ABOUT PREVIOUSLY UNREPORTED CROSS- port to the Secretary of Transportation cur- (3) the willingness of a municipality to par- INGS.—Not later than 6 months after the date rent information, as specified by the Sec- ticipate in the elimination or consolidation of enactment of the Federal Railroad Safety retary, concerning each previously unre- of crossings. Improvement Act or 6 months after a new ported crossing located within its borders. (c) GUIDE TO CROSSING CONSOLIDATION AND crossing becomes operational, whichever oc- ‘‘(2) PERIODIC UPDATING OF CROSSING INFOR- CLOSURE.—Within 1 year after the date of en- curs later, each railroad carrier shall— MATION.—On a periodic basis beginning not actment of this Act, the Secretary shall up- ‘‘(1) report to the Secretary of Transpor- later than 18 months after the date of enact- date, reissue, and distribute the publication tation current information, as specified by ment of the Federal Railroad Safety Im- entitled ‘‘A Guide to Crossing Consolidation the Secretary, concerning each previously provement Act and on or before September and Closure’’. unreported crossing through which it oper- 30 of every third year thereafter, or as other- (d) INCENTIVE PAYMENTS FOR AT-GRADE ates; or wise specified by the Secretary, each State CROSSING CLOSURES.—Section 130(i)(3)(B) of ‘‘(2) ensure that the information has been shall report to the Secretary current infor- title 23, United States Code is amended by reported to the Secretary by another rail- mation, as specified by the Secretary, con- striking ‘‘$7,500.’’ and inserting ‘‘$15,000.’’. road carrier that operates through the cross- cerning each crossing located within its bor- (e) FUNDING FOR PLAN.—From amounts au- ing. ders. thorized by section 20117(a)(1) of title 49, ‘‘(b) UPDATING OF CROSSING INFORMATION.— ‘‘(3) RULEMAKING AUTHORITY.—The Sec- United States Code, to the Secretary, there (1) On a periodic basis beginning not later retary shall prescribe the regulations nec- shall be available $500,000 for fiscal year 2004 than 18 months after the date of enactment essary to implement this section. The Sec- to prepare the plan required by this section, of the Federal Railroad Safety Improvement retary may enforce each provision of the such sums to remain available until the plan Act and on or before September 30 of every Federal Railroad Administration’s Highway- is transmitted to the Senate Committee on third year thereafter, or as otherwise speci- Rail Crossing Inventory Instructions and Commerce, Science, and Transportation and fied by the Secretary, each railroad carrier Procedures Manual that is in effect on the the House of Representatives Committee on shall— date of enactment of the Federal Railroad Transportation and Infrastructure as re- ‘‘(A) report to the Secretary current infor- Safety Improvement Act, until such provi- quired by subsection (a). mation, as specified by the Secretary, con- sion is superseded by a regulation issued SEC. 203. MODEL LEGISLATION FOR DRIVER BE- cerning each crossing through which it oper- under this subsection. HAVIOR. ates; or ‘‘(4) DEFINITIONS.—In this subsection, the (a) IN GENERAL.—Section 20151 is amend- ‘‘(B) ensure that the information has been terms ‘crossing’ and ‘State’ have the mean- ed— reported to the Secretary by another rail- ing given those terms by section 20154(d)(1) (1) by striking the section caption and in- road carrier that operates through the cross- and (2), respectively, of title 49.’’. serting the following: ing. (d) CIVIL PENALTIES.— ‘‘(2) A railroad carrier that sells a crossing (1) Section 21301(a)(1) is amended— ‘‘§ 20151. Strategy to prevent railroad tres- on or after the date of enactment of the Fed- (A) by inserting ‘‘with section 20154 or ’’ passing and vandalism and violation of eral Railroad Safety Improvement Act, after ‘‘comply’’ in the first sentence; and grade crossing signals’’; shall, not later than the date that is 18 (B) by inserting ‘‘section 20154 of this title (2) by striking ‘‘safety,’’ in subsection (a) months after the date of enactment of the or’’ after ‘‘violating’’ in the second sentence. and inserting ‘‘safety and violations of high- Act or 3 months after the sale, whichever oc- (2) Section 21301(a)(2) is amended by insert- way-rail grade crossing signals,’’; curs later, or as otherwise specified by the ing ‘‘The Secretary shall impose a civil pen- (3) by striking the second sentence of sub- Secretary, report to the Secretary current alty for a violation of section 20154 of this section (a) and inserting ‘‘The evaluation information, as specified by the Secretary, title.’’ after the first sentence. and review shall be completed not later than concerning the change in ownership of the SEC. 202. GRADE CROSSING ELIMINATION AND 1 year after the date of enactment of the crossing. CONSOLIDATION. Federal Railroad Safety Improvement Act.’’; ‘‘(c) RULEMAKING AUTHORITY.—The Sec- (a) CROSSING REDUCTION PLAN.—Within 24 and retary shall prescribe the regulations nec- months after the date of enactment of this (4) by striking ‘‘MODEL LEGISLATION.— essary to implement this section. The Sec- Act, the Secretary of Transportation shall Within 18 months after November 2, 1994, retary may enforce each provision of the develop and transmit to the Senate Com- the’’ in subsection (c) and inserting ‘‘LEGIS- Federal Railroad Administration’s Highway- mittee on Commerce, Science, and Transpor- LATION FOR VANDALISM AND TRESPASSING Rail Crossing Inventory Instructions and tation and the House of Representatives PENALTIES.—The’’; and Procedures Manual that is in effect on the Committee on Transportation and Infra- (5) by adding at the end the following: date of enactment of the Federal Railroad structure a plan for a joint initiative with ‘‘(d) MODEL LEGISLATION FOR GRADE-CROSS- Safety Improvement Act, until such provi- States and municipalities to systematically ING VIOLATIONS.—Within 2 years after the sion is superseded by a regulation issued reduce the number of public and private date of the enactment of the Federal Rail- under this section. highway-rail grade crossings by 1 percent per road Safety Improvement Act, the Sec- ‘‘(d) DEFINITIONS.—In this section: year in each of the succeeding 10 years. The retary, after consultation with State and ‘‘(1) CROSSING.—The term ‘crossing’ means plan shall include— local governments and railroad carriers, a location within a State, other than a loca- (1) a prioritization of crossings for elimi- shall develop and make available to State tion where one or more railroad tracks cross nation or consolidation, based on consider- and local governments model State legisla- one or more railroad tracks either at grade ations including— tion providing for civil or criminal penalties, or grade-separated, where— (A) whether the crossing has been identi- or both, for violations of highway-rail grade ‘‘(A) a public highway, road, or street, or a fied as high risk; crossing signals. private roadway, including associated side- (B) whether the crossing is located on a ‘‘(e) VIOLATION DEFINED.—In this section, walks and pathways, crosses one or more designated high-speed corridor or on a rail- the term ‘violation of highway-rail grade railroad tracks either at grade or grade-sepa- road right-of-way utilized for the provision crossing signals’ includes any action by a rated; or of intercity or commuter passenger rail serv- motorist, unless directed by an authorized ‘‘(B) a dedicated pedestrian pathway that ice; and safety officer— is not associated with a public highway, (C) the existing level of protection; ‘‘(1) to drive around or through a grade road, or street, or a private roadway, crosses (2) suggested guidelines for the establish- crossing gate in a position intended to block one or more railroad tracks either at grade ment of new public and private highway-rail passage over railroad tracks; or grade-separated. grade crossings, with the goal of avoiding ‘‘(2) to drive through a flashing grade ‘‘(2) STATE.—The term ‘State’ means a unnecessary new crossings through careful crossing signal; State of the United States, the District of traffic, zoning, and land use planning; and ‘‘(3) to drive through a grade crossing with Columbia, or Puerto Rico.’’. (3) an estimate of the costs of imple- passive warning signs without determining (b) CONFORMING AMENDMENT.—The chapter menting the plan and suggested funding that the grade crossing could be safely analysis for chapter 201 is amended by in- sources. crossed before any train arrived; and

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00169 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16050 CONGRESSIONAL RECORD — SENATE November 25, 2003 ‘‘(4) in the vicinity of a grade crossing, railroad carriers by the Federal Communica- not apply to conduct authorized by and pur- that creates a hazard of an accident involv- tions Commission, with or without making suant to this subsection. ing injury or property damage at the grade their presence known to the sender or other ‘‘(d) REASONABLE TIME DEFINED.—In this crossing.’’. receivers of the communication and with or section, the term ‘at reasonable times’ (b) CONFORMING AMENDMENT.—The chapter without obtaining the consent of the sender means at any time that the railroad carrier analysis for chapter 201 is amended by strik- or other receivers of the communication. being inspected or investigated is performing ing the item relating to section 20151 and in- ‘‘(B) Communicating the existence, con- its rail transportation business.’’. serting the following: tents, substance, purport, effect, or meaning SEC. 208. RECOMMENDATIONS ON FATIGUE MAN- ‘‘20151. Strategy to prevent railroad tres- of the communication, subject to the restric- AGEMENT. passing and vandalism and vio- tions in paragraph (3). (a) WORKING GROUP ESTABLISHED.—The Railroad Safety Advisory Committee of the lation of grade crossing sig- ‘‘(C) Receiving or assisting in receiving the Federal Railroad Administration shall con- nals.’’. communication (or any information therein vene a working group to consider what legis- contained). SEC. 204. OPERATION LIFESAVER. lative or other changes the Secretary of Section 20117(e) is amended to read as fol- ‘‘(D) Disclosing the contents, substance, Transportation deems necessary to address lows: purport, effect, or meaning of the commu- fatigue management for railroad employees ‘‘(e) OPERATION LIFESAVER.—In addition to nication (or any part thereof of such commu- subject to chapter 211 of title 49, United amounts otherwise authorized by law, from nication) or using the communication (or States Code. The working group shall con- the amounts authorized to be appropriated any information contained therein), subject sider— under subsection (a), there shall be available to the restrictions in paragraph (3), after (1) the varying circumstances of rail car- for railroad research and development having received the communication or ac- rier operations and appropriate fatigue coun- $1,250,000 for fiscal year 2004, $1,300,000 for fis- quired knowledge of the contents, substance, termeasures to address those varying cir- cal year 2005, $1,350,000 for fiscal year 2006, purport, effect, or meaning of the commu- cumstances, based on current and evolving $1,400,000 for fiscal year 2007, and $1,460,000 nication (or any part thereof). scientific and medical research on circadian for fiscal year 2008 to support Operation Life- ‘‘(E) Recording the communication by any rhythms and human sleep and rest require- saver, Inc.’’. means, including writing and tape recording. ments; SEC. 205. TRANSPORTATION SECURITY. ‘‘(2) LIMITATION.—The Secretary, and offi- (2) research considered by the Federal (a) MEMORANDUM OF AGREEMENT.—Within cers, employees, and agents of the Depart- Motor Carrier Safety Administration in de- 60 days after the date of enactment of this ment of Transportation authorized by the vising new hours of service regulations for Act, the Secretary of Transportation and the Secretary may engage in the activities au- motor carriers; Secretary of Homeland Security shall exe- thorized by paragraph (1) for the purpose of (3) the benefits and costs of modifying the cute a memorandum of agreement governing accident prevention, including, but not lim- railroad hours of service statute or imple- the roles and responsibilities of the Depart- ited to, accident investigation. menting other fatigue management counter- ment of Transportation and the Department ‘‘(3) USE OF INFORMATION.— measures for railroad employees subject to of Homeland Security, respectively, in ad- ‘‘(A) Except as provided in subparagraph chapter 211; and dressing railroad transportation security (F), information obtained through activities (4) ongoing and planned initiatives by the matters, including the processes the depart- authorized by paragraphs (1) and (2) shall not railroads and rail labor organizations to ad- ments will follow to promote communica- be admitted into evidence in any administra- dress fatigue management. tions, efficiency, and nonduplication of ef- tive or judicial proceeding except to impeach (b) REPORT TO CONGRESS.—Not later than fort. evidence offered by a party other than the 24 months after the date of enactment of this (b) RAIL SAFETY REGULATIONS.—Section Federal Government regarding the existence, Act, the working group convened under sub- 20103(a) is amended to read as follows: electronic characteristics, content, sub- section (a) shall submit a report containing ‘‘(a) REGULATIONS AND ORDERS.—The Sec- stance, purport, effect, meaning, or timing its conclusions and recommendations to the retary of Transportation, as necessary, shall of, or identity of parties to, a communica- Railroad Safety Advisory Committee and the prescribe regulations and issue orders for tion intercepted pursuant to paragraphs (1) Secretary of Transportation. The Secretary every area of railroad safety, including secu- and (2) in proceedings pursuant to sections shall transmit the report to the Senate Com- rity, supplementing laws and regulations in 5122, 20702(b), 20111, 20112, 20113, or 20114 of mittee on Commerce, Science, and Transpor- effect on October 16, 1970. When prescribing a this title. tation and to the House Committee on security regulation or issuing a security ‘‘(B) If information obtained through ac- Transportation and Infrastructure. order that affects the safety of railroad oper- tivities set forth in paragraphs (1) and (2) is (c) RECOMMENDATIONS.—If the Railroad ations, the Secretary of Homeland Security admitted into evidence for impeachment Safety Advisory Committee does not reach a shall consult with the Secretary of Transpor- purposes in accordance with subparagraph consensus on recommendations within 24 tation.’’. (A), the court, administrative law judge, or months after the date of enactment of this Act, the Secretary of Transportation shall, SEC. 206. RAILROAD ACCIDENT AND INCIDENT other officer before whom the proceeding is REPORTING. conducted may make such protective orders within 36 months after the date of enactment Section 20901(a) is amended to read as fol- regarding the confidentiality or use of the of this Act, submit to the Senate Committee on Commerce, Science, and Transportation lows: information as may be appropriate in the and to the House Committee on Transpor- ‘‘(a) GENERAL REQUIREMENTS.—On a peri- circumstances to protect privacy and admin- tation and Infrastructure recommendations odic basis specified by the Secretary of ister justice. for legislative, regulatory, or other changes Transportation but not less frequently than ‘‘(C) Information obtained through activi- to address fatigue management for railroad quarterly, a railroad carrier shall file a re- ties set forth in paragraphs (1) and (2) shall employees. port with the Secretary on all accidents and not be subject to publication or disclosure, incidents resulting in injury or death to an or search or review in connection therewith, SEC. 209. POSITIVE TRAIN CONTROL. Within 6 months after the date of enact- individual or damage to equipment or a road- under section 552 of title 5. ment of this Act, the Secretary of Transpor- bed arising from the carrier’s operations dur- ‘‘(D) No evidence shall be excluded in an tation shall prescribe a final rule addressing ing the specified period. The report shall administrative or judicial proceeding solely safety standards for positive train control because the government would not have state the nature, cause, and circumstances of systems or other safety technologies that each reported accident or incident. If a rail- learned of the existence of or obtained such provide similar safety benefits. road carrier assigns human error as a cause, evidence but for the interception of informa- SEC. 210. POSITIVE TRAIN CONTROL IMPLEMEN- the report shall include, at the option of tion that is not admissible in such pro- TATION. each employee whose error is alleged, a ceeding under subparagraph (A). (a) REPORT ON PILOT PROJECTS.—Within 3 statement by the employee explaining any ‘‘(E) Nothing in this subsection shall be months after completion of the North Amer- factors the employee alleges contributed to construed to impair or otherwise affect the ican Joint Positive Train Control Project, the accident or incident.’’. authority of the United States to intercept a the Secretary of Transportation shall submit SEC. 207. RAILROAD RADIO MONITORING AU- communication, and collect, retain, analyze, a report on the progress of on-going and THORITY. use, and disseminate the information ob- completed projects to implement positive Section 20107 is amended by inserting at tained thereby, under a provision of law train control technology or other safety the end the following: other than this subsection. technologies that provide similar safety ben- ‘‘(c) RAILROAD RADIO COMMUNICATIONS.— ‘‘(F) No information obtained by an activ- efits to the Senate Committee on Commerce, ‘‘(1) IN GENERAL.—To carry out the Sec- ity authorized by paragraph (1)(A) that was Science, and Transportation and to the retary’s responsibilities under this part and undertaken solely for the purpose of accident House Committee on Transportation and In- under chapter 51, the Secretary may author- investigation may be introduced into evi- frastructure. The report shall include rec- ize officers, employees, or agents of the Sec- dence in any administrative or judicial pro- ommendations for future projects and any retary to conduct the following activities at ceeding in which civil or criminal penalties legislative or other changes the Secretary reasonable times: may be imposed. deems necessary. ‘‘(A) Intercepting a radio communication ‘‘(4) APPLICATION WITH OTHER LAW.—Section (b) AUTHORIZATION OF APPROPRIATIONS.— that is broadcast or transmitted over a fre- 705 of the Communications Act of 1934 (47 The Secretary shall establish a grant pro- quency authorized for the use of one or more U.S.C. 605) and chapter 119 of title 18 shall gram with a 50 percent match requirement

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00170 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16051 for the implementation of positive train con- providing the notice described in such sub- (1) by striking the second sentence of sec- trol technology or other safety technologies section. tion 20103(f); that provide similar safety benefits. From (c) REPORTING OF INCIDENTS REQUIRED.— (2) by striking section 20145; the amounts authorized to be appropriated The Secretary shall require railroads to re- (3) by striking section 20146; and for each of fiscal years 2004 through 2008 port to the Department of Transportation (4) by striking section 20150. under section 20117(a) of title 49, United each incident of a runaway train. (b) CONFORMING AMENDMENTS.—The chap- States Code, there shall be made available TITLE III—MISCELLANEOUS PROVISIONS ter analysis for chapter 201 is amended by for the grant program— striking the items relating to sections 20145, SEC. 301. TECHNICAL AMENDMENTS REGARDING (1) $16,000,000 for fiscal year 2004; ENFORCEMENT BY THE ATTORNEY 20146, and 20150 and inserting at the appro- (2) $18,000,000 for fiscal year 2005; and GENERAL. priate place in the analysis the following: (3) $20,000,000 for each of fiscal years 2006 Section 20112(a) is amended— ‘‘20145. [Repealed]. through 2008. (1) by inserting ‘‘this part, except for sec- ‘‘20146. [Repealed]. SEC. 211. SURVEY OF RAIL BRIDGE STRUCTURES. tion 20109 of this title, or’’ in paragraph (1) ‘‘20150. [Repealed].’’. The Secretary of Transportation shall con- after ‘‘enforce,’’; f duct a safety survey of the structural integ- (2) by striking ‘‘21301’’ in paragraph (2) and rity of railroad bridges and railroads’ pro- inserting ‘‘21301, 21302, or 21303’’; AWARD OF CONGRESSIONAL GOLD grams of inspection and maintenance of rail- (3) by striking ‘‘subpena’’ in paragraph (3) MEDALS road bridges. The Secretary shall issue a re- and inserting ‘‘subpena, request for produc- port to Congress at the completion of the tion of documents or other tangible things, Mr. MCCONNELL. Mr. President, I survey, including a finding by the Secretary or request for testimony by deposition’’; and ask unanimous consent that the Sen- concerning whether the Secretary should (4) by striking ‘‘chapter.’’ in paragraph (3) ate proceed to the immediate consider- issue regulations governing the safety of and inserting ‘‘part.’’. ation of H.R. 3287 which was received railroad bridges. SEC. 302. TECHNICAL AMENDMENTS TO CIVIL from the House and is at the desk. SEC. 212. RAILROAD POLICE. PENALTY PROVISIONS. The PRESIDING OFFICER. The (a) GENERAL VIOLATIONS OF CHAPTER 201.— Section 28101 is amended by striking ‘‘the clerk will report the bill by title. rail carrier’’ each place it appears and insert- Section 21301(a)(2) is amended— ing ‘‘any rail carrier’’. (1) by striking ‘‘$10,000.’’ and inserting The assistant legislative clerk read SEC. 213. FEDERAL RAILROAD ADMINISTRATION ‘‘$10,000 or the amount to which the stated as follows: EMPLOYEE TRAINING. maximum penalty is adjusted if required by A bill (H.R. 3287) to award congressional From the amounts authorized to be appro- the Federal Civil Penalties Inflation Adjust- gold medals posthumously on behalf of Rev- priated for fiscal year 2004 by section ment Act of 1990 (28 U.S.C. 2461 note).’’; and erend Joseph A. DeLaine, Harry and Eliza 20117(a)(1) of title 49, United States Code, (2) by striking ‘‘$20,000.’’ and inserting Briggs, and Levi Pearson in recognition of there shall be made available to the Sec- ‘‘$20,000 or the amount to which the stated their contributions to the Nation as pioneers retary of Transportation $300,000 for the Fed- maximum penalty is adjusted if required by in the effort to desegregate public schools eral Railroad Administration to perform a the Federal Civil Penalties Inflation Adjust- that led directly to the landmark desegrega- demonstration program to provide central- ment Act of 1990 (28 U.S.C. 2461 note).’’. tion case of Brown, et al., v. the Board of ized training for its employees. The Sec- (b) ACCIDENT AND INCIDENT VIOLATIONS OF Education of Topeka, et al. retary of Transportation shall report on the CHAPTER 201; VIOLATIONS OF CHAPTERS 203 There being no objection, the Senate THROUGH 209.— results of such training and provide further proceeded to consider the bill. recommendations to the Congress. (1) Section 21302(a)(2) is amended— Mr. MCCONNELL. Mr. President, I SEC. 214. REPORT REGARDING IMPACT ON PUB- (A) by striking ‘‘$10,000.’’ and inserting LIC SAFETY OF TRAIN TRAVEL IN ‘‘$10,000 or the amount to which the stated ask unanimous consent that the bill be COMMUNITIES WITHOUT GRADE maximum penalty is adjusted if required by read three times and passed, the mo- SEPARATION. the Federal Civil Penalties Inflation Adjust- tion to reconsider be laid upon the (a) STUDY.—The Secretary of Transpor- ment Act of 1990 (28 U.S.C. 2461 note).’’; and table, and that any statements relating tation shall, in consultation with State and (B) by striking ‘‘$20,000.’’ and inserting thereto be printed in the RECORD with- local government officials, conduct a study ‘‘$20,000 or the amount to which the stated out any intervening action or debate. of the impact of blocked highway-railroad maximum penalty is adjusted if required by grade crossings on the ability of emergency the Federal Civil Penalties Inflation Adjust- The PRESIDING OFFICER. Without responders to perform public safety and secu- ment Act of 1990 (28 U.S.C. 2461 note).’’. objection, it is so ordered. rity duties. (2) Section 21302 is amended by adding at The bill (H.R. 3287) was read the third (b) REPORT ON THE IMPACT OF BLOCKED the end the following: time and passed. HIGHWAY-RAILROAD GRADE CROSSINGS ON ‘‘(c) SETOFF.—The Government may deduct f EMERGENCY RESPONDERS.—Not later than 1 the amount of a civil penalty imposed or year after the date of enactment of this Act, compromised under this section from STATE CRIMINAL ALIEN ASSIST- the Secretary shall submit the results of the amounts it owes the person liable for the ANCE PROGRAM REAUTHORIZA- study and recommendations for reducing the penalty. TION ACT OF 2003 impact of blocked crossings on emergency ‘‘(d) DEPOSIT IN TREASURY.—A civil penalty response to the Senate Committee on Com- collected under this section shall be depos- Mr. MCCONNELL. Mr. President, I merce, Science, and Transportation and the ited in the Treasury as miscellaneous re- ask unanimous consent that the Judi- House of Representatives Committee on ceipts.’’. ciary Committee be discharged from Transportation and Infrastructure. (c) VIOLATIONS OF CHAPTER 211.— further consideration of S. 460, and SEC. 215. RUNAWAY TRAINS EMERGENCY RE- (1) Section 21303(a)(2) is amended— that the Senate proceed to its imme- SPONSE. (A) by striking ‘‘$10,000.’’ and inserting diate consideration. (a) NOTIFICATION PROCEDURES.— ‘‘$10,000 or the amount to which the stated (1) REGULATIONS.—The Secretary of Trans- maximum penalty is adjusted if required by The PRESIDING OFFICER. Without portation shall prescribe regulations setting the Federal Civil Penalties Inflation Adjust- objection, it is so ordered. forth procedures for a railroad to imme- ment Act of 1990 (28 U.S.C. 2461 note).’’; and The clerk will report the bill by title. diately notify first responders in commu- (B) by striking ‘‘$20,000.’’ and inserting The assistant legislative clerk read nities that lie in the path of a runaway train. ‘‘$20,000 or the amount to which the stated as follows: (2) TIME FOR ISSUANCE OF REGULATIONS.— maximum penalty is adjusted if required by A bill (S. 460) to amend the Immigration The Secretary shall issue the final regula- the Federal Civil Penalties Inflation Adjust- and Nationality Act to authorize appropria- tions under this section not later than 120 ment Act of 1990 (28 U.S.C. 2461 note).’’. tion for fiscal years 2004 through 2010 to days after the date of enactment of this Act. (2) Section 21303 is amended by adding at carry out the State Criminal Alien Assist- (3) DEFINITIONS.—In this section, the term the end the following: ance Program. ‘‘runaway train’’ means a locomotive, train, ‘‘(d) SETOFF.—The Government may deduct rail car, or other item of railroad equipment the amount of a civil penalty imposed or There being no objection, the Senate that, at a particular moment in time, is roll- compromised under this section from proceeded to consider the bill. ing on tracks outside the operations limits amounts it owes the person liable for the Mr. MCCONNELL. Mr. President, I of a railroad and is not under the control of penalty. ask unanimous consent that the bill be the railroad. ‘‘(e) DEPOSIT IN TREASURY.—A civil penalty read a third time and passed, the mo- collected under this section shall be depos- (b) RESPONSE PROCEDURES.—Not later than tion to reconsider be laid upon the 60 days after the Secretary prescribes the ited in the Treasury as miscellaneous re- regulations under subsection (a), each rail- ceipts.’’. table, without intervening action or road shall submit to the Department of SEC. 303. TECHNICAL AMENDMENTS TO ELIMI- debate, and that any statements relat- Transportation for the Secretary’s approval NATE UNNECESSARY PROVISIONS. ing to this measure be printed in the the procedures proposed by the railroad for (a) IN GENERAL.—Chapter 201 is amended— RECORD.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00171 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16052 CONGRESSIONAL RECORD — SENATE November 25, 2003 The PRESIDING OFFICER. Without SEC. 3. AUTHORIZATION OF APPROPRIATIONS tack or stroke while on duty shall be pre- objection, it is so ordered. FOR THE UNITED STATES CON- sumed to have died in the line of duty for TRIBUTION TO THE UNITED NA- The bill (S. 460) was read the third purposes of public safety officer survivor TIONS VOLUNTARY FUND FOR VIC- benefits’’, do pass with the following amend- time and passed, as follows: TIMS OF TORTURE. ment: Of the amounts authorized to be appro- S. 460 Strike out all after the enacting clause and priated for fiscal years 2004, 2005, and 2006 Be it enacted by the Senate and House of Rep- insert: pursuant to chapter 3 of part I of the Foreign resentatives of the United States of America in Assistance Act of 1961 (22 U.S.C. 2221 et seq.), SECTION 1. SHORT TITLE. Congress assembled, there are authorized to be appropriated to This Act may be cited as the ‘‘Hometown He- SECTION 1. SHORT TITLE. the President for a voluntary contribution to roes Survivors Benefits Act of 2003’’. This Act may be cited as the ‘‘State Crimi- the United Nations Voluntary Fund for Vic- SEC. 2. FATAL HEART ATTACK OR STROKE ON nal Alien Assistance Program Reauthoriza- tims of Torture $6,000,000 for fiscal year 2004, DUTY PRESUMED TO BE DEATH IN tion Act of 2003’’. $7,000,000 for fiscal year 2005, and $8,000,000 LINE OF DUTY FOR PURPOSES OF PUBLIC SAFETY OFFICER SURVIVOR SEC. 2. AUTHORIZATION OF APPROPRIATIONS for fiscal year 2006. BENEFITS. FOR FISCAL YEARS 2004 THROUGH SEC. 4. AUTHORIZATION OF APPROPRIATIONS 2010. Section 1201 of the Omnibus Crime Control FOR DOMESTIC TREATMENT CEN- and Safe Streets Act of 1968 (42 U.S.C. 3796) is Section 241(i)(5) of the Immigration and TERS FOR VICTIMS OF TORTURE. Nationality Act (8 U.S.C. 1231(i)(5)) is amend- amended by adding at the end the following: (a) AUTHORIZATION OF APPROPRIATIONS.— ‘‘(k) For purposes of this section, if a public ed by striking ‘‘appropriated’’ and all that Section 5(b)(1) of the Torture Victims Relief follows through the period and inserting the safety officer dies as the direct and proximate Act of 1998 (22 U.S.C. 2152 note) is amended to result of a heart attack or stroke, that officer following: ‘‘appropriated to carry out this read as follows: subsection— shall be presumed to have died as the direct and ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— proximate result of a personal injury sustained ‘‘(A) such sums as may be necessary for fis- Of the amounts authorized to be appro- cal year 2003; in the line of duty, if— priated for the Department of Health and ‘‘(1) that officer, while on duty— ‘‘(B) $750,000,000 for fiscal year 2004; Human Services for fiscal years 2004, 2005, ‘‘(C) $850,000,000 for fiscal year 2005; and ‘‘(A) engaged in a situation, and such engage- and 2006, there are authorized to be appro- ment involved nonroutine stressful or strenuous ‘‘(D) $950,000,000 for each of the fiscal years priated to carry out subsection (a) $20,000,000 2006 through 2010.’’. physical law enforcement, fire suppression, res- for fiscal year 2004, $25,000,000 for fiscal year cue, hazardous material response, emergency f 2005, and $30,000,000 for fiscal year 2006.’’. medical services, prison security, disaster relief, (b) EFFECTIVE DATE.—The amendment or other emergency response activity; or TORTURE VICTIMS RELIEF made by subsection (a) shall take effect Oc- ‘‘(B) participated in a training exercise, and REAUTHORIZATION ACT OF 2003 tober 1, 2003. such participation involved nonroutine stressful f or strenuous physical activity; Mr. MCCONNELL. Mr. President, I ‘‘(2) that officer died as a result of a heart at- ask unanimous consent that the For- TORTURE VICTIMS RELIEF tack or stroke suffered— eign Relations Committee be dis- REAUTHORIZATION ACT OF 2003 ‘‘(A) while engaging or participating as de- charged from further consideration of Mr. MCCONNELL. Mr. President, I scribed under paragraph (1); S. 854, and that the Senate proceed to ask unanimous consent that the Sen- ‘‘(B) while still on that duty after so engaging its immediate consideration. ate now proceed to consideration of or participating; or The PRESIDING OFFICER. Without ‘‘(C) not later than 24 hours after so engaging H.R. 1813, which is at the desk. or participating; and objection, it is so ordered. The PRESIDING OFFICER. The The clerk will report the bill by title. ‘‘(3) such presumption is not overcome by com- clerk will report the bill by title. petent medical evidence to the contrary. The assistant legislative clerk read The legislative clerk read as follows: ‘‘(l) For purposes of subsection (k), ‘nonrou- as follows: A bill (H.R. 1813) to amend the Torture tine stressful or strenuous physical’ excludes ac- A bill (S. 854) to authorize a comprehensive Victims Relief Act of 1998 to authorize ap- tions of a clerical, administrative, or nonmanual program of support for victims of torture, propriations to provide assistance for domes- nature.’’. and for other purposes. tic and foreign centers and programs for the Mr. LEAHY. Mr. President, I am There being no objection, the Senate treatment of victims of torture, and for pleased that the Senate again is taking proceeded to consider the bill. other purposes. up and passing the Hometown Heroes Mr. MCCONNELL. Mr. President, I There being no objection, the Senate Survivors Benefits Act of 2003, S. 459. ask unanimous consent that the bill be proceeded to consider the bill. This bill, as amended and passed by read a third time and passed, the mo- Mr. MCCONNELL. Mr. President, I unanimous consent in the House, will tion to reconsider be laid upon the ask unanimous consent that the bill be improve the Department of Justice’s table, and that any statements relating read a third time and passed, the mo- Public Safety Officers Benefits, PSOB, to the bill be printed in the RECORD. tion to reconsider be laid upon the program by allowing survivors of pub- The PRESIDING OFFICER. Without table, and that any statements relating lic safety officers who suffer fatal objection, it is so ordered. to the bill be printed in the RECORD. heart attacks or strokes while partici- The bill (S. 854) was read the third The PRESIDING OFFICER. Without pating in nonroutine stressful or stren- time and passed, as follows: objection, it is so ordered. uous physical activities to qualify for S. 854 The bill (H.R. 1813) was read the third Federal survivor benefits. I want to pay special thanks to Con- SECTION 1. SHORT TITLE. time and passed. This Act may be cited as the ‘‘Torture Vic- f gressman BOB ETHERIDGE, the author of tims Relief Reauthorization Act of 2003’’. the House companion bill, and House HOMETOWN HEROES SURVIVORS Judiciary Committee Chairman SEN- SEC. 2. AUTHORIZATION OF APPROPRIATIONS BENEFITS ACT OF 2003 FOR FOREIGN TREATMENT CENTERS SENBRENNER for their leadership and FOR VICTIMS OF TORTURE. Mr. MCCONNELL. Mr. President, I fortitude while negotiating this legis- (a) AUTHORIZATION OF APPROPRIATIONS.— ask the Chair lay before the Senate a lation. Without their perseverance and Section 4(b)(1) of the Torture Victims Relief message from the House of Representa- willingness to find bipartisan com- Act of 1998 (22 U.S.C. 2152 note) is amended to tives on the bill S. 459, to ensure that promise language, passage of this bill read as follows: ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— a public safety officer who suffers a in the House would not have happened. Of the amounts authorized to be appro- fatal heart attack or stroke while on I also commend Congressman COBLE, priated for fiscal years 2004, 2005, and 2006 duty shall be presumed to have died in Congressman BOBBY SCOTT, the Fra- pursuant to chapter 1 of part I of the Foreign the line of duty for purposes of public ternal Order of Police, FOP, and the Assistance Act of 1961 (22 U.S.C. 2151 et seq.) safety officer survivor benefits. Congressional Fire Services Institute, there are authorized to be appropriated to The Presiding Officer laid before the CFSI, for working with us on bipar- the President to carry out section 130 of such Senate the following message from the tisan compromise language so that we Act $11,000,000 for fiscal year 2004, $12,000,000 House of Representatives: could pass the Senate bill through the for fiscal year 2005, and $13,000,000 for fiscal year 2006.’’. S. 459 House. I thank Senate Judiciary Chair- (b) EFFECTIVE DATE.—The amendment Resolved, That the bill from the Senate (S. man HATCH, Senator LINDSEY GRAHAM, made by subsection (a) shall take effect Oc- 459) entitled ‘‘An Act to ensure that a public the lead Republican cosponsor of this tober 1, 2003. safety officer who suffers a fatal heart at- bill, and Senate leadership for quickly

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00172 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16053 passing the Senate bill, as amended by nonroutine stressful or strenuous phys- that are considered to be in the line of the House, and to send it to the Presi- ical activity. As drafted and passed by duty. The families of officers who died dent’s desk for enactment into law. the Senate by unanimous consent on in such cases are eligible to receive I thank Senators COLLINS, JEFFORDS, May 16, however, members of the House PSOB. SARBANES, SCHUMER, DURBIN, LAN- Judiciary Committee felt the bill’s lan- The changes to PSOB law and regula- DRIEU, NELSON of Florida, CLINTON, guage would cover officers who did not tions brought about by the Hometown SNOWE, KOHL, SMITH, STABENOW, KEN- engage in any physical activity, but Heroes Survivors Benefits Act will NEDY, DAYTON, MILLER and KERRY for merely happened to suffer a heart at- take effect as soon as the President joining me as cosponsors of this multi- tack while at work. Chairman SENSEN- signs the legislation into law. As a re- partisan legislation. BRENNER, Congressman ETHERIDGE, sult, the survivors of public safety offi- Public safety officers are our most Congressman COBLE, Congressman cers who suffer heart attacks or brave and dedicated public servants. I SCOTT, FOP, CFSI and I worked out a strokes while performing nonroutine applaud the efforts of all members of substitute amendment to address those stressful or strenuous physical actions fire, law enforcement and EMS pro- concerns. on or after the date the President signs viders nationwide who are the first to The substitute amendment to S. 459 this bill will be eligible to apply for respond to more than 1.6 million emer- will create a presumption that an offi- PSOB. gency calls annually—whether those cer who died as a direct and proximate Heart attacks and strokes are a re- calls involve a crime, fire, medical result of a heart attack or stroke died ality of the high-pressure jobs of police emergency, spill of hazardous mate- as a direct and proximate result of a officers, firefighters and medics. These rials, natural disaster, act of terrorism, personal injury sustained in the line of are killers that first responders con- or transportation accident—without duty if the following is established: tend with in their jobs, just like speed- reservation. Those men and women act that officer participated in a training exer- ing bullets and burning buildings. They with an unwavering commitment to cise that involved nonroutine stressful or put their lives on the line for us, and the safety and protection of their fel- strenuous physical activity or responded to a we owe their families our gratitude, low citizens, and forever willing to self- situation and such participation or response our respect and our help. No amount of lessly sacrifice their own lives to pro- involved nonroutine stressful or strenuous money can fill the void that is left by vide safe and reliable emergency serv- physical law enforcement, hazardous mate- rial response, emergency medical services, these losses, but ending this disparity ices to their communities. prison security, fire suppression, rescue, dis- can help these families keep food on Sadly, that kind of dedication can re- aster relief or other emergency response ac- the table and shelter over their heads. sult in tragedy, which we all witnessed tivity; that officer suffered a heart attack or I thank the Senate for taking up and on September 11th as scores of fire- stroke while engaging or within 24 hours of passing the Hometown Heroes Sur- fighters, police officers and medics engaging in that physical activity; and such vivors Benefits Act, S. 459, as amended raced into the burning World Trade presumption cannot be overcome by com- and passed by the House, and showing Center and Pentagon with no other petent medical evidence. its support and appreciation for these goal than to save lives. Every year, For the purposes of this act, the extraordinarily brave and heroic public hundreds of public safety officers na- phrase ‘‘nonroutine stressful or stren- safety officers. tionwide lose their lives and thousands uous physical’’ will exclude actions of a Mr. MCCONNELL. I ask unanimous more are injured while performing du- clerical, administrative or non-manual consent that the Senate concur in the ties that subject them to great phys- nature. Included in the category of House amendment and the motion to ical risks. And while we know that ‘‘actions of a clerical, administrative reconsider be laid upon the table with PSOB benefits can never be a sub- or non-manual nature’’ are such tasks no intevening action or debate. stitute for the loss of a loved one, the including, but not limited to, the fol- The PRESIDING OFFICER. Without families of all our fallen heroes deserve lowing: sitting at a desk; typing on a objection, it is so ordered. to collect these funds. computer; talking on the telephone; The PSOB program was established reading or writing paperwork or other f in 1976 to authorize a one-time finan- literature; watching a police or correc- SENATE COMMISSION ON ART TO cial payment to the eligible survivors tions facility’s monitors of cells or SELECT SCENE COMMEMO- of Federal, State, and local public safe- grounds; teaching a class; cleaning or RATING THE GREAT COM- ty officers for all line of duty deaths. organizing an emergency response ve- PROMISE In 2001, Congress improved the PSOB hicle; signing in or out a prisoner; driv- regulations by streamlining the proc- ing a vehicle on routine patrol; and di- Mr. MCCONNELL. I ask unanimous ess for families of public safety officers recting traffic at or participating in a consent that the Rules Committee be killed or injured in connection with local parade. discharged from further action on S. prevention, investigation, rescue or re- Such deaths, while tragic, are not to Res. 177, and the Senate now proceed to covery efforts related to a terrorist at- be considered in the line of duty its consideration. tack. We also retroactively increased deaths. The families of officers who The PRESIDING OFFICER. The the total benefits available by $100,000 died of such causes would therefore not clerk will report the resolution by as part of the USA PATRIOT Act. Sur- be eligible to receive PSOB. title. vivors of first responders killed in the For the purposes of this act, the The assistant legislative clerk read line of duty now receive $267,494 in phrase ‘‘nonroutine stressful or stren- as follows: PSOB. uous physical’’ actions will include, A resolution ( S. Res. 177) to direct the Unfortunately, the issue of covering but are not limited to, the following: Senate Commission on Art to select an ap- heart attack and stroke victims under involvement in a physical struggle propriate scene commemorating the Great PSOB regulations was not addressed at with a suspected or convicted criminal; Compromise of our forefathers establishing a bicameral Congress with equal State rep- that time. performing a search and rescue mis- resentation in the United State Senate, to be Service-connected heart, lung, and sion; performing or assisting with placed in the lunette space in the Senate re- hypertension conditions are silent kill- emergency medical treatment; per- ception room immediately above the en- ers of public safety officers nationwide. forming or assisting with fire suppres- trance into the Senate chamber lobby, and The numerous hidden health dangers sion; involvement in a situation that to authorize the Committee on Rules and dealt with by police officers, fire fight- requires either a high speed response or Administration to obtain technical advice ers and EMS personnel are widely rec- pursuit on foot or in a vehicle; partici- and assistance in carrying out its duties. ognized, but officers face these dangers pation in hazardous material response; There being no objection, the Senate in order to serve and protect their fel- responding to a riot that broke out at proceeded to consider the resolution. low citizens. a public event; and physically engaging Mr. MCCONNELL. I ask unanimous The intent of the legislation Senator in the arrest or apprehension of a sus- consent the amendment at the desk be GRAHAM and I introduced earlier this pected criminal. agreed to; the resolution, as amended, year was to cover officers who suffered The situations listed above are the be agreed to; the amendment to the a heart attack or stroke as a result of types of heart attack and stroke cases preamble be agreed to; the preamble,

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00173 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16054 CONGRESSIONAL RECORD — SENATE November 25, 2003 as amended, be agreed to; the amend- Arizona-Idaho Conservation Act of 1988 (40 The resolution (S. Res. 157) was ment to the title be agreed to, the mo- U.S.C. 188b) (in this section referred to as the agreed to, as follows: ‘‘Commission’’) shall select an appropriate tion to reconsider be laid upon the S. RES. 157 table en bloc and statements be printed scene commemorating the Great Com- promise of our forefathers, to be placed in a SECTION 1. AUTHORIZATION OF PRINTING. in the RECORD location in the Senate wing to be determined (a) IN GENERAL.—There shall be printed The PRESIDING OFFICER. Without by the chairman and ranking member of the with an appropriate illustration as a Senate objection, it is so ordered. Committee on Rules and Administration. document, the prayers by the Reverend The amendment (No. 2221) was agreed (b) CONSULTATION AUTHORIZED.—The Com- Lloyd John Ogilvie, Doctor of Divinity, the to, as follows: mission is authorized to seek the advice of Chaplain of the Senate, at the opening of the (Purpose: To permit the painting to be and recommendations from historians and daily sessions of the Senate during the One placed in the Senate wing at a location de- other sources in carrying out this section, Hundred and Fifth Congress, One Hundred termined by the Committee on Rules and and to reimburse such sources for travel ex- and Sixth Congress, One Hundred and Sev- Administration) penses, in accordance with Senate Travel enth Congress, and One Hundred and Eighth On page 3, strike lines 2 through 4 and in- Regulations. Congress, together with any other prayers sert the following: ‘‘forefathers, to be placed (c) TIMING.—The Commission shall make offered by him during that period in his offi- in a location in the Senate wing to be deter- its selection pursuant to this section, and cial capacity as Chaplain of the Senate. mined by the chairman and ranking member shall commission an artist to begin work, (b) ADDITIONAL COPIES.—There shall be of the Committee on Rules and Administra- not later than the close of the 2d session of printed such additional copies not to exceed tion.’’. the 108th Congress. $3,000 in cost of such documents for the use The amendment (No. 2222) was agreed (d) DELEGATION AUTHORITY.—For purposes of the Joint Committee on Printing. to, as follows: of making the selection required by this sec- SEC. 2. OVERSIGHT OF PRINTING. Amend the preamble to read as follows: tion, a member of the Commission may des- The copy of the document authorized Whereas on July 16, 1787, the framers of the ignate another Senator to act in place of under section 1 shall be prepared under the United States Constitution, meeting at Inde- that member. direction of the Joint Committee on Print- pendence Hall, reached a supremely impor- (e) FUNDING.—The expenses of the Commis- ing. tant agreement, providing for a dual system sion in carrying out this section shall be f of congressional representation, such that in made available from appropriations under the House of Representatives, each State the subheading ‘‘MISCELLANEOUS ITEMS’’ PHARMACY EDUCATION AID ACT would be assigned a number of seats in pro- under the heading ‘‘CONTINGENT EXPENSES OF OF 2003 portion to its population, and in the Senate, THE SENATE’’, on vouchers signed by the Sec- Mr. MCCONNELL. I ask unanimous all States would have an equal number of retary of the Senate and approved by the consent that the Senate proceed to the seats, an agreement which became known as Committee on Rules and Administration. immediate consideration of Calendar the ‘‘Great Compromise’’ or the ‘‘Con- SEC. 2. TECHNICAL ADVICE AND ASSISTANCE. necticut Compromise’’; and No. 370, S. 648. (a) IN GENERAL.—The Chairman of the The PRESIDING OFFICER. The Whereas an appropriate scene commemo- Committee on Rules and Administration rating the Great Compromise of our fore- may seek technical advice and assistance to clerk will report the bill by title. fathers establishing a bicameral Congress the Committee in carrying out its duties The assistant legislative clerk read with equal State representation in the from individuals from the public and private as follows: United States Senate should be placed in the sectors, who shall serve without compensa- A bill (S. 648) to amend the Public Health Senate wing of the Capitol: Now, therefore, tion, at the pleasure of the Chairman. Service Act with respect to health profes- be it (b) NON-GOVERNMENTAL STATUS.—Individ- sions programs regarding the practice of The amendment (No. 2223) was agreed uals providing advice and assistance de- pharmacy. to, as follows: scribed in subsection (a) shall not be deemed There being no objection, the Senate Amend the title so as to read: ‘‘To direct to be— proceeded to consider the bill. which the Senate Commission on Art to select an (1) Members, officers, or employees of the appropriate scene commemorating the Great Senate; or had been reported from the Committee Compromise of our forefathers establishing a (2) providing services to the Senate, for on Health, Education, Labor, and Pen- bicameral Congress with equal representa- purposes of the Senate Code of Official Con- sions, with an amendment to strike all tion in the United States Senate, to be duct. after the enacting clause and inserting placed in the Senate wing of the Capitol, and (c) EXPENSES.—Upon submission to the in lieu thereof the following: to authorize the Committees on Rules and Committee on Rules and Administration of a [Strike the part shown in black Administration to obtain technical advice routine voucher for actual transportation ex- and assistance in carrying out its duties.’’. brackets and insert the part shown in penses incurred in the performance of pro- italic.] The resolution (S. Res. 177), as viding advice and assistance to the Com- amended, was agreed to. mittee, individuals described in subsection S. 648 The preamble, as amended, was (a) may be reimbursed in accordance with Be it enacted by the Senate and House of Rep- agreed to. Senate Travel Regulations. resentatives of the United States of America in Congress assembled, The title amendment, as amended, f was agreed to. øSECTION 1. SHORT TITLE. The resolution, with its preamble, PRINTING THE PRAYERS OF øThis Act may be cited as the ‘‘Pharmacy reads as follows: REVEREND LLOYD JOHN OGILVIE Education Aid Act of 2003’’. ø S. RES. 177 Mr. MCCONNELL. I ask unanimous SEC. 2. FINDINGS. ø Whereas on July 16, 1787, the framers of the consent that the Rules Committee be Congress makes the following findings: ø(1) Pharmacists are an important link in United States Constitution, meeting at Inde- discharged from further consideration pendence Hall, reached a supremely impor- our Nation’s health care system. A critical of S. Res. 157, and the Senate now pro- shortage of pharmacists is threatening the tant agreement, providing for a dual system ceed to its consideration. of congressional representation, such that in ability of pharmacies to continue to provide the House of Representatives, each State The PRESIDING OFFICER. The important prescription related services. ø would be assigned a number of seats in pro- clerk will report the resolution by (2) In the landmark report entitled ‘‘To portion to its population, and in the Senate, title. Err is Human: Building a Safer Health Sys- all States would have an equal number of The assistant legislative clerk read tem’’, the Institute of Medicine reported seats, an agreement which became known as as follows: that medication errors can be partially at- tributed to factors that are indicative of a the ‘‘Great Compromise’’ or the ‘‘Con- A resolution (S. Res. 157) to authorize the necticut Compromise’’; and shortage of pharmacists (such as too many printing of the prayers for the Reverend customers, numerous distractions, and staff Whereas an appropriate scene commemo- Lloyd John Ogilvie. rating the Great Compromise of our fore- shortages). fathers establishing a bicameral Congress There being no objection, the Senate ø(3) Congress acknowledged in the with equal State representation in the proceeded to consider the resolution. Healthcare Research and Quality Act of 1999 United States Senate should be placed in the Mr. MCCONNELL. I ask unanimous (Public Law 106–129) a growing demand for Senate wing of the Capitol: Now, therefore, consent the resolution be agreed to, pharmacists by requiring the Secretary of be it the motion to reconsider be laid upon Health and Human Services to conduct a study to determine whether there is a short- Resolved, the table, and any statements be print- SECTION 1. COMMEMORATION OF THE GREAT age of pharmacists in the United States and, COMPROMISE. ed in the RECORD if so, to what extent. (a) IN GENERAL.—The Senate Commission The PRESIDING OFFICER. Without ø(4) As a result of Congress’ concern about on Art, established under section 901 of the objection, it is so ordered. how a shortage of pharmacists would impact

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00174 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16055 the public health, the Secretary of Health ø‘‘(ii) provides an incentive to serve in ø‘‘(A) In the case of a program under this and Human Services published a report enti- areas with the greatest shortages of phar- section that makes an award of Federal tled ‘‘The Pharmacist Workforce: A Study in macists; and¿ funds for attending an accredited program of Supply and Demand for Pharmacists’’ in De- ø‘‘(iii) provides an incentive with respect pharmacy (in this section referred to as a cember of 2000. to the pharmacist involved remaining in the ‘pharmacy program’), the individual is liable ø(5) ‘‘The Pharmacist Workforce: A Study area and continuing to provide pharmacy to the Federal Government for the amount in Supply and Demand for Pharmacists’’ services after the completion of the period of of such award (including amounts provided found that ‘‘While the overall supply of phar- obligated service under agreement. for expenses related to such attendance), and macists has increased in the past decade, ø‘‘(B) REPAYMENT SCHEDULE.—Any arrange- for interest on such amount at the maximum there has been an unprecedented demand for ment made by the Secretary for the making legal prevailing rate, if the individual— pharmacists and for pharmaceutical care of loan repayments in accordance with this ø‘‘(i) fails to maintain an acceptable level services, which has not been met by the cur- subsection shall provide that any repay- of academic standing in the pharmacy pro- rently available supply’’ and that the ‘‘evi- ments for a year of obligated service shall be gram (as indicated by the program in accord- dence clearly indicates the emergence of a made not later than the end of the fiscal ance with requirements established by the shortage of pharmacists over the past two year in which the individual completes such Secretary); years’’. year of service. ø‘‘(ii) is dismissed from the pharmacy pro- ø(6) The same study also found that ‘‘The ø‘‘(3) TAX LIABILITY.—For the purpose of gram for disciplinary reasons; or factors causing the current shortage are of a providing reimbursements for tax liability ø‘‘(iii) voluntarily terminates the phar- nature not likely to abate in the near future resulting from payments under paragraph (2) macy program. without fundamental changes in pharmacy on behalf of an individual— ø‘‘(B) The individual is liable to the Fed- practice and education.’’ The study projects ø‘‘(A) the Secretary shall, in addition to eral Government for the amount of such that the number of prescriptions filled by such payments, make payments to the indi- award (including amounts provided for ex- community pharmacists will increase by 20 vidual in an amount equal to 39 percent of penses related to such attendance), and for percent by 2004. In contrast, the number of the total amount of loan repayments made interest on such amount at the maximum community pharmacists is expected to in- for the taxable year involved; and legal prevailing rate, if the individual fails ø crease by only 6 percent by 2005. ‘‘(B) may make such additional payments to provide health services in accordance with ø(7) The demand for pharmacists will in- as the Secretary determines to be appro- the program under this section for the period crease as prescription drug use continues to priate with respect to such purpose. of time applicable under the program. ø grow.¿ ‘‘(4) PAYMENT SCHEDULE.—The Secretary ø‘‘(2) WAIVER OR SUSPENSION OF LIABILITY.— may enter into an agreement with the holder ø In the case of an individual or health facility SEC. 3. HEALTH PROFESSIONS PROGRAM RE- of any loan for which payments are made LATED TO THE PRACTICE OF PHAR- making an agreement for purposes of para- MACY. under this section to establish a schedule for graph (1), the Secretary shall provide for the the making of such payments. øPart E of title VII of the Public Health waiver or suspension of liability under such ø‘‘(c) PREFERENCES.—In entering into subsection if compliance by the individual or Service Act (42 U.S.C. 294n et seq.) is amend- agreements under subsection (a), the Sec- the health facility, as the case may be, with ed by adding at the end the following: retary shall give preference to qualified ap- the agreements involved is impossible, or ø‘‘Subpart 3—Pharmacy Workforce plicants with the greatest financial need. would involve extreme hardship to the indi- Development ø‘‘(d) REPORTS.— ø‘‘(1) ANNUAL REPORT.—Not later than 18 vidual or facility, and if enforcement of the ø‘‘SEC. 781. LOAN REPAYMENT PROGRAM. months after the date of enactment of the agreements with respect to the individual or ø‘‘(a) IN GENERAL.—In the case of any indi- Pharmacy Education Aid Act, and annually facility would be unconscionable. vidual—¿ ø thereafter, the Secretary shall prepare and ‘‘(3) DATE CERTAIN FOR RECOVERY.—Sub- ø‘‘(1) who has received a baccalaureate de- submit to Congress a report describing the ject to paragraph (2), any amount that the gree in pharmacy or a Doctor of Pharmacy program carried out under this section, in- Federal Government is entitled to recover degree from an accredited program; and cluding statements regarding— under paragraph (1) shall be paid to the ø‘‘(2) who obtained an educational loan for ø‘‘(A) the number of enrollees, loan repay- United States not later than the expiration pharmacy education costs; ments, and recipients; of the 3-year period beginning on the date the Secretary may enter into an agreement ø‘‘(B) the number of graduates; the United States becomes so entitled. ø with such individual who agrees to serve as ø‘‘(C) the amount of loan repayments ‘‘(4) AVAILABILITY.—Amounts recovered a full-time pharmacist for a period of not made;¿ under paragraph (1) with respect to a pro- less than 2 years at a health care facility ø‘‘(D) which educational institution the re- gram under this section shall be available for with a critical shortage of pharmacists, to cipients attended; the purposes of such program, and shall re- make payments in accordance with sub- ø‘‘(E) the number and placement location main available for such purposes until ex- section (b), for and on behalf of that indi- of the loan repayment recipients at health pended. ø vidual, on the principal of and interest on care facilities with a critical shortage of ‘‘(f) DEFINITION.—In this section, the term any loan of that individual described in para- pharmacists; ‘health care facility’ means an Indian Health graph (2) which is outstanding on the date ø‘‘(F) the default rate and actions required; Service health center, a Native Hawaiian the individual begins such service. ø‘‘(G) the amount of outstanding default health center, a hospital, a pharmacy, a Fed- ø‘‘(b) MANNER OF PAYMENTS.— funds of the loan repayment program; eral qualified health center, a rural health ø‘‘(1) IN GENERAL.—The payments described ø‘‘(H) to the extent that it can be deter- clinic, a nursing home, a home health agen- in subsection (a) may consist of payment, in mined, the reason for the default; cy, a hospice program, a public health clinic, accordance with paragraph (2), on behalf of ø‘‘(I) the demographics of the individuals a State or local department of public health, the individual of the principal, interest, and participating in the loan repayment pro- a skilled nursing facility, an ambulatory sur- related expenses on government and com- gram; and gical center, or any other facility deter- mercial loans received by the individual re- ø‘‘(J) an evaluation of the overall costs and mined appropriate by the Secretary. garding the undergraduate or graduate edu- benefits of the program. ø‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— cation of the individual (or both), which ø‘‘(2) 5-YEAR REPORT.—Not later than 5 For the purpose of payments under agree- loans were made for— years after the date of enactment of the ments entered into under subsection (a), ø‘‘(A) tuition expenses; Pharmacy Education Aid Act, the Secretary there are authorized to be appropriated such ø‘‘(B) all other reasonable educational ex- shall prepare and submit to Congress a re- sums as may be necessary for each of fiscal penses, including fees, books, and laboratory port on how the program carried out under years 2004 through 2008. expenses, incurred by the individual; or this section interacts with other Federal ø‘‘SEC. 782. PHARMACIST FACULTY LOAN PRO- ø‘‘(C) reasonable living expenses as deter- loan repayment programs for pharmacists GRAM. mined by the Secretary. and determining the relative effectiveness of ø‘‘(a) ESTABLISHMENT.—The Secretary, act- ø‘‘(2) PAYMENTS FOR YEARS SERVED.— such programs in increasing pharmacists ing through the Administrator of the Health ø‘‘(A) IN GENERAL.—For each year of obli- practicing in areas with a critical shortage Resources and Services Administration, may gated service that an individual contracts to of pharmacists.¿ enter into an agreement with any school of serve under subsection (a)(3) the Secretary ø‘‘(e) BREACH OF AGREEMENT.— pharmacy for the establishment and oper- may pay up to $35,000 on behalf of the indi- ø‘‘(1) IN GENERAL.—In the case of any pro- ation of a student loan fund in accordance vidual for loans described in paragraph (1). In gram under this section under which an indi- with this section, to increase the number of making a determination of the amount to vidual makes an agreement to provide health qualified pharmacy faculty. pay for a year of such service by an indi- services for a period of time in accordance ø‘‘(b) AGREEMENTS.—Each agreement en- vidual, the Secretary shall consider the ex- with such program in consideration of re- tered into under subsection (a) shall— tent to which each such determination— ceiving an award of Federal funds regarding ø‘‘(1) provide for the establishment of a ø‘‘(i) affects the ability of the Secretary to education as a pharmacist (including an student loan fund by the school involved; maximize the number of agreements that award for the repayment of loans), the fol- ø‘‘(2) provide for deposit in the fund of— may be provided under this section from the lowing applies if the agreement provides ø‘‘(A) the Federal capital contributions to amounts appropriated for such agreements; that this subsection is applicable: the fund;

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00175 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16056 CONGRESSIONAL RECORD — SENATE November 25, 2003 ø‘‘(B) an amount equal to not less than retary may review any determination by a (3) Congress acknowledged in the Healthcare one-ninth of such Federal capital contribu- school of pharmacy under subsection Research and Quality Act of 1999 (Public Law tions, contributed by such school; (c)(6)(B). 106–129) a growing demand for pharmacists by ø‘‘(C) collections of principal and interest ø‘‘(f) INFORMATION TECHNOLOGY.—The Sec- requiring the Secretary of Health and Human on loans made from the fund; and retary may make awards of grants or con- Services to conduct a study to determine wheth- ø‘‘(D) any other earnings of the fund; tracts to qualifying schools of pharmacy for er there is a shortage of pharmacists in the ø‘‘(3) provide that the fund will be used the purpose of assisting such schools in ac- United States and, if so, to what extent. only for loans to students of the school in ac- quiring and installing computer-based sys- (4) As a result of Congress’ concern about how cordance with subsection (c) and for costs of tems to provide pharmaceutical education. a shortage of pharmacists would impact the collection of such loans and interest thereon; Education provided through such systems public health, the Secretary of Health and ø‘‘(4) provide that loans may be made from may be graduate education, professional edu- Human Services published a report entitled such fund only to students pursuing a full- cation, or continuing education. The com- ‘‘The Pharmacist Workforce: A Study in Supply time course of study or, at the discretion of puter-based systems may be designed to pro- and Demand for Pharmacists’’ in December of the Secretary, a part-time course of study; vide on-site education, or education at re- 2000. and mote sites (commonly referred to as distance (5) ‘‘The Pharmacist Workforce: A Study in ø‘‘(5) contain such other provisions as are learning), or both. Supply and Demand for Pharmacists’’ found necessary to protect the financial interests ø‘‘(g) REQUIREMENT REGARDING EDUCATION that ‘‘While the overall supply of pharmacists of the United States. IN PRACTICE OF PHARMACY.—With respect to has increased in the past decade, there has been ø‘‘(c) LOAN PROVISIONS.—Loans from any the school of pharmacy involved, the Sec- an unprecedented demand for pharmacists and student loan fund established by a school retary shall ensure that programs and activi- for pharmaceutical care services, which has not pursuant to an agreement under subsection ties carried out with Federal funds provided been met by the currently available supply’’ and (a) shall be made to an individual on such under this section have the goal of educating that the ‘‘evidence clearly indicates the emer- terms and conditions as the school may de- students to become licensed pharmacists, or gence of a shortage of pharmacists over the past termine, except that— the goal of providing for faculty to recruit, two years’’. ø‘‘(1) such terms and conditions are subject retain, and educate students to become li- (6) The same study also found that ‘‘The fac- to any conditions, limitations, and require- censed pharmacists. tors causing the current shortage are of a na- ø ments prescribed by the Secretary; ‘‘(h) DEFINITIONS.—For purposes of this ture not likely to abate in the near future with- ø‘‘(2) in the case of any individual, the section: out fundamental changes in pharmacy practice ø total of the loans for any academic year ‘‘(1) SCHOOL OF PHARMACY.—the term and education.’’ The study projects that the made by schools of pharmacy from loan ‘school of pharmacy’ means a college or number of prescriptions filled by community funds established pursuant to agreements school of pharmacy (as defined in section pharmacists will increase by 20 percent by 2004. under subsection (a) may not exceed $35,000, 799B) that, in providing clinical experience In contrast, the number of community phar- plus any amount determined by the Sec- for students, requires that the students serve macists is expected to increase by only 6 percent retary on an annual basis to reflect infla- in a clinical rotation in which pharmacist by 2005. tion; services (as defined in section 331(a)(3)(E)) (7) Regarding access to pharmacy services in ø‘‘(3) an amount up to 85 percent of any are provided at or for— rural areas, the study found that ‘‘Remoteness, such loan (plus interest thereon) shall be ø‘‘(A) a medical facility that serves a sub- isolation from other professionals, lower eco- canceled by the school as follows: stantial number of individuals who reside in nomic returns, reduced opportunities for ad- ø‘‘(A) upon completion by the individual of or are members of a medically underserved vancement, and other rural practice characteris- each of the first, second, and third year of community (as so defined); tics remain obstacles’’ to attracting pharmacists. full-time employment, required by the loan ø‘‘(B) an entity described in any of sub- (8) The demand for pharmacists will increase agreement entered into under this sub- paragraphs (A) through (L) of section as prescription drug use continues to grow. section, as a faculty member in a school of 340B(a)(4) (relating to the definition of cov- SEC. 3. HEALTH PROFESSIONS PROGRAMS RE- pharmacy, the school shall cancel 20 percent ered entity); LATED TO THE PRACTICE OF PHAR- of the principle of, and the interest on, the ø‘‘(C) a health care facility of the Depart- MACY. amount of such loan unpaid on the first day ment of Veterans Affairs or of any of the Part E of title VII of the Public Health Service of such employment; and Armed Forces of the United States; Act (42 U.S.C. 294n et seq.) is amended by add- ø‘‘(B) upon completion by the individual of ø‘‘(D) a health care facility of the Bureau ing at the end the following: the fourth year of full-time employment, re- of Prisons; ‘‘Subpart 3—Pharmacy Workforce quired by the loan agreement entered into ø‘‘(E) a health care facility operated by, or Development with funds received from, the Indian Health under this subsection, as a faculty member ‘‘SEC. 781. LOAN REPAYMENT PROGRAM FOR in a school of pharmacy, the school shall Service; or PHARMACISTS SERVING IN CRITICAL cancel 25 percent of the principle of, and the ø‘‘(F) a disproportionate share hospital SHORTAGE FACILITIES. interest on, the amount of such loan unpaid under section 1923 of the Social Security Act. ‘‘(a) IN GENERAL.—In the case of any indi- on the first day of such employment; ø‘‘(2) PHARMACIST SERVICES.—The term vidual— ø‘‘(4) such a loan may be used to pay the ‘pharmacist services’ includes drug therapy ‘‘(1) who has received a baccalaureate degree cost of tuition, fees, books, laboratory ex- management services furnished by a phar- in pharmacy or a Doctor of Pharmacy degree penses, and other reasonable education ex- macist, individually or on behalf of a phar- from an accredited program; penses; macy provider, and such services and sup- ‘‘(2) who obtained an educational loan for ø‘‘(5) such a loan shall be repayable in plies furnished incident to the pharmacist’s pharmacy education costs; and equal or graduated periodic installments drug therapy management services, that the ‘‘(3) who is licensed without restrictions in the (with the right of the borrower to accelerate pharmacist is legally authorized to perform State in which the designated health care facil- repayment) over the 10-year period that be- (in the State in which the individual per- ity is located; gins 9 months after the individual ceases to forms such services) in accordance with the Secretary may enter into an agreement with pursue a course of study at a school of phar- State law (or the State regulatory mecha- such individual who agrees to serve as a full- macy; and nism provided for by State law). time pharmacist for a period of not less than 2 ø‘‘(6) such a loan shall— ø‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— years at a designated health care facility, to ø‘‘(A) beginning on the date that is 3 For the purpose of carrying out this section, make payments in accordance with subsection months after the individual ceases to pursue there are authorized øto be appropriated (b), for and on behalf of that individual, on the a course of study at a school of pharmacy, such sums as may be necessary for each of principal of and interest on any loan of that in- bear interest on the unpaid balance of the the fiscal years 2004 through 2008.’’.¿ dividual described in paragraph (2) which is loan at the rate of 3 percent per annum; or ƒSECTION 1. SHORT TITLE. outstanding on the date the individual begins ø‘‘(B) subject to subsection (e), if the This Act may be cited as the ‘‘Pharmacy Edu- such service. school of pharmacy determines that the indi- cation Aid Act of 2003’’. ‘‘(b) MANNER OF PAYMENTS.— vidual will not complete such course of study SEC. 2. FINDINGS. ‘‘(1) IN GENERAL.—The payments described in or serve as a faculty member as required Congress makes the following findings: subsection (a) may consist of payment, in ac- under the loan agreement under this sub- (1) Pharmacists are an important link in our cordance with paragraph (2), on behalf of the section, bear interest on the unpaid balance Nation’s health care system. A critical shortage individual of the principal, interest, and related of the loan at the prevailing market rate. of pharmacists is threatening the ability of expenses on government and commercial loans ø‘‘(d) PAYMENT OF PROPORTIONATE SHARE.— pharmacies to continue to provide important received by the individual regarding the under- Where all or any part of a loan, or interest, prescription related services. graduate or graduate education of the indi- is canceled under this section, the Secretary (2) In the landmark report entitled ‘‘To Err is vidual (or both), which loans were made for— shall pay to the school an amount equal to Human: Building a Safer Health System’’, the ‘‘(A) tuition expenses; the school’s proportionate share of the can- Institute of Medicine reported that medication ‘‘(B) all other reasonable educational ex- celed portion, as determined by the Sec- errors can be partially attributed to factors that penses, including fees, books, and laboratory ex- retary. are indicative of a shortage of pharmacists penses, incurred by the individual; or ø‘‘(e) REVIEW BY SECRETARY.—At the re- (such as too many customers, numerous distrac- ‘‘(C) reasonable living expenses as determined quest of the individual involved, the Sec- tions, and staff shortages). by the Secretary.

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‘‘(2) PAYMENTS FOR YEARS SERVED.— apply to the National Health Service Corps ‘‘(B) the payments made by the school pursu- ‘‘(A) IN GENERAL.—For each year of obligated Loan Repayment Program under subpart III of ant to subparagraph (A) on behalf of the indi- service that an individual contracts to serve part D of title III, including the applicability of vidual will be in addition to the compensation under subsection (a) the Secretary may pay up provisions regarding reimbursements for in- that the individual would otherwise receive for to $35,000 on behalf of the individual for loans creased tax liability and bankruptcy. serving as a member of such faculty; and described in paragraph (1). In making a deter- ‘‘(2) BREACH OF AGREEMENT.—An individual ‘‘(C) the school, in making a determination of mination of the amount to pay for a year of who enters into an agreement under subsection the amount of compensation to be provided by such service by an individual, the Secretary (a) shall be liable to the Federal Government for the school to the individual for serving as a shall consider the extent to which each such de- the amount of the award under such agreement member of the faculty, will make the determina- termination— (including amounts provided for expenses re- tion without regard to the amount of payments ‘‘(i) affects the ability of the Secretary to lated to such attendance), and for interest on made (or to be made) to the individual by the maximize the number of agreements that may be such amount at the maximum legal prevailing Federal Government under subsection (a). provided under this section from the amounts rate, if the individual fails to provide health ‘‘(d) APPLICABILITY OF CERTAIN PROVISIONS.— appropriated for such agreements; services in accordance with the program under The provisions of sections 338C, 338G, and 338I ‘‘(ii) provides an incentive to serve in areas this section for the period of time applicable shall apply to the program established in sub- with the greatest shortages of pharmacists; and under the program. section (a) to the same extent and in the same ‘‘(iii) provides an incentive with respect to the ‘‘(3) WAIVER OR SUSPENSION OF LIABILITY.—In manner as such provisions apply to the National pharmacist involved remaining in the area and the case of an individual or health facility mak- Health Service Corps Loan Repayment Program continuing to provide pharmacy services after ing an agreement for purposes of subsection (a), established in subpart III of part D of title III, the completion of the period of obligated service the Secretary shall provide for the waiver or including the applicability of provisions regard- under agreement. suspension of liability under paragraph (2) if ing reimbursements for increased tax liability ‘‘(B) REPAYMENT SCHEDULE.—Any arrange- compliance by the individual or the health facil- and regarding bankruptcy. ment made by the Secretary for the making of ity, as the case may be, with the agreement in- ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— loan repayments in accordance with this sub- volved is impossible, or would involve extreme For the purpose of carrying out this section, section shall provide that any repayments for a hardship to the individual or facility, and if en- there are authorized to be appropriated such year of obligated service shall be made not later forcement of the agreements with respect to the sums as may be necessary for each of fiscal than the end of the fiscal year in which the in- individual or facility would be unconscionable. years 2004 through 2008. ‘‘(4) DATE CERTAIN FOR RECOVERY.—Subject to dividual completes such year of service. ‘‘SEC. 783. DEFINITIONS. ‘‘(3) TAX LIABILITY.—For the purpose of pro- paragraph (3), any amount that the Federal Government is entitled to recover under para- ‘‘In this subpart: viding reimbursements for tax liability resulting ‘‘(1) SCHOOL OF PHARMACY.—The term ‘school graph (2) shall be paid to the United States not from payments under paragraph (2) on behalf of of pharmacy’ means a college or school of phar- later than the expiration of the 3-year period be- an individual— macy (as defined in section 799B) that, in pro- ginning on the date the United States becomes ‘‘(A) the Secretary shall, in addition to such viding clinical experience for students, requires so entitled. payments, make payments to the individual in that the students serve in a clinical rotation in an amount equal to 39 percent of the total ‘‘(5) AVAILABILITY.—Amounts recovered under paragraph (2) with respect to a program under which pharmacist services (as defined in section amount of loan repayments made for the taxable 331(a)(3)(E)) are provided at or for— year involved; and this section shall be available for the purposes of such program, and shall remain available for ‘‘(A) a medical facility that serves a substan- ‘‘(B) may make such additional payments as tial number of individuals who reside in or are the Secretary determines to be appropriate with such purposes until expended. ‘‘(f) DEFINITION.—In this section, the term members of a medically underserved community respect to such purpose. (as so defined); ‘‘(4) PAYMENT SCHEDULE.—The Secretary may ‘health care facility’ means a facility with a critical shortage of pharmacists as determined ‘‘(B) an entity described in any of subpara- enter into an agreement with the holder of any graphs (A) through (L) of section 340B(a)(4) (re- loan for which payments are made under this by the Secretary. UTHORIZATION OF APPROPRIATIONS.— lating to the definition of covered entity); section to establish a schedule for the making of ‘‘(g) A For the purpose of payments under agreements ‘‘(C) a health care facility of the Department such payments. entered into under subsection (a), there are au- of Veterans Affairs or of any of the Armed ‘‘(c) PREFERENCES.—In entering into agree- thorized to be appropriated such sums as may be Forces of the United States; ments under subsection (a), the Secretary shall ‘‘(D) a health care facility of the Bureau of give preference to qualified applicants with the necessary for each of fiscal years 2004 through 2008. Prisons; greatest financial need. ‘‘(E) a health care facility operated by, or ‘‘(d) REPORTS.— ‘‘SEC. 782. PHARMACY FACULTY LOAN REPAY- MENT PROGRAM. with funds received from, the Indian Health ‘‘(1) ANNUAL REPORT.—Not later than 18 ‘‘(a) ESTABLISHMENT OF PROGRAM.—The Sec- Service; or months after the date of enactment of the Phar- ‘‘(F) a disproportionate share hospital under macy Education Aid Act, and annually there- retary shall establish a program under which the Secretary will enter into contracts with indi- section 1923 of the Social Security Act. after, the Secretary shall prepare and submit to ‘‘(2) PHARMACIST SERVICES.—The term ‘phar- Congress a report describing the program carried viduals described in subsection (b) and such in- dividuals will agree to serve as faculty members macist services’ includes drug therapy manage- out under this section, including statements re- ment services furnished by a pharmacist, indi- garding— of schools of pharmacy in consideration of the Federal Government agreeing to pay, for each vidually or on behalf of a pharmacy provider, ‘‘(A) the number of applicants and contract and such services and supplies furnished inci- recipients; year of such service, not more than $35,000 of the principal and interest of the educational dent to the pharmacist’s drug therapy manage- ‘‘(B) the amount of loan repayments made; ment services, that the pharmacist is legally au- ‘‘(C) which educational institution the recipi- loans of such individuals. ‘‘(b) ELIGIBLE INDIVIDUALS.—An individual is thorized to perform (in the State in which the ents attended; individual performs such services) in accordance ‘‘(D) the number and practice locations of the described in this subsection if such individual— ‘‘(1) has a baccalaureate degree in pharmacy with State law (or the State regulatory mecha- loan repayment recipients at health care facili- or a Doctor of Pharmacy degree from an accred- nism provided for by State law).’’. ties with a critical shortage of pharmacists; ited program; or ‘‘(E) the default rate and actions required; Mr. MCCONNELL. I ask unanimous ‘‘(2) is enrolled as a full-time student— consent the committee substitute ‘‘(F) the amount of outstanding default funds ‘‘(A) in an accredited pharmacy program; and of the loan repayment program; ‘‘(B) in the final year of a course of a study amendment be agreed to; the bill, as ‘‘(G) to the extent that it can be determined, or program, offered by such institution and ap- amended, be read the third time and the reason for the default; proved by the Secretary, leading to a bacca- passed; the motion to reconsider be ‘‘(H) the demographics of the individuals par- laureate degree in pharmacy or a Doctor of laid upon the table, and any state- ticipating in the loan repayment program; and Pharmacy degree from such a school. ments be printed in the RECORD. ‘‘(I) an evaluation of the overall costs and ‘‘(c) REQUIREMENTS REGARDING FACULTY PO- The PRESIDING OFFICER. Without benefits of the program. SITIONS.—The Secretary may not enter into a objection, it is so ordered. ‘‘(2) 5-YEAR REPORT.—Not later than 5 years contract under subsection (a) unless— after the date of enactment of the Pharmacy ‘‘(1) the individual involved has entered into The committee amendment in the Education Aid Act, the Secretary shall prepare a contract with a school of pharmacy to serve as nature of a substitute was agreed to. and submit to Congress a report on how the pro- a member of the faculty of the school for not less The bill (S. 648), as amended, was gram carried out under this section interacts than 2 years; and read the third time and passed. with other Federal loan repayment programs for ‘‘(2) the contract referred to in paragraph (1) f pharmacists and determining the relative effec- provides that— tiveness of such programs in increasing phar- ‘‘(A) the school will, for each year for which MEDICAL DEVICES TECHNICAL macists practicing in underserved areas. the individual will serve as a member of the fac- CORRECTIONS ACT ‘‘(e) APPLICATION OF CERTAIN PROVISIONS.— ulty under contract with the school, make pay- C ‘‘(1) IN GENERAL.—The provisions of section ments of the principal and interest due on the Mr. M CONNELL. Mr. President, I 338C, 338G, and 338I shall apply to the program educational loans of the individual for such ask unanimous consent that the Sen- established under this section in the same man- year in an amount equal to the amount of such ate proceed to the immediate consider- ner and to the same extent as such provisions payments made by the Secretary for the year; ation of Calendar No. 412, S. 1881.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00177 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16058 CONGRESSIONAL RECORD — SENATE November 25, 2003 The PRESIDING OFFICER. The show’’ and inserting ‘‘firms, which show’’; and inserting ‘‘inspections of the establish- clerk will report the bill by title. and ment during the previous 4 years’’; and The assistant legislative clerk read ø(II) in subparagraph (C)(i), by striking ø(bb) by inserting ‘‘section’’ after ‘‘pursu- as follows: ‘‘Where’’ and inserting ‘‘For fiscal year 2004 ant to’’; and and each subsequent fiscal year, where’’; ø(II) in the third sentence— A bill (S. 1881) to amend the Federal Food, ø(D) in subsection (f), by striking ‘‘for fil- ø(aa) by striking ‘‘the petition states a Drug, and Cosmetic Act to make technical ing’’; and commercial reason for the waiver;’’; and corrections relating to the amendments ø(E) in subsection (h)(2)— ø(bb) by inserting ‘‘not’’ after ‘‘the Sec- made by the Medical Device User Fee and ø(i) by striking subparagraph (A)(ii) and in- retary has not determined that the public Modernization Act of 2002, and for other pur- serting the following: health would’’; and poses. ø‘‘(ii) shall only be collected and available ø(v) in clause (iv)(II)— There being no objection, the Senate to defray increases in the costs of the re- ø(I) by inserting ‘‘of a device establishment proceeded to consider the bill, which sources allocated for the process for the re- required to register’’ after ‘‘to be con- had been reported from the Committee view of device applications (including in- ducted’’; and ø on Health, Education, Labor, and Pen- creases in such costs for an additional num- (II) by inserting ‘‘section’’ after ‘‘pursu- ber of full-time equivalent positions in the ant to’’; sions, with an amendment to strike all ø(C) in paragraph (6)(B)(iii)— after the enacting clause and inserting Department of Health and Human Services to be engaged in such process) over such ø(i) in the first sentence, by striking ‘‘, and in lieu thereof the following: costs for fiscal year 2002 when multiplied by data otherwise describing whether the estab- [Strike the part shown in black the adjustment factor (the determination of lishment has consistently been in compli- brackets and insert the part shown in the costs of the resources allocated for the ance with sections 501 and 502’’; and italic.] process for the review of device applications ø(ii) in the second sentence— ø S. 1881 for fiscal year 2003 through 2007, for purposes (I) by striking ‘‘inspections’’ and insert- ing ‘‘inspectional findings’’; and Be it enacted by the Senate and House of Rep- of this subparagraph, shall not include costs ø(II) by striking ‘‘, together with all other resentatives of the United States of America in paid from fees collected under this sec- compliance data the Secretary deems nec- Congress assembled, tion).’’; and essary’’; ø ø(ii) in subparagraph (B)— SECTION 1. SHORT TITLE. ø(D) in paragraph (6)(C)(ii), by striking ‘‘in øThis Act may be cited as the ‘‘Medical De- ø(I) in clause (ii), by redesignating sub- clauses (I) and (II) as items (aa) and (bb), re- accordance with section 510(h), or has not vices Technical Corrections Act’’. during such period been inspected pursuant øSEC. 2. TECHNICAL CORRECTIONS REGARDING spectively; ø(II) by redesignating clauses (i) and (ii) as to section 510(i), as applicable’’; PUBLIC LAW 107–250. ø(E) in paragraph (10)(B)(iii), by striking ø(a) TITLE I; FEES RELATING TO MEDICAL subclauses (I) and (II), respectively; ø(III) by striking ‘‘The Secretary’’ and in- ‘‘a reporting’’ and inserting ‘‘a report’’; and DEVICES.—Part 3 of subchapter C of chapter ø serting the following: (F) in paragraph (12)— VII of the Federal Food, Drug, and Cosmetic ø(i) by striking subparagraph (A) and in- Act (21 U.S.C. 379i et seq.), as added by sec- ø‘‘(i) IN GENERAL.—The Secretary’’; and ø(IV) by adding at the end the following: serting the following: tion 102 of Public Law 107–250 (116 Stat. 1589), ø‘‘(A) the number of inspections conducted ø‘‘(ii) MORE THAN 5 PERCENT.—To the extent is amended— by accredited persons pursuant to this sub- such costs are more than 5 percent below the ø(1) in section 737— section and the number of inspections con- specified level in subparagraph (A)(ii), fees ø(A) in paragraph (4)(B), by striking ‘‘and ducted by Federal employees pursuant to may not be collected under this section for for which clinical data are generally nec- section 510(h) and of device establishments that fiscal year.’’. essary to provide a reasonable assurance of required to register under section 510(i);’’; safety and effectiveness’’ and inserting ‘‘and ø(b) TITLE II; AMENDMENTS REGARDING and for which substantial clinical data are nec- REGULATION OF MEDICAL DEVICES.— ø(ii) in subparagraph (E), by striking ‘‘ob- essary to provide a reasonable assurance of ø(1) INSPECTIONS BY ACCREDITED PERSONS.— tained by the Secretary’’ and all that follows safety and effectiveness’’; Section 704(g) of the Federal Food, Drug, and and inserting ‘‘obtained by the Secretary ø(B) in paragraph (4)(D), by striking ‘‘man- Cosmetic Act (21 U.S.C. 374(g)), as added by pursuant to inspections conducted by Fed- ufacturing,’’; section 201 of Public Law 107–250 (116 Stat. eral employees;’’. ø (C) in paragraph (5)(J), by striking ‘‘a pre- 1602), is amended— ø(2) OTHER CORRECTIONS.—Section 502(f) of market application’’ and all that follows and ø(A) in paragraph (1), in the first sentence, the Federal Food, Drug, and Cosmetic Act inserting ‘‘a premarket application or pre- by striking ‘‘conducting inspections’’ and all (21 U.S.C. 352(f)), as amended by section 206 market report under section 515 or a pre- that follows and inserting ‘‘conducting in- of Public Law 107–250 (116 Stat. 1613), is market application under section 351 of the spections of establishments that manufac- amended, in the last sentence— Public Health Service Act.’’; and ture, prepare, propagate, compound, or proc- ø(A) by inserting ‘‘or by a health care pro- ø(D) in paragraph (8), by striking ‘‘The ess class II or class III devices, which inspec- fessional and required labeling for in vitro term ‘affiliate’ means a business entity that tions are required under section 510(h) or are diagnostic devices intended for use by health has a relationship with a second business en- inspections of such establishments required care professionals or in blood establish- tity’’ and inserting ‘‘The term ‘affiliate’ to register under section 510(i).’’; ments’’ after ‘‘in health care facilities’’; means a business entity that has a relation- ø(B) in paragraph (6)(A)— ø(B) by inserting a comma after ‘‘means’’; ship with a second business entity (whether ø(i) in clause (i), by striking ‘‘of the estab- ø(C) by striking ‘‘requirements of law and, domestic or international)’’; and lishment pursuant to subsection (h) or (i) of that’’ and inserting ‘‘requirements of law, ø(2) in section 738— section 510’’ and inserting ‘‘described in and that’’; ø(A) in subsection (a)(1)— paragraph (1)’’; ø(D) by striking ‘‘the manufacturer affords ø(i) in subparagraph (A)— ø(ii) in clause (ii)— health care facilities the opportunity’’ and ø(I) in the matter preceding clause (i) by ø(I) in the matter preceding subclause (I)— inserting ‘‘the manufacturer affords such striking ‘‘subsection (d),’’ and inserting ø(aa) by striking ‘‘each inspection’’ and in- users the opportunity’’; and ‘‘subsections (d) and (e),’’; serting ‘‘inspections’’; and ø(E) by striking ‘‘the health care facility’’. ø(II) in clause (iv), by striking ‘‘clause (i),’’ ø(bb) by inserting ‘‘during a 2-year period’’ ø(c) TITLE III; ADDITIONAL AMENDMENTS.— and all that follows and inserting ‘‘clause after ‘‘person’’; and Section 510(o) of the Federal Food, Drug, and (i).’’; and ø(II) in subclause (I), by striking ‘‘such a Cosmetic Act (21 U.S.C. 360(o)), as added by ø(III) in clause (vii), by striking ‘‘clause person’’ and inserting ‘‘an accredited per- section 302(b) of Public Law 107–250 (116 Stat. (i),’’ and all that follows and inserting son’’; 1616), is amended— ‘‘clause (i), subject to any adjustment under ø(iii) in clause (iii)— ø(1) in paragraph (1)(B), by striking ‘‘, subsection (e)(2)(C)(ii).’’; and ø(I) in the matter preceding subclause (I), adulterated’’ and inserting ‘‘or adulterated’’; ø(ii) in subparagraph (D), in each of clauses by striking ‘‘and the following additional and (i) and (ii), by striking ‘‘application’’ and in- conditions are met:’’ and inserting ‘‘and 1 or ø(2) in paragraph (2)— serting ‘‘application, report,’’; both of the following additional conditions ø(A) in subparagraph (B), by striking ‘‘, ø(B) in subsection (d)(2)(B), beginning in are met:’’; adulterated’’ and inserting ‘‘or adulterated’’; the second sentence, by striking ‘‘firms. ø(II) in subclause (I), by striking ‘‘under and which show’’ and inserting ‘‘firms, which subclause (II) of this clause’’ and inserting ø(B) in subparagraph (E), by striking show’’; ‘‘under clause (ii)(II)’’; and ‘‘semicritical’’ and inserting ‘‘semi-critical’’. ø(C) in subsection (e)— ø(III) in subclause (II), by inserting ‘‘or by ø(d) MISCELLANEOUS CORRECTIONS.— ø(i) in paragraph (1), by striking ‘‘Where’’ a person accredited under paragraph (2)’’ ø(1) CERTAIN AMENDMENTS TO SECTION 515.— and inserting ‘‘For fiscal year 2004 and each after ‘‘by the Secretary’’; ø(A) IN GENERAL.— subsequent fiscal year, where’’; and ø(iv) in clause (iv)(I)— ø(i) TECHNICAL CORRECTION.—Section 515(c) ø(ii) in paragraph (2)— ø(I) in the first sentence— of the Federal Food, Drug, and Cosmetic Act ø(I) in subparagraph (B), beginning in the ø(aa) by striking ‘‘the two immediately (21 U.S.C. 360e(c)), as amended by sections 209 second sentence, by striking ‘‘firms. which preceding inspections of the establishment’’ and 302(c)(2)(A) of Public Law 107–250 (116

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00178 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16059 Stat. 1613, 1618), is amended by redesignating tions that affect pediatric patients, no per- (ii) in paragraph (2)— paragraph (3) (as added by section 209 of such son granted an exemption under paragraph (I) in subparagraph (B), beginning in the sec- Public Law) as paragraph (4). (2) with respect to a device may sell the de- ond sentence, by striking ‘‘firms. which show’’ ø(ii) MODULAR REVIEW.—Section 515(c)(4)(B) vice for an amount that exceeds the costs of and inserting ‘‘firms, which show’’; and of the Federal Food, Drug, and Cosmetic Act research and development, fabrication, and (II) in subparagraph (C)(i), by striking (21 U.S.C. 360e(c)(4)(B)) is amended by strik- distribution of the device. The exclusion ‘‘Where’’ and inserting ‘‘For fiscal year 2004 ing ‘‘unless an issue of safety’’ and inserting from the prohibition under the previous sen- and each subsequent fiscal year, where’’; ‘‘unless a significant issue of safety’’. tence for devices intended for the treatment (D) in subsection (f), by striking ‘‘for filing’’; ø(B) CONFORMING AMENDMENT.—Section 210 or diagnosis of diseases or conditions that af- and of Public Law 107–250 (116 Stat. 1614) is fect pediatric patients, shall not apply in the (E) in subsection (h)(2)(B)— amended by striking ‘‘, as amended’’ and all case of a request for an exemption under (i) in clause (ii), by redesignating subclauses that follows through ‘‘by adding’’ and insert- paragraph (2) made on or after October 1, (I) and (II) as items (aa) and (bb), respectively; ing ‘‘is amended in paragraph (3), as redesig- 2007. In this paragraph, the term ‘pediatric (ii) by redesignating clauses (i) and (ii) as nated by section 302(c)(2)(A) of this Act, by patient’ means a patient who is 14 years of subclauses (I) and (II), respectively; (iii) by striking ‘‘The Secretary’’ and inserting adding’’. age or younger at the time of diagnosis or the following: ø(2) CERTAIN AMENDMENTS TO SECTION 738.— treatment.’’. ‘‘(i) IN GENERAL.—The Secretary’’; and ø ø(b) REPORT.—Not later than October 1, (A) IN GENERAL.—Section 738(a) of the (iv) by adding at the end the following: 2006, the Comptroller General of the United Federal Food, Drug, and Cosmetic Act (21 ‘‘(ii) MORE THAN 5 PERCENT.—To the extent States, in consultation with the Secretary of U.S.C. 379j(a)), as amended by subsection (a), such costs are more than 5 percent below the Health and Human Services, shall submit to is amended— specified level in subparagraph (A)(ii), fees may ø Congress a report that addresses the effec- (i) in the matter preceding paragraph (1)— not be collected under this section for that fiscal ø tiveness of section 520(m) of the Federal (I) by striking ‘‘(a) TYPES OF FEES.—Be- year.’’. Food, Drug, and Cosmetic Act (21 U.S.C. ginning on’’ and inserting the following: (b) TITLE II; AMENDMENTS REGARDING REGU- ø 360j(m)) in ensuring the development of de- ‘‘(a) TYPES OF FEES.— LATION OF MEDICAL DEVICES.— ø ‘‘(1) IN GENERAL.—Beginning on’’; and vices designed to treat or diagnose diseases (1) INSPECTIONS BY ACCREDITED PERSONS.— ø(II) by striking ‘‘this section as follows:’’ or conditions that affect fewer than 4,000 pe- Section 704(g) of the Federal Food, Drug, and and inserting ‘‘this section.’’; and diatric patients in the United States. Such Cosmetic Act (21 U.S.C. 374(g)), as added by sec- ø(ii) by striking ‘‘(1) PREMARKET APPLICA- report shall include the number and impor- tion 201 of Public Law 107–250 (116 Stat. 1602), TION,’’ and inserting the following: ‘‘(2) PRE- tance of devices for pediatric patients that is amended— MARKET APPLICATION,’’. are receiving exemptions under section (A) in paragraph (1), in the first sentence, by ø(B) CONFORMING AMENDMENTS.—Section 520(m) of the Federal Food, Drug, and Cos- striking ‘‘conducting inspections’’ and all that 738 of the Federal Food, Drug, and Cosmetic metic Act (21 U.S.C. 360j(m)).¿ follows and inserting ‘‘conducting inspections of Act (21 U.S.C. 379j), as amended by subpara- SECTION 1. SHORT TITLE. establishments that manufacture, prepare, prop- graph (A), is amended— This Act may be cited as the ‘‘Medical Devices agate, compound, or process class II or class III ø(i) in subsection (d)(1), in the last sen- Technical Corrections Act’’. devices, which inspections are required under tence, by striking ‘‘subsection (a)(1)(A)’’ and SEC. 2. TECHNICAL CORRECTIONS REGARDING section 510(h) or are inspections of such estab- inserting ‘‘subsection (a)(2)(A)’’; PUBLIC LAW 107–250. lishments required to register under section (ii) in subsection (e)(1), by striking ‘‘sub- (a) TITLE I; FEES RELATING TO MEDICAL DE- 510(i).’’; section (a)(1)(A)(vii)’’ and inserting ‘‘sub- VICES.—Part 3 of subchapter C of chapter VII of (B) in paragraph (6)(A)— section (a)(2)(A)(vii)’’; the Federal Food, Drug, and Cosmetic Act (21 (i) in clause (i), by striking ‘‘of the establish- ø(iii) in subsection (e)(2)(C)— U.S.C. 379i et seq.), as added by section 102 of ment pursuant to subsection (h) or (i) of section ø(I) in each of clauses (i) and (ii), by strik- Public Law 107–250 (116 Stat. 1589), is amend- 510’’ and inserting ‘‘described in paragraph ing ‘‘subsection (a)(1)(A)(vii)’’ and inserting ed— (1)’’; ‘‘subsection (a)(2)(A)(vii)’’; and (1) in section 737— (ii) in clause (ii)— ø(II) in clause (ii), by striking ‘‘subsection (A) in paragraph (4)(B), by striking ‘‘and for (I) in the matter preceding subclause (I)— (a)(1)(A)(i)’’ and inserting ‘‘subsection which clinical data are generally necessary to (aa) by striking ‘‘each inspection’’ and insert- (a)(2)(A)(i)’’; and provide a reasonable assurance of safety and ef- ing ‘‘inspections’’; and ø(iv) in subsection (j), by striking ‘‘sub- fectiveness’’ and inserting ‘‘and for which sub- (bb) by inserting ‘‘during a 2-year period’’ section (a)(1)(D),’’ and inserting ‘‘subsection stantial clinical data are necessary to provide a after ‘‘person’’; and (a)(2)(D),’’. reasonable assurance of safety and effective- (II) in subclause (I), by striking ‘‘such a per- ø(C) ADDITIONAL CONFORMING AMENDMENT.— ness’’; son’’ and inserting ‘‘an accredited person’’; Section 102(b)(1) of Public Law 107–250 (116 (B) in paragraph (4)(D), by striking ‘‘manu- (iii) in clause (iii)— (I) in the matter preceding subclause (I), by Stat. 1600) is amended, in the matter pre- facturing,’’; (C) in paragraph (5)(J), by striking ‘‘a pre- striking ‘‘and the following additional condi- ceding subparagraph (A), by striking ‘‘sec- market application’’ and all that follows and in- tions are met:’’ and inserting ‘‘and 1 or both of tion 738(a)(1)(A)(ii)’’ and inserting ‘‘section serting ‘‘a premarket application or premarket the following additional conditions are met:’’; 738(a)(2)(A)(ii)’’. report under section 515 or a premarket applica- (II) in subclause (I), by striking ‘‘under sub- ø(3) PUBLIC LAW 107–250.—Public Law 107–250 tion under section 351 of the Public Health Serv- clause (II) of this clause’’ and inserting ‘‘under is amended— ø ice Act.’’; and clause (ii)(II)’’; and (A) in section 102(a) (116 Stat. 1589), by (D) in paragraph (8), by striking ‘‘The term (III) in subclause (II), by inserting ‘‘or by a striking ‘‘(21 U.S.C. 379F et seq.)’’ and insert- ‘affiliate’ means a business entity that has a re- person accredited under paragraph (2)’’ after ing ‘‘(21 U.S.C. 379f et seq.)’’; lationship with a second business entity’’ and ‘‘by the Secretary’’; ø (B) in section 102(b) (116 Stat. 1600)— inserting ‘‘The term ‘affiliate’ means a business (iv) in clause (iv)(I)— ø (i) by striking paragraph (2); entity that has a relationship with a second (I) in the first sentence— ø (ii) in paragraph (1), by redesignating sub- business entity (whether domestic or inter- (aa) by striking ‘‘the two immediately pre- paragraphs (A) and (B) as paragraphs (1) and national)’’; and ceding inspections of the establishment’’ and in- (2), respectively; and (2) in section 738— serting ‘‘inspections of the establishment during ø(iii) by striking: (A) in subsection (a)(1)— the previous 4 years’’; and ø‘‘(b) FEE EXEMPTION FOR CERTAIN ENTITIES (i) in subparagraph (A)— (bb) by inserting ‘‘section’’ after ‘‘pursuant SUBMITTING PREMARKET REPORTS.— (I) in the matter preceding clause (i) by strik- to’’; ø‘‘(1) IN GENERAL.—A person submitting a ing ‘‘subsection (d),’’ and inserting ‘‘subsections (II) in the third sentence— premarket report’’ and inserting: (d) and (e),’’; (aa) by striking ‘‘the petition states a commer- ø‘‘(b) FEE EXEMPTION FOR CERTAIN ENTITIES (II) in clause (iv), by striking ‘‘clause (i),’’ cial reason for the waiver;’’; and SUBMITTING PREMARKET REPORTS.—A person and all that follows and inserting ‘‘clause (i).’’; (bb) by inserting ‘‘not’’ after ‘‘the Secretary submitting a premarket report’’; and has not determined that the public health ø(C) in section 212(b)(2) (116 Stat. 1614), by (III) in clause (vii), by striking ‘‘clause (i),’’ would’’; and striking ‘‘, such as phase IV trials,’’; and and all that follows and inserting ‘‘clause (i), (III) in the fourth sentence, by striking ø(D) in section 301(b) (116 Stat. 1616), by subject to any adjustment under subsection ‘‘granted until’’ and inserting ‘‘granted or striking ‘‘18 months’’ and inserting ‘‘36 (e)(2)(C)(ii).’’; and deemed to be granted until’’; and months’’. (ii) in subparagraph (D), in each of clauses (i) (v) in clause (iv)(II)— øSEC. 3. HUMANITARIAN DEVICE EXEMPTION and (ii), by striking ‘‘application’’ and inserting (I) by inserting ‘‘of a device establishment re- AND PEDIATRIC PRODUCTS. ‘‘application, report,’’; quired to register’’ after ‘‘to be conducted’’; and ø(a) AMENDMENT TO FEDERAL FOOD, DRUG, (B) in subsection (d)(2)(B), beginning in the (II) by inserting ‘‘section’’ after ‘‘pursuant AND COSMETIC ACT.—Section 520(m)(3) of the second sentence, by striking ‘‘firms. which to’’; Federal Food, Drug, and Cosmetic Act (21 show’’ and inserting ‘‘firms, which show’’; (C) in paragraph (6)(B)(iii)— U.S.C. 360j(m)(3)) is amended to read as fol- (C) in subsection (e)— (i) in the first sentence, by striking ‘‘, and lows: (i) in paragraph (1), by striking ‘‘Where’’ and data otherwise describing whether the establish- ø‘‘(3) Excluding devices intended for the inserting ‘‘For fiscal year 2004 and each subse- ment has consistently been in compliance with treatment or diagnosis of diseases or condi- quent fiscal year, where’’; and sections 501 and 502’’; and

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00179 Fmt 0624 Sfmt 6333 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16060 CONGRESSIONAL RECORD — SENATE November 25, 2003 (ii) in the second sentence— ‘‘unless an issue of safety’’ and inserting ‘‘un- mittee substitute amendment be (I) by striking ‘‘inspections’’ and inserting less a significant issue of safety’’. agreed to, the bill, as amended, be read ‘‘inspectional findings’’; and (B) CONFORMING AMENDMENT.—Section 210 of a third time and passed, the motion to (II) by inserting ‘‘relevant’’ after ‘‘together Public Law 107–250 (116 Stat. 1614) is amended with all other’’; by striking ‘‘, as amended’’ and all that follows reconsider be laid upon the table, and (D) in paragraph (6)(C)(ii), by striking ‘‘in ac- through ‘‘by adding’’ and inserting ‘‘is amended that any statements relating to the cordance with section 510(h), or has not during in paragraph (3), as redesignated by section bill be printed in the RECORD. such period been inspected pursuant to section 302(c)(2)(A) of this Act, by adding’’. The PRESIDING OFFICER. Without 510(i), as applicable’’; (2) CERTAIN AMENDMENTS TO SECTION 738.— objection, it is so ordered. (E) in paragraph (10)(B)(iii), by striking ‘‘a (A) IN GENERAL.—Section 738(a) of the Federal The committee amendment in the reporting’’ and inserting ‘‘a report’’; and Food, Drug, and Cosmetic Act (21 U.S.C. nature of a substitute was agreed to. (F) in paragraph (12)— 379j(a)), as amended by subsection (a), is The bill (S. 1881), as amended, was (i) by striking subparagraph (A) and inserting amended— the following: (i) in the matter preceding paragraph (1)— read the third time and passed. ‘‘(A) the number of inspections conducted by (I) by striking ‘‘(a) TYPES OF FEES.—Begin- f accredited persons pursuant to this subsection ning on’’ and inserting the following: COMMEMORATING THE 25TH ANNI- and the number of inspections conducted by ‘‘(a) TYPES OF FEES.— Federal employees pursuant to section 510(h) ‘‘(1) IN GENERAL.—Beginning on’’; and VERSARY OF VIETNAM VET- and of device establishments required to register (II) by striking ‘‘this section as follows:’’ and ERANS OF AMERICA under section 510(i);’’; and inserting ‘‘this section.’’; and Mr. MCCONNELL. Mr. President, I (ii) by striking ‘‘(1) PREMARKET APPLICA- (ii) in subparagraph (E), by striking ‘‘ob- ask unanimous consent that the Judi- TION,’’ and inserting the following: ‘‘(2) PRE- tained by the Secretary’’ and all that follows ciary Committee be discharged from and inserting ‘‘obtained by the Secretary pursu- MARKET APPLICATION,’’. ant to inspections conducted by Federal employ- (B) CONFORMING AMENDMENTS.—Section 738 of further consideration of S. Res. 120 and ees;’’. the Federal Food, Drug, and Cosmetic Act (21 that the Senate proceed to its imme- (2) OTHER CORRECTIONS.— U.S.C. 379j), as amended by subparagraph (A), diate consideration. (A) PROHIBITED ACTS.—Section 301(gg) of the is amended— The PRESIDING OFFICER. Without Federal Food, Drug, and Cosmetic Act (21 (i) in subsection (d)(1), in the last sentence, by objection, it is so ordered. The clerk U.S.C. 331(gg)), as amended by section 201(d) of striking ‘‘subsection (a)(1)(A)’’ and inserting will report the resolution by title. Public Law 107–250 (116 Stat. 1609), is amended ‘‘subsection (a)(2)(A)’’; (ii) in subsection (e)(1), by striking ‘‘sub- The assistant legislative clerk read to read as follows: as follows: ‘‘(gg) The knowing failure to comply with section (a)(1)(A)(vii)’’ and inserting ‘‘subsection paragraph (7)(E) of section 704(g); the knowing (a)(2)(A)(vii)’’; A resolution (S. Res. 120) commemorating inclusion by a person accredited under para- (iii) in subsection (e)(2)(C)— the 25th anniversary of Vietnam Veterans of graph (2) of such section of false information in (I) in each of clauses (i) and (ii), by striking America. an inspection report under paragraph (7)(A) of ‘‘subsection (a)(1)(A)(vii)’’ and inserting ‘‘sub- There being no objection, the Senate section (a)(2)(A)(vii)’’; and such section; or the knowing failure of such a proceeded to consider the resolution. person to include material facts in such a re- (II) in clause (ii), by striking ‘‘subsection (a)(1)(A)(i)’’ and inserting ‘‘subsection Mr. MCCONNELL. Mr. President, I port.’’. ask unanimous consent that the reso- (B) ELECTRONIC LABELING.—Section 502(f) of (a)(2)(A)(i)’’; and the Federal Food, Drug, and Cosmetic Act (21 (iv) in subsection (j), by striking ‘‘subsection lution be agreed to, the preamble be U.S.C. 352(f)), as amended by section 206 of (a)(1)(D),’’ and inserting ‘‘subsection agreed to, and the motion to reconsider Public Law 107–250 (116 Stat. 1613), is amended, (a)(2)(D),’’. be laid upon the table, with no inter- DDITIONAL CONFORMING AMENDMENT.— in the last sentence— (C) A vening action or debate, and that any (i) by inserting ‘‘or by a health care profes- Section 102(b)(1) of Public Law 107–250 (116 Stat. 1600) is amended, in the matter preceding statements relating to the measure be sional and required labeling for in vitro diag- printed in the RECORD. nostic devices intended for use by health care subparagraph (A), by striking ‘‘section 738(a)(1)(A)(ii)’’ and inserting ‘‘section The PRESIDING OFFICER. Without professionals or in blood establishments’’ after objection, it is so ordered. ‘‘in health care facilities’’; 738(a)(2)(A)(ii)’’. (ii) by inserting a comma after ‘‘means’’; (3) PUBLIC LAW 107–250.—Public Law 107–250 is The resolution (S. Res. 120) was (iii) by striking ‘‘requirements of law and, amended— agreed to. (A) in section 102(a) (116 Stat. 1589), by strik- that’’ and inserting ‘‘requirements of law, and The preamble was agreed to. ing ‘‘(21 U.S.C. 379F et seq.)’’ and inserting ‘‘(21 that’’; The resolution, with its preamble, (iv) by striking ‘‘the manufacturer affords U.S.C. 379f et seq.)’’; (B) in section 102(b) (116 Stat. 1600)— reads as follows: health care facilities the opportunity’’ and in- (i) by striking paragraph (2); S. RES. 120 serting ‘‘the manufacturer affords such users (ii) in paragraph (1), by redesignating sub- the opportunity’’; and Whereas the year 2003 marks the 25th anni- paragraphs (A) and (B) as paragraphs (1) and (v) by striking ‘‘the health care facility’’. versary of the founding of Vietnam Veterans (2), respectively; and (c) TITLE III; ADDITIONAL AMENDMENTS.— of America; (iii) by striking: (1) EFFECTIVE DATE.—Section 301(b) of Public Whereas the history of Vietnam Veterans ‘‘(b) FEE EXEMPTION FOR CERTAIN ENTITIES Law 107–250 (116 Stat. 1616), is amended by of America is a story of the United States’ SUBMITTING PREMARKET REPORTS.— striking ‘‘18 months’’ and inserting ‘‘36 gradual recognition of the tremendous sac- ‘‘(1) IN GENERAL.—A person submitting a pre- rifices of its Vietnam-era veterans and their months’’. market report’’ and inserting: (2) PREMARKET NOTIFICATION.—Section 510(o) families; ‘‘(b) FEE EXEMPTION FOR CERTAIN ENTITIES of the Federal Food, Drug, and Cosmetic Act (21 Whereas Vietnam Veterans of America is SUBMITTING PREMARKET REPORTS.—A person dedicated to advocating on behalf of its U.S.C. 360(o)), as added by section 302(b) of submitting a premarket report’’; and Public Law 107–250 (116 Stat. 1616), is amend- members; (C) in section 212(b)(2) (116 Stat. 1614), by Whereas Vietnam Veterans of America ed— striking ‘‘, such as phase IV trials,’’. (A) in paragraph (1)(B), by striking ‘‘, adul- raises public and member awareness of crit- terated’’ and inserting ‘‘or adulterated’’; and SEC. 3. REPORT ON BARRIERS TO AVAILABILITY ical issues affecting Vietnam-era veterans OF DEVICES INTENDED FOR CHIL- and their families; (B) in paragraph (2)— DREN. Whereas the local grassroots efforts of (i) in subparagraph (B), by striking ‘‘, adul- Not later than 180 days after the date of en- Vietnam Veterans of America chapters, such terated’’ and inserting ‘‘or adulterated’’; and actment of this Act, the Secretary of Health and as Chapter One in Rutland, Vermont, which (ii) in subparagraph (E), by striking Human Services shall submit to the Committee was founded 23 years ago in April of 1980, ‘‘semicritical’’ and inserting ‘‘semi-critical’’. on Health, Education, Labor, and Pensions of ISCELLANEOUS CORRECTIONS.— have greatly contributed to the quality of (d) M the Senate and the Committee on Energy and (1) CERTAIN AMENDMENTS TO SECTION 515.— the lives of veterans in our Nation’s commu- Commerce of the House of Representatives a re- (A) IN GENERAL.— nities; port on the barriers to the availability of devices (i) TECHNICAL CORRECTION.—Section 515(c) of Whereas Vietnam Veterans of America pro- intended for the treatment or diagnosis of dis- the Federal Food, Drug, and Cosmetic Act (21 motes its principles through volunteerism, eases and conditions that affect children. The U.S.C. 360e(c)), as amended by sections 209 and professional advocacy, and claims work; and report shall include any recommendations of the 302(c)(2)(A) of Public Law 107–250 (116 Stat. Whereas the future of Vietnam Veterans of Secretary of Health and Human Services for 1613, 1618), is amended by redesignating para- America will rely not only on its past ac- changes to existing statutory authority, regula- graph (3) (as added by section 209 of such Pub- complishments, but also on the future ac- tions, or agency policy or practice to encourage lic Law) as paragraph (4). complishments of its members, and these the invention and development of such devices. (ii) MODULAR REVIEW.—Section 515(c)(4)(B) of will ensure that Vietnam Veterans of Amer- the Federal Food, Drug, and Cosmetic Act (21 Mr. MCCONNELL. Mr. President, I ica remains a leader among veterans advo- U.S.C. 360e(c)(4)(B)) is amended by striking ask unanimous consent that the com- cacy organizations: Now, therefore, be it

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00180 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16061 Resolved, That the Senate— FOR THE RELIEF OF ESIDRONIO 201 of the Immigration and Nationality Act, (1) commemorates the 25th anniversary of ARREOLA-SAUCEDO, MARIA Lindita Idrizi Heath shall be eligible for the founding of Vietnam Veterans of Amer- ELANA COBIAN ARREOLA, issuance of an immigrant visa or for adjust- ica, and commends it for its efforts in the ad- NAYELY BIBIANA ARREOLA, AND ment of status to that of an alien lawfully vancement of veterans rights, which set the admitted for permanent residence upon fil- standard for all other veterans organizations CINDY JAEL ARREOLA ing an application for issuance of an immi- around the country; The bill (S. 1130) for the relief of grant visa under section 204 of that Act or (2) asks all Americans to join in the cele- Esidronio Arreola-Saucedo, Maria for adjustment of status to lawful permanent bration of the 25th anniversary of Vietnam Elana Cobian Arreola, Nayely Bibiana resident. Veterans of America, and its 25 years of ad- Arreola, and Cindy Jael Arreola, was (b) ADJUSTMENT OF STATUS.—If Lindita vocacy on behalf of Vietnam veterans; and considered, ordered to be engrossed for Idrizi Heath enters the United States before (3) encourages Vietnam Veterans of Amer- a third reading, read the third time, the filing deadline specified in subsection (c), ica to continue to represent and promote its Lindita Idrizi Heath shall be considered to goals in the veterans’ community and on and passed, as follows: have entered and remained lawfully and Capitol Hill, and to continue to keep its na- S. 1130 shall, if otherwise eligible, be eligible for ad- tional membership—consisting of 45,000 Be it enacted by the Senate and House of Rep- justment of status under section 245 of the members and 600 chapters—strong. resentatives of the United States of America in Immigration and Nationality Act as of the Congress assembled, date of enactment of this Act. f SECTION 1. PERMANENT RESIDENT STATUS FOR (c) DEADLINE FOR APPLICATION AND PAY- ESIDRONIO ARREOLA-SAUCEDO, MENT OF FEES.—Subsections (a) and (b) shall MARIA ELENA COBIAN ARREOLA, apply only if the application for issuance of MEASURES DISCHARGED NAYELY BIBIANA ARREOLA, AND an immigrant visa or the application for ad- CINDY JAEL ARREOLA. justment of status is filed with appropriate Mr. MCCONNELL. Mr. President, I (a) IN GENERAL.—Notwithstanding sub- sections (a) and (b) of section 201 of the Im- fees within 2 years after the date of enact- ask unanimous consent that the Judi- ment of this Act. ciary Committee be discharged from migration and Nationality Act, Esidronio Arreola-Saucedo, Maria Elena Cobian (d) REDUCTION OF IMMIGRANT VISA NUM- further consideration of the following: Arreola, Nayely Bibiana Arreola, and Cindy BERS.—Upon the granting of an immigrant S. 99, S. 1130, S. 103, S. 848, and S. 541, Jael Arreola shall be eligible for the issuance visa or permanent residence to Lindita Idrizi and that the Senate proceed to their of immigrant visas or for adjustment of sta- Heath, the Secretary of State shall instruct immediate consideration en bloc. tus to that of aliens lawfully admitted for the proper officer to reduce by one, during the current or next following fiscal year, the The PRESIDING OFFICER. Without permanent residence upon filing an applica- tion for issuance of immigrant visas under total number of immigrant visas that are objection, it is so ordered. section 204 of that Act or for adjustment of made available to natives of the country of The Senate will proceed to the con- status to lawful permanent resident. birth of Lindita Idrizi Heath under section sideration of the measures en bloc. (b) ADJUSTMENT OF STATUS.—If Esidronio 203(a) of the Immigration and Nationality Arreola-Saucedo, Maria Elena Cobian Act or, if applicable, the total number of im- Mr. MCCONNELL. Mr. President, I Arreola, Nayely Bibiana Arreola, and Cindy migrant visas that are made available to na- further ask unanimous consent that Jael Arreola enter the United States before tives of the country of birth of Lindita Idrizi the bills be read three times and passed the filing deadline specified in subsection (c), Heath under section 202(e) of that Act. en bloc, and the motion to reconsider Esidronio Arreola-Saucedo, Maria Elena SEC. 2. ELIGIBILITY FOR CITIZENSHIP. be laid upon the table, with no inter- Cobian Arreola, Nayely Bibiana Arreola, and For purposes of section 320 of the Immigra- vening action or debate, and that any Cindy Jael Arreola shall be considered to tion and Nationality Act (8 U.S.C. 1431; relat- statements relating to these measures have entered and remained lawfully and ing to the automatic acquisition of citizen- shall be eligible for adjustment of status ship by certain children born outside the be printed in the RECORD. under section 245 of the Immigration and Na- The PRESIDING OFFICER. Without United States), Lindita Idrizi Heath shall be tionality Act as of the date of enactment of considered to have satisfied the require- this Act. objection, it is so ordered. ments applicable to adopted children under (c) DEADLINE FOR APPLICATION AND PAY- section 101(b)(1) of that Act (8 U.S.C. MENT OF FEES.—Subsections (a) and (b) shall f apply only if the application for issuance of 1101(b)(1)). immigrant visas or the application for ad- SEC. 3. LIMITATION. FOR THE RELIEF OF JAYA GULAB justment of status are filed with appropriate No natural parent, brother, or sister, if TOLANI AND HITESH GULAB fees within 2 years after the date of enact- any, of Lindita Idrizi Heath shall, by virtue TOLANI ment of this Act. of such relationship, be accorded any right, (d) REDUCTION OF IMMIGRANT VISA NUM- privilege, or status under the Immigration The bill (S. 99) for the relief of Jaya BERS.—Upon the granting of immigrant visas and Nationality Act. Gulab Tolani and Hitesh Gulab Tolani, or permanent residence to Esidronio Arreola- f was considered, ordered to be engrossed Saucedo, Maria Elena Cobian Arreola, Nayely Bibiana Arreola, and Cindy Jael FOR THE RELIEF OF DANIEL KING for a third reading, read the third time, Arreola, the Secretary of State shall in- CAIRO and passed, as follows: struct the proper officer to reduce by 4, dur- The bill (S. 848) for the relief of Dan- S. 99 ing the current or next following fiscal year, the total number of immigrant visas that are iel King Cairo, was considered, ordered Be it enacted by the Senate and House of Rep- made available to natives of the country of to be engrossed for a third reading, resentatives of the United States of America in the aliens’ birth under section 203(a) of the read the third time, and passed, as fol- Congress assembled, Immigration and Nationality Act or, if appli- lows: SECTION 1. PERMANENT RESIDENCE. cable, the total number of immigrant visas S. 848 that are made available to natives of the Notwithstanding any other provision of country of the aliens’ birth under section Be it enacted by the Senate and House of Rep- law, for purposes of the Immigration and Na- 202(e) of that Act. resentatives of the United States of America in tionality Act (8 U.S.C. 1101 et seq.), Jaya Congress assembled, f Gulab Tolani and Hitesh Gulab Tolani shall SECTION 1. PERMANENT RESIDENCE. be held and considered to have been lawfully FOR THE RELIEF OF LINDITA Notwithstanding any other provision of admitted to the United States for permanent IDRIZI HEATH law, for purposes of the Immigration and Na- residence as of the date of enactment of this The bill (S. 103) for the relief of tionality Act (8 U.S.C. 1101 et seq.), Daniel Act upon payment of the required visa fees. King Cairo shall be held and considered to SEC. 2. REDUCTION OF NUMBER OF AVAILABLE Lindita Idrizi Heath, was considered, have been lawfully admitted to the United VISAS. ordered to be engrossed for a third States for permanent residence as of the date Upon the granting of permanent residence reading, read the third time, and of enactment of this Act upon payment of to Jaya Gulab Tolani and Hitesh Gulab passed, as follows: the required visa fees. Tolani, as provided in section 1, the Sec- S. 103 SEC. 2. REDUCTION OF NUMBER OF AVAILABLE retary of State shall instruct the proper offi- Be it enacted by the Senate and House of Rep- VISAS. cer to reduce by the appropriate number dur- resentatives of the United States of America in Upon the granting of permanent residence ing the current fiscal year the total number Congress assembled, to Daniel King Cairo, the Secretary of State of immigrant visas available to natives of SECTION 1. PERMANENT RESIDENT STATUS FOR shall instruct the proper officer to reduce by the country of the aliens’ birth under section LINDITA IDRIZI HEATH. the appropriate number during the current 203(a) of the Immigration and Nationality (a) IN GENERAL.—Notwithstanding section fiscal year the total number of immigrant Act (8 U.S.C. 1153(a)). 101(b)(1) and subsections (a) and (b) of section visas available to natives of the country of

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00181 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16062 CONGRESSIONAL RECORD — SENATE November 25, 2003 the alien’s birth under section 203(a) of the resentatives have demonstrated great exper- gun laws. In 2000, a member of the Mid- Immigration and Nationality Act (8 U.S.C. tise, dedication, professionalism, and integ- dle East terrorist group Hezbollah was 1153(a)). rity in faithfully discharging the duties and convicted in Detroit on gun charges f responsibilities of their positions; and conspiracy to ship guns and ammu- Whereas legislative drafting is a lengthy, FOR THE RELIEF OF ILKO arduous, and demanding process requiring a nition to Lebanon. He had purchased VASILEV IVANOV, ANELIA keen intellect, thorough knowledge, stern many of those weapons at gun shows in MARINOVA PENEVA, MARINA constitution, and remarkable patience; Michigan. In the war in Afghanistan, ILKOVA IVANOVA, AND JULIE Whereas the staff of the Senate and House American soldiers discovered a ter- ILKOVA IVANOVA Offices of the Legislative Counsel, in par- rorist training manual entitled ‘‘How ticular, Ruth Ann Ernst, John Goetcheus, Can I Train Myself for Jihad’’ in a The bill (S. 541) for the relief of Ilko Peter Goodloe, Edward G. Grossman, Pierre Vasilev Ivanov, Anelia Marinova house in that country. One part of the Poisson, and James G. Scott, have performed manual stated: ‘‘In other countries, Peneva, Marina Ilkova Ivanova, and above and beyond the call of duty in drafting Julie Ilkova Ivanova, was considered, the Medicare Prescription Drug, Improve- e.g. some states of USA . . . it is per- ordered to be engrossed for a third ment, and Modernization Act of 2003; and fectly legal for members of the public reading, read the third time, and Whereas the Senate and House Offices of to own certain types of firearms. If you passed, as follows: the Legislative Counsel have met the legisla- live in such a country, obtain an as- tive drafting needs of the Senate and the sault rifle legally . . . learn how to use S. 541 House of Representatives with unfailing pro- it properly and go and practice in the Be it enacted by the Senate and House of Rep- fessionalism, exceptional skill, undying dedi- areas allowed for such training.’’ resentatives of the United States of America in cation, and, above all, patience and good Last month, I introduced a bill, S. Congress assembled, humor as the Medicare Prescription Drug, SECTION 1. PERMANENT RESIDENCE. Improvement, and Modernization Act of 2003 1774, to renew the Undetectable Fire- In the administration of the Immigration passed through the legislative process: Now, arms Act and repeal the sunset provi- and Nationality Act (8 U.S.C. 1101 et seq.), therefore, be it sion. The bill now before us, H.R. 3348, Ilko Vasilev Ivanov, Anelia Marinova Resolved, That the sincere thanks of the extends the sunset provision for an- Peneva, Marina Ilkova Ivanova, and Julia Senate are hereby tendered to the staff of other 10 years. The danger to security Ilkova Ivanova shall be held and considered both the Office of the Legislative Counsel of from undetectable firearms won’t sun- to have been lawfully admitted to the United the Senate and the Office of the Legislative set, and the law that bans them States for permanent residence as of the date Counsel of the House of Representatives for shouldn’t sunset either. Nevertheless, I of the enactment of this Act upon payment their outstanding work and dedication to the of the required visa fees. United States Congress and the people of the am encouraged that Congress is taking SEC. 2. REDUCTION OF NUMBER OF AVAILABLE United States of America. action, and I look forward to the re- VISAS. newal of this gun ban being signed into Upon the granting of permanent residence f law. to Ilko Vasilev Ivanov, Anelia Marinova BAN ON UNDETECTABLE This measure is only one of several Peneva, Marina Ilkova Ivanova, and Julia FIREARMS steps that Congress should take to pro- Ilkova Ivanova as provided in this Act, the tect our citizens from gun violence. We Secretary of State shall instruct the proper Mr. MCCONNELL. Mr. President, I officer to reduce by the appropriate number ask unanimous consent that the Sen- also need to strengthen criminal back- during the current fiscal year the total num- ate proceed to the immediate consider- ground checks for gun purchases under ber of immigrant visas available to natives ation of H.R. 3348 which is at the desk. the Brady Law, renew the assault of the country of the aliens’ birth under sub- The PRESIDING OFFICER. The weapons ban, and close the ‘‘gun show section (a) of section 203 of the Immigration clerk will report the bill by title. loophole’’ once and for all. Each of and Nationality Act (8 U.S.C. 1153). The assistant legislative clerk read these gun-safety measures is needed to f as follows: protect our people in communities across the country. I urge my col- THANKING STAFF OF A bill (H.R. 3348) to reauthorize the ban on LEGISLATIVE COUNSEL undetectable firearms. leagues to support the pending bill, and to act on these other vital measures as Mr. MCCONNELL. Mr. President, I There being no objection, the Senate well. ask unanimous consent that the Sen- proceeded to consider the bill. Mr. MCCONNELL. Mr. President, I ate proceed to the immediate consider- Mr. KENNEDY. Mr. President, it is ask unanimous consent that the bill be ation of S. Res. 277 introduced earlier gratifying that Congress is finally act- read the third time, passed, the motion today. ing to renew one of the Nation’s essen- to reconsider be laid upon the table, The PRESIDING OFFICER. The tial protections against terrorism. with no intervening action or debate, clerk will report the resolution by The Undetectable Firearms Act—also and that any statements relating to title. known as the ‘‘plastic gun’’ law— the bill be printed in the RECORD. The assistant legislative clerk read makes it illegal to manufacture, im- The PRESIDING OFFICER. Without as follows: port, possess, or transfer a firearm that objection, it is so ordered. A resolution (S. Res. 277) tendering the sin- is not detectable by walk-through The bill (H.R. 3348) was read the third cere thanks of the Senate to the staffs of the metal detectors or airport x-ray ma- time and passed. Offices of the Legislative Counsel of the Sen- chines. Only firearms necessary for cer- ate and the House of Representatives for tain military and intelligence uses are their dedication and service to the legisla- f tive process. exempt. This law was first enacted in 1988, There being no objection, the Senate BANKRUPTCY EXTENSION proceeded to consider the resolution. long before the attacks on 9/11, and it Mr. MCCONNELL. Mr. President, I Mr. MCCONNELL. Mr. President, I is more important than ever now. It ask unanimous consent that the reso- has been extended once since it was ask unanimous consent that the Judi- lution be agreed to, the preamble be first enacted, but it is scheduled to ex- ciary Committee be discharged from agreed to, and any statements relating pire on December 10th. Its expiration further consideration of S. 1920 and the to the resolution be printed in the would result in Americans in all parts Senate proceed to its immediate con- sideration. RECORD. of the Nation becoming needlessly vul- The PRESIDING OFFICER. Without nerable to gun violence in airlines, air- The PRESIDING OFFICER. Without objection, it is so ordered. ports, schools, office buildings, and objection, it is so ordered. The resolution (S. Res. 277) was many other places, and even to ter- The clerk will report the bill by title. agreed to. rorist attacks. The assistant legislative clerk read The preamble was agreed to. The technology of gun manufacturers as follows: The resolution, with its preamble, has significantly improved since the A bill (S. 1920) to extend for 6 months the reads as follows: 1980’s—and the determination of terror- period for which chapter 12 of title 11 of the S. RES. 277 ists to attack Americans has soared. United States Code is reenacted. Whereas the Offices of the Legislative We know that terrorists are exploiting There being no objection, the Senate Counsel of the Senate and the House of Rep- the weaknesses and loopholes in our proceeded to consider the bill.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00182 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16063 Mr. LEAHY. Mr. President, I am (1) by striking ‘‘January 1, 2004’’ each place understandings under which we are pleased that the Senate is passing leg- it appears and inserting ‘‘July 1, 2004’’; and able to, for the most part, except for islation to extend family farmer bank- (2) in subsection (a)— extremely controversial nominees, ruptcy protection through June 30, (A) by striking ‘‘June 30, 2003’’ and insert- clear the calendar. But alas, that will ing ‘‘December 31, 2003’’; and not be the case today. It is a result of 2004. (B) by striking ‘‘July 1, 2003’’ and inserting Senator GRASSLEY and I introduced ‘‘January 1, 2004’’. another round of obstructionism. As we S. 1920 to temporarily extend these pro- (b) EFFECTIVE DATE.—The amendments adjourn today, a grand total of 95 tections that our farmers have come to made by subsection (a) shall take effect on nominees will be languishing here on rely upon for another 6 months because January 1, 2004. the Executive Calendar awaiting ap- Chapter 12 of the Bankruptcy Code is f proval. I hoped that entering the holi- set to expire on January 1, 2004. But day season, we would be able to put this is just a short term fix. We need to IMPROVING THE UNITED STATES aside our differences and work to- stop playing politics and permanently CODE gether. Instead, the politics seems to reauthorize the Chapter 12 family Mr. MCCONNELL. Mr. President, I have overtaken reason once again. farmer protections. ask unanimous consent that the Judi- This level of obstructionism on the Too many family farmers have been ciary Committee be discharged from other side has reached a really stun- left in legal limbo in bankruptcy further consideration of H.R. 1437 and ning new low. An example of the posi- courts across the country because the Senate proceed to its immediate tions that will be left languishing here, dealing with the national security of Chapter 12 of the Bankruptcy Code is consideration. this country, is the Deputy Attorney still a temporary measure. This is the The PRESIDING OFFICER. The General, the Ambassador to Saudi Ara- seventh time that Congress must act to clerk will report. bia, a very important country in the restore or extend basic bankruptcy The assistant legislative clerk read war on terrorism, the Under Secretary safeguards for family farmers because as follows: Chapter 12 is still a temporary provi- of State for Public Diplomacy and the A bill (H.R. 1437) to improve the United International Trade Commission—all sion despite its first passage into law States Code. in 1986. Our family farmers do not de- obstructed as we bring this session to There being no objection, the Senate an end. From those positions all the serve these lapses in bankruptcy law proceeded to consider the bill. that could mean the difference between way down to such things as members of Mr. MCCONNELL. Mr. President, I the African Development Foundation, foreclosure and farming. ask unanimous consent that the bill be In 2000 and 2001, for example, the Sen- the U.S. Postal Service, the Chemical read the third time, and passed, the Safety and Hazard Investigation Board, ate, then as now controlled by the motion to reconsider be laid upon the other party, failed to take up a House- even the National Commission on Li- table, with no intervening action or de- braries and Information Science—all passed bill to retroactively renew bate, and that any statements relating Chapter 12. As a result, family farmers obstructed. to the measure be printed in the On a day when the Senate delivered lost Chapter 12 bankruptcy protection RECORD. on a 38-year-old promise to 40 million for eight months. Another lapse of The PRESIDING OFFICER. Without seniors to provide a prescription drug Chapter 12 lasted more than six months objection, it is so ordered. benefit, we end the day woefully short in the previous Congress. At the end of The bill (H.R. 1437) was read the third of our obligations. It is somewhat iron- June, Chapter 12 lapsed once again. time and passed. ic that two of the victims of obstruc- It is time to end this absurdity and tionist are nominees to the U.S. Insti- make these bankruptcy protections f tute of Peace. permanent. Everyone agrees that Chap- AUTHORIZATION FOR MAJORITY I hope we can get serious about doing ter 12 has worked. It is time for Con- LEADER TO SIGN ENROLLED our work around here. Our work in- gress to make Chapter 12 a permanent BILLS AND JOINT RESOLUTIONS cludes, at the very least, confirming part of the Bankruptcy Code to provide DURING SENATE’S ADJOURN- nominations that are not controver- a stable safety net for our Nation’s MENT sial. This is disturbing. We have an Ex- family farmers. ecutive Calendar full of innocent peo- I will continue to work hard with Mr. MCCONNELL. Mr. President, I ask unanimous consent that, during ple who are not caught up in any of the Senator GRASSLEY, Senator FEINGOLD games around here who are being held and others on both sides of the aisle to the Senate’s adjournment, the major- ity leader be authorized to sign en- up at the very least until we come back pass legislation that once and for all on December 9. And who knows, maybe assures our farmers of permanent rolled bills and joint resolutions. The PRESIDING OFFICER. Without until next year and maybe forever, po- bankruptcy protection to keep their sitions from extremely important posi- farms. In the meantime, we should objection, it is so ordered. Mr. MCCONNELL. Mr. President, I tions such as the Ambassador to Saudi quickly pass this legislation and pre- Arabia all the way down to boards that vent another lapse in this basic bank- suggest the absence of a quorum. The PRESIDING OFFICER. The are arguably not of any great con- ruptcy protection for our family farm- sequence. It is a sad conclusion to the ers. clerk will call the roll. The legislative clerk proceeded to session. Mr. MCCONNELL. Mr. President, I Hopefully, sometime over the next call the roll. ask unanimous consent that the bill be few weeks we can figure out a way to Mr. MCCONNELL. Mr. President, I read a third time and passed, the mo- clear these nominations, these people ask unanimous consent that the order tion to reconsider be laid upon the who deserve better treatment by the for the quorum call be rescinded. table, and any statements relating to Senate. We abuse people and abuse peo- The PRESIDING OFFICER. Without the billing be printed in the RECORD. ple and abuse people. It is a wonder objection, it is so ordered. The PRESIDING OFFICER. Without that anyone is willing to enter into objection, it is so ordered. f public service anymore if they have to The bill (S. 1920) was read the third EXECUTIVE CALENDAR go through the confirmation process. time and passed, as follows: Mr. DASCHLE. Mr. President, I rise S. 1920 Mr. MCCONNELL. Mr. President, we to note my disappointment with the Be it enacted by the Senate and House of Rep- have been working this afternoon try- impasse over nominations. Earlier this resentatives of the United States of America in ing to clear the Executive Calendar, re- afternoon I made clear to the Repub- Congress assembled, grettably with little or no success. I lican leadership that the Democratic SECTION 1. SIX-MONTH EXTENSION OF PERIOD had a conversation with the Demo- Caucus was ready to confirm the fol- FOR WHICH CHAPTER 12 OF TITLE cratic leader about this just a few mo- lowing nominees today for important 11, UNITED STATES CODE IS REEN- ACTED. ments ago. He can represent his own ambassadorships around the world: (a) AMENDMENTS.—Section 149 of title I of position. But let me say, from my David C. Mulford to be Ambassador division C of Public Law 105 09277 (11 U.S.C. point of view, what is customarily done to India, William Hudson to be Ambas- 1201 note) is amended— at the end of the session is we work out sador to the Republic of Tunisia, Jon

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00183 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16064 CONGRESSIONAL RECORD — SENATE November 25, 2003 Purnell to be Ambassador to the Re- to serve as ex officio members of the task sistent with the report by the Secretary public of Uzbekistan, Margaret Scobey force: under paragraph (1), the Secretary may con- to be Ambassador to the Syrian Arab ø‘‘(A) A representative from the Depart- duct up to 3 demonstration projects to in- Republic, and Thomas Riley to be Am- ment of Transportation. crease cadaveric donation. ø‘‘(B) A representative from the Depart- ø‘‘(3) DURATION.—Each project shall last no bassador to Morocco. ment of Defense. more than 3 years, and shall be conducted in These are important posts to the war ø‘‘(C) A representative from the Depart- a limited number of sites or areas. on terrorism, Mr. President, and I re- ment of Veterans Affairs. ø‘‘(4) REVIEW.—The Secretary shall provide gret that the Republicans were unable ø‘‘(D) A representative from the Office of for the ongoing ethical review and evalua- to clear them in order for the full Sen- Personnel Management. tion of such projects to ensure that such ate to give its advice and consent to ø‘‘(E) A physician representative from the projects are administered effectively as pos- their confirmation. Again, the record board of directors of the Organ Procurement sible and in accordance with the stated pur- and Transplantation Network. pose of this subsection under paragraph (2). should reflect that these nominees ø ‘‘(F) Representatives of other Federal ø‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— would have been confirmed today but agencies or departments as determined to be for Republican objections. There is authorized to be appropriated to appropriate by the Secretary. carry out this section, $5,000,000 for fiscal ø f ‘‘(c) ANNUAL REPORT.—In addition to ac- year 2004, and such sums as may be necessary tivities carried out under subsection (a), the for each of the fiscal years 2005 through 2008. ORGAN DONATION AND RECOVERY task force shall support the development of IMPROVEMENT ACT the annual report under section 378D(c). ø‘‘SEC. 378B. GRANTS REGARDING HOSPITAL ø‘‘(d) TERMINATION.—The task force may be ORGAN DONATION COORDINATORS. Mr. MCCONNELL. I ask unanimous terminated at the discretion of the Secretary ø consent that the Senate proceed to the ‘‘(a) AUTHORITY.— following the completion of at least 2 annual ø‘‘(1) IN GENERAL.—The Secretary may immediate consideration of Calendar reports under section 378D(c). Upon such ter- award grants to qualified organ procurement No. 410, S. 573. mination, the Secretary shall provide for the organizations under section 371 to establish The PRESIDING OFFICER. The on-going coordination of federally supported programs coordinating organ donation ac- clerk will report the bill by title. or conducted organ donation and research tivities of eligible hospitals and qualified The assistant legislative clerk read activities.’’. organ procurement organizations under sec- as follows: øSEC. 102. DEMONSTRATION PROJECTS, EDU- tion 371. Such activities shall be coordinated CATION, AND PUBLIC AWARENESS. to increase the rate of organ donations for A bill (S. 573) to amend the Public Health øPart H of title III of the Public Health such hospitals. Service Act to promote organ donation, and Service Act (42 U.S.C 273 et seq.) is amended ø‘‘(2) ELIGIBLE HOSPITAL.—For purposes of for other purposes. by inserting after section 378, as added by this section, an eligible hospital is a hospital There being no objection, the Senate section 101, the following: that performs significant trauma care, or a proceeded to consider the bill which ø‘‘SEC. 378A. DEMONSTRATION PROJECTS, EDU- hospital or consortium of hospitals that had been reported from the Committee CATION, AND PUBLIC AWARENESS. serves a population base of not fewer than on Health, Education, Labor, and Pen- ø‘‘(a) GRANTS TO INCREASE DONATION 200,000 individuals. sion with an amendment. RATES.—The Secretary shall award peer-re- ø‘‘(b) ADMINISTRATION OF COORDINATION viewed grants to public and non-profit pri- [Strike the part shown in black PROGRAM.—A condition for the receipt of a vate entities, including States, to carry out grant under subsection (a) is that the appli- brackets and insert the part shown in studies and demonstration projects to in- italic.] cant involved agree that the program under crease organ donation and recovery rates, in- such subsection will be carried out jointly— S. 573 cluding living donation. ø‘‘(1) by representatives from the eligible ø øSECTION 1. SHORT TITLE. ‘‘(b) ORGAN DONATION PUBLIC AWARENESS hospital and the qualified organ procurement øThis Act may be cited as the ‘‘Organ Do- PROGRAM.—The Secretary shall establish a organization with respect to which the grant nation and Recovery Improvement Act’’. public education program in cooperation is made; and with existing national public awareness cam- ø ø‘‘(2) by such other entities as the rep- TITLE I—ORGAN DONATION AND paigns to increase awareness about organ do- RECOVERY resentatives referred to in paragraph (1) may nation and the need to provide for an ade- designate. øSEC. 101. INTERAGENCY TASK FORCE ON ORGAN quate rate of such donations. ø DONATION. ø‘‘(c) DEVELOPMENT OF CURRICULA AND ‘‘(c) EVALUATIONS.—Within 3 years after øPart H of title III of the Public Health OTHER EDUCATION ACTIVITIES.— the award of grants under this section, the Service Act (42 U.S.C. 273 et seq.) is amend- ø‘‘(1) IN GENERAL.—The Secretary, in co- Secretary shall ensure an evaluation of pro- ed— ordination with the Organ Procurement and grams carried out pursuant to subsection (a) ø(1) by redesignating section 378 (42 U.S.C. Transplantation Network and other appro- in order to determine the extent to which 274g) as section 378E; and priate organizations, shall support the devel- the programs have increased the rate of ø(2) by inserting after section 377 (42 U.S.C. opment and dissemination of model cur- organ donation for the eligible hospitals in- 274f) the following: ricula to train health care professionals and volved. Such evaluation shall include rec- ø‘‘SEC. 378. INTER-AGENCY TASK FORCE ON other appropriate professionals (including ommendations on whether the program ORGAN DONATION AND RESEARCH. religious leaders in the community, funeral should be expanded to include other grant- ø‘‘(a) IN GENERAL.—The Secretary shall es- directors, and law enforcement officials) in ees, such as hospitals. tablish an inter-agency task force on organ issues surrounding organ donation, including ø‘‘(d) MATCHING REQUIREMENT.—The Sec- donation and research (referred to in this methods to approach patients and their fam- retary may not award a grant to a qualifying section as the ‘task force’) to improve the ilies, cultural sensitivities, and other rel- organ donation entity under this section un- coordination and evaluation of— evant issues. less such entity agrees that, with respect to ø‘‘(1) federally supported or conducted ø‘‘(2) HEALTH CARE PROFESSIONALS.—For costs to be incurred by the entity in carrying organ donation efforts and policies; and purposes of subparagraph (A), the term out activities for which the grant was award- ø‘‘(2) federally supported or conducted ‘health care professionals’ includes— ed, the entity shall contribute (directly or basic, clinical and health services research ø‘‘(A) medical students, residents and fel- through donations from public or private en- (including research on preservation tech- lows, attending physicians (through con- tities) non-Federal contributions in cash or niques and organ rejection and compat- tinuing medical education courses and other in kind, in an amount equal to not less than ibility). methods), nurses, social workers, and other 30 percent of the amount of the grant award- ø‘‘(b) COMPOSITION.— allied health professionals; ed to such entity. ø‘‘(1) IN GENERAL.—The task force shall be ø‘‘(B) hospital- or other health care-facil- ø‘‘(e) FUNDING.—For the purpose of car- composed of— ity based chaplains; and rying out this section, there are authorized ø ø ‘‘(A) the Surgeon General, who shall serve ‘‘(C) emergency medical personnel. to be appropriated $3,000,000 for fiscal year ø as the chairperson; and ‘‘(d) LIMITED DEMONSTRATION PROJECTS.— 2004, and such sums as may be necessary for ø ø ‘‘(B) representatives to be appointed by ‘‘(1) REPORTS.—Not later than 1 year after each of fiscal years 2005 through 2008.’’. the Secretary from relevant agencies within the date of enactment of this section, the the Department of Health and Human Serv- Secretary shall prepare and submit to the øSEC. 103. STUDIES RELATING TO ORGAN DONA- ices (including the Health Resources and appropriate committees of Congress a report TION AND THE RECOVERY, PRESER- Services Administration, Centers for Medi- evaluating the ethical implications of pro- VATION, AND TRANSPORTATION OF care & Medicaid Services, National Insti- posals for demonstration projects to increase ORGANS. tutes of Health, and Agency for Healthcare cadaveric donation. øPart H of title III of the Public Health Research and Quality). ø‘‘(2) AUTHORITY.—Notwithstanding section Service Act (42 U.S.C. 273 et seq.) is amended ø‘‘(2) OTHER EX OFFICIO MEMBERS.—The Sec- 301 of the National Organ Transplant Act (42 by inserting after section 378B, as added by retary shall invite the following individuals U.S.C. 274e), upon the submission of and con- section 102, the following:

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ø‘‘SEC. 378C. STUDIES RELATING TO ORGAN DO- ø‘‘(iv) the impact of requests for consent in ø‘‘(b) PREFERENCE.—The Secretary shall, in NATION AND THE RECOVERY, PRES- States where registry registration con- carrying out subsection (a), give preference ERVATION, AND TRANSPORTATION stitutes express consent under State law; to those individuals that the Secretary de- OF ORGANS. and termines are more likely to be otherwise un- ø‘‘(a) DEVELOPMENT OF SUPPORTIVE INFOR- ø‘‘(v) recommendations with respect to able to meet such expenses. MATION.—The Secretary, acting through the ø‘‘(c) CERTAIN CIRCUMSTANCES.—The Sec- Administrator of the Health Resources and achieving higher donation rates, including retary may, in carrying out subsection (a), Services Administration and the Director of among minority populations. ø‘‘(3) REPORT.—Not later than 18 months consider— the Agency for Healthcare Research and ø Quality shall develop scientific evidence in after the date of enactment of this section, ‘‘(1) the term ‘donating individuals’ as in- support of efforts to increase organ donation the Institute of Medicine shall submit to the cluding individuals who in good faith incur and improve the recovery, preservation, and Secretary a report concerning the evaluation qualifying expenses toward the intended do- transportation of organs. conducted under this subsection. Such report nation of an organ but with respect to whom, ø‘‘(b) ACTIVITIES.—In carrying out sub- shall include recommendations for adminis- for such reasons as the Secretary determines section (a), the Secretary shall— trative actions and, if necessary, legislation to be appropriate, no donation of the organ ø‘‘(1) conduct or support evaluation re- in order to replicate the best practices iden- occurs; and search to determine whether interventions, tified in the evaluation and to otherwise in- ø‘‘(2) the term ‘qualifying expenses’ as in- technologies, or other activities improve the crease organ donation and recovery rates. cluding the expenses of having relatives or effectiveness, efficiency, or quality of exist- ø‘‘(b) IOM REPORT ON LIVING DONATIONS.— other individuals, not to exceed 2, who ac- ing organ donation practice; ø‘‘(1) IN GENERAL.—The Secretary shall company or assist the donating individual ø‘‘(2) undertake or support periodic reviews enter into a contract with the Institute of for purposes of subsection (a) (subject to of the scientific literature to assist efforts of Medicine to conduct an evaluation of living making payment for only such types of ex- professional societies to ensure that the clin- donation practices and procedures. Such penses as are paid for donating individual). ical practice guidelines that they develop re- evaluation shall include, but is not limited ø‘‘(d) RELATIONSHIP TO PAYMENTS UNDER flect the latest scientific findings; to an assessment of issues relating to in- OTHER PROGRAMS.—An award may be made ø‘‘(3) ensure that scientific evidence of the formed consent and the health risks associ- under subsection (a) only if the applicant in- research and other activities undertaken ated with living donation (including possible volved agrees that the award will not be ex- under this section is readily accessible by reduction of long-term effects). pended to pay the qualifying expenses of a the organ procurement workforce; and ø‘‘(2) REPORT.—Not later than 18 months donating individual to the extent that pay- ø‘‘(4) work in coordination with the appro- after the date of enactment of this section, ment has been made, or can reasonably be priate professional societies as well as the the Institute of Medicine shall submit to the expected to be made, with respect to such ex- Organ Procurement and Transplantation Secretary a report concerning the evaluation penses— Network and other organ procurement and conducted under this subsection. ø‘‘(1) under any State compensation pro- transplantation organizations to develop evi- ø‘‘(c) REPORT ON DONATION AND RECOVERY gram, under an insurance policy, or under dence and promote the adoption of such ACTIVITIES.— any Federal or State health benefits pro- proven practices. ø‘‘(1) IN GENERAL.—The Secretary as part gram; ø‘‘(c) RESEARCH, DEMONSTRATIONS, AND of the report specified in 274d shall submit an ø‘‘(2) by an entity that provides health TRAINING.—The Secretary, acting through evaluation concerning federally supported or services on a prepaid basis; or the Administrator of the Health Resources conducted organ donation and recovery ac- ø‘‘(3) by the recipient of the organ. and Services Administration and the Direc- tivities, including donation and recovery ac- ø‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— tor of the Agency for Healthcare Research tivities evaluated or conducted under the For the purpose of carrying out this section, and Quality, as appropriate, shall provide amendments made by the Organ Donation there is authorized to be appropriated support for research, demonstrations, and and Recovery Improvement Act to increase $5,000,000 for fiscal year 2004, and such sums training as appropriate, to— organ donation and recovery rates. as may be necessary for each of fiscal years ø ‘‘(1) develop a uniform clinical vocabulary ø‘‘(2) REQUIREMENTS.—To the extent prac- 2005 through 2008.’’. for organ recovery; ticable, each evaluation submitted under øTITLE III—ORGAN REGISTRIES ø‘‘(2) apply information technology and paragraph (1) shall— øSEC. 301. ADVISORY COMMITTEE. telecommunications to support the clinical ø‘‘(A) evaluate the effectiveness of activi- operations of organ procurement organiza- øPart H of title III of the Public Health ties, identify best practices, and make rec- Service Act (42 U.S.C. 273 et seq.) is amended tions; ommendations regarding the adoption of ø by inserting after section 371 the following: ‘‘(3) enhance the skill levels of the organ best practices with respect to organ donation ø‘‘SEC. 371A. ADVISORY COMMITTEE. procurement workforce in undertaking qual- and recovery; and ø‘‘(a) IN GENERAL.—Not later than 6 ity improvement activities; and ø‘‘(B) assess organ donation and recovery ø months after enactment, the Secretary shall ‘‘(4) assess specific organ recovery, preser- activities that are recently completed, ongo- establish an advisory committee to study ex- vation, and transportation technologies. ing, or planned.’’. ø‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— isting organ donor registries and make rec- ø For the purpose of carrying out this section, SEC. 105. TECHNICAL AMENDMENT CON- ommendations to Congress regarding the CERNING ORGAN PURCHASES. there are authorized to be appropriated costs, benefits, and expansion of such reg- øSection 301(c)(2) of the National Organ $5,000,000 for fiscal year 2004, and such sums istries. Transplant Act (42 U.S.C. 274e(c)(2)) is as may be necessary for each of fiscal years ø‘‘(b) MEMBERSHIP.—The committee shall 2005 through 2008.’’. amended by adding at the end the following: be composed of 10 members of whom— øSEC. 104. REPORTS. ‘‘Such term does not include familial, emo- ø‘‘(1) at least 1 member shall be a physi- øPart H of title III of the Public Health tional, psychological, or physical benefit to cian with experience performing transplants; Service Act (42 U.S.C. 273 et seq.) is amended an organ donor, recipient, or any other party ø‘‘(2) at least 1 member shall have experi- by inserting after section 378C, as added by to an organ donation event.’’. ence in organ recovery; section 103, the following: øTITLE II—LIVING DONATION EXPENSES ø‘‘(3) at least 1 member shall be representa- ø‘‘SEC. 378D. REPORTS. øSEC. 201. REIMBURSEMENT OF TRAVEL AND tive of an organization with experience con- ø‘‘(a) IOM REPORT ON BEST PRACTICES.— SUBSISTENCE EXPENSES INCURRED ducting national awareness campaigns and ø‘‘(1) IN GENERAL.—The Secretary shall TOWARD LIVING ORGAN DONATION. donor outreach; enter into a contract with the Institute of øSection 377 of the Public Health Service ø‘‘(4) at least 1 member shall be representa- Medicine to conduct an evaluation of the Act (42 U.S.C. 274f) is amended to read as fol- tive of a State with an existing donor reg- organ donation practices of organ procure- lows: istry; ment organizations, States, other countries, ø‘‘SEC. 377. REIMBURSEMENT OF TRAVEL AND ø‘‘(5) at least 1 member shall have experi- and other appropriate organizations. SUBSISTENCE EXPENSES INCURRED ence with national information systems ø‘‘(2) CONSIDERATIONS.—In conducting the TOWARD LIVING ORGAN DONATION. where coordination occurs with State-based evaluation under paragraph (1), the Institute ø‘‘(a) IN GENERAL.—The Secretary may systems; and of Medicine shall examine— award grants to States, transplant centers, ø‘‘(6) at least 1 member shall represent ø‘‘(A) existing barriers to organ donation, qualified organ procurement organizations donor families, transplant recipients, and including among minority populations; and under section 371, or other public or private those awaiting transplantation. ø‘‘(B) best donation and recovery practices, entities for the purpose of— ø‘‘(c) INITIAL MEETING.—Not later than 30 including— ø‘‘(1) providing for the reimbursement of days after the date on which all members of ø‘‘(i) mandated choice and presumed con- travel and subsistence expenses incurred by the committee have been appointed, the sent; individuals toward making living donations committee shall hold its first meeting. ø‘‘(ii) organ procurement organization and of their organs (in this section referred as ø‘‘(d) MEETINGS.—The committee shall provider consent practices (including con- ‘donating individuals’); and meet at the call of the Chairman who shall sent best practices); ø‘‘(2) providing for the reimbursement of be selected by the Secretary. ø‘‘(iii) the efficacy and reach of existing such incidental nonmedical expenses that ø‘‘(e) COMPENSATION.—Each member of the State routine notification laws with respect are so incurred as the Secretary determines committee shall not receive compensation to organ procurement organizations; by regulation to be appropriate. for services provided under this section.

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ø‘‘(f) TRAVEL EXPENSES.—The members of ‘‘SEC. 377. REIMBURSEMENT OF TRAVEL AND SUB- ness, public education and outreach activities, the committee shall be allowed travel ex- SISTENCE EXPENSES INCURRED TO- and programs designed to increase the number penses, including per diem in lieu of subsist- WARD LIVING ORGAN DONATION. of organ donors within the State, including liv- ence, at rates authorized for employees of ‘‘(a) IN GENERAL.—The Secretary may award ing donors. To be eligible, each State shall— agencies under subchapter I of chapter 57 of grants to States, transplant centers, qualified ‘‘(1) submit an application to the Department title 5, United States Code, while away from organ procurement organizations under section in the form prescribed; their homes or regular places of business in 371, or other public or private entities for the ‘‘(2) establish yearly benchmarks for improve- the performance of services for the com- purpose of— ment in organ donation rates in the State; and mittee. ‘‘(1) providing for the reimbursement of travel ‘‘(3) report to the Secretary on an annual ø‘‘(g) ADMINISTRATIVE SUPPORT.—The Sec- and subsistence expenses incurred by individ- basis a description and assessment of the State’s retary shall ensure that the committee is uals toward making living donations of their or- use of these grant funds, accompanied by an as- provided with administrative support or any gans (in this section referred to as ‘donating in- sessment of initiatives for potential replication other technical assistance that such com- dividuals’); and in other States. mittee needs in carrying out its duties. ‘‘(2) providing for the reimbursement of such Funds may be used by the State or in partner- ø‘‘(h) PERMANENT COMMITTEE.—Section 14 incidental nonmedical expenses that are so in- ship with other public agencies or private sector of the Federal Advisory Committee Act shall curred as the Secretary determines by regulation institutions for education and awareness efforts, not apply to the committee established to be appropriate. information dissemination, activities pertaining under this section. ‘‘(b) PREFERENCE.—The Secretary shall, in to the State donor registry, and other innovative ø‘‘(i) REPORT.—Not later than 1 year after carrying out subsection (a), give preference to donation specific initiatives, including living do- the date on which the committee is estab- those individuals that the Secretary determines nation. lished under subsection (a), the committee are more likely to be otherwise unable to meet ‘‘(d) EDUCATIONAL ACTIVITIES.—The Sec- shall prepare and submit to Congress a re- such expenses. retary, in coordination with the Organ Procure- port regarding the status of organ donor reg- ‘‘(c) CERTAIN CIRCUMSTANCES.—The Secretary ment and Transplantation Network and other istries, current best practices, the effect of may, in carrying out subsection (a), consider— appropriate organizations, shall support the de- organ donor registries on organ donation ‘‘(1) the term ‘donating individuals’ as includ- velopment and dissemination of educational ma- rates, the merits of expanding organ donor ing individuals who in good faith incur quali- terials to inform health care professionals and registries, issues relating to consent, the ef- fying expenses toward the intended donation of other appropriate professionals in issues sur- ficacy of current privacy protections, poten- an organ but with respect to whom, for such rounding organ, tissue, and eye donation in- tial forms of technical assistance, and rec- reasons as the Secretary determines to be appro- cluding evidence-based proven methods to ap- ommendations regarding improving the ef- priate, no donation of the organ occurs; and proach patients and their families, cultural sen- fectiveness and establishing formal linkages ‘‘(2) the term ‘qualifying expenses’ as includ- sitivities, and other relevant issues. ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— between organ donor registries. ing the expenses of having relatives or other in- For the purpose of carrying out this section, ø‘‘(j) DEFINITION.—In this section, the term dividuals, not to exceed 2, who accompany or ‘organ donor registry’ means a listing of in- assist the donating individual for purposes of there are authorized to be appropriated dividuals who have indicated their desire to subsection (a) (subject to making payment for $15,000,000 for fiscal year 2004, and such sums as donate their organs and tissue upon their only those types of expenses that are paid for a may be necessary for each of the fiscal years death through driver’s license preferences or donating individual). 2005 through 2008. Such authorization of appro- other formal mechanisms.’’. ‘‘(d) RELATIONSHIP TO PAYMENTS UNDER priations is in addition to any other authoriza- tions of appropriations that are available for ø OTHER PROGRAMS.—An award may be made SEC. 302. NATIONAL LIVING DONOR REGISTRY. under subsection (a) only if the applicant in- such purpose. øPart H of title III of the Public Health volved agrees that the award will not be ex- ‘‘SEC. 377B. GRANTS REGARDING HOSPITAL Service Act (42 U.S.C. 273 et seq.), as amend- pended to pay the qualifying expenses of a do- ORGAN DONATION COORDINATORS. ed by section 301, is further amended by in- nating individual to the extent that payment ‘‘(a) AUTHORITY.— serting after section 371A the following: has been made, or can reasonably be expected to ‘‘(1) IN GENERAL.—The Secretary may award ø‘‘SEC. 371B. NATIONAL LIVING DONOR REG- be made, with respect to such expenses— grants to qualified organ procurement organiza- ISTRY. ‘‘(1) under any State compensation program, tions and hospitals under section 371 to estab- ø ‘‘The Secretary shall by contract estab- under an insurance policy, or under any Fed- lish programs coordinating organ donation ac- lish and maintain a registry of individuals eral or State health benefits program; tivities of eligible hospitals and qualified organ who have served as living organ donors for ‘‘(2) by an entity that provides health services procurement organizations under section 371. the purpose of evaluating the long-term on a prepaid basis; or Such activities shall be coordinated to increase health effects associated with living organ ‘‘(3) by the recipient of the organ. the rate of organ donations for such hospitals. donations.’’. ‘‘(e) DEFINITIONS.—For purposes of this sec- ‘‘(2) ELIGIBLE HOSPITAL.—For purposes of this øSEC. 303. QUALIFIED ORGAN PROCUREMENT OR- tion: section, an eligible hospital is a hospital that GANIZATIONS. ‘‘(1) The term ‘donating individuals’ has the performs significant trauma care, or a hospital øSection 371(a) of the Public Health Serv- meaning indicated for such term in subsection or consortium of hospitals that serves a popu- ice Act (42 U.S.C. 273(a)) is amended by strik- (a)(1), subject to subsection (c)(1). lation base of not fewer than 200,000 individ- ing paragraph (3).¿ ‘‘(2) The term ‘qualifying expenses’ means the uals. SECTION 1. SHORT TITLE. expenses authorized for purposes of subsection ‘‘(b) ADMINISTRATION OF COORDINATION PRO- This Act may be cited as the ‘‘Organ Donation (a), subject to subsection (c)(2). GRAM.—A condition for the receipt of a grant and Recovery Improvement Act’’. ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.— under subsection (a) is that the applicant in- SEC. 2. SENSE OF CONGRESS. For the purpose of carrying out this section, volved agree that the program under such sub- section will be carried out jointly— (a) PUBLIC AWARENESS OF NEED FOR ORGAN there is authorized to be appropriated $5,000,000 ‘‘(1) by representatives from the eligible hos- DONATION.—It is the sense of Congress that the for each of the fiscal years 2004 through 2008.’’. pital and the qualified organ procurement orga- Federal Government should carry out programs SEC. 4. PUBLIC AWARENESS; STUDIES AND DEM- nization with respect to which the grant is to educate the public with respect to organ do- ONSTRATIONS. Part H of title III of the Public Health Service made; and nation, including the need to provide for an ‘‘(2) by such other entities as the representa- adequate rate of such donations. Act (42 U.S.C. 273 et seq.) is amended by insert- ing after section 377 the following: tives referred to in paragraph (1) may designate. (b) FAMILY DISCUSSIONS OF ORGAN DONA- ‘‘(c) REQUIREMENTS.—Each entity receiving a TIONS.—Congress recognizes the importance of ‘‘SEC. 377A. PUBLIC AWARENESS; STUDIES AND grant under subsection (a) shall— families pledging to each other to share their DEMONSTRATIONS. ‘‘(1) establish joint organ procurement organi- lives as organ and tissue donors and acknowl- ‘‘(a) ORGAN DONATION PUBLIC AWARENESS zation and hospital designated leadership re- edges the importance of discussing organ and PROGRAM.—The Secretary shall, directly or sponsibility and accountability for the project; tissue donation as a family. through grants or contracts, establish a public ‘‘(2) develop mutually agreed upon overall (c) LIVING DONATIONS OF ORGANS.—Con- education program in cooperation with existing project performance goals and outcome meas- gress— national public awareness campaigns to in- ures, including interim outcome targets; and (1) recognizes the generous contribution made crease awareness about organ donation and the ‘‘(3) collaboratively design and implement an by each living individual who has donated an need to provide for an adequate rate of such do- appropriate data collection process to provide organ to save a life; and nations. ongoing feedback to hospital and organ procure- (2) acknowledges the advances in medical ‘‘(b) STUDIES AND DEMONSTRATIONS.—The ment organization leadership on project progress technology that have enabled organ transplan- Secretary may make peer reviewed grants or and results. tation with organs donated by living individuals contracts to public and nonprofit private enti- ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this to become a viable treatment option for an in- ties for the purpose of carrying out studies and section shall be construed to interfere with regu- creasing number of patients. demonstration projects to increase organ dona- lations in force on the date of enactment of the SEC. 3. REIMBURSEMENT OF TRAVEL AND SUB- tion and recovery rates, including living dona- Organ Donation and Recovery Improvement SISTENCE EXPENSES INCURRED TO- tion. Act. WARD LIVING ORGAN DONATION. ‘‘(c) GRANTS TO STATES.—The Secretary may ‘‘(e) EVALUATIONS.—Within 3 years after the Section 377 of the Public Health Service Act make grants to States for the purpose of assist- award of grants under this section, the Sec- (42 U.S.C. 274f) is amended to read as follows: ing States in carrying out organ donor aware- retary shall ensure an evaluation of programs

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00186 Fmt 0624 Sfmt 6333 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16067 carried out pursuant to subsection (a) in order ing after section 377C, as added by section 5, the by proposals to increase cadaveric donation, to determine the extent to which the programs following: shall submit to the appropriate committees of have increased the rate of organ donation for ‘‘SEC. 377D. REPORT RELATING TO ORGAN DONA- Congress a report that evaluates the ethical im- the eligible hospitals involved. TION AND THE RECOVERY, PRESER- plications of such proposals. ‘‘(f) MATCHING REQUIREMENT.—The Secretary VATION, AND TRANSPORTATION OF SEC. 9. QUALIFIED ORGAN PROCUREMENT ORGA- may not award a grant to a qualifying organ ORGANS. NIZATIONS. donation entity under this section unless such ‘‘(a) IN GENERAL.—Not later than December Section 371(a) of the Public Health Service Act entity agrees that, with respect to costs to be in- 31, 2005, and every 2 years thereafter, the Sec- (42 U.S.C. 273(a)) is amended by striking para- curred by the entity in carrying out activities retary shall report to the appropriate committees graph (3). for which the grant was awarded, the entity of Congress on the activities of the Department AFRICAN AMERICANS ON THE ORGAN shall contribute (directly or through donations carried out pursuant to this part, including an TRANSPLANT WAITING LIST from public or private entities) non-Federal con- evaluation describing the extent to which the Mr. KENNEDY. Mr. President, I wish activities have affected the rate of organ dona- tributions in cash or in kind, in an amount to engage in a colloquy with the distin- equal to not less than 30 percent of the amount tion and recovery. of the grant awarded to such entity. ‘‘(b) REQUIREMENTS.—To the extent prac- guished majority leader, the Senator ‘‘(g) FUNDING.—For the purpose of carrying ticable, each report submitted under subsection from Tennessee, Mr. FRIST. I appre- out this section, there are authorized to be ap- (a) shall— ciate his efforts on the bill before us propriated $3,000,000 for fiscal year 2004, and ‘‘(1) evaluate the effectiveness of activities, today, and agree that this is a vitally such sums as may be necessary for each of fiscal identify effective activities, and disseminate important area. I believe this bill rep- years 2005 through 2008.’’. such findings with respect to organ donation resents a good first step, but I would and recovery; SEC. 5. STUDIES RELATING TO ORGAN DONATION point out that minorities comprise AND THE RECOVERY, PRESERVA- ‘‘(2) assess organ donation and recovery ac- TION, AND TRANSPORTATION OF OR- tivities that are recently completed, ongoing, or over 40 percent of the organ transplant GANS. planned; and waiting list, even though they rep- Part H of title III of the Public Health Service ‘‘(3) evaluate progress on the implementation resent approximately 25 percent of the Act (42 U.S.C. 273 et seq.) is amended by insert- of the plan required under subsection (c)(4). population. Half of the patients who ing after section 377B, as added by section 4, the ‘‘(c) INITIAL REPORT REQUIREMENTS.—The ini- needlessly die while awaiting a trans- following: tial report under subsection (a) shall include the plant are minorities. ‘‘SEC. 377C. STUDIES RELATING TO ORGAN DONA- following: African Americans are more likely to TION AND THE RECOVERY, PRESER- ‘‘(1) An evaluation of the organ donation have end stage renal disease because VATION, AND TRANSPORTATION OF practices of organ procurement organizations, ORGANS. States, other countries, and other appropriate they have the highest rate of hyper- ‘‘(a) DEVELOPMENT OF SUPPORTIVE INFORMA- organizations including an examination across tension in the world. Almost 40 percent TION.—The Secretary, acting through the Direc- all populations, including those with low organ of Americans on the waiting list for tor of the Agency for Healthcare Research and donation rates, of— kidneys are African American, but Quality shall develop scientific evidence in sup- ‘‘(A) existing barriers to organ donation; and they receive only 20 percent of avail- port of efforts to increase organ donation and ‘‘(B) the most effective donation and recovery able kidneys. improve the recovery, preservation, and trans- practices. Evidence suggests that African portation of organs. ‘‘(2) An evaluation of living donation prac- Americans may face discrimination ‘‘(b) ACTIVITIES.—In carrying out subsection tices and procedures. Such evaluation shall in- (a), the Secretary shall— clude an assessment of issues relating to in- during the transplantation process. ‘‘(1) conduct or support evaluation research to formed consent and the health risks associated White patients are 5 times more likely determine whether interventions, technologies, with living donation (including possible reduc- than African Americans to receive or other activities improve the effectiveness, effi- tion of long-term effects). transplants, even when they are equal- ciency, or quality of existing organ donation ‘‘(3) An evaluation of— ly qualified. practice; ‘‘(A) federally supported or conducted organ We must increase our commitment to ‘‘(2) undertake or support periodic reviews of donation efforts and policies, as well as feder- ending health disparities. I believe that the scientific literature to assist efforts of pro- ally supported or conducted basic, clinical, and more must be done to improve the fessional societies to ensure that the clinical health services research (including research on practice guidelines that they develop reflect the preservation techniques an organ rejection and rates of organ donation among minor- latest scientific findings; compatibility); and ity communities and focus specifically ‘‘(3) ensure that scientific evidence of the re- ‘‘(B) the coordination of such efforts across among these populations to determine search and other activities undertaken under relevant agencies within the Department and what the barriers to organ donation this section is readily accessible by the organ throughout the Federal Government. and transplantation currently are, as procurement workforce; and ‘‘(4) An evaluation of the costs and benefits of well as devise mechanisms to reduce or ‘‘(4) work in coordination with the appro- State donor registries, including the status of priate professional societies as well as the Organ eliminate such barriers. existing State donor registries, the effect of State I am disappointed that the legisla- Procurement and Transplantation Network and donor registries on organ donation rates, issues other organ procurement and transplantation relating to consent, and recommendations re- tion did not include provisions to di- organizations to develop evidence and promote garding improving the effectiveness of State rectly address the disparity in organ the adoption of such proven practices. donor registries in increasing overall organ do- donation and transplantation and the ‘‘(c) RESEARCH AND DISSEMINATION.—The Sec- nation rates. special needs of minority populations. I retary, acting through the Director of the Agen- ‘‘(5) A plan to improve federally supported or had hoped to include these provisions. cy for Healthcare Research and Quality, as ap- conducted organ donation and recovery activi- Nonetheless, the need to enhance propriate, shall provide support for research ties, including, when appropriate, the establish- organ donation is too compelling to ig- and dissemination of findings, to— ment of baselines and benchmarks to measure ‘‘(1) develop a uniform clinical vocabulary for nore, and for that reason, I am sup- overall outcomes of these programs. Such plan porting the current legislation. It is organ recovery; shall provide for the ongoing coordination of ‘‘(2) apply information technology and tele- federally supported or conducted organ dona- our expectation that recipients of communications to support the clinical oper- tion and research activities.’’. grant awards and contracts authorized ations of organ procurement organizations; SEC. 7. NATIONAL LIVING DONOR MECHANISMS. under this Act will include consider- ‘‘(3) enhance the skill levels of the organ pro- Part H of title III of the Public Health Service ation of minority concerns in all ac- curement workforce in undertaking quality im- Act (42 U.S.C. 273 et seq.), is amended by insert- tivities. provement activities; and ing after section 371 the following: I hope to work with the majority ‘‘(4) assess specific organ recovery, preserva- tion, and transportation technologies. ‘‘SEC. 371A. NATIONAL LIVING DONOR MECHA- leader next year to address this critical NISMS. ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— issue. For the purpose of carrying out this section, ‘‘The Secretary is authorized to establish and Mr. FRIST. I appreciate the remarks there are authorized to be appropriated maintain mechanisms to evaluate the long-term of the Senator from Massachusetts. As $2,000,000 for fiscal year 2004, and such sums as effects associated with living organ donations the Senator knows, the question of may be necessary for each of fiscal years 2005 by individuals who have served as living do- nors.’’. health care disparities is a keenly im- through 2008.’’. portant issue to me. He and I have suc- SEC. 8. STUDY. SEC. 6. REPORT RELATING TO ORGAN DONATION cessfully worked in this area in the AND THE RECOVERY, PRESERVA- Not later than December 31, 2004, the Sec- TION, AND TRANSPORTATION OF OR- retary of Health and Human Services, in con- past, and I hope will be able to simi- GANS. sultation with appropriate entities, including larly collaborate in the future. Part H of title III of the Public Health Service advocacy groups representing those populations Much work in the area of minorities Act (42 U.S.C. 273 et seq.) is amended by insert- that are likely to be disproportionately affected and organ donation is happening today.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00187 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16068 CONGRESSIONAL RECORD — SENATE November 25, 2003 These issues were strong recommenda- grade indicated while assigned to a position To be major general tions of the Secretary’s Advisory Com- of importance and responsibility under title Brig. Gen. James R. Sholar, 0000 10 U.S.C., section 601: mittee on Transplantation, and COT in To be brigadier general To be lieutenant general fact went further and requested a study Col. Henry J. Ostermann, 0000 Maj. Gen. William Welser, III, 0000 from NIH to define the reasons for Afri- NAVY can Americans to have diminished The following named officers for appoint- ment in the United States Air Force to the The following named officer for appoint- graft survival. And just earlier this ment in the United States Navy to the grade fall, HRSA announced 8 grants that it grade indicated under title 10, U.S.C., section 624: indicated while assigned to a position of im- was funding to test social and behav- To be brigadier general portance and responsibility under title 10, ioral interventions to increase organ U.S.C., section 601: and tissue donation—five of these, to- Colonel Paul F. Capasso, 0000 Colonel Floyd L. Carpenter, 0000 To be vice admiral taling more than $1.6 million, focused Colonel William A. Chambers, 0000 Rear Adm. Walter B. Massenburg, 0000 on minority and underserved popu- Colonel Paul A. Dettmer, 0000 The following named officers for appoint- lations. Colonel David K. Edmonds, 0000 ment in the United States Navy to the grade And we have a bill today that has Colonel Jack B. Egginton, 0000 indicated under title 10, U.S.C., section 624: been developed through a bipartisan, Colonel David J. Eichhorn, 0000 To be rear admiral bicameral process intended to allow us Colonel David W. Eidsaune, 0000 Colonel Burton M. Field, 0000 Rear Adm. (lh) Robert E. Cowley, III, 0000 to make quick action on the bill. I ap- Rear Adm. (lh) Steven W. Maas, 0000 preciate the Senator’s willingness to Colonel Alfred K. Flowers, 0000 Colonel Randal D. Fullhart, 0000 The following named officer for appoint- support this bill, and look forward to Colonel Marke F. Gibson, 0000 ment in the United States Navy to the grade working with him in this area next Colonel Robert H. Holmes, 0000 indicated under title 10, U.S.C., section 624: year. Colonel Stephen L. Hoog, 0000 To be rear admiral (lower half) Mr. KENNEDY. I commend his work Colonel Larry D. James, 0000 Capt. Brian G. Brannman, 0000 and congratulate him on passage of Colonel Ralph J. Jodice, II, 0000 Colonel Jan Marc Jouas, 0000 The following named officer for appoint- this bill. I look forward to working ment in the United States Naval Reserve to with the Senator from Tennessee and Colonel Jay H. Lindell, 0000 Colonel Kay C. McClain, 0000 the grade indicated under title 10, U.S.C., others to build on this important start section 12203: and draft bipartisan legislation in the Colonel Robert H. McMahon, 0000 Colonel Stephen P. Mueller, 0000 To be rear admiral (lower half) next session to address the unique Colonel William J. Rew, 0000 Capt. Raymond K. Alexander, 0000 health and health care needs of minor- Colonel Katherine E. Roberts, 0000 The following named officers for appoint- ity and underserved populations. Colonel Kip L. Self, 0000 ment in the United States Navy to the grade Mr. MCCONNELL. I ask unanimous Colonel Michael A. Snodgrass, 0000 indicated under title 10, U.S.C., section 624: consent that the committee substitute Colonel David M. Snyder, 0000 To be rear admiral be agreed to; the bill, as amended, be Colonel Larry O. Spencer, 0000 read the third time and passed; the mo- Colonel Robert P. Steel, 0000 Rear Adm. (lh) Donald K. Bullard, 0000 Rear Adm. (lh) Albert M. Calland, III, 0000 tion to reconsider be laid upon the Colonel Thomas J. Verbeck, 0000 Colonel James A. Whitmore, 0000 Rear Adm. (lh) Robert T. Conway, Jr., 0000 table, and any statements be printed in Colonel Bobby J. Wilkes, 0000 Rear Adm. (lh) John J. Donnelly, 0000 the RECORD. Colonel Robert M. Worley, II, 0000 Rear Adm. (lh) Bruce B. Engelhardt, 0000 The PRESIDING OFFICER. Without The following named officer for appoint- Rear Adm. (lh) Charles S. Hamilton, II, 0000 objection, it is so ordered. ment in the United States Air Force to the Rear Adm. (lh) John C. Harvey, Jr., 0000 The committee amendment in the grade indicated under title 10, U.S.C., section Rear Adm. (lh) Carlton B. Jewett, 0000 nature of a substitute was agreed to. 624: Rear Adm. (lh) Matthew G. Moffit, 0000 Rear Adm. (lh) Michael P. Nowakowski, 0000 The bill (S. 573), as amended, was To be brigadier general read the third time and passed. Rear Adm. (lh) Harold D. Starling, II, 0000 Col. Stephen L. Lanning, 0000 Rear Adm. (lh) James Stavridis, 0000 f The following named officer for appoint- Rear Adm. (lh) Michael C. Tracy, 0000 EXECUTIVE SESSION ment in the United States Air Force to the Rear Adm. (lh) John J. Waickwicz, 0000 grade indicated under title 10, U.S.C., section AIR FORCE 624: PN1073 Air Force nomination of Gary H. To be major general EXECUTIVE CALENDAR Sharp, which was received by the Senate and Brigadier General Robin E. Scott, 0000 Mr. MCCONNELL. Mr. President, I appeared in the Congressional Record of Oc- ARMY ask unanimous consent that the Sen- tober 23, 2003. The following named officer for appoint- PN1074 Air Force nomination of Jeffrey N. ate immediately proceed to executive ment in the United States Army to the grade Leknes, which was received by the Senate session to consider the following nomi- indicated while assigned to a position of im- and appeared in the Congressional Record of nations on today’s Executive Calendar: portance and responsibility under title 10, October 23, 2003. Nos. 478, 490, 495 through 508, and all U.S.C., section 601: PN1075 Air Force nomination of Samuel B. nominations on the Secretary’s desk. To be lieutenant general Echaure, which was received by the Senate and appeared in the Congressional Record of I further ask unanimous consent that Maj. Gen. Larry J. Dodgen, 0000 the nominations be confirmed en bloc, The following named officer for appoint- October 23, 2003. the motions to reconsider be laid upon ment in the United States Army to the grade PN1076 Air Force nominations (2) begin- indicated while assigned to a position of im- ning THOMAS E. JAHN, and ending ROD- the table, the President be imme- NEY D. LEWIS, which nominations were re- diately notified of the Senate’s action, portance and responsibility under title 10, U.S.C., section 601: ceived by the Senate and appeared in the and the Senate then return to legisla- Congressional Record of October 23, 2003. To be lieutenant general tive session. PN1077 Air Force nominations (5) begin- The PRESIDING OFFICER. Without Maj. Gen. John M. Curran, 0000 ning SAMUEL C. FIELDS, and ending objection, it is so ordered. The following named officer for appoint- KEVIN C. ZEECK, which nominations were The nominations considered and con- ment in the United States Army to the grade received by the Senate and appeared in the firmed en bloc are as follows: indicated under title 10, U.S.C., section 624: Congressional Record of October 23, 2003. To be major general PN1116 Air Force nomination of Robert G. NOMINATIONS Brig. Gen. Keith M. Huber, 0000 Cates, III, which was received by the Senate DEPARTMENT OF HOMELAND SECURITY and appeared in the Congressional Record of The following named officer for appoint- November 17, 2003. Michael J. Garcia, of New York, to be an ment in the United States Army to the grade PN1117 Air Force nomination of Mary J. Assistant Secretary of Homeland Security. indicated under title 10, U.S.C., section 624: DEPARTMENT OF HOMELAND SECURITY Quinn, which was received by the Senate and To be major general appeared in the Congressional Record of No- James M. Loy, of Virginia, to be Deputy Brig. Gen. Dennis E. Hardy, 0000 vember 17, 2003. Secretary of Homeland Security. The following named officers for appoint- PN1118 Air Force nominations (2) begin- AIR FORCE ment in the Reserve of the Army to the ning CHRISTOPHER C. ERICKSON, and end- The following named officer for appoint- grades indicated under title 10, U.S.C., sec- ing MARK A. MCCLAIN, which nominations ment in the United States Air Force to the tion 12203: were received by the Senate and appeared in

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00188 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16069 the Congressional Record of November 17, VIGNOLA, which nominations were received rity, such as passenger and baggage 2003. by the Senate and appeared in the Congres- screening. But critical deficiencies sional Record of November 3, 2003. ARMY exist in these and other areas of air se- PN1087 Army nomination of Lance A. PUBLIC HEALTH SERVICE Betros, which was received by the Senate PN1010 Public Health Service nominations curity, and the agency has barely and appeared in the Congressional Record of (174) beginning Vincent A. Berkley, and end- begun to tackle its broader transpor- October 30, 2003. ing James A. Syms, which nominations were tation security mandate. Although Ad- PN1088 Army nominations (69) beginning received by the Senate and appeared in the miral Loy will be leaving his post as THOMAS B. SWEENEY, and ending PAUL L. Congressional Record of October 2, 2003. Administrator of TSA, I believe it is ZANGLIN, which nominations were received NOMINATION OF ADMIRAL JAMES LOY TO BE by the Senate and appeared in the Congres- DEPUTY SECRETARY OF THE DEPARTMENT OF essential that he continue to place a sional Record of October 30, 2003. HOMELAND SECURITY high priority on resolving these crit- PN1120 Army nominations (2) beginning Mr. LIEBERMAN. Mr. President, I ical issues. JOHN D. MCGOWAN, II, and ending KEN- commend Admiral Loy for his willing- NETH E. NETTLES, which nominations By law, the Transportation Security were received by the Senate and appeared in ness to take on the position of Deputy Administration is responsible for secu- the Congressional Record of November 17, Secretary of the Department of Home- rity in all modes of transportation. But land Security, one of the most impor- 2003. TSA has thus far focused almost exclu- PN1121 Army nominations (2) beginning tant and also most difficult jobs in the VERNAL G. ANDERSON, and ending DON- federal government. The fledgling De- sively on commercial aviation, leaving ALD J. KERR, which nominations were re- partment of Homeland Security is a treacherous weaknesses in other trans- ceived by the Senate and appeared in the critical undertaking for our govern- portation systems—a problem I out- Congressional Record of November 17, 2003. PN1122 Army nominations (3) beginning ment and our country. We know that lined in a July 9 letter to Secretary GASTON P. BATHALON, and ending PAULA we face real and ongoing threats to our Ridge. For fiscal year 2004, the admin- J. RUTAN, which nominations were received domestic security from terrorism, and istration sought $4.3 billion for pas- by the Senate and appeared in the Congres- the Department is our best hope of senger aviation security, but only $86 sional Record of November 17, 2003. bringing the critical focus, resources million for TSA’s maritime and land PN1123 Army nomination of William B. and leadership to bear on these new Carr, Jr., which was received by the Senate security efforts. Congressional appro- and appeared in the Congressional Record of and insidious threats. It is a momen- priators added some additional re- November 17, 2003. tous undertaking fraught with chal- sources for maritime and land security, PN1124 Army nominations (3) beginning lenges, and we must give the Depart- but there is still very little money JOHN E. ATWOOD, and ending WILLIAM E. ment every support we can to achieve available for these critical needs. ZOESCH, which nominations were received its vital task. Unfortunately, in the by the Senate and appeared in the Congres- face of numerous expert reports chron- For instance, with respect to mari- sional Record of November 17, 2003. time transportation, the Coast Guard PN1125 Army nominations (2) beginning icling the terrorist threat to United CHERYL KYLE, and ending TERRY C. States citizens)—and the need for a has identified billions of dollars worth WASHAM, which nominations were received dramatic infusion of new federal of necessary improvements—and Con- by the Senate and appeared in the Congres- funds—President Bush has consistently gress has mandated greater security— sional Record of November 17, 2003. failed to embrace the challenge of yet the administration requested no PN1126 Army nominations (9) beginning homeland security with vision or re- MICHAEL A. BULEY, and ending GARY M. money for port security grants to help ZAUCHA, which nominations were received sources. make the changes and only $125 million As Deputy Secretary, Admiral Loy by the Senate and appeared in the Congres- for this purpose was ultimately in- will be second-in-command and have sional Record of November 17, 2003. cluded in the DHS appropriations bill. PN1129 Army nomination of Gary R. influence over the full array of DHS McMeen, which was received by the Senate policies and practices. As such, I hope Indeed, there is not even enough fund- and appeared in the Congressional Record of he will work forcefully to close the ex- ing for Coast Guard employees to re- November 17, 2003. isting gaps in our security—and in the view the security plans mandated COAST GUARD administration’s efforts on homeland under the Maritime Transportation Se- PN1095 Coast Guard nominations (13) be- security. I have detailed some of my curity Act. This even as expert upon ginning Jeffrey L. Busch, and ending John S. expert has identified the Nation’s 360 Welch, which nominations were received by concerns in other floor statements and the Senate and appeared in the Congres- in numerous letters to Secretary Ridge commercial ports as a leading cause for sional Record of November 3, 2003. and other DHS officials. We are, to concern on the homeland front—in PN1096 Coast Guard nominations (270) be- quote a distinguished report sponsored large part because of the valuable ginning William D. Adkins, and ending Mi- by the Council on Foreign Relations, goods and energy imports channeled chael S. Zidik, which nominations were re- ‘‘drastically underfunded, dangerously through these ports and because the ceived by the Senate and appeared in the unprepared’’ with respect to our state Congressional Record of November 3, 2003. millions of containers that enter this and local first responders and the fed- MARINE CORPS country by sea can hide untold dan- PN326 Marine Corps nomination of Michael eral government’s efforts here are fall- gers. ing far short. The administration is S. Nisley, which was received by the Senate Mass transit systems are another and appeared in the Congressional Record of thwarting a critical congressional February 11, 2003. mandate to create a true intelligence grave source of concern. We all remem- PN328 Marine Corps nominations (2) begin- fusion center within DHS. On critical ber the 1995 attack on the Tokyo sub- ning LEONARD HALIK, III, and ending ER- infrastructure protection, our govern- way, when members of a Japanese cult NEST R. HINES, which nominations were re- ment has yet to complete vital threat released sarin, a lethal chemical nerve ceived by the Senate and appeared in the gas, on five subway trains during rush Congressional Record of February 11, 2003. and risk assessments, much less imple- PN1089 Marine Corps nomination of David ment forceful measures to protect hour. Twelve people were killed and B. Morey, which was received by the Senate these critical assets. I will not repeat thousands injured. Only mistakes by and appeared in the Congressional Record of all those concerns here, but instead the terrorists kept the death toll from October 30, 2003. focus on the dangerous gaps I perceive being far higher. Here in the United NAVY with respect to transportation secu- States, our transit systems remain vul- PN1090 Navy nomination of Patrick J. rity—the issue that has been Admiral nerable to such an attack. In many Moran, which was received by the Senate Loy’s direct responsibility as head of and appeared in the Congressional Record of cases, transit officials have already October 30, 2003. the Transportation Security Adminis- identified steps to make the system PN1091 Navy nomination of Lawrence J. tration, TSA, and one over which he more secure, but simply cannot afford will continue to exercise considerable Chick, which was received by the Senate and to take them. Transit systems typi- appeared in the Congressional Record of Oc- influence. tober 30, 2003. TSA was created in the aftermath of cally struggle just to meet operating PN1098 Navy nomination of Robert E. Vin- 9/11 in response to the tragic weak- costs and are simply not in a position cent, II, which was received by the Senate nesses in the air security realm that to fund major new security invest- and appeared in the Congressional Record of ments on their own. A December 2002 November 3, 2003. were exposed by the attacks. Indeed, PN1099 Navy nominations (56) beginning TSA has made important strides to im- GAO report concluded that ‘‘insuffi- RODNEY A. BOLLING, and ending JAY S. prove certain aspects of aviation secu- cient funding is the most significant

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00189 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16070 CONGRESSIONAL RECORD — SENATE November 25, 2003 challenge in making . . . transit sys- partment of Transportation Inspector straightforward and cooperative fash- tems as safe and secure as possible.’’ General have identified in this ap- ion. The administration did recently award proach. TSA has still taken only pre- In this statement, I intend to de- some grants to help a number of urban liminary steps toward assessing secu- scribe in some detail the circumstances transit systems, but nowhere near the rity technologies that are needed to re- that I find troubling. To summarize, I kind of commitment that is needed to strict access to secure areas of air- have two main concerns. First, it took confront the problem. ports, despite the requirements of the Mr. Garcia far too long—until well Nor do we see a commitment to im- Aviation and Transportation Security after the Governmental Affairs Com- prove rail security, although vast Act that it do so. Airport perimeter se- mittee reported his nomination—to ac- quantities of hazardous materials are curity also requires significant im- knowledge what until then had been a shipped by rail. provement, according to GAO, includ- rather uncontroversial fact: that the Given this vast amount of work to be ing the need to guard against possible pendency of an investigation by an done by TSA in all modes of transpor- terrorist attacks using shoulder-fired agency’s Inspector General does not tation, it is inexplicable to me why the portable missiles from locations near preclude an official of that agency administration actually sought to de- airports. In addition, GAO has raised from responding to congressional re- crease the agency’s budget in FY 04. substantial concerns about the limited quests for information about matters But it is not simply a matter of progress TSA has made in shoring up that are the subject of the IG’s inves- money. TSA has not formulated the es- security at general aviation airports. tigation. A significant part of Con- sential strategic plans needed to guide To date, general aviation pilots and gress’ work involves overseeing how transportation security efforts. Admi- passengers are not screened before agencies do their jobs, and this com- ral Loy testified last May that the takeoff and the contents of general mittee in particular often conducts in- agency was close to finishing such a aviation planes are not screened at any vestigations of alleged waste, fraud and document—the National Transpor- point, leaving general aviation far abuse by agencies. If the pendency of tation System Security Plan or more open and potentially vulnerable an internal investigation stood as a per NTSSP. GAO has testified that this na- than commercial passenger aviation. se bar to congressional information re- tional plan is a ‘‘prerequisite’’ to in- I understand that the administra- quests, our oversight work would often vesting wisely in transportation secu- tion’s failure to seek adequate funding be stymied. Mr. Garcia’s assertion of rity. Yet as part of the hearing process and TSA’s deadlines have greatly con- virtual immunity from being ques- for this nomination, Admiral Loy stat- tributed to the challenges TSA faces in tioned about matters under internal in- ed that such a plan is still months remedying these and other gaps in our vestigation is unfortunately emblem- away, at best. aviation security. I pledge to continue atic of this administration’s and this Even in the area of passenger avia- my efforts to increase the resources we Department’s frequent stinginess with tion, where TSA has focused virtually devote to these needs. However, TSA sharing information with Congress all its resources, troubling gaps re- has also exercised inadequate oversight about matters that are appropriate main. Although TSA spent hundreds of of the contracts it has entered into to topics of congressional oversight. That millions to recruit and train screeners, perform many of the essential tasks this refusal to provide information oc- thousands of these employees are gone needed to improve aviation security. curred in the context of a committee’s due to layoffs and attrition and we now The resulting problems include the consideration of a nomination was all face serious screener shortages at some huge cost overrun of its screener hiring the more troubling, because it sug- airports. While I recognize that this is contract with NCS Pearson, which gested that even at the moment when a complex question, it simply is not ballooned from an original estimate of the incentive for cooperation was the clear that TSA has control of this issue $104 million to over $700 million. I in- greatest, the department was urging and is implementing a staffing level tend to watch closely to make sure its officials to resist appropriate re- needed to assure adequate security. that TSA implements stringent man- quests for information. The depart- There have been other problems. For agement controls and procedures so ment and Mr. Garcia now concede that example, TSA failed to complete back- that we can be assured TSA’s programs a pending IG investigation is not ground checks of many of the screeners are effective, appropriately focused and grounds for refusing to provide Con- hired before they were trained and de- achieving expected results. gress with information; as they ac- ployed, resulting in the discovery last NOMINATION OF MICHAEL GARCIA knowledge, Congress frequently in- spring that over 1200 screeners had fel- Mr. LIEBERMAN. Mr. President, al- quires into—and receives information ony convictions or other disqualifying though I do not intend to object to the about—matters under investigation. problems that required their termi- confirmation of Michael Garcia to be Although it came frustratingly late, I nation. Investigations by the DHS In- Assistant Secretary of the Department appreciate their willingness to revisit spector General and TSA’s Office of In- of Homeland Security, Bureau of Immi- their position and look forward to ternal Affairs into the baggage screen- gration and Customs Enforcement, greater cooperation from them on such er training program found that train- BICE, I do want to take this oppor- matters in the future. ees were given the questions and an- tunity to express my concern about his Second, I was concerned that Mr. swers to the final certification exam handling of an issue that arose during Garcia’s answers to written questions and that some of the test questions the Committee on Governmental Af- were misleading, whether or not he in- were ‘‘inane’’ or simply ‘‘gave away’’ fairs’ consideration of his nomination. tended them to be, and I am even more the correct response. GAO has reported Specifically, I would like to describe disturbed that after I challenged Mr. that TSA has not yet fully developed my concerns about the way Mr. Garcia Garcia’s responses, he and his advisers or deployed recurrent or supervisory responded to questions from the com- passed up a number of opportunities to training programs to ensure that mittee related to his bureau’s partici- clarify his responses. I will describe the screeners are effectively trained and pation in a search for a plane belonging back and forth in greater detail below, supervised. to a Texas state legislator. My con- but in short, Mr. Garcia stated in writ- Moreover, despite considerable atten- cerns about the nominees’s answers oc- ten answers to the committee that he tion to the safety of air passengers and curred in the context of problems we declined to answer questions about the their baggage, TSA has not developed a have been having getting clear and search for the Texas legislator because reliable system to screen commercial comprehensive answers from some the IG’s office had directed him not to, cargo loaded onto the very same other nominees for department posi- even though neither he nor his advisers planes. This cargo is still not being tions, and from receiving satisfactory had even contacted the IG’s office screened for explosives and TSA cur- answers to inquiries related to our about my questions until he had twice rently is relying on the airlines to im- oversight responsibilities. I hope that declined to answer them. Mr. Garcia plement a ‘‘known shipper’’ program as by calling attention to these concerns, continued to maintain that the IG’s of- the primary method of ensuring the se- I can encourage the Department of fice directed him not to answer my curity of this cargo, despite the numer- Homeland Security, DHS to work with questions, even after I reported to him ous vulnerabilities GAO and the De- its oversight committees in a more that the IG’s office did not believe it

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Why do you believe it would be inappro- his regret for these events, explaining travention of Department policy, what steps priate to comment? that he did not intend to mislead the will be taken to ensure that similar mis- b. Did the Office of Inspector General ask committee, which is why I will not takes will not happen again?’’ you not to comment? On May 30, 2003, Mr. Garcia responded c. Will you refuse to provide Congress with stand in the way of his nomination. information on any matter being inves- But I once again am forced to observe that because BICE had referred the un- tigated by an inspector general? If your will- that this exchange was nowhere near derlying issues to the Office of the In- ingness to provide information to Congress the frank and honest effort at pro- spector General, OIG, ‘‘it would be in- would depend on the circumstances, please viding requested information that Con- appropriate to offer comment on the specify in what circumstances you would gress has a right to expect from agency questions above.’’ He attached to his refuse to provide information. answer a press release BICE had earlier d. As Acting Assistant Secretary for BICE officials. It instead appears to have at the time the incident occurred, do you been an effort at finding any excuse for issued, offering comment on the mat- ter, including conclusions that BICE have any knowledge of the circumstances of declining to answer questions and then, your bureau’s involvement, either direct or when it became apparent that the ex- had acted appropriately in the inci- second-hand? Did you take any steps to learn cuse could not stand, seeking to find dent. Concerned by the suggestion that about the bureau’s role? Were you involved any way possible to avoid correcting the existence of an IG investigation in deciding how the Bureau should respond the mistaken assertion. As mentioned, serves as an absolute bar to an Execu- to the incident, and to the news reports that Mr. Garcia has subsequently expressed tive Branch official providing any in- described the incident?’’ his regret for how he answered these formation to Congress, my staff on On Friday, June 13, 2003, Mr. Garcia questions, and has pledged to better co- June 2, 2003, again asked Mr. Garcia sent his responses to the post-hearing operate with the Committee in the fu- about the issue at the bipartisan inter- questions. Mr. Garcia stated that he ture. I am hopeful that both he and the view Committee staff routinely con- had ‘‘received direction from the In- department will live up to that pledge. duct in the course of considering nomi- spector General’s Office to refer all in- To provide more detail: when the nations. Mr. Garcia again declined to quiries regarding this matter to that Committee on Governmental Affairs answer the questions. At the staff office.’’ He also stated that ‘‘the IG’s received the nomination of Michael interview Mr. Garcia was informed office directed that it would not be ap- Garcia on March 26, 2003, he was al- that Congress routinely seeks informa- propriate to comment on this issue and ready serving as Acting Assistant Sec- tion and testimony about matters that all inquiries be directed to that of- retary for BICE. He was leading the under criminal investigation, and is fice,’’ and ‘‘in this case I was directed Bureau when, on May 12, 2003, it as- routinely provided the information. to refer all inquiries to the Inspector sisted in a search for the plane belong- Apparently in response to the con- General’s Office.’’ Mr. Garcia’s answers ing to a member of the Texas legisla- cerns raised at the staff interview, on did not specify who had directed him ture; the search had been initiated by June 2 the Chief Legal Counselor to the not to answer, nor did they describe leaders from the opposing party, as Department of Homeland Security, the nature of the communications with part of a highly political and partisan Lucy Clark, contacted the Counsel to the IG’s office. In response to the ques- intrastate redistricting feud. At the the department’s Acting Inspector tion about whether he would refuse to time of these events it struck me as in- General, Richard Reback. According to provide Congress with information on appropriate that homeland security re- Mr. Reback, Ms. Clark told him that any matter being investigated by an sources were diverted for this purpose, Mr. Garcia would be appearing for his inspector general, Mr. Garcia re- especially as it set a disturbing prece- confirmation hearing and asked how he sponded ‘‘(g)enerally, I would defer to dent of misusing the department’s pow- should respond if questioned about the the IG’s office for direction on inquir- ers and authority to pursue American Texas matter. At Ms. Clark’s request, ies relating to any matter actively citizens who had broken no laws. So, as on June 4, Mr. Reback sent by e-mail a being investigated by that office.’’ He part of the committee’s consideration hypothetical question and proposed an- declined to answer whether he had any of Mr. Garcia’s nomination, I sub- swer, in which Reback suggested that knowledge of the circumstances of his mitted a series of written questions Mr. Garcia, if asked ‘‘what actions are Bureau’s involvement in the incident, about the incident, in my capacity as you taking on the issue of diversion of and what actions he took in its after- ranking member of the Committee on Department of Homeland Security re- math. Governmental Affairs. sources to search for Texas State legis- Aware of no law, custom or precedent Over the course of several weeks, Mr. lators?’’, could respond, ‘‘The OIG has that would allow an IG to direct an Ex- Garcia provided answers that were un- asked that any questions relating to ecutive Branch official to decline to responsive, unsatisfactory, and incon- this matter be directed to them.’’ Mr. answer Congressional information re- sistent. Mr. Garcia’s legal advisers at Reback later made clear in a letter to quests, I had my staff contact the De- the Department of Homeland Security me that he was not aware at the time partment of DHS Office of Inspector appear to have compounded the prob- ‘‘that specific questions were pending General to learn more about the IG’s lem by looking for ways to avoid the or had been posed.’’ Ms. Clark did not views of this issue. On the afternoon of questions rather than clear up mis- tell Mr. Reback that Mr. Garcia had al- June 13, Lisa Redman, the assistant In- understandings that became increas- ready declined to answer questions on spector General responsible for the in- ingly apparent. two occasions, or that he had been in- vestigation into the Texas incident, de- In written questions sent on May 16, formed by Committee staff that his an- nied to my staff that anyone from the 2003, before Mr. Garcia’s committee swer was unsatisfactory. Mr. Reback IG’s office had directed Mr. Garcia not hearing, I asked the following ques- later explained that he was not direct- to comment on the issue. She also in- tions: ing Mr. Garcia not to answer inquiries formed Committee staff that the IG’s On May 15, 2003, the Bureau acknowledged from Congress. Rather, it was his hope office had no policy that would have that its Air and Marine Interdiction Coordi- that a referral to his Office could be precluded him from answering ques- nation Center, AMICC, had earlier that week the beginning of a dialogue with Con- tions about his role in the incident, or participated in the search for the airplane of gress, not the end of the dialogue. from giving answers based on informa- a Texas legislator. After Mr. Garcia’s nomination hear- tion provided by personnel at BICE. 1. What action was requested of the ing, on June 5, 2003, I remained con- Concerned by this discrepancy, on AMICC, and by whom? 2. What action, if any, was actually taken cerned by the suggestion that an IG in- the evening of June 13, I sent Mr. Gar- by the AMICC? Which federal officials were vestigation could immunize Executive cia another set of post-hearing ques- involved in directing that action be taken? Branch officials from Congressional in- tions, seeking clarification regarding

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00191 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16072 CONGRESSIONAL RECORD — SENATE November 25, 2003 the apparently contradictory informa- in fact been directed not to answer. For It appears to me that Mr. Garcia and tion received from the IG’s office. My the first time, he referred the com- his legal advisers at DHS provided an- questions also informed Mr. Garcia mittee to the e-mail message Mr. swers to the Committee that were mis- that both the Congressional Research Reback sent to Lucy Clark on June 4, leading factually and misstated the Service and the Senate Legal Counsel 2003, but he made no mention of Ms. legal reasons a nominee could refuse to had confirmed that an ongoing IG’s in- Redman’s different interpretation of answer questions. For example, Mr. vestigation did not provide a legal that communication, or of the IG’s au- Garcia did not have any communica- basis for someone to refuse to provide thority. Despite Ms. Redman’s state- tions with any official from the IG’s of- information to Congress. ments to his adviser, Mr. Garcia did fice until June 4, 2003, after he had al- As we later learned from Ms. Redman not correct his earlier assertions that ready, on two occasions, declined to in a letter responding to my inquiries, the Inspector General has the author- answer questions about the Texas mat- on the morning of June 16, while Mr. ity to instruct someone not to cooper- ter. Nevertheless, his answers to my Garcia and his staff were preparing an- ate with Congress; he cited his legal post-hearing questions stated that he swers to my questions, Ms. Redman re- advisers at DHS and the IG’s office as had declined to answer the questions ceived a telephone call from Mark Wal- the sources of his conclusion. because ‘‘the IG’s office directed that it lace, who was then Mr. Garcia’s prin- At the committee mark-up on the would not be appropriate to comment cipal legal adviser at BICE. According morning of June 17, I expressed my on this issue and that all inquiries be to Ms. Redman, Mr. Wallace ‘‘was very concerns about Mr. Garcia’s refusal to directed to that office.’’ Whatever Mr. agitated and stated that the OIG had answer questions about the Texas inci- Garcia’s intention, that answer was not provided answers [to the Committee] dent, and I questioned whether his reli- a factually accurate way of explaining inconsistent to those he provided on ance on supposed instructions from the answers given before he or his advisers Mr. Garcia’s behalf.’’ Ms. Redman in- IG’s office were factually accurate or spoke with the IG’s office about the formed Mr. Wallace that no one from legally sound. I entered into an agree- issue. the IG’s office had ‘‘directed’’ Mr. Gar- ment with Chairman COLLINS that I Furthermore, it is now clear that Mr. cia not to answer questions from Con- would not object to the committee re- Garcia never was ‘‘directed’’ not to an- gress, that the IG’s office had never porting Mr. Garcia’s nomination, but swer the questions by the Office of In- been told about Mr. Garcia’s written that Mr. Garcia’s nomination would spector General—an assertion he re- responses to my questions, and that not go to the Senate floor until my peatedly made in his written responses Mr. Wallace should have cleared Mr. questions and concerns had been satis- to my questions. Regardless of whether Garcia’s answers with the IG’s office factorily resolved. Mr. Reback’s June 4 e-mail could have I subsequently sent letters seeking before submitting them. She also been interpreted as something stronger additional information from Mr. pointed out that the IG’s office cannot than intended, Mr. Garcia’s legal ad- Reback, Ms. Redman, and Mr. Garcia. I direct Mr. Garcia to do anything. Ac- viser, Mr. Wallace, knew prior to Mr. have already described the information cording to Ms. Redman, Mr. Wallace Garcia’s submission of his final set of I received from Mr. Reback and Ms. ‘‘became quite angry and demanded answers that the IG’s office was not di- Redman. Mr. Garcia, for his part, that we make our responses consistent maintained that all of his answers had recting him not to answer questions with his,’’ and he ‘‘said it was the OIG’s been accurate, and that he had reason- and had never intended to do so. Never- fault that Mr. Garcia was now in this ably interpreted Mr. Reback’s e-mail theless, Mr. Garcia submitted written situation because we were not con- as equivalent to being directed by the answers on June 16 in which he contin- sistent in our responses.’’ Ms. Redman IG’s office not to respond. He concluded ued to assert that the IG’s office had refused to change her story. that at all times he was ‘‘guided by a directed him not to answer the ques- According to correspondence I re- sincere desire not to in any way inter- tions, referring to Mr. Reback’s e-mail. ceived from Mr. Reback, Mr. Wallace fere with an ongoing criminal inves- Nothing in the answers gave any indi- also contacted Reback on June 16, in tigation’’: ‘‘At no time did I intend to cation that the IG’s office had explic- an e-mail ‘‘in which [Wallace] stated evade answers or to in any way chal- itly rejected this interpretation of Mr. that the OIG had provided inconsistent lenge the authority of Congress to in- Reback’s e-mail. guidance to Mr. Garcia on responding quire into such matters. I responded Mr. Garcia’s rationale for not an- to questions regarding the Texas mat- based on what I reasonably believed swering the questions raised important ter.’’ Mr. Reback said that he re- was the guidance from the OIG and institutional issues. As a general mat- sponded in an e-mail to Mr. Wallace, in counsel.’’ ter, I find it unacceptable for agency which he said he explained that ‘‘I had Although I am troubled by how Mr. officials to argue that the pendency of been asked for guidance on what Mr. Garcia and his advisers at the Depart- an IG investigation categorically pre- Garcia could say if asked a question ment dealt with this issue, I have nev- cludes them from responding to con- [on] the Texas matter at his confirma- ertheless decided not to oppose this gressional information requests. Con- tion hearing, and that I had provided otherwise qualified nominee. Still, I gress often seeks information—and guidance reflected in my June 4th e- felt that the issues raised during his sometimes even conducts parallel in- mail to Ms. Clark.’’ Mr. Reback also nomination process were important vestigations—on matters also under re- told Mr. Wallace that he was ‘‘unaware enough that they deserved to be fully view by IG offices. Were the pendency that Mr. Garcia ever had received any aired. of IG investigations a basis for an written questions on the matter and One of the principal functions of the agency official or employee to decline had not seen or cleared on [sic] any of Committee on Governmental Affairs, to respond to Congressional inquiries, his written responses.’’ Late in the like all Senate committees, is to en- numerous Congressional inquiries con- evening of June 16, Mr. Reback was sure that qualified, capable and respon- ducted by the Governmental Affairs contacted by Ms. Clark and another ad- sible people are ultimately appointed Committee and other Committees viser at BICE, Tim Haugh, who pro- to the highest positions in our govern- would be inappropriately stymied. vided him a copy of draft responses to ment, and to conduct oversight over The notion that an Inspector General the questions I sent Mr. Garcia on June the departments and agencies within could ‘‘direct’’ a Department official 13th. Mr. Reback did not review or its jurisdiction. Through both the con- not to cooperate with Congress was comment on all of the draft responses, firmation and oversight processes, we itself troubling. Officials at the Inspec- but did request that ‘‘with respect to ensure ourselves and the American peo- tor General’s office understood that questions that implicated OIG state- ple that our government is functioning they did not have the authority to ‘‘di- ments, Mr. Garcia refer to my June 4th as it should be. As part of these proc- rect’’ Department officials not to an- e-mail in his responses.’’ esses, we regularly engage in dialogues swer questions, but neither Mr. Garcia At 11:00 p.m. on June 16, less than 12 with nominees, including through writ- nor his legal advisers consulted with IG hours before the committee met to ten questions; the integrity of our officials on their choice of words until consider his nomination, Mr. Garcia process requires that nominees fully after they had already sent the Com- provided additional responses in which and forthrightly answer the questions mittee Mr. Garcia’s answers. I was es- he continued to maintain that he had asked. pecially disturbed, in this context, to

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00192 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16073 learn that Mr. Garcia’s legal adviser, the content of the conversation or commu- (3) Please indicate specifically whether any Mark Wallace, apparently berated the nication. communications you had with persons out- Assistant Inspector General and at- Response: No. side the OIG about Mr. Garcia’s responses oc- (2) Did you have communications with any curred before June 4, 2003. tempted to get her to change her DHS official or employees seeking informa- Response: Please see answer above. version of events to make it ‘‘con- tion on Mr. Garcia’s behalf on how to re- (4) Please indicate whether you are aware sistent’’ with the answers he had pre- spond to Congressional information requests of any other person employed by the OIG dis- viously prepared. If true, this is highly about the Texas matter or otherwise in- cussing this matter with DHS personnel act- improper behavior for a government at- volved in the drafting of Mr. Garcia’s re- ing on Mr. Garcia’s behalf. If you are aware torney, and might itself have been wor- sponses? If so, please state the person with of any such discussions, please indicate who whom you had each communication (includ- had the discussion, who initiated it, when it thy of an investigation. ing his or her title), who initiated the com- Subsequent to the Committee’s re- occurred (and specifically whether it was be- munication, when the communication oc- fore June 4, 2003) and, to the extent you porting of Mr. Garcia’s nomination, my curred, and describe the content of the com- know, the contents of the discussion. staff met with him to discuss these munication. Response: I am unaware of any other per- issues and my concerns about these Response: Yes. I had telephone conversa- son employed by the OIG having such discus- tions with Lucy Clark, DHS Chief Legal events as well as with other examples sions other than my conversations on June Counselor, on the afternoon of June 2, on 2nd and possibly June 3rd as discussed above. of DHS nominees providing less than June 4, and possibly on June 3, 2003. These adequate answers to questions posed (5) Mr. Garcia attached your e-mail to conversations were initiated by Ms. Clark Lucy Clark to substantiate his assertion during the nomination process. In light and each conversation was very brief—I that the IG’s office ‘‘directed’’ him not to re- would estimate the total time for all my of Mr. Garcia’s statement in that meet- spond to the questions sent to him. ing that he did not intend to mislead telephone conversations with Ms. Clark on (a) Please provide in as much detail as you the Committee and now understood the these days was approximately five to ten can recall the contents of any communica- minutes. need to better cooperate with Congress, tions you had with Ms. Clark that led to you Ms. Clark told me that Mr. Garcia would drafting the e-mail provided to the Com- I am prepared to move forward with his be appearing for his confirmation hearing nomination. I could not do so, however, and asked me how he should respond if ques- mittee. Who initiated the conversation? without leaving a complete record of tioned about the Texas matter. I replied that What specifically did Ms. Clark tell you my concern over these events. Mr. Garcia should state that the matter was about the questions sent to Mr. Garcia? What did she ask you to do? Mr President, I thank my colleague, under investigation by the OIG and ques- tions should be referred to the OIG. I told Response: Please see my response to ques- Chairman COLLINS, for working with tion 2 above. As stated, I did not know that me towards a satisfactory resolution of Ms. Clark that since the OIG had an open criminal investigation, we did not want peo- Mr. Garcia had received any written ques- this issue. I am glad that we have had ple talking about the case. Ms. Clark subse- tions nor that he had appeared for a Com- the opportunity to share with Mr. Gar- quently asked me to put my comments in mittee staff interview on June 2, 2003. cia and with other DHS officials our writing and I sent her the e-mail on June 4th (b) Was anyone other than Ms. Clark in- concerns about how this nomination that has been provided to you. Ms. Redman, volved in these communications? If so, state who was involved (including the person’s was handled. I hope that in the future Assistant Inspector General for Investiga- tions, reviewed and concurred with my e- title) and the nature and content of their in- the Department of Homeland Security volvement. will endeavor to work constructively mail before I sent it. Mr. Richard Skinner, Deputy Inspector General, reviewed and con- Response: Please see my response to ques- with all senators to avoid misunder- curred with my e-mail after I had sent it. tions above. standings of the type we experienced in On June 16th, I received an e-mail from (c) Did you tell Ms. Clark that you were this case, and to take seriously its obli- Mark Wallace, Principal Legal Adviser to ‘‘directing’’ Mr. Garcia to refer all inquiries gations to provide Congress with the Mr. Garcia, in which he stated that the OIG regarding the matter to your office? had provided inconsistent guidance to Mr. Response: I did not use the terms ‘‘direct’’ accurate, timely and complete infor- or ‘‘directing.’’ However, in my conversa- mation it needs. Garcia on responding to questions regarding the Texas matter. Mr. Wallace attached a tions with Ms. Clark, I believe it was clear In the interest of fairness to all par- copy of eight questions from Senator Lieber- that the OIG did not ant DHS personnel dis- ties, I ask unanimous consent that the man to Mr. Garcia. I responded to Mr. Wal- cussing a matter that was under criminal in- text of letters from Mr. Reback, Ms. lace via e-mail in which I stated that I had vestigation by the OIG without first coordi- Redman, and Mr. Garcia, be printed in been asked for guidance on what Mr. Garcia nating with the OIG. the RECORD following my remarks. could say if asked a question about the (d) Did you believe your e-mail was ’’direct- Space limitations prevent me from in- Texas matter at his confirmation hearing, ing’’ Mr. Garcia to refer all inquiries regard- and that I had provided guidance reflected in ing the matter to your office? cluding the full text of the pre-hearing Response: Please see my response above. and post-hearing questions asked of my June 4th e-mail to Ms. Clark. I further stated that I was unaware that Mr. Garcia (e) The question attached to your e-mail Mr. Garcia, and his answers, but those ever had received any written questions on does not use language encompassing all ques- may be found in the Committee’s hear- the matter and had not seen or cleared on tions related to the Texas matter, but rather ing record. any of his written responses. I also stated asks only what action Mr. Garcia is cur- There being no objection, the mate- that I heard nothing more about Mr. Gar- rently taking on it. The bulk of my ques- rial was ordered to be printed in the cia’s response to questions on the Texas mat- tions, in contrast, asked about past events, not Mr. Garcia’s current actions. Did you RECORD, as follows: ter until the afternoon of June 13th, when the Assistant Inspector General for Inves- tell Ms. Clark that Mr. Garcia should refer DEPARTMENT OF HOMELAND SECU- tigations, Ms. Redman, had received oral all Congressional questions, including seek- RITY, OFFICE OF INSPECTOR GEN- questions from some of the Committee’s mi- ing Mr. Garcia’s knowledge about underlying ERAL, nority staff regarding Mr. Garcia’s re- events, to the IG’s office. Washington, DC, June 26, 2003. sponses. Finally, I stated that the OIG inves- Response: My conversations with Ms. Hon. JOSEPH I. LIEBERMAN, tigation was closed, there was no criminal Clark did not involve that level of speci- Senate Committee on Governmental Affairs, enforcement action and that Mr. Garcia ficity. I was unaware of your prior questions Dirsken Senate Office Building, Wash- could answer any questions about the Texas to Mr. Garcia at the time I had my conversa- ington, DC. matter. I heard nothing further from Mr. tions on June 2nd-June 4th. DEAR SENATOR LIEBERMAN: Thank you for Wallace. (f) Did you believe the attachment to your your letter to me dated June 23, 2003, in Late that evening (June 16th), I had con- e-mail suggested that Mr. Garcia should not which you asked me to clarify a matter be- versations with Ms. Clark and with Mr. Tim answer the questions reprinted at the bot- fore the Senate Governmental Affairs Com- Haugh, Director of Congressional Relations, tom of page 1 of this letter? mittee, specifically the Committee’s consid- Bureau of Immigration and Customs En- Response: At the time I sent the e-mail, I eration of the nomination of Michael Garcia forcement, about questions Mr. Garcia had was not aware that specific questions were to serve as Assistant Secretary in the De- received from the Senate Committee on Gov- pending or had been posed. My advice was partment of Homeland Security. The fol- ernmental Affairs and which Mr. Garcia in- inthe context of a potential inquiry along lowing responses to your questions are tended to respond to that day. My conversa- the lines stated in my June 4th e-mail. below: tions were primarily with Mr. Haugh, who (g) Did Ms. Clark (or any other person in- (1) Did you have any communications with provided me a copy of draft responses to volved in these communications with you) Mr. Garcia about how to respond to ques- those questions. I did not review or comment ask you to provide a different answer than tions regarding the Texas matter? If so, on all of the responses. I did however, re- the one you gave to her? If so, that was her please state when each communication oc- quest that with respect to questions that im- or their proposal, and why did you not agree curred, who initiated the communication plicated OIG statements, Mr. Garcia refer to to it? Please describe in full the discussion and who else was present, and please describe my June 4th e-mail in his responses. on this matter.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00193 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16074 CONGRESSIONAL RECORD — SENATE November 25, 2003 Response: At no time during our conversa- Response: Legal authority supports the ter? If so, please describe when that hap- tions on June 2nd–4th did Ms. Clark or any- general position that an OIG can withhold pened, to whom you gave that direction, who one else ask me to provide a different answer certain confidential information from Con- initiated the communication, and the details than the one I provided. gress during the course of an open criminal of your direction. (6) Did you ever direct Mr. Garcia or any- investigation. See 13 Op. Off. Legal Counsel Response: No direction was provided by me one inquiring on his behalf not to answer 77 (1989). In my experience, I have found Con- to Mr. Garcia or anyone acting on his behalf questions from Congress on the Texas mat- gressional staff members sensitive to these on any matter. ter? (If your previous answers dispose of this issues and willing to accommodate OIG con- (6) Are you aware of any OIG personnel di- and/or any of the following questions in their cerns. recting Mr. Garcia or anyone inquiring on entirety, feel free to so indicate). Sincerely, his behalf not to answer questions from Con- Response: No. Please see my responses to RICHARD N. REBACK, gress on the Texas matter? If so, please de- questions above. Counsel to the Acting Inspector General. scribe when that happened, who gave the di- (7) Are you aware of any other OIG per- rection and to whom that direction was sonnel directing Mr. Garcia or anyone in- DEPARTMENT OF HOMELAND SECU- given, who initiated the communication, and quiring on his behalf not to a answer ques- RITY, OFFICE OF INSPECTOR GEN- the details of the direction. tions from Congress on the Texas matter? If Response: I am not aware of any OIG con- so, please identify the individuals involved, ERAL, Washington, DC, June 26, 2003. tact with Mr. Garcia or anyone on his behalf when they issued the direction, to whom directing him as to what to say or not to Hon. JOSEPH I. LIEBERMAN, they gave it, and the content of any commu- say. Ranking Minority Member, Senate Office Build- nications related to such direction. (7) Do you believe you or anyone in the Response: No. Please see my responses to ing, U.S. Senate, Washington, DC. IG’s office had the authority to ‘‘direct’’ Mr. DEAR SENATOR LIEBERMAN: Thank you for questions above. Garcia not to answer these questions? If so, your letter to me dated June 23, 2003, in (8) Do you believe you or anyone in the please state the basis of that authority. IG’s office had the authority to ‘‘direct’’ Mr. which you asked me to clarify a matter be- Response: No, I do not believe the OIG has Garcia not to answer these questions? If so, fore the Senate Governmental Affairs Com- the authority to ‘‘direct’’ Mr. Garcia or any- please state the basis of that authority. mittee, specifically the Committee’s consid- one else in DHS to answer or not answer Response: No. eration of the nomination of Michael Garcia questions from Congress. (9) Did you ever tell Mr. Garcia or anyone to serve as Assistant Secretary in the De- (8) Did you ever tell Mr. Garcia or anyone inquiring on his behalf that it would be ‘‘in- partment of Homeland Security. The fol- inquiring on his behalf that it would be ‘‘in- appropriate to offer comment’’ in response to lowing responses to your questions are pro- appropriate to offer comment’’ in response to Congressional questions regarding BICE’s in- vided below: Congressional questions regarding BICE’s in- volvement in the Texas matter? If so, please (1) Did you have any communications with volvement in the Texas matter? If so, please identify the person to whom you made this Mr. Garcia about how to respond to ques- identify the person to whom you made this statement, when you made it and the basis tions regarding the Texas matter? If so, statement, when you made it and the basis for your making that statement. please state when each communication oc- for your making that statement. Response: I do not remember if I used curred, who initiated it and who else was Response: No, I never made that statement those exact words. However, it would have present, and please describe the content of to Mr. Garcia or anyone on his behalf. been reasonable for Ms. Clark to infer that I the communication. (9) Had you seen or discussed Mr. Garcia’s believed it would be prudent for Mr. Garcia Response: No. answers to the questions sent to him by the to check with the OIG before offering com- (2) Did you have communications with any Committee prior to receiving this letter? If ment about the OIG’s investigation of BICE’s DHS official or employee seeking informa- so, in what context did you see them? Who involvement in the Texas matter. tion on Mr. Garcia’s behalf on how to re- showed them to you and when? Were you At the time, the OIG had an open criminal spond to Congressional information requests shown any of Mr. Garcia’s written responses investigation. Generally, we seek to avoid about the Texas matter or otherwise in- before he sent them to the Committee? Re- public discussion of open criminal matters to volved in the drafting of Mr. Garcia’s re- gardless of when you saw them, did you be- avoid jeopardizing the success of a potential sponses? If so, please identify the person lieve the answers to be accurate in their rep- future prosecution, impeding our ability to with whom you had each communication (in- resentation of the IG office’s statements and gather all relevant information, affecting cluding his or her title), state who initiated views? If not, did you communicate that be- the impartiality and perceived impartiality the communication, indicate when the com- lief to anyone in DHS? If so, to whom? When? of our work, and other such concerns. We munication occurred, and describe the con- What were the contents of that conversa- also try to discourage speculation about the tent of the communication. tion? outcome of a pending investigation. Response: No, not until June 16th and that Response: the first time I saw any ques- (10) Had you seen Mr. Garcia’s answers to tions for Mr. Garcia was on the morning of the questions sent to him by the Committee conversation was with Mark Wallace after he June 16th. Those questions were e-mailed to prior to receiving this letter? If so, in what had sent responses to the Committee on Mr. context did you see them? Who showed them Garcia’s behalf. me by Mark Wallace, who identified himself to you and when? Were you shown any of Mr. (3) Please indicate specifically whether any as Mr. Garcia’s Principal Legal Advisor. He Garcia’s written responses before he sent communications you had with persons out- sought assistance in preparing responses to them to the Committee? Regardless of when side the OIG about Mr. Garcia’s responses oc- those questions on Mr. Garcia’s behalf and you saw them, did you believe the answers to curred before June 4, 2003. asked for ‘‘urgent’’ help at 9:41 am. I did not be accurate in their representation of the IG Response: I had no communications out- see any responses he drafted to those ques- office’s statements and views? If not, did you side the OIG prior to June 4, 2003, regarding tions until the morning of June 17th. A faxed communicate that belief to anyone in DHS? Mr. Garcia’s responses. copy of his responses was under my door (4) Please indicate whether you are aware If so, to whom? When? What were the con- when I arrived at work. I e-mailed Mr. of any other person employed by the OIG dis- tents of that conversation? Reback at 8:32 am on June 17th and advised Response: I saw a draft of Mr. Garcia’s cussing this matter with Mr. Garcia or with him that the responses prepared by Mr. Wal- June 16th answers on the evening of June DHS personnel acting on Mr. Garcia’s behalf. lace to Questions 2 and 3 were not accurate 16th; I did not see the final document until If you are aware of any such discussions, as they purported to represent a conversa- after it had been sent to the Committee. I please indicate who had the discussion, who tion Wallace and I had the morning of June believe the responses received by the Com- initiated it, when it occurred (and specifi- 16th. I was subsequently told by Mr. Reback mittee are accurate in their representation cally whether it was before June 4, 2003) and, that those responses did not get sent to the of OIG statements, namely, I sent the June 4, to the extent you know, the contents of the committee; instead a new (second) set of re- 2003, email to Ms. Clark. I did not offer any discussion. sponses was drafted by the night before and comment on the responses in any other re- Response: I am aware that OIG Counsel those responses were the ones sent to you by spect. I did not see the written responses to Richard Reback was contacted by DHS Gen- Lucy Clark. The set of responses you re- any of the other sets of questions until pro- eral Counsel Lucy Clark on June 4th or per- ceived was accurate. vided them by Committee’s minority staff in haps June 3rd; during which contact Ms. (10) You indicated to my staff that on Fri- the course of responding to these questions. Clark sought advice from Counsel Reback as day, June 13, you had a conversation with Examining the responses after the fact, I to what Mr. Garcia should say if asked about the individual who drafted Mr. Garcia’s re- believe that the scope of the OIG guidance the OIG Texas investigation. Mr. Reback ad- sponses to the questions regarding the Texas may have been misunderstood. The OIG had vised me that Ms. Clark initiated contact matter and that you told him that the IG’s not intended, and did not direct that no Con- with him and he provided an email to her in office had not ‘‘directed’’ Mr. Garcia not to gressional requests be answered. Instead, we response as to suggested language Mr. Garcia respond to the questions. To the extent that asked that questions be referred to the OIG might use. That is the same email previously you have not already done so in response to because the OIG had an open criminal inves- provided to your staff. Mr. Reback showed the questions above, please answer the fol- tigation. We did not intend that to be the me his proposed email before he sent it and lowing questions with respect to that con- end of the dialogue with the Congress. I concurred with its contents. versation: (11) Please provide any additional informa- (5) Did you ever direct Mr. Garcia or any- (a) With whom did you have this conversa- tion you believe might be helpful to clarify one inquiring on his behalf not to answer tion (please identify the individual’s name the Committee’s record on this matter. questions from Congress on the Texas mat- and title)?

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00194 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16075 Response: I did say in a meeting with your that he had submitted questions that we had inappropriate to offer comment on the ques- staff on June 19th that I had such a con- not seen. tions above,’’ did you believe you had been versation on Friday, June 13th. However, I (g) Did you tell the individual with whom ‘‘directed’’ by the IG’s office not to answer was mistaken and realized that mistake in you spoke that the IG’s office had not ‘‘di- the questions? If so, what was the basis for reviewing my e-mails and telephone notes. rected’’ Mr. Garcia not to respond to ques- that belief? Who told you about such direc- On the afternoon and early evening of Fri- tions about the Texas matter? tion and when? day, June 13th I had several telephone con- Response: Yes, I was very adamant on that Response: I think it would be helpful in versations with Kevin Landy of your staff point and that was why he called me on June clarifying the record to set forth the re- from whom I learned for the first time that 16th. He said we needed to be consistent with sponses made to your inquiries regarding the questions and answers had been provided to responses he had already submitted and that Air and Marine Interdiction Coordination the Committee by Mr. Garcia. The conversa- we had ‘‘directed’’ Mr. Garcia not to answer Center (‘‘AMICC’’) and in doing this to detail tion to which you refer actually occurred on questions. I told Wallace that was flat-out the substance and chronology of those an- Monday, June 16th between 9:41 and 9:54 am incorrect and no one in the OIG had had any swers and the basis for the position taken. between myself and Mark Wallace, Principal communication with Mr. Garcia, let alone On May 30, 2003, I responded to the first set Legal Advisor to Mr. Garcia. ‘‘directed’’ him on any matter, nor did we of questions regarding events at AMICC by (b) Because Mr. Garcia sent answers to the know until the 13th (from Kevin Landy to stating that the matter had been referred to questions on that date (DHS staff emailed me) that any questions had been submitted the Inspector General and that ‘‘[t]herefore them to Committee staff at 12:29 p.m.), in the first place. it would be inappropriate to offer comment please identify to the most precise extent (h) What did you tell the individual with on the questions above.’’ At this time I based you can recall when in the day that con- whom you spoke about whether the IG’s of- my statement on the fact that this was a po- versation occurred. fice had authority to give such a direction? tential criminal investigation and on my ex- Response: as indicated above, I misspoke Response: I told Wallace that he well knew perience as a Federal prosecutor. In sum, I and I did not have any conversations with from his time in the OIG community (he pre- was motivated by the belief that it would be Mr. Wallace until Monday, June 16th, not viously worked at FEMA) that an OIG can- inappropriate to offer my comments on this Friday, June 13th. My June 13th conversa- not direct anyone (other than OIG employ- ongoing IG matter. I was also aware that be- fore the House Select Homeland Security tions were with Kevin Landy, not Mark Wal- ees) to do anything. Committee on May 20, 2003, Secretary Ridge lace. (i) What did that individual ask you to do had stated, ‘‘we thought it was very appro- (c) Who initiated the conversation? or say? priate, based on the multiple inquiries that Response: the conversation on June 16th Response: Wallace demanded that we assist we received from members of Congress, in- was initiated by Mark Wallace. He called the him in drafting responses to new questions cluding yours, that we deploy the means main number, asked for Mr. Reback, then he had received because it was our fault he with which Congress has given us. And that’s Mr. Skinner, and finally me after learning had gotten the questions. He said it was the an inspector general within our depart- the other two were not available. OIG’s fault that Mr. Garcia was now in this ment.’’ He went on to say ‘‘. . . it’s not ap- (d) Who else was involved in it? situation because we were not consistent in propriate to be passing that information out Response: No one else was involved in this our responses. right now’’ when referring to a request to re- conversation. (j) What did you say in response? (e) Please describe in the greatest detail lease the audiotapes. My responses were re- Response: I told Wallace that if we had possible, the contents of the conversation. viewed by the Department of Homeland Se- seen his draft responses before he sent them Response: Mr. Wallace was very agitated curity prior to being sent to the Committee. then we could have prevented him from and stated that the OIG had provided an- On June 2, 2003, I was interviewed by staff using such a poor choice of language. Prior swers inconsistent to those he provided on members for the Committee. At that time, coordination would have resulted in con- Mr. Garcia’s behalf. I asked him to which Minority Counsel asked me about my May 30 sistent responses. questions he was referring and he said he answers to the AMICC questions, specifically (11) Please provide any additional informa- submitted a number of responses for the my basis for declining to answer with spe- tion you believe might be helpful to clarify record on Friday (June 13th) and also prior cifics. I explained that I based this response the Committee’s record on this matter. to Mr. Garcia’s hearing. I told him that he on my experience as a prosecutor and my Response: Mr. Wallace left DHS employ on should have coordinated those responses concern about commenting on an ongoing, June 18th. He advised Mr. Reback that he with the OIG because his responses, as de- potentially criminal, investigation. Minority had accepted a position as Deputy Campaign scribed to me by Kevin Landy on the 13th, Counsel disagreed with this analogy—my ex- Manager for the President’s re-election cam- were not accurate. He said his answers were perience as a Federal prosecutor—and stated paign. accurate, mine were not, and this inconsist- that the law regarding inquiries by Congress Sincerely, ency would only make me and the OIG ‘‘look made such comment possible. I replied that I ELIZABETH M. REDMAN, bad.’’ I told Wallace that no one had ‘‘di- was not aware of that legal authority. Assistant Inspector rected’’ Garcia or anyone else as to what to As a result of the statements by Minority General for Inves- say and I was not going to state otherwise. Counsel and the continuing interest in this tigations, Office of He said we had directed Garcia in the form of area of inquiry by the Committee as mani- Inspector General, Mr. Reback’s email to Lucy Clark and I dis- fested by his questions, I asked my Principal Department of puted that claim. He became quite angry and Legal Advisor to get clarification. I under- Homeland Security. demanded that we make our responses con- stood that he worked through Lucy Clark, sistent with his. I told him that he would not Chief Legal Counselor to DHS. I used this av- be in this situation if he had cleared his an- DEPARTMENT OF HOMELAND SECU- enue of communication with the IG— swers with the OIG prior to submission. I RITY, BUREAU OF IMMIGRATION AND through counsel—given that the most appro- further said it is not a good idea to speak for CUSTOMS ENFORCEMENT, priate medium for communicating with an the OIG; that is our job. He insisted that ‘‘di- Washington, DC, July 30, 2003. agency conducting an ongoing criminal in- rect’’ is the same thing as ‘‘ask’’ if it comes Hon. JOSEPH LIEBERMAN, vestigation into activities by a component of from the OIG and I told him that was not U.S. Senate, my agency is through legal counsel. correct and that it was not his right to inter- Washington, DC. A subsequent e-mail (previously provided pret what he thought the OIG meant. Fur- DEAR SENATOR LIEBERMAN: This letter is in to the Committee) authorized by the Office ther, I told Wallace that Mr. Reback’s email response to your letter of July 8, 2003, re- of Inspector General stated: ‘‘Attached is the was clear as to the position of the OIG. The questing further clarification regarding in- language Mr. Garcia can use if questioned on conversation ended as abruptly as it had formation previously provided in response to the Texas State legislators issue.’’ The at- begun. questions for the record involving the Air tachment read: ‘‘My office referred this mat- (f) Did the individual show you or describe and Marine Interdiction Coordination Cen- ter to the Department’s Office of Inspector to you my questions to Mr. Garcia or the an- ter. General (OIG) on the evening of May 15, 2003. swers he had given or proposed to give? If so, Please find enclosed responses to each of The OIG has asked that any questions relat- what did he say about them? your questions. Thank you for the oppor- ing to this matter be directed to them.’’ I re- Response: Mr. Wallace did not share any tunity to address your further questions re- ceived a copy of this e-mail prior to my con- prior responses with me. I saw responses for garding this matter. I would be happy to dis- firmation hearing on June 5, 2003. It is my the first time on the morning of June 17th, cuss this matter with you further if you feel understanding that the OIG counsel who pro- which were not correct and were not ulti- such a meeting would be helpful. vided this e-mail knew that this guidance mately submitted to the committee. Those Sincerely, was being sought in the context of my con- responses were to questions Wallace said he MICHAEL J. GARCIA, firmation hearing. I also received confirma- received from you sometime between the Acting Assistant Secretary. tion from Lucy Clark that it would be inap- 13th and the 16th. He did orally confirm dur- Enclosure. propriate to make any comments and I ing our conversation of the 16th that he was (1) On May 30, 2003, when you first re- should refer any questions on this matter being questioned by you, in writing, as to re- sponded to my questions that because BICE during the confirmation process to the OIG. sponses he submitted on Mr. Garcia’s behalf had referred the underlying issues to the Of- (See Letter from Lucy Clark to Senator JO- on the 13th, because I told him I understood fice of the Inspector General, ‘‘it would be SEPH LIEBERMAN, dated June 16, 2003). The

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00195 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16076 CONGRESSIONAL RECORD — SENATE November 25, 2003 AMICC matter was not raised at the June 5, did you first see it, who showed it to you, the OIG interpreted that guidance in any 2003 hearing. and how did you interpret the guidance it other way nor, given the plain language of On June 13, I submitted responses to your contained? that text, did I have any reason to do so. The post-hearing questions. At that time, in re- Response: I was aware that Lucy Clark was June 16 questions were directed to the basis sponse to the question regarding why I be- in contact with Richard Reback prior to my for my June 13 answers. I understand that lieved it inappropriate to comment, I re- June 5 confirmation hearing. Prior to my Ms. Redmon of the OIG did not express her sponded, ‘‘I received direction from the In- June 5 confirmation, I received a copy of this view regarding OIG policy until June 16—not spector General’s (IG’s) Office to refer all in- e-mail, I believe through my Principal Legal June 13 as she had erroneously claimed pre- quiries regarding this matter to that office.’’ Advisor. On advice of DHS counsel, I inter- viously. In response to the next question, ‘‘Did the preted this e-mail and the guidance that it (c) Why did your answers of June 16 refer Office of the Inspector General ask you not would be inappropriate to answer any ques- to the e-mail Lucy Clark received from Rich- to comment?’’ I responded, ‘‘As noted above, tions other than to refer the questioner to ard Reback, but fail to mention the con- the IG’s office directed that it would not be the OIG as directed in the e-mail. versation Mark Wallace had with Lisa appropriate to comment on this issue and (3) On what did you base your statement Redman? that all inquiries be directed to that office.’’ that you had been directed not to answer the Response: The e-mail from Reback ap- I based these answers on the e-mail from the questions? peared to state plainly the OIG position IG counsel referenced above which stated Response: I based my answer on the e-mail (‘‘The Office of Inspector General (OIG) has that the OIG ‘‘has asked that any question from the OIG counsel stating that I should asked that any questions relating to this relating to this matter be directed to them’’ respond to questions by stating ‘‘The OIG matter be directed to them.’’). At no time as well as the guidance from Lucy Clark, has asked that any questions relating to this prior to June 16 did I have any indication who I knew to be in contact with the IG’s of- matter be directed to them,’’ and on advice that Ms. Redmon interpreted that guidance fice, that it would be inappropriate to make of the Chief Legal Counselor that ‘‘in the to mean I was free to answer questions based any comments on this matter during the context of his confirmation hearing, the OIG upon my personal knowledge or what others confirmation process other than to refer responded [in response to a request from the had said to me. Nor was such leeway in any such questions to the OIG. These answers Office of General Counsel] that Mr. Garcia way apparent from the text of the e-mail. My were again cleared at the Department level. should refer all questions related to this Later that evening of June 13, 2003, I re- June 16 answers were in response to ques- matter to the OIG.’’ Moreover, I was advised ceived additional questions on this issue. tions aimed at tracking the basis for my ‘‘it would be inappropriate for him to make Those questions referenced a conversation June 13 responses (and as stated the basis for any comments on this matter during the between your staff and the OIG to the effect those was the Reback e-mail and guidance confirmation process other than to refer that referring questions to the OIG regarding from Lucy Clark). such questions to the OIG.’’ (See, Letter of an OIG criminal investigation was not con- Please indicate whether you are aware of Lucy Clark, Chief Legal Counsel to DHS, to sistent with the policy of the OIG and that any other person employed by the IG’s office Senator Joseph Lieberman, dated June 16, the Assistant IG conducting the investiga- discussing this matter with you or with DHS 2003.) tion had stated that no one at the IG’s office personnel acting on your behalf. If you are (4) Lisa Redman says she told Mark Wal- had ever had any communications with me. aware of any such discussions, please indi- lace on the morning of June 16 that he had You then posed several questions related to cate who had the discussion, who initiated misrepresented the position of the Office of this ‘‘contradiction.’’ it, when it occurred, and, to the extent you I responded to the first question related to the Inspector General in preparing your ear- know, the contents of the discussion. any communications with the IG’s office by lier answers. She refused his request to Response: No, only Lisa Redman and Rich- providing the e-mail discussed above and change her responses to make them con- ard Reback. outlined the method of communication I sistent with your answers. The answers you (6) What role did Mark Wallace play in used to obtain that guidance, namely submitted later that night did not reflect drafting each set of your written answers? through my Principal Legal Advisor and the this conversation, but instead held to the an- Who else contributed to the drafting of the DHS Chief Legal Counselor. While I never swers the IG’s office had rejected. The ques- answers relating to this matter? What ef- had any direct communication with the OIG tions I sent you on June 13 specifically noted forts did you make to independently confirm on this matter, the communication from the that the IG’s office had denied having the the accuracy of the answers you provided on OIG’s Chief Counsel clearly was intended as communications you earlier described. May 30, June 13, and June 16 with respect to guidance for ‘‘Mr. Garcia’’ in the confirma- (a) Were you ever aware of the conversa- the Texas matter? tion process. I also noted that my answers tion between Mark Wallace and Lisa Response: as stated, following standard were cleared through the Chief Legal Coun- Redman? If so, when did you learn of the procedure, the written answers like all testi- selor for DHS based upon her understanding conversation, from whom, and what were mony were cleared through the following of her direct communications with the OIG. you told about the conversation? DHS offices: Legislative Affairs, Office of This round of questions raised for the first Response: At some point on June 16, I be- General Counsel, and Office of the Secretary. time an issue with respect to the clear guid- came aware that the ICE Principal Legal Ad- Additionally, ICE Legislative Affairs (Tim ance offered by that OIG e-mail and the visor was engaged in conversation with the Haugh, Acting Director, and ICE Legal Chief Legal Counselor. Let me state that I Office of Inspector General and was in con- (Mark Wallace, Principal Legal Advisor) re- believe that this guidance was the topic of tact with the Department’s Chief Legal viewed the draft answers. In answering the much discussion, at the time, in order to at- Counselor. I was not aware of the substance questions related to the Texas matter, I re- tempt to ensure a coordinated approach to of the particular conversation referenced in lied upon the advice of legal counsel, the OIG Congress. I understood that my Principal your July 8 questions. I was aware of the e-mail, and the fact that the answers were Legal Advisor, as well as Tim Haugh of my conflicting interpretations of the OIG policy ‘‘cleared’’ through DHS. Congressional Affairs Office, discussed the as outlined in your June 13 letter. As I un- (7) With respect to each of the answers you issue of referring to the OIG questions re- derstood it, the point of the conversations provided on May 30, June 13, and June 16 re- garding the investigation with the OIG Chief between the Department’s Chief Legal Coun- lating to the Texas matter, do you now be- Counsel in order to clarify the position and selor, my Principal Legal Advisor, and the lieve the answers you submitted were accu- to insure that the responses were accurate. Office of Inspector General were aimed at rate? Please explain the basis for your con- At this time, I also answered the substantive clarifying the OIG position regarding ques- clusions. questions about the AMICC matter. My un- tions related to the Texas matter and to en- Response: Yes—for the reasons explained derstanding is that both the OIG’s Chief sure that the answers submitted on June 16 above. Counsel and the Assistant IG assigned to in- were accurate. I understand that the OIG Based on what you now know, do you still vestigate this matter agree that the June 16 agrees that the June 16 answers are accurate. believe that ‘‘the IG’s office directed that it responses are accurate with respect to com- (b) Why did you claim in your answers of would not be appropriate to comment on this munications with that office. June 16 that Mr. Reback’s e-mail was the issue’’? If so, how do you explain the state- (2) According to Richard Reback, Coun- basis for your understanding that you had ments to the contrary by officials from the selor to the Acting Inspector General, Lucy been ‘‘directed’’ not to answer questions on Office of the Inspector General? Please ex- Clark, the DHS Chief Legal Counselor, first the Texas matter, despite Lisa Redman’s dis- plain the basis for your conclusion. called him on the afternoon of June 2, 2003, avowal of that claim? Response: The Office of Inspector General and spoke with him a final time on June 4, Response: Mr. Reback’s earlier e-mail stated in an e-mail in response to a request 2003. On June 4, Mr. Reback sent Lucy Clark (stating that I could use the following ques- for guidance as follows: ‘‘Attached is the lan- the e-mail which you provided to the Com- tions if asked about the State legislator guage Mr. Garcia can use if questioned on mittee on June 16. issue: ‘‘The Office of Inspector General (OIG) the Texas State legislators issue.’’ The at- (a) Were you aware of these conversations has asked that any questions relating to this tachment read: ‘‘My office referred this mat- between Lucy Clark and Richard Reback? If matter be directed to them.’’) was the pri- ter to the department’s Office of inspector so, when did you learn of the conversations, mary basis for my earlier answers, in addi- General (OIG) on the evening of May 15, 2003. from whom, and what were you told about tion to the guidance of the Department’s The OIG has asked that any questions relat- the conversations? Chief Legal Counselor. At the time I an- ing to this matter be directed to them.’’ I be- (b) Did you ever see the text of the e-mail swered the June 13 questions, I had no indi- lieve that I took the appropriate step by hav- that Mr. Reback sent on June 4? If so, when cation that Ms. Redmon or anyone else at ing counsel seek guidance from the AMICC

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00196 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY November 25, 2003 CONGRESSIONAL RECORD — SENATE S16077 regarding the appropriate answer to ques- gress. We passed 11 of those bills in just annual rate. This is the largest third tions related to an investigation the OIG was 3 weeks. quarter increase since 1984. conducting. Given that the OIG guidance at We also passed a budget to establish Real disposable income is up 7.2 per- the time ‘’asked’’ for question to be ‘‘di- a blueprint for creating jobs, investing cent for the third quarter, and con- rected to them’’ and an OIG only subse- in homeland security and education, sumer spending is up a whopping 6.6 quently suggested different guidance, I be- lieve that directing questions to the OIG was providing Medicare prescription drug percent, the biggest third quarter appropriate at the time. I also believe that coverage and offering health insurance growth since 1988. better communication between OIG and ICE, for our most vulnerable citizens, Amer- Last month, sales of previously especially when presented with an inquiry ica’s children. owned homes hit their third-highest from Congress, is critical and I am com- With that unfinished business of the level on record. The National Associa- mitted to facilitating such communication last Congress complete, we turned our tion of Realtors reports that previously in the future. attention to the President’s jobs and owned home sales rose 3.6 percent to a (9) Both the IG’s Counsel and the Assistant growth agenda. record annual rate of nearly 7 million IG for Investigations have stated that they Under the President’s leadership, we units in September. Meanwhile, hous- don’t have the authority to direct a Depart- passed $350 billion in tax relief, the ment employee not to answer Congressional ing starts are nearing a 17 year high. inquiries. Do you still believe that an IG’s third largest tax cut in history. We cut The association credits this phe- office has the authority to direct you not to taxes, across the board, for 136 million nomenal growth to ‘‘the powerful fun- provide information to Congress? If so, what hard-working, tax-paying Americans. damentals that are driving the housing is the legal basis for that claim? For America’s families, we increased market, household growth, low interest Response: I will be guided by the OIG’s in- the child tax credit from $600 per child rates and an improving economy.’’ terpretation regarding its authority and will to $1000 per child, and made sure that This is great news for America’s fam- ensure proper coordination with that office. money was sent out right away. As a ilies and for America’s businesses. (10) As you may know, Congress has fre- result, this summer, 25 million families When a family buys a home, that not quently conducted inquiries into agency received checks from the United States only benefits the community, it sets matters in which there were also IG inves- tigations. Do you nevertheless believe that Treasury of up to $400 per child. In off a chain of purchases that fuel the the pendency of an IG investigation pre- total, we returned $13.7 billion to fami- economy: living room furniture, kitch- cludes you or other agency officials from re- lies across the country. en appliances, washer and dryer, and sponding to Congressional information re- But that was just the start. on and on. In short, many other indus- quests? If so, what is the legal basis for that Under the Jobs and Growth Act of tries benefit from the one family’s mo- claim? 2003, a family of four making $40,000 mentous and gratifying decision to buy Response: I would be guided by the OIG will see their taxes reduced by $1,133 a home. with respect to commenting on such mat- this year. Not only is individual consumption ters. Again, I believe better internal coordi- Of the $350 billion in tax cuts and fis- up, the business sector is showing im- nation on this issue would avoid any conflict cal relief, nearly $200 billion, fully 60 in providing responsive answers to Congress. pressive signs of recovery, as well. Non- (11) Please provide any additional informa- percent, is provided this year and next. residential investment is up more than tion you believe might be helpful to clarify Some critics of the tax cut say $1,300 10 percent. Business investment went the Committee’s record on this matter. is not a lot of money, that it would not up 11.1 percent in the third quarter, Response: I would add that at all times in make much difference if the bureau- and productivity soared by 8.1 percent, responding to your questions I was guided by crats took it away again. Tell that to its highest level in two decades. a sincere desire not to in any way interfere the family working hard to raise their Businesses are rebuilding their inven- with an ongoing criminal investigation, one children, keep up with household ex- tories and retooling their factories. of high sensitivity and one which I had re- penses, and have a something left over And all of this economic activity is ul- ferred to the IG. At no time did I intend to evade answers or to in any way challenge the for a family vacation. I am fairly cer- timately leading to more jobs. Indeed, authority of Congress to inquire into such tain the United States Treasury did the labor market appears to be stabi- matters. I responded based upon what I rea- not get a flurry of child tax credit lizing and the economy is finally cre- sonably believed was the guidance from the checks in the mail from families who ating much needed jobs. OIG and counsel. I would be happy to discuss said they didn’t need it. Over the past 3 months, 286,000 new this matter with you further if you feel that Small business owners, too, got a jobs have come on line. In October such a meeting would be helpful. major boost from the tax package. alone, 126,000 jobs were added. Mr. FRIST. Mr. President, as the Twenty-three million small business Meanwhile, since the tax cut, initial 108th Congress draws to a close, I would owners who pay taxes at the individual claims for unemployment insurance like to take a few moments to reflect rate saw their taxes lowered. And we have gone down more than 10 percent. on the tremendous progress this Senate quadrupled the expense deduction for For the seek ending November 1, unem- has made in moving America forward. small business investment. ployment claims hit a 34-month low. Leading the Senate is an honor and a Small business owners are the heart There is more progress to be made on pleasure, made all the more so by of the American marketplace. Workers this front, but we are on our way to- working with such talented people. I and consumers depend on the small wards putting Americans back to work. thank my fellow Senators for their business sector to generate jobs, prod- And, finally, there is good news for dedication. It has been an exceptional ucts, and services. These innovators individual State treasuries. Their legislative year. create 60 to 80 percent of new jobs na- budget gap of nearly $20 billion at the Back in January, we set an ambi- tionwide, and they generate more than beginning of last fiscal year has now tious agenda. We resolved to put the 50 percent of the gross domestic prod- declined to a budget gap of less than $3 economy back on track; lend critical uct. billion for the beginning of this fiscal support to the war on terror; and pro- By cutting their taxes and encour- year. States are beginning to see ‘‘rev- mote public health here at home and aging investment, we have helped un- enue surprises’’ in their estimates. abroad. Our mission was to expand leash their tremendous economic Consumers and businesses, alike, are freedom and opportunity, and strength- power. optimistic about the America’s eco- en America’s security. Taken together, this year’s tax cut nomic direction. Inflation and interest In 11 short months we have made and the tax cuts of 2001 are providing rates are low. American taxpayers have major strides towards those goals. And an astonishing $1.7 trillion in tax relief more of their hard earned money to we did so by respecting the long- over the next decade. And we are al- spend and save as they choose. standing Senate values of civility and ready beginning to see the results. We We will continue to champion poli- trust, by building strong and reliable are now in the midst of a strong eco- cies that strengthen the economy and relationships, and by committing our- nomic recovery. Consumers have more create jobs. We will continue to pursue selves to action. Each of us can go money in their pockets. And businesses fair and free trade policies that in- home this holiday season proud of our are, once again, optimistic about the crease consumer buying power and accomplishments. direction of the economy. stoke the economic furnace. We first set to work passing spending Economic growth in the third quar- This session we passed the free trade bills left undone by the previous Con- ter soared at an incredible 8.2 percent agreements with Chile and Singapore.

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00197 Fmt 0624 Sfmt 0634 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16078 CONGRESSIONAL RECORD — SENATE November 25, 2003 Simultaneously, export grew 9.3 per- Our work in passing this critical leg- is estimated that this energy package cent in the third quarter, another islation demonstrates that we are a will create at least half of a million marker of our renewed economy. country that places a high value on jobs. The Alaskan pipeline alone will We will continue to fulfill our mis- life. History will judge how we chose to create at least 400,000. The hundreds of sion to maximize freedom and expand respond. We can proudly say that we millions of dollars that will be invested opportunity. made the right choice and took the in research and development of new Which leads me to national security. necessary actions to put an end to one technologies will not only benefit the Our mission to expand freedom and op- of the worst plagues in recorded his- environment, but will create new jobs portunity applies not just to our econ- tory. in engineering, math, chemistry, phys- omy, but to our national security, as We also made the right choice to end ics, and science. well. Freedom cannot find its fullest partial birth abortion. Partial birth We cannot allow the obstruction of a expression under the threat of terror. abortion is a fringe procedure. It is not few in the Senate continue to harm the But, likewise, terror can not spread taught in medical schools. And now, it interests of millions of Americans. And where freedom reigns. never will be. With an overwhelming I use the word ‘‘obstruction,’’ because That is why, this year, America took majority, we voted to end an immoral we have seen it used to an alarming de- the extraordinary action of toppling procedure, and said ‘‘yes’’ to life. gree in this Congress, nowhere more so Saddam Hussein and his terrorist-spon- Indeed, this Senate can be proud of than in the consideration of the Presi- soring regime. In 3 short weeks, the our efforts to protect the most vulner- dent’s judicial nominees. men and women of the United States able among us. In January, we passed Only 2 weeks ago, we had an historic, military, with the support of 49 na- legislation to establish a national around the clock, 40 hour debate. And tions, swept to Baghdad, ending three AMBER Alert. Law enforcement will after 40 full hours of debate, the minor- decades of ruthless Ba’ath Party rule now have another tool to work with ity continued to block an up or down and support for terror. the public to find missing children. In vote. This is partisan obstruction pure In the months since, our soldiers June, we passed legislation to protect and simple. A minority of Senators is have worked tirelessly, under dan- victims of child abuse. We also voted to denying all 100 our Constitutional duty gerous conditions, to help the Iraqi extend welfare reform to help lift fami- to advise and consent. people build a democracy. lies out of poverty. Our soldiers have rebuilt schools, But perhaps the most historic and far When we return in January, we will hospitals, electrical grids, pipelines, reaching legislative accomplishment of continue to press this issue. Nothing and roads. They are training Iraqi po- the 108th Senate happened this morn- less than the United States Constitu- lice forces to patrol the streets and ing, when an overwhelming, bipartisan tion is at stake. hunt down terrorists. Everyday, our majority voted to enact prescription We will also continue to press for troops are helping the people of Iraq drug coverage for our nation’s 40 mil- policies that expand and strengthen and Afghanistan move toward becom- lion seniors and individuals with dis- our economy. This session, we passed ing free and open societies. abilities. smart, pro-growth fiscal policy. We are To support their efforts, we passed For the first time in its 40-year his- already beginning to see the results. the President’s $87 billion war supple- tory, Medicare will offer true, com- But there is still much to do. mental. We did so because we recognize prehensive health care coverage. This Frivolous lawsuits are clogging the that investing in the future of Iraq and worthy program will finally be able to State courts, wasting taxpayer dollars, Afghanistan is an investment in our se- keep pace with modern medicine. and inhibiting the innovation and en- curity. September 11 taught us a cruel I am deeply thankful for the coopera- trepreneurship so critical to creating lesson. We learned that we cannot wait tion, hard work and dedication of my jobs. When it comes to medical mal- while storms gather. As the President colleagues to overcome years of par- practice, frivolous lawsuits are de- has said, ‘‘the Middle East region will tisan gridlock and finally offer Amer- stroying access to quality health care either become a place of progress and ica’s seniors the security they need and and, literally, imperiling lives. peace, or it will remain a source of vio- the choices they deserve. America is country that values fair- lence and terror.’’ Medicare reform, the Jobs and ness, and we will return fairness to the This Senate took bold action to sup- Growth tax cuts, the Iraqi war supple- litigation process. port the war on terror because we are mental, the global HIV bill—we set our We will also work to return fairness determined that progress and peace sights high and we more than exceeded to the tax system. We will continue to take root. expectations. press for reforms that simplify the tax The Middle East is not the only re- We are moving America forward, and code. Tax payers shouldn’t have to hire gion where we are working to bring we will continue to do so in the coming a consultant to file a tax return. stability. This session, we passed the months. There is much yet to be done. We will also begin the exciting work Burmese Freedom Act and the Clean Critically, we must pass the energy of constructing the long awaited Na- Diamond Act. bill. We have been debating national tional Museum for African American And we also took the historic action energy for three years. During the last History and Culture. America will fi- of dedicating $15 billion to drive back Congress, we spent a total of 7 weeks nally have a museum worthy of Amer- the HIV/AIDS virus. debating energy on the Senate floor. In ica’s sons and daughters who sacrificed As a Senator, as a doctor, and as a this Congress, we spent more time de- so much and have given so profoundly. medical missionary, I am especially bating energy than any other bill. And gratified by the Senate’s demonstra- yet, despite all of this, a few in the There is much more to do in the year tion of compassion on this issue. Mil- Senate continue to obstruct progress. ahead, and I will speak to that when we lions of lives around the world have And while they insist on more debate, resume in January. been cut short by the scourge of one natural gas prices continue to rise. Each day I walk into this great insti- tiny virus. Countries have seen entire U.S. chemical companies are closing tution, I am humbled and inspired, swaths of their populations wiped out plants, laying off workers, and looking humbled by the great men and women and children orphaned, because of the to expand production abroad. The U.S. who have come before, and inspired by HIV virus that causes AIDS. is expected to import approximately $9 their example. By passing the Global HIV/AIDS bill, billion more in chemicals than it ex- In his 1862 address to Congress, Presi- we help to prevent 7 million new infec- ports this year. American consumers dent Lincoln told the assembled legis- tions; provide antiretroviral drugs for 2 are getting hit with higher electric lators that America is the world’s last, million HIV-infected people; care for 10 bills, and small businesses are strug- best hope. Those words have never been million HIV-infected individuals and gling to contain costs. All because of more true than they are today. I am AIDS orphans; and bring hope to mil- rising energy prices. We must pass the confident that we will face the chal- lions of people around the world who energy plan. lenges ahead with honor and courage, are living in the shadow of this dev- Not only will it lower prices, it will for the simple reason that we are astating disease. save jobs and create thousands more. It Americans.

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SAINT LAWRENCE SEAWAY DEVELOPMENT DAVID A DJURIC, 0000 LEGISLATIVE SESSION PATRICK A GARLAND, 0000 CORPORATION The PRESIDING OFFICER. Under ANDREW R GILBERT, 0000 JACK EDWIN MCGREGOR, OF CONNECTICUT, TO BE A WILLIAM P GORDON JR., 0000 the previous order, the Senate will re- MEMBER OF THE ADVISORY BOARD OF THE SAINT LAW- KARA M HACK, 0000 RENCE SEAWAY DEVELOPMENT CORPORATION, VICE JORDAN M HALL, 0000 sume legislative session. BRANDON G HAMILTON, 0000 VINCENT J. SORRENTINO. TRISTAN M HARRISON, 0000 SCOTT KEVIN WALKER, OF WISCONSIN, TO BE A MEM- f NATHAN E HARTVIGSEN, 0000 BER OF THE ADVISORY BOARD OF THE SAINT LAWRENCE CHRISTOPHER C HIGGINS, 0000 SEAWAY DEVELOPMENT CORPORATION, VICE ANTHONY ORDERS FOR TUESDAY, THOMAS N HOFFMANN, 0000 S. EARL. DECEMBER 9, 2003 JOHN D HORTON, 0000 DEPARTMENT OF THE TREASURY BRUCE L JAMES, 0000 Mr. MCCONNELL. Mr. President, I BRYAN M JOHNSON, 0000 MARK J. WARSHAWSKY, OF MARYLAND, TO BE AN AS- ERIK R JOHNSON, 0000 ask unanimous consent that when the SISTANT SECRETARY OF THE TREASURY, VICE RICHARD ANDREW KAGEL, 0000 Senate completes its business today, it CLARIDA, RESIGNED. THERESA A KEHL, 0000 INTER-AMERICAN FOUNDATION MICHAEL J KILBOURNE, 0000 adjourn until 10 a.m., Tuesday, Decem- CAMILO Y KIM, 0000 ber 9. I further ask that following the ROGER W. WALLACE, OF TEXAS, TO BE A MEMBER OF EUGENE H KIM, 0000 THE BOARD OF DIRECTORS OF THE INTER-AMERICAN ADRIAN T KRESS, 0000 prayer and pledge, the morning hour be FOUNDATION FOR A TERM EXPIRING OCTOBER 6, 2008, MICHAEL J LICATA, 0000 VICE FRED P. DUVAL. JEFFREY R LIMJUCO, 0000 deemed expired, the Journal of pro- JEFFREY R LIVEZEY, 0000 ceedings be approved to date, the time THE JUDICIARY ROMARIUS L LONGMIRE, 0000 ERIK S MANNINEN, 0000 for the two leaders be reserved for their MARCIA G. COOKE, OF FLORIDA, TO BE UNITED STATES ALEX J MCKINLAY, 0000 use later in the day, and the Senate DISTRICT JUDGE FOR THE SOUTHERN DISTRICT OF BRIAN C MCLEAN, 0000 FLORIDA, VICE WILKIE D. FERGUSON, JR., DECEASED. MARCY MEYER, 0000 then begin a period of morning busi- CURTIS V. GOMEZ, OF VIRGIN ISLANDS, TO BE JUDGE PAUL M MICHAUD, 0000 ness with Senators permitted to speak FOR THE DISTRICT COURT OF THE VIRGIN ISLANDS FOR CHRISTOPHER S MURPHY, 0000 A TERM OF TEN YEARS, VICE THOMAS K. MOORE, TERM DAYNE M NELSON, 0000 for up to 10 minutes each. EXPIRED. PHU T NGUYEN, 0000 The PRESIDING OFFICER. Without IN THE ARMY ROBERT L OAK, 0000 JOSHUA C PACKARD, 0000 objection, it is so ordered. THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- JISOO PARK, 0000 POINTMENT IN THE GRADES INDICATED IN THE UNITED JENNIFER H PERKINS, 0000 f STATES ARMY MEDICAL CORPS UNDER TITLE 10, U.S.C., MICHAEL P PERKINS, 0000 SECTIONS 531 AND 3064: NADER Z RABIE, 0000 PROGRAM HIPOLITO C REY, 0000 To be colonel JAMIE C RIESBERG, 0000 Mr. MCCONNELL. The Senate will DAVID S FEIGIN, 0000 JOSHUA S RITENOUR, 0000 THOMAS M ROUNTREE, 0000 VICTOR B LEBEDOVYCH, 0000 reconvene on Tuesday, December 9, and DENNIS M SARMIENTO, 0000 ROBERT A VIGERSKY, 0000 it is our hope that we will be able to DANIEL C SESSIONS, 0000 To be lieutenant colonel BENJAMIN H SMITH, 0000 consider the omnibus appropriations DARREN C SPEARMAN, 0000 conference report that day. The con- ANTONIO G BALINGIT, 0000 KAREN B TARM, 0000 LEON R BYBEE, 0000 DANIEL J TOLSON, 0000 ference report has been filed and this CRAIG HARTRANFT, 0000 CHRISTOPHER J TUCKER, 0000 will give ample time for Members to DEAN A INOUYE, 0000 AMY E VERTREES, 0000 JEROME H KIM, 0000 DUVEL W WHITE, 0000 review that measure. We will also con- WILLARD F QUIRK, 0000 TODD A WICHMAN, 0000 sider any legislative or executive items SCOTT G WILLIAMS, 0000 To be major AGNIESZKA O WOJCIEHOWSKI, 0000 that can be cleared by unanimous con- DIANE DEVITA, 0000 DAVID A WONDERLICH, 0000 sent. I hope among those will be some JOHN E HARTMANN, 0000 KIMBERLY J WONDERLICH, 0000 YANG XIA, 0000 of these 95 innocent nominees who were THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- caught up in the obstructionism in the POINTMENT IN THE GRADE INDICATED IN THE UNITED THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- STATES ARMY DENTAL CORPS UNDER TITLE 10, U.S.C., POINTMENT IN THE GRADES INDICATED IN THE UNITED Senate. Hopefully, during the Thanks- SECTIONS 531 AND 3064: STATES ARMY MEDICAL SPECIALIST CORPS UNDER TITLE 10, U.S.C., SECTIONS 531 AND 3064: giving recess, we will come back with a To be lieutenant colonel To be major different attitude and clear the nomi- JOSEPH L. CRAVER, 0000 DANIEL G RENDEIRO, 0000 nees. One issue we need to address is WILLIAM HANN, 0000 the pension rate bill, and we will con- THE FOLLOWING NAMED OFFICER FOR REGULAR AP- To be captain POINTMENT IN THE GRADE INDICATED IN THE UNITED tinue to work toward finishing that ROGER J BANNON, 0000 STATES ARMY CHAPLAIN CORPS UNDER TITLE 10, U.S.C., WILLIAM J BOWMAN, 0000 bill when we return. SECTIONS 531,AND 3064: RICHARD CAPO, 0000 To be major MICHAEL J COOTE, 0000 I will announce, no rollcall votes will GEORGE J DEVITA, 0000 occur that day. So obviously on that CAROL ANN MITCHELL, 0000 MICHAEL E FRANCO, 0000 EDWARD A HAIRSTON, 0000 day what we will be able to do will be THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- DANNY H HEIDENREICH, 0000 done by consent. POINTMENT IN THE GRADES INDICATED IN THE UNITED CYNTHIA A JONES, 0000 STATES ARMY VETERINARY CORPS UNDER TITLE 10, LARRY T LINDSAY, 0000 We wish everyone a pleasant Thanks- U.S.C., SECTIONS 531, AND 3064: LARRY T LONG, 0000 giving holiday and hope when we come To be major ROBERTO E MARIN, 0000 GAIL L MAXWELL, 0000 back on December 9 we will be able to CAROL A. BOSSONE, 0000 MICHAEL K MCELHERAN, 0000 do some of the Nation’s unfinished To be captain DONNA F MOULTRY, 0000 business. JAMES G PAIRMORE, 0000 ROBERT S. DOLE, 0000 DENIS L ROBERT, 0000 f CHRISTOPHER S. GAMBLE, 0000 MARTIN P ROSE, 0000 CURTIS M. KLAGES, 0000 RAYMOND A STERLING, 0000 RANDY B THOMAS, 0000 ADJOURNMENT UNTIL TUESDAY, THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- YUN Y UGAITAFA, 0000 DECEMBER 9, 2003, AT 10 A.M. POINTMENT IN THE GRADES INDICATED IN THE UNITED STATES ARMY MEDICAL SERVICE CORPS UNDER TITLE To be first lieutenant Mr. MCCONNELL. Mr. President, if 10, U.S.C., SECTIONS 531 AND 3064: DIANE K PATTERSON, 0000 there is no further business to come be- To be major THE FOLLOWING NAMED OFFICERS FOR REGULAR AP- fore the Senate, I ask unanimous con- CONSTANCE A BELL, 0000 POINTMENT IN THE GRADES INDICATED IN THE UNITED ROBERT C CONRAD, 0000 STATES ARMY NURSE CORPS UNDER TITLE 10, U.S.C., sent that the Senate stand in adjourn- EMERY B FEHL, 0000 SECTIONS 531 AND 3064: ment under the provisions of H. Con. RICHARD GONZALES, 0000 To be captain VICKIE L TUTEN, 0000 Res. 339. HOBERT W WELLS III, 0000 MICHAEL T ENDRES, 0000 LISA G JACKSON, 0000 There being no objection, the Senate, To be captain at 6:15 p.m., adjourned until Tuesday, DETRA T JACKSONCONNER, 0000 MICHAEL V ARNETT, 0000 ROBERT E LAJERET, 0000 December 9, 2003, at 10 a.m. DREW G BELNAP, 0000 TERRENCE M MARK, 0000 JOHN H BODEN, 0000 STACEY E NAPPERREED, 0000 f MATTHEW A BORGMAN, 0000 ANGELA R REDMOND, 0000 ALEXANDER W BROWN, 0000 EDITHA D RUIZ, 0000 NOMINATIONS CRAIG M BUSH, 0000 ROBERT D SWINFORD, 0000 MICHAEL S CAHILL, 0000 PHYLLIS R SYKES, 0000 Executive nominations received by BRIAN J CARR, 0000 To be first lieutenant MATTHEW S CHAMBERS, 0000 the Senate November 25, 2003: STUART J COHEN, 0000 JAMES A CHERVONI, 0000 DEPARTMENT OF TRANSPORTATION ROBERT J CORNFELD, 0000 IN THE NAVY CARLOS E CORREDOR, 0000 LINDA MORRISON COMBS, OF NORTH CAROLINA, TO BE MARK S CRAIG, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT AN ASSISTANT SECRETARY OF TRANSPORTATION, VICE KEVIN M CRON, 0000 TO THE GRADE INDICATED IN THE UNITED STATES NAVY DONNA R. MCLEAN, RESIGNED. KEVIN L CUMMINGS, 0000 UNDER TITLE 10, U.S.C., SECTION 624:

VerDate Mar 15 2010 21:58 Jan 14, 2014 Jkt 081600 PO 00000 Frm 00199 Fmt 0624 Sfmt 9801 E:\2003SENATE\S25NO3.REC S25NO3 mmaher on DSKCGSP4G1 with SOCIALSECURITY S16080 CONGRESSIONAL RECORD — SENATE November 25, 2003 To be lieutenant commander THE ABOVE NOMINATIONS WERE APPROVED SUBJECT To be vice admiral TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- CRAIG L ABRAHAM, 0000 QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY REAR ADM. WALTER B. MASSENBURG EDWARD C AGU, 0000 CONSULTED COMMITTEE OF THE SENATE. ROBIN M ALLEN, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT BRIAN J ANDERSON, 0000 IN THE AIR FORCE IN THE UNITED STATES NAVY TO THE GRADE INDICATED MICHAEL V BENEDETTO, 0000 UNDER TITLE 10, U.S.C., SECTION 624: FERDINAND B BEREDO, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT ROGER L BILLINGS, 0000 IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- To be rear admiral RODNEY D BLEVINS, 0000 CATED WHILE ASSIGNED TO A POSITION OF IMPORTANCE GEORGE E BRESNIHAN, 0000 AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION REAR ADM. (LH) ROBERT E. COWLEY III CHAD E BUERMELE, 0000 601: REAR ADM. (H) STEVEN W. MAAS JOHN A CARDILLO, 0000 JASON R CASSANO, 0000 To be lieutenant general THE FOLLOWING NAMED OFFICER FOR APPOINTMENT EDWARD M CAVINS, 0000 IN THE UNITED STATES NAVY TO THE GRADE INDICATED JAMES CHEATHAM, 0000 MAJ. GEN. WILLIAN WELSER III UNDER TITLE 10, U.S.C., SECTION 624: KEVIN E CHESHURE, 0000 TODD R CHIPMAN, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT To be rear admiral (lower half) WILLIAM H CLARKE, 0000 IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- CATED UNDER TITLE 10, U.S.C., SECTION 624: DENNIS W CONNORS, 0000 CAPT. BRIAN G. BRANNMAN SCOTT A DAVIS, 0000 BRENT L DESSING, 0000 To be brigadier general THE FOLLOWING NAMED OFFICER FOR APPOINTMENT KIRK B DIAL, 0000 COLONEL PAUL F. CAPASSO IN THE UNITED STATES NAVAL RESERVE TO THE GRADE STANLEY S DIMIRACK, 0000 INDICATED UNDER TITLE 10, U.S.C., SECTION 12203: FREDERICK M DINI, 0000 COLONEL FLOYD L. CARPENTER DEBBIE R DOLIC, 0000 COLONEL WILLIAM A. CHAMBERS TO BE REAR ADMIRAL (LOWER HALF) PAMELA C DOZIER, 0000 COLONEL PAUL A. DETTMER COLONEL DAVID K. EDMONDS MICHAEL A DUBE, 0000 CAPT. RAYMOND K. ALEXANDER JOHN S DUENAS, 0000 COLONEL JACK B. EGGINTON COLONEL DAVID J. EICHHORN CHIPMAN S ELLIOTT, 0000 THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT JOSEPH C ESPINO, 0000 COLONEL DAVID W. EIDSAUNE COLONEL BURTON M. FIELD IN THE UNITED STATES NAVY TO THE GRADE INDICATED JAMES G FABBY, 0000 UNDER TITLE 10, U.S.C., SECTION 624: JOSE L FELIZ, 0000 COLONEL ALFRED K. FLOWERS TERREL J FISHER, 0000 COLONEL RANDAL D. FULLHART To be rear admiral JASON B FITCH, 0000 COLONEL MARKE F. GIBSON KENNETH L FLAHERTY, 0000 COLONEL ROBERT H. HOLMES COLONEL STEPHEN L. HOOG REAR ADM. (LH) DONALD K. BULLARD PHILLIP K FRAME JR., 0000 REAR ADM. (LH) ALBERT M. CALLAND III NATASHA A GAMMON, 0000 COLONEL LARRY D. JAMES COLONEL RALPH J. JODICE II REAR ADM. (LH) ROBERT T. CONWAY, JR. MARK R GARRIGUS, 0000 REAR ADM. (LH) JOHN J. DONNELLY EDMOND J GAWARAN, 0000 COLONEL JAN MARC JOUAS COLONEL JAY H. LINDELL REAR ADM. (LH) BRUCE B. ENGLEHARDT JAMES R S GAYTON, 0000 REAR ADM. (LH) CHARLES S. HAMILTON II TONY V GILES, 0000 COLONEL KAY C. MCCLAIN COLONEL ROBERT H. MCMAHON REAR ADM. (LH) JOHN C. HARVEY, JR. TRAVIS N GOODWIN, 0000 REAR ADM. (LH) CARLTON B. JEWETT TROY M GRONBERG, 0000 COLONEL STEPHEN P. MUELLER COLONEL WILLIAM J. REW REAR ADM. (LH) MATTHEW G. MOFFIT ANTONIO B HARLEY, 0000 REAR ADM. (LH) MICHAEL P. NOWAKOWSKI DOUGLAS W HAROLD, 0000 COLONEL KATHERINE E. ROBERTS COLONEL KIP L. SELF REAR ADM. (LH) HAROLD D. STARLING II MICHAEL E HAVENS, 0000 REAR ADM. (LH) JAMES STAVRIDIS TERENCE B HAYES, 0000 COLONEL MICHAEL A. SNODGRASS COLONEL DAVID M. SNYDER REAR ADM. (LH) MICHAEL C. TRACY JULIE M HUNTER, 0000 REAR ADM. (LH) JOHN J. WAICKWICZ JEFF T IHLENFIELD, 0000 COLONEL LARRY O. SPENCER COLONEL ROBERT P. STEEL MICHAEL N JEFFERSON, 0000 AIR FORCE NOMINATION OF GARY H. SHARP. HOMER L JOHNSON JR., 0000 COLONEL THOMAS J. VERBECK COLONEL JAMES A. WHITMORE AIR FORCE NOMINATION OF JEFFREY N. LEKNES. JAYSON E KIELAR, 0000 AIR FORCE NOMINATION OF SAMUEL B. ECHAURE. WALTER R LEAVY, 0000 COLONEL BOBBY J. WILKES COLONEL ROBERT M. WORLEY II AIR FORCE NOMINATIONS BEGINNING THOMAS E. JAHN WILLIAM N LI, 0000 AND ENDING RODNEY D. LEWIS, WHICH NOMINATIONS JADON LINCOLN, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT WERE RECEIVED BY THE SENATE AND APPEARED IN THE JOHN S LUGO, 0000 CONGRESSIONAL RECORD ON OCTOBER 23, 2003. DOUGLAS S MACKENZIE, 0000 IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- CATED UNDER TITLE 10, U.S.C., SECTION 624: AIR FORCE NOMINATIONS BEGINNING SAMUEL C. ALEXANDER S MAITRE, 0000 FIELDS AND ENDING KEVIN C. ZEECK, WHICH NOMINA- JEFFERSON E MCCOLLUM, 0000 To be brigadier general TIONS WERE RECEIVED BY THE SENATE AND APPEARED JOSEPH A MCGAHA, 0000 IN THE CONGRESSIONAL RECORD ON OCTOBER 23, 2003. WILLIAM P MCKINLEY, 0000 COL. STEPHEN L. LANNING AIR FORCE NOMINATION OF ROBERT G. CATES III. GARY MILTON, 0000 AIR FORCE NOMINATION OF MARY J. QUINN. THOMAS J NEVILLE III, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT AIR FORCE NOMINATIONS BEGINNING CHRISTOPHER C. COLIN J OBRIEN, 0000 ERICKSON AND ENDING MARK A. MCCLAIN, WHICH NOMI- ARVIS OWENS, 0000 IN THE UNITED STATES AIR FORCE TO THE GRADE INDI- CATED UNDER TITLE 10, U.S.C., SECTION 624: NATIONS WERE RECEIVED BY THE SENATE AND AP- ROBERT D PEREZ, 0000 PEARED IN THE CONGRESSIONAL RECORD ON NOVEMBER CRAIG A RETZLAFF, 0000 To be major general 17, 2003. MARK A REYES, 0000 ARMY NOMINATION OF LANCE A. BETROS. WILLIAM M REYNOLDS, 0000 BRIGADIER GENERAL ROBIN E. SCOTT ARMY NOMINATIONS BEGINNING THOMAS B. SWEENEY DAVID J RHONE, 0000 AND ENDING PAUL L. ZANGLIN, WHICH NOMINATIONS MARK C RICE, 0000 IN THE ARMY WERE RECEIVED BY THE SENATE AND APPEARED IN THE KIMBERLY C ROBERTSON, 0000 CONGRESSIONAL RECORD ON OCTOBER 30, 2003. CHRISTOPHER M RODRIGUES, 0000 ARMY NOMINATIONS BEGINNING JOHN D. MCGOWAN II JOAQUIN A SANCHEZ, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT IN THE UNITED STATES ARMY TO THE GRADE INDICATED AND ENDING KENNETH E. NETTLES, WHICH NOMINA- JOSE L SANCHEZ, 0000 TIONS WERE RECEIVED BY THE SENATE AND APPEARED TERRENCE SIMMONS, 0000 WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: IN THE CONGRESSIONAL RECORD ON NOVEMBER 17, 2003. LANDON C SMITH JR., 0000 ARMY NOMINATIONS BEGINNING VERNAL G. ANDERSON DONALD M STYER, 0000 To be lieutenant general AND ENDING DONALD J. KERR, WHICH NOMINATIONS JOHN G TENCER III, 0000 WERE RECEIVED BY THE SENATE AND APPEARED IN THE JOEL D M TIU, 0000 MAJ. GEN. LARRY J. DODGEN CONGRESSIONAL RECORD ON NOVEMBER 17, 2003. AARON S TRAVER, 0000 ARMY NOMINATIONS BEGINNING GASTON P. BATHALON MILTON W TROY III, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT AND ENDING PAULA J. RUTAN, WHICH NOMINATIONS JAY S TUCKER, 0000 IN THE UNITED STATES ARMY TO THE GRADE INDICATED WERE RECEIVED BY THE SENATE AND APPEARED IN THE DENNIS J TURNER, 0000 WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND CONGRESSIONAL RECORD ON NOVEMBER 17, 2003. MARCO A TURNER, 0000 RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: ARMY NOMINATION OF WILLIAM B. CARR, JR. DONALD C TYER, 0000 ARMY NOMINATIONS BEGINNING JOHN E. ATWOOD AND LEROY H WEBER, 0000 To be lieutenant general ENDING WILLIAM E. ZOESCH, WHICH NOMINATIONS WERE KEITH A WEIDENBACH, 0000 RECEIVED BY THE SENATE AND APPEARED IN THE CON- BRETT K WILCOX, 0000 MAJ. GEN. JOHN M. CURRAN GRESSIONAL RECORD ON NOVEMBER 17, 2003. ROBERT R WINTERS, 0000 ARMY NOMINATIONS BEGINNING CHERYL KYLE AND CHRISTOPHER M WISE, 0000 THE FOLLOWING NAMED OFFICER FOR APPOINTMENT ENDING TERRY C. WASHAM, WHICH NOMINATIONS WERE JOSEPH P WOODS, 0000 IN THE UNITED STATES ARMY TO THE GRADE INDICATED RECEIVED BY THE SENATE AND APPEARED IN THE CON- SARAH L WRIGHT, 0000 UNDER TITLE 10, U.S.C., SECTION 624: GRESSIONAL RECORD ON NOVEMBER 17, 2003. ARMY NOMINATIONS BEGINNING MICHAEL A. BULEY IN THE ARMY To be major general AND ENDING GARY M. ZAUCHA, WHICH NOMINATIONS WERE RECEIVED BY THE SENATE AND APPEARED IN THE THE FOLLOWING ARMY NATIONAL GUARD OF THE BRIG. GEN. KEITH M. HUBER CONGRESSIONAL RECORD ON NOVEMBER 17, 2003. UNITED STATES OFFICER FOR APPOINTMENT IN THE RE- ARMY NOMINATION OF GARY R. MCMEEN. SERVE OF THE ARMY TO THE GRADE INDICATED UNDER THE FOLLOWING NAMED OFFICER FOR APPOINTMENT COAST GUARD NOMINATIONS BEGINNING JEFFREY L. TITLE 10, U.S.C., SECTION 12203: IN THE UNITED STATES ARMY TO THE GRADE INDICATED BUSCH AND ENDING JOHN S. WELCH, WHICH NOMINA- UNDER TITLE 10, U.S.C., SECTION 624: TIONS WERE RECEIVED BY THE SENATE AND APPEARED To be brigadier general IN THE CONGRESSIONAL RECORD ON NOVEMBER 3, 2003. To be major general COAST GUARD NOMINATIONS BEGINNING WILLIAM D. COL. FRANK R. CARLINI, 0000 ADKINS AND ENDING MICHAEL S. ZIDIK, WHICH NOMINA- BRIG. GEN. DENNIS E. HARDY TIONS WERE RECEIVED BY THE SENATE AND APPEARED THE JUDICIARY IN THE CONGRESSIONAL RECORD ON NOVEMBER 3, 2003. THE FOLLOWING NAMED OFFICERS FOR APPOINTMENT MARINE CORPS NOMINATION OF MICHAEL S. NISLEY. JUAN R. SANCHEZ, OF PENNSYLVANIA, TO BE UNITED IN THE RESERVE OF THE ARMY TO THE GRADES INDI- MARINE CORPS NOMINATIONS BEGINNING LEONARD STATES DISTRICT JUDGE FOR THE EASTERN DISTRICT CATED UNDER TITLE 10, U.S.C., SECTION 12203: HALIK III AND ENDING ERNEST R. HINES, WHICH NOMINA- OF PENNSYLVANIA, VICE JAY C. WALDMAN, DECEASED. TIONS WERE RECEIVED BY THE SENATE AND APPEARED f To be major general IN THE CONGRESSIONAL RECORD ON FEBRUARY 11, 2003. MARINE CORPS NOMINATION OF DAVID B. MOREY. BRIG. GEN. JAMES R. SHOLAR NAVY NOMINATION OF PATRICK J. MORAN. CONFIRMATIONS NAVY NOMINATION OF LAWRENCE J. CHICK. To be brigadier general NAVY NOMINATION OF ROBERT E. VINCENT II. Executive nominations confirmed by NAVY NOMINATIONS BEGINNING RODNEY A BOLLING the Senate November 25, 2003: COL. HENRY J. OSTERMANN AND ENDING JAY S VIGNOLA, WHICH NOMINATIONS WERE RECEIVED BY THE SENATE AND APPEARED IN THE DEPARTMENT OF HOMELAND SECURITY IN THE NAVY CONGRESSIONAL RECORD ON NOVEMBER 3, 2003. PUBLIC HEALTH SERVICE NOMINATIONS BEGINNING MICHAEL J. GARCIA, OF NEW YORK, TO BE AN ASSIST- THE FOLLOWING NAMED OFFICER FOR APPOINTMENT VINCENT A. BERKLEY AND ENDING JAMES A. SYMS, ANT SECRETARY OF HOMELAND SECURITY. IN THE UNITED STATES NAVY TO THE GRADE INDICATED WHICH NOMINATIONS WERE RECEIVED BY THE SENATE JAMES M. LOY, OF VIRGINIA, TO BE DEPUTY SEC- WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND AND APPEARED IN THE CONGRESSIONAL RECORD ON OC- RETARY OF HOMELAND SECURITY. RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: TOBER 2, 2003.

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