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

Vol. 145 WASHINGTON, TUESDAY, JUNE 29, 1999 No. 94 Senate The Senate met at 10:30 a.m. and was lessly for the betterment of all the peo- tween the two leaders. The Senate is called to order by the President pro ple of this great Nation, that we wit- then expected to resume consideration tempore [Mr. THURMOND]. ness in our time the fulfillment of the of the pending and long-suffering agri- The PRESIDENT pro tempore. To- vision of the Psalmist, ‘‘They that sow culture appropriations bill. Therefore, day’s prayer will be offered by our in tears, shall reap in joy,’’ so that votes are expected to occur. guest Chaplain, Rabbi Shimshon from all the upheavals which shatter I thank my colleagues for their at- Sherer, Congregation Khai Zichron the soul of society today shall emerge tention. Mordechai, Brooklyn, NY. a new world of hope, tranquility, and The PRESIDENT pro tempore. The We are pleased to have you with us. serenity, for the glory of God and all able Senator from Pennsylvania. mankind. Amen. Mr. SPECTER. I thank the Chair. PRAYER Mr. President, I thank my distin- f The guest Chaplain, Rabbi Shimshon guished colleague, Senator MOYNIHAN, for yielding 2 minutes prior to the time Sherer, offered the following prayer: PLEDGE OF ALLEGIANCE that his special order takes effect. Our Father in heaven: We stand be- The PRESIDENT pro tempore. Sen- f fore Thee in humble supplication as we ator SPECTER will now lead the Senate yearn for divine inspiration, for guid- in the Pledge of Allegiance. RABBI MORRIS SHERER ance, and for wisdom. We turn to Thee The Honorable ARLEN SPECTER, a Mr. SPECTER. Mr. President, I have in gratitude for this group of excep- Senator from the State of Pennsyl- sought this recognition to compliment tional men and women of good faith vania, led the Pledge of Allegiance, as Rabbi Sherer, who has just delivered dedicated to this great Nation and to follows: the Senate prayer. all its people. I pledge allegiance to the Flag of the We are recognizing the outstanding We bless Thee, O God, for a most pre- United States of America, and to the Repub- work of Rabbi Sherer’s father, also cious gift that Thou bestowed upon the lic for which it stands, one Nation under Rabbi Sherer, who died a little more United States of America, upon the God, indivisible, with liberty and justice for than a year ago. Present today in the Jewish people, and indeed upon all of all. Senate gallery are some 200 representa- mankind, in a person, a man of history f tives of a national convocation to rec- who came to be a symbol of visionary RECOGNITION OF THE ACTING ognize the outstanding work of the de- leadership and uncompromising integ- MAJORITY LEADER parted Rabbi Sherer. rity. We pay tribute to the life and leg- I must say that Rabbi Sherer’s com- acy of the saintly revered rabbi, Rabbi The PRESIDENT pro tempore. The ments this morning about freedom of Morris Sherer. able acting majority leader is recog- religion and the impact on everyone in We pray to Thee, Almighty God, that nized. America, but with special reference to his memory inspire the Members of f Jewish Americans, is of great signifi- this august body, the U.S. Senate, to cance to me because both of my par- find within their hearts an echo of his SCHEDULE ents came from foreign lands to the nobility of spirit, selfless devotion, and Mr. ROBERTS. Mr. President, today United States and were pleased and compassion for all in need, to dem- the Senate will be in a period of morn- honored to pledge their allegiance to onstrate for all to see that beneath the ing business until 12:30 p.m. with Sen- the United States of America. outer veneer of our Nation’s bureauc- ator MOYNIHAN, or his designee, in con- My father left a shtetl, a small com- racy beats a warm heart in which the trol of the time between 10:30 a.m. and munity, Batchkurina, in Ukraine, to anguished cry of the depressed, the de- 11, Senator GRAMS, or his designee, in come to the United States in 1911 at prived, and the disadvantaged strikes a control of the time between 11 o’clock the age of 18, barely a ruble in his responsive chord. in the morning and 12 noon, and Sen- pocket, literally walked across Europe, Give us the understanding, O God, to ator SPECTER, or his designee, in con- took steerage in the bottom of a boat grasp the true import of the sacred ob- trol of the time between 12 noon and to come to America to seek his for- ligation we have, to open our hearts 12:30. Following morning business, the tune, as did my mother who came with and hands to bring the bounties of life Senate will stand in recess until 2:15 her parents when she was 5 years old in to every man, woman, and child in our p.m. so the weekly party conferences 1905 from a small town on the Russian- midst. can meet. Polish border. They settled in America. O Father in heaven, bless this distin- When the Senate reconvenes at 2:15, They raised their family in America. guished assemblage of people deter- there will be an additional 2 hours of My father fought in the American Ex- mined to work effectively and tire- morning business equally divided be- peditionary Force to help make the

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

S7757

. S7758 CONGRESSIONAL RECORD — SENATE June 29, 1999 world safe for democracy and, in his al- fering under the terrible injustices of I am delighted and personally privi- legiance to his new-found country, rose Hitler’s regime, and he helped many to leged to have the opportunity from this to the rank of buck private. Next to his escape to gain refuge here in the podium, in this body, to extend my family, the greatest honor he had was United States of America. condolences again to Rabbi Sherer’s serving in the U.S. Army. Not only was Rabbi Sherer a man of wife, children, grandchildren, and great Freedom of religion is fundamental action, but he was a man of persist- grandchildren, and to recommend his Americana, and the Rabbi’s prayer ence. He followed through. When the stature, his principle, his integrity, his today brings it home to us. And I want- war ended, he didn’t forget about the persistence, and his activism as models ed to express my own views of thanks brothers and sisters who still remained to all Americans. for this country, what it has done for in the ruins of Europe. Under his lead- I thank the Senator from New York my parents and what it has done for ership, Agudath Israel shipped food and for according me this time and this my brother, two sisters and me, and religious articles to Jews in displaced privilege. my sons and our granddaughters. persons camps and he helped those who I yield the floor. I thank the Chair, I thank Senator wanted to emigrate. Mr. MOYNIHAN. Mr. President, we MOYNIHAN, and yield the floor. Rabbi Sherer’s story, as we all know, thank the Senator from Missouri for The PRESIDING OFFICER (Mr. ROB- continues in this same line and his phi- his moving, eloquent tribute. ERTS). The distinguished Senator from losophy of activism and persistence I yield such time as he may require New York is recognized. guided Agudath Israel in America for to my eminent friend, the Senator Mr. MOYNIHAN. Mr. President, I be- decades. He fought on behalf of Jews from Connecticut. Mr. LIEBERMAN. I thank my friend lieve Senator ASHCROFT would like to endangered behind the Iron Curtain, and colleague from New York. I thank speak at this moment. those who were endangered in Syria, The PRESIDING OFFICER. The Sen- Senator LOTT for agreeing to set aside Iran, and anywhere in the world where ator from Missouri. this time this morning to honor the he saw that injustice was an imposi- Mr. ASHCROFT. Mr. President, I memory of Rabbi Moshe Sherer. I tion upon the liberties of individuals thank the Senator for accommodating thank Senator MOYNIHAN for providing me from the time reserved for his con- and discrimination that deprived indi- the dignity that is always his but the trol. viduals of their opportunity to reach intimacy that reflects the relationship I am glad for the opportunity to the potential that God placed within. he had with Rabbi Moshe Sherer. I He brought this attitude with him as stand in the Senate today to honor thank my friend and college classmate he ascended to the presidency of Rabbi Morris Sherer, who passed away from Missouri who just spoke so im- on May 17 last year. Today, I believe Agudath Israel of America in 1963 and pressively about this extraordinary the very best way to pay tribute to to the chairmanship of Agudath Israel man. Rabbi Sherer’s memory is to celebrate World Organization in 1980. I am honored to have known Rabbi his inspiring accomplishments. In all of these roles, Rabbi Sherer Moshe Sherer, a blessed memory. I met When Rabbi Sherer became the exec- demonstrated the unique talent, him after I became a Senator and bene- utive vice president of Agudath Israel unique character that provided him fited, as anyone did, from the oppor- in America in 1941, the organization with the capacity to unite people from tunity to be in his presence, from his was but a small group with but a few disparate backgrounds and interests. wisdom, insights—insights not just on members. Rabbi Sherer transformed While this was partially a result of his matters of faith but on matters of the Agudath Israel from the small organi- contagious warm personality and cha- broader community. zation that it was in 1941 to a respected risma, there was something deeper, This was a man of extraordinary per- and influential force in the culture and too. People knew him as a man of in- sonal dignity and discipline, of hard community we call America in both tegrity. This was rare ore, precious work and of very good humor. He was a our political and religious life. metal to be mined out of the character pleasure to be with. Rabbi Sherer’s success came pri- of this great leader. Though they The life we celebrate today was a marily from two strong leadership might have disagreed adamantly with most extraordinary and consequential characteristics or character traits for his views, they had to respect the pu- life, based on values that go back thou- which he was most respected. One was rity of his position, his sincerity and sands of years, motivated by a single that he was not one just to talk about his honesty. overriding towering motivation to something. He would do something. He This loyalty and integrity often honor God’s name, to perform acts of was an activist. Second, he knew get- placed him at odds with or at other Kiddish Hashem, the sanctification of ting something done required more times in alliances with unlikely God’s name. That is to say, to do good than just activism or motivation or in- groups. This, however, was Rabbi works, to be true to the values that are spiration. It required persistence. He Sherer’s great charm. This is why he set down in the Bible, in the Ten Com- could stay with a task until there was was so highly respected. He was loyal mandments, in the broadly held ethical an achievement. and passionate about ideas and truth, system that we call the Judeo-Chris- One often cited example of Rabbi never letting political maneuvering get tian tradition. Sherer’s activism occurred almost im- in the way of his ultimate mission. Rabbi Moshe Sherer did that, mag- mediately after he became a part of the I am pleased to be on the Senate nificently rising to become, as we end leadership of Agudath Israel. During floor to honor Rabbi Sherer’s memory. this century, clearly one of the great Hitler’s reign of terror, when all too He taught us that in the face of injus- leaders of the Orthodox Jewish commu- many here and around the world re- tice we must act; in the face of failure, nity in America in this century, one of mained silent about the unspeakable we must persist. the great leaders of any faith-based atrocities committed against the Jews When the battle is over, he taught us community in America during this cen- in Eastern Europe, Rabbi Sherer spoke there is still a war to fight: to continue tury. and insisted that action was necessary. to bind up those who had been injured, Those who have spoken before me While Rabbi Sherer attempted to get those who had been separated, and have spoken of the extraordinary others involved in his efforts, he al- those who had suffered. record of service and growth that ways understood that he must take the Finally, he taught us that there is a Rabbi Sherer gave. I spoke to him sev- initiative and lead, and whether others way to achieve success and ultimately eral times about his involvement in would be involved or not was not the respect. It is not by trying to appease 1943 when he was asked to take a posi- criterion for his own involvement. He all sides but by standing firm in one’s tion at this organization, Agudath of knew that real leadership required the convictions and holding fast to one’s Israel. He spoke to friends and they ability and willingness to stand alone. beliefs. told him he would be foolish to even He knew he could not simply wait for That is the legacy of Rabbi Moshe consider it. This was an organization someone else to do what he believed Sherer. That is what he passed on to that had little credibility, few mem- should be done. Agudath Israel and to all here today bers. In fact, it was at a time when With his still tiny organization, he who respect his wondrous accomplish- even within the American Jewish com- sent shipments of food to Jews suf- ment and his faith. munity there were predictions that the June 29, 1999 CONGRESSIONAL RECORD — SENATE S7759 Orthodox community would not go working again with other groups to guide me regularly on political and with much vibrancy into the future. support across religious lines com- moral events. He is missed by myself, Somebody actually referred to the Or- monly held principles, even when they and my wife and my family, as he is by thodox community generally as a were controversial. millions of others. ‘‘sickly weed.’’ The resilience and On the day that Rabbi Sherer was Rabbi Sherer did so many good feistiness of this man and his commit- buried and his funeral occurred, there things. Senator LIEBERMAN spoke ment to the values that were the foun- was a remarkable outpouring in New about how he gave great strength to dation of his faith propelled him in the York to pay tribute to him. More than the orthodox community which had face of those pieces of wise counsel to 20,000 people stood outside the syna- been through one of the worst periods go forward and prove them wrong. And gogue where the service was held. They of history ever inflicted on any people, did he ever do that, devoting the rest of lined the streets to pay final honor to and they came to America. What Rabbi his life to this organization, particu- Rabbi Moshe Sherer. It was heartfelt, Sherer did more than anything else larly in the context of the end of the it was emotional, and it was also an ex- was show them that they could live by Second World War, and the great suf- pression of gratitude to all he had Torah values, and the values of teach- fering that occurred to so many suf- meant to the organization, to them ing, as well as by American values—in fering Jews in Europe during the war— personally, to their children, to the in- fact, that the two strengthened each watching the growth of this organiza- stitutions from which they had bene- other; that the values we have learned tion as a reaction, a kind of affirma- fited, and to their sense of freedom and in the Torah, the Bible, and our teach- tion of faith and life after the tem- confidence being religious people in the ings, the Talmud, which was mentioned porary victories of death and antifaith, America context. And now, as we are by Senator LIEBERMAN, would make if I can put it that way, and anti-God taught the way to continue to honor people better Americans; and the val- certainly during the Second World his memory is to live by the principles ues that America allowed us to grow War. that guided his own life, we are taught in, no matter who you were, or where This organization rose out of that ex- that when a person dies and leaves this you came from, if you worked hard, perience, and enjoyed the extraor- Earth and their soul ascends to heaven you could achieve something for you dinary, unprecedented liberty that that they are in that sense unable to do and your family, were consonant with Torah values. America provided to this community, more to elevate themselves, that it is What Rabbi Sherer did through the becoming the great, strong organiza- up to those of us who survive them tion it is today. It is as Rabbi Sherer guide of Israel, aside from the way he here on Earth to try to do deeds that touched all of our lives, is that he passed away with thousands of mem- are good in their name, if you will, to bers in this country and all over the helped my State of New York and our be of support and strength to them. great country grow, because today world in an extraordinary array of reli- I think that is the work that has con- gious, social service, and communal ac- there are hundreds of thousands— tinued in the organization and in the maybe millions—in America who fol- tivities. It is a remarkable program of lives of the individuals and all of us study. low Rabbi Sherer and who follow what who were touched by Rabbi Moshe he taught. They are living the ways I don’t know if anyone else has spo- Sherer. ken of what is called the ‘‘daf yomi’’ that have been lived by our ancestors I join my colleagues to pay tribute to for thousands of years—the way of program, a page-a-day of Talmud study him, and to those who continue the done under the auspices of Agudath Torah, the way of life. But at the same strong and important work for the time, they are building this country by Israel. It takes 71⁄2 years to finish the good of Israel, and to offer condolences the American values consonant with Talmud—a compilation of Jewish lit- to his wife, to his children, to his erature attempting to interpret the Torah values of hard work and dedica- grandchildren, and to his great grand- tion. And as they build and work hard values and the specifics of the Torah, children. the Bible. On the last completion of to help themselves and their families, May God come forth and give them they help America grow; they start that cycle, which occurred in Sep- the strength—as I know He will—to tember of 1997, if I am correct, 70,000 companies; they work in other compa- carry on the extraordinary good work nies; they teach. people gathered, filling Madison that characterizes the life and times of Square Garden in New York, Chaplain So Rabbi Sherer’s loss has been a loss a great Jewish American, Rabbi Moshe for us who know him and knew him and Ogilvie. It reminds me in some sense of Sherer. miss him. It has been a loss for the the Promise Keepers or groups of other I thank the Chair. Jewish community in America—one of faiths coming together to do some of I yield the floor. our greatest leaders who taught us the work you have done with Reverend The PRESIDING OFFICER. The Sen- about education and who taught us Graham, and others—70,000 people, first ator from New York. that living a life of Torah values and filling Madison Square Garden, and Mr. MOYNIHAN. Mr. President, I being proud Americans is totally con- then in the halls and chambers all over thank the Senator from Connecticut sistent. So it is also a great loss for America and all over the world on one for his beautiful words. America because America has always night to celebrate what is called the A My dear friend and colleague, the 1 depended on and relished in the glory Siyum, the completion of the 7 ⁄2 year Senator from New York, has asked to of lives such as that of Rabbi Moshe day-by-day trek through this experi- speak, and I yield him 3 minutes, if we Sherer. ence, a remarkable achievement, and a may, of the time that is beginning to So I join with my colleagues, my commitment to live by the values that run out. Also, the distinguished major- friends in the gallery, in remembering were part of that organization and that ity leader has come on the floor. him, remembering his life and his good experience. The PRESIDING OFFICER. The Sen- deeds, and knowing that, as a Jew and Rabbi Sherer, it has probably been ator is recognized. as a New Yorker and as an American, I said here—and I will say it briefly—not Mr. SCHUMER. Mr. President, I am proud to stand before my col- only built the inner strength of the thank my colleague, Senator MOY- leagues and before all of our country American Orthodox Jewish community NIHAN. and say words of praise in memory, in through study, through social service, I, too, want to join my friends, Sen- blessed memory, of Rabbi Moshe through communal strength, but was a ator MOYNIHAN, Senator LIEBERMAN, Sherer. remarkable ambassador to the broader Senator LOTT, Senator ASHCROFT, and The PRESIDING OFFICER. The community of faith-based organiza- others in honoring the memory—the Chair recognizes the Senator from New tions working with people of other blessed memory—of Rabbi Moshe York. faiths, and then reaching out into the Sherer, who is truly one of the great Mr. MOYNIHAN. Mr. President, community, and particularly the polit- heroes of the Jewish community and of might I add I am proud of the warm ical community during his time in re- all of America in the second half of the and insightful remarks of my junior cent years. He opened an office here in 20th century. colleague. I thank him. Washington, a kind of government re- I am proud to have called him a I see the eminent majority leader is lations office for the good of Israel— friend as well as a mentor. He would on the floor. Through his courtesy, this S7760 CONGRESSIONAL RECORD — SENATE June 29, 1999 time has been made available. I wish We thank him for that, as we thank merous federal laws—like the Elemen- him to take whatever time he requires. the men and women of Agudath Israel tary and Secondary Education Act of The PRESIDING OFFICER. The for their continuing commitment to 1965—and State laws that, to the full Chair recognizes the majority leader. defend their faith and advance the hu- extent constitutionally permissible, Mr. LOTT. Mr. President, I extend mane vision of Rabbi Morris Sherer. children in non-public schools were en- my appreciation to the distinguished I yield the floor. titled to governmental benefits and senior Senator from New York. It is al- The PRESIDING OFFICER. The services on an equitable basis with the ways a pleasure to work with him. I Chair recognizes the Senator from New public school counterparts. In 1972, his thought it was appropriate we have York. efforts on behalf of education led to his this time this morning to pay tribute Mr. MOYNIHAN. Mr. President, our being named national chairman of a to this great man. time has expired. Might I ask for 1 con- multi-faith coalition of leaders rep- Mr. President. today, along with cluding minute? resenting the 5 million non-public other Senators from both sides of the The PRESIDING OFFICER. Without school children in the United States. aisle, I note the first anniversary of the objection, it is so ordered. On the day of his funeral last year I death of Rabbi Morris Sherer, the long- Mr. MOYNIHAN. I thank the major- took the Senate floor to declare that: time president of Agudath Israel of ity leader for his fine, perceptive re- World Jewry has lost one of its wisest America. marks and for making this occasion statesman. America Orthodoxy has lost a This is a sad memorial, in that the possible. primary architect of its remarkable postwar nation has lost his ethical leadership It is a little over a year since the resurgence. All New Yorkers have lost a man and his commitment to justice and re- passing of Rabbi Moshe Sherer, one of of rare spiritual gifts and exceptional cre- ligious liberty. But this should also be American Jewry’s most distinguished ative vision. a celebratory observance, to honor the communal leaders. Rabbi Sherer was Rabbi Sherer passed away only hours memory of a man who, while treas- the president of Agudath Israel of before the President of the Senate, uring the past, always looked forward. America for over 30 years and served as Vice President AL GORE, addressed Rabbi Sherer was a living example of a reasoned, wise voice whose counsel Agudath Israel’s 76th anniversary din- President Reagan’s favorite saying: was widely respected in the Yeshivot of ner in New York. He spoke for the Sen- there’s no limit to what you can ac- his beloved Brooklyn and the halls of ate and for all Americans when he eu- complish when you don’t care who gets government in lower Manhattan, Al- logized the Rabbi as ‘‘a remarkable the credit for it. But today, we rightly bany, Jerusalem, and here in Wash- force for the understanding and respect give him credit for a lifetime of good ington. and growth of Orthodox Jewry over the works on behalf of this people, his I first met Rabbi Sherer in the early past fifty years,’’ whose ‘‘contributions faith, and his country. days of the Kennedy administration More than a half-century ago, in the to spreading religious freedom and un- when he came to Washington on behalf worst of times for European Jewry, he derstanding have been truly indispen- of Agudath Israel. I quickly learned to put Agudath Israel in the forefront of sable in defending and expanding those admire his sagacity and rely on his in- assisting the persecuted and saving the same rights for all Americans in all sightful counsel and abiding integrity. hunted. And with the defeat of Nazism, faiths.’’ For over 35 years he was a treasured his organization pitched in to help ref- I know I speak for the entire Senate mentor and a trusted friend. ugees and immigrants. when I express my condolences to his Here at home, he took a small orga- Rabbi Sherer’s earliest work on be- widow Deborah, his loving children Ra- nization that seemed to be on the side- half of the Jewish community was the chel Langer and Elky Goldschmidt, lines of American life and transformed grassroots, and largely illegal, organi- who join us today in the visitor’s gal- it into an active, weighty, influential zation and transport of food shipments lery, and his son Rabbi Shimshon factor in the mainstream of national to starving Jews in Nazi-occupied East- Sherer whose inspiring prayer opened affairs. ern Europe in 1941. His efforts also pro- this morning’s Senate session. He was not reluctant to apply the duced affidavits for European Jewish ‘‘There were giants in the Earth in value of his faith of public policy. Be- refugees that helped them immigrate those days,’’ the book of Genesis teach- cause religious education was at the to the United States. es. Rabbi Noshe Sherer was a giant in very core of his community’s life, he After the end of World War II, he and our midst, whose counsel and wisdom fought for equitable treatment of stu- Agudath Israel continued to assist Eu- will be missed by all of us who were dents in faith-based schools, whether ropean Jews—survivors interned in dis- privileged to enjoy his friendship. Christian academies or Orthodox placed person camps—with foodstuffs The PRESIDING OFFICER. Under schools. and religious items, and helped facili- the previous order, the time until 12 Because he understood that a culture tate the immigration and resettlement noon shall be under the control of the without values is a culture without a of Jewish refugees on these shores. In Senator from Minnesota, Mr. GRAMS, future, he foutht against the moral de- ensuring decades, Rabbi Sherer spear- or his designee. cline that has brought so much suf- headed Agudath Israel’s efforts on be- The Senator from Minnesota. fering and sorrow to our country in re- half of endangered Jews behind the f cent decades. Iron Curtain and in places like Syria and Iran. In 1991, years of clandestine TAX RELIEF FOR AMERICAN His concern to preserve and strength- FAMILIES en the Jewish religious heritage in activity on behalf of Soviet Jews cul- American did not prevent him from minated in his establishment of an of- Mr. GRAMS. Mr. President, we want- working with those outside his own fice in Moscow to coordinate Agudath ed to take a little time this morning to community who shared his principles. Israel’s activities in Russia. Under his again talk about what I consider the We need to have more of that in Amer- leadership, Agudath Israel also played overtaxation of the average working ica, not less. an important role in providing social family in the United States. The tax In matters of public policy, it is easy welfare and educational assistance to burden is getting larger and larger to win applause, but it is even harder Israel Jews, and in advocating for every day and every year. In fact, to win true respect. Israel’s security needs. under this administration it has grown Rabbi Sherer sidestepped the ap- Ignoring the pessimistic predictions by about 50 percent in just the last 6 plause and earned the respect that about Orthodox Jewry made by sociolo- years. To sum up some of these things today brings members of the Senate of gists and demographic experts in the we do have a number of other speakers the United States to pay tribute to his 40s and 50s, Rabbi Sherer went on to who will come down this morning and memory. help engineer a remarkable change in join us and lay out some of the facts I know he would be especially pleased the scope, image and influence of the and figures on the current tax status in by this observance, not because we are American Orthodox Jewish world. A the United States. here praising him, but because his son, staunch advocate of Jewish religious Next Sunday our Nation will cele- Rabbi Shimshon Sherer, is serving education as a early as the 1960s, he brate the Fourth of July. Millions of today as our guest Chaplain. helped establish the principle in nu- Americans and their families and June 29, 1999 CONGRESSIONAL RECORD — SENATE S7761 friends will gather to raise the national goes further by including taxes, regula- Taxes are far and away the biggest portion flag, parade in their hometown, grill in tions, and total government spending. of our family budget. their backyard, or drive to the beach This year Cost of Government Day ar- Susie would love to put more dollars for a relaxing vacation. rived on June 22. into their retirement account, would The Fourth of July is always a truly The total cost of government in 1999 love to buy more books for their three great American holiday. is estimated at $3.72 trillion, that is up children, or put more money in their As we observe this special occasion, I from $3.56 trillion in 1998. college fund or spend more money for rise to remind the American people of This is a 4.5-percent increase overall, other family priorities, but she cannot why we celebrate the Fourth of July, and that is almost double the rate of because much of the fruit of their labor Independence Day, and to call upon inflation. The cost of Government reg- is again taken by the Government. Congress and the President to take im- ulation alone will cost taxpayers over Ask John Batey of Tennessee about mediate action to provide meaningful $1.06 trillion in 1999. Again, our Demo- the death tax. John runs a 500-acre tax relief for all overtaxed Americans. cratic colleagues and President Clinton family farm that has been part of the This great Nation was born out of a do not believe this rapidly growing tax Batey family for 192 years. John has tax revolt. The revolt was not because burden is excessive, and they have re- spent all of his life on his family farm of Founding Fathers were selfish but peatedly denied tax cuts to Americans. and, like most other farmers, he plans because they did not want to be shack- Let’s take a look at another indi- to be a good steward of the land, save led under more government regula- cator. Over the course of President and build his assets, and someday try tions, bureaucracy, taxing powers, and Clinton’s administration, Washington’s to leave his farm to his children. unjust legislation of their homeland. income has grown faster than our econ- After the death of his father 5 years They did not want to send their hard- omy and has grown twice as fast than ago and the death of his mother last earned money to the Parliament in the income of the average American. In June, John began to settle his parents’ England that furthered their own spe- fact, Federal taxes have grown by over estate. As he was about to take over cial interests in order to keep them- 54 percent during this administration. the family farm, the IRS sent a death selves in power. That is nearly $4,000 per year more per tax bill for a quarter of a million dol- This tax revolt was about freedom person. The income tax rates also indi- lars. The land value of the farm in- and liberty, about a person being able cate Americans are overtaxed. creased significantly, but the death tax to own himself, his labor, and the The average tax rate for the 437,036 has never been indexed. John had no fruits of his labor. This is the simple individual returns filed for 1916 was 2.75 choice but to sell some of his assets, moral origin of our Nation. percent. Again, the average tax rate for dip into their lifelong savings, and even Our Founding Fathers understood nearly the half million Americans who borrow some money to pay Uncle Sam. well that low taxes and freedom were filed returns in 1916 was just 2.75 per- The Federal death tax was originally directly related. They did their best to cent of income. Under President levied to pay for the war in 1916 to help ensure that the American people con- Reagan, we had only two income tax fund the efforts of World War I, and es- tinued to enjoy their freedom. rates: 15 percent and 28 percent. But tates under $9 million were not taxed Unfortunately, this freedom that our today, there are now five tax rates, and at that time. But it later evolved into Founding Fathers treasured so much Americans can be taxed as high as 40 a mechanism, of course, with a redis- and that triggered our Nation’s inde- percent in Federal taxes. tribution of private income. pendence has been eroded. In the past few years, over 20 million Just like the Batey family, millions Today, Americans are overtaxed. The American workers earning between of American farmers and small tax burden on working Americans is $30,000 to $50,000 have been pushed from businessowners are faced with paying more crushing than ever. In 1913, less the 15-percent income tax bracket to high taxes or, in fact, losing their than 1 percent of all Americans paid in- the 28-percent income tax bracket due farms and businesses to pay the death come tax. Only 5 percent of Americans to the unfair tax systems we have. On tax. Unfortunately, again, my Demo- paid any income tax as late as 1939, be- top of that, they have to also pay a cratic colleagues insist that a cut in fore World War II. 15.3-percent payroll tax. Federal taxes the death tax is a tax cut for the rich, Today, the Federal tax burden is at a alone account for the loss of 43 percent and they can hardly justify a costly historic high. Federal taxes consume of the income for those middle-income tax cut that benefits some of the nearly 21 percent of national income. A Americans who have worked hard just wealthiest taxpayers. typical American family pays $9,450 in to try to get ahead. Ask janitor Joe of Virginia about the Federal income tax per year. The President and the Democrats al- capital gains tax. Over the last 30 A median-income family can expect ways like to tell middle-income Ameri- years, Joe saved every penny of his in- to pay nearly 40 percent of its income cans that, of course, they are only out come he could possibly save after pay- in Federal, State, and local taxes— there taxing the rich while they stick ing Federal, State, and local taxes. He more than it spends on food, clothing, their hands deeper and deeper into the took the risk, and he invested his sav- and housing combined. pockets of average Americans. They ings smartly in the market. He was ex- But our Democratic colleagues and use class warfare as a cover to tax all cited as he watched his savings grow President Clinton do not believe this Americans at a higher and higher rate. into $1/2 million in assets. That excite- rapidly growing tax burden is excessive The rapidly growing tax burdens hurt ment soon turned into torment upon and have preferred new spending to tax low-income and minimum wage work- retirement when he began to withdraw cuts. ers as well. They may not pay income the funds. The Government took nearly One of the best indicators of how ex- tax, but they still have to pay the pay- one-third of those hard-earned savings hausting the tax burden has become is roll tax. As low-income and minimum for capital gains taxes. the annual arrival of Tax Freedom wage workers work harder and earn Or you could ask newly wedded Day, the day on which Americans stop more, their payroll tax increases, again Alicia Jones of my home State of Min- working just to pay their State, Fed- taking a huge bite into hard-earned nesota about the marriage penalty. eral, and local taxes and actually begin dollars that are most needed to keep Alicia and her husband graduated from keeping their earnings for themselves. those families above the poverty line. college and had just begun working full This year, Americans had to wait Once again, our Democratic colleagues time 2 years ago. In 1998, Alicia and her until May 11 before they marked Tax and the President do not believe this husband worked full time in profes- Freedom Day. At 132 days into the rapidly growing tax burden is excessive sional careers. They had no children year, it’s the latest arrival of Tax Free- and have repeatedly refused to support and were renting an apartment and dom Day ever. any tax cuts. trying to save to buy their first house. As a sign of just how far and fast Let’s ask the American people if they They had to pay at least an additional taxes have escalated, in 1950, Ameri- are overtaxed and want a tax refund on $1,400 under the marriage penalty tax cans marked Tax Freedom Day on their overpaid taxes. Let’s ask a full- in our Tax Code for simply being mar- April 3. time mom and former schoolteacher, ried. Cost of Government Day, a day cal- Susie Dutcher, about the overall tax As a result, on top of the over $10,000 culated by Americans for Tax Reform, burden. According to her: they already had deducted from their S7762 CONGRESSIONAL RECORD — SENATE June 29, 1999 checks to pay Federal taxes, they had choose to fly, 40 percent of that cost in place that would make sure Social to take an additional $700 out of their also will go to the Government. Security receipts have a new protec- limited savings account to pay for Fed- Staying at a hotel is not cheap ei- tion device. Hopefully, because the eral taxes, taxes that they would not ther, but did you know about 40 per- President has now said he supports it, have had to pay, by the way, if they cent of your bill goes to the Govern- the other side of the aisle will drop had not been married. ment in the form of taxes? their filibuster and we can get on with She wrote and said: If you decide to stay at home and our proposal to be more protective of I’m frustrated by this. I’m frustrated for have a simple barbecue to celebrate Social Security receipts. the future. How do we get ahead when each Independence Day, the Government Second, the President has said he year we have to take money out of our sav- will stay there as an uninvited guest, will now support tax relief. That is im- ings to pay more and more for our taxes? I and 43 percent of the cost of beer and 35 portant. But tax relief can have a lot of hope that you will remember my concern. percent of the cost of soda will go to definitions. Alicia’s story is not uncommon. taxes. The Government’s slice of your Our view of tax relief is that it There are 21 million American families pizza is about 38 percent, and taxes ac- should be across the board, that every- in this same situation. If these indi- count for 72 percent if you want to body should participate, and that the vidual stories are not convincing, let’s have a drink. Even 31 percent of what savings which families keep in their take another look at the polls. you pay for a loaf of bread is taxed. checking accounts be used for the deci- A recent Gallup-CNN-USA Today poll I think you get the idea of how much sions those families want to make: Do shows that over 65 percent of Ameri- of the price of the average products they need more health insurance? Do cans believe taxes are too high. Half of you will buy over this holiday weekend they need to pay school tuition? Do the American population think the tax is going to go to the Government in they have a leak in the roof? Do they system itself is not fair. A Fox News taxes. need a new car? poll indicates that 65 percent of Ameri- So in closing, I am encouraged by The President’s definition of tax re- cans believe that no more than 20 per- President Clinton’s announcement that lief is that you get it if you do some- cent of their income should go to Fed- the budget surplus will grow by an esti- thing he wants, for instances if you put eral, State, and local taxes. As I said, mated $1 trillion over the next 15 a solar panel on your roof or if you buy about an average of 40 percent today is years. This additional budget surplus, I an electric car, if you can find one. collected from Americans across the believe, makes tax relief even more That is behavioral relief. In other country. necessary and even more feasible. words, if you begin to live your life the An Associated Press poll also shows Even President Clinton is talking way we in Washington think you that the majority of Americans want about new possible tax relief for the should live it, you will get a break, but to use the non-Social Security surplus American people this year. I welcome we are not going to let you decide what that we are hearing so much about this the opportunity to work with the you ought to do. week for tax relief, not for more pet President to try to provide tax relief I would suggest that the tax relief spending programs by this administra- for all Americans—not to talk about it, proposal, which is growing in size, tion. not to be all show, but to make sure ought to be looked at very seriously. I The list goes on. There are a lot of that some tax reform is passed in tax will come to that in just a minute. But people around Congress, and especially relief. let’s just talk for a second or two about in the White House, who talk about tax Saving Social Security, reducing the why tax relief is so important to Amer- relief, but I believe it is all show. national debt, cutting taxes are imper- ican families. The message from the American peo- ative for our economic security and our First, as was said by the Senator ple is loud and clear: We are overtaxed, economic growth. Our strong economy from Minnesota, they are paying the we want meaningful tax relief, and we has offered us a historic opportunity to highest taxes they have paid since want and need tax reform. achieve this three-pronged goal. World War II, which, given the ex- I ask my fellow colleagues and the Republicans are committed to re- tended periods of general peace, is un- President to ponder a very funda- turning the non-Social Security sur- conscionable. mental question about taxation over plus to overtaxed Americans who are This year, American families will this holiday: Should our Government out there working hard and generating have a negative savings rate. That has tax working Americans’ income when it in the first place. We have reserved not happened since the Depression. If they first earn it? Should the Govern- nearly $800 billion of the non-Social Se- you read what several pundits in the ment be able to tax it again when they curity money for tax relief in our budg- country have written, they say it is be- save it, tax it again when they spend et, and we will provide meaningful tax cause American families are greedy. it, tax it again when they invest it, and relief for all Americans this year. Hogwash. What it is, the Government tax it yet again when they die? Thank you very much, Mr. President. has been taking more and more of what They talk about redoing taxes for I now yield the floor to my colleague they earn, and the disposable income, low income people because it takes a from Georgia, Senator COVERDELL, for the income they have left to use, is larger portion of disposable income. I up to 10 minutes. barely enough. In fact, in many cases it agree, but there is no excuse to tax The PRESIDING OFFICER. The is not enough to manage their families others even more to support larger and Chair recognizes the Senator from so there is nothing left to save, and larger spending plans. Georgia. they are not saving. To my fellow Americans, I invite you Mr. COVERDELL. Mr. President, That means those families cannot to think about our country’s origin first, I compliment the Senator from face off an emergency. If somebody over this Independence Day holiday. Minnesota for organizing and bringing loses a job or there is some loss of in- Take a closer look at your payroll this meeting together on the question come, the rent cannot get paid. If there stubs to see how much in taxes is of tax relief and for the powerful state- is an unexpected illness, an unexpected taken from your income, or just take a ment he just made in support of giving educational cost, an emergency, there few moments to examine the hidden relief to American workers so they can are no savings in America to deal with taxes on your holiday spending. You keep more of what they earn in their that. So you put a whole arena of anx- will be shocked to find out how much checking accounts rather than sending iety across the breadth of the land. tax you are actually paying. it off to bureaucrats—locally, in the I am not going to overdetail this be- Let me give a few examples. If you State, and federally. cause of the time we have, but I, Sen- drive the family car on vacation on the In the last few days, President Clin- ator TORRICELLI—it is bipartisan, bi- holiday, remember that 45 percent of ton has joined in calling for a strong partisan in the House, Republican and the cost of your car goes to taxes. Over lockbox to protect Social Security. I Democrat with leadership—Senator half of what you pay for a gallon of am pleased to see this. For the last LOTT, Senator GRAMM of Texas, the gasoline ends up going for taxes. Thir- month, we have been fighting a fili- chairman of the Banking Committee, ty-six percent of the cost of the tires buster from the other side of the aisle are all coauthors of a concept that on your car goes to taxes. And if you on this concept of setting a procedure takes the first tax bracket, which is 15 June 29, 1999 CONGRESSIONAL RECORD — SENATE S7763 percent, and increases dramatically the Mr. ASHCROFT. Thank you, Mr. This year, the average American will number of people who are in that min- President. have to work 173 days just to pay for imum tax bracket. I am delighted to commend the Sen- government. This includes the burdens So everybody would share equally. ator from Georgia for his outstanding of Federal taxes, State taxes, and local But the effect is that about 7 million remarks. He is right about giving peo- taxes. We pay more in taxes than at people would be pushed down into that ple a chance to spend their own money any other time in history. lowest tax bracket. Then the first $500 in the way they choose to spend it. Some people say: Well, there was a of interest that family earns from the So much of our so-called tax relief year or two in the Second World War. savings account would not be taxed. from time to time is given in ways that I dispute that. I don’t think they are That means about $100 billion over the try to coach people that they should counting local taxes as well. Some peo- next 10 years would be saved by those have it the way we want it done. Free- ple say: What does the Congress have families, and 30 million of those fami- dom is the ability to spend one’s own to do with local taxes? Very frankly, a lies would have no tax on their savings resources the way one particularly good bit of the load of taxes at the accounts. wants to spend them. So I am delighted State and local level is a result of Fed- So what we have is a plan that bene- with his remarks. eral mandates, the Federal Govern- fits 110 million taxpayers, 30 million of I rise today in support of Congress’ ment wanting to force things to be which would be saving tax free, 10 mil- plan to provide over $778 billion in tax done by government and the bureauc- lion of which would no longer pay cap- cuts over the next 10 years. The Presi- racy, not having the courage to charge ital gains tax, and 7 million middle-in- dent has already announced that the for it but just saying to the States: come taxpayers would be returned to budget surplus will be larger than ex- You must get this done. the lowest tax bracket. pected. This onbudget surplus is an- It is sort of similar to going in to But we do not tell them what to do other name for a tax overpayment. order something without paying for it. with their savings; they can figure that Talk about a budget surplus. It means We have done that at the Federal level. out. It isn’t designed to cause them to we are collecting more than we need. It is a shame, but it has happened. live in a loft or to use a solar panel or Having collected more than we need It is time for us to say that we need a windmill. It is designed to let them from the people who worked hard, the to allow some of the individuals who keep more of their income so they can least we could do would be to give it have built this great Nation to enjoy more effectively manage their families back to them. When you go into a busi- the fruits of their own labors. When we and their lives. ness and hand a $10 bill to the clerk for have overcollected, we have taken Incidentally, this is the only tax plan a $7 item, they don’t say: Well, we are more than we need. We have a surplus. that has been endorsed by the New going to increase your spending level. Let us give the folks the change back York Stock Exchange. It is right on We are going to throw in four extra instead of trying to force them to buy target, because pushing people into the pairs of shoelaces and a can of polish, if more bureaucracy, which they didn’t lowest tax bracket is helping them you are in a shoe store. They say: No, want, didn’t order, and don’t need. save, and it is simplifying the Tax here is your change. This is your They do need the capacity in families. Code. money. You have overpaid. According to a Congressional Re- I hope that every succeeding year we That is where we are. In the days search Service study, the surplus can take another million-plus tax- ahead, Congress will be deciding what means that the average household will payers and push them down into this to do. Are we going to try to find more be paying $5,000 more in taxes over the 15-percent tax bracket. One day we ways to spend the money the people next 10 years than the government might even get to the point that al- have earned or are we going to say our needs. Well, let’s just let the American most all Americans are there. faith is in families; we are going to people have some of that money back. So this is a time for tax relief. Amer- focus the resources of this country I want to go quickly to one of the icans are paying the highest taxes they where we have our faith, and that is in most important things we can do to have paid since World War II. They the private sector and in families? correct a serious error of our Tax Code. have no savings, and therefore they do That is what has made America great. For a long time, Members of this body not run their families as effectively as Or are we going to say our real faith have understood that our Tax Code pe- they could. We all know the results of is in bureaucracy; we are going to take nalizes people for being married. The that. So this is broad public policy that more of this money and fund bureauc- way the Tax Code is administered, needs the attention of the President racy? there is what is called a marriage pen- and the Congress. It is the right thing I think it is time for us to think alty for people who enter the durable, to do, and this is the right time to do about funding families, not funding bu- lasting relationship of marriage, which it. reaucracies; funding Main Street, not is the place where children learn and I yield back to the floor manager. funding Washington, DC. When we have where society and the social order, our Mr. GRAMS addressed the Chair. challenges in this country, I think all culture, renews itself—in durable, last- The PRESIDING OFFICER. The Sen- of us know they aren’t going to be ing, committed marriages. They get ator from Minnesota. solved by government. As terrible as taxed more heavily, very frequently, Mr. GRAMS. I thank the Senator Littleton, CO, was and is, the real chal- than if they were not married. That is from Georgia for his remarks this lenge is a cultural challenge. called the marriage penalty. morning. Also, I thank him for all his We need strong families with the I may not be one for lots of little nu- hard work during this and previous right values. We don’t need stronger ances in the Tax Code, but it is time Congresses to make sure that Amer- government bureaucracies. If bureauc- for us to take this massive prejudice ican families will be allowed to keep a racies could have solved the Littleton out of the Tax Code that charges peo- little bit more of their hard-earned situation and many other challenges, ple elevated rates because they are money, that less of it will come to we would have expected to have no doing the thing government most Washington, and that they will have a challenges by now because we have needs. If government is to promote little bit more control over how they great bureaucracies. We have more bu- safety and the stability of the commu- spend it and what they spend it on. I reaucracy in America than ever before, nity so people can reach the potential appreciate it and thank him for all his but we have greater problems. that God has placed within them—and efforts and work. Instead of the high tax load that that is what I think government is I also recognize this morning the really almost forces the second parent for—the family does that more effec- Senator from Missouri, Mr. ASHCROFT, to be in the workforce, maybe we ought tively and in concert with government who also has been a leader in the fight to think about allowing people to keep better than anybody else. If anything, against higher taxes and is working some of the money they earn so they marriage ought to be the subject of a very hard for tax relief. don’t have to have both parents work- subsidy, not the pernicious recipient of I yield 7 minutes to Senator ing and competing with the needs chil- a penalty that punishes people for ASHCROFT. dren have for the shaping, the nur- being married. The PRESIDING OFFICER. The Sen- turing, the developing, the teaching, I know KAY BAILEY HUTCHISON, the ator from Missouri. and the parenting that is so necessary. Senator from Texas, has focused for S7764 CONGRESSIONAL RECORD — SENATE June 29, 1999 years on this idea. I have been one who simple. The power to tax is the power grams, you love your children less. has stood up to say that we ought to to destroy. A tax diminishes freedom. That is an incorrect statement. It real- focus on this idea. If we have an oppor- It penalizes certain behavior, and it en- ly offends me, because what we are tunity to let people keep some of what courages other behavior. doing is taking that money from fami- they earn, let us stop punishing people I think we have to be honest with lies who love their children and who for the persistent, durable commitment ourselves. This great economy has done know their children’s names. Nobody of dedicated marriage that is funda- some wonderful things for America. We in Washington knows my children’s mental to the success of this society in are also finding that people are moving names or the names of children in Ala- the next century. That would be a tre- up in the tax brackets, higher and bama. They can’t possibly utilize re- mendous first step. higher tax brackets, meaning they are sources as effectively as the people who We all know that we are paying more paying a higher percentage of their in- love them and who are raising them. in taxes than ever before. We have come to the government each year. I really believe that was a nice step watched, as the tax burden has gone And the sad fact is that the total per- forward. But it was just one step. I am up, families struggle to meet their re- centage of the gross domestic product; proud that we accomplished that. It sponsibilities, moms and dads trying to that is, of all goods and services pro- took some effort. It looked as if it juggle how they can accommodate duced in America, is increasing. Ac- wasn’t going to happen, until finally their schedules and still raise a family. cording to the Federal Government’s the American people understood what Finally, the second parent goes into own statistics, in 1992, when this ad- was being talked about. They realized the workforce to make ends meet be- ministration took office, before the big that it was in fact possible to achieve cause government demands so substan- tax increase, we were sending 17.6 per- it, and the people started speaking. tially. cent of the gross domestic product to The Congress—some of those who ob- Let us give the American family the the Government. It will reach 20.7 this jected—got the message, and the Presi- kind of tax relief that allows families year or next year—a steady increase. dent got the message. He signed that to make America great again and to To say that tax decreases are going bill. So we are looking at a continual make their own decisions. It is with to destroy the Government and some- possibility of a surplus in the future. that in mind that I think one of the how result in a massive reduction in I am concerned that we are showing tremendous opportunities we have is funds to the Government is silly. The an unhealthy increase in the amount the opportunity to abolish the mar- year before last we rolled back one- taken by Government. I think it is riage penalty in the tax law. third of the 1993 huge tax increase that time to send some of that back to our I urge my colleagues, as we consider the administration pushed for. We people. We can make reform of Social our responsibilities, to relieve Amer- rolled that back and included within it Security, we can secure Medicare, and ican marriages of this pernicious pen- a $500 per child tax credit. I know the I am absolutely strongly committed to alty which punishes people for doing Senator from Wyoming, the Presiding the Social Security lockbox—to setting that which we all need. Officer, was a supporter of that, and aside our Social Security surplus so we I thank the Senator from Minnesota the Senator from Minnesota, was a big don’t spend it, and making sure it is and the Presiding Officer. supporter of that $500 per child tax there to allow us to strengthen and im- Mr. GRAMS. I thank the Senator credit. I made it one of my highest pri- prove Social Security. from Missouri for those words and, orities and worked extremely hard to That is the first step. If we spend the again, thank him for all his efforts on see that that became a reality. Social Security surplus by new and big- tax relief. They say: Well, you can’t afford a tax ger programs—there is always some I now recognize the Senator from cut. If you have a tax cut, we will in- new program that somebody has—we Alabama, Mr. SESSIONS, who also want- crease our deficit. That has not hap- are not going to have it to save Social ed to talk about it, for up to 10 min- pened. In fact, we are continuing to see Security. utes. surpluses accrue. Likewise, we have an opportunity The PRESIDING OFFICER. The Sen- But what I want to ask the American with a non-Social Security surplus— ator from Alabama. people to do is think about this: A fam- this $1 trillion, this $1,000 billion, that Mr. SESSIONS. I express my appre- ily with three children making $35,000 a will be ours in the next decade—to ciation for the excellent remarks deliv- year, or $45,000 a year, will now receive make a decision: Are we going to allow ered by the Senator from Missouri. He a tax credit—not a tax deduction but a the Government to grow and become and the Senator from Minnesota have $500 reduction in the amount of money more and more a dominating force in been champions of lowering the burden they have to pay in taxes to the Gov- our lives, or are we going to encourage of government on American people ernment for each of those children— families and freedom and prosperity? since they have been in this body. They $1,500. They will be getting those re- Just for example, I support and am are known for that. They have given funds this spring. Many have already working very hard on a program I call time and effort and passion to it. I received those refunds—$1,500 for a ‘‘The Class Act.’’ Most States—42 really was inspired by the remarks of family. That is $120 per month tax free States now—have a plan called a pre- the Senator from Missouri. I appreciate for a family to use for things. paid college tuition plan where you can them very much. If there is somebody struggling buy into college tuition, invest your We are in a time of surplus. We have today, as the Senator from Missouri money into it as your children grow, so time to make some decisions about noted, it is working families. It is ex- much a month, how you choose, and what we are going to do with that sur- pensive. They will have $120 a month to when your child gets to the age to go plus. The President’s own Office of buy shoes with, or maybe a new set of to college, it can be paid for. Management and Budget midyear re- tires for the car, or maybe money so We found that the Federal Govern- view now indicates that we will have, the child can go on a school trip that ment taxes all the interest that ac- over 10 years, a $1 trillion surplus out- they would like for them to go on but crues on that money. The Federal Gov- side of Social Security available to us. are wondering how they are going to ernment is taxing and penalizing fami- I suggest we have to consider allow- pay for it. They will get it every lies who are doing the right thing by ing working Americans to keep more of month, because this Congress said, no, saving for their children’s college edu- what they earn. That is clearly a pol- we are not going to keep taking this cation at the same time that we are icy that will nurture freedom. The money from the families; we are going providing tax breaks, interest rate more money we take from individuals, to allow you to keep it and use it as breaks, and interest deferred payments the more we take from families, the you see fit. to people who borrow for college. As a more we shift it to a burdensome bu- Who cares more about children than result, we have found that borrowing in reaucracy in Washington, the more we a mother who cares about her children? the last decade has tripled—three diminish their freedom, their power Who can best decide what they need times what it was in the previous dec- vis-a-vis the government. The govern- than the family? ade. And savings are down. ment is strengthened. The individual It is a myth that if you do not vote Good government policy calls on us and family is weakened. It is just that for more and more and bigger pro- and demands of us that we encourage June 29, 1999 CONGRESSIONAL RECORD — SENATE S7765 the highest and best qualities in peo- As long as I have been in this body— the 15-percent tax bracket in order to ple. Taxing and penalizing people who I have not been in it that long; I am in help ‘‘flatten″ the tax structure and save, and at the same time subsidizing my third year—I have known that Sen- provide the American people with tax people who borrow, which we need to ator GRAMS has been really working on relief. An expansion of the 15-percent do—people need to be helped in bor- the issue of tax cuts. He has pushed tax bracket has another desirous effect rowing to go to college; we are not forward. He has prodded people on it. of alleviating the impact of the mar- eliminating any of those programs—is He has done a beautiful job of getting riage penalty. Currently, nearly 21 mil- wrongheaded. It is not encouraging our us to the point of people saying let’s lion families are forced to carry an av- highest and best instinct as a people. have a tax cut, a serious tax cut, not erage of $1,400 more a year in taxes We are different from the rest of the one where we just issue a bunch of simply for being married. We must world. This was never a government- press releases and the press releases bring this institutionalized discrimina- dominated country. It has never been cost more than the tax cut but a real tion against the family to an end. Now run by a king. It has never been run by tax cut that stimulates the economy is the time to do that. a totalitarian Communist dictator. It and helps people. We could also take steps to encour- is made up of millions of independent, I am delighted the President is now age savings and investment by cutting free Americans who respect themselves apparently willing to work with the the capital gains tax rate, which could and their communities and care about Congress in order to provide the Amer- stimulate the economy and give back themselves and their communities. ican people with the tax cut they need further revenues to the Federal Gov- We don’t believe the Government and deserve. Part of the reason the ernment. Americans need a higher rate ought to do everything for us. People President is now willing to consider a of national savings to continue to grow are prepared in this country, as a part tax cut is the strength of the American into the next century. Cutting capital of our very character as a people, to economy, which is precisely one of the gains tax rates will help. We can look take care of themselves whenever they reasons we should consider a tax cut at at the possibility of further reductions can. But if the Government continues this time. We are at this point of a in the death tax area. I think we need to take more of their wealth and take budget surplus because of some fiscal to do this, particularly for small busi- more of the money they earn every discipline in Washington but mostly nesses and family farmers who fre- month, making it more and more dif- because of the strength of our econ- quently spend a lot of time reorga- ficult for them to meet their respon- omy. We need to keep that economy nizing their business, creating trusts sibilities, then they tend to look to going and growing strong. That is the and other corporations to get around Government to fund them. key to having budget surpluses in the paying death taxes that would have the That is not a good trend for us. This future—a strong economy. We can help impact of killing their business, or of is basic. This represents a basic divide with tax cuts. killing their farm, and not allowing The bottom line, as has been men- in this Senate and right down the hall them to pass it on to the next genera- tioned before, is that growth works. in the Congress between people whose tion. We need to do those things. visions differ about the nature of our When we have growth, we have more I congratulate the Senator from Min- resources to pay down the debt, to do country. nesota for his work on this tax-cutting the programs needed for the American I say let’s celebrate our character of agenda and getting the President to individualism, personal responsibility, public, and now to cut taxes. If we are going to continue to experi- agree that we can and should do a tax personal integrity, good financial man- ence a growing economy, we need to cut. For the President to say he isn’t agement, and frugality. Let’s encour- take steps to enhance and sustain our opposed to a tax cut is a positive step. age savings and not tax people’s money current record of economic expansion Now it is time for the President to deal who save. in order to pave the way for the next with the Congress in providing real tax I think it is time for us as a nation to century. We need another ‘‘American relief to the American public. It stimu- think about this. We dare not get into century.’’ Providing the American peo- lates the economy, it keeps us growing, a big spending program. We do not dare ple with broad-based progrowth tax re- and it supports the American public. start taxing and spending again. We lief is one of the ways to help achieve I yield the floor. Mr. GRAMS. Mr. President, I thank have an opportunity for a historic time it. for America. I am proud to join with In America there is an emerging the Senator from Kansas for his efforts the Senator from Minnesota in pro- class of investors who are more aware in discussing the importance of contin- moting it. of what tax policy means for individ- ued work in reducing the tax burden Mr. GRAMS. Mr. President, I thank uals and for the ability of our economy for average Americans. the Senator very much. I appreciate to perform. This class of investors is The bottom line is that we are over- the words and all of the efforts of the citizens who have been able to take taxed today. The average family today Senator from Alabama. He is talking part in the American dream through spends about 40 percent of everything about the President announcing that a 401(k) programs and expanded IRAs they make on taxes. Compare that to tax cut is possible. He is agreeing with that have been offered as part of a re- 1916 when the taxes began; it was less us that tax cuts are important. tirement package or encouraged than a 3-percent tax burden on those I think we have to be very careful be- through our Tax Code. They are not paying taxes at that time, which was cause I think it would be a bad deal for wealthy—- not yet anyway—but they only about 5 percent of the American the American people if we got a little are increasingly concerned about our people. Today over 40 percent of a fam- bit of a tax cut but it came at the cost Tax Code and what it means to them. ily’s income goes into taxes. of huge increases in spending. We don’t We need to work with the family When we talk about tax relief, we are want that type of a tradeoff. We want farmers, cab drivers, construction talking about giving back money that to make sure that tax relief means tax workers, and small businessmen to has been overcharged—in other words, relief and not just some token tax re- allow them to participate in this free the excess money, the surplus. We are lief while we increase spending over in market system and have it continue its not talking about cutting any Govern- the other side. expansion. They know the best thing ment spending. We are not talking I recognize for up to 5 minutes this Congress can do in order to spur about reducing even the size and scope morning the Senator from Kansas, Mr. growth is to cut taxes. of the Government under these plans. BROWNBACK, and I also want to com- There are a variety of options for That we need to do. If we were going to pliment him for all of his hard work cutting America’s taxes. We can use a actually cut taxes, we would be giving and efforts in the area of taxes. budget surplus after accounting for So- back the surplus and then looking for The PRESIDING OFFICER. The Sen- cial Security. We need the Social Secu- ways to reduce the amount of money ator from Kansas. rity surplus for Social Security, and we the Federal Government spends. Mr. BROWNBACK. Thank you very need to lock it down, lock it out—cre- A couple of brief facts on the tax bur- much, Mr. President. I thank our dis- ate a lockbox for it. den and how it has grown. Under the tinguished colleague from Minnesota With the budget surplus over and Clinton administration, individual in- for all his work in this field. above Social Security, we could widen come tax relief for income tax receipts S7766 CONGRESSIONAL RECORD — SENATE June 29, 1999 has far outstripped our economic out- is in medicine or whether it is in law or Rudman-Hollings, we did it in 5 years. put. The tax collections have more whether it is in finance or whether it is I said, before long we are going up to 10 than doubled this country’s gross do- foreign policy—get the best of the best or 15 years. And sure enough, this mestic product growth in the last 6 minds around a table, determine the morning they have gone up with all years. It is almost double what per- needs of the country, and give it to the kinds of estimates of revenues. sonal income growth has been. In other Congressmen and Senators and let Really, the way to play, if you want words, Washington spending is growing them enact it into law. to play this game, is let’s have a 25- twice as fast as the growth in the en- John Dewey countered that. He said: year budget. We will have enough tire economy and twice as fast as a per- No, the better way is to give the Amer- money for everything. Send the money son’s personal income. I think that is ican people the truth, and the Amer- to the U.N., double the amounts to the what we are talking about today. ican people, in a consummate way, United Nations, double the tax cut. We all need to pay taxes. We need to through their Representatives in the Let’s double all these things, give it all support Government. There are many Congress, the House and Senate, would to investment accounts, health care, good things the Government does. We reflect those truths, and we would have whatever you want. Let’s have a 25- need to review the excessive spending a strong democracy. That is the way year budget and really go to spending and Washington’s belief that it can do since Jefferson’s time, when he said: up here. everything for everybody. [. . . as between] a government without It is a wonderful charade. It is a lord- In a bipartisan effort and mood, I newspapers, or newspapers without a govern- awful fraud. It is only up to the media yield the reminder of my time to the ment, I should not hesitate a moment to pre- to cut out this nonsense about surplus Senator from South Carolina to sneak fer the latter. when we are spending, this year, $100 in some remarks this morning. That was because he was depending, billion more than we are taking in. It I yield the remainder of my time to over many years—now over the 200 shows from the President’s own figures the Senator. years we have had—on that media ex- we will continue to spend more than we Mr. HOLLINGS. I thank my distin- pounding and telling us the truth. take in, increasing the debt, which guished colleague. The truth is, there is nothing in the brings us to the $350 to $365 billion in- Mr. President, so the distinguished lockbox that everybody is talking terest costs on the national debt. Be- Senator from Pennsylvania has time about. We have been spending it—$857 fore long, I am going to put in a tax al- for the independent counsel, I ask billion that we owe Social Security located to really getting rid of that unanimous consent to extend his time this very minute. So there is nothing debt, whereby we will give a $3.5-tril- from 12:05 to 12:35 so his half hour can in the lockbox. You can see from this lion tax cut, namely, get rid of that in- be preserved. document, when they say, pay down terest cost over the 10-year period. The PRESIDING OFFICER. Without the public debt, there is no such thing That is the kind of tax cut the Senator objection, it is so ordered. as paying down any kind of special from South Carolina would like. Mr. SPECTER. I thank the Senator. debt. You either have a debt that in- I thank my distinguished colleague Mr. HOLLINGS. I thank both of my creases or a debt that decreases and from Pennsylvania. colleagues on the other side of the comes into balance. They play that The PRESIDING OFFICER. Under aisle. shabby game called ‘‘paying down.’’ the previous order and agreement, the I awoke with a shock when I saw we The President even said, as quoted in time until the recess shall be under the had $1 trillion more money to spend. I the New York Times this morning, control of the Senator from Pennsyl- go right back to 1995, just 4 years ago, that he was going to tear up the credit vania. when I said I will jump off the Capitol card. The Senator from Pennsylvania. dome if this budget is balanced by the What they do is transfer the debt f year 2002. I said to myself, it looks as from the general indebtedness of Gov- if I am going to have to jump off the ernment, namely for defense and spend- INDEPENDENT COUNSEL REFORM dome, because they found another $1 ing and everything else, foreign policy ACT OF 1999 trillion. We just have surpluses every- and otherwise, and transfer it over to Mr. SPECTER. Mr. President, I seek where. Social Security, over to the military recognition today to join my col- I felt that way until I picked up the retirees, civilian retirement, over to leagues Senators LEVIN, LIEBERMAN, President’s document—the budget of Medicare, because there is a surplus. and COLLINS in introducing the Inde- the U.S. Government that they gave us So they transfer that debt into these pendent Counsel Reform Act of 1999. today, hot off the press. Turn to page trust funds and say that is paying down Our bill would accomplish two impor- 42 and Members will see the actual def- the debt. It is like having a Visa and a tant goals. First, it would reauthorize icit in 1998 at the end of September was MasterCard and you pay off your Visa the institution of the independent $5,478.7 trillion. card with the MasterCard. You are still counsel for another 5 years. Second, The distinguished Presiding Officer, the Government. If you are still the in- our bill would make significant who is a certified public accountant, dividual, you have your individual changes to the existing independent knows how to add and subtract. For debt; if you are still the Government, counsel statute to correct a number of the 5 years, on page 42, the total gross you have the Government debt. problems which have become clear to Federal debt goes to $6,298 trillion. The One more word and I will yield with all of us during the course of the past Federal debt by the year 2002 that I was gratitude to my distinguished friend few years. worried about has already increased from Pennsylvania. Just turn to page Tomorrow, the independent counsel some $400 billion. By the year 2004, it 43, the next page. You can see the 15- statute will sunset. The law is dying has increased from the 1999 deficit year; they have the debt held by the because there appears to be a con- $551.1 billion. Government, accounts held at the end sensus that it created more problems The debt is going up half a trillion, of the period, which has to be added up than it solved. Many of us have forgot- and everybody is talking surplus. That with the debt held by the public at the ten the very serious problems and con- is totally dismaying to this particular end of the period, and you will see the flicts that led us to pass the statute in Senator. It is a shabby game and a debt goes up to $7.587 trillion. The debt the first place. Any problems with the fraud that we play on the American goes up almost $2 trillion over that 15 law can be fixed, and our bill addresses public. The only entity to keep us hon- years. the issues that have caused the most est is the free press. They join in the Fortuitously, back 4 years ago I was serious complaints. But it would be a fraud. They had a debate some years saying that when President Reagan serious error to eliminate the institu- ago, between Mr. Walter Lippmann and came to town we had an annual budget tion of the independent counsel. John Dewey. This is back before the deficit from year to year and President Many years have passed since Presi- war. Lippmann’s contention was that Reagan said: I am going to balance it dent Nixon’s infamous Saturday Night the way to really build and strengthen the first year. Then he said: Whoops, Massacre. Yet it is important that we a democracy is to get the best of minds this is worse than I ever thought; I’ll remember this episode because it is in the various disciplines—whether it do it in 3 years. Then, with Gramm– such a powerful reminder of why we June 29, 1999 CONGRESSIONAL RECORD — SENATE S7767 passed the independent counsel statute Senators LEVIN, LIEBERMAN, COLLINS panded Mr. Starr’s jurisdiction to in- and why the statute is still needed and I have all attended 5 very com- clude Monica Lewinsky, I publicly today. prehensive hearings before the Senate commented that this was a mistake, Before there was an independent Governmental Affairs Committee from not because Kenneth Starr was not counsel, the Attorney General ap- February to April of this year. During competent to handle the investigation, pointed special prosecutors under his these hearings, we heard from former but because I was afraid that the public control to conduct investigations of independent counsels, former targets of would see this as yet further proof that Presidents and other high ranking offi- independent counsels, judges on the Starr was on a vendetta. I’m afraid this cials. After the Watergate break-in, At- special division of the court which ap- is exactly what came to pass. torney General Elliot Richardson ap- points independent counsels, Inde- Our bill would eliminate this prob- pointed Archibald Cox to serve as the pendent Counsel Kenneth Starr and At- lem by deleting the provision which al- Watergate Special Prosecutor. When torney General Reno. The four of us lows the Attorney General to expand President Nixon decided that Cox’s in- have also met repeatedly to discuss the jurisdiction of an independent vestigation was getting too close to the what is wrong with the current law and counsel beyond his or her original man- truth, he sought to have Cox fired. The how to fix it. The bill we introduce date. Our bill further provides that the President was legally entitled to fire today incorporates many of the sugges- independent counsel can investigate Cox, of course, since Cox was a Justice tions made during these hearings and only topics in his original jurisdiction Department employee like any other. corrects provisions in the bill which or those ‘‘directly related’’ thereto. When Attorney General Elliot Richard- lead to the most serious complaints. The four of us also agreed that some son refused to fire Cox, Richardson was First of all, we all agreed that too independent counsel investigations fired. When Deputy Attorney General many independent counsels have been drag on too long. Lawrence Walsh’s William Ruckelshaus refused to fire appointed for matters which simply do Iran/Contra investigation lasted 6 Cox, Ruckelshaus was also fired. Fi- not warrant this high level of review. years. Kenneth Starr’s investigation of nally, Solicitor General Robert Bork For example, I believe that Attorney President Clinton has been going on for agreed to fire Cox. General Reno made a mistake when she almost 5 years. Investigations of this After Archibald Cox was fired, the asked for appointment of an inde- length are really an anomaly in our White House announced that the office pendent counsel to investigate Sec- of the Watergate special prosecutor criminal justice system. Federal grand retary of Labor Alexis Herman. In Sec- was to be closed and the President’s juries are empaneled for a period of 18 retary Herman’s case, there was really chief of staff sent the FBI to surround months. As district attorney of Phila- insufficient corroboration to justify Cox’s offices and seize the records he delphia, I had a series of grand juries the allegations made against her. To had compiled. Henry Ruth, an old on complex topics such as municipal address this issue, we have raised the friend of mine who was working at the corruption, police corruption and drugs evidentiary standard which must be time as Archibald Cox’s top deputy, de- all of which lasted 18 months. If you met before the Attorney General is re- scribed the following scene in his testi- can’t find certain facts in 18 months, I mony before the Governmental Affairs quired to appoint an independent coun- think the odds are pretty good that Committee on March 3 of this year: sel. The statute currently requires that you will never find them. an independent counsel be appointed Our bill sets a 2-year time limit for In anticipation of adverse action, we had secured copies of key documents in secret lo- when there are ‘‘reasonable grounds to independent counsel investigations. cations around Washington, D.C. and even believe that further investigation is Since there are some who would try to removed some key items from the office that warranted.’’ Our bill provides that an take advantage of this time limit and Saturday night hidden in underwear and independent counsel must be appointed ‘‘run out the clock’’ on an investiga- other unlikely locations. We did not know only when there are ‘‘substantial tion, our bill also empowers the special whether the military would raid our homes grounds to believe that further inves- division of the court to extend this looking for documents. Unanimously, the tigation is warranted.’’ This change original 2-year period for as long as staff of the Watergate prosecutor’s office just refused to leave or to change anything will give an Attorney General the dis- necessary to make up for dilatory tac- we were doing unless someone physically re- cretion to decide that evidence she re- tics. Our bill also provides that the spe- moved us. And if an unprecedented 450,000 ceives is not sufficiently strong to jus- cial division can extend the original telegrams of spontaneous protest had not de- tify an independent counsel investiga- time period for good cause. Finally, the scended upon Washington, D.C. in the few tion. bill requires the Federal courts to con- days after that Saturday night, no one really As a further step to control the num- duct an expedited review of all matters knows if President Nixon would have suc- ber of independent counsel investiga- relating to an investigation and a pros- ceeded in aborting the investigation. In tions, our legislation limits the num- other words, we do not feel that the Depart- ecution by an independent counsel. ment of Justice was an adequate instrument ber of ‘‘covered persons’’ under the Another complaint about the Starr for investigating the President and other statute to the President, Vice Presi- investigation was that his report to high officials of government. dent, members of the President’s Cabi- Congress was a partisan document Eventually, as a result of these tele- net, and the President’s chief of staff. making an argument for impeachment grams and enormous public pressure, Accordingly, it would no longer be pos- rather than providing an impartial Leon Jaworski was appointed as a spe- sible to appoint an independent counsel recitation of evidence. While I believe cial prosecutor and the Watergate in- to investigate lower officials and staff that Mr. Starr was merely doing his vestigation was continued. But this whom an Attorney General could prop- job when he submitted this report, I do positive outcome was far from guaran- erly investigate on his or her own. agree that requiring such a report in- teed. As Mr. Ruth reminded the com- The four of us also agreed that it is a serts an independent counsel into a mittee, ‘‘it is impossible to describe mistake to give an independent counsel process—impeachment—which should how thin a thread existed at that time, jurisdiction over more than one inves- be left entirely to Congress. Accord- and for three weeks, for the continu- tigation. For instance, Kenneth Starr ingly, our bill deletes the requirement ation of what was going on.’’ started as the independent counsel for that the independent counsel submit a It was this dark episode, perhaps Whitewater. Attorney General Reno report to Congress of any substantial more than any other, which convinced later expanded his jurisdiction to cover and credible information that may con- the nation that the individual inves- Travelgate, Filegate, the death of stitute grounds for an impeachment. tigating the President must be truly Vince Foster, and, or course, Monica While Kenneth Starr was blamed for independent of the President. This is a Lewinsky. Unfortunately, the Attorney many things that were not his fault, I lesson we should have to learn only General’s repeated expansion of Mr. do believe he made a mistake when he once. While recent independent coun- Starr’s jurisdiction created the mis- decided to continue his private law sels have made some mistakes, none of taken impression that Mr. Starr was practice while he was serving as an these mistakes are on the scale of a on a personal crusade against Presi- independent counsel. The job of being Saturday Night Massacre. With this dent Clinton, opening new lines of in- an independent counsel is a privilege history as our guide, let us move to fix quiry when prior ones failed to bear and an enormous responsibility—it de- the statute, not eliminate it. fruit. After Attorney General Reno ex- serves someone’s full time attention. S7768 CONGRESSIONAL RECORD — SENATE June 29, 1999 Accordingly, our bill requires that an ious points of view. My own perspective pendent counsel would have to submit independent counsel serve on a full- is molded significantly by my experi- an annual budget. time basis for the duration of his or her ence as district attorney of Philadel- My colleagues are on the floor await- investigation. phia, knowing in detail the work of a ing recognition. I inquire of the Chair It appears that a majority of our col- prosecuting attorney, and the backdrop how much of the 30 minutes has leagues believe that it is better to let of the independent counsel statute was elapsed. independent counsel statute die and re- the ‘‘Saturday Night Massacre,’’ where The PRESIDING OFFICER. Five turn to the old days when special pros- President Nixon was under investiga- minutes 40 seconds. ecutors appointed and controlled by tion and fired two Attorneys General Mr. SPECTER. We reserve the re- the Attorney General will investigate until he found one who would fire the mainder of the time, and in accordance the President and his Cabinet. I am special prosecutor, Archibald Cox. with our procedure of alternating be- confident, however, that after the dust What is not recollected, but was tes- tween the parties, Senator LEVIN has settles and tempers abate, our col- tified to at our hearings by Henry been on the floor but has found it nec- leagues will realize that the inde- Ruth, later the special prosecutor suc- essary to absent himself for a moment. pendent counsel statute provides a bet- ceeding Leon Jaworski, was that at a I yield to Senator LIEBERMAN. ter way to handle investigations of the critical moment, when President Nixon The PRESIDING OFFICER. The President and his cabinet than any of decided to eliminate the special pros- Chair recognizes the Senator from Con- the alternatives. ecutor, the President’s Chief of Staff necticut. We must all remember that the inde- sent the FBI to surround the office of Mr. LIEBERMAN. I thank the Chair pendent counsel statute was passed to the special prosecutor and to seize the and thank my friend and colleague address a serious problem inherent in special prosecutor’s papers. As Henry from Pennsylvania. our system of government—the poten- Ruth outlined it, those in the office Mr. President, I am very pleased to tial for abuse and conflicts of interest took key documents hidden under their be joining today with my friends and when the Attorney General inves- clothing, not knowing what would hap- colleagues, Senators SPECTER, LEVIN, tigates the President and other high- pen next. It was only the public out- and COLLINS, in introducing the Inde- level executive branch officials. After rage, and some 450,000 telegrams which pendent Counsel Reform Act of 1999. all, it is the President who appoints descended on Washington, which led With this bill, we hope to convince our the Attorney General and is the Attor- President Nixon to change his position. colleagues, disillusioned perhaps by the ney General’s boss. Often the Attorney But the importance of independence conduct of particular investigations, General and the President are close in the prosecutor’s office cannot be that the Independent Counsel statute friends. Accordingly, there is an inher- overly emphasized. We have seen expe- serves an essential purpose, and has ent conflict of interest in having the riences with independent counsels, two served us well over the past twenty Attorney General control an investiga- to be specific, that by Judge Walsh, years. We want to convince our col- tion of the President or the President’s former Judge Walsh, who investigated leagues that our legislation will pre- closest associates. Even if an Attorney President Reagan’s administration in serve the essential ideals that moti- General were capable of conducting an Iran-contra, and Judge Starr, former vated the enactment of this statute in impartial investigation, the appear- Judge Starr, who investigated Presi- the years after Watergate, that no per- ance of a conflict of interest is serious dent Clinton, where those two inves- son is above the law, and that our high- enough to discredit the Attorney Gen- tigations have drawn the wrath on both est government officials must be sub- eral’s findings, especially a finding of sides of the political aisle. There does ject to our laws in the same way as any innocence. appear to be a consensus at the mo- other person. If they are guilty, they The independent counsel statute is ment that there ought not be a renewal must be held accountable. If they are the only way to address this inherent of the independent counsel statute. I not, they must be cleared. The Amer- conflict of interest. As memories of the personally believe, and Senators ican people are more likely to trust the Saturday Night Massacre have been LIEBERMAN, LEVIN, and COLLINS concur, findings of an Independent Counsel’s supplanted by memories of Kenneth that this is a fundamental mistake. So investigation and conclusions. Officials Starr, the pendulum of public opinion we have worked from the mistakes of who are wrongly accused will receive has swung too far against the statute. the past to craft a reform bill, and we vindication that is far more credible to I am confident that as soon as the At- have targeted the errors. the public than when it comes from the torney General begins to investigate Sooner or later a crisis will arise in Department of Justice. As a result, the his or her colleagues in the White Washington. It happens all the time. public’s confidence in its government House, the pendulum will swing back The crisis will be about the need to in- is enhanced by the Independent Coun- in the opposite direction. When this oc- vestigate the President or the Vice sel statute. curs, I believe that our colleagues will President or some ranking official. We have drafted new provisions that see that our approach is the best ap- The question will present itself about will curb the excesses we have seen in proach—to fix the problems in the stat- the inherent conflict of interest of the a few recent investigations. These ute, not abandon it. Attorney General, and this statute will changes are substantial. The Com- To reiterate, the existing inde- be available to deal with the problem. mittee on Governmental Affairs held pendent counsel statute is set to expire We have dealt with the mistakes of five hearings on the Independent Coun- by sunset provisions tomorrow, June Walsh-Starr investigations by limiting sel statute. We heard from numerous 30. There have been a series of five ex- the subjects. Only the President, Vice witnesses who had served as Inde- tensive hearings held in the Govern- President, Attorney General, and Cabi- pendent Counsel, and as Attorney Gen- mental Affairs Committee chaired by net members will be subject to inves- eral, from former prosecutors and from our distinguished colleague, Senator tigation. There will not be an expan- defense attorneys. Many witnesses sup- THOMPSON. During the course of those sion of jurisdiction unless directly re- ported the statute, even defense attor- hearings, attended by all four of the co- lated to the central charge, which neys who had represented targets in sponsors of this legislation, we have would eliminate the Monica Lewinsky Independent Counsel investigations. heard extensive testimony. The four of investigation. Both witnesses who opposed the stat- us have met on a number of occasions The independent counsel would have ute outright, and those who advocated to craft the legislation which we are to be full time. I know from my days as keeping it in some form, suggested a introducing today. district attorney it was impossible to number of improvements to the stat- Our fundamental conclusion is that do the job full time, but that ought to ute. We carefully considered those rec- the Attorney General, acting through be a minimal requirement. We have im- ommendations before we sat down to the Department of Justice, has an ir- posed a time limit of some 2 years to be draft a bill that retains the essential reconcilable conflict of interest when extended for cause, or to be extended features of the old law while reducing it comes to investigating top officials automatically for delaying tactics, or its scope, limiting the powers of the of the administration. This is a judg- by priority given by appellate courts Independent Counsel, and bringing ment which we come to from our var- on any legal issues raised. The inde- greater transparency into the process. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7769 As a result of our bill, there will be tice. But the time limit will also en- the current Independent Counsel stat- far fewer Independent Counsel ap- courage future Independent Counsel to ute. Many have dismissed any efforts pointed, they will be appointed only to bring their investigations to an expedi- to revive the Independent Counsel as investigate the highest government of- tious conclusion, and not chase down wrong and futile. No doubt it will be an ficials, and their actions will be con- every imaginable lead. uphill struggle, and I do not expect strained by the same sorts of guide- Our bill makes another important peoples’ minds to be changed over- lines and practical restraints that gov- change that will prevent expansion of night. But I do believe that over time ern regular federal prosecutors. investigations into unrelated areas. several factors will work to change For example, officials covered by the Until now the statute has allowed the peoples’ minds. statute will be limited to the Presi- Attorney General to request an expan- First, I feel confident that we can dent, the Vice President, the Presi- sion of an Independent Counsel’s pros- convince our colleagues that this legis- dent’s Chief of Staff, and Cabinet mem- ecutorial jurisdiction into unrelated lation is a better product than previous bers. This is a major reduction in the areas. This happened several times versions of the statute, and addresses number of officials currently covered with Judge Starr’s investigation, and I the specific concerns raised by the by the Independent Counsel statute. believe those expansions contributed to law’s opponents. Those who have pre- We can trust the Department of Jus- a perception that the prosecutor was dicted the death of the Independent tice to investigate the mid-level offi- pursuing the man and not the crime. Counsel statute had not seen our legis- cials listed in previous versions of the An Independent Counsel must not exist lation. I will work tirelessly, with the statute. If any other investigation to pursue every possible lead against bill’s other co-sponsors, to convince raises a conflict of interest, the Attor- his target until he finds some taint of our colleagues to give this issue a fresh ney General retains the authority to criminality. His function, our bill look. appoint her own Special Counsel. The makes clear, is to investigate that sub- Secondly, several controversial Inde- purpose of our bill is to reserve the ex- ject matter given him in his original pendent Counsel investigations have traordinary mechanism of a court-ap- grant of prosecutorial jurisdiction. clearly soured some people on the law. pointed Independent Counsel for those We also considered how we might im- This is understandable, but it is regret- pose greater budgetary restraints on rare cases involving allegations table, as I do not believe these inves- Independent Counsel. Some have spo- against our highest Executive Branch tigations revealed any flaws in the ken of the need for a strict budget cap, officials. Independent Counsel statute that can- In another change that will reduce but this idea strikes me as impractical, not be fixed. The passions raised by the number of Independent Counsel ap- if not unworkable. It’s just impossible Judge Starr’s investigation of the pointed, the threshold for seeking the to know in advance what crimes a pros- President, in particular, must be al- appointment of an Independent Counsel ecutor will uncover, how far his inves- lowed to subside, just as it took some will be raised, so that a greater amount tigation will have to go to get to the time for the passions inspired by the truth, how expensive a trial and any of evidence to back up the allegation Iran-Contra investigation to subside appeals will be. Instead, we are bring- will be required. The Attorney General before the Independent Counsel statute ing greater budgetary transparency to will also be entitled for the first time could be re-authorized in 1994. the process by directing Independent to issue subpoenas for evidence and Finally, as these passions subside I Counsel to produce an estimated budg- convene grand juries during the pre- believe Members of Congress will et for each year, and by allowing the liminary investigation, and would be gradually be reminded that the Inde- General Accounting Office to comment given more time to conduct the pre- pendent Counsel statute embodies cer- on that budget. At the moment not liminary investigation. This change re- tain principles fundamental to our de- enough is known about how Inde- sponds to concerns that, in the past, mocracy. The alternative to an Inde- pendent Counsel spend their money, pendent Counsel statute is a system in the Attorney General’s hands have and this greater transparency will pro- which the Attorney General must de- been tied during the preliminary inves- vide more incentive for Counsel to cide how to handle substantive allega- tigation stage. With our bill, the De- budget responsibly. partment of Justice will be able to con- A final change that we all readily tions against colleagues in the Cabinet, duct a more substantial preliminary agreed to was to eliminate entirely the or against the President. Often the investigation. requirement that an Independent Coun- President and the Attorney General Each Independent Counsel will have sel refer evidence of impeachable of- are long-time friends and political al- to devote his full time to the position fenses to the House of Representatives. lies. The Attorney General will not be for the duration of his tenure. This will The impeachment power is one of trusted by some to ensure that an unbi- prevent the appearance of conflicts Congress’s essential Constitutional ased investigation will be conducted. In that may arise when an Independent functions, and no part of that role other cases, many will question the Counsel continues with his private should be delegated by statute to a thoroughness of an investigation di- legal practice, and it will expedite in- prosecutor. rected from inside the Department. In vestigations as well. The Independent This bill should be thought of as a a time of great public cynicism about Counsel will also be expected to con- work in progress. We hope to gather government, the Independent Counsel form his conduct to the written guide- input from other Members and from statute guarantees that even the Presi- lines and established policies of the De- outside experts, and to have committee dent and his highest officials will have partment of Justice. The prior version hearings, and we intend to be flexible to answer for their criminal malfea- of that requirement contained a broad about incorporating suggestions. Some sance. In that sense, this statute up- loophole, which has been eliminated. of the provisions contained in the bill holds the rule of law and will help stem There have been many complaints may raise constitutional concerns, the rising tide of cynicism and distrust about runaway prosecutors, who con- which need to be fully explored. For ex- toward our government. The American tinue their investigations longer than ample, giving the Special Division of people support the Independent Coun- is necessary or appropriate. Our bill the Court of Appeals new authority to sel statute because it embodies the will impose a time limit of two years decide whether an Independent Counsel bedrock American principle that no on investigations by Independent Coun- has violated Department of Justice person is above the law. sel. The Special Division of the Court guidelines may violate the doctrine of Mr. President, I am very pleased to of Appeals will be able to grant exten- Separation of Powers. Other provisions be joining today Senator SPECTER, Sen- sions of time, however, for good cause expanding the Court’s role may also ator LEVIN and Senator COLLINS in in- and to compensate for dilatory tactics have to be reformulated. I hope that all troducing the Independent Counsel Re- by opposing counsel. Imposing a flexi- interested parties will be able to work form Act of 1999. It has been a great ble time limit allows Independent together on amendments as harmo- pleasure working with these three col- Counsel the time they genuinely need niously as the four of us did in drafting leagues across party lines in what to complete their investigations, and the original legislation. were, first, long hearings in the Gov- deters adverse counsel from using the The occasion of our introducing this ernmental Affairs Committee on which time limit strategically to escape jus- legislation is tomorrow’s expiration of we all serve, and then some very good S7770 CONGRESSIONAL RECORD — SENATE June 29, 1999 collegial discussions about how to pre- we are not in crisis, when somebody was closed because of the death of the serve the principles involved in the high up in our Government is suspected covered person. Excluding the top five Independent Counsel Act while re- of criminal wrongdoing—and that is most expensive investigations, the av- sponding to what we have learned, par- our hope, that we do not adopt it in the erage cost of an independent counsel ticularly in its recent existence and spirit of crisis, or we will adopt it at investigation was under $1 million. And implementation. We have achieved a that time when someone is suspected of for all but a handful of the cases inves- good balance. criminal wrongdoing and Members of tigated by independent counsel, the re- The point to stress—and my friend this body and the other body will de- sults of the investigations have had the and colleague from Pennsylvania has mand there not be a special counsel ap- public’s confidence. just done it—is this is all about the pointed by the Attorney General but an While some say the lesson of Water- rule of law which is at the heart of independent counsel. gate was that the previous system what the American experience is about, I plead with my colleagues, as the worked, I would refer our colleagues to that no one is above the law. There is law is allowed to expire tomorrow and the testimony of Henry Ruth, who was no monarchy, there is no autocracy. as, hopefully, we have a cooling off pe- in charge of the Watergate special Everyone is supposed to be governed by riod, to take a look at our proposal, to prosecution force during the Saturday the same law. try to separate ourselves from the con- Night Massacre. Referring to the possi- The question is, When the highest of- troversies surrounding Judge Starr’s bility that the coverup by President ficials of our Government, the most time as independent counsel and that Nixon could succeed, Mr. Ruth said, ‘‘It powerful people in this land are sus- of other recent independent counsel, is impossible to describe how thin a pected of criminal wrongdoing, is it ap- and focus on the principle of the rule of thread existed at that time.’’ propriate to have those suspicions in- law, that nobody is above the law in But the independent counsel law, vestigated by the people who are sus- America, and to come to agree with us while working most of the time, has pected themselves or by those whom that the best way to preserve those also been abused by a few overzealous they have appointed? Does that guar- principles is by readopting an Inde- prosecutors. These prosecutors have antee a thorough and independent in- pendent Counsel Act, one that is sub- made it apparent that before we reau- vestigation, and does it guarantee or at stantially reformed. thorize an independent counsel law, it least encourage the kinds of broad- I thank my colleagues, and I yield would need to be dramatically revised based public acceptance of the credi- the floor. to prevent a recurrence of the abuses bility of that investigation that is crit- Mr. SPECTER. Mr. President, I in- that we have seen. The bill we are in- ical to the trust and respect that we quire how much time has elapsed. troducing today represents the lessons hope the American people will have for The PRESIDING OFFICER. Eleven learned, while saving the essential ele- their Government? and a half minutes has elapsed. Under ments of the independent counsel law The four of us have answered that the previous order, the Senator has to preserve public confidence in the what is required is a counsel who is not control of all time until 12:35 p.m. prosecution of our top Government of- just special, as others would provide, Mr. SPECTER. I thank the Chair. I ficials. including the current Attorney Gen- yield to the distinguished Senator from Our bill would, among other things, eral, but one that is genuinely inde- Michigan, Mr. LEVIN. change the law in the following ways. pendent, not appointed by the Attor- The PRESIDING OFFICER. The Sen- First, it would preclude an inde- ney General, and not able to be fired, ator from Michigan. pendent counsel from broadening an in- dismissed by the Attorney General. Mr. LEVIN. Mr. President, I thank vestigation to matters not within the My research has indicated that from my good friend from Pennsylvania, and original grant of jurisdiction. the last century right through the I commend him and Senators COLLINS Second, it would enforce the require- Nixon administration, from President and LIEBERMAN for their effort in put- ment that independent counsel follow Ulysses Grant to President Richard ting together a bill which we believe the established policies of the Depart- Nixon, there were actually six special represents lessons learned but also rep- ment of Justice by giving affected per- counsel appointed to investigate pos- resents the feeling that we need to sons the opportunity to challenge ques- sible criminal behavior by high offi- have an independent counsel law, that tionable independent counsel actions cials of the Government, and three of sooner or later it will again appear not in line with those policies. those were dismissed by the adminis- that this country needs a way in which Third, it would eliminate the require- tration they served, presumably be- to independently investigate allega- ment for an independent counsel to cause they began to act in a way that tions of serious wrongdoing against submit an impeachment report to the unsettled that administration. high-level officials. House of Representatives. That is the principle of the rule of The independent counsel law expires Fourth, it would prohibit persons law, trust in Government, which we tomorrow. It was enacted in 1978 to es- with an apparent or real conflict of in- tried to embody in this proposal with tablish a nonpartisan process for inves- terest from serving as independent the changes that Senator SPECTER has tigating allegations of criminal con- counsel. mentioned. We have added a presump- duct by top executive branch officials. And, fifth, it would establish a pre- tion of a limited term, a higher thresh- The key purpose of the law is to retain sumptive 2-year term for an inde- old for the appointment of an inde- public confidence in criminal inves- pendent counsel’s investigation. pendent counsel, a smaller number of tigations when the Government inves- Those are just five of the many major people to be subject to this statute— tigates its highest officials. The goal is changes that would be made in the the President, Vice President, Attor- to treat top Federal officials no better independent counsel law. ney General, Members of the Cabinet and equally important, no worse than a A handful of independent counsels and the Chief of Staff. private citizen, and at the end of the have exceeded the intent of the inde- The prevailing consensus in this body investigation, when the judgment is pendent counsel law and have taken and the other body is that we should rendered, be it a statement of guilt or the law to places that U.S. Attorneys not renew this statute and it will, of innocence, to have the public accept would not go when investigating pri- course, expire tomorrow. Many have that judgment as a fair and impartial vate citizens. dismissed the efforts we are making one. Independent Counsel Donald Smaltz now as either wrong or futile. No doubt Over the years, there have been many took 4 years and spent $20 million in- it will be an uphill struggle, but I am successful investigations by inde- vestigating allegations of graft in the convinced it is the right struggle, and pendent counsels, most of which re- Agriculture Department. Yet his 2- we can convince our colleagues of the sulted in no indictments or prosecu- month trial of former Secretary Mike justness of our cause. tions but resolved outstanding allega- Espy ended in an acquittal on all 30 I will say something else, Mr. Presi- tions without partisanship or favor. counts of corruption. Shortly there- dent. There will be an independent There have been 20 independent counsel after, the Supreme Court threw out counsel statute in the future. We are investigations in 20 years. Ten of those Smaltz’ conviction of Sun-Diamond either going to adopt it at a time when were closed without indictment; one Growers of California, concluding that June 29, 1999 CONGRESSIONAL RECORD — SENATE S7771 Smaltz and a Federal district court had paign trail this fall. Starr’s spokesman said In a tightly reasoned article in the Na- stretched the law to punish behavior Sunday he won’t submit an interim report, tional Journal, Stuart Taylor Jr. defended that is not a crime. but will take as long as he needs to deter- Mr. Starr’s investigative procedures, includ- The independent counsel for Samuel mine if there is ‘‘substantial and credible in- ing calling Ms. Lewinsky’s mother before the formation’’ that crimes have been com- grand jury, but called for him to resign in Pierce, Secretary of Housing and Urban mitted. favor of someone with less political baggage. Development under President Reagan, Meanwhile, Starr’s investigation continues We are not at that point, because of the was in existence for almost 10 years, to expand—he now employs approximately 60 amount of time that would be lost. If at all and that included almost 4 years after people, including 28 attorneys, not counting possible, the nation needs to have this busi- the independent counsel publicly an- FBI agents working for him, and recently ness driven to a conclusion without the nounced he had closed the case with re- added 7,400 square feet of office space and delay that a switch in leadership would en- spect to Mr. Pierce. opened a new office in Alexandria, Va. tail. Every time Mr. Starr goes off on one of Starr’s ultra-marathon probe still has a these tangents or misreads the law he frit- Whitewater independent counsel Ken- long way to go,be he should keep in mind the ters away support from those who believe in neth Starr has singlehandedly done original intent of the independent counsel the importance of this inquiry but bridle at more to undermine public confidence law, which was to assure a fair and impartial his loco-weed judgments. in the independent counsel law than investigation of high government officials. anybody else. Well over half the Amer- His recent actions indicate that he’s forgot- [From the Wall Street Journal, June 25, 1998] ican people think that Kenneth Starr ten, or lost sight of, the fundamental fact A PROSECUTOR WITHOUT PUBLIC TRUST is partisan and do not trust him to be that our criminal justice systems works well (By Albert R. Hunt) fair. The editorials expressing concern only when it ears the respect and confidence When Independent Counsel Kenneth Starr of the American people. about Mr. Starr’s investigation and continued to represent tobacco companies judgment are voluminous. and spoke to the law school run by [From the New York Times, Feb. 25, 1998] televangelist Pat Robertson—two of Presi- Mr. President, I ask unanimous con- KEN STARR’S MISJUDGMENTS dent Clinton’s arch enemies—his supporters sent that six of those editorials be It has long been apparent that Ken Starr insisted he wasn’t a partisan. He just lacked printed in the RECORD. has a tin ear for political appearances and political judgment. There being no objection, the mate- public relations, but his decision to subpoena When he announced he was going to leave rial was ordered to be printed in the a White House aide, Sidney Blumenthal, un- early and accept a deanship at Pepperdine RECORD, as follows: dermines important legal and constitutional University, partially funded by right-wing principles. On the tactical level, this move Clinton-hater Richard Mellon Scaife, the [From the Hill, July 8, 1998] by the Independent Counsel is bone stupid. Starr chorus claimed he wasn’t insensitive. WHITHER KENNETH STARR? As a matter of principle, it is an attack on He lacked political judgment. Whitewater Independent Counselor Ken- press freedom and the unrestricted flow of Or when he acknowledged in a lengthy, on- neth Starr continues to disappoint his information that is unwarranted by the facts the-record interview with publisher Steven friends and delight his enemies in his long- and beyond his mandate as a prosecutor. Brill that his office, in essence, had leaked running investigation of President Clinton. This latest blunder fits a pattern of chron- to the press during the Clinton investiga- In a week in which Linda Tripp twice testi- ic clumsiness and periodic insensitivity to tion, again Mr. Starr’s supporters insisted he fied before one of the three grand juries Mr. Starr’s public responsibilities. His at- wasn’t part of the right-wing conspiracy. Starr convened during his four-year, $40 mil- tempt to slough off his public duty and flee Again, he just lacked political judgment. Let’s accept the word of Mr. Starr’s legal, lion investigation, he was slapped down by a to Pepperdine University was dismaying. His political and journalistic allies. He’s not a federal judge who ruled that he exceeded his political ties and refusal to give up private right-wing partisan out to destroy the presi- authority in prosecuting former Associate legal clients led us, in times past, to call for dent. He is an inexperienced prosecutor who Attorney General Webster Hubbell. his removal. In four years he has failed to de- lacks political judgment. This is the man de- In a stinging 35-page opinion, U.S. District velop sensitivity to his obligations as custo- ciding whether to bring a controversial case Judge James Robertson threw out the tax dian of an inquiry of national import. Appar- in a political setting against the President of evasion indictment of Hubbell, his wife, his ently his staff contains no one who can talk accountant and his tax lawyer, declaring the United States. him out of bad ideas. No matter how this sordid episode unfolds that Starr had gone on ‘‘the quintessential This time he has failed in his obligation to in the ensuring months. Mr. Starr already fishing expedition’’ in subpoenaing some the law itself. The effort to collect the name has failed miserably in the central role of a 13,000 pages of records from Hubbell after of every journalist who talked with a White special prosecutor; to engender public con- granting him immunity and then using them House communications specialist amounts fidence that he is fair, impartial and inde- to build his case against Hubbell. to a perverse use of the prosecutorial man- pendent. Starr’s behavior toward Hubbell and the date to learn what the Nixon White House This week’s Wall Street Journal/NBC News late Vince Foster was clearly indefensible. attempted to determine through wire-taps. poll shows that Americans think that he is He showed a flagrant disregard for the Con- Like any newspaper, we have an obvious self- none of the above. People are sick of his in- stitution by trying to create an exception ish interest in the confidentiality of the re- vestigation, don’t believe that what he is in- from the lawyer-client privilege in the Fos- porting process. But you do not have to be a vestigating is serious enough to even con- ter case, but he went even further by ignor- journalist to see that Mr. Starr has com- sider impeachment and hold Mr. Starr, far ing Hubbell’s constitutional right against mitted an ignorant assault on one of the more than the president, responsible for the self-incrimination when he improperly used most distinctive and essential elements of four year, $40 million inquiry. information he got from Hubbell under a American democracy. Most devastating for Mr. Starr is that grant of immunity. Mr. Starr created this mess by following a nearly three-quarters of the respondents The ruling was the latest in a series of bad example. Two weeks ago the White have little confidence that the report the legal and public relations setbacks for Starr. House started its own demagogic search for independent counsel is expected to send to Even as he defended himself against charges leaks in an effort to divert attention from Congress will be fair and impartial; even a by media watchdog Steven Brill that he im- the question whether President Clinton and majority of Republicans feel that way. properly leaked information about the his associates had committed perjury or sub- Mr. Starr still holds some prosecutorial Monica Lewinsky investigation to reporters, orned others to commit it. Mr. Starr may cards. Say he makes a few headline indict- Starr was rebuffed by the U.S. Supreme also be miffed by reports that the White ments and assume his report to Congress Court, which rejected his claim that Vincent House has turned its trademark tool of per- seems compelling. If this is so persuasive it Foster’s right to the lawyer-client privilege sonal attack on his prosecutorial staff. But turns around one-third of the doubters—an ended with his death. he does not need to follow that pernicious ambitious achievement—the country would Starr also was put on the defensive by example. He is armed with something more still be split, making it difficult to consider news reports that Tripp asked Lewinsky honorable and powerful in the mandate of impeachment. leading questions about her relationship the Attorney General and the majesty of the ‘‘In every instance in which the public is with President Clinton as she was secretly law. asked to select between Bill Clinton and tape recording the former White House in- But civic health demands that Mr. Starr Kenneth Starr, the public consistently lines tern. Tripp denied the reports in her grand get on with the investigation he is author- up on the president’s side,’’ note Peter Hart jury testimony, according to her lawyer. ized to conduct and bring it to a speedy con- and Robert Teeter, who conducted the sur- But Starr seems undeterred by his latest clusion. The public interest does not lie in vey. problems. He immediately announced he will Mr. Blumenthal’s phone records. It lies in This is not a new problem for the inde- appeal the Hubbell decision, even though it getting, as promptly as possible, the testi- pendent counsel. But just as he’s rounding is almost certain to further delay the conclu- mony of Monica Lewinsky, Vernon Jordan, into what may be the final turn, his public sion of his investigation, even as some Re- Bruce Lindsey, Mr. Clinton and others whose credibility is lower than ever. This reflects, publicans hoped he would deliver an interim testimony bears directly on the issue of false a few detached prosecutors suggest, his inex- report to Congress before they hit the cam- swearing. perience as a prosecutor, a second rate staff S7772 CONGRESSIONAL RECORD — SENATE June 29, 1999 and an obsession to topple the president [From the New York Times, June 22, 1998] maybe even the President on tape obstruct- which causes him to overreach. POLITICS BY OTHER MEANS ing justice.’’ Mr. Starr said his office had ‘‘never asked Mr. Starr’s supporters—many of whom are (By Anthony Lewis) obsessively hostile to the president—say a Ms. Lewinsky to agree to wire herself for a Kenneth Starr likes to say that he is going conversion with Mr. Jordan or the Presi- prosecutor can’t be driven by polls. A deci- ‘‘by the book’’ in his investigation of Presi- sion on whether to subpoena or indict some- dent.’’ But it was not only Mr. Isikoff who dent Clinton and Monica Lewinsky. The rel- said that happened. Ms. Lewinsky’s lawyers one should be made on the legal merits and evant book is the Justice Department’s said in February, in Time magazine, that the not on whether it will curry favor with the Rules of Conduct, published in the Code of prosecutors ‘‘wanted her wired . . . to record public. Federal Regulations. telephone calls with the President of the But if any prosecutor lacks public support, Rule 77.5 says that a Government lawyer U.S., Vernon Jordan and others’’—and made that fatally undermines his or her task; in a ‘‘may not communicate’’ with a party ‘‘who her consent a condition of being given immu- democracy if people don’t believe justice is the attorney for the government knows is nity from prosecution. being served, the system, by definition, isn’t represented by an attorney concerning the We all know that prosecutors leak. But working. subject matter of the representation without Kenneth Starr has been so sanctimonious, so In fact, prosecutors who go after crooked the consent of the lawyer representing such insistent that he never leaks. politicians, mobsters or businessmen tend to a party.’’ Far from going ‘‘by the book,’’ he has in be very popular with the public. From Thom- On Jan. 16 Mr. Starr’s office arranged to many ways abused his extraordinary power. as Dewey to Rudy Guiliani, such prosecu- have Linda Tripp meet Monica Lewinsky at Most Americans perceive that. Others are so tions have been promising stepping stones to the Ritz-Carlton Hotel in Pentagon City. critical of President Clinton that they over- higher office. Occasionally a prosecutor Suddenly Mr. Starr’s agents descended on look Mr. Starr’s abuses. They need remind- over-reaches and stumbles; New Orleans Dis- Ms. Lewinsky. They questioned her for many ing that however tempting the target of a trict Attorney Jim Garrison in the Kennedy hours. prosecutor, the end does not justify abusive assassination and more recently Los Angeles Ms. Lewinsky was represented by Francis means. DA Ira Reiner after a flawed prosecution of D. Carter, who was negotiating for her with [From the Los Angeles Times, Feb. 26, 1998] alleged child abuse. Such blunders are rare. Paula Jones’ lawyers. Mr. Starr did not ask STARR STEPS OUT OF BOUNDS The Starr camp replies that independent Mr. Carter’s consent to speak with his client, counsels have never been so criticized by op- or even inform him. Special counsel Kenneth W. Starr plans ponents and potential targets. That will Violation of that rule was not a light mat- today to bring a White House advisor and his come as news to Iran-Contra Independent ter. The Independent Counsel Act requires records before a grand jury to try to find out Counsel Lawrence Walsh. such a counsel to follow Justice Department what he said to reporters about the Monica regulations unless that would undermine the Lewinsky affair. The basis for this extraor- In 1992, Senate GOP Leader Bob Dole re- purpose of the act—which respecting the dinary assault on privacy is Starr’s suspicion peatedly charged that Mr. Walsh was ‘‘com- right to a lawyer plainly would not—and that Clinton administration aides have been pletely out of control,’’ Earlier, Rep. Henry makes failure to obey the rules ‘‘good cause’’ spreading ‘‘misinformation’’ about personnel Hyde complained the Walsh investigation for the Attorney General to remove the in the special counsel’s office. As Starr sees was of ‘‘essentially minor violations.’’ Terry counsel. it, that could represent an effort to ‘‘intimi- Eastland, a former top Justice Department Mr. Starr has also violated, wholesale, the date prosecutors and investigators, impede official under Ronald Reagan, charged that rules against prosecutors talking to the the work of the grand jury, or otherwise ob- the Walsh inquiry had been a ‘‘waste of press about pending investigations. If anyone struct justice.’’ All of these are federal money,’’ having spent more than $18.5 mil- doubted that, it has now been made crimes. lion of taxpayer funds. President Bush com- unanswerably clear by Steven Brill’s meticu- The subpoena that Starr has issued for plained it ‘‘has been investigated over and lous marshaling of the evidence in the first White House aide Sidney Blumenthal and his over again. . . . It’s been going on for years.’’ issue of Brill’s Content. records appears to be allowable under the The notion that Mr. Starr has been a In his angry reply to the article, Mr. Starr special counsel’s broad powers. At the same naive, defenseless target was undercut by never denied saying to Mr. Brill: ‘‘I have time Starr is clearly treading on highly Mr. Brill’s controversial article last week, in talked with reporters on background on problematical ground with his suggestion which the independent counsel acknowledged some occasions, but Jackie [Bennett Jr., his that any White House campaign to try to that his deputy, Jackie Bennett, spends deputy] has been the primary person in- discredit him or his investigators may rep- more than a little time with the press. volved in that. He has spent much of his resent an illegal effort to influence or inter- That’s not a surprise. One can disagree with time talking to individual reporters.’’ fere with the work of prosecutors or grand some of Mr. Brill’s sweeping conclusions Mr. Brill said that the Starr and Bennett jurors. about the independent counsel and the press talks with the press violated Rule 6e of the Starr has spent a lot of time in Wash- and still have contempt for Mr. Starr’s pious Federal Rules of Criminal Procedure, which ington, enough to grasp the difference be- hypocrisy for pretending earlier that he was forbid disclosure of grand-jury information. tween engaging in hardball politics and com- above the dirty business of leaking. Mr. Starr argued in reply that Rule 6e did mitting a felony. And he has been a lawyer long enough to understand that constitu- Ironically, what infuriates many conserv- not apply because he and his staff disclosed not grand-jury testimony but information tionally protected comment about the spe- atives is that Mr. Clinton is getting away cial counsel’s office does not constitute a without paying any price. That’s simply not obtained elsewhere and comments on it. Whatever the merits of the legal argument conspiratorial attempt to subvert justice. the case. Based on polls, and especially on The truth is that in the Lewinsky inves- about Rule 6e, didn’t the Starr leaks violate anecdotal evidence from outside the Belt- tigation both the independent counsel and ethical rules and Justice Department regula- way, many—probably most—Americans the White House have been playing the game tions? When Mr. Brill asked that question, think the president had a sexual relationship of media manipulation to the hilt, using Mr. Starr replied that they would be viola- with Monica Lewinsky and lied about it. leaks, planted stories, spin control and any- tions except when he was ‘‘countering misin- They don’t want him tarred and feathered thing else—some of it pretty nasty stuff in- formation’’ about his office. ‘‘We have a duty or thrown out of office for these indiscre- deed—to try to shape public opinion. to promote confidence in the work of this of- tions—a typical response is that most people What set Starr off were stories about judi- fice.’’ lie about sex—but it’s affected their view of cial criticism or penalties levied against two What a breathtaking assertion. It means him. His high job approval ratings reflect the of his prosecutors because of their profes- that whenever anyone disagrees with him, terrific economy. Bill Clinton today is a sional conduct years ago. What the two did Mr. Starr has a right to break the rules and much discredited president with virtually no is a matter of public record. But Starr says become an unnamed source for some jour- moral authority. The latest example is the many other allegations about personnel in- nalist ready to convey his version of the tobacco bill, where he was simply unable to volved in his investigation are deliberate story. In politics, that is called spinning. rally public and congressional support. falsehoods, and so he has dubiously raised Mr. Starr’s assertion that his leaks are the felonious specter of attempted intimida- A few weeks ago a delightful retired couple only to counter misinformation was also tion. in Carmel Valley, Calif., Earl and Miriam false. On the day the Lewinsky story broke, But intimidation can cut two ways. Surely Selby, talked about how for the first time in Jan. 21, Mr. Starr told Mr. Brill, Jackie Ben- hauling a White House political adviser and 30 years of marriage they were arguing about nett spent ‘‘much of the day briefing the his log of press contacts before a grand jury politics. Earl Selby, a former newspaperman press.’’ That was before there was any ‘‘mis- can be seen as a sly attempt to keep Clinton and magazine writer, who proudly notes he information’’ to answer. loyalists from talking with the media, deny- cast his first vote for FDR’s third term in Mr. Starr’s veracity is in question on an- ing the public information it has a right to 1940, is ‘‘outraged at how Clinton has lowered other matter. The Brill article says Michael hear and evaluate for itself. That is not respect for the presidency.’’ Miriam, a Isikoff of Newsweek told Mr. Brill that Jack- within Starr’s mandate. former magazine writer, is equally ‘‘outraged ie Bennett asked him to hold up writing The special counsel was not hired to act as at Starr’s tactics and prosecutorial abuse.’’ about Monica Lewinsky in January because a censor. His investigation has often been ac- There is no need for an argument, Selbys. ‘‘they were going to try to get Lewinsky to cused of ranging wide afield. This time it has You both are right. wire herself and get [Vernon] Jordan and stumbled right off the map. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7773 [From the Detroit Free Press, Feb. 26, 1998] pendent counsel to comply with the ex- would require that the judges who STARR’S WAR penditure policies of the Justice De- serve on the special division court be Whatever else Kenneth Starr may accom- partment with respect to salary levels, picked by lottery from a pool of all of plish, he’s becoming the best brief for the use of Government office space and the federal appellate court judges. The abolition of the special prosecutor’s office travel. Special Division would then be re- that anybody could ever imagine. He is exer- But we obviously have failed to fore- quired to develop a list of qualified cising power without wisdom, power without close opportunities for major excesses candidates to serve as independent restraint. His latest wave of subpoenas is an and clear abuses by independent coun- counsels from a list of five candidates attempt to use the grand jury process to punish his critics, an outrageous misuse of sel. Unless we can amend the law suffi- from each federal circuit selected by prosecutorial gunpowder. ciently to stop the excesses and abuses the chief judge of each circuit. Our bill What does Mr. Starr’s current onslaught in the future—and I think we can do would explicitly prohibit an inde- have to do with Whitewater? What does it that—then the law should lapse. We pendent counsel candidate from having have to do even with Monica Lewinsky? Mr. need a law but only if the law ensures an actual or apparent conflict of inter- Starr is angry that someone at the White that individuals who conduct these in- est, and it would encourage the ap- House has dredged up old newspaper stories vestigations are highly qualified, non- pointment of an individual with pros- that suggest he’s got a couple of pit bulls on partisan attorneys with good judgment ecutorial experience. his staff, one of whom was once cited for Mr. Starr was not a prosecutor. In overzealousness in a previous job as a pros- and common sense who are bound in by ecutor. So faxing old New York Daily News appropriate limits. making a number of critically impor- stories around, apparently, has just become The list of lessons learned over the tant judgment calls, Mr. Starr dem- a federal crime last few years is long. We have tried to onstrated a lack of understanding of Mr. Starr is out to bring down the presi- incorporate them into the bill we are the discipline a prosecutor needs in dent, and he seems not to care if he brings introducing today. order to exercise the tremendous dis- down the integrity of the justice system The first issues concern the appoint- cretion and power of the office with with him. The president’s defenders, mean- ment of the independent counsel. There fairness and justice. The bill would while, are whipping up the press to inves- was a high degree of dissatisfaction and seek to remedy this by requiring the tigate the investigators, blasting Mr. Starr individual appointed as independent for leaks from his own staff and in general concern with the choice of Kenneth tipping over garbage cans in the hope that Starr as independent counsel in the counsel to have prosecutorial experi- the clangor will distract attention from the Whitewater matter. The investigation ence ‘‘to the extent practicable.’’ potential obstruction of justice charge that was already well underway with Spe- Many people expressed concern over hangs over the president. cial Counsel Bob Fiske who had been the large and lucrative private practice This is unseemly behavior by both sides, appointed by Attorney General Reno. Mr. Starr continued to have as inde- but the root of it is the unchecked power Mr. Fiske was a well-respected, veteran pendent counsel. We will never know if given to Mr. Starr, Virtually no one has the the investigation into the President ability to jerk his leash; the attorney gen- prosecutor who had also been a lifelong Republican. To remove any doubt could have been concluded much more eral can remove him only for flagrant viola- expeditiously had Mr. Starr set aside tion of the law. He’s the only person or insti- about whether he could be appointed his private practice from the inception tution in the U.S. government that operates under the reauthorized independent of his appointment, but it’s a reason- without checks and balances. counsel law as well, Congress had spe- able possibility at least that it could Come 1999, when the statute is up for re- cifically authorized the special division newal, Republicans who are hugely enjoying have been. Independent counsel ap- of the court to reappoint him. But the the spectacle of a Democratic president at pointments are supposed to receive the three judge special division took it bay ought to recall how they felt about Law- highest priority and the public benefits upon itself to terminate Mr. Fiske and rence Walsh, and how they’ll feel when some from a timely resolution of the allega- replace him with Mr. Starr. Many of us future prosecutor recklessly targets another tions. Our bill would require an inde- GOP occupant of the White House. challenged the court’s decision at the For now, for a moment, assume the worst pendent counsel to devote full time to time, arguing that Mr. Starr was a the investigation to bring it to a is true about Bill Clinton (although Mr. highly partisan person who could not Starr has spend nearly 3 1/2 years and $26 mil- prompt conclusion, because we think bring the necessary appearance of inde- lion and come up dry)—sexual indiscretion, doing so has important benefits to the something funny about a failed land deal in pendence to the job. At the time of his public interest. Arkansas. Then ask who’s doing the worse appointment he was linked to the Another area has to do with the damage to fairness, justice, the conduct of Paula Jones case, having argued pub- scope of jurisdiction. This has been an government and the democratic process—the licly against the President’s position area of great concern to some of us. president or his pursuer? We rest our case. on immunity from civil suit. It turns That relates particularly to Mr. Starr’s Mr. LEVIN. A few of the headlines out he had also conferred numerous investigation, because he was origi- read: ‘‘A Prosecutor Without Public times with attorneys for Paula Jones. nally appointed to investigate the Trust,’’ ‘‘Ken Starr’s Misjudgments,’’ He had served as the Finance Co-Chair- Madison Guarantee Savings and Loan and ‘‘Starr Steps Out of Bounds.’’ Rob- man of the Congressional campaign of matter as it possibly related to Presi- ert Morgenthau, in fact, the District a Republican in Alexandria, Virginia. dent Clinton. But he ended up pros- Attorney for Manhattan, and one of At the time of Mr. Starr’s appointment ecuting a multitude of other matters. the most respected prosecutors in the I wrote to the Special Division and At one point his office even inter- country, is quoted as saying that Mr. urged them to reconsider their deci- viewed Arkansas State troopers about Starr violated ‘‘every rule in the sion. ‘‘The issue with respect to Mr. President Clinton’s relationship with a book.’’ Starr,’’ I said, ‘‘. . . is that he lacks the number of different women when he Some argue that the statute should necessary appearance of independence was Governor. Moreover, Mr. Starr had be scrapped. I cannot agree, provided essential for public confidence in the his jurisdiction expanded to include that we can prevent the abuses we have process.’’ Our concerns have proven to Travelgate, Filegate, and the Monica experienced in the past. We need a be true over time, to the point that Mr. Lewinsky matter. With each expan- mechanism to address credible allega- Starr is perceived by the public as a sion, he looked more and more like a tions of serious criminal wrongdoing partisan prosecutor. prosecutor pursuing a person instead of by top executive branch officials. We Our bill would make some very im- a prosecutor pursuing a crime. have made improvements in the stat- portant changes in the current process In the end he became Javert to Presi- ute each of the three times it has been in this regard. First, the special divi- dent Clinton’s Jean Valjean. Our bill reauthorized over the past 20 years. We sion of three judges who make inde- limits the scope of the original grant of have required independent counsel to pendent counsel appointments under jurisdiction to only those matters that comply with established Justice De- current law are appointed by the Chief are ‘‘directly’’ related to an inde- partment policies and procedures; we Justice of the Supreme Court, and the pendent counsel’s original jurisdiction, have added standards of conduct for court picks an independent counsel and eliminates the provision allowing independent counsel; and we have from a list of candidates developed by an expansion of jurisdiction. Such mat- added a whole new host of cost con- the special division from various rec- ters would be investigated by the De- trols, including requiring new inde- ommendations over time. Our bill partment of Justice or, if appropriate, S7774 CONGRESSIONAL RECORD — SENATE June 29, 1999 a new independent counsel could be ap- her ethics adviser the person already the cooling off period that former Sen- pointed. Only in this way can we pre- housed in the Department of Justice ator Howard Baker prescribed during vent an independent counsel from be- who is familiar with the ethical rules our Governmental Affairs Committee coming a permanent prosecutor of the and regulations of a Justice Depart- hearings. I hope that after a reasonable President or any other covered official. ment Attorney—the designated agency cooling off period we will turn our at- Experience has also taught us that ethics official or DAEO. This will help tention to reestablishing a reasonable some of these independent counsel in- to keep the office of the independent and fair procedure for the investigation vestigations develop huge staffs over counsel in tune with the ethical re- of criminal allegations of our top offi- time—far beyond those that would be quirements of other investigative of- cials and that the legislation we con- available in an ordinary investigation. fices, giving greater assurance that sider at that time contain the nec- At one point, it was alleged that the Justice Department policies with re- essary protections against abuses of Starr investigation was one of the top spect to ethics issues will be followed. power. The bill we are introducing three investigations in terms of num- Great concern has developed over the today is our best effort at drafting such bers of FBI agents in the country— cost of these independent counsel in- legislation. ranking right up there with the vestigations. Mr. Smaltz spent some I yield the floor. Unibomber and the World Trade Center $20 million to have a 30 count indict- Mr. SPECTER. How much time re- bombing. Our bill would limit the num- ment rejected by a jury. Mr. Starr is mains? ber of detailees from the FBI and the likely to be the most expensive inde- Department of Justice to a number pendent counsel ever—topping $50 mil- The PRESIDING OFFICER. The Sen- reasonably related to the number of lion when all is said and done. These ator from Pennsylvania has 7 minutes staff the Justice Department or FBI figures are shocking. The bill would ad- 48 seconds. normally assigns to a similar case. dress this problem by requiring an Mr. SPECTER. That is about a quar- One of my greatest concerns in the independent counsel to establish a ter of the time. past five years has been the failure of budget with consultation of the Attor- I yield to my distinguish colleague Mr. Starr to comply with both the spir- ney General and the General Account- from Maine, Senator COLLINS. it and, I believe, the letter of the law ing Office to review the budget and The PRESIDING OFFICER. The Sen- with respect to the requirement that submit a written analysis to Congress. ator from Maine. an independent counsel follow estab- We have tried with every reauthoriza- Ms. COLLINS. Mr. President, I am lished Department of Justice policies. I tion of this statute to obtain cost con- pleased to be a coauthor of the Inde- have made several floor statements trols over the operations of the inde- pendent Counsel Reform Act of 1999. At identifying the particular instances in pendent counsels. We’ve made some the outset, let me express my deep ap- which I believe Mr. Starr has exceeded progress, but obviously more needs to preciation to Senators SPECTER, Justice Department policies, so I will be done. The bill also sets a two year LIEBERMAN, and LEVIN for the bipar- not elaborate here. The current law re- presumptive limit on the work of an tisan spirit in which they approached quires an independent counsel to follow independent counsel and requires the the task of drafting this important leg- established Justice Department poli- independent counsel to affirmatively islation. Legislation of this com- cies except to the extent to do so would seek an extension for one year from the plexity, which must balance innumer- undermine the purposes of the inde- special court. By requiring an inde- able competing but important inter- pendent counsel law. That exception, pendent counsel to establish a budget ests, is never easy to achieve. This is which was intended to be a very narrow and presumptively limiting the term of particularly true when the legisla- exception, has been used by Mr. Starr an independent counsel to two years, I tion—as is the case in this bill—touch- to justify a laundry list of questionable believe we will impose a useful and es on political nerves that are still raw actions. The bill we are introducing meaningful cost control on these of- and fresh. today would eliminate that exception fices. We have worked very hard to achieve and provide that the only policy an A final concern that many of us have legislation that I believe truly serves independent counsel would be allowed had with the independent counsel law the public interest while correcting the to ignore would be that part of a policy is the provision regarding the referral significant flaws in the current law. or guideline that requires approval by of information to the House of Rep- Supporting the reauthorization of a top Justice Department official. The resentatives regarding possible im- the Independent Counsel Act is not bill provides that even in that situa- peachable offenses. Mr. Starr’s report likely to win this bipartisan group tion, the independent counsel should to the House was not only shockingly much applause from the Clinton ad- consult with a top Justice Department and unnecessarily graphic, it was a ministration or congressional partisans official; he or she just isn’t required to brief for impeachment, far beyond the on either side of the aisle. Many of our get that official’s approval. role envisioned by the independent colleagues say let it die. However, I The bill also creates a remedy for the counsel law. Mr. Starr’s report also caution my colleagues against short situation where a target or witness in violated the fairness expected by the memories. We should not forget what an independent counsel investigation American people by presenting infor- prompted passage of this legislation believes the independent counsel is not mation on possible impeachable of- more than two decades ago and its re- complying with established Justice De- fenses in a biased and prejudicial man- authorization three times since then. partment procedures. Currently, Jus- ner. Under the Constitution, the House tice Department policies are not en- has sole responsibility to decide wheth- The Congress that passed the inde- forceable in court, and several individ- er or not the President should be im- pendent counsel law after Watergate uals who attempted to enforce compli- peached. The independent counsel did wanted to assure the public that there ance by Mr. Starr were turned away by not have a statutory responsibility to were institutional guarantees that the court. This bill would give such an argue for impeachment. His responsi- would never again allow the political individual an explicit right to first ob- bility was to forward ‘‘information’’ to leadership of the Justice Department tain an opinion by the Attorney Gen- the Congress that ‘‘may constitute to obstruct a criminal investigation of eral as to whether an independent grounds for an impeachment.’’ Our bill the President and the highest Govern- counsel was complying with a specific would eliminate the provision with re- ment officials in the land. Their con- Department of Justice policy, and if spect to impeachment, removing any cern was not abstract or based on con- the Attorney General determines that obligation on the part of an inde- jecture. The Justice Department, in- the independent counsel is not, the bill pendent counsel to take any initiative deed, the Attorney General himself was allows the person to seek enforcement in this which is reserved exclusively to implicated in the coverup of criminal from the special court. the House of Representatives by the acts by the incumbent administration. Mr. Starr took the unusual step in Constitution. Do we think it couldn’t happen his investigation to hire an outside Finally, it is clear, obviously, that again? Clearly, unfortunately, it could. ethics attorney. The bill requires an the independent counsel law is going to The fact is, there will always be cases independent counsel to use as his or expire tomorrow. We are going to have in which the Attorney General has an June 29, 1999 CONGRESSIONAL RECORD — SENATE S7775 actual or an apparent conflict of inter- iting coverage to only the President, ‘‘597. Relationship with Department of Jus- est. The Attorney General simply can- the Vice President, the Cabinet, and tice. not credibly conduct an extensive in- the President’s chief of staff. By lim- ‘‘598. Severability. ‘‘599. Termination of effect of chapter. vestigation and make prosecutorial de- iting the coverage of the law, we have cisions involving his or her boss, the reserved the extraordinary remedy of ‘‘§ 591. Applicability of provisions of this chapter President, the Vice President, or col- an independent counsel for those high- leagues in the Cabinet. We must have level officials who will always, by vir- ‘‘(a) PRELIMINARY INVESTIGATION WITH RE- SPECT TO CERTAIN COVERED PERSONS.—The an institutional mechanism that tue of their position, pose a conflict of Attorney General shall conduct a prelimi- assures the public that allegations of interest to the Justice Department. nary investigation in accordance with sec- serious criminal conduct by high level We make many other changes. We tion 592 whenever the Attorney General re- officials will be thoroughly inves- heighten the threshold for the appoint- ceives information sufficient to constitute tigated and, if necessary, prosecuted. ment of an independent counsel, and grounds to investigate whether any person Only by resorting to a prosecutor be- we make clear that an independent described in subsection (b) may have vio- yond the actual and perceived control counsel must follow the prosecutorial lated any Federal criminal law other than a of the administration can the public be guidelines of the Department of Jus- violation classified as a Class B or C mis- demeanor or an infraction. assured that impartial justice extends tice. ‘‘(b) PERSONS TO WHOM SUBSECTION (a) AP- to the most influential and powerful We also abolish the requirement for PLIES.—The persons referred to in subsection leaders of our land. Moreover, the inde- independent counsel to report impeach- (a) are— pendent counsel law fosters public con- able conduct to the House of Rep- ‘‘(1) the President and Vice President; fidence in the decision not to prosecute resentatives. We have come up with a ‘‘(2) any individual serving in a position high level Government officials. A Gov- bill that would preserve this important listed in section 5312 of title 5; and ernment official who has been inves- mechanism while correcting the seri- ‘‘(3) the Chief of Staff to the President. ‘‘(c) EXAMINATION OF INFORMATION TO DE- tigated but cleared by an independent ous flaws in the current act. TERMINE NEED FOR PRELIMINARY INVESTIGA- counsel can justifiably and with credi- Let me conclude by again recognizing TION.— bility reclaim his or her public reputa- the efforts of my distinguished col- ‘‘(1) FACTORS TO BE CONSIDERED.—In deter- tion. Political opponents cannot rea- leagues and applaud them for their mining under subsection (a) or section sonably claim that the official escapes leadership on this important issue. My 592(c)(2) whether grounds to investigate scrutiny and punishment by pulling po- hope is that the rest of our colleagues exist, the Attorney General shall consider litical strings at the Justice Depart- will take advantage of this opportunity only— ment. to remedy the weaknesses in the inde- ‘‘(A) the specificity of the information re- We should keep in mind that the ma- ceived; and pendent counsel law before the next ‘‘(B) the credibility of the source of the in- jority of the independent counsel over unfortunate and inevitable crisis oc- formation. the past two decades have conducted curs and the public is left doubting ‘‘(2) TIME PERIOD FOR MAKING DETERMINA- prompt and cost-effective investiga- whether it can have confidence that TION.—The Attorney General shall determine tions that resulted in decisions not to the laws of this country will be en- whether grounds to investigate exist not prosecute or indict the official accused forced impartially, without regard to later than 30 days after the information is of the criminal wrongdoing. Can there rank or privilege. first received. If within that 30-day period be any doubt that the political credi- I thank the Chair. the Attorney General determines that the bility of these decisions was enhanced Mr. SPECTER. Mr. President, how information is not specific or is not from a credible source, then the Attorney General significantly because the prosecutor much time remains? shall close the matter. If within that 30-day had no political or financial connec- The PRESIDING OFFICER. Fifteen period the Attorney General determines that tions to the target or other members of seconds. the information is specific and from a cred- the administration? If we return these Mr. SPECTER. I thank my distin- ible source, the Attorney General shall, upon important decisions to the Justice De- guished colleagues, Senator COLLINS, making that determination, commence a partment, I fear we will encourage pub- Senator LEVIN, and Senator preliminary investigation with respect to lic skepticism of decisions not to pros- LIEBERMAN, for their fine presen- that information. If the Attorney General is ecute. There will always be a cloud of tations. unable to determine, within that 30-day pe- riod, whether the information is specific and suspicion tainting the decision. Mr. President, I ask unanimous con- from a credible source, the Attorney General The need for the independent counsel sent to have printed in the RECORD a shall, at the end of that 30-day period, com- mechanism is as evident today as it summary of the independent counsel mence a preliminary investigation with re- was back in 1978, when the law was statute, a section-by-section summary spect to that information. first enacted. We have learned much of the Independent Counsel Reform Act ‘‘(d) RECUSAL OF ATTORNEY GENERAL.— from our experience with the law. It is of 1999, and the text of the bill. ‘‘(1) WHEN RECUSAL IS REQUIRED.— flawed. It needs significant reform. There being no objection, the ref- ‘‘(A) INVOLVING THE ATTORNEY GENERAL.—If That is just what the legislation we are erenced materials were ordered to be information received under this chapter in- volves the Attorney General, the next most introducing today would do. printed in the RECORD, as follows: Though I strongly believe we should senior official in the Department of Justice S. 1297 who is not also recused shall perform the du- reauthorize the Independent Counsel Be it enacted by the Senate and House of Rep- ties assigned under this chapter to the At- Act, I am mindful of its many short- resentatives of the United States of America in torney General. comings. I participated in an excellent Congress assembled, ‘‘(B) PERSONAL OR FINANCIAL RELATION- series of hearings chaired by my col- SECTION 1. SHORT TITLE. SHIP.—If information received under this league from Tennessee, Senator This Act may be cited as the ‘‘Independent chapter involves a person with whom the At- THOMPSON, and virtually every witness Counsel Reform Act of 1999’’. torney General has a personal or financial relationship, the Attorney General shall agreed that the law must be changed. SEC. 2. INDEPENDENT COUNSEL STATUTE. recuse himself or herself by designating the The legislation we are introducing Chapter 40 of title 28, United States Code, next most senior official in the Department is amended to read as follows: today takes significant steps to rein in of Justice who is not also recused to perform the length and the cost of independent ‘‘CHAPTER 40—INDEPENDENT COUNSEL the duties assigned under this chapter to the counsel investigations. It limits all ‘‘Sec. Attorney General. independent counsel investigations to a ‘‘591. Applicability of provisions of this chap- ‘‘(2) REQUIREMENTS FOR RECUSAL DETER- maximum of 2 years and only allows ter. MINATION.—Before personally making any the investigation to proceed for addi- ‘‘592. Preliminary investigation and applica- other determination under this chapter with tional 1-year periods upon a special tion for appointment of an respect to information received under this showing to the court. It requires inde- independent counsel. chapter, the Attorney General shall deter- ‘‘593. Duties of the division of the court. mine under paragraph (1)(B) whether recusal pendent counsel to serve full time and ‘‘594. Authority and duties of an independent is necessary. The Attorney General shall set to submit annual budgets to the Gen- counsel. forth this determination in writing, identify eral Accounting Office. ‘‘595. Congressional oversight. the facts considered by the Attorney Gen- We substantially limit the number of ‘‘596. Removal of an independent counsel; eral, and set forth the reasons for the covered officials under the act, lim- termination of office. recusal. The Attorney General shall file this S7776 CONGRESSIONAL RECORD — SENATE June 29, 1999 determination with any notification or ap- this chapter, determines that there are sub- which the congressional request is made. If plication submitted to the division of the stantial grounds to believe that further in- there is such a preliminary investigation, court under this chapter with respect to that vestigation is warranted; or the report shall include the date on which information. ‘‘(B) the 120-day period referred to in sub- the preliminary investigation began or will ‘‘§ 592. Preliminary investigation and applica- section (a)(1), and any extension granted begin. tion for appointment of an independent under subsection (a)(3), have elapsed and the ‘‘(3) SUBMISSION OF INFORMATION IN RE- counsel Attorney General has not filed a notification SPONSE TO CONGRESSIONAL REQUEST.—At the ‘‘(a) CONDUCT OF PRELIMINARY INVESTIGA- with the division of the court under sub- same time as any notification, application, TION.— section (b)(1). or any other document, material, or memo- ‘‘(1) IN GENERAL.—A preliminary investiga- In determining under this chapter whether randum is supplied to the division of the tion conducted under this chapter shall be of there are substantial grounds to believe that court pursuant to this section with respect those matters as the Attorney General con- further investigation is warranted, the At- to a preliminary investigation of any matter siders appropriate in order to make a deter- torney General shall comply with the writ- with respect to which a request is made mination, under subsection (b) or (c), with ten or other established policies of the De- under paragraph (1), that notification, appli- respect to each potential violation, or alle- partment of Justice with respect to the con- cation, or other document, material, or gation of a violation, of criminal law. The duct of criminal investigations. memorandum shall be supplied to the com- Attorney General shall make that deter- ‘‘(2) RECEIPT OF ADDITIONAL INFORMATION.— mittee making the request, or to the com- mination not later than 120 days after the If, after submitting a notification under sub- mittee on which the persons making the re- preliminary investigation is commenced, ex- section (b)(1), the Attorney General receives quest serve. If no application for the appoint- cept that, in the case of a preliminary inves- additional information sufficient to con- ment of an independent counsel is made to tigation commenced after a congressional re- stitute grounds to investigate the matters to the division of the court under this section quest under subsection (g), the Attorney which that notification related, the Attor- pursuant to such a preliminary investiga- General shall make that determination not ney General shall— tion, the Attorney General shall submit a re- later than 120 days after the request is re- ‘‘(A) conduct such additional preliminary port to that committee stating the reasons ceived. The Attorney General shall promptly investigation as the Attorney General con- why the application was not made, address- notify the division of the court specified in siders appropriate for a period of not more ing each matter with respect to which the section 593(a) of the commencement of that than 120 days after the date on which that congressional request was made. preliminary investigation and the date of additional information is received; and ‘‘(4) DISCLOSURE OF INFORMATION.—Any re- commencement. ‘‘(B) otherwise comply with the provisions port, notification, application, or other docu- ‘‘(2) LIMITED AUTHORITY OF ATTORNEY GEN- of this section with respect to that addi- ment, material, or memorandum supplied to ERAL.— tional preliminary investigation to the same a committee under this subsection shall not ‘‘(A) IN GENERAL.—In conducting prelimi- extent as any other preliminary investiga- be revealed to any third party, except that nary investigations under this chapter, the tion under this section. the committee may, either on its own initia- Attorney General shall have no authority to ‘‘(d) CONTENTS OF APPLICATION.—Any appli- tive or upon the request of the Attorney plea bargain or grant immunity. The Attor- cation for the appointment of an inde- General, make public such portion or por- ney General shall have the authority to con- pendent counsel under this chapter shall tions of that report, notification, applica- vene grand juries and issue subpoenas. contain sufficient information to assist the tion, document, material, or memorandum ‘‘(B) NOT TO BE BASED OF DETERMINA- division of the court in selecting an inde- as will not in the committee’s judgment TIONS.—The Attorney General shall not base pendent counsel and in defining that inde- prejudice the rights of any individual. a determination under this chapter— pendent counsel’s prosecutorial jurisdiction ‘‘§ 593. Duties of the division of the court ‘‘(i) that information with respect to a vio- so that the independent counsel has ade- lation of criminal law by a person is not spe- quate authority to fully investigate and ‘‘(a) REFERENCE TO DIVISION OF THE cific and from a credible source upon a deter- prosecute the subject matter and all matters COURT.—The division of the court to which mination that that person lacked the state directly related to that subject matter. this chapter refers is the division established of mind required for the violation of crimi- ‘‘(e) DISCLOSURE OF INFORMATION.—Except under section 49 of this title. nal law; or as otherwise provided in this chapter or as is ‘‘(b) APPOINTMENT AND JURISDICTION OF ‘‘(ii) that there are no substantial grounds deemed necessary for law enforcement pur- INDEPENDENT COUNSEL.— to believe that further investigation is war- poses, no officer or employee of the Depart- ‘‘(1) AUTHORITY.—Upon receipt of an appli- ranted, upon a determination that that per- ment of Justice or an office of independent cation under section 592(c), the division of son lacked the state of mind required for the counsel may, without leave of the division of the court shall appoint an appropriate inde- criminal violation involved, unless there is a the court, disclose to any individual outside preponderance of the evidence that the per- pendent counsel and define the independent the Department of Justice or that office any son lacked that state of mind. counsel’s prosecutorial jurisdiction. The ap- notification, application, or any other docu- pointment shall be made from a list of can- ‘‘(3) EXTENSION OF TIME FOR PRELIMINARY ment, materials, or memorandum supplied didates comprised of 5 individuals rec- INVESTIGATION.—The Attorney General may to the division of the court under this chap- apply to the division of the court for a single ommended by the chief judge of each Federal ter. Nothing in this chapter shall be con- extension, for a period of not more than 90 circuit and forwarded by January 15 of each strued as authorizing the withholding of in- days, of the 120-day period referred to in year to the division of the court. formation from the Congress. paragraph (1). The division of the court may, ‘‘(2) QUALIFICATIONS OF INDEPENDENT COUN- ‘‘(f) LIMITATION ON JUDICIAL REVIEW.—The upon a showing of good cause, grant that ex- SEL.—The division of the court shall appoint Attorney General’s determination under this tension. as independent counsel an individual who— chapter to apply to the division of the court ‘‘(b) DETERMINATION THAT FURTHER INVES- ‘‘(A) has appropriate experience, including, for the appointment of an independent coun- TIGATION NOT WARRANTED.— to the extent practicable, prosecutorial expe- ‘‘(1) NOTIFICATION OF DIVISION OF THE sel shall not be reviewable in any court. rience and who has no actual or apparent ‘‘(g) CONGRESSIONAL REQUEST.— COURT.—If the Attorney General, upon com- personal, financial, or political conflict of in- pletion of a preliminary investigation under ‘‘(1) BY JUDICIARY COMMITTEE OR MEMBERS terest; this chapter, determines that there are no THEREOF.—The Committee on the Judiciary ‘‘(B) will conduct the investigation on a substantial grounds to believe that further of either House of the Congress, or a major- full-time basis and in a prompt, responsible, investigation is warranted, the Attorney ity of majority party members or a majority and cost-effective manner; and General shall promptly so notify the division of all nonmajority party members of either ‘‘(C) does not hold any office of profit or of the court, and the division of the court such committee, may request in writing that trust under the United States. shall have no power to appoint an inde- the Attorney General apply for the appoint- ‘‘(3) SCOPE OF PROSECUTORIAL JURISDIC- pendent counsel with respect to the matters ment of an independent counsel. TION.— involved. ‘‘(2) REPORT BY ATTORNEY GENERAL PURSU- ‘‘(A) IN GENERAL.—In defining the inde- ‘‘(2) FORM OF NOTIFICATION.—Notification ANT TO REQUEST.—Not later than 30 days pendent counsel’s prosecutorial jurisdiction under paragraph (1) shall contain a summary after the receipt of a request under para- under this chapter, the division of the court of the information received and a summary graph (1), the Attorney General shall submit, shall assure that the independent counsel of the results of the preliminary investiga- to the committee making the request, or to has adequate authority to fully investigate tion. the committee on which the persons making and prosecute— ‘‘(c) DETERMINATION THAT FURTHER INVES- the request serve, a report on whether the ‘‘(i) the subject matter with respect to TIGATION IS WARRANTED.— Attorney General has begun or will begin a which the Attorney General has requested ‘‘(1) APPLICATION FOR APPOINTMENT OF INDE- preliminary investigation under this chapter the appointment of the independent counsel; PENDENT COUNSEL.—The Attorney General of the matters with respect to which the re- and shall apply to the division of the court for quest is made, in accordance with section ‘‘(ii) all matters that are directly related the appointment of an independent counsel 591(a). The report shall set forth the reasons to the independent counsel’s prosecutorial if— for the Attorney General’s decision regard- jurisdiction and the proper investigation and ‘‘(A) the Attorney General, upon comple- ing the preliminary investigation as it re- prosecution of the subject matter of such ju- tion of a preliminary investigation under lates to each of the matters with respect to risdiction. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7777

‘‘(B) DIRECTLY RELATED.—In this para- ‘‘§ 594. Authority and duties of an inde- to or from the city in which the primary of- graph, the term ‘directly related matters’ in- pendent counsel fice of the independent counsel or person is cludes Federal crimes, other than those clas- ‘‘(a) AUTHORITIES.—Notwithstanding any located. The 1-year period may be extended sified as Class B or C misdemeanors or in- other provision of law, an independent coun- for successive 6-month periods if the inde- fractions, that impede the investigation and sel appointed under this chapter shall have, pendent counsel and the division of the court prosecution, such as perjury, obstruction of with respect to all matters in that inde- certify that the payment is in the public in- justice, destruction of evidence, and intimi- pendent counsel’s prosecutorial jurisdiction terest to carry out the purposes of this chap- dation of witnesses. established under this chapter, full power ter. ‘‘(4) DISCLOSURE OF IDENTITY AND PROSECU- and independent authority to exercise all in- ‘‘(B) RELEVANT FACTORS.—In making any TORIAL JURISDICTION.—An independent coun- vestigative and prosecutorial functions and certification under this paragraph with re- sel’s identity and prosecutorial jurisdiction powers of the Department of Justice, the At- spect to travel and subsistence expenses of may not be made public except upon the re- torney General, and any other officer or em- an independent counsel or person appointed quest of the Attorney General or upon a de- ployee of the Department of Justice, except under subsection (c), that employee shall termination of the division of the court that that the Attorney General shall exercise di- consider, among other relevant factors— disclosure of the identity and prosecutorial rection or control as to those matters that ‘‘(i) the cost to the Government of reim- jurisdiction of that independent counsel specifically require the Attorney General’s bursing those travel and subsistence ex- would be in the best interests of justice. In personal action under section 2516 of title 18. penses; any event, the identity and prosecutorial ju- Such investigative and prosecutorial func- ‘‘(ii) the period of time for which the inde- risdiction of the independent counsel shall be tions and powers shall include— pendent counsel anticipates that the activi- made public when any indictment is re- ‘‘(1) conducting proceedings before grand ties of the independent counsel or person, as turned, or any criminal information is filed, juries and other investigations; the case may be, will continue; pursuant to the independent counsel’s inves- ‘‘(2) participating in court proceedings and ‘‘(iii) the personal and financial burdens on tigation. engaging in any litigation, including civil the independent counsel or person, as the ‘‘(c) RETURN FOR FURTHER EXPLANATION.— and criminal matters, that the independent case may be, of relocating so that the travel Upon receipt of a notification under section counsel considers necessary; and subsistence expenses would not be in- 592 from the Attorney General that there are ‘‘(3) appealing any decision of a court in curred; and no substantial grounds to believe that fur- any case or proceeding in which the inde- ‘‘(iv) the burdens associated with appoint- ther investigation is warranted with respect pendent counsel participates in an official ing a new independent counsel, or appointing to information received under this chapter, capacity; another person under subsection (c), to re- the division of the court shall have no au- ‘‘(4) reviewing all documentary evidence place the individual involved who is unable thority to overrule this determination but available from any source; or unwilling to so relocate. may return the matter to the Attorney Gen- ‘‘(5) determining whether to contest the as- ‘‘(c) ADDITIONAL PERSONNEL.—For the pur- eral for further explanation of the reasons sertion of any testimonial privilege; poses of carrying out the duties of an office for that determination. ‘‘(6) receiving appropriate national secu- of independent counsel, an independent coun- ‘‘(d) VACANCIES.—If a vacancy in office rity clearances and, if necessary, contesting sel may appoint, fix the compensation, and assign the duties of such employees as such arises by reason of the resignation, death, or in court (including, where appropriate, par- independent counsel considers necessary (in- removal of an independent counsel, the divi- ticipating in in camera proceedings) any cluding investigators, attorneys, and part- sion of the court shall appoint an inde- claim of privilege or attempt to withhold time consultants). The positions of all such pendent counsel to complete the work of the evidence on grounds of national security; employees are exempted from the competi- independent counsel whose resignation, ‘‘(7) making applications to any Federal death, or removal caused the vacancy, except tive service. Such employees shall be com- court for a grant of immunity to any wit- pensated at levels not to exceed those pay- that in the case of a vacancy arising by rea- ness, consistent with applicable statutory re- able for comparable positions in the Office of son of the removal of an independent coun- quirements, or for warrants, subpoenas, or United States Attorney for the District of sel, the division of the court may appoint an other court orders, and, for purposes of sec- Columbia under sections 548 and 550, but in acting independent counsel to serve until tions 6003, 6004, and 6005 of title 18, exercising no event shall any such employee be com- any judicial review of the removal is com- the authority vested in a United States at- pensated at a rate greater than the rate of pleted. torney or the Attorney General; basic pay payable for level ES–4 of the Sen- ‘‘(e) ATTORNEYS’ FEES.— ‘‘(8) inspecting, obtaining, or using the ior Executive Service Schedule under section ‘‘(1) AWARD OF FEES.—Upon the request of original or a copy of any tax return, in ac- 5382 of title 5, as adjusted for the District of an individual who is the subject of an inves- cordance with the applicable statutes and Columbia under section 5304 of that title re- tigation conducted by an independent coun- regulations, and, for purposes of section 6103 gardless of the locality in which an employee sel pursuant to this chapter, the division of of the Internal Revenue Code of 1986 and the is employed. the court may, if no indictment is brought regulations issued thereunder, exercising the ‘‘(d) ASSISTANCE OF DEPARTMENT OF JUS- against that individual pursuant to the in- powers vested in a United States attorney or TICE.— vestigation, award reimbursement for those the Attorney General; ‘‘(1) IN CARRYING OUT FUNCTIONS.—An inde- reasonable attorneys’ fees incurred by the ‘‘(9) initiating and conducting prosecutions pendent counsel may request assistance from individual during the investigation which in any court of competent jurisdiction, fram- the Department of Justice in carrying out would not have been incurred but for the re- ing and signing indictments, filing informa- the functions of the independent counsel, quirements of this chapter. The division of tions, and handling all aspects of any case, and the Department of Justice shall provide the court shall notify the independent coun- in the name of the United States; and that assistance, which may include access to sel who conducted the investigation and the ‘‘(10) consulting with the United States at- any records, files, or other materials rel- Attorney General of any request for attor- torney for the district in which any violation evant to matters within that independent neys’ fees under this subsection. of law with respect to which the independent counsel’s prosecutorial jurisdiction, and the ‘‘(2) EVALUATION OF FEES.—The division of counsel is appointed was alleged to have oc- use of the resources and personnel necessary the court shall direct the independent coun- curred. to perform that independent counsel’s du- sel and the Attorney General to file a writ- ‘‘(b) COMPENSATION.— ties. At the request of an independent coun- ten evaluation of any request for attorneys’ ‘‘(1) IN GENERAL.—An independent counsel sel, prosecutors, administrative personnel, fees under this subsection, addressing— appointed under this chapter shall receive and other employees of the Department of ‘‘(A) the sufficiency of the documentation; compensation at the annual rate of basic pay Justice may be detailed to the staff of the ‘‘(B) the need or justification for the un- payable for level IV of the Executive Sched- independent counsel to the extent the num- derlying item; ule under section 5315 of title 5. ber of staff so detailed is reasonably related ‘‘(C) whether the underlying item would ‘‘(2) TRAVEL EXPENSES.—Except as provided to the number of staff ordinarily assigned by have been incurred but for the requirements in paragraph (3), an independent counsel and the Department to conduct an investigation of this chapter; and persons appointed under subsection (c) shall of similar size and complexity. ‘‘(D) the reasonableness of the amount of be entitled to the payment of travel expenses ‘‘(2) PAYMENT OF AND REPORTS ON EXPENDI- money requested. as provided by subchapter I of chapter 57 of TURES OF INDEPENDENT COUNSEL.—The De- ‘‘(f) DISCLOSURE OF INFORMATION.—The di- title 5, United States Code, including travel, partment of Justice shall pay all costs relat- vision of the court may, subject to section per diem, and subsistence expenses in ac- ing to the establishment and operation of 594(h)(2), allow the disclosure of any notifica- cordance with section 5703 of title 5. any office of independent counsel. The Attor- tion, application, or any other document, ‘‘(3) TRAVEL TO PRIMARY OFFICE.— ney General shall submit to the Congress, material, or memorandum supplied to the di- ‘‘(A) IN GENERAL.—After 1 year of service not later than 30 days after the end of each vision of the court under this chapter. under this chapter, an independent counsel fiscal year, a report on amounts paid during ‘‘(g) AMICUS CURIAE BRIEFS.—When pre- and persons appointed under subsection (c) that fiscal year for expenses of investiga- sented with significant legal issues, the divi- shall not be entitled to the payment of trav- tions and prosecutions by independent coun- sion of the court may disclose sufficient in- el, per diem, or subsistence expenses under sel. Each such report shall include a state- formation about the issues to permit the fil- subchapter I of chapter 57 of title 5, United ment of all payments made for activities of ing of timely amicus curiae briefs. States Code, for the purpose of commuting independent counsel but may not reveal the S7778 CONGRESSIONAL RECORD — SENATE June 29, 1999 identity or prosecutorial jurisdiction of any after until the office of that independent appointed by that independent counsel under independent counsel which has not been dis- counsel terminates, a report which identifies subsection (c) may not— closed under section 593(b)(4). and explains major expenses, and summa- ‘‘(A) for 3 years following the termination ‘‘(e) REFERRAL OF DIRECTLY RELATED MAT- rizes all other expenses, incurred by that of- of the service under this chapter of that TERS TO AN INDEPENDENT COUNSEL.—An inde- fice during the 6-month period with respect independent counsel or appointed person, as pendent counsel may ask the Attorney Gen- to which the report is filed, and estimates fu- the case may be, represent any person in any eral or the division of the court to refer to ture expenses of that office; and matter if that individual was the subject of the independent counsel only such matters ‘‘(B) before the termination of the inde- an investigation or prosecution under this that are directly related to the independent pendent counsel’s office under section 596(b), chapter that was conducted by that inde- counsel’s prosecutorial jurisdiction, and the file a final report with the division of the pendent counsel; or Attorney General or the division of the court, setting forth only the following: ‘‘(B) for 1 year following the termination of court, as the case may be, may refer such ‘‘(i) the jurisdiction of the independent the service under this chapter of that inde- matters. If the Attorney General refers a counsel’s investigation; pendent counsel or appointed person, as the matter to an independent counsel on the At- ‘‘(ii) a list of indictments brought by the case may be, represent any person in any torney General’s own initiative, the inde- independent counsel and the disposition of matter involving any investigation or pros- pendent counsel may accept that referral each indictment, including any verdicts, ecution under this chapter. only if the matter directly relates to the pleas, convictions, pardons, and sentences; ‘‘(3) ONE-YEAR BAN ON REPRESENTATION BY independent counsel’s prosecutorial jurisdic- and MEMBERS OF FIRMS OF INDEPENDENT COUN- tion. If the Attorney General refers any mat- ‘‘(iii) a summary of the expenses of the SEL.—Any person who is associated with a ter to the independent counsel pursuant to independent counsel’s office. firm with which an independent counsel is the independent counsel’s request, or if the ‘‘(2) DISCLOSURE OF INFORMATION IN RE- associated or becomes associated after ter- independent counsel accepts a referral made PORTS.—The division of the court may re- mination of the service of that independent by the Attorney General on the Attorney lease to the Congress, the public, or any ap- counsel under this chapter may not, for 1 General’s own initiative, the independent propriate person, those portions of a report year following that termination, represent counsel shall so notify the division of the made under this subsection as the division of any person in any matter involving any in- court. the court considers appropriate. The division vestigation or prosecution under this chap- ‘‘(f) COMPLIANCE WITH POLICIES OF THE DE- of the court shall make those orders as are ter. PARTMENT OF JUSTICE.— appropriate to protect the rights of any indi- ‘‘(4) DEFINITIONS.—For purposes of this ‘‘(1) IN GENERAL.—An independent counsel vidual named in that report and to prevent subsection— shall comply with the written or other estab- undue interference with any pending pros- ‘‘(A) the term ‘firm’ means a law firm lished policies of the Department of Justice ecution. The division of the court may make whether organized as a partnership or cor- respecting enforcement of the criminal laws any portion of a final report filed under para- poration; and except when that policy requires the specific graph (1)(B) available to any individual ‘‘(B) a person is ‘associated’ with a firm if approval of the Attorney General or another named in that report for the purposes of re- that person is an officer, director, partner, or Department of Justice official. If a policy re- ceiving within a time limit set by the divi- other member or employee of that firm. quires the approval of the Attorney General sion of the court any comments or factual ‘‘(5) ENFORCEMENT.—The Attorney General or other Department of Justice official, an information that the individual may submit. and the Director of the Office of Government independent counsel is encouraged to consult Such comments and factual information, in Ethics have authority to enforce compliance with the Attorney General or other official. whole or in part, may, in the discretion of with this subsection. The designated agency To identify and understand these policies the division of the court, be included as an ethics official for the Department of Justice and policies under subsection (l)(1)(B), the appendix to the final report. shall be the ethics adviser for the inde- independent counsel shall consult with the ‘‘(3) PUBLICATION OF REPORTS.—At the re- pendent counsel and employees of the inde- Department of Justice. quest of an independent counsel, the Public pendent counsel. ‘‘(2) NATIONAL SECURITY.—An independent Printer shall cause to be printed any report counsel shall comply with guidelines and previously released to the public under para- ‘‘(k) CUSTODY OF RECORDS OF AN INDE- procedures used by the Department in the graph (2). The independent counsel shall cer- PENDENT COUNSEL.— handling and use of classified material. tify the number of copies necessary for the ‘‘(1) TRANSFER OF RECORDS.—Upon termi- ‘‘(3) RELIEF FROM A VIOLATION OF POLI- public, and the Public Printer shall place the nation of the office of an independent coun- CIES.— cost of the required number to the debit of sel, that independent counsel shall transfer ‘‘(A) IN GENERAL.—A person who is a tar- the independent counsel. Additional copies to the Archivist of the United States all get, witness, or defendant in, or otherwise di- shall be made available to the public through records which have been created or received rectly affected by, an investigation by an the depository library program and Super- by that office. Before this transfer, the inde- independent counsel and who has reason to intendent of Documents sales program pur- pendent counsel shall clearly identify which believe that the independent counsel is vio- suant to sections 1702 and 1903 of title 44. of these records are subject to rule 6(e) of the lating a written policy of the Department of ‘‘(i) INDEPENDENCE FROM DEPARTMENT OF Federal Rules of Criminal Procedure as Justice material to the independent coun- JUSTICE.—Each independent counsel ap- grand jury materials and which of these sel’s investigation, may ask the Attorney pointed under this chapter, and the persons records have been classified as national secu- General to determine whether the inde- appointed by that independent counsel under rity information. Any records which were pendent counsel has violated that policy. subsection (c), are employees of the Depart- compiled by an independent counsel and, The Attorney General shall respond in writ- ment of Justice for purposes of sections 202 upon termination of the independent coun- ing within 30 days. through 209 of title 18. sel’s office, were stored with the division of ‘‘(B) RELIEF.—If the Attorney General de- ‘‘(j) STANDARDS OF CONDUCT APPLICABLE TO the court or elsewhere before the enactment termines that the independent counsel has INDEPENDENT COUNSEL, PERSONS SERVING IN of the Independent Counsel Reauthorization violated a written policy of the Department THE OFFICE OF AN INDEPENDENT COUNSEL, AND Act of 1987, shall also be transferred to the of Justice material to the investigation by THEIR LAW FIRMS.— Archivist of the United States by the divi- the independent counsel pursuant to sub- ‘‘(1) RESTRICTIONS ON EMPLOYMENT WHILE sion of the court or the person in possession paragraph (A), the Attorney General may INDEPENDENT COUNSEL AND APPOINTEES ARE of those records. ask the division of the court to order the SERVING.— ‘‘(2) MAINTENANCE, USE, AND DISPOSAL OF independent counsel to comply with that ‘‘(A) INDEPENDENT COUNSEL.—During the RECORDS.—Records transferred to the Archi- policy, and the division of the court may period in which an independent counsel is vist under this chapter shall be maintained, order appropriate relief. serving under this chapter— used, and disposed of in accordance with ‘‘(g) DISMISSAL OF MATTERS.—The inde- ‘‘(i) that independent counsel shall have no chapters 21, 29, and 33 of title 44. pendent counsel shall have full authority to other paid employment; and ‘‘(3) ACCESS TO RECORDS.— dismiss matters within the independent ‘‘(ii) any person associated with a firm ‘‘(A) IN GENERAL.—Subject to paragraph counsel’s prosecutorial jurisdiction without with which that independent counsel is asso- (4), access to the records transferred to the conducting an investigation or at any subse- ciated may not represent in any matter any Archivist under this chapter shall be gov- quent time before prosecution, if to do so person involved in any investigation or pros- erned by section 552 of title 5. would be consistent with the written or ecution under this chapter. ‘‘(B) ACCESS BY DEPARTMENT OF JUSTICE.— other established policies of the Department ‘‘(B) OTHER PERSONS.—During the period in The Archivist shall, upon written applica- of Justice with respect to the enforcement of which any person appointed by an inde- tion by the Attorney General, disclose any criminal laws. pendent counsel under subsection (c) is serv- such records to the Department of Justice ‘‘(h) REPORTS BY INDEPENDENT COUNSEL.— ing in the office of independent counsel, that for purposes of an ongoing law enforcement ‘‘(1) REQUIRED REPORTS.—An independent person may not represent in any matter any investigation or court proceeding, except counsel shall— person involved in any investigation or pros- that, in the case of grand jury materials, ‘‘(A) file with the division of the court, ecution under this chapter. those records shall be so disclosed only by with respect to the 6-month period beginning ‘‘(2) POST EMPLOYMENT RESTRICTIONS ON order of the court of jurisdiction under rule on the date of his or her appointment, and INDEPENDENT COUNSEL AND APPOINTEES.— 6(e) of the Federal Rules of Criminal Proce- with respect to each 6-month period there- Each independent counsel and each person dure. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7779

‘‘(C) EXCEPTION.—Notwithstanding any re- newly appointed independent counsels imme- may, if necessary to protect the rights of striction on access imposed by law, the Ar- diately upon appointment with appropriate, any individual named in the report or to pre- chivist and persons employed by the Na- temporary office space, equipment, and sup- vent undue interference with any pending tional Archives and Records Administration plies. prosecution, postpone or refrain from pub- who are engaged in the performance of nor- ‘‘(m) EXPEDITED JUDICIAL CONSIDERATION lishing any or all of the report. The division mal archival work shall be permitted access AND REVIEW.—It shall be the duty of the of the court may release any or all of the re- to the records transferred to the Archivist courts of the United States to advance on port in accordance with section 594(h)(2). under this chapter. the docket and to expedite to the greatest ‘‘(3) JUDICIAL REVIEW OF REMOVAL.—An ‘‘(4) RECORDS PROVIDED BY CONGRESS.— extent possible the disposition of matters re- independent counsel removed from office Records of an investigation conducted by a lating to an investigation and prosecution by may obtain judicial review of the removal in committee of the House of Representatives an independent counsel under this chapter a civil action commenced in the United or the Senate which are provided to an inde- consistent with the purposes of this chapter. States District Court for the District of Co- pendent counsel to assist in an investigation ‘‘§ 595. Congressional oversight lumbia. A member of the division of the or prosecution conducted by that inde- ‘‘(a) OVERSIGHT OF CONDUCT OF INDE- court may not hear or determine any such pendent counsel— PENDENT COUNSEL.— civil action or any appeal of a decision in ‘‘(A) shall be maintained as a separate ‘‘(1) CONGRESSIONAL OVERSIGHT.—The ap- any such civil action. The independent coun- body of records within the records of the propriate committees of the Congress shall sel may be reinstated or granted other ap- independent counsel; and have oversight jurisdiction with respect to propriate relief by order of the court. ‘‘(B) shall, after the records have been the official conduct of any independent coun- ‘‘(b) TERMINATION OF OFFICE.— transferred to the Archivist under this chap- sel appointed under this chapter, and the ‘‘(1) TERMINATION BY ACTION OF INDE- PENDENT COUNSEL.—An office of independent ter, be made available, except as provided in independent counsel shall have the duty to counsel shall terminate when— paragraph (3) (B) and (C), in accordance with cooperate with the exercise of that oversight ‘‘(A) the independent counsel notifies the the rules governing release of the records of jurisdiction. the House of Congress that provided the Attorney General that the investigation of ‘‘(2) REPORTS TO CONGRESS.—An inde- all matters within the prosecutorial jurisdic- records to the independent counsel. pendent counsel appointed under this chap- tion of the independent counsel or accepted Subparagraph (B) shall not apply to those ter shall submit to the Congress annually a by the independent counsel under section records which have been surrendered pursu- report on the activities of the independent 594(e), and any resulting prosecutions, have ant to grand jury or court proceedings. counsel, including a description of the ‘‘(l) COST AND ADMINISTRATIVE SUPPORT.— been completed or so substantially com- progress of any investigation or prosecution ‘‘(1) COST CONTROLS.— pleted that it would be appropriate for the conducted by the independent counsel. The ‘‘(A) IN GENERAL.—An independent counsel Department of Justice to complete those in- shall— report may omit any matter that in the vestigations and prosecutions; and ‘‘(i) conduct all activities with due regard judgment of the independent counsel should ‘‘(B) the independent counsel files a final for expense; be kept confidential, but shall provide infor- report in compliance with section ‘‘(ii) authorize only reasonable and lawful mation adequate to justify the expenditures 594(h)(1)(B). that the office of the independent counsel expenditures; and ‘‘(2) TERMINATION BY DIVISION OF THE ‘‘(iii) promptly, upon taking office, assign has made. COURT.—The division of the court, either on ‘‘(b) OVERSIGHT OF CONDUCT OF ATTORNEY to a specific employee the duty of certifying its own motion or upon the request of the GENERAL.—Within 15 days after receiving an that expenditures of the independent counsel Attorney General, may terminate an office inquiry about a particular case under this are reasonable and made in accordance with of independent counsel at any time, on the chapter, which is a matter of public knowl- law. ground that the investigation of all matters edge, from a committee of the Congress with ‘‘(B) LIABILITY FOR INVALID CERTIFI- within the prosecutorial jurisdiction of the jurisdiction over this chapter, the Attorney CATION.—An employee making a certification independent counsel or accepted by the inde- under subparagraph (A)(iii) shall be liable for General shall provide the following informa- pendent counsel under section 594(e), and any an invalid certification to the same extent as tion to that committee with respect to the resulting prosecutions, have been completed a certifying official certifying a voucher is case: or so substantially completed that it would liable under section 3528 of title 31. ‘‘(1) When the information about the case be appropriate for the Department of Justice was received. ‘‘(C) DEPARTMENT OF JUSTICE POLICIES.—An to complete those investigations and pros- independent counsel shall comply with the ‘‘(2) Whether a preliminary investigation is ecutions. At the time of that termination, established policies of the Department of being conducted, and if so, the date it began. the independent counsel shall file the final Justice respecting expenditures of funds. ‘‘(3) Whether an application for the ap- report required by section 594(h)(1)(B). If the ‘‘(2) BUDGET.—The independent counsel, pointment of an independent counsel or a no- Attorney General has not made a request after consulting with the Attorney General, tification that further investigation is not under this paragraph, the division of the shall, within 90 days of appointment, submit warranted has been filed with the division of court shall determine on its own motion a budget for the first year of the investiga- the court, and if so, the date of that filing. whether termination is appropriate under tion and, on the anniversary of the appoint- ‘‘§ 596. Removal of an independent counsel; this paragraph no later than 2 years after the ment, for each year thereafter to the Attor- termination of office appointment of an independent counsel. ney General and the General Accounting Of- ‘‘(a) REMOVAL; REPORT ON REMOVAL.— ‘‘(3) TERMINATION AFTER 2 YEARS.— fice. The General Accounting Office shall re- ‘‘(1) GROUNDS FOR REMOVAL.— ‘‘(A) GENERAL RULE.—Except as provided in view the budget and submit a written ap- ‘‘(A) IN GENERAL.—An independent counsel subparagraph (B), the term of an inde- praisal of the budget to the independent appointed under this chapter may be re- pendent counsel shall terminate at the expi- counsel and the Committees on Govern- moved from office, other than by impeach- ration of 2 years after the date of appoint- mental Affairs and Appropriations of the ment and conviction, only by the personal ment of the independent counsel and any Senate and the Committees on the Judiciary action of the Attorney General and only for matters under investigation by the inde- and Appropriations of the House of Rep- good cause, physical or mental disability (if pendent counsel shall be transferred to the resentatives. not prohibited by law protecting persons Attorney General. ‘‘(3) ADMINISTRATIVE SUPPORT.—The Direc- from discrimination on the basis of such a ‘‘(B) EXCEPTIONS.— tor of the Administrative Office of the disability), or any other condition that im- ‘‘(i) GOOD CAUSE.—An independent counsel United States Courts shall provide adminis- pairs the performance of that independent may petition the division of the court to ex- trative support and guidance to each inde- counsel’s duties. tend the investigation of the independent pendent counsel. No officer or employee of ‘‘(B) GOOD CAUSE.—In this paragraph, the counsel for up to 1 year for good cause. The the Administrative Office of the United term ‘good cause’ includes— division of the court shall determine whether States Courts shall disclose information re- ‘‘(i) a knowing and material failure to the grant of such an extension is warranted lated to an independent counsel’s expendi- comply with written Department of Justice and determine the length of each extension. tures, personnel, or administrative acts or policies relevant to the conduct of a criminal ‘‘(ii) DILATORY TACTICS.—If the investiga- arrangements without the authorization of investigation; and tion of an independent counsel was delayed the independent counsel. ‘‘(ii) an actual personal, financial, or polit- by dilatory tactics by persons that could ‘‘(4) OFFICE SPACE.—The Administrator of ical conflict of interest. provide evidence that would significantly as- General Services, in consultation with the ‘‘(2) REPORT TO DIVISION OF THE COURT AND sist the investigation, an independent coun- Director of the Administrative Office of the CONGRESS.—If an independent counsel is re- sel may petition the division of the court to United States Courts, shall promptly provide moved from office, the Attorney General extend the investigation of the independent appropriate office space for each independent shall promptly submit to the division of the counsel for an additional period of time counsel. The office space shall be within a court and the Committees on the Judiciary equal to the amount of time lost by the dila- Federal building unless the Administrator of of the Senate and the House of Representa- tory tactics. If the division of the court finds General Services determines that other ar- tives a report specifying the facts found and that dilatory tactics did delay the investiga- rangements would cost less. Until the office the ultimate grounds for the removal. The tion, the division of the court shall extend space is provided, the Administrative Office committees shall make available to the pub- the investigation for a period equal to the of the United States Courts shall provide lic that report, except that each committee delay. S7780 CONGRESSIONAL RECORD — SENATE June 29, 1999

‘‘(c) AUDITS.— sion of the court for the purpose of appoint- 11. Requires that the IC conduct the inves- ‘‘(1) IN GENERAL.—On or before June 30 of ing independent counsels. The Clerk of the tigation on a full-time basis. each year, an independent counsel shall pre- United States Court of Appeals for the Dis- 12. Eliminates the provision which allows pare a statement of expenditures for the 6 trict of Columbia Circuit shall serve as the the AG to expand the jurisdiction of an inde- months that ended on the immediately pre- clerk of the division of the court and shall pendent counsel beyond his/her original man- ceding March 31. On or before December 31 of provide such services as are needed by the di- date (such as the additions of Filegate, each year, an independent counsel shall pre- vision of the court. Travelgate, etc. to Starr’s original White- pare a statement of expenditures for the fis- ‘‘(b) OTHER JUDICIAL ASSIGNMENTS.—Except water mandate). cal year that ended on the immediately pre- as provided in subsection (e), assignment to 13. Provides that the IC can investigate ceding September 30. An independent counsel the division of the court shall not be a bar to only topics in his original jurisdiction or whose office is terminated prior to the end of other judicial assignments during the term those ‘‘directly related’’ thereto. the fiscal year shall prepare a statement of of the division of the court. 14. Provides that DOJ employees can be de- expenditures on or before the date that is 90 ‘‘(c) DESIGNATION AND ASSIGNMENT.—The tailed to the IC in a number which is ‘‘rea- days after the date on which the office is ter- Chief Justice of the United States shall des- sonably related to the number of staff ordi- minated. ignate and assign by a lottery of all circuit narily assigned by the Department to con- ‘‘(2) COMPTROLLER GENERAL REVIEW.—The court judges, 3 circuit court judges 1 of duct an investigation of similar size and Comptroller General shall— whom shall be a judge of the United States complexity.’’ ‘‘(A) conduct a financial review of a mid- Court of Appeals for the District of Colum- 15. Eliminates the provision which pro- year statement and a financial audit of a bia, to the division of the court. Not more vided that the IC need not comply with writ- year-end statement and statement on termi- than 1 judge may be named to the division of ten or established DOJ policies ‘‘to the ex- nation; and the court from a particular court. tent doing so would be inconsistent with the ‘‘(B) report the results to the Committee ‘‘(d) VACANCY.—Any vacancy in the divi- purposes’’ of the statute. on the Judiciary, Committee on Govern- sion of the court shall be filled only for the 16. Provides a mechanism for aggrieved mental Affairs, and Committee on Appro- remainder of the 3-year period in which that parties to appeal directly to the AG when priations of the Senate and the Committee vacancy occurs and in the same manner as they believe that the IC has failed to observe on the Judiciary, Committee on Government initial assignments to the division of the written DOJ policies or guidelines. If the AG Reform, and Committee on Appropriations of court were made. determined that the IC has in fact violated the House of Representatives not later than ‘‘(e) RECUSAL.—Except as otherwise pro- the guidelines in a manner that has caused a 90 days following the submission of each vided in chapter 40 of this title, no member cognizable harm to the complaining party, statement. of the division of the court who participated the AG may file a motion with the Division ‘‘§ 597. Relationship with Department of Jus- in a function conferred on the division of the of the Court seeking appropriate injunctive tice court under chapter 40 of this title involving or declaratory relief. an independent counsel shall be eligible to 17. Limits the IC’s final report to one ‘‘(a) SUSPENSION OF OTHER INVESTIGATIONS participate in any judicial proceeding con- which sets forth only a list of indictments AND PROCEEDINGS.—Whenever a matter is in brought by the IC, the outcomes of each in- the prosecutorial jurisdiction of an inde- cerning a matter that— dictment, and a summary of expenses. pendent counsel or has been accepted by an ‘‘(1) involves that independent counsel 18. Provides that the IC shall submit an an- independent counsel under section 594(e), the while the independent counsel is serving in nual budget to the AG and the GAO. The Department of Justice, the Attorney Gen- that office; or GAO shall review the budget and submit a eral, and all other officers and employees of ‘‘(2) involves the exercise of the inde- written appraisal of the budget to the IC and the Department of Justice shall suspend all pendent counsel’s official duties, regardless the House and Senate Governmental Affairs investigations and proceedings regarding of whether the independent counsel is still Committee and Appropriations Committee. that matter, except to the extent required by serving in that office.’’. 19. Provides for expedited review of all section 594(d)(1), and except insofar as the matters relating to an investigation and a independent counsel agrees in writing that SUMMARY OF INDEPENDENT COUNSEL STATUTE prosecution by an IC. the investigation or proceedings may be con- 1. Limits applicability of the statute to the 20. Deletes the requirement of a report to tinued by the Department of Justice. President, Vice President, members of the Congress of any substantial and credible in- ‘‘(b) PRESENTATION AS AMICUS CURIAE PER- Cabinet, and the President’s Chief of Staff. formation that may constitute grounds for MITTED.—Nothing in this chapter shall pre- 2. Eliminates the provision which allowed an impeachment. vent the Attorney General or the Solicitor the AG to begin a preliminary investigation 21. Defines the ‘‘good cause’’ for which an General from making a presentation as ami- and appoint an IC with regard to any indi- AG can remove an IC as a physical or mental cus curiae to any court as to issues of law vidual when she believed that investigating disability, a knowing, willful and material raised by any case or proceeding in which an this person may result in a personal, finan- failure to comply with relevant, written De- independent counsel participates in an offi- cial or political conflict of interest. partment of Justice guidelines, and a per- cial capacity or any appeal of such a case or 3. Eliminates the provision which allowed sonal, financial or political conflict of inter- proceeding. the AG to begin a preliminary investigation est. and appoint an IC to investigate a Member of ‘‘§ 598. Severability 22. Provides a 2 year time limit for IC in- Congress. ‘‘If any provision of this chapter or the ap- vestigation. Empowers the Special Division 4. Grants the AG the power to convene a plication thereof to any person or cir- of the Court to extend this period for addi- grand jury and issue subpoenas during the cumstance is held invalid, the remainder of tional one year periods for good cause, and preliminary investigation. this chapter and the application of that pro- to extend this period to make up for dilatory 5. Increases the length of the preliminary vision to other persons not similarly situ- tactics. investigation from 90 to 120 days and in- ated or to other circumstances shall not be 23. Provides that the judges of the Special creases the length of the extension from 60 affected by that invalidation. Division of the Court shall be chosen to 90 days (to allow more time given the ‘‘§ 599. Termination of effect of chapter through a lottery of circuit judges (instead AG’s new powers and the higher standard for of the current system where the Chief Jus- ‘‘This chapter shall cease to be effective 5 appointing an IC). tice chooses them). Extends period of service years after the date of enactment of the 6. Lowers the standard for not appointing on the Special Division from 2 to 3 years. Independent Counsel Reform Act of 1999, ex- an IC due to the suspect’s lack of mens rea cept that this chapter shall continue in ef- from ‘‘clear and convincing evidence’’ that INDEPENDENT COUNSEL REFORM ACT OF 1999— fect with respect to then pending matters be- he/she lacked the requisite state of mind to SECTION-BY-SECTION SUMMARY fore an independent counsel that in the judg- a ‘‘preponderance of evidence’’ that he/she ment of that counsel require the continu- lacked the requisite state of mind. Sec. 1: Short Title: ‘‘Independent Counsel Reform Act ation until that independent counsel deter- 7. Changes the standard necessary for ap- of 1999’’. Sec. 2: Independent Counsel Statute mines those matters have been completed.’’. pointing an IC from ‘‘reasonable grounds to United States Code Chapter 40, title 28 is SEC. 3. ASSIGNMENT OF JUDGES TO DIVISION TO believe that further investigation is war- replaced by this Act. APPOINT INDEPENDENT COUNSELS. ranted’’ to ‘‘substantial grounds to believe Section 49 of title 28, United States Code, that further investigation is warranted.’’ § 591. Applicability of provisions of this chap- is amended to reads as follows: 8. Requires that the IC be selected from a ter ‘‘§ 49. Assignment of judges to division to ap- list of candidates comprised of 5 individuals The Attorney General shall conduct a pre- point independent counsels recommended by the chief judge of each Fed- liminary investigation whenever there is ‘‘(a) IN GENERAL.—Beginning with the 3- eral circuit. specific and credible evidence that a covered year period commencing on the date of the 9. Provides that an IC shall have ‘‘appro- person may have violated Federal criminal enactment of the Independent Counsel Re- priate experience including, to the extent law. Covered persons include the President, form Act of 1999, 3 judges shall be assigned practicable, prosecutorial experience.’’ the Vice President, the President’s cabinet, for each successive 3-year period to a divi- 10. Provides that an IC shall have ‘‘no ac- and the Chief of Staff. sion of the United States Court of Appeals tual or apparent personal, financial or polit- The Attorney General shall determine the for the District of Columbia to be the divi- ical conflict of interest.’’ need for a preliminary investigation based June 29, 1999 CONGRESSIONAL RECORD — SENATE S7781 only on the specificity of the information experience if practical. An independent coun- independent counsel, who can also request and the credibility of the source. The Attor- sel shall have no actual or apparent conflict that such matters be referred. ney General shall determine whether of interest and shall conduct the investiga- An independent counsel shall comply with grounds to investigate exist within 30 days of tion on a full-time basis and shall not hold the written and established policies of the receiving the information. any office of profit or trust under the United Department of Justice, except when such Before making any other determinations, States. policies require the approval of the Depart- the Attorney General shall determine if The independent counsel shall have the au- ment of Justice. The independent counsel recusal is necessary and submit this deter- thority to fully investigate and prosecute shall comply with all guidelines dealing with mination in writing to the special court. the subject matter of the appointment and classified material. § 592. Preliminary investigation and applica- all matters directly related to the prosecu- A person who is a target, witness or de- tion for appointment of an independent torial jurisdiction and the proper investiga- fendant or otherwise directly affected by the counsel tion of the subject matter. ‘‘Directly re- investigation, who has reason to believe that The Attorney General shall make a deter- lated’’ includes federal crimes, other than the independent counsel is violating a writ- mination regarding the appointment of an certain misdemeanors, that impede the in- ten Department of Justice policy that is ma- independent counsel within 120 days after vestigation such as perjury and obstruction terial to the investigation, may ask the At- the preliminary investigation is commenced. of justice. torney General to investigate whether there The special court shall be notified of the The identity and prosecutorial jurisdiction has been a violation. The Attorney General commencement of that preliminary inves- of the independent counsel shall not be made shall respond in writing within 30 days. If the public until any indictment is returned or tigation. Attorney General determines that there has During the preliminary investigation, the criminal information is filed unless the At- been a violation of written policy material Attorney General shall have no authority to torney General requests such public disclo- to the investigation, the Attorney General plea bargain or grant immunity, but will sure or the special court determines it is in may ask the special court to order appro- possess the authority to convene grand ju- the best interest of justice. priate relief. The special court shall have no authority ries and issue subpoenas. The independent counsel may dismiss mat- The Attorney General shall not base a de- to overrule the determination of the Attor- ters within his or her prosecutorial jurisdic- termination to decline the appointment of ney General not to investigate further. tion if it is consistent with Department of If a vacancy in office arises, the special an independent counsel upon the state of Justice policy. court shall appoint another independent mind of the target unless there is a prepon- The independent counsel shall report to counsel to complete the work. If the vacancy derance of evidence that the target lacked the special court every 6 months and before arises by reason of removal, the appointment the requisite criminal intent. termination of the office. The 6-month pe- At the expiration of the 120 day period, the shall be of a temporary nature until any ju- riod report shall include explanations of ex- Attorney General may apply to the special dicial review of the removal is completed. penses, and estimates of future expenses. The If no indictment is brought against the court for a single extension of not more than termination report shall include summaries subject of the investigation, the special 90 days. of expenses and disposition of legal actions If the Attorney General determines that court may award the subject reasonable at- taken. there are no substantial grounds to believe torneys’ fees. The independent counsel and The special court may release appropriate that further investigation is warranted, the the Attorney General shall determine if the sections of the reports if it is appropriate to Attorney General shall notify the special fees requested are reasonable. protect the rights of any individual named in court. Notification shall consist of a sum- § 594. Authority and duties of an independent the report. At the request of an independent mary of the information received and the re- counsel counsel, past reports may be printed and sults of the preliminary investigation. The independent counsel shall have full made available to the public. The Attorney General shall apply to the power and independent authority to exercise The independent counsel may have no special court for the appointment of an inde- all investigative and prosecutorial functions other paid employment and any person with pendent counsel if the Attorney General de- and powers of the Department of Justice ex- an associated firm may not represent anyone termines there are substantial grounds to be- cept that the Attorney General shall exer- under investigation by the independent lieve that further investigation is warranted cise control over matters that specifically counsel. Appointees may not represent any- or the 120 day period granted for preliminary require the Attorney General’s personal at- one under investigation. The independent investigation has elapsed without proper no- tention under section 2516 of title 18. These counsel and appointees may not represent a tification to the special court. include the following: Conducting pro- subject of the investigation for three years. In making this determination, the Attor- ceedings before grand juries; engaging in any Those parties and an associated law firm are ney General shall comply with the written litigation considered necessary; appealing banned for one year from representing any and established policies of the Department of any decision of a court in which the inde- person in any matter involving this chapter. Justice. pendent counsel participates officially; re- The independent counsel shall conduct all If the Attorney General receives additional viewing all documentary evidence; deter- activities with due regard for expenses and information after notifying the special court mination of an assertion of testimonial authorize only reasonable and lawful expend- of a decision not to seek an independent privilege; receiving necessary national secu- itures. An appointee making an invalid cer- counsel, the Attorney General shall conduct rity clearances; application for a grant of tification will be held liable. An independent an additional preliminary investigation for a immunity to witnesses, or for warrants, sub- counsel shall comply with the established ex- period of no more than 120 days. poenas or other court orders; exercising the penditure policies of the Department of Jus- The Attorney General’s determination on authority of the Attorney General for the tice. the appointment of an independent counsel purposes of section 6003, 6004 and 6005 of title The independent counsel shall within 90 shall not be reviewable by any court. 18, and section 6103 of the Internal Revenue days of appointment submit a budget for the Congress may request in writing that the Code of 1986; inspecting, obtaining or using first year, and thereafter on an annual basis. Attorney General apply for the appointment any tax return; initiating and conducting This budget shall be submitted to the Attor- of an independent counsel. No later than 30 prosecutions in any court, framing and sign- ney General and the General Accounting Of- days after a congressional request, the At- ing indictments, filing informations and fice (‘‘GAO’’). The GAO shall review the an- torney General must report on the status of handling all aspects of any case in the name nual budget and submit a written appraisal the preliminary investigation or the reasons of the United States; and consulting with the to Congress. It shall be the duty of the courts of the for not investigating. United States Attorney for the appropriate If the preliminary investigation is initi- United States to expedite matters relating district. ated in response to a congressional request, Travel expenses shall be compensated. to an investigation and prosecution by an any communication to the special court After one year of service, commuting costs independent counsel. shall be supplied to the persons requesting shall not be reimbursed unless the special § 595. Congressional oversight the investigation. If no application for the court certifies that it is in the public inter- The appropriate committees of Congress appointment of an independent counsel is est. Relevant factors include cost of reim- shall have oversight jurisdiction. The inde- made, the Attorney General shall submit a bursement, time period of office, burden of pendent counsel shall submit annually a re- report explaining the decision. relocation and burden of appointing a dif- port on the activities of the independent § 593. Duties of the division of the court ferent independent counsel. counsel omitting confidential matters, but Upon receipt of an application, the special An independent counsel may request as- sufficient to justify the expenditures. court shall appoint an appropriate inde- sistance from the Department of Justice, Within 15 days of a request from an appro- pendent counsel and define the independent which shall be provided within reason. The priate congressional committee, the Attor- counsel’s prosecutorial jurisdiction. The ap- costs relating to the establishment and oper- ney General shall provide the following: pointment shall be made from the list of can- ation of any office of independent counsel when the information regarding the case was didates comprised of five individuals rec- shall be paid through the Department of Jus- received, the starting date of the prelimi- ommended annually by the chief judge of tice and reported to the Congress within 30 nary investigation, and whether an applica- each federal circuit. days of the end of the fiscal year. tion for an independent counsel or notifica- An independent counsel shall have appro- The Attorney General or the special court tion of no further investigation has been priate experience, including prosecutorial may refer ‘‘directly related’’ matters to the filed. S7782 CONGRESSIONAL RECORD — SENATE June 29, 1999 § 596. Removal of an independent counsel; any judicial proceeding concerning a matter damus to compel an officer or employee of termination of office that involves the independent counsel while the United States, or any agency thereof, to An independent counsel may only be re- the independent counsel is in office, or a perform a duty owed to the plaintiff; (2) 5 moved from office by the Attorney General matter involving the exercise of the inde- U.S.C. section 702, which confers jurisdiction for ‘‘good cause,’’ physical or mental dis- pendent counsel’s official duties. over any action to compel an agency of the ability, or any other condition that impairs Mr. SPECTER. Mr. President, I ask United States to perform a duty which has the performance of the independent counsel’s unanimous consent for 2 additional been unreasonably withheld; and (3) by rea- duties. Good cause include a knowing and son of its general Federal Question jurisdic- minutes. tion under 28 U.S.C. section 1331. material failure to comply with the written The PRESIDING OFFICER. Without policies of the Department of Justice, or an THE PARTIES AND STATUTORY BACKGROUND objection, it is so ordered. actual conflict of interest 2. This is an action to compel the Attorney Upon removal of an independent counsel, Mr. SPECTER. Mr. President, I have General of the United States of America to the Attorney General shall submit a report sought recognition for 2 additional comply with statutory provisions set forth to the special court and the appropriate con- minutes to comment about an amend- in the Independent Counsel Statute, 28 gressional committees specifying the facts ment which I will seek to add when U.S.C. sections 591–599 (hereinafter ‘‘The found and the ultimate grounds for the re- this statute is considered. It is one Act’’). moval. This report shall be made public with where I am proceeding by myself. That 3. [Plaintiffs comprise a majority of the necessary protections for the rights of any is a provision to have a mandamus ac- Republican members of the House and Sen- named individual. ate Judiciary Committees.] Section 592(g) of The independent counsel may request judi- tion to compel the Attorney General to the Act provides that a majority of the ma- cial review of his or her removal. Remedies appoint an independent counsel where jority party members of the House or Senate may include reinstatement or other appro- there is an abuse of discretion. It is my Judiciary Committee shall have the author- priate relief. view that independent counsel should ity to request that the Attorney General The independent counsel shall notify the have been appointed on campaign fi- apply for appointment of an independent Attorney General when the matters within nance reform, as recommended by FBI counsel. the prosecutorial jurisdiction have been Director Louis Freeh and special coun- 4. Defendant is the Attorney General of the completed, or completed to the point that it sel Charles LaBella. United States and is charged with the duty would be appropriate for the Department of of carrying out the provisions of the Act by Justice to complete those investigations. I will ask consent that at the conclu- reason of the requirements set forth in 28 The independent counsel shall file the final sion of the remarks which I am now U.S.C. sections 591–595. report. The special court may terminate an making, there be included a draft com- 5. Section 591 of the Act provides that the office of the independent counsel on the plaint which I had prepared to compel Attorney General ‘‘shall’’ conduct a prelimi- same grounds within two years of appoint- the appointment of independent coun- nary investigation whenever the Attorney ment and thereafter on an annual basis. sel. General receives specific and credible infor- The term of an independent counsel shall This draft complaint was never filed mation which is ‘‘sufficient to constitute terminate after two years except for good grounds to investigate’’ whether a covered cause or dilatory tactics. The special court because at each stage where it ap- person under the Act ‘‘may have violated’’ shall review all requests for extensions and peared warranted to pursue mandamus, any Federal criminal law. Such covered per- may grant an extension for additional one the Attorney General would take some sons include the President and the Vice year periods. action on extension of investigation, President. By June 30th and December 31st of each and then it became interwoven with 6. Section 592(c) of the Act provides that year, the independent counsel shall prepare a the impeachment proceedings so the the Attorney General ‘‘shall’’ apply to the statement of expenditures covering the pre- time was never quite right. There was special division of the circuit court for ap- vious 6 months. The Comptroller General a complex issue on standing, although pointment of an independent counsel if the shall conduct a financial review of the state- Attorney General determines, after review- ments and submit the results to the appro- at one time we almost had an agree- ing specific and credible evidence, that there priate congressional committees. ment by the chairman of the House Ju- are ‘‘reasonable grounds to believe that fur- diciary Committee and the chairman of § 597. Relationship with the Department of ther investigation is warranted.’’ Justice the Senate Judiciary Committee to FACTUAL BACKGROUND Whenever a matter is within the prosecu- have their sponsorship, perhaps if not 7. The following factual background sets torial jurisdiction of the independent coun- all of the Republicans in each com- forth specific and credible information suffi- sel, the Department of Justice shall suspend mittee, a majority of the Republicans, cient to require the Attorney General to all investigation, except if the independent which would have provided standing for apply for appointment of an independent counsel agrees in writing that the matter a report and, by analogy, perhaps, counsel under the provisions of the Act cited may be continued by the Department of Jus- standing for such a lawsuit. above. This information has been organized tice. as follows: I do believe that when independent I. National Security Information Withheld Nothing in this chapter shall prevent ei- counsel is again considered and this ther the Attorney General or the Solicitor from the President. The Attorney General General from presenting an amicus curiae statute sponsored by the four of us will found that there was sufficient evidence of brief on matters involving the jurisdiction of be ready, willing, and able to proceed, illegal activity by the President to justify the independent counsel. the issue of a mandamus action ought withholding certain national security infor- mation from him. Since the evidence was § 598. Severability to be considered. sufficiently compelling to justify such an ex- If any provision of this chapter is held in- I ask unanimous consent that the text of this draft complaint be printed treme denial of presidential prerogative, the valid, the remainder of this chapter not simi- same evidence is sufficiently specific and larly situated shall not be affected by that in the RECORD to preserve the factual credible so as to warrant appointment of invalidation. allegations for later reference on the independent counsel. § 599. Termination of effect of chapter general principle of the need for a man- II. Criminal Violations. The Attorney Gen- This chapter shall sunset five years after damus provision. eral has ignored specific and credible evi- the date of enactment. There being no objection, the com- dence of at least two violations that warrant Sec. 3: Assignment of Judges to Division to Appoint plaint was ordered to be printed in the appointment of an independent counsel to in- Independent Counsels RECORD, as follows: vestigate the President and/or the Vice President: Section 49 of title 28, United States Code, [United States District Court for the District is amended to read as follows: A. Coordination between the President and of Columbia, Civil Action No. ] the DNC. There is specific and credible evi- § 49. Assignment of judges to division to ap- PLAINTIFFS vs. THE HONORABLE JANET RENO, dence that President Clinton engaged in ille- point independent counsel ATTORNEY GENERAL, DEPARTMENT OF JUS- gal coordination of expenditures by the DNC Three judges shall be assigned for a period TICE, DEFENDANT. on its television advertising campaign. of three years to a division of the United COMPLAINT B. Conspiracy to Violate and Evade the Cam- States Court of Appeals for the District of paign Finance Laws. There is specific and Plaintiffs, by counsel, complain as follows: Columbia to be the special court for the pur- credible evidence that the President, Vice COME NOW Plaintiffs, and for cause of ac- pose of appointing independent counsels. President, and other high-ranking officials tion against Defendant, allege as follows: This shall not be a bar to other judicial as- acted in concert to violate the Federal Elec- signments. Assignment shall be by lottery. JURISDICTION tion Campaign Act. Vacancies shall be filled by lottery only for 1. This court has jurisdiction by reason of III. The Failure of the Department of Justice’s the remainder of the assignment. These (1) 28 U.S.C. section 1361, which confers juris- Investigation and Estoppel of the Attorney Gen- judges shall not be eligible to participate in diction over any action in the nature of man- eral. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7783 A. Failure of the Department of Justice’s preparing to make an official visit to China 21. After signing the pledge, President Campaign Finance Investigation. After over in late February. Mr. Ruff’s letter stressed Clinton actively participated in raising one year of investigation, the Justice De- that he did not want information that might funds for the DNC beyond these limits. Ac- partment’s campaign finance task force has interfere with ‘‘any criminal investigation.’’ cording to Federal Election Commission suffered a series of embarrassments and can 13. The New York Times reported (March records, the President helped raise $27 mil- point to little visible achievement. If a cred- 25, 1997) that F.B.I. and Justice Department lion in hard and soft money for the DNC ible investigation is to take place, it must be officials prepared a thorough response to Mr. through the White House coffees, and an ad- done by an independent counsel. Ruff’s letter but, at the request of F.B.I. Di- ditional $6 million in hard and soft money B. Estoppel of the Attorney General. Attor- rector Freeh, this response was never sent. for the DNC from overnight guests in the ney General Reno has stated before Congress As a result, Secretary of State Albright was Lincoln Bedroom. that there is an inherent conflict whenever denied critical information at a time when 22. President Clinton also actively partici- senior Executive Branch officials are to be she was embarking upon a diplomatic mis- pated in spending DNC money through close investigated by the Justice Department and sion to Beijing. coordination with the DNC of the expendi- its appointed head, the Attorney General. 14. In response to this decision to withhold tures made on a major television advertising Furthermore, Attorney General Reno has, this information from the Secretary of campaign. until the present, complied with the view she State, President Clinton stated on March 26, 23. Former White House Chief of Staff Leon expressed before Congress by appointing 1997 that, ‘‘I think everyone understands Panetta, appearing on the March 9, 1997 edi- independent counsels to investigate Execu- that there are significant national security tion of NBC’s ‘‘Meet the Press,’’ acknowl- tive Branch officials on four separate occa- issues at stake here and that the White edged that President Clinton helped direct sions. Given the Attorney General’s state- House, the National Security Council, and the expenditure of approximately $35 million ments and pattern of behavior, and Congress’ the Secretary of State, as well as the Presi- in DNC soft money on television campaign detrimental reliance thereon, Attorney Gen- dent, need to know when the national secu- commercials. 24. Former Presidential advisor Richard eral Reno is estopped from refusing to ap- rity issues are brought into play.’’ Morris, in his book Behind the Oval Office (p. point an independent counsel in the instant 15. On April 30, 1997, Attorney General 144), describes his first-hand knowledge of case. Janet Reno appeared before the Senate Judi- ciary Committee for an oversight hearing. the coordination which took place between I. NATIONAL SECURITY INFORMATION WITHHELD At this hearing, Senator Arlen Specter ques- President Clinton and the DNC: ‘‘[T]he Presi- FROM THE PRESIDENT AND SECRETARY OF tioned the Attorney General about these re- dent became the day-to-day operational di- STATE ports that the FBI and the Justice Depart- rector of our TV-ad campaign. He worked over every script, watched each ad, ordered 8. The Federal Election Campaign Act pro- ment had withheld national security infor- changes in every visual presentation, and de- vides that ‘‘it shall be unlawful for a foreign mation from President Clinton and the Sec- cided which ads would run when and where. national directly or through any other per- retary of State because the President is a He was as involved as any of his media con- son to make any contribution of money or subject in a criminal investigation. In re- sultants were. The ads became not the slick other thing of value . . . in connection with sponse, Attorney General Reno acknowl- creations of admen but the work of the presi- an election to any political office. . . .’’ 2 edged that Director Freeh had told National dent himself. . . . Every line of every ad U.S.C. 441e(a). A ‘‘foreign national’’ is de- Security Advisor Sandy Berger that ‘‘he came under his informed, critical, and often fined as someone who is not a citizen of the [Freeh] would not go into certain matters meddlesome gaze. Every ad was his ad.’’ United States and who is not lawfully admit- because of the ongoing criminal investiga- ted for permanent residence in the United 25. Section 441a(a)(7)(B)(I) of FECA states tion.’’ that: ‘‘Expenditures made by any person in States. 2 U.S.C. 441e(b). 16. In an op-ed piece published in the Wash- 9. National Security Information Withheld cooperation, consultation, or concert, with, ington Post on May 22, 1997, Senator Arlen or at the request or suggestion of, a can- from the President. On June 3, 1996, the F.B.I. Specter noted the inconsistency in Attorney briefed two members of the White House Na- didate, his authorized political committees, General Reno’s position: ‘‘Since the facts of or their agents, shall be considered to be a tional Security Council (the ‘‘N.S.C.’’) on in- the underlying investigation are sufficiently telligence of Chinese Government efforts to contribution to such candidate.’’ By this serious in the judgement of the Attorney standard, all of the money spent by the buy influence in the United States govern- General to deny the president ‘significant ment through political contributions. Also Democratic National Committee (‘‘DNC’’) on national security’ data, how can they pos- express advocacy commercials, as defined in June, the F.B.I. provided individual, clas- sibly be insufficiently ‘credible’ and ‘specific’ sified briefings to 6 members of Congress, under FECA, that were designed, edited and/ to justify not appointing independent coun- or purchased in consultation and co-ordina- warning them that they may have been tar- sel?’’ geted by the Chinese Government to be the tion with the Clinton campaign and the II. CRIMINAL VIOLATIONS recipients of illegal campaign contributions. President personally were contributions to 10. President Clinton was not informed of 17. There is specific and credible evidence the Clinton campaign under FECA. The the F.B.I. briefing to the N.S.C. and became that the President and Vice President have President knowingly violated FECA by (1) aware of it only after reading a February, committed criminal violations of the Fed- coordinating the contributions by the DNC 1997 report in the Washington Post. After eral Election Campaign Act (‘‘FECA’’). The and (2) accepting and expending contribu- learning about the June briefing, President Attorney General has therefore violated the tions in violation of his commitment to Clinton explained on March 10, 1997, that the letter and the spirit of the Independent limit expenditures to the public financing. 26. Violations of FECA are criminal viola- two N.S.C. officials had not reported the Counsel Statute by failing to appoint an tions when they are done ‘‘knowingly and F.B.I. briefing to their superiors because the independent counsel to investigate these al- willfully’’ and involve contributions or ex- F.B.I. agents involved, ‘‘asked that they [the legations. penditures aggregating $2,000 or more. 2 N.S.C. officials] not share the briefing, and A. Illegal Coordination of Expenditures of DNC U.S.C. 437g(d)(1)(A). they honored the request.’’ Also on March 10, Money by President Clinton 27. The Federal Election Commission has White House Press Secretary Michael 18. There is specific and credible evidence defined express advocacy ads as: ‘‘Commu- McCurry stated that the two N.S.C. officials that President Clinton committed a criminal nications using phrases such as ‘vote for who received the briefing were ‘‘adamant in violation of FECA by personally drafting, ed- President,’ ‘reelect your Congressman,’ recalling specifically that they were urged iting, and planning a series of television ad- ‘Smith for Congress,’ or language which, by [by the FBI] not to disseminate the infor- vertisements paid for by Democratic Na- when taken as a whole and with limited ref- mation outside the briefing room.’’ tional Committee soft money. erence to external events, can have no other 11. President Clinton further stated on 19. ‘‘Hard money’’ is money which is raised reasonable meaning that to urge the election March 10 that such national security infor- pursuant to the caps, restrictions, and re- or defeat of a clearly identified federal can- mation should not have been withheld from porting requirements of FECA. Hard money didate.’’ 11 CFR 100.22. him. The President stated, ‘‘I should have can be spent in connection with a specific 28. On April 30, 1997, Attorney General known. No, I did not know. If I had known, campaign for Federal office. ‘‘Soft money’’ is Janet Reno appeared before the Senate Judi- I would have asked the N.S.C. and the chief money that is not governed by the restric- ciary Committee for an oversight hearing. of staff to look at the evidence and make tion of FECA and can therefore be raised in At this hearing, Senators Arlen Specter and whatever recommendations were appro- unlimited amounts. Soft money cannot be Fred Thompson questioned the Attorney priate.’’ spent in connection with specific campaigns General about the coordination between the 12. National Security Information Withheld for Federal office and must be used for gen- DNC and the President. The Attorney Gen- from the Secretary of State. On February 18, eral party building activities. eral acknowledged that coordination be- 1997 White House Counsel Charles Ruff wrote 20. As one of the conditions for receiving tween President Clinton and the DNC ‘‘was to Deputy Attorney General Jamie Gorelick $61.8 million in Federal funding for their 1996 presumed at the time by the FEC.’’ The At- asking for information about the possible in- general election campaign, President Clinton torney General further stated that ‘‘it would volvement of Chinese officials and citizens in and Vice President Gore signed a letter to be the content’’ which controlled whether or a purported plan to make illegal contribu- the Federal Election Commission in which not the law was violated, thereby acknowl- tions to American political campaigns. He they pledged that in exchange for the Fed- edging that such coordination would be ille- sought this information in order to brief Sec- eral funding they would not spend any addi- gal if the advertisements so produced were retary of State Madeline Albright, who was tional money on their campaign. advocacy ads. S7784 CONGRESSIONAL RECORD — SENATE June 29, 1999 29. Senator Specter then asked Attorney The Dole/Gingrich budget tried to cut Medi- were captured on videotape: ‘‘Now we have General Reno the following question: care $270 billion. Protect families. President come way back. . . . But one of the reasons Attorney General Reno . . . I ask you if Clinton cut taxes for millions of working has been . . . we have been running these this advertisement . . . can be anything families. The Dole/Gingrich budget tried to ads, about a million dollars a week. . . . So other than express advocacy. . . . It reads as raise taxes on eight million of them. Oppor- I cannot overstate to you the impact that follows: tunity. President Clinton proposed tax these paid ads have had in the areas where ‘Head Start, student loans, toxic cleanup, breaks for tuition. The Dole/Gingrich budget they’ve run. Now we’re doing better in the extra police, anti-drug programs—Dole-Ging- tried to slash college scholarships. Only whole country. . . . [I]n areas where we’ve rich wanted them cut. Now, they’re safe, pro- President Clinton’s plan meets our chal- shown these ads we are basically doing ten tected in the 1996 budget because the presi- lenges, protects our values. to fifteen points better than in areas where dent stood firm. Dole-Gingrich—deadlock, ‘60,000 felons and fugitives tried to buy we are not showing them. . . . And then we gridlock, shutdowns. The president’s plan— handguns—but couldn’t—because President realized that we could run these ads through finish the job, balance the budget, reform Clinton passed the Brady Bill—five-day the Democratic Party which meant that we welfare, cut taxes, protect Medicare. Presi- waits, background checks. But Dole and could raise money in twenty and fifty and dent Clinton gets it done. Meet our chal- Gingrich voted no. One hundred thousand hundred thousand dollar lots, and we didn’t lenge, protect our values.’ new police—because President Clinton deliv- have to do it all in thousand dollars and run Can that possibly be language taken as a ered. Dole and Gingrich? Vote no, want to re- down—you know—what I can spend which is whole which does anything other than urge peal ’em. Strengthen school anti-drug pro- limited by law. the election expressly of President Clinton? grams. President Clinton did it. Dole and 34. The facts outlined above constitute suf- 30. In response to this question, the fol- Gingrich? No again. Their old ways don’t ficient specific and credible evidence to lowing exchange took place between Attor- work. President Clinton’s plan. The new make a prima facie case that the President ney General Reno and Senator Specter: way. meeting our challenges, protecting our committed criminal violations of FECA RENO: Based on the processes that have values. through the knowing and wilful coordination been established by the Department of Jus- ‘America’s values. Head Start. Student of the expenditure of DNC soft money. The tice, the MOU with the elections commis- loans. Toxic cleanup. Extra police. Protected Attorney General has therefore violated the sion, this is a situation in which we would the budget agreement; the president stood letter and the spirit of the Indpendent Coun- not find specific and credible evidence that a firm. Dole, Gingrich’s latest plan includes sel statute by failing to appoint an inde- crime had been committed that would justify tax hikes on working families. Up to 18 mil- pendent counsel to investigate these allega- triggering the statute. lion children face health care cuts. Medicare tions. SPECTER: Well, Attorney General Reno, slashed $167 billion. Then Dole resigns, leav- B. Conspiracy to Violate and Evade the that is conclusory. A critical step along the ing behind gridlock he and Gingrich created. Campaign Finance Laws. way is your legal judgment as to whether The president’s plan: Politics must wait. 35. 18 U.S.C. 371 provides that a conspiracy that is express advocacy. Balance the budget, reform welfare, protect to commit an offense against the United RENO: At this point, the career lawyers our values. States is a criminal offense punishable by up who have worked on this issue, who are fa- ‘Head Start. Student Loans. Toxic Clean- to 5 years in prison. Participation in a con- miliar with the election law, I have met with up. Extra police. Anti-drug programs. Dole, spiracy to violate the Federal campaign fi- them. We have discussed it, and they do not Gingrich wanted them cut. Now they’re safe. nance laws is therefore a criminal violation. believe that it could support a prosecution. Protected in the ’96 budget—because the 36. After the Democrats lost control of SPECTER: Are you familiar with these president stood firm. Dole, Gingrich? Dead- both houses of Congress in the 1994 elections, ads, Attorney General Reno? lock. Gridlock. Shutdowns. The president’s President Clinton and his associates realized RENO: I have not seen the ads. I have read plan? Finish the job, balance the budget. Re- that in order to win reelection in 1996, the what could be called the transcripts of the form welfare. Cut taxes. Protect Medicare. Clinton campaign would need to raise large ads. President Clinton says get it done. Meet our sums of money. President Clinton’s former SPECTER: Well, can you say—listen, I challenges. Protect our values. senior advisor, George Stephanopoulos, don’t have to make a point that you’re the ‘The President says give every kid a wrote in Newsweek (March 10, 1997) that attorney general. You have career lawyers. chance for college with a tax cut that gives President Clinton’s reelection would ‘‘take Have you gone over these ads with them spe- $1,500 a year for two years, making most cash, tons of it, and everybody from the cifically to ask them? community colleges free, all colleges more President on down knew it. So money be- RENO: I have specifically gone over the affordable . . . And for adults, a chance to came a near obsession at the highest levels. ads. I have read the ads and have discussed learn, find a better job. The president’s tui- We pulled out all the stops: overnights at the the ads and discussed what is involved. tion tax cut plan. SPECTER: And have your career lawyers ‘Protecting families. For million of work- White House, coffees, intimate dinners at told you that the ad I just read to you is not ing families, President Clinton cut taxes. Washington hotels, you name it.’’ 37. As the events detailed below reveal, express advocacy? The Dole-Gingrich budget tried to raise RENO: What they have told me is that taxes on eight million. The Dole-Gingrich ‘‘pulling out all of the stops’’ included ignor- based on their understanding of the law, budget would have slashed Medicare $270 bil- ing the Federal election law. Accordingly, their structure of the election law, that we lion. Cut college scholarships. The president the White House plan to aggressively pursue could not sustain a prosecution. defended our values. Protect Medicare. And campaign contributions was, in practice, a SPECTER: Well, I understand your conclu- now, a tax cut of $1,500 a year for the first conspiracy to evade and violate the Federal sion. But my question to you is a lot more two years of college. Most community col- election laws. 38. The acts detailed below were all acts in specific than that: Have you gone over that leges free. Help adults go back to school. The furtherance of this conspiracy. There is spe- ad with your career prosecutors, and they president’s plan protects our values.’ cific and credible evidence that President told you that was issue advocacy . .. 32. By letter dated June 19, 1997, Attorney RENO: No, I have not. General Reno refused to respond to Senator and Vice President participated in this con- SPECTER: Well, Attorney General Reno, I Specter’s request and instead referred the re- spiracy by trading access to the President, would like to submit these to you, and I quest to the Federal Election Commission Vice President and other Executive Branch would like you to give us your judgment as (‘‘FEC’’). A true and correct copy of the June officials for political contributions, trading to whether they are express advocacy or 19, 1997 letter is attached as Exhibit . All of access to the White House for political con- not—your judgment on them. . . . And this is the contents of the attached letter are here- tributions, engaging in fundraising activities not a judgment for the Federal Election by incorporated by reference as part of the from Federal property, granting public office Commission alone. This is jurisdiction for factual and evidentiary basis for the relief for political contributions, and soliciting the attorney general of the Department of sought in this complaint. By letter dated campaign contributions from illegal sources. Justice, because the Federal Election Com- June 26, 1997, the FEC responded that it Use of the White House for Fundraising—The mission statute has criminal penalties. would not respond to Senator Specter’s in- May 1 Coffee 31. Senator Arlen Specter wrote to Attor- quiry because the letter was not in the form 39. President Clinton personally engaged in ney General Reno on May 1, 1997 requesting of a formal complaint to the Commission. A fundraising activities from the executive of- a legal judgment as to whether the ads in true and correct copy of the June 26, 1997 let- fices of the White House. On April 29, 1997, question constitute express advocacy. A true ter is attached as Exhibit . All of the con- the Democratic National Committee and correct copy of the May 1, 1997 letter is tents of the attached letter are hereby incor- (‘‘DNC’’) sent a memorandum to President attached as Exhibit . All of the contents of porated by reference as part of the factual Clinton which identified five individuals in- the attached letter are hereby incorporated and evidentiary basis for the relief sought in vited to attend a May 1 coffee at the White by reference as part of the factual and evi- this complaint. House. The following personal note is typed dentiary basis for the relief sought in this 33. The President conceded that these DNC at the top of the memo, ‘‘Mr. Presi- complaint. Senator Specter included in his ads were advocacy advertisements intended dent. . . the five attendees of this coffee are letter the following texts of the DNC adver- to further his candidacy in remarks he made $100,000 contributors to the DNC.’’ In addi- tisements: at a December 7, 1995 DNC luncheon at the tion, there is a notation on the first page of ‘American values. Do our duty to our par- Hay Adams Hotel in Washington. The Presi- the memo which reads, ‘‘President has seen, ents. President Clinton protects Medicare. dent said the following in remarks which 5/1/96.’’ A true and correct copy of the April June 29, 1999 CONGRESSIONAL RECORD — SENATE S7785 29, 1997 memorandum is attached hereto as million to the DNC over the course of the President Clinton dating back to his days as Exhibit . All of the contents of the attached year. governor of Arkansas. 47. On October 29 or 30, Mr. Ickes called Mr. memorandum are hereby incorporated by 55. The Lippo Group has extensive invest- Meddoff again and asked for an immediate reference as part of the factual and evi- ments and contacts throughout China and is contribution of $1.5 million within 24 hours. dentiary basis for the relief sought in this currently involved in dozens of large-scale On the next morning, Mr. Ickes sent Mr. complaint. joint ventures in China, including construc- 40. On May 1, 1996, President Clinton held a Meddoff a fax with detailed instructions on tion and development of apartment com- coffee in the Oval Office which was attended where to send the money. Mr. Ickes later plexes, office buildings, highways, ports, and by the five individuals listed in the DNC called Mr. Meddoff and requested that he other infrastructure. Appearing before the memo. Federal Election Commission shred the fax. Senate Governmental Affairs Committee on (‘‘FEC’’) filings show that within one week of Mr. Roger Tamraz’s Contributions July 15, 1997, Mr. Thomas Hampsen, presi- the coffee, four of the five attendees (Peter 48. Appearing before the Senate Govern- dent of a business research and investigation Mathias, Samuel Rothberg, Barrie Wigmore, mental Affairs Committee on September 18, firm, testified that ‘‘the record is very clear and Robert Menschel) had contributed 1997, Mr. Roger Tamraz testified that he gave that the Lippo Group has shifted its stra- $100,000 each to the DNC. A true and correct a total of $300,000 in contributions to the tegic center from Indonesia to the People’s copy of a printout from the FEC database of DNC and state Democratic parties during the Republic of China.’’ Mr. Hampsen noted that contributors is attached hereto as Exhibit . 1996 campaign. On March 28, 1996, at Mr. Lippo’s principal partner in China is ‘‘China All of the contents of the attached printout Tamraz’s request, the DNC’s Richard Sul- Resources,’’ a company wholly owned by the are hereby incorporated by reference as part livan drafted a memorandum to Mr. Tamraz Chinese Government. Mr. Hampsen further of the factual and evidentiary basis for the listing the Democratic entities to which Mr. testified that ‘‘the People’s Republic of relief sought in this complaint. Tamraz had contributed and the amounts he China uses China Resources as an agent of Use of the White House for Fundraising— had contributed to each entity as of that espionage, economic, military, and polit- Overnights in the Lincoln Bedroom date. A true and correct copy of the March ical.’’ 41. President Clinton used the opportunity 28, 1996 memorandum is attached hereto as 56. Documents from the Lippo Group and to spend the night at the White House as a Exhibit . All of the contents of the attached its subsidiaries show that, upon leaving the tool to raise funds from large contributors. memorandum are hereby incorporated by Lippo Group for a much lower paying job at The overnights in question were arranged by reference as part of the factual and evi- the Commerce Department, Huang received the Democratic National Committee, not the dentiary basis for the relief sought in this a bonus of over $700,000. A true and correct President, and thus do not fall into the cat- complaint copy of the Lippo Group documents detailing egory of the President using his residence to 49. In his September 18 testimony, Mr. John Huang’s bonus are attached hereto as entertain friends. Tamraz stated that ‘‘the only reason’’ he Exhibit . All of the contents of the attached 42. White House records indicate that be- contributed this money was to gain access to documents are hereby incorporated by ref- tween 1993 and 1996, 178 individuals who were the President and senior government offi- erence as part of the factual and evidentiary not personal friends of the President or First cials. Mr. Tamraz was promoting a plan to basis for the relief sought in this complaint. Family spent the night at the White House. build an oil pipeline from the Caspian Sea re- These 178 individuals contributed a total of gion of Central Asia to the Mediterranean 57. Records from the U.S. Secret Service over $5 million to the DNC during the ’96 and was hoping to receive assistance from show that during his tenure at the Com- election cycle. A true and correct copy of the the Federal government. merce Department, and despite the fact that list of 178 overnight guests provided by the 50. Mr. Tamraz further testified that, fol- he was a relatively low level functionary White House to the Senate Governmental Af- lowing this donation, Mr. Tamraz was in- there, Huang made 67 visits to the White fairs Committee is attached hereto as Ex- vited to six social functions at the White House. A true and correct copy of a list of hibit . All of the contents of the attached House. At one of these events, he spoke to the dates on which the visits took place and, list are hereby incorporated by reference as President Clinton briefly about the proposed where available, the visitee is attached here- part of the factual and evidentiary basis for pipeline. Asked whether or not he got his to as Exhibit . All of the contents of the at- the relief sought in this complaint ‘‘money’s worth’’ for the $300,000 he gave, Mr. tached list are hereby incorporated by ref- 43. The Senate Governmental Affairs Com- Tamraz replied, ‘‘I think next time I’ll give erence as part of the factual and evidentiary mittee obtained a list of the dates on which $600,000.’’ basis for the relief sought in this complaint. 51 of these 178 individuals spent the night in 51. Appearing before the Senate Govern- 58. While he was at the Commerce Depart- the White House. Of these 51 individuals, 49 mental Affairs Committee on September 17, ment, Huang was given top secret security contributed a total of over $4 million to the 1997, Ms. Sheila Heslin, a former official with clearance. Appearing before the Senate Gov- DNC during the 1996 election cycle. Further- President Clinton’s National Security Coun- ernmental Affairs Committee on July 16, more, of these 38 families represented by cil, testified that she was concerned about 1997, Mr. John H. Dickerson, a CIA agent who these 51 individuals, 37 families, or 98%, con- Mr. Tamraz’s ‘‘shady reputation’’ and ad- handled issues relating to the Commerce De- tributed to the DNC during the 1996 election vised the White House not to agree to any partment, testified that he gave John Huang cycle. 21 of the 38 families, or over 50% per- formal policy meetings with him. 37 confidential intelligence briefings in cent, contributed a total of $900,000 to the 52. Ms. Heslin further testified that she re- which he showed Huang hundreds of con- DNC within one month of their stay at the ceived calls to pressure her to drop her oppo- fidential documents. Mr. Dickerson further White House. A true and correct copy of this sition to Roger Tamraz from Don Fowler of testified that he gave Mr. Huang 12 finished list of 51 overnight guests is attached hereto the Democratic National Committee, Jack intelligence reports—10 classified ‘‘secret’’ as Exhibit . All of the contents of the at- Carter of the Department of Energy, and a and 2 classified ‘‘confidential’’—which Mr. tached list are hereby incorporated by ref- CIA officer referred to publicly as ‘‘Bob of Huang kept in his possession until the end of erence as part of the factual and evidentiary the CIA.’’ Ms. Heslin testified, for example, his tenure at the Commerce Department. Mr. basis for the relief sought in this complaint. that Jack Carter told her that ‘‘he [Mr. Dickerson further stated that Huang had a Tamraz] has already given $200,000, and if he The Solicitation of R. Warren Meddoff particular interest in China and Taiwan. 44. Appearing before the Senate Govern- got a meeting with the President, he would 59. Appearing before the Senate Govern- mental Affairs Committee on September 19, give the DNC another $400,000.’’ When Ms. mental Affairs Committee on July 17, 1997, 1997, Mr. Warren Meddoff testified to the Heslin persisted in her opposition, Mr. Carter Mr. John H. Cobb, an attorney with the staff facts set forth in paragraphs 35, 36 and 37 told her not to be ‘‘such a Girl Scout.’’ of the Governmental Affairs Committee, tes- below. Mr. John Huang in the Commerce tified that Mr. Huang had over 300 contacts 45. At a fund-raising dinner on October 22, Department and the DNC (phone conversations, faxes and meetings) 1996 at the Biltmore Hotel in Coral Gables, 53. On July 18, 1994, John Huang began to with the Lippo Group and Lippo-related indi- Florida, Mr. Meddoff handed one of his busi- serve as the Deputy Assistant Secretary for viduals during his tenure at the Commerce ness cards to President Clinton with the fol- International Trade and Economic Policy at Department. Many of these calls were made lowing message written on the back of the the U.S. Department of Commerce. Huang’s from his Commerce Department office. In ad- card, ‘‘I have an associate that it interested supervisor at the Commerce Department, dition, other calls were made from the of- in donating $5 million to your campaign.’’ Commerce Undersecretary Jeffrey Garten, fices of Stephen’s, Inc., a Little Rock-based 46. After reading this message, the Presi- found Huang ‘‘totally unqualified’’ for his investment bank with an office across the dent stopped to speak with Mr. Meddoff and position and limited his activities to admin- street from the Commerce Department, stated that someone from his staff would istrative duties. contact him. Two days later, on October 24, 54. Prior to working at the Commerce De- where Huang regularly went to send and re- the President’s Deputy Chief of Staff, Mr. partment, John Huang had been the chief ceive faxes and make phone calls. Harold Ickes, called Mr. Meddoff and left a U.S. representative of the Lippo Group. The 60. Shortly after he left the Commerce De- message on his answering machine. On Octo- Lippo Group is a multi-billion dollar firm partment in December, 1995, John Huang was ber 26, Mr. Ickes called Mr. Meddoff again, based in Indonesia with large investments in appointed Finance Vice-Chairman of the this time from Air Force One, and discussed the Far East and China. The Lippo Group is DNC. During his 9 months at the DNC, he the possibility that an associate of Mr. controlled by Mochtar and James T. Riady, raised $3.4 million, nearly half of which was Meddoff would contribute as much as $55 longtime friends and financial backers of returned as illegal, inappropriate or suspect. S7786 CONGRESSIONAL RECORD — SENATE June 29, 1999 John Huang’s Solicitation of Funds in the DNC. Making contributions ‘‘in the name of nology, missile sales and rocket launches. Presence of the President in the White House another person’’ is prohibited by FECA. 2 Contracts to launch American satellites are 61. In his appearance before the Senate U.S.C. 441f. crucial to the financial viability of these Governmental Affairs Committee on Sep- Vice President Gore and the Hsi Lai ventures. (The New York Times, 5/15/98) tember 16, 1997, Mr. Karl Jackson, a former Buddhist Temple Fundraiser 74. Democratic fundraiser Johnny Chung Assistant to the Vice President for National 68. Vice President Gore appeared at a fund- has told Department of Justice investigators Security Affairs from 1991 to 1993, testified raiser in the Hsi Lai Buddhist Temple in Los that an executive from China Aerospace that Mr. John Huang solicited money in Angeles on April 29, 1996. The fundraiser at named Liu Chao-Ying gave him $300,000 to front of and within hearing distance of the the Temple was illegal since the Temple is a donate to the Democrats’ 1996 campaign. Ac- President in the White House. Mr. Jackson tax-exempt institution which cannot engage cording to Mr. Chung, Ms. Liu told him that was present at a coffee held in the Map Room in political activity. The Vice President has the money originated with Chinese military of the White House on June 18, 1996 at which maintained that he did not know that the intelligence. Mr. Chung has stated that he the President, John Huang, and eleven oth- event at the Temple was a fundraiser. funneled $100,000 of this money into Demo- ers were present. Mr. Jackson testified that 69. There is evidence that Vice President cratic party coffers. (The New York Times, 5/ after everyone had taken their seats and Gore did know ahead of time that the Hsi 16/98) were listening to opening comments, Mr. Lai Temple event was a fundraiser. In a dep- 75. Liu Chao-Ying is a lieutenant colonel in Huang stood up and said, ‘‘Elections cost osition taken by the Senate Governmental China’s People’s Liberation Army and vice- money, lots and lots of money, and I am sure Affairs Committee on August 6, 1997, the president of China Aerospace International that every person in this room will want to Venerable Man-Ho, an administrative assist- Holdings, Ltd., the Hong Kong arm of China support the re-election of President Clin- ant at the Hsi Lai Buddhist Temple, stated Aerospace Corporation. Ms. Liu’s father, ton.’’ that on March 15, 1996, there was a meeting General Liu, was China’s top military officer 62. A photograph taken of all of the at the White House between Vice President and a member of the Politburo of China’s attendees of the June 18 coffee at their seats Gore, Hsi Lai Temple Venerable Master Communist party. (The New York Times, 5/ demonstrates that Mr. Jackson, who heard Hsing Yun, John Huang, and Maria Hsia. The 15/98) 76. Johnny Chung brought Ms. Liu to two Mr. Huang clearly, sat four seats away from Los Angeles Times (9/5/97) has reported that fundraisers attended by the President on Mr. Huang. The President was seated next to Gore was invited to visit the Temple during July 22, 1996. The first fundraiser was a $1,000 Mr. Jackson and only three seats away from this meeting. The involvement at the meet- a plate affair at the Beverly Hilton. The sec- Mr. Huang. The President did not object to ing of Huang (a DNC fundraiser) and Hsia (a ond fundraiser was a $25,000 per couple din- Mr. Huang’s comments or disassociate him- long-time Gore fundraiser) should have sug- ner at the home of a private donor. At the self from them. A true and correct copy of gested to Gore that the Temple event was dinner, Ms. Liu had her picture taken with the photograph and a legend are attached planned as a fundraiser from the beginning. President Clinton. (The New York Times, 5/ hereto as Exhibit . All of the contents of The presence of Huang and Hsia at the Tem- the attached photograph and legend are 15/98) ple when Gore arrived should have further 77. Two American companies, Loral Space hereby incorporated by reference as part of suggested to Vice President Gore that this and Communications Ltd. and Hughes Elec- the factual and evidentiary basis for the re- event was a fundraiser. tronic Corp., also benefited from the waivers lief sought in this complaint. 70. Following the March 15 meeting, Vice and eased export restrictions on commercial President Gore responded via e-mail to an Mr. Wang Jun and the Possible Laundering satellites. These companies wanted permis- aide (Kimberly H. Tilley) who inquired about of Foreign Contributions sion to launch their satellites on Chinese whether the Vice President could attend a 63. Mr. Wang Jun is the chairman of the rockets to cut costs and shorten the waiting New York event the night before the April 29 state-owned China International Trade and period prior to launch. These companies re- Los Angeles trip. In his e-mail, Vice Presi- Investment Corp. (‘‘CITIC’’), a $21 billion peatedly lobbied the White House to allow dent Gore stated ‘‘If we have already booked conglomerate. One of CITIC’s subsidiaries, them to launch their satellites on Chinese the fundraisers, then we have to decline.’’ Poly Technologies, is one of Beijing’s leading rockets. (The New York Times, 5/17/98) weapons companies and has been tied to an This demonstrates that the Vice President 78. In 1996, a rocket carrying a $200 million attempt to smuggle $4 million worth of AK– knew that the Temple event was a fund- Loral satellite crashed upon launch from 47s into the United States. Wang Jun is the raiser, since he used the plural term ‘‘fund- China. Following this crash, scientists from son of Wang Zing, who was the Vice Presi- raisers’’ and the only acknowledged fund- Loral and Hughes allegedly advised the Chi- dent of China. raiser he attended on April 29 was a dinner at nese on how to improve their guidance sys- 64. In a deposition taken by the Senate a home near San Jose. A true and correct tems by sharing technology that had not Governmental Affairs Committee on June 18, copy of a print-out of the Vice President’s e- been cleared for export. (The Washington 1997, Ernest Green, a managing director of mail message to Kimberly Tilley is attached Post, 5/17/98) A classified Pentagon report the Washington office of Lehman Brothers hereto as Exhibit . All of the contents of concluded that the technology transferred to investment bank, stated that he had written the attached print-out are hereby incor- the Chinese by these companies can be used a letter to Wang Jun inviting him to the porated by reference as part of the factual to significantly improve the accuracy of Chi- United States. At the time, Lehman Broth- and evidentiary basis for the relief sought in na’s long-range missiles aimed at the United ers was competing for underwriting business this complaint. States. (The Chicago Tribune, 4/13/98) in the vastly expanding Chinese market. 71. The facts outlined above constitute suf- 79. The Justice Department started a 65. On February 5, 1996, a copy of Wang ficient specific and credible evidence to criminal investigation to determine if Loral Jun’s bio was faxed to the DNC from Lehman make a prima facie case that the President, and Hughes had illegally transferred tech- Brothers’ offices. A true and correct copy of Vice President, and other high-ranking exec- nology to the Chinese. That investigation the fax of Wang Jun’s bio received by the utive branch officials conspired to violate was still underway in February, 1998, when DNC is attached hereto as Exhibit . All of the Federal campaign finance laws in order Hughes and Loral petitioned the White the contents of the attached fax are hereby to raise large sums of money to spend on the House for another waiver to launch a sat- incorporated by reference as part of the fac- 1996 presidential campaign. The Attorney ellite from China. The Justice Department tual and evidentiary basis for the relief General has therefore violated the letter and objected to this waiver, arguing that its abil- sought in this complaint. the spirit of the Independent Counsel Stat- ity to pursue its investigation would be se- 66. On February 6, 1996, Wang Jun attended ute by failing to appoint an independent verely hindered if the government allowed a coffee with President Clinton at the White counsel to investigate these allegations. Loral and Hughes to return to China under House. On the morning of this coffee, Mr. Johnny Chung, Loral, Inc. and the the same arrangement they had allegedly Green contributed $50,000 to the DNC. A true Launching of American Satellites by China abused two years earlier. The White House and correct copy of the check signed by Mr. 72. On March 14, 1996, the White House an- granted the waiver. (The Washington Post, 5/ Green’s wife, Phyllis Clause-Green, is at- nounced that President Clinton had decided 17/98) tached hereto as Exhibit . All of the con- to transfer control over export licensing for 80. According to an official familiar with tents of the attached check are hereby incor- communications satellites from the State this investigation, the White House decision, porated by reference as part of the factual Department to the Commerce Department. ‘‘just about killed a major investigation in- and evidentiary basis for the relief sought in This decision makes it much easier for volving a very sensitive national security this complaint. American companies to get permission to ex- issue. On the one hand you have investiga- 67. In his June 18, 1996 deposition, Mr. port their satellites to be launched by Chi- tors and prosecutors needing to be taken se- Green testified that towards the end of Feb- nese rockets. (The New York Times, 5/17/98). riously so they can gather information, and ruary, he received a bonus of approximately In February, 1998, the White House gave per- then on the other hand the White House is $50,000 from Lehman Brothers. Mr. Green had mission to Loral Space and Communications saying that suspicions . . . are not serious already received a bonus of $114,961 on Feb- Ltd. to launch one of its satellites on a Chi- enough to keep these companies from going ruary 1, 1996. The grant of a $50,000 bonus so nese rocket. (The Washington Post, 5/17/98) back and doing it all over again.’’ (The quickly following Mr. Green’s $50,000 dona- 73. One of the parties that benefitted from Washington Post, 5/17/98) tion to the D.N.C. gives rise to the inference the waivers and eased export restrictions is 81. Loral’s Chief Executive Officer, Bernard that Lehman Brothers, not Mr. Green, was China Aerospace Corporation, a state-owned L. Schwartz, was the single largest donor to the true source of the contribution to the company with interests in satellite tech- the Democratic party in 1996. According to June 29, 1999 CONGRESSIONAL RECORD — SENATE S7787 the Center for Responsive Politics, Mr. these contributions as part of a plan of the same May 14, 1993 reauthorization hearing, Schwartz gave $632,000 in ‘‘soft money’’ dona- government of China to buy influence in the stated: ‘‘The Independent Counsel Act was tions to the DNC in advance of the 1996 elec- United States government through political designed to avoid even the appearance of im- tions. (The Washington Post, 5/17/98). Accord- contributions. According to Senator Arlen propriety in the consideration of allegations ing to the Center for Responsive Politics, Specter, FBI Director Freeh further advised of misconduct by high-level Executive Mr. Schwartz has given an additional $421,000 the Committee that one of the reports upon Branch officials and to prevent, as I have to Democrats in the current election cycle. which the briefing was based had been in the said, the actual or perceived conflicts of in- (The Washington Post, 5/6/98) FBI’s files for over two years, since Sep- terest. The Act thus served as a vehicle to III. BEHAVIOR OF THE ATTORNEY GENERAL AND tember/October 1995, and a second report had further the public’s perception of fairness THE DEPARTMENT OF JUSTICE been on file since January, 1997. and thoroughness in such matters, and to 90. On September 16, 1997, Senator Arlen avert even the most subtle influences that A. Failure of the Justice Department’s Specter made the following comments about Campaign Finance Investigation may appear in an investigation of highly- the September 11 briefing from the floor of placed Executive officials.’’ 82. Attorney General Reno has repeatedly the Senate: ‘‘In those briefings, Senators 97. During most of her tenure in office, At- insisted that there is no need to appoint an learned that the Department of Justice had torney General Reno has interpreted the Act independent counsel to investigate the cam- critical information in its files for a long in a manner consistent with these state- paign finance activity during the 1996 presi- time on the issue of possible illegal foreign ments. On seven previous occasions she dential election because the Department of contributions without advising the Govern- sought appointment of independent counsels Justice’s own Campaign Finance Task Force mental Affairs Committee and, apparently, when presented with evidence of possible vio- was conducting a professional and effective without knowing it had the information or lations by covered officials: investigation. Yet in the two years it has acting on it. That again shows the necessity A. On May 11, 1998, Attorney General Reno been conducting its investigation, the Task for Independent Counsel to be appointed to requested the appointment of an independent Force has proved unable to handle this mat- investigate the 1996 Federal campaign ille- counsel to investigate allegations that Labor ter. galities and irregularities.’’ Secretary Alexis Herman accepted payments 83. In March, 1996, it was revealed that Vice 91. These failures of the Justice Depart- in return for directing clients towards a con- President Gore had solicited campaign con- ment Campaign Finance Task Force have sulting firm operated by her friend and a col- tributions from his White House office. been attributed in part to a policy, pattern league. 84. For more than five months following and practice which prevented the task force B. On February 11, 1998, Attorney General Vice President Gore’s public defense of his from investigating the President, Vice Presi- Reno requested the appointment of an inde- phone calls, Justice Department investiga- dent and other high level officials covered by pendent counsel to investigate allegations the Independent Counsel Statute (‘‘covered tors did not review Vice President Gore’s as- that Interior Secretary Bruce Babbitt al- persons.’’) sertion that he acted legally in seeking these lowed contributions to the Democratic party contributions from his White House office in 92. On October 3, 1997, the Washington Post reported that Justice Department prosecu- to influence his policy decisions. 1995–96 and solicited only soft money. C. In November of 1996, Attorney General 85. On September 3, the Washington Post tors determined that the law prohibited Reno requested the appointment of an inde- reported that more than $120,000 raised by them from looking at the activities of ‘‘cov- pendent counsel to investigate allegations Vice President Gore through these phone ered persons’’ unless presented with ‘‘spe- that Eli Segal, head of the AmeriCorps pro- calls had actually been deposited into legally cific’’ and ‘‘credible’’ allegations that such covered persons had committed a crime. This gram, raised illegal campaign contributions. restricted ‘‘hard money’’ accounts main- D. In July of 1995, Attorney General Reno tained by the DNC. This report was based on approach prevented the Justice Department prosecutors from focusing on or even inter- requested the appointment of an independent White House and DNC records that had been counsel to investigate allegations that available to the public. Only after reading viewing senior administration officials, thus insuring that covered persons would be former Commerce Secretary Ron Brown im- the report, Attorney General Reno ordered a properly accepted a $50,000 payment from a 30-day review of the Vice President’s phone among the last implicated in any possible misdeeds. According to one Justice Depart- former business partner and then filed inac- calls, the first step in the legal procedure curate financial disclosure statements. leading to appointment of an independent ment lawyer involved in the investigation, ‘‘You can’t ask someone whether a covered E. In March of 1995, Attorney General Reno counsel. requested the appointment of an independent 86. On September 5, the Attorney General person committed a crime.’’ That approach counsel to investigate allegations that acknowledged that she learned of the depos- and mindset demonstrated the DoJ Task former Housing and Urban Development Sec- its to hard money accounts from the press: Force could not and did not handle this mat- retary Henry Cisneros misled the FBI about ‘‘The first I heard of it was when I saw the ter thus calling for Independent Counsel. payments he made to his former mistress. article in the Washington Post . . . . It is my 93. The Act does not mandate such a pas- sive investigatory approach. The Act re- F. In September of 1994, Attorney General understanding that this is the first time the Reno requested the appointment of an inde- public integrity section learned of it, as quires ‘‘specific and credible’’ evidence of wrongdoing by covered persons before the pendent counsel to investigate allegations well.’’ that former Agriculture Secretary Mike 87. On September 20, the Justice Depart- Attorney General is required to appoint an Espy violated the law by accepting gifts ment announced that Attorney General Reno independent counsel. Nowhere does the Act from companies regulated by his Depart- had decided to open a review of President require ‘‘specific and credible evidence’’ of ment. Clinton’s fund raising calls from the Oval Of- wrongdoing before the Department of Justice G. In January of 1994, Attorney General fice. On September 22, the Washington Post can investigate a covered person on its own. Reno requested the appointment of an inde- reported that the records that convinced At- 94. This policy demonstrates that the Jus- pendent counsel to investigate President torney General Reno to open this review had tice Department has simply ignored evidence Clinton’s Whitewater real estate venture. been turned over to the Justice Department of violations by covered persons and, con- 98. Congress relied upon the Attorney Gen- task force several months prior to the deci- trary to its public pronouncements, has eral’s statements and record when amending sion to open the review, but the Task Force failed to conduct a competent investigation and then reauthorizing the Independent had not examined the documents until that of the evidence that has been presented to it. Counsel Statute subsequent to the hearing. week. The delay in examination was attrib- B. Estoppel of the Attorney General Accordingly, no Senator saw a need to uted to confused document-handling proce- 95. In her May 14, 1993 opening statement amend the statute to clarify or emphasize dures within the campaign finance task before the Senate Committee on Govern- the requirement that independent counsel be force. mental Affairs on the reauthorization of the appointed in circumstances such as those re- 88. On September 11, 1997, Attorney Gen- Independent Counsel Statute, Attorney Gen- flected in the facts recited above. eral Reno, FBI Director Freeh and CIA Di- eral Reno stated: ‘‘The reason that I support 99. Given the Attorney General’s state- rector Tenet briefed the Senate Govern- the concept of an independent counsel with ments and pattern of behavior, and Congress’ mental Affairs Committee on some matters statutory independence is that there is an detrimental reliance thereon, Attorney Gen- relating to the campaign finance investiga- inherent conflict whenever senior Executive eral Reno is estopped from refusing to ap- tion. At this briefing it was revealed that the Branch officials are to be investigated by the point an independent counsel in the instant Department of Justice had critical informa- Department and its appointed head, the At- case. tion in its files for two years relating to pos- torney General. The Attorney General serves sible illegal contributions without advising at the pleasure of the President . . . . It is C. Conflict of Interest the Governmental Affairs Committee with- absolutely essential for the public to have 100. Section 591(c) of the Act provides that out knowing it had the information in the confidence in the system and you cannot do the Attorney General ‘‘may’’ conduct a pre- first place. that when there is conflict or an appearance liminary investigation of any person when- 89. Specifically, CIA Director Tenet ad- of conflict in the person who is, in effect, the ever the Attorney General (1) receives spe- vised the Committee that a particular indi- chief prosecutor. There is an inherent con- cific and credible information which is ‘‘suf- vidual (whose identity is confidential) who flict here, and I think that is why this Act is ficient to constitute grounds to investigate’’ had been identified in many news accounts so important.’’ whether such person ‘‘may have violated’’ as a major foreign contributor to political 96. Commenting on the Independent Coun- any Federal criminal law, and (2) determines campaigns and campaign committees, made sel Statute, Attorney General Reno, at the that an investigation or prosecution of such S7788 CONGRESSIONAL RECORD — SENATE June 29, 1999 person by the Department of Justice ‘‘may individuals and associations, including for- ting forth in great detail the reasons why result in a personal, financial, or political eign interests, that point to potential in- her focus on the issue of fund-raising tele- conflict of interest.’’ volvement by senior Executive Branch offi- phone calls in both preliminary investiga- 101. The independent Counsel statute pre- cials. The letter also notes the ‘‘inherent tions was too limited. Senator Specter noted sumes that it would present a conflict of in- conflict of interest’’ in the Attorney General that there is ‘‘substantial evidence of wrong- terest for the Attorney General to inves- investigating the Executive Branch, and doing which meets the specific and credible tigate the President or Vice President. calls on the Attorney General to commence threshold in the Independent Counsel Stat- 102. The Department of Justice campaign a preliminary investigation. A true and cor- ute’’ and cited five specific examples of finance task force has indicted five individ- rect copy of the March 13, 1997 letter is at- issues other than the telephone calls which uals with close ties to the President and/or tached as Exhibit ——. All of the contents of require appointment of independent counsel. Vice President (as detailed below). Accord- the attached letter are hereby incorporated A true and correct copy of the November 25, ingly, the investigation of the five individual by reference as part of the factual and evi- 1997 letter is attached as Exhibit . All of the currently under indictment will inevitably dentiary basis for the relief sought in this contents of the attached letter are hereby in- involve the Justice Department in inves- complaint. corporated by reference as part of the factual tigating the President and Vice President. In 104. On April 14, 1997, the Attorney General and evidentiary basis for the relief sought in order to avoid the conflict of interest pre- responded by letter to Chairman Hatch that this complaint. sented by such an investigation, the Attor- she would not initiate a preliminary inves- 111. On December 2, 1997, Attorney General ney General should exercise her discretion tigation under the Act. A true and correct Reno announced that she decided not to seek under the Act and appoint an independent copy of the April 14, 1997 letter is attached an independent counsel to investigate these counsel. hereto as Exhibit ——. All of the contents of allegations against the President and Vice the attached letter are hereby incorporated President. On the same day, she formally ad- Howard Glicken by reference as part of the factual and evi- vised the special panel of three judges who Finance Vice Chairman of the DNC during dentiary basis for the relief sought in this oversee the appointment of independent the 1996 campaign. complaint. counsel that ‘‘there are no reasonable Raised over $2 million for the Democratic 105. On October 11, 1996 Senator John grounds’’ for further investigation. party during the 1996 campaign. McCain wrote to the Attorney General re- 112. On August 26, 1998, Attorney General Made over 70 visits to the Clinton White questing that she appoint an independent Reno launched a preliminary investigation House. counsel. Senator McCain wrote to the Attor- under The Act into allegations that Vice Served as Vice President Gore’s Florida Fi- ney General again on October 29, 1996 in a President Gore lied when he told investiga- nance Chairman during his 1988 Presidential joint House-Senate letter. True and correct tors that he did not know that a percentage bid. copies of the October 11, 1996 and October 29, of the money he raised from the White House Maria Hsia 1996 letters are attached hereto as Exhibit went into hard money accounts. The inves- —— and ——, respectively. The allegations tigation was initiated after the Department Accompanied Vice President Gore on a trip contained in Exhibits —— and —— are incor- of Justice received evidence that the Vice to Taiwan paid for by a Buddhist organiza- porated herein by reference. All of the con- President had attended a meeting in which tion in 1989. tents of the attached letters are hereby in- the division of such funds into both hard and Organized a $250–a-plate Beverly Hills corporated by reference as part of the factual soft money was discussed. fund-raiser for Gore’s 1990 Senate re-election and evidentiary basis for the relief sought in 113. On November 24, 1998, Attorney Gen- campaign. this complaint. eral Reno announced that she decided not to Helped organize April 29, 1996 fund-raising 106. On September 3, 1997, House Judiciary seek an independent counsel to investigate lunch at the Hsi Lai Buddhist Temple at- Committee Chairman Hyde and all of the Re- the allegations that Vice President Gore lied tended by Vice President Gore which raised publican members of the Committee sent a to the campaign finance investigators. On $140,000 for the DNC. letter to Attorney General Reno setting the same day, she formally advised the spe- Yah Lin ‘‘Charlie’’ Trie forth, in great detail, the alleged cial panel of three judges who oversee the ap- Owned a Chinese Restaurant in Little wrongdoings of the Clinton Administration pointment of independent counsels that Rock, Arkansas, frequented by President in the 1996 campaign. The letter requests ‘‘there are no reasonable grounds’’ for fur- Clinton during his tenure as Governor of Ar- that the Attorney General apply for the ap- ther investigation of the allegations against kansas. pointment of an independent counsel to in- the Vice President. Raised $640,000 for President Clinton’s legal vestigate these matters. A true and correct 114. On September 1, 1998, Attorney Gen- defense fund in 1995–96. copy of the September 3, 1997 letter is at- eral Reno launched a preliminary investiga- Raised $645,000 for the Democratic party in tached as Exhibit . All of the contents of tion under The Act into allegations that 1995–96. the attached letter are hereby incorporated former White House deputy chief of staff Made at least 23 visits to the Clinton White by reference as part of the factual and evi- Harold Ickes lied to the Senate Govern- House. dentiary basis for the relief sought in this mental Affairs Committee about whether he complaint. made efforts to aid the Teamsters Union in Johnny Chung 107. On November 13, 1997, House Judiciary exchange for campaign contributions. Contributed $366,000 to the DNC between Committee Chairman Hyde and a majority of 115. On November 30, 1998, at the end of the August 1994 and August 1996. the Republican members of the Committee 90-day preliminary investigation, Attorney Contributed $50,000 to the DNC on March 9, sent a letter to Attorney General Reno set- General Reno decided to delay her decision 1995. Handed check to Hillary Clinton’s Chief ting forth, in great detail, the allegation whether to appoint an independent counsel of Staff, Maggie Williams, at the White that the U.s. Department of the Interior to investigate Harold Ickes. On that date, House. made policy changes in exchange for cam- Attorney General Reno requested and re- Two days later, Mr. Chung and a delega- paign contributions. The letter calls on At- ceived from the special three judge panel a tion of six Chinese officials were admitted to torney General Reno to immediately request 60-day extension of the preliminary inves- watch President Clinton tape his weekly appointment of an independent counsel to in- tigation into Ickes. radio address. vestigate these allegations. A true and cor- Rejection of Advice from Top Investigators Made at least 49 visits to the Clinton White rect copy of the November 13, 1997 letter is to Appoint an Independent Counsel House. attached as Exhibit . All of the contents of 116. In deciding not to appoint an inde- Pauline Kanchanalak the attached letter are hereby incorporated pendent counsel, Attorney General Reno re- Raised $679,000 for the Democratic Party by reference as part of the factual and evi- jected the advice that had been given to her and candidates. dentiary basis for the relief sought in this by two individuals she had placed at the top Visited the Clinton White House 26 times. complaint. of the Justice Department’s campaign fi- Appointed Managing Trustee of the DNC. The Preliminary Investigations and Failure nance investigation: Louis Freeh and Charles Recommended by the White House for a po- to Appoint an Independent Counsel LaBella. sition on an executive trade policy com- 108. On September 3, 1997, Attorney Gen- 117. On October 15, 1997, Attorney General mittee. eral Reno launched a preliminary investiga- Reno testified before the House Judiciary D. Additional Facts relating to the Attorney tion under The Act into allegations that Committee that she had given FBI Director General’s Refusal to Appoint Independent Vice President Gore may have violated Fed- Louis Freeh a leading role in the Justice De- Counsel eral law by making fund-raising telephone partment’s campaign finance inquiry and calls from his office in the White House. that no avenues of investigation would be Letters to Attorney General Reno from the 109. On October 14, 1997, Attorney General closed without Freeh’s approval. Senate and House Judiciary Committees Reno launched a preliminary investigation 118. On December 9, 1997, Director Freeh and Others under The Act into allegations that Presi- testified before the House Committee on 103. On March 13, 1997, Senate Judiciary dent Clinton may have violated Federal law Government Reform and Oversight that he Committee Chairman Hatch and all Repub- by making fund-raising telephone calls from had recommended to Attorney General Reno lican members of the Committee sent a let- the Oval Office. that she appoint an independent counsel ter to Attorney General Reno setting forth, 110. On November 25, 1997, Senator Arlen with respect to the campaign finance inves- in great detail, evidence of involvement by Specter wrote to Attorney General Reno set- tigation. It was later disclosed that in a 22– June 29, 1999 CONGRESSIONAL RECORD — SENATE S7789 page memorandum to the Attorney General criticized for not making the case.’’ (New 140. Despite the specific and credible evi- explaining his conclusions, Director Freeh York Times, 7/6/97) dence that has been presented to her, the At- concluded that, ‘‘It is difficult to imagine a Special Standing of the Senate and House torney General has unlawfully withheld and more compelling situation for appointing an Judiciary Committees to Sue for Enforce- unreasonably delayed applying for the ap- independent counsel.’’ ment of the Independent Counsel Statute pointment of an independent counsel. 141. The failure of the Attorney General to 119. In September, 1997, Attorney General 129. The Act provides that: ‘‘The Com- apply for appointment of an independent Reno appointed Charles G. LaBella to direct mittee on the Judiciary of either House of counsel injures the plaintiffs, who have re- the Justice Department’s campaign finance the Congress, or a majority of majority quested that she do so in accordance with investigation task force. party members or a majority of all non- 120. On May 3, 1998, Mr. LaBella issued a majority party members of either such com- their special authority under the Act and statement confirming that he had rec- mittee may request in writing that the At- who have supplied her with information suf- ommended to Attorney General Reno that torney General apply for the appointment of ficient to trigger such an appointment under she appoint an independent counsel to inves- an independent counsel.’’ 28 U.S.C. 592(g)(1). the Act. tigate whether President Clinton and Vice 130. The Attorney General must respond in WHEREFORE, the Plaintiffs respectfully President Gore violated the law by making writing to such request and report to the pray that the Court require the Defendant, telephone solicitations from their offices. Committees whether she has begun or will the Attorney General of the United States 121. On July 16 or 17, 1998, Mr. LaBella de- begin a preliminary investigation of the Janet Reno, to apply to the special division livered a detailed report to Attorney General matters with respect to which the request of the circuit court for the appointment of Reno arguing that she had no alternative but was made, and the reasons for her decision. an independent counsel to investigate evi- to seek an independent prosecutor to inves- 28 U.S.C. 592(g)(2). dence that criminal violations may have oc- curred in the 1996 presidential campaign in- tigate political fund-raising abuses in Presi- 131. This specific inclusion of the Judiciary volving covered persons, including possibly dent Clinton’s reelection campaign. In par- Committees within the framework of the Act the President and/or the Vice President. ticular, Mr. LaBella concluded that there is and the role granted these Committees enough specific and credible evidence of thereunder is evidence that Congress in- THIRD COUNT (FOR A COURT ORDER) wrongdoing by high-ranking officials to trig- tended to create procedural rights—includ- 142. Plaintiffs repeat and reallege all of the ger the mandatory provisions of the Inde- ing the right to sue for enforcement—in foregoing allegations in the Compliant as if pendent Counsel statute. The report was members of the Judiciary Committees. set forth at length herein. based on all of the evidence gathered by the 132. Both the D.C. Circuit and the Ninth 143. The failure of the Attorney General to Circuit have made specific reference to the Department’s task force including confiden- apply for the appointment of an independent fact that members of the Judiciary Commit- tial evidence and grand jury testimony not counsel despite the specific and credible evi- tees have been given a special oversight role available to the public. dence that has been presented to her is a within the scheme of the Act and each court 122. September, 1997, Attorney General gross abuse of any discretion she may have has stated that this role is evidence that to do so under the Act. Reno appointed James V. DeSarno Jr. to Congress intended to create broad procedural 144. The failure of the Attorney General to serve as special F.B.I. agent in charge of the rights in the members of these Committees. apply for appointment of an independent campaign finance investigation task force. See Banzhaf v. Smith, 737 F.2d. 1167 (D.C. Cir. counsel effectively blocks the proper and or- 123. On August 4, 1998, Mr. DeSarno testi- 1984) and Dellums v. Smith, 797 F.2d 817 (9th derly administration of justice in the instant fied before the House Committee on Govern- Cir. 1986). case. ment Reform and Oversight that he agreed FIRST COUNT (FOR A WRIT OF MANDAMUS) 145. The failure of the Attorney General to with the conclusion in Mr. LaBella’s memo apply for appointment of an independent that Attorney General Reno has no alter- 133. Plaintiffs repeat and reallege all of the foregoing allegations in the Complaint as if counsel injures the plaintiffs, who have re- native but to seek an independent counsel to quested that she do so in accordance with investigate campaign finance violations. set forth at length herein. 134. Defendant, Attorney General Reno, has their special authority under the Act and Reliance upon Advice from Secondary been presented with specific and credible evi- who have supplied her with information suf- Advisors dence pertaining to possible violations of ficient to trigger such an appointment under 124. In deciding not to appoint independent criminal law by covered persons which is suf- the Act. WHEREFORE, the Plaintiffs respectfully counsel, Attorney General Reno relied pri- ficient to create reasonable grounds to be- pray that the Court exercise its inherent marily upon the advice of two individuals lieve that further investigation is warranted. power under common law to issue an order further removed from the investigation than 135. Given this evidence, Attorney General appointing an independent counsel to inves- Freeh, LaBella and DeSarno: Lee Radek and Reno is required under the Act to make an tigate evidence that criminal violations may Robert Litt. application to the special division of the cir- cuit court for appointment of an independent have occurred in the 1996 presidential cam- 125. Robert. S. Litt has plated an active paign involving covered persons, including role in the meetings in which Attorney Gen- counsel. 136. Notwithstanding the duties imposed on possibly the President and/or the Vice Presi- eral Reno has concluded not to appoint Inde- dent. pendent Counsel. Mr. Litt was nominated to her under the Act and repeated requests by be chief of the Criminal Division of the De- Plaintiffs, the Attorney General has refused FOURTH COUNT (FOR SPECIFIC PERFORMANCE partment of Justice in 1995, but was never to apply to the special division of the circuit UNDER PROMISSORY ESTOPPEL) confirmed for this position. He currently court for appointment of an independent 146. Plaintiffs repeat and reallege all of the counsel. serves as Principal Associate Deputy Attor- foregoing allegations in the Complaint as if 137. The failure of the Attorney General to ney General and is the de facto head of the set forth at length herein. apply for appointment of an independent 147. In her May 14, 1993 statement before criminal division. counsel despite the evidence that has been the Senate Committee on Governmental Af- 126. Prior to moving to the Department of presented to her is a violation of her manda- fairs on the reauthorization of the Inde- Justice, Mr. Litt was the law partner of tory duty to do so under the Act or, in the pendent Counsel Statute (quoted above), At- David Kendall, the President’s private attor- alternative, is a gross abuse of her discretion torney General Reno made statements which ney. to do so under the Act. assured the Committee and the Senate that 127. Lee Radek is a career bureaucrat who 138. The failure of the Attorney General to she shared their interpretation of the Inde- currently serves as chief of the Criminal Di- apply for appointment of an independent pendent Counsel Statute and that she under- vision’s public integrity section. Mr. Radek counsel injures the plaintiffs, who have re- stood her obligation to appoint an inde- and the lawyers working under him have quested that she do so in accordance with pendent counsel in circumstances such as been among the strongest advocates for their special authority under the Act and those reflected in the facts recited above. keeping the inquiry inside the Department of who have supplied her with information suf- 148. On four prior occasions during her ten- Justice. (New York Times, 12/11/97). ficient to trigger such an appointment under ure in office, Attornet General Reno has ap- 128. Mr. Radek has been openly critical of the Administrative Procedures Act. plied for appointment of an independent the independent counsel statute and has re- WHEREFORE, the Plaintiffs respectfully counsel. This pattern of conduct further as- jected the fundamental premise of the law— pray that the Court require the Defendant, sured the Committee and the Senate that that the Department of Justice should not be the Attorney General of the United States she understood her obligation to appoint an in charge of investigating certain high offi- Janet Reno, to apply to the special division independent counsel in circumstances such cials in the executive branch. According to of the circuit court for the appointment of as those recited in the facts above. Mr. Radek, ‘‘The independent counsel stat- an independent counsel to investigate evi- 149. The member of the U.S. Senate relied ute is an insult. It’s a clear enunciation by dence that criminal violations may have oc- upon Attorney General’s statements and the legislative branch that we cannot be curred in the 1996 presidential campaign in- record when amending and then reauthor- trusted on certain species of cases.’’ (New volving covered persons, including possibly izing the Independent Counsel Statute subse- York Times, 7/6/97) Radek also complained the President and/or the Vice President. quent to the hearing. Accordingly, no Sen- that the Independent Counsel statute places SECOND COUNT (FOR A COURT ORDER UNDER THE ator saw a need to amend the statute to clar- his prosecutors in a no-win situation, ‘‘If we ADMINISTRATIVE PROCEDURES ACT) ify or emphasize the requirement that inde- do very well in our investigation, we have to 139. Plaintiffs repeat and reallege all of the pendent counsel be appointed in cir- turn the case over to an independent coun- foregoing allegations in the Complaint as if cumstances such as those reflected in the sel. If we don’t find anything, then we’re set forth at length herein. facts recited above. S7790 CONGRESSIONAL RECORD — SENATE June 29, 1999 150. The failure of the Attorney General to tection for those Americans insured fully debate the Patients’ Bill of apply for appointment of an independent through private managed care plans Rights. We must protect those counsel injures the plaintiffs, who have re- was just not a priority for us—this de- Vermonters who are not covered under quested that she do so in accordance with spite the fact that we have had calls current state law. And we must act their special authority under the Act and who have supplied her with information suf- from nonpartisan groups from every now to cover every other American ficient to trigger such an appointment under corner of the Nation. The Republican who expects fair treatment from their the Act. leadership has refused to schedule a managed care plan. WHEREFORE, the Plaintiffs respectfully full and reasonable debate to consider I am one of many in this body who pray that the Court exercise its power under the vote on the Patients’ Bill of firmly believe in the importance of this the common law doctrine of promissory es- Rights. bill. I hope the leadership is listening toppel to issue an order appointing an inde- Certainly from my experience in the and I hope they hear what we are say- pendent counsel to investigate evidence that Senate it is clear that the only step ing. It is what Americans are saying. criminal violations may have occurred in the As I stated at the beginning of this 1996 presidential campaign involving covered left is, of course, to bring the Patients’ persons, including possibly the President Bill of Rights directly to the floor. I message, millions of American families and/or the Vice President. believe we should keep it there until in this Nation of first-class medical ex- Dated: December , 1998. the Republicans, who are in the major- pertise are subject to second-class Respectfully submitted, ity, agree that it merits the priority treatment because of the policies and ——— ———, consideration that we—and I believe practices of our health insurance sys- Attorney for Plaintiffs. most of the American people, Repub- tem. Mr. SPECTER. I thank the Chair for lican and Democrat—strongly believe We have heard a lot of ‘‘our bill has the extra time, and I yield the floor. it does. this,’’ and ‘‘their bill doesn’t have f I applaud Senator KENNEDY, Senator that.’’ Here are some of the facts. Our Patients’ Bill of Rights will protect RECESS DURBIN, and many others for leading this vigilance to save the Patients’ Bill every patient covered by private man- The PRESIDING OFFICER. All time of Rights. I commend the distinguished aged care plans. And it offers protec- having expired, under the previous Senate Democratic leader, Mr. tions that make sense, such as ensur- order, the Senate will stand in recess DASCHLE, for continuing to insist on a ing a patient has access to emergency until the hour of 2:15 p.m. reasonable time agreement as he at- room services in any situation that a Thereupon, the Senate, at 12:38 p.m., tempts to negotiate with our friends on ‘‘prudent layperson’’ would regard as recessed until 2:15 p.m.; whereupon, the the other side of the aisle. an emergency, guaranteeing access to Senate reassembled when called to I urge our friends in the Republican specialists for patients with special order by the Presiding Officer (Mr. Party to make the Patients’ Bill of conditions, and making sure that chil- INHOFE). Rights a high priority. Let’s get on dren’s special needs are met, including f with the debate, vote it up or vote it access to pediatric specialists when down, and then go on to the other mat- ORDER OF PROCEDURE they need it. ters, things such as the agriculture ap- Our Patients’ Bill of Rights provides The PRESIDING OFFICER. Under propriations bill and other business be- strong protections for women. It will the previous order, the time until 3:15 fore us. provide women with direct access to shall be under the control of the Demo- The Patients’ Bill of Rights that we their ob/gyn for preventive care. cratic leader. Democrats have presented reflects a Through successful research, we have The Senator from Vermont. fundamental expectation that Ameri- learned that regular screening can pre- Mr. LEAHY. Mr. President, I yield cans have about their health care. That vent breast cancer and cervical cancer such time as I may need under the time expectation is that doctors—not insur- in women of all ages. allotted to the distinguished Senator ance companies—should practice medi- We stress the importance of regular from South Dakota. cine. visits to ob/gyns to the women in our f To really sum up our Patients’ Bill of lives: our mothers, our wives, our Rights, we are saying that doctors—not daughters, and our sisters. But we PATIENTS’ BILL OF RIGHTS insurance companies—should be the make it difficult for these women to Mr. LEAHY. Mr. President, it is in- first decisionmakers in your health receive care by requiring referrals and teresting when you think of the debate care. The rights that we believe Ameri- putting other obstacles in the way of we are in. Here we are as Americans in cans should have in dealing with health their care. Let us make sure women the richest and most powerful country insurers are not vague theories; they have the direct access they need and the world has ever known. There is are practical, sensible safeguards. You deserve. really no comparison to it. We have the can hear it if you talk to anybody who Our bill also will give women time to most highly trained and capable health has sought health care. You can hear it recover when they have undergone sur- professionals of any nation. Our tech- if you talk to anybody who provides gery. We should let doctors and pa- nology leads the way on the frontiers health care. I hear it from my wife, tients determine if a lengthier hospital of medical science. People come from who is a registered nurse. I hear it stay is necessary, and our bill would all over the world to train and to be from her experiences on the medical- let them decide. educated in medical science. But at surgical floors in the hospitals she has Health plans must be held account- that same time, millions of American worked in. If you want to see how some able for their actions, just as doctors families in our Nation with its first- of them would work in practice, come and hospitals are today. Out Patients class medical expertise are subject to with me to Vermont. My state has al- Bill of Rights provides a variety of second-class treatment because of the ready implemented a number of these ways to achieve this goal. policies and practices of our health in- protections for the Vermonters who are First, patients must be able to appeal surance system. insured by managed care plans. I am decisions made by their health plans. I have to ask, is it really beyond the proud Vermont has been recognized na- In our bill, any decision to deny, delay ability of this great Nation to ensure tionally for its innovation and achieve- or otherwise overrule doctor-prescribed access and accountability to help these ments in protecting patients’ rights. treatments could be appealed. And our families? Of course it is not. Is this an I consistently hear from Vermonters bill says these appeals must be ad- important enough problem that solving who are thankful for the actions that dressed in a timely manner, especially it should be a high priority for this the Vermont legislature has taken to when the life of a patient is threatened. body, the Senate? Of course it is. ensure patients are protected. But I Patients must have the opportunity to Although the President and many of also hear from those who do not yet question managed care decisions and the Senators have done their utmost fall under these protections. insurance companies must be held ac- for years to encourage the Congress to This Congress should waste not more countable, especially when they decide act, I am afraid that the Republican time and instead make a commitment to overrule the decisions of a trained leadership long ago decided that pro- to the American people that we will health care providers. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7791 Our bill would require an external ap- serves better than benign neglect. The process dominated by interminable delays peals process through an independent people in Missouri deserve a fully and inaction. Patience has its virtues, but it body with the ability and the authority qualified and fully staffed Federal also has its limits. to resolve disputes in a variety of in- bench. Last year, Senator KENNEDY observed stances. We know this is often a suc- Justice White has one of the finest that women nominated to federal cessful way of mediating labor dis- records—and the experience and stand- judgeships ‘‘are being subjected to putes. Why can’t it work for our pa- ing—of any lawyer that has come be- greater delays by Senate Republicans tients, too? fore the Judiciary Committee. He has than men. So far in this Republican Finally, the Patients’ Bill of Rights served in the Missouri legislature, the Congress, women nominated to our fed- would allow patients to hold health office of the city counselor for the City eral courts are four times—four plans liable for their decisions. This is of St. Louis, and he was a judge in the times—more likely than men to be held essential. How can we justify holding Missouri Court of Appeals for the East- up by the Republican Senate for more our physicians responsible for decisions ern District of Missouri before his cur- than a year.’’ that they are not really making? Doc- rent service as the first African Amer- Justice White remains one of the 10 tors must account for the decisions ican ever to serve on the Missouri Su- longest-pending judicial nominations they make. Why shouldn’t health in- preme Court. before the Senate, along with Judge surers be responsible for theirs? Having been voted out of Committee Richard Paez and Marsha Berzon. Differences between patients and by a 4–1 margin, having waited for 2 I have noted that Justice White’s their managed care plans can readily years, this distinguished African Amer- nomination has already been pending be resolved without going to court. But ican at least deserves the respect of for over two years. By contrast, I note that will not and should not always be this Senate, and he should be allowed a that in the entire four years of the the case. We must extend this con- vote, up or down. Senators can stand Bush Administration, when there was a sumer protection to patients. up and say they will vote for or against Democratic majority in the Senate, Mr. President, let us make the Pa- him, but let this man have his vote. only three nominations took as long as tients’ Bill of Rights the high priority The Chief Justice of the United nine months from initial nomination that our families want it to be on our States Supreme Court wrote in his to confirmation—that is three nomina- agenda. Year-End Report in 1997: ‘‘Some cur- tions taking as long as 270 days in four f rent nominees have been waiting a con- years. siderable time for a Senate Judiciary Last year the average for all nomi- DELAYS IN CONSIDERATION OF Committee vote or a final floor vote. nees confirmed was over 230 days and 11 THE NOMINATION OF RONNIE L. The Senate confirmed only 17 judges in nominees confirmed last year alone WHITE 1996 and 36 in 1997, well under the 101 took longer than nine months: Judge Mr. LEAHY. Mr. President, I rise to judges it confirmed in 1994.’’ He went William Fletcher’s confirmation took speak on the question of nominations. on to note: ‘‘The Senate is surely under 41 months—the longest-pending judi- We are approaching another Senate re- no obligation to confirm any particular cial nomination in the history of the cess. We ought to act on judicial nomi- nominee, but after the necessary time United States; Judge Hilda Tagle’s con- nations, the longstanding vacancies in for inquiry it should vote him up or firmation took 32 months, Judge Susan the Federal courts around this coun- vote him down.’’ Oki Mollway’s confirmation took 30 try. This is the fourth extended Senate For the last several years I have been months, Judge Ann Aiken’s confirma- recess this year. So far this year, the urging the Judiciary Committee and tion took 26 months, Judge Margaret Senate has confirmed only two judicial the Senate to proceed to consider and McKeown’s confirmation took 24 nominees for the longstanding vacan- confirm judicial nominees more months, Judge Margaret Morrow’s con- cies that plague the Federal courts. promptly and without the years of firmation took 21 months, Judge Sonia That is one judge per calendar quarter; delay that now accompany so many Sotomayor’s confirmation took 15 it is one half a judge per Senate vaca- nominations. I hope the committee months, Judge Rebecca Pallmeyer’s tion. We should do better. will not delay any longer in reporting confirmation took 14 months, Judge Let me focus on one: Justice Ronnie the nomination of Justice Ronnie L. Dan Polster’s confirmation took 12 White. This past weekend marked the White to the United States District months, and Judge Victoria Roberts’ 2-year anniversary of the nomination Court for the Eastern District of Mis- confirmation took 11 months. Of these of this outstanding jurist to what is souri and that the Senate will finally 11, eight are women or minority nomi- now a judicial emergency vacancy on act on the nomination of this fine Afri- nees. Another was Professor Fletcher, the U.S. District Court in the Eastern can-American jurist. held up, in large measure because of District of Missouri. He is currently a I have been concerned for the last opposition to his mother, Judge Betty member of the Missouri Supreme several years that it seems women and Fletcher. Court. minority nominees are being delayed In 1997, of the 36 nominations eventu- He was nominated by President Clin- and not considered. I spoke to the Sen- ally confirmed, 10 took more than 9 ton in June of 1997, 2 years ago. It took ate about this situation on May 22, months before a final favorably Senate 11 months before the Senate would June 22 and, again, on October 8 last vote and 9 of those 10 extended over a even allow him to have a confirmation year. Over the last couple of years the year to a year and one-half. Indeed, in hearing. His nomination was then re- Senate has failed to act on the nomina- the four years that the Republican ma- ported favorably on a 13–3 vote in the tions of Judge James A. Beaty, Jr. to jority has controlled the Senate, the Senate Judiciary Committee on May be the first African-American judge on nominees that are taking more than 9 21, 1998. Senators HATCH, THURMOND, the Fourth Circuit; Jorge C. Rangel to months has grown almost tenfold from GRASSLEY, SPECTER, KYL and DEWINE the Fifth Circuit; Clarence J. Sundram 3 nominations to almost 30 over the were the Republican members of the to the District Court for the Northern last four years. committee who voted for him along District of New York; Anabelle In 1996, the Republican Senate shat- with the Democratic members. Sen- Rodriguez to the District Court in tered the record for the average num- ators ASHCROFT, ABRAHAM, and SES- Puerto Rico; and many others. In ex- ber of days from nomination to con- SIONS voted against him. plaining why he chose to withdraw firmation for judicial confirmation. Even though he had been voted out from consideration after waiting 15 The average rose to a record 183 days. overwhelmingly, he sat on the cal- months for Senate consideration, Jorge In 1997, the average number of days endar, and the nomination was re- Rangel wrote to the President and ex- from nomination to confirmation rose turned to the President after 16 months plained: dramatically yet again, and that was with no action. during the first year of a presidential Our judicial system depends on men and The President has again renominated women of good will who agree to serve when term. From initial nomination to con- him. I call again upon the Senate Judi- asked to do so. But public service asks too firmation, the average time it took for ciary Committee to act on this quali- much when those of us who answer the call Senate action on the 36 judges con- fied nomination. Justice White de- to service are subjected to a confirmation firmed in 1997 broke the 200-day barrier S7792 CONGRESSIONAL RECORD — SENATE June 29, 1999 for the first time in our history. It was saying when prices collapse, if this allow you to do. You can offer these 212 days. country cares about family farmers, if three amendments. They have to be Unfortunately, that time is still this Senate is indeed profamily and worded this way. If we don’t agree with growing and the average is still rising cares about family farmers and wants them, we will not give you the privi- to the detriment of the administration to have some family farmers in its fu- lege of speaking on the floor. That is of justice. Last year the Senate broke ture, then it will pass an emergency not the way the Senate is supposed to its dismal record. The average time package to respond to family farmers’ operate and we will not let it operate from nomination to confirmation for needs during this price collapse. We that way. We have rights. the 65 judges confirmed in 1998 was wouldn’t have been able to do that if The American people have rights. In over 230 days. we voted to invoke cloture. We would my judgment, patients in this country Acting to fill judicial vacancies is a not have been able to offer the amend- have the right to know all of their constitutional duty that the Senate— ment. Now we have people saying medical options for their treatment, and all of its members—are obligated somehow those who voted against clo- not just the cheapest. Patients have to fulfill. In its unprecedented slow- ture have disserved the interests of the right to get emergency room treat- down in the handling of nominees since farmers. ment when they have an emergency. the 104th Congress, the Senate is shirk- The agricultural appropriations bill Patients have a right to keep their own ing its duty. That is wrong and should that came to the floor is a piece of leg- doctors during cancer treatment even end. islation that funds USDA; it funds the if their employers change HMOs. All of As the Senate recesses for the Inde- research programs and the other pro- those issues are issues we intend to pendence Day holiday, I hope Senators grams at USDA. It takes effect October fight for on behalf of patients in this will reflect on this record and the need 1. It does not take effect for months. country. But we are denied that right to maintain the independence of the ju- The delay of the bill is not going to by a majority who says you can only diciary by acting more promptly on the injure, in any way, family farmers. The talk about the things we want to talk nominations of the many fine men and bill will get passed on time. It will be about. women pending before us. We have 45 sent to the President and be signed. Then when the agriculture appropria- nominations still pending, the Senate Contrary to those standing in front of tions bill or any other bill comes to the having only acted on only two all year. a tractor yesterday, wheezing and floor and we offer the Patients’ Bill of The courts are faced with 72 vacancies, blowing about farm issues—some of Rights, we are told by the same folks many of extensive duration. The Sen- whom I bet wouldn’t know a bale of who say they care about farmers that ate recesses with a sorry record of in- hay from a bale of twine—I guarantee we have delayed the agriculture appro- action on judicial nominations. before that bill leaves the Senate, we priations bill. This bill will not take ef- The PRESIDING OFFICER. The Sen- intend to offer an emergency package fect until October 1 and is to fund the ator from North Dakota. to say to family farmers: You matter; U.S. Department of Agriculture and had we voted for cloture, it would have f we are going to help you; when prices collapse, we will help you over the prevented Senator HARKIN and myself AGRICULTURE APPROPRIATIONS price ‘‘valley.’’ from offering the specific amendment Mr. DORGAN. Mr. President, I under- What happens to a company on Wall to deal with income support for family stand yesterday there was a press con- Street, Long-Term Capital Manage- farmers during this farm crisis. I just have to say it takes some ference on the Capitol lawn. They ment, that threatens to lose billions of imagination to hold a conference and brought in some big, shiny farm trac- dollars? What happens is they get tors and a group of folks held a press suggest we are the problem. bailed out by the Federal Reserve Mr. DURBIN. Will the Senator yield conference, with the tractors as a Board. for a question? background, wheezing and moaning What would happen if we were talk- Mr. DORGAN. I am happy to yield. about the agriculture appropriations ing about big corporations? They would Mr. DURBIN. Is it not true the bill, saying somehow that bill is get- get bailed out, but they are family course of the debate we have literally ting held up and it will hurt family farmers. taken is to debate measures such as farmers. Somehow in the minds of some, it the Y2K liability bill with dozens of I advise my colleagues, if we had in- does not matter what happens to fam- amendments, and there was not a com- voked cloture as the majority leader ily farmers. It matters to me. It does plaint made that we were slowing down and others wanted with respect to that to many of my colleagues on this side the process on appropriations? bill, we would have been prevented the of the aisle. Mr. DORGAN. That is exactly the opportunity to offer an amendment on I know why they held the press con- case. It is the case that we are in the the floor dealing with the farm crisis, ference with tractors. It is because circumstance which now exists because an amendment that provides some they are upset that folks on this side of there are some here in the Senate who basic income support to family farmers the aisle offered a Patients’ Bill of simply do not want to have to vote on during this urgent farm crisis. We Rights. The reason the Patients’ Bill of the issues we are talking about with would not have been able to do that. Rights was offered in the Senate on ag- respect to the Patients’ Bill of Rights. Voting yes on cloture, on a bill that riculture, and it would not have They want to have a slogan so they can the majority leader pulled off the floor mattered on which bill it was offered, vote for something titled the Patients’ and then brought back on a cloture is we said it was going to be offered to Bill of Rights but one that will not motion, would mean there is no oppor- the first bill that came up if we were have any strength; one that will really tunity to vote for some kind of income not given the opportunity to have a not have any provisions to provide peo- support package for family farms while Patients’ Bill of Rights on the floor of ple with the basic rights they ought to there are collapsed prices. We have the Senate. be provided with respect to this health tried to get that before this Congress. It was offered because we have care issue. I sat downstairs at midnight in the pushed and pushed and pushed and we We have talked at great length about emergency conference on appropria- have been denied the opportunity to the too many instances in this country tions between the House and the Sen- debate and offer amendments on a Pa- where health care decisions are not ate. Senator HARKIN and I offered an tients’ Bill of Rights. That is not the made by a doctor in a patient’s room in amendment that would have provided way the Senate is supposed to work. the hospital or by a doctor in a doc- about $5.5 billion in emergency help for You are supposed to be able to offer tor’s office at a clinic, but where the family farmers during this collapse of legislation, offer amendments, have de- answer to what kind of patient care farm prices. We lost on a 14–14 tie vote. bates, and then have a vote. But some will be allowed is to often, in too many Then we tried in the appropriations do not want the Senate to operate that circumstances, made by an accountant subcommittee and lost there on a par- way. They want to shut the place making medical judgments somewhere tisan vote. down, close the blinds, pull the win- in an insurance company office 1,000 We intend to offer the amendment on dows shut, and then say: This is our miles away. That is what is wrong with behalf of family farmers on the floor, agenda. Here is all we are going to the system. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7793 Mr. DURBIN. Will the Senator yield? other side has adopted the same title— doctors had experienced the cir- Mr. DORGAN. I am happy to yield. which is a nice thing to do, I guess: The cumstance of having an HMO say: No, Mr. DURBIN. Is my understanding Patients’ Bill of Rights. The question this is not medically necessary. You correct that some 200 groups that rep- is scope. How many Americans will it don’t need to correct this. It is not resent consumers and doctors and hos- cover and what kind of coverage will it medically necessary. pitals and business and labor have en- offer? Will it, in fact, help people like Can this young person live with this? dorsed the Democratic Patients’ Bill of that young boy who was told a 50-per- Yes, I suppose so. Would any prudent Rights and, to my knowledge, the only cent chance to be able to walk by age American say it is medically necessary group endorsing the Republican ap- 5 really doesn’t cut it with us; we will to help fix this problem, to give this proach to this is the insurance indus- not provide the therapy you need? Or young child the opportunity to get re- try? will it, in fact, provide assurance to constructive surgery? The answer is Mr. DORGAN. The Senator describes someone who is knocked unconscious clearly yes. That is what is at the root it exactly. It is the difference between in an accident, that if he or she goes of this issue. one approach that is toothless and an into an emergency room unconscious Mr. REID. Will the Senator yield for approach that has some teeth to it that nobody is going to say later: You a question? says we are going to make this work; should have gotten prior approval from Mr. DORGAN. I am happy to yield. we are going to offer some basic protec- the emergency room? Mr. REID. Dr. GANSKE, who is a con- tions to patients. Mr. REID. Will the Senator yield? servative Republican from the State of I have a poster I was going to show Mr. DORGAN. I will be happy to Iowa, voted on this issue and joined the today. I will show it later in the day. It yield. Democrats’ Patients’ Bill of Rights be- is a poster of a young boy in a wheel- Mr. REID. I will ask this in the form cause of this and other instances. Here chair named Ethan who was denied of a question. Not only are we con- is a man who also brought in a picture treatment by the HMO. He was born cerned now about the terrible care that later showing what could happen to a with very difficult problems that im- is being given or not given to patients, child who has surgery that has been paired the use of his limbs. He was de- but would the Senator care to com- perfected over the decades. This is a nied treatment because a doctor who ment on what we are seeing as a result child who has a cleft palate; is that not had never seen this young patient de- of how doctors are being treated? Could true? cided that the patient had a 50-percent you have imagined 5 or 10 years ago Mr. DORGAN. That is correct. chance of being able to walk by age 5, that the doctors would join together to Mr. REID. I would ask one further and a 50-percent chance of being able to form unions to protect their interests, question to the Senator. walk if he gets the appropriate therapy as they are doing now? Isn’t it true there are over 200 organi- is ‘‘not significant.’’ This is from a doc- Mr. DORGAN. I say to the Senator, I zations that support our Patients’ Bill tor who did not see the patient. It is was as surprised as anyone to read the of Rights and that the only organiza- not significant that this person might news these days about doctors wanting tion that opposes our Patients’ Bill of have a 50-percent chance of being able to join a union. But the reason is pret- Rights is the insurance industry basi- to walk, therefore we deny coverage. ty obvious. They are tired of not being cally? That is the kind of thing that is hap- able to practice health care on their Mr. DORGAN. As I understand it, the pening time and time again. I say to own. They are tired of someone making Senator describes the case exactly. Vir- the Senator from Illinois, I have talked decisions about their patients who they tually every organization in health about this woman who falls off a cliff, have seen. They are the ones who have care supports what we are trying to do. drops 40 feet, fractures her bones in been in the examining rooms. They are The doctors in this country, the pa- three places, is knocked unconscious, the ones who have visited the hospital tients all support what we are trying to taken by medevac helicopter out to a beds. Yet an accountant 500 miles away do because they know we are trying to hospital, is brought into the emergency or 1,000 miles away in some insurance solve problems. room unconscious, survives, and later office, is telling them how to practice Let me go back to this notion there is told: We will not pay the emergency medicine. They are flat sick of it. are two different approaches. The ap- room bill because you didn’t have prior Mr. REID. So I say to my friend, it is proach they offer is toothless. It has a approval for emergency room treat- not only the patients who are rising up, title and does not mean anything very ment. This is a woman unconscious, but now we have the doctors rising up much. The approach we offer has teeth, brought into the emergency room for because of this managed care program. is real, and makes a difference in peo- help. That is the kind of thing that I think that is the reason the American ple’s lives. ought to stop. Does she have a right people have latched onto this issue and I want to make one additional point through her health care coverage to are saying please, Washington, do and then conclude because I know emergency room treatment when she is something. Does the Senator think there are others who wish to speak. I knocked unconscious from a fall in the that is a fair statement? came to the floor today because the mountains? The answer is yes, of Mr. DORGAN. I think that is exactly majority leader and others held a press course. We demand that right be given the case, the reason over 200 medical, conference yesterday with tractors as a that patient in this Patients’ Bill of consumer, and labor groups support backdrop saying what we have been Rights. this legislation. I have a picture loaned doing here is shortchanging American Mr. DURBIN. If the Senator will to me by Dr. GANSKE, who is a Member farmers. Nothing is further from the yield for one other question, it is my of Congress from the House, a Repub- truth. American farmers are going to understanding the Republican bill, sup- lican, a very thoughtful Congressman. be well served by a Senate that does ported by the insurance industry, pro- He is a doctor who does reconstructive not push this agriculture appropria- vides no protection to 115 million surgery. He held up the picture of this tions bill through without emergency Americans who have no health insur- young boy. Let me hold up that pic- help which farmers desperately need. ance, whereas the Democratic bill pro- ture, if I might, just so everyone under- That is exactly what would have hap- vides protection to all of those in this stands what we are talking about. This pened if we had voted for cloture as the country who have health insurance. is a terrible deformity. Dr. GANSKE majority leader was insisting. That is a pretty dramatic difference; is held this picture up to use it as an il- Had we voted for cloture on the agri- it not? lustration. culture appropriations bill, the amend- Mr. DORGAN. The Senator is abso- Obviously, you look at this young ment that Senator HARKIN and I were lutely correct. Again, it is the dif- boy and you say what an awful deform- going to offer for $6 billion to $7 billion ference between an approach that is ity to have to live with. But there are in emergency help for farmers would toothless and an approach that has ways, of course, to correct this. A have been ruled nongermane. It would teeth; one that works, makes a dif- young boy doesn’t have to live with have been over. We cannot pass an ag- ference, one that matters. that deformity. Dr. GANSKE pointed out riculture appropriations bill in the So we have a couple of bills rico- he did a survey of his fellow doctors Senate without addressing this farm cheting around here for which the and discovered that half of his fellow crisis, and those who stood in front of S7794 CONGRESSIONAL RECORD — SENATE June 29, 1999 tractors and talked about farmers ponents of our piece of legislation. I has a 50-percent chance of walking and know that. They know better than again refer to this picture used by Dr. told you don’t get the therapy because that. We cannot pass an agriculture ap- GANSKE, a Congressman in the House of a 50-percent chance of walking by age 5 propriations bill and say we have done Representatives, a Republican who sup- is insignificant. our job if we ignore the crisis which ports our basic legislation. We are saying those are not medical now exists and if we do not pass some Does current medical technology and judgments made by a doctor. Those are basic income support package. all the advances in reconstructive sur- insurance judgments made by HMO ac- Senator HARKIN, Senator DURBIN, and gery do this young child any good, if countants 1,000 miles away, and they I tried in the midnight hours of the the child does not have access to it, if undercut the very premise of this emergency appropriations bill. We lost the child’s parents belong to an HMO health care system in which we ought on a 14–14 tie vote. We tried to get it in that says, no, it is not medically nec- to expect prudent treatment that a this year’s appropriations bill but lost essary we correct that deformity, it is doctor believes is necessary for a pa- on a partisan vote. We must try again not medically necessary at all? Does tient. Yet in too many instances, they on the floor of the Senate, and we will that kind of medicine help this child? are not getting it. This is not just a in the coming weeks. The answer is no. What helps this child consumer bill or a patients’ bill, it is a We had a farmer and author testify is a determination by this Senate that bill that really gets at the root of before the Democratic Policy Com- health care plans ought to judge on a health care in this country. I yield the mittee named Wendell Berry. He has uniform basis that this type of deform- floor. written a book called ‘‘Another Turn of ity is medically necessary and this The PRESIDING OFFICER. The Sen- the Crank.’’ I was thinking about that child would get reconstructive treat- ator from Minnesota. today because yesterday’s show in ment to solve that problem. Mr. WELLSTONE. Mr. President, my front of these polished tractors was Mr. EDWARDS. Will the Senator colleague from North Carolina has 3 just another turn of the crank. yield for one last question? minutes. I wonder if he can speak, and As I said, some of these folks would Mr. DORGAN. I will be happy to I ask unanimous consent I follow him not know a bale of hay from a bale of yield. and Senator BOXER follow me. twine and they are telling us about the Mr. EDWARDS. We discussed it brief- The PRESIDING OFFICER. Without long-term interests of farmers. Many of ly a moment ago, and that is the fact objection, it is so ordered. us who fight for farmers every day in that doctors are finding it necessary to Mr. WELLSTONE. I thank the Chair. every way are insistent that before this unionize or to make an effort to The PRESIDING OFFICER. The Sen- Senate moves any appropriations bill unionize because they are no longer ator from North Carolina. dealing with agriculture out of this able to prescribe the treatments and Mr. EDWARDS. I thank the Senator. Senate, it does not just deal with the tests for their patients they know their f programs and research over in USDA, patients need, in fact because they are TRIBUTE TO MICHAEL HOOKER, that it deals with the income needs of not able to make determinations about CHANCELLOR OF THE UNIVER- family farmers. That is what has been what is medically necessary, whether a SITY OF NORTH CAROLINA at stake in the last couple of days. child—if the Senator would hold this Frankly, I am not a happy person to Mr. EDWARDS. Mr. President, I rise photograph up one more time—whether today to note with sadness the death see the criticism that has been leveled such a child medically needs the sur- by those who do not know anything this morning of the Chancellor of the gical procedure the Senator talked University of North Carolina at Chapel about family farmers and those actions about in the last few minutes, the fact which will undercut our attempt to Hill, Michael Hooker. that doctors find it necessary to help family farmers. Chancellor Hooker was a friend and unionize in order to do what they have Mr. EDWARDS. Will the Senator someone whom I have known for a yield for a question? spent their entire lives being trained to number of years. He was a man of vi- Mr. DORGAN. Yes. do, which is to provide the best pos- sion, enthusiasm, energy, brilliance, Mr. EDWARDS. I wonder if the Sen- sible medical care to their patients. and he had an extraordinary love for ator has the same perception I do, Can the Senator imagine a more power- the State of North Carolina. being from the State of North Carolina. ful indication and symptom of the med- His passing is not only a loss for The Senator and I both know that agri- ical crisis confronting this country those of us in the University of North culture and our family farmers are in today? Carolina family, but for all North Caro- desperate crisis, and they need help in Mr. DORGAN. I cannot. The Senator linians. By making a great university the worst kind of way. He and I are makes a point with his question. This better, Michael Hooker made a lasting committed to help them. I know that. is real trouble for a lot of patients, and contribution to our entire State. I have heard him talk about that sub- what we are trying to do and say is The truth is that his death was both ject in this Chamber. I feel very strong- health care is changing and patients a shock and a blow. Just yesterday he ly about that. ought to have rights. That is what our was at work in Chapel Hill. My question is about this Patients’ Patients’ Bill of Rights does. It empow- He was diagnosed this year with non- Bill of Rights issue. It seems to me ers patients and allows them to believe Hodgkin’s lymphoma and had been un- what we have—there has been a lot of that if they are covered with health dergoing treatments at the National discussion about the Democratic care through their HMO, there will be Cancer Institute in Maryland and also version and the Republican version—is some basic guarantees that just, pru- at the UNC Hospitals. an insurance company bill, on the one dent people expect would be there any- While he was up here, I had the pleas- hand, and a patients’ and doctors’ bill way but which we have now seen in re- ure of seeing him a few times. Not too on the other hand. Will the Senator cent years by some HMOs have system- long ago, I ran into him and his won- agree with that? atically been denied patients. derful wife Carmen, who is an extraor- Mr. DORGAN. I think that is correct. Let me make one final point. Not al- dinary woman, right outside the Sen- Mr. EDWARDS. Also, we have such ways, but too often health care treat- ate Chamber. He looked well and was extraordinary medical technology in ment has become a function of profit feeling optimistic at that time about this country. We have the most ad- and loss for some corporations. Look at his health. He did take a brief leave vanced medical treatment available in their executives. Find how much from his job for treatment of the dis- the world today. Can the Senator ex- money they are making in this indus- ease, but for most of the year, he was plain to us how that treatment and the try. Then they say: But we can’t afford hard at work. fact we are the most advanced medical to provide emergency room care for I cannot say how sad I felt to learn country in the world today does any- someone who is unconscious and pre- this morning the news that his cancer body any good if folks cannot get ac- sents himself on a gurney to emer- had grown worse and that it took him cess to it? Does the Senator have any gency room workers, or we can’t help at an early age—at the age of 53. My explanation for that? this young child with a facial deform- thoughts and prayers go out to Car- Mr. DORGAN. The Senator asks a ity which clearly needs attention. We men, his wonderful wife, and to their question that relates to the key com- can’t help a child in a wheelchair who children. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7795 Let me tell you, Mr. President, just a Mr. WELLSTONE. Let me just thank priations bill that will really help. This little more about Chancellor Hooker the Senator from North Carolina. Hav- amendment calls for this additional and what he has done for my State of ing been an undergraduate at the Uni- $6.5 billion in assistance. North Carolina. versity of North Carolina, having done Second point: I do not know what the He was the first person in his family my doctorate work there, having had press conference was about here in to get a college degree—a philosophy two children born in Chapel Hill, and Washington. I was back home with a degree from Chapel Hill in 1969. His fa- having known Chancellor Hooker, I am lot of farmers. There were a lot of peo- ther was a coal miner. He always cred- also very sorry to hear of his death—a ple from all around the State who came ited his parents’ belief in hard work very young man. It is really a loss for together for a gathering at the capital. and good education for his own success. North Carolina and the country. I ap- But I will tell you this. I hope that After graduation, he left North Caro- preciate the Senator’s eloquence. some of the folks who held the press lina to get a graduate degree and to There are other Senators on the conference also talked about how we enter the world of academics. He floor, so I am going to try to be brief can make sure that family farms have taught philosophy at Harvard. He was and take only an hour or so—less than a future several years from now. I president of Bennington College and that, much less than that. think we have to speak the truth. And also president of the University of Mas- f the truth of the matter is, this Free- sachusetts system. He was president of dom to Farm bill of 1996 is a freedom to the University of Maryland at Balti- THE FARM CRISIS fail bill. more County. Mr. WELLSTONE. Mr. President, The fundamental crisis is a crisis of He returned to North Carolina in first of all, coming from an agricul- price. Right now our corn growers get July of 1995 to become UNC’s eighth tural State, I just want to, as I think $1.75 at the local elevator; our wheat chancellor. And he really attacked the Richard Nixon would say, make one growers get $3.13 for wheat. This is no- job. One year he visited every single thing ‘‘perfectly clear’’ about agri- where near the cost of production. county in North Carolina—and we have culture. They cannot cash flow. They cannot 100 counties in North Carolina—to Senator DORGAN is right on the mark make a living. Unless we fix this free- make sure that every person in the when he makes the point. It is sort of dom to fail bill and we go back to some State knew they were connected with an inside thing, but it is very impor- sort of leverage for farmers in the mar- their university. Then he made sure tant to the outsiders, especially to ketplace, some kind of safety net that the faculty and administration at farmers, and not just to farmers but to which will give them a decent income, UNC were connected to the State. He those of us who come from farm States. some sort of price stability, our family once took the new faculty and adminis- If yesterday the majority leader had farmers do not have any future. That is trators from other States on a week- been successful on the cloture vote, we what this is all about. long bus tour of North Carolina. would not have been able to bring this I am not interested in semantics. If The truth of the matter is that men amendment to the floor on this ag bill people want to say, I am still for the like Michael Hooker have long lists of that calls for an additional $6.5 billion Freedom to Farm bill, I don’t care. But accomplishments. They serve on many of assistance. I will say this. The flexibility in that blue ribbon panels; they get lots of Let me just say that this ag appro- legislation to farm a whole lot of dif- honorary degrees; they write great priations bill that just funds existing ferent crops does not do any good if scholarly pieces; they are placed on USDA programs will not do the job. there are record low prices for all of many ‘‘best of’’ lists. I could go Let me also say, in my State of Min- them. So let’s get the assistance to through a great deal of these with re- nesota, and I will not talk about a lot people so they can survive. But let’s get beyond the short run, spect to Chancellor Hooker, because he of statistics that I could talk about and let’s be honest with one another. accomplished all of those things. farm income having dropped 40 percent Let’s fix that Freedom to Farm, or But in the end, I think Michael over the last several years. I could talk freedom to fail, bill, and let’s make Hooker himself valued people most. I about this last decade where farmers sure there is some price stability and believe he would like to be remembered have been wondering why they see a 35- for all of the things he did to make there is some farm income out there; percent drop in price, and yet the con- otherwise, our family farmers have no people’s lives better. He understood the sumer price goes up while the farm-re- need for education, not only because it future. tail spread grows wider and wider be- Finally, if there was a press con- expands men’s and women’s minds but tween what farmers make and con- ference yesterday, I sure as heck hope because it makes our society better, sumers pay. We want to know what is there was some focus on the distortions stronger, more prosperous, and more going on. Let me just tell you, in my in the market. I would like to join all equitable. He was an extraordinary and State there are a lot of broken lives my Republican colleagues in calling for wonderful man. and a lot of broken dreams and a lot of putting free enterprise back into the He said it best himself, if I could just broken families. food industry. I would like to join with quote him: Let me also just simply say that all of my Republican colleagues in There is only one reason to have a public time is not neutral; time moves on. We being a true Adam Smith apostle and university, and that is to serve the people of are confronted with the fierce urgency calling for a market economy. I would the state. That should be the touchstone of of now. If we do not get this additional everything we do: whether it’s in the inter- like to join with all my Republican col- est of North Carolina and our citizens. Our assistance to farmers, much of it di- leagues, in other words, in calling for litmus test is the question: Is what we do in rectly related to income loss because of some antitrust action. Chapel Hill helping the factory worker in record low prices, then a lot of farmers How in the world can our family Kannapolis? are not going to be able to live to farm farmers make it when you have four The best tribute we can give him is another day. large firms, the packers dominating all the good works performed in the fu- We have to get this assistance to the livestock farmers, the grain com- ture by those who were touched by him farmers. It has to be in this ag appro- panies dominating the grain farmers? and his life. Chancellor Hooker was an priations bill. I will tell you some- There has to be some fair competition. extraordinary man. He will be missed thing. I do not even like coming out Everywhere our family farmers turn, by me, he will be missed by every sin- here and fighting for additional bailout whether it is from whom they buy or to gle citizen in North Carolina, and he for farmers or additional credit assist- whom they sell, we do not have the will be missed by all those who knew ance, because most of the farmers in competition. him. North Carolina and Minnesota, and Let’s really be on the side of these With that, I yield the floor, Mr. around the country, are not interested family farmers and insist on some com- President. in bailout money. They are interested petition. Let’s have the courage to Mr. WELLSTONE addressed the in being able to get a decent price. take on some of these conglomerates Chair. That’s what they are interested in. that have muscled their way to the The PRESIDING OFFICER. The Sen- Let me go on. Let me say, again, this dinner table exercising their raw polit- ator from Minnesota. appropriations bill will be an appro- ical power over our producers and over S7796 CONGRESSIONAL RECORD — SENATE June 29, 1999 our consumers, and, I say to the Chair, The right to privacy is relevant for such an important question. That is who is my friend, I think over the tax- the potential for genetic map research, what last week was about. That is what payers as well. for testing, and, for that matter, treat- the beginning of this week is about. So I am all for a focus on family ment, for maybe even finding cures for I hope there will soon be an agree- farmers. This is a crisis all in capital diseases. There are a lot of people who ment. I hope there will soon be a de- letters. I hope we will have some ac- are not going to want to be a part of it, bate. My hope is that before it is all tion. But I want to make it crystal and there are a lot of people who are over, we can pass a good piece of legis- clear, I think these are the issues that going to worry about that information lation that will not be an insurance are at stake. if we don’t have the privacy rights. company protection act but will be a f Conclusion: The pendulum has swung consumer or patient protection act. PATIENTS’ BILL OF RIGHTS too far. I think we should be talking I yield the floor. about universal health care coverage as Mrs. BOXER addressed the Chair. Mr. WELLSTONE. Mr. President, I well, and we will. At the moment, here The PRESIDING OFFICER. The Sen- also want to make it crystal clear that is what we are faced with. ator from California. I have been proud to join with my In the last several years, since we Mrs. BOXER. Mr. President, I thank Democratic colleagues out here on the were stalemated on every kind of the Senator from Minnesota. Before he floor; and the sooner we have Repub- major national health insurance legis- leaves the floor, I say to my friend that lican colleagues joining us, the better. lation or universal health care cov- he pointed out we have been talking We have been focusing on the impor- erage bill, major changes have taken about this for a week solid. I came tance of patient protection legislation. place in health care, not here in Wash- down to the floor today to talk about Protection of medical records privacy ington but in the country. They have how we have been fighting this for over is very important to the American peo- been revolutionary in their impact on 2 years. We have increased and we have ple. I hope we will have an opportunity people. The pendulum has swung too escalated the debate in the last week, to debate the Patients’ Bill of Rights far. We have now moved toward an in- but I asked my staff to go through my because I want to offer an amendment creasingly bureaucratized, corporat- earliest talks on this subject. for segregation of records. The right to ized, impersonal medicine where the Mr. WELLSTONE. Will the Senator privacy is deeply rooted in American bottom line has become the only line, yield? culture. American citizens expect that where you have a few large insurance Mrs. BOXER. Yes. we will continue that tradition. companies that own and dominate the PRIVILEGE OF THE FLOOR This amendment allows a person to majority of the managed care plans to segregate any type or amount of pro- Mr. WELLSTONE. Mr. President, I tected health information, and limit the point where consumers, ordinary ask unanimous consent that Tiffany the use or disclosure of the segregated people, the people we represent want to Stedman, who is an intern, and Carol health information to those people spe- know where they fit in. Right now they Rest-Mincberg, who is a fellow, be cifically designated by the person. I don’t believe they fit in at all. granted the privilege of the floor So without going into all the spe- want to just give one more example today. cifics, because we have been talking and, in this small example, tell a larger The PRESIDING OFFICER. Without story. about this for a week, what people in objection, it is so ordered. It would allow a person, any of us, to the country have been saying is, if you Mrs. BOXER. I know we are running take some of the particular private want to do a good job of representing short of time so I will be glad to yield health information, and make sure it is us, please make sure we have some pro- to my colleagues for questions. not a part of a total record by seg- tection for ourselves and our children On January 28, 1998, I came to the menting it off and preserving privacy. to make sure we will be able to get the floor and talked about the case in my We are getting more and more worried care we need and deserve. That is what State of a gentleman named Harry about genetic testing. For example, if we hear from the patients. That is Christie who had a very poignant story you are talking about a woman who what we hear from the consumers. to tell me about his daughter who, has genetic testing for breast cancer, What we hear from the providers, the when she was 9 years old, was diag- she may fear the results if she thinks care givers, is, Senators, we are no nosed with a very malignant and dan- the life insurance companies are going longer able to practice the kind of gerous tumor in her kidney. It was ex- to get ahold of this information or em- medical care we thought we would be plained to Mr. Christie that there were ployers are going to get ahold of this able to practice when we went to med- only a couple of surgeons who knew information. She might not want to ical school or nursing school. We have how to operate on this kind of a tumor, even be a part of this testing. become demoralized. Demoralized care and it would cost $50,000 for the oper- We want to protect the privacy givers are not good care givers. So we ation. rights of people. The same thing could have a lot of work to do to make sure He went to his HMO. He said to them: be said for people who are talking to we have families in our States getting Look, this is my flesh and blood, my their doctor about mental health prob- the health care they deserve. That is daughter. She means everything to me. lems or substance abuse problems. The what this debate is all about. I am assuming the HMO will allow me same can be said on a whole range of We have been trying for a week to to go out of the plan, get the specialist, other issues. get some commitment from the major- and then the HMO will pay the spe- There is the whole question of mak- ity party that we would have a sub- cialist. ing sure ordinary citizens have some stantive debate. That is the Senate. I They said: No, we have good privacy rights, some protection in hope that we will have an agreement. I oncologists on our staff. We have good terms of who gets to see their medical hope we can come back to this. I hope physicians, and they will handle it. records and who doesn’t, making sure we will have an agreement, and then I He said to them: Did they ever do it is not abused. I will give a perfect ex- hope we can have the substantive de- this kind of pediatric surgery? ample. I have never said this on the bate and Senators can bring amend- No, they had never done it in their floor, but I will to make a larger point, ments to the floor. lives. I had two parents with Parkinson’s dis- There are several amendments I am And Mr. Christie said: This is an im- ease. Research is now showing there is very interested in, and probably a num- possible situation, and I won’t accept probably some genetic predisposition. ber of other Senators have amend- this. As we move forward with this research, ments they are interested in. We will They said: Then too bad. You will I may want to be a part of whatever vote them up or down. We will all be have to pay for it yourself. kind of test or pilot project is put to- accountable. We will all do what we Well, that is exactly what he did. It gether by doctors. But maybe I think is right for the people in our was not easy. wouldn’t, if I thought there would be States. What about parents who can’t do no way that, whatever their research The point is, we are not going to ac- that? What happens to their child? suggested, that I wouldn’t have some cept not being able to come to the floor This is just one story. I told it Janu- right to ensure I had some protection. and fight for people we represent on ary 28, 1998. By the way, the end of the June 29, 1999 CONGRESSIONAL RECORD — SENATE S7797 story is that Carley is now 15 years old tween Democrats and Republicans on your life trying to save others’ lives, and her cancer is gone. She is a fan- giving patients and families across and now you can’t do it—a doctor in tastic young woman. America some rights when it comes to Highland Park, and a doctor in Texas. Mr. SCHUMER. Will the Senator dealing with these insurance compa- It goes on. yield? nies. The Republican leadership does I would be happy to yield to my Mrs. BOXER. Yes, I am happy to not want this debate. We think the friend. yield. American people do. We think that is Mr. EDWARDS. With respect to the Mr. SCHUMER. I would like to ask why we were elected—because families instance described by our distinguished the Senator a question because I have across America know there is real con- colleague, the Senator from Illinois, heard of so many similar instances. A cern when you take your child to the where obviously a catheterization young woman, a nurse on Long Island, hospital. would have saved this patient’s life, needed an orthopedic oncologist to re- I literally ran into a doctor from will the Senator from California ex- move a tumor from her leg. No, she Highland Park, IL, Sunday night who plain to the American public and to can’t have it. She couldn’t afford it. So told me a terrible situation that just our colleagues, No. 1, when they de- she went to a regular orthopedist, not happened to him a week before. He is a cided initially, no, we are not going to the oncological orthopedist, who took cardiologist. A woman came in to see pay for the care, and, therefore, they out the tumor. It grew back. She can him in his office on a Thursday com- could not get the test done, and a lot of hardly walk. Then she had to go to an plaining of chest pains. He was worried life-saving tests that needed to be oncological orthopedist and pay the and said: I want to get you into the done, what avenue or recourse does $40,000 herself because there was no hospital tomorrow morning for cath- that patient have? Is there anything other choice. eterization. It is a diagnostic process they can do under the circumstances So the Senator is right. She has to find out what was wrong with her under existing law if we don’t pass a fought for this for so long. heart. She said: Fine. He said: We will real Patients’ Bill of Rights? I just heard—parenthetically, it is do it tomorrow morning. Mrs. BOXER. We have to pass a Pa- sort of related, because one of the He called her insurance company. tients’ Bill of Rights, because, unless things that inspired some of us to join The insurance company said: No, we you are so wealthy that you can pick in this fight was what happened on don’t approve of the hospital where you up the tab and the cost for these very guns—for instance, that the majority want to send her. Let us call our hos- expensive procedures, you are just leader in the House has said they would pital under her insurance policy, and plain out of luck. We have said this a not appoint conferees at least until we will see when we can get her sched- number of times to our friends on the after July 4, which I consider truly uled. other side of the aisle. We have good outrageous. I will talk more about that They told that to the doctor on Fri- health insurance as Members of the later when we get time. I think it is so day. They never had a chance to sched- Senate. We really do. We are fortunate. wrong to not allow the will of the peo- ule it. She passed away on Sunday. We have the clout. We have good ple to happen. We are doing the same That was a decision made by the insur- health insurance. We are trying to thing on the Patients’ Bill of Rights. ance company not to let this woman go bring everybody up to our standards. We just want to debate and let people to a hospital on a Friday morning to Mr. DURBIN. If I can ask the Sen- vote on what is important. get the catheterization. They did not ator, isn’t it true that, as Senator ED- I ask the Senator, is this the only understand her problem. WARDS of North Carolina just said, the Is this not what this debate is all case she has heard of in this situation, example I gave where the lady didn’t about? or do you hear, when you go around get the catheterization and passed Mrs. BOXER. It is exactly what this away—if her family hears of this and your State, as I go around mine, hun- debate is all about. dreds of cases where people are denied I want to talk about another case they are upset and want to go to court treatment that the doctors feel they that I brought up about a year or two and believe there has been medical need? They sit there in anguish. ago, also a doctor with a similar story malpractice and negligence—the only Mrs. BOXER. Yes. in Texas. He came to testify before the exposure and the only thing they can Mr. SCHUMER. They almost go into Democratic Policy Committee. This sue the insurance company for is the complete debt to get the operation or was in Texas. This doctor was assigned cost of the catheterization, or for the get an inferior product. to work in the emergency room. A gen- procedure? That is it under the law. Mrs. BOXER. Yes. My friend is ex- tleman comes in with terribly high And that our bill says health insurance actly right. blood pressure. They checked him into companies, as every other company in First of all, I think his point about a room, and they monitored his blood America, will be held accountable for the House putting off any action on the pressure. It could not be controlled by their actions. If they are guilty of neg- juvenile justice bill that deals with medication. They were giving him a lot ligence, they can be held accountable. making sure we keep guns out of the of medicine that didn’t work. The doc- But under current law, a law being pro- hands of children and criminals is an tor called the HMO and said: We need tected by the Republican bill, the pa- outrage. When they tried to put this to keep this patient overnight. I am tients will not have that right of recov- bill forward, we pointed out it was real- very fearful he will have a stroke. ery. ly a sham. Now we have the same thing Bottom line: The HMO says: You con- Is that not the fact? in the Senate. trol it by drugs. He says: I can’t. Mrs. BOXER. That is the most in- I think the Senator from North Caro- He has to now tell the patient that credible thing about this. As I said, in lina was speaking before and we were the HMO won’t cover this, and he says many of these cases, the doctor can be talking. He points out that it is not a to his patient: Pay for that out of your sued if he is working and he is con- question anymore of the Republican own pocket; I will fight for your right tracting with the plan and not an em- bill or the Democratic bill. He said to be reimbursed. ployee. The doctor can be sued—a doc- that we ought to just say it is about a The patient said: How much will it tor who is trying to fight for the pa- bill that is supported by patients and be? Five thousand dollars. I can’t do it, tient—but not the HMO. doctors versus a bill that is supported says the man, I am sure the HMO Mr. EDWARDS. If the Senator will by insurance companies. We under- wouldn’t hurt me. yield for one other question, with re- stand on this side of the aisle that it is P.S.—you know the story. The gen- spect to what my distinguished col- supported by patients and doctors. tleman had a stroke, and he is totally league from Illinois just pointed out, it Mr. DURBIN. If the Senator will paralyzed on one side. is my understanding that under exist- yield, I would like to ask a question of The irony of all ironies about this is ing law we have this very privileged her. I think it is important to remind that under current law the doctor can group of insurance companies—very those who are following this debate be sued but not the HMO that actually wealthy insurance companies—that are why we are here. We are here trying to made the decision. singled out in American life as not bring this issue to the floor of the Sen- Isn’t there any wonder that doctors being held accountable for what they ate. We want there to be a debate be- are joining with patients? You spend do. You and I can be held accountable. S7798 CONGRESSIONAL RECORD — SENATE June 29, 1999 Everybody in our State of North Caro- Group had. A woman from an HMO can be held accountable. They can be lina, and Illinois, New York, and Cali- spoke. By the way, she was afraid to held responsible. They can be held re- fornia, can be held accountable. Every show her face. She was on a satellite sponsible in a court of law. other business, small and large, can be television hookup with her face cov- Those two things together—a truly held accountable. But the health insur- ered and her voice was disguised be- independent review, done swiftly so re- ance industry is special. It is different. cause she was a whistleblower. versals can occur, combined and work- It is better than the rest of us. It can’t In the course of her testimony, she ing in concert with arbitrary, money- be held responsible. said something that made my skin driven decisions where if some child is I want to know how the Senator from crawl. I wonder if my friends feel the severely injured as a result, they can California would respond to a family, same. We kept asking questions about be held accountable. or to our children who we are trying on patients. We said: What happened when I wonder if the distinguished Senator a daily basis to teach about personal a patient came in and had heart symp- would comment on whether she be- responsibility, personal accountability, toms? How was it handled? Who made lieves those two things, working to- something that all of us believe in the decision? gether, create a tremendous incentive deeply, how do we explain that we have In the course of describing the pa- that does not presently exist for HMOs singled out this very well-to-do indus- tient, she said: This unit was a case we and health insurance companies to do try for privileged treatment, and, in felt we had to look at. the right thing to start with, so we fact, unlike our children, unlike our I said: What did you say? never get to an independent review families, we are not going to hold them She said: This unit. board, we never get to a court of law; responsible or accountable? I said: What do you mean, this instead, insurance companies and Mrs. BOXER. I think the Senator has ‘‘unit″? HMOs are doing the right thing, not made a very good point. If we believe That is how we refer to clients. making arbitrary decisions, doing what that each of us should be responsible I said: You mean patients? the treating doctors are advising needs for our actions and our deeds, the cur- She said: Yes, we refer to patients or to be done in the very first instance rent law certainly undermines that. It clients as units. when it is most important and could do is unfathomable to me. As the Senator I had this sense there was no human- the most good. from Illinois has pointed out in an- ity left. It is all about ‘‘units.’’ It is all Mrs. BOXER. I thank my friend from other debate, the only people in our about dollars. It is all about the bot- North Carolina for articulating two country today who are truly exempted tom line. It is all about profit. It is not areas of our Patients’ Bill of Rights from any kind of accountability—you about serving. That is why doctors are which are so important: The right to can’t go after them—is a foreign dip- saying this is against their Hippocratic independent review if a patient feels lomat and an HMO. Something is oath: Do no harm, help people. the HMO made a mistake, and the abil- wrong with that. Now they are doing harm. They are ity to hold HMOs accountable if they Mr. SCHUMER. I was going to ask in situations where they have predicted do the wrong thing. the Senator another question related patients could die if they didn’t get the By the way, the opposition from the to one of the other problems we face; treatment, and the HMO didn’t give other side is misleading because all we that is, even before they get the right the treatment. do is say if States choose to hold HMOs to sue, there is an appeal. I want to hear from my friends as we accountable, they can. We don’t dictate Let us say, as in the case that the go back and forth on this question. the law on the right to sue. It is up to Senator from Illinois brought up and I yield to the Senator from North the States. However, we lift the im- the unfortunate death that occurred, Carolina. pediment to holding them responsible. the doctor said that she needed cath- Mr. EDWARDS. I was thinking about I think it is important to note that eterization, and it is denied by the in- the comments from the Senator from we in America have the safest products surance company. The only type of ap- Illinois, the comments from the Sen- in the world, even though every once in peal that is required by law is an inter- ator from New York, and the com- a while there is a horrible example of nal review. I want to know if that is re- ments made about the health insurance something monetarily wrong. The rea- quired—that the only appeal that executive accounting, talking about son is, we hold companies accountable would be required would be an internal human beings as ‘‘units.’’ if they make an unsafe product that review. I did understand the Senator cor- could explode and harm a child. Most I ask the Senator a question, and rectly? of the time we don’t have any problem that is this: Wouldn’t it be much fairer Mrs. BOXER. Units, U-N-I-T-S. because we have a very clear precedent if it at least were mandated that there Mr. EDWARDS. Units. Not human in law that says if you don’t take into be some external, impartial review so beings but units. account what your product can do to a that in instances over and over again Under existing law, health insurance human being, and they get hurt, you where inadequate health care maybe companies have proven time and time will pay a price. For HMOs, we don’t do would be provided before the stroke oc- again they are motivated by one thing, that. The irony is that they are dealing curs—as in the case related by the Sen- and that one thing is the dollar bill. with life and death decisions every day ator from California, and the unfortu- Profit is the bottom line. and they are making wrong decisions. nate death that occurred—some out- We have talked about doing two My friend is right on those two as- side, independent reviewer gets to say, things in a patients’ bill—not in an in- pects of our Patients’ Bill of Rights, hey, that actuary didn’t quite make surance industry bill. Since money working together. the correct medical decision; I agree seems to be what motivates these Mr. WELLSTONE. I follow up on with the doctor? folks, we will do two things. what the Senator from North Carolina Mrs. BOXER. My friend is right on No. 1, as the distinguished Senator said. point. It is another aspect of our Pa- from New York mentioned, we will cre- Five years ago I introduced a bill on tients’ Bill of Rights where you have a ate an independent body that can over- patient protection. This matter has truly independent outside review so the see the insurance industry, the HMO. been going on for a while. There is an people who are looking at the actions When they make arbitrary decisions, issue that defines ‘‘medical necessity,’’ of the HMO are not part of the initial when they decide even though it is another issue the Senator from North decision. On the other side of the aisle, clear a patient or child desperately Carolina raised about an external inde- they have an appeals process where es- needs a treatment or a test and that pendent appeals process, another issue sentially the HMO says who the out- was an arbitrary decision, they can get on ‘‘point-of-service’’ option—making side reviewers are. That is not really a quick reversal from that truly inde- sure the families have a choice, and an outside review. pendent board. That is one thing. they don’t now have when the em- I want to say to all of my friends who In addition to that, we also say ployer shifts from one insurer to an- have been so good on this issue I had health insurance companies and HMOs, other. such a transforming event 2 years ago as every other segment of American so- There are two bills on the floor. Peo- at a hearing the Democratic Policy ciety, will be treated the same. They ple in the country have become more June 29, 1999 CONGRESSIONAL RECORD — SENATE S7799 and more disillusioned with the poli- employers; it is fine if they have to pay values. But we have found, starting tics that they think is dominated by extra or if they have to do these about 6 years ago, that the teachers in money and special interests. things. our public schools have been yearning Does the Senator from California However, the only consistent pattern for something they would like to teach agree people want to see a piece of leg- if you look at the coverage, this is not our children that for some reason had islation passed that has some teeth in a patients’ protection bill; this is an in- been eliminated from both the public it, that will make a difference and pro- surance industry protection bill. and private school agenda. It is some- vide some protection? I yield to the Senator for her com- times referred to as character edu- My question is, Do the Senators ments. cation. think this patient protection legisla- Mrs. BOXER. It perplexes me that I chose to call it ‘‘Character Counts’’ tion, what we are trying to do, is a test my friends on the other side have a bill and I chose to speak about a specific case as to whether or not the Senate that doesn’t cover everyone. program that is being used in many belongs to the insurance companies, or It perplexes me it is called the Pa- public schools in our country, and cer- whether or not the Senate belongs to tients’ Bill of Rights. As my friend tainly in my State of New Mexico, the people in this country? points out, if you look at the dif- whereby the teachers take six pillars of Is that too stark a contrast, or does ferences, whether it is the appeals character and they embrace those it ultimately boil down to that core process—and my friend last week came within the classroom—on a day-by-day question? to the floor and pointed out that under basis, not as a special class. But let me Mrs. BOXER. I think the Senator has the Republican proposal it doesn’t look just mention a few of the Character put his finger on it exactly right. as if there is an outside entity looking Counts traits that are part of this pro- Who is supporting our Patients’ Bill over the HMO decision but, rather, gram and used in many schools. of Rights? It is every patient advocacy someone essentially selected by the Let’s start with the first one. It is trustworthiness. In some public schools group, every provider who has an orga- HMO itself. and private schools, especially in the nization, including the nurses and the I thank my friend for yielding. grade schools, for one entire month, doctors. And who is on the other side? f The insurance companies. the school would promote the idea of What do we have? Two bills. The bill ORDER OF PROCEDURE trustworthiness by students and teach- on our side is supported by these advo- The PRESIDING OFFICER (Mr. ers, who have lesson plans and pro- cacy groups and doctors; the other is CRAPO). Under the previous order, the grams that articulate what trust- supported by the insurance companies. time from now until 4:15 shall be under worthiness is. They use this with the My friend is right. People are getting the control of the majority leader or students, and they from time to time so upset that this place seems domi- his designee. engage in discussions, engage in activi- nated by the special interests. The Senator from New Mexico is rec- ties around the school that epitomize I yield the remaining time to my ognized. trustworthiness. I think we all under- stand trustworthiness is one of those friend from Rhode Island. f Mr. REED. I thank the Senator from characteristics and qualities of char- California. NATIONAL CHARACTER COUNTS acter that says you should not lie. It Let me follow up and perhaps engage WEEK says if you agree with somebody to do in a brief dialog. I think the Senator Mr. DOMENICI. On behalf of the something, you should live up to your from Minnesota made a good point leader, I ask unanimous consent the agreement. Trustworthiness has a about the heart of the Republican leg- Senate now proceed to the immediate quality of loyalty to it. Then maybe the next month, one of islation. The most telling point, in my consideration of Calendar No. 148, S. the other six pillars would be discussed view, is the coverage. It simply covers Res. 98. and woven into the curriculum. The one-third of the eligible private-in- The PRESIDING OFFICER. The next month, it may very well be ‘‘re- sured individuals throughout the coun- clerk will report. spect.’’ The same kind of thing might try. The legislative assistant read as fol- happen during that month in some As I understand the legislation, it is lows: grade school in New Mexico or Idaho or aimed at those self-insurers. These are A resolution (S. Res. 98) designating the the State of Tennessee or the State of businesses that contract with HMOs week beginning October 17, 1999, and the Connecticut, where an awful lot of ac- simply to manage the health care of week beginning October 15, 2000, as ‘‘Na- tivity in Character Counts education is their employees, so the only people tional Character Counts Week.’’ taking place. who will directly be impacted by their There being no objection, the Senate Maybe the next month it might be legislation are those individuals who proceeded to consider the resolution. the third trait, which is ‘‘responsi- are essentially insured by their em- Mr. DOMENICI. Mr. President, the bility,’’ and then maybe the next would ployers directly through self-insurance. resolution I have just alluded to is a bi- be ‘‘fairness,’’ and ‘‘caring,’’ and ‘‘citi- Mrs. BOXER. That is correct. partisan resolution. A number of years zenship.’’ Mr. REED. In a sense, the only pro- ago we started this approach to char- I have been part of this now for a tections in the Republican bill are pro- acter education called Character number of years. It is a joy to visit tections for the insurance industry. Counts. Senator Nunn was the cospon- public schools, parochial schools, and They are completely without risk. All sor of a resolution that passed the Sen- other kinds of schools, and visit a class of their patients, all of the people they ate on innumerable occasions, perhaps and just talk to the young people about directly insure, where they directly as- as many as five times. It declares for the word of the month; to see the sume the risk, are exempt from cov- all of America that one week during teachers, how excited they are that for erage by this legislation. the year will be known as called Char- that month the children have been The Democratic bill covers all of acter Counts Week. talking about responsibility; they have those who are private-insured HMOs Frankly, from this Senator’s stand- been talking about that in terms of throughout the United States. If the point, we hear so much about what we their classmates, their teacher, their logic is these protections are good ought to do and what we can do to help responsibilities at home. enough and necessary enough for those our young people as they grow up in Then if you are lucky, you might in employer-sponsored self-insured this very difficult society and often choose to visit a school at the time plans, why aren’t they good enough, very difficult time. We all understand once a month when they are having an important enough, necessary enough, that there are many people who have assembly. During Character Counts as- for those who are direct insurers of primary responsibility for our children. semblies, schools bring all the students HMOs? We are not in any way talking about together, and they present awards to The answer, frankly, is that the leg- negating that primary responsibility, the students that month who were islation has been designed to protect that of relatives and grandparents and most responsible. One way of rein- the insurance companies from any ad- mothers and fathers and brothers and forcing the importance of good char- ditional risk. It is fine if we put it on sisters to help raise a child with good acter is to reward those who did more S7800 CONGRESSIONAL RECORD — SENATE June 29, 1999 things than anyone else that month to ligions values are to be taught in the gage us in a discourse and dialog about demonstrate ‘‘trustworthiness,’’ or ‘‘re- schools, for as soon as we do that, we character education and, in particular, sponsibility,’’ or ‘‘caring,’’ or ‘‘re- have to ask which ones are being left how Character Counts works in the spect,’’ or ‘‘citizenship.’’ out. And as soon as we do that, we places it is being tried. Actually, Character Counts and its begin to break down the wall of separa- There is not an organization that dic- Six Pillars are not the only character tion between church and State, which tates Character Counts for the Nation, education idea and program taking is such a formidable part of America as nor does it promote it nationwide. This place in our country. But it is one of it started under our forefathers and is an activity left up to localities. The the best. The resolution we have just continues today. only thing is, it is coordinated in our adopted resolves and proclaims the It is interesting. I have asked in country by an entity which came up week beginning October 17 of this year, many assemblies of adults whether with these six pillars, the Josephson and the week beginning October 15 in there was any objection in the commu- Institute of Ethics. That institute the year 2000, to be National Character nity—be it the community of Gallup, helps provide materials and the know- Counts Week. We request that the NM, or Clovis, NM, or Las Cruces, NM, how for localities, schools, Boy Scouts, President issue a proclamation calling or Albuquerque, my home city—to athletic clubs and others to promote upon people and interested groups to these six pillars. If one thinks them these six pillars. But, it is up to the lo- embrace the six core elements of char- through, they are so fundamental and cality to do something about it. acter identified by the Aspen Declara- desperately needed that hardly anyone But today, we are going to adopt this tion, which are trustworthiness, re- can object to them. resolution celebrating Character spect, responsibility, fairness, caring, I wish the Governors of our country— Counts in the hope of raising awareness and citizenship. That week the people and I am going to ask them, along with and encouraging states and localities in the country observe as National my good friend and chief cosponsor, to consider using this approach in their Character Counts Week, with appro- Senator DODD of Connecticut—might communities. priate ceremonies and activities. adopt this in their States. I want to I note the presence on the floor of my There are many Senators who have work with the Governors to move to- cosponsor who has done a wonderful already joined in this effort from both gether with the public institutions of job in his State, and also speaks about sides of the aisle. Some are very active education and the private institutions Character Counts and the six pillars in in their home States, and some are not. of education to begin a broader-based various places in this country. He has But I can say to any Senator who promotion of Character Counts in more had a significant degree of success. The would be interested, there is a format States. way it is run in his State is different which is very simple and at the same Frankly, a number of our Senators than our State, but, nonetheless, the time very effective and profound, have been involved in the past. Senator six pillars are becoming prominent. where a Senator or any elected official DODD has brought this idea to his These six pillars are becoming promi- can get together with the super- State, and Senator LIEBERMAN works nent in the education of young people. intendent of schools and others and with him. Senator FRIST of Tennessee We might never have thought we could talk about joint sponsorship of Char- has had great success in getting it include them, but in the backs of our acter Counts in that particular public started, and now it is multiplying in minds we always thought they must be school. If the board of that school con- his State. I have had a rather phe- used. dones it and says it is a good idea, then nomenal success in New Mexico. In my How can we raise children without it is all a question of leadership and small State, over 200,000 young people, responsibility, without caring and re- who wants to pursue it and push Char- one way or another in classrooms spect being meaningful to them? acter Counts. So when graduation at a across our State, are learning and liv- I am very pleased to be part of this Character Counts school occurs, you ing these six words, these six pillars of again this year. Like I said, I am going can attend and you can see what the 9 character, as part of their 9 months of to try to be a little more effective in months of character education have education. It is having a profound ef- expanding Character Counts to a few done. At schools where arithmetic was fect. more places with the help of my col- taught, grammar was taught, reading On the other hand, there are cynics. league, Senator DODD. As I said in Sen- was taught, all of a sudden the young They ask: How do you know? Are you ator DODD’s absence, we are going to kids also know something about these sure? ask Governors to take the lead. We will six pillars of character. We do not know for sure, although we join them and get the Josephson Insti- Frankly, people ask what has gone are beginning to get some objective tute and any others that are involved wrong with our country and what analysis that seems to indicate that in character education and move it should we do about it. some of the things going wrong in the ahead so that many States will be like I am no prophet, and I am not one schools before are not going wrong Senator DODD’s and mine where it will who thinks he knows all the answers, when the six pillars of character are be flourishing among young kids. but I say what is missing in the United utilized, are popular and preeminent Mr. President, I say again, today, for States more now than 20 or 30 years and where the children are partici- the sixth consecutive year, we will ago is character. The old Greek phi- pating in building their character adopt a resolution designating the losophers talked about character. I around them. third week of October as National think it was Plato who said a country I believe we are better off trying Character Counts Week. Once again, without character is a country that character education than not. If I had this resolution has received over- cannot exist for long, and that for a to guess what might change things, I whelming bipartisan support with 57 country to have character, the people would say if the young people in our cosponsors. Through this measure, this in the country must have character. country can build individually and col- body—the United States Senate— What we are speaking of is our little lectively into their daily lives the six pledges its support and encouragement mission and our part in trying to pillars of character celebrated in this of character education and training by change the quality of lives of young resolution, so they feel part and parcel setting aside one week for a celebra- people by letting them know that some and immersed in the ideas of respect, tion. Yes, National Character Counts things are better than other things, trustworthiness, caring, and the other Week, October 17–23, 1999 and October there are some things that are right three pillars I have mentioned here- 15–21, 2000 will be an opportunity for and some things that are wrong. tofore, we have a better chance of ef- schools, communities, and youth orga- Nobody seems to object across this fecting some change for the positive nizations all over America to celebrate land to these six pillars, these six than almost anything else we can do. the ideals of good character and honor words. It used to be whenever one I am going to do my share to keep those who have worked so hard talked about behavior and said values, this going in my State. I am also going throughout the year to promote values people would wonder, whose values? to join Senator DODD in meeting at the such as trustworthiness, caring, fair- In our America, under our Constitu- next opportunity with the Governors in ness, respect, responsibility, and citi- tion, we surely cannot decide which re- a bipartisan way to see if they will en- zenship. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7801 I believe it is time to reclaim the im- him for his leadership on this issue. We respectful citizen. You can add other portance of these values in our daily have worked on this issue together, words, as I said. lives. Many Americans, I regret, have along with several of our colleagues for Regrettably, today, for a lot of rea- become too cynical about the role of the last 5 or 6 years. sons which we do not need to go into character in modern society. For too It all began because the Senator from this afternoon, young people are enter- long, we have declined to discuss fun- New Mexico discovered this program ing a school system not having learned damental moral principles in our and brought it to the attention of the these basic values. It has nothing to do schools for fear of offending someone Senate and asked a group of his col- with economics. It has nothing to do or imposing our beliefs. However, we leagues if we wanted to get involved in with race or religion. nearly forgot that this nation was this idea of Character Counts. I can show you communities in my founded upon basic values. These val- I will not go through the long history State that are some of the most afflu- ues have bound our citizens together of it, but one can imagine how provoca- ent in the country where children are and sustained them through wars, de- tive a meeting it was in Aspen, CO, entering a school system without these pressions and other adversities. Indeed, when educators, child psychologists, values. I can also take you to some of it is our belief in these core values that and Lord knows who else, gathered to- the poorest neighborhoods in my State continues to make the United States a gether—quite a group of people—to try and show you where children are enter- beacon of hope and opportunity to peo- to come to some conclusion about six ing school with these values. I could ple around the globe. pillars of character. Apparently the de- also show you children out of those The ‘‘Six Pillars of Character’’ con- bate went on for some time on which communities who do not have those cept reflects these core values. They pillars they could agree on. They fi- values. are the building blocks to helping our nally settled on respect, responsibility, So it was decided a number of years children recognize the difference be- trustworthiness, caring, loyalty, hon- ago we ought to try to weave into the tween right and wrong, and they de- esty, and fairness. educational process the teaching of serve a place in our schools alongside This is not an all-inclusive list. these values, and to do so in a way that lessons in math and reading. Although There may be other ideas. There may would not confront, if you will, the parents do bear ultimate responsibility be synonyms for each of these words agenda that a teacher, a school system, for teaching children the value of that others find more acceptable to has on a daily basis, but to weave it human dignity and character, we, as a their particular community. into the seamless garment of a stu- community, have a duty to support The point is not to be rigid about the dent’s daily life. these messages outside the home. To words or rigid about how to best pro- So instead of having, say, 15 minutes that end, Senator DODD and I are ex- mote these values among our young at the outset of the school day in ploring ways to expand the role of people. What is important is that there which the principal comes on the loud- character education in schools and be community efforts, efforts at the speaker and says: We are now going to after-school programs, and we urge our neighborhood level to promote the idea talk about trustworthiness for 15 min- colleagues to join us. I can assure the of strong values in our young people, utes—and if any of us here recall those Senate, character education programs not only young people but young kinds of discussions growing up as chil- have been phenomenally well received adults and adults as well. dren, we all know what happened: We in school systems throughout the coun- One of the beauties of this program is yawned; we fell asleep; no one paid try. it does not focus just on the children in much attention; we hardly remember In my own State of New Mexico, the schoolroom. But when the issue of what the principal had to say—what teachers have told me they finally feel trustworthiness is raised as an issue Character Counts says is, we are not empowered to discuss what it means to that the school is going to focus on for going to do it that way; we are going to be a good citizen and a good person a particular period of time—a day, a take the word ‘‘trustworthiness,’’ or with their students, and they love it. week, a month—everybody in the ‘‘loyalty,’’ or ‘‘respect,’’ or ‘‘citizen- Schools across the state have walls school is involved with the issue of ship,’’ and we are going to ask you to covered with posters on what ‘‘respon- trustworthiness. The administrators, weave it into the daily life of a stu- sibility’’ means, and students who dem- the teachers, the coaches, the faculty dent—not for a day or a week, but for onstrate outstanding acts of caring, for advisers, as well as the students, share a month. example, are celebrated at pep rallies. in coming to a better understanding of That is what we have done in Con- These simple lessons are taking root how that particular value can be en- necticut—a month. So from the begin- among our children, and they must be hanced and understood and promul- ning of the day, whether it is math encouraged. gated within the community. class or science class or whether the I am not suggesting that character This has been a tremendously suc- student is going to band or working on education is the magic elixir that will cessful program. In my State of Con- the school newspaper, or showing up on prevent tragedies like the Columbine necticut, there are now some 10,000 the athletic field—whatever the activ- High School shooting from happening, young people who have gone through a ity is—that school tries to take one of but it’s a start. We, as a society, need Character Counts Program. I do not those pillars and make it a part of that to tell our children that lying is not know the exact numbers in my col- teaching experience, for the full pro- acceptable, under any circumstance. league’s State of New Mexico, but it is gram, in a sense, to weave it into it so Stealing cannot be allowed. Breaking easily that or more. We are small that everybody in school, for that pe- the law will not be tolerated. We also States. We are not large States. But it riod of time—in our case, a month— need to reinforce positive values, and is a good indication of how successful works on that word—‘‘respect,’’ ‘‘trust- programs like Character Counts do just this program has been. It has expanded worthiness.’’ What does it mean? What that. I applaud the Senate for passing primarily as a result of word of mouth, is the absence of it? How do you be- this resolution designating a National good reputation, one teacher telling come more respectful, more trust- Character Counts Week for this year another teacher in another community worthy? What are examples when it and next, and I encourage my fellow how it works, one principal telling an- does not happen? It becomes, as I said, Senators to continue to work with me other principal how well it works. That part of the seamless garment of that to ensure that our children receive is why it has expanded as much as it educational experience. strong and consistent messages on the has in my State of Connecticut. I have to tell you, you may say: Well, essential values our society must em- Education, as we all know, is a cen- this sounds wonderful, Senator. It is a brace in order to succeed. tral activity in any child’s life. We nice idea. I wonder how it is working. This is Republican time, but I am teach them to walk, to talk, to read, It is working remarkably well. I can going to yield on Republican time to and to write. But one of the most im- tell you, on the basis of countless con- my colleague, Senator DODD. portant things that a child can learn is versations I have had with people all Mr. DODD. Mr. President, I thank my how to get along with others and to be across my State, they point to this colleague from New Mexico for yielding a part of the larger community, to be a particular effort as having had success to me. Far more important, I thank responsible, caring, loyal, honest, fair, in changing the culture of a school. I S7802 CONGRESSIONAL RECORD — SENATE June 29, 1999 am telling you it has had a profound ef- with us and in some public relations ef- intendents and teachers on the six pil- fect not just on the students I men- forts, if you will, to raise the level of lars of character in Character Counts. tioned earlier but on the teachers, ad- awareness. It has been absolutely something that I ministrators, faculty, student advisers. We do not have a fixed idea in mind. just will never forget. They have all benefited as a result of My colleague mentioned Mr. Josephson I am quite confident that while it is weaving these Character Counts pro- and his program. It is a fine program. not the only answer, the elixir, to all of grams into their school life. There are others who have a different our problems, it is certainly a very We spent a lot of time over the last point of view on how best to make this positive thing going on in the lives of couple months after the tragedy of work. We have learned to respect what our young people. We ought to be proud Littleton, CO, talking about what we works in, say, a Native American com- of these efforts and certainly encour- might do to solve the problem. Without munity in the Southwest or a highly age Character Counts, where we can. belaboring the point, we sort of resort ethnic community in my State of Con- I would say to the Senate, if any of to our old bromides. We have one group necticut where you may have dif- you get involved in Character Counts, of us here that will convince you it is ferences on how you approach these it is very difficult for the schools to gun control that is the answer to the particular values. We let local commu- have success at the high school level, problem, and if we could just deal with nities and school districts and others but a lot of work is being done there. It gun control, we could solve the prob- try to sort out what size fits them best is among the grade school children lem. I happen to believe that is part of and how to make it work. where this program starts. As they the answer. We have others who say: That is what we want to support, we move through those years, when they Look, if we can clean up Hollywood, want to recognize, we want to bring at- have been exposed to character edu- the videos games, that is the answer to tention to. We want to promote and ex- cation for 4 or 5 years, there is a real the problem. I would not argue, there pand this. Again, we do not have any difference in how they perceive their is certainly an element that contrib- simple answers here for how you stop relationship to their teachers, to their utes to what happened. some of the problems we are seeing parents, and to their community. But frankly, what happened at that are becoming too frequent in our Mr. President, I understand that I Littleton, CO, did not happen all at society. have a number of minutes remaining once. The event did. But I suggest to But I stand here today and tell you under my control on the Republican you that what happened in Littleton, that if more communities would adopt side of this. CO, what happened in Arkansas, and a Character Counts program, if they The PRESIDING OFFICER. The Sen- Kentucky and Oregon, and other would at least try this—just try it; and ator has the remaining 15 minutes be- places, in my own State, isolated cases we can get you the information; we can tween now and 4:15. of violence began a long time before put you in touch with people who can Mr. DOMENICI. If there are any Re- the events. There was a breakdown at help you work through how to start it publican Senators who would like to home. There was a breakdown that oc- and get it going so you do not have to speak, they may certainly come and do curred weeks, months, years before, make it up on your own—then I prom- that now. I will yield the floor to them. that culminated in the tragic events of ise you, if you try this, if you really Mr. COCHRAN. Mr. President, on those days that we all remember with give it a chance, you can make a dif- May 6, 1999, I was pleased to join my such painful clarity. ference not only in your school’s life friend, the distinguished Senator from What Character Counts does here is, but the individual lives of the people New Mexico, (Mr. DOMENICI), in intro- it tries to get at the source of the prob- who enter those institutions. ducing a Senate Resolution designating lem early to try to see if we can begin It need not be just elementary the third week in October, 1999 and 2000 to change the direction, to offer a foun- schools or middle schools. We have not as Character Counts Week. I am de- dation in basic values to students so tried it extensively, but I know of one lighted today that we are approving that you might change a young per- in my State at the high school level this legislation, just as we have ap- son’s ideas on how they relate to each where Character Counts has worked, proved similar legislation in the Sen- other—understanding differences, re- where the principal said: We’re going ate every year since 1994. specting differences, not having to feel to try it. And it made a difference at In 1993, the Josephson Institute of alienated because you are different, not that senior high school. Ethics convened a conference of making someone feel isolated and So many say: Kids are too old then. ethicists, educators and other leaders alone because maybe they are not a They are not too old. They are looking to examine the issue of character de- good athlete or a great student—maybe for some direction, some ideas they can velopment. The result of that con- their clothes are not the ones you hold on to and grasp as roadmaps on ference, held in Aspen Colorado, was would wear or I would wear; they may how to proceed with their lives. the Aspen Declaration on Character listen to music that you and I would I think the 2 weeks we have des- Education. not particularly find appealing—but to ignated—October 17 of this year and The elements of character described understand that each person is God’s October 15 of the year 2000—as National in the Aspen Declaration were: trust- creation and that if we can inculcate Character Counts Week bring us one worthiness, respect, responsibility, them with a basic sense of decency, of major step forward, bringing some fairness, caring, and citizenship. They understanding that they are part of a needed recognition to this very worth- are often referred to now as the Six larger community, as I said at the out- while program that has made such a Pillars of Character. set, learning to respect each other, to difference already in the lives of thou- Today, more than 300 member organi- trust each other, to be honest with sands of people all across our country. zations, including community groups, each other, then we can begin to Again, I commend my good friend schools and businesses are part of a na- change the kind of culture, in my view, and colleague from New Mexico for his tionwide Character Counts Coalition. that contributes to this growing sense distinguished leadership on this issue. These organizations sponsor programs of violence we too often see among our Mr. DOMENICI. I thank the Senator that emphasize the importance of good young people. very much. character traits in our society. Amer- I again thank my colleague from New The PRESIDING OFFICER (Mr. GOR- ican society is dependent on the Mexico. He is the leader on this issue. TON). The Senator from New Mexico. strength of the character of her citi- I am his blocking guard here. I get in- Mr. DOMENICI. I have been a Sen- zens. volved whenever he asks me to, be- ator for a long time. I have partici- Never have we seen a time in the life cause I am so committed to it and so pated in a number of events that made of our society that good character has believe in what he is trying to do. me feel very good about my work and been more important. Solid lessons in I think the idea of getting our Gov- about my community and the citizens character must be taught by parents ernors involved is a tremendous idea. of my State. But I do not believe there and families, schools, and religious We hope that every Governor in the has been anything as satisfying as to groups. country, if they are not already in- work with the communities in New A 1996 National School Boards Asso- volved in this, will be willing to join Mexico and school boards and super- ciation report on Character Education June 29, 1999 CONGRESSIONAL RECORD — SENATE S7803 in our schools showed a significant Whereas more than ever, children need THE ECONOMIC AGENDA trend toward adopting character edu- strong and constructive guidance from their Mr. DOMENICI. Mr. President, I cation programs in schools. families and their communities, including schools, youth organizations, religious insti- would like to speak a little about the Character Counts! suggests three President of the United States, his steps to teach young people for making tutions, and civic groups; Whereas the character of a nation is only staff and his renewed focus on the do- the decision to do the right thing: as strong as the character of its individual mestic and economic issues of this 1. Think about the welfare of all people citizens; country. likely to be affected by your actions and Whereas the public good is advanced when Across the land, it has been heralded make choices that avoid harm to and pro- young people are taught the importance of that the President is once again com- mote the well-being of others. good character, and that character counts in ing back to address economic issues 2. Demonstrate character by living up to personal relationships, in school, and in the and wants to become a part of the eco- all ethical principles of the Six Pillars of workplace; Character even when you must give up other nomic agenda. He wants to be involved Whereas scholars and educators agree that with what we are doing here in Con- things you want. people do not automatically develop good 3. If you cannot live up to one ethical prin- character and, therefore, conscientious ef- gress in our work on approving money ciple without giving up another, do the thing forts must be made by institutions and indi- for programs, talking about Medicare, that you sincerely believe will promote a viduals that influence youth to help young Social Security, and other things. I better society and should be done by all. people develop the essential traits and char- will say at the outset that it wasn’t too The National School Boards Associa- acteristics that comprise good character; many months ago that the President of tion report found that schools with Whereas although character development the United States was promoting a character education programs reported is, first and foremost, an obligation of fami- plan that was considerably different improvement in student leadership, lies, the efforts of faith communities, from what he is espousing today. It discipline, violence, vandalism, aca- schools, and youth, civic, and human service wasn’t long ago that you felt satisfied demic performance, attendance and organizations also play a very important role in supporting family efforts by fostering with saving only a portion of the So- drug and alcohol incidents. It also stat- and promoting good character; cial Security surplus and using the rest ed, ‘‘Ultimately, . . . character edu- Whereas the Senate encourages students, for your spending initiatives. Yet, as of cation may be a long-term investment teachers, parents, youth, and community today, the President’s plan has come as improvement and contribution lev- leaders to recognize the valuable role our the Republican way. We both say now els often increase over time.’’ youth play in the present and future of the that we should save 100 percent of the As we work to train our children United States and to recognize that char- money that belongs to the Social Secu- well, we must keep in mind that we are acter is an important part of that future; rity recipients of our country and we building the foundation for new genera- Whereas in July 1992, the Aspen Declara- should not let it be squandered on any- tions. The examples we set about how tion was written by an eminent group of edu- cators, youth leaders, and ethics scholars for thing else. we treat others, and what we accept in the purpose of articulating a coherent frame- This means that we are going to save social behavior will influence not only work for character education appropriate to the $1.8 trillion dollar Social Security our children, but all children. a diverse and pluralistic society; surplus over the next decade. In the In Mississippi, the Noxubee County Whereas the Aspen Declaration states, ‘‘Ef- Congressional plan, the only way that Competitive Community Program, the fective character education is based on core we can touch these funds is if they are Ocean Springs Chamber of Commerce, ethical values which form the foundation of needed to undertake substantive re- Kids With Character, and the Junior democratic society.’’; forms of Social Security to ensure that Auxiliary of Clinton are organizations Whereas the core ethical values identified the program works well for seniors. who have joined the Character Counts! by the Aspen Declaration constitute the 6 Nothing else. core elements of character; Coalition. They make specific commit- In order to guarantee such restraint, Whereas the 6 core elements of character we have developed a lockbox proposal— ments including: are trustworthiness, respect, responsibility, To integrate character education into new fairness, caring, and citizenship; I came up with the basic idea and Sen- and existing programs and to encourage Whereas the 6 core elements of character ator ABRAHAM has taken a lead in pro- young people and their parents to adopt and transcend cultural, religious, and socio- moting it. While the President’s model the Six Pillars. And, to participate in economic differences; lockbox is different from ours, at least CHARACTER COUNTS! Week. Whereas the Aspen Declaration states, we are speaking the same language— I congratulate them on their impor- ‘‘The character and conduct of our youth re- even the President is saying that we tant efforts and hope that this year flect the character and conduct of society; must make sure not to spend any of more groups and communities will be- therefore, every adult has the responsibility the Social Security surplus. That puts come involved in similar programs. to teach and model the core ethical values us on the same path. He is following us. Mr. DOMENICI. Mr. President, I ask and every social institution has the responsi- bility to promote the development of good We thank him for that and are pleased unanimous consent the resolution be character.’’; to have him on board. agreed to, the preamble be agreed to, Whereas the Senate encourages individuals However, now is the chance for him the motion to reconsider be laid upon and organizations, especially those who have to show his commitment to this prin- the table, and any statements relating an interest in the education and training of ciple. Up until now, we have faced op- to this resolution appear in the our youth, to adopt the 6 core elements of position on our lockbox bill, both in RECORD. character as intrinsic to the well-being of in- our budget resolution and on the Sen- The PRESIDING OFFICER. Without dividuals, communities, and society as a ate floor. I would remind you that we objection, it is so ordered. whole; and have not been able to vote on this pro- The resolution (S. Res. 98) was agreed Whereas the Senate encourages commu- posal here yet because the Democratic nities, especially schools and youth organi- to. zations, to integrate the 6 core elements of minority doesn’t want to let us vote on The preamble was agreed to. character into programs serving students our lockbox. We are going to ask them The resolution, with its preamble, and children: Now, therefore, be it another time, very soon, to give us an reads as follows: Resolved, That the Senate— opportunity to vote on it. This lockbox S. RES. 98 (1) proclaims the week beginning October has the name, Abraham-Domenici. It is Whereas young people will be the stewards 17, 1999, and the week beginning October 15, a real lockbox. of our communities, the United States, and 2000, as ‘‘National Character Counts Week’’; We are also joined by the distin- the world in critical times, and the present and guished junior Senator from Missouri and future well-being of our society requires (2) requests that the President issue a as our third cosponsor, Mr. ASHCROFT. an involved, caring citizenry with good char- proclamation calling upon the people of the We wish others would join. We wish acter; United States and interested groups to— Senators from the other side would Whereas concerns about the character (A) embrace the 6 core elements of char- join. Let us make sure that when we training of children have taken on a new acter identified by the Aspen Declaration, sense of urgency as violence by and against which are trustworthiness, respect, responsi- say to the seniors that we are putting youth threatens the physical and psycho- bility, fairness, caring, and citizenship; and their Social Security funds in a logical well-being of people of the United (B) observe the week with appropriate lockbox, that it is real and is the most States; ceremonies and activities. real one we can do. As a matter of fact, S7804 CONGRESSIONAL RECORD — SENATE June 29, 1999 our bill is so tough that the adminis- lated 15 year budget plans. I should say don’t believe this is the right way to do tration has opposed it on the basis that as an aside, we will not use 15 year things. it might put our Government in a budget numbers—we will not go beyond I look forward to a good, healthy de- straitjacket. They fear that it might ten years, regardless of what the Presi- bate. Normally, I would wonder wheth- cause some harm to our Government dent does. Ten-year estimates are long er the President is going to once again and to our country because we tied the enough—we will have almost a trillion- politicize the issue of Medicare so knot on our lockbox so tightly. dollar surplus beyond Social Security much so that it will turn out that we We do not agree. We think we need a during the coming decade. will not do anything, and we will all be tough lockbox to guarantee safety. Now, I have not seen the entire new frightened to death. But I actually be- However, the Administration should plan of the President, but I can tell you lieve that the President and Congress take comfort in the fact that the Office that is has some odd features. In the can work together. However, we do not of Management and Budget—the Presi- first five years, no one in America will endorse the President’s reliance on dent’s experts on budgetary matters— get any tax relief. The Government of trust fund accounting. Instead of forc- has just revised up their surplus projec- America will retain control of all the ing all the surpluses into some trust tions over the next decade in light of enormous projected surpluses. Tax re- fund or another, why don’t we give recent economic strength. As our econ- lief is relegated to the second five them back to the people who paid us? omy grows and new jobs are added, peo- years in the President’s plan. Maybe they could set up their own ple pay more in taxes. This means that That is not fair to the American trust funds. Maybe they could start once again, there is more revenue ex- working man or woman. Now certainly, their own savings plan. Maybe they pected in the year 2000 than we con- we will need to retain some of the pro- could put a little more into the kind of templated 3 months ago. This means jected surpluses to put toward Medi- things they think they need for their that we will now have an on-budget care reform. The President envisions families. surplus in fiscal year 2000 above and be- one type of reform where he spends $51 In a sense, I don’t know about the yond the Social Security surplus—both billion of surplus dollars on a Medicare rest of the Senators on both sides of the President’s budget shop and the prescription drug benefit. We don’t the aisle, but I look forward to these Congressional Budget Office expect know if that is right or not. But we can issues we are going to discuss between forecast this. This is true, even ac- sit at the table and fix Medicare given Members of the Congress and the Presi- counting for the $7 billion we spent re- our wonderful fiscal situation. But let’s dent. On some of them, I look for us to cently in FY2000 on Kosovo. This not kid ourselves. We don’t need a tril- walk right down this aisle in bipartisan money came out of on-budget funds— lion dollars. We should be giving some fashion and get some things done. How- we have not touched the funds that are of this money back to the American ever, we will not walk into an end accumulated by Social Security. people—they are the ones who gen- agreement where no relief is given to The President believes that we have erated all these extra tax payments, American taxpayers. We will not be a $5 billion on-budget surplus remain- they ought to get some of them back. able to agree with the President of the ing next year. I can’t tell you what the In that regard, it appears we are on a United States if he is leading all the Congressional Budget Office is going to collision course with the President. We Democrats—which I somehow doubt— say with certainty, but I can tell you it will let the American people be the saying, no matter how big the surplus is more than that. I can tell you it is judge of who is correct. I don’t think is, let’s just wait around and see if between $10 and $15 billion. That means that these hardworking men and Government doesn’t need it. I submit we can lock up Social Security’s women will stand by as their taxes that, if you do that, Government will money in the Trust Fund and still have climb higher and higher—I think they need it. Government will use it. And a $10 or $15 billion buffer to absorb any will support our call for tax relief. the taxpayers who collectively paid unanticipated expenses. This should It is unfair to assume that the Gov- more into Government than we need allay the Administration’s concerns ernment, having collected more than will see bigger Government, more about our lockbox. we need, ought to start saying: Well, money spent and less money in their Having said that, let me talk for a let’s find out how we can spend all of it own pockets, which is where more of it moment about a profound change in Government. How does that make ought to be. which has occurred in our country in sense? Should we wait for Washington I think my time has expired. I yield recent years. Something very dynamic to figure out which new program it the floor. is happening to the US economy. Some needs? Should we do what the Presi- I suggest the absence of a quorum. say we’re having a new industrial revo- dent is doing? He wants to put $340 bil- The PRESIDING OFFICER. The lution of sorts in the high tech arena lion of IOUs into the Medicare trust clerk will call the roll. that is fundamentally changing the fund, and then say, in 30 years when The assistant legislative clerk pro- way we do business. It has fueled tre- the IOUs come due, we will just raise ceeded to call the roll. mendous growth in all sectors. Now, no income taxes to pay for it. Putting Mr. DOMENICI. Mr. President, I ask one knows for certain why this recov- that money into the trust fund for unanimous consent that the order for ery is so long-lived. However, even Medicare does not enhance one pay- the quorum call be rescinded. though I am usually pretty cautious as ment, does not increase its solvency for The PRESIDING OFFICER. Without budget chairman of the Senate, it does one week. And here we sit failing to objection, it is so ordered. appear that this growth will propel us say exactly what it is. The President’s f toward higher and higher surpluses proposal will lead to income tax in- going forward. It is realistic to assume creases down the road to cover these EXTENSION OF MORNING that American taxpayers will be pay- IOUs. BUSINESS ing far more in taxes than we need to I should say a number of Democrats Mr. DOMENICI. Mr. President, on be- run the Government for many years to and almost every Republican have been half of the majority leader, I ask unan- come. critical of this presidential proposal. It imous consent that we remain in morn- That means, year over year, your is similar to writing a postdated check. ing business until 5 o’clock and that Government spends less than it takes Guess who is signing the check? The the time be equally divided. in. It is great to run persistent sur- American people, because they back up The PRESIDING OFFICER. Without pluses. However, we will surely lose the the U.S. Government who signed that objection, it is so ordered. faith of the American people if we end check. It is postdated 30 years. When it Mr. DOMENICI. I thank the Chair. up spending those surpluses. We must comes due, there isn’t any money to The PRESIDING OFFICER. The Pre- save Social Security’s money now and pay it. So then you go out and tax the siding Officer, in his capacity as a Sen- in the future. However, we should American people to pay it. But, in the ator from the State of Washington, think carefully about what we do with meantime, you can for some reason run suggests the absence of a quorum. The the extra surplus—the surplus above around and say there is a lot of money clerk will call the roll. Social Security’s funds. The President in the trust fund, ignoring the long-run The assistant legislative clerk pro- is thinking about this and has formu- consequences of this plan. Frankly, I ceeded to call the roll. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7805 Mr. SCHUMER. Mr. President, I ask I quote the Washington Times of June the Senate gun show provision, by the unanimous consent that the order for 23: first day of school, the Tuesday after the quorum call be rescinded. Some [GOP leaders] said even a Senate- Labor Day. That is 2 months to pass a The PRESIDING OFFICER. Without House conference to iron out differences with bill that we already passed. If we do objection, it is so ordered. Democrats over gun-control provisions in a not, and there is, God forbid, another Mr. SCHUMER. Mr. President, I ask juvenile justice bill is now in doubt. school shooting, we will sorely regret unanimous consent I be given 5 min- I am told today that Mr. ARMEY said our inaction. utes to address the Senate. at the very earliest, conferees would I yield the remainder of my time. The PRESIDING OFFICER. Without not be appointed until after the July 4 Mr. President, I suggest the absence objection, it is so ordered. recess. of a quorum. f First and foremost, conferees ought The PRESIDING OFFICER. The to be appointed. We should not simply clerk will call the roll. GUN SHOW LOOPHOLE stop the process because some people, The assistant legislative clerk pro- Mr. SCHUMER. Mr. President, 2 certainly a minority of the Members of ceeded to call the roll. months ago, right after the tragedy of Congress, and certainly a minority in Mr. REED. Mr. President, I ask unan- Columbine High School, I warned that terms of the views of the American imous consent that the order for the whenever a tragedy occurs in our people, do not want it to happen. The quorum call be rescinded. schools, if we don’t act quickly and res- Senate debated the issue. We should The PRESIDING OFFICER. Without olutely, the tragedy would recede in have the ability to go to conference. I objection, it is so ordered. memory and we would fail to pass laws call on the House leadership to appoint Mr. REED. I thank the Chair. necessary to make our schools safe, conferees quickly and with alacrity so f thereby creating new ways for future we might debate the provisions here, tragedies to occur. not only the gun show loophole but PATIENTS’ BILL OF RIGHTS To the relief of the entire Nation, the many of the provisions that people on Mr. REED. Mr. President, I will Senate passed the juvenile justice bill both sides of the aisle support that speak for a few moments about a topic that, thankfully, although belatedly, would make it easier to punish violent that has consumed many of us for closed the gun show loophole. juveniles as adults and that would pro- many days this week and preceding The House, however, failed in its vide some of the prevention services weeks, and that is the Patients’ Bill of duty to the American people. The that young people need. Because juve- Rights. House was unable to shake loose from nile justice and closing the gun show A particular concern to me has been the NRA. They were unable to pass a loophole is a priority to many Ameri- the status of children in the various juvenile justice bill with any gun con- cans; to a large majority of Americans, versions of the Patients’ Bill of Rights. trol legislation and unable to even in my opinion. I argue very strenuously and very em- close the gun show loophole. Two weeks ago, for instance, a month phatically that the Democratic pro- I rise today to remind the Senate of after we passed the juvenile justice posal recognizes the key differences be- the urgency that led us to act firmly bill, we passed the Y2K liability bill. tween children and adults when it and resolutely after Columbine, and to Lo and behold, Senate conferees were comes to health care, and there is a use the various parliamentary proce- immediately appointed, and I under- significant difference. For a few mo- dures that allow Members to bring the stand we are now close to an agree- ments, I will try to sketch out some of juvenile justice bill and the gun show ment. In fact, I believe an agreement is these differences. loophole bill to conference where we due this afternoon. I think that is First of all, if one looks at the adult can do what is right. great. But Y2K is a far more com- population in terms of types of ill- I spent part of this weekend, Sunday plicated bill than juvenile justice. It is nesses, they are characterized as and Monday, in New York’s capital re- treading on fresh new ground. chronic diseases with relatively simple gion, talking with constituents from The millennium, by definition, oc- symptoms, simple manifestations with Albany and the surrounding towns. curs every thousand years but we fin- known consequences. They are quan- Some of the areas were fairly rural. ished this one right up. The juvenile tifiable over a short period of time. Without prompting, people walked up justice bill, however, is in stasis. There Prostate cancer, breast cancer, heart to me and said: Senator, what the heck are things that can be done to get it attack are familiar diseases to all of are they doing in Washington? How moving. The most obvious is for the us. come you can’t even close something House leadership once again to appoint The other aspect of adults is that as simple as the gun show loophole? conferees so we can debate the gun there is a large volume of adults who They were incredulous. These people show loophole. The real problem I fear have these types of diseases. As a re- aren’t passionate advocates of gun con- is that those in the Republican House sult, there is more than a sufficient trols. They were outraged. They could leadership do not want to continue to supply not only of physicians but of not believe that a lobbying group, even debate this issue. They know their al- specialists, those who are particularly such a powerful lobbying group as the lies in the NRA and the American peo- skilled and particularly knowledgeable NRA, could stop the Congress from ple, including most gun owners, are di- about the most efficacious treatments passing a basic gun show measure. vided because most Americans, includ- one can use for these types of condi- I am proud of what the Senate ac- ing most gun owners, sincerely believe tions. complished last month. We debated ju- providing a background check at a gun In contrast, children present another venile justice for over a week. Passions show does not infringe their rights just type of population to the health profes- frequently ran high. We cast five sepa- as we now provide that a background sionals. The good news is that most rate votes on various proposals pur- check must be done when you buy a children are healthy. But if a child is porting to close the gun show loophole. gun at a gun shop. But they do not sick, that child usually does not have In the end, we approved the real thing. want to do that. one of these chronic diseases that is The juvenile justice bill itself passed So there are other things we should well-researched and well-treated and by a margin of 73–25, with majorities of consider to get things moving. Perhaps staffed by numerous specialists, but both parties voting in favor. we can add these provisions to a bill something more complicated. In fact, Is it a perfect bill? No. Is it a good that has to be conferenced. Perhaps we as the professionals say, these diseases bill that will make a real difference? can add this to other types of proposals are usually complex and with multiple Absolutely. which the other body sees a need to co-morbidities. For the layperson, that Now the question is whether we are have go forward. But I am issuing this means different problems interrelated going to throw up our hands and say challenge, particularly to the House causing a much more complicated case the House couldn’t stand up to the gun leadership but to all of my colleagues: for the physician. lobby, so let’s give up. We should pledge to send a juvenile There is another aspect of this di- We are in a strange lull, a lull in justice bill, one way or another, to the chotomy between adult health and which newspaper stories inform us, and President’s desk, a bill which includes children’s health. There are so many S7806 CONGRESSIONAL RECORD — SENATE June 29, 1999 healthy children —the good news. The cases, what they consider to be the complicated pediatric health care cases bad news is in terms of managing this center of excellence is a center that do not conform to those types of econo- population, there is a very small vol- provides the best adult medicine be- mies of scale. ume of very sick children. This makes cause after all, they are marketing I mentioned before there are other it very difficult for physicians to main- their products to adults, not to chil- particular issues about the health sta- tain their clinical competency, par- dren. They are marketing their prod- tus of children that make them dis- ticularly for general practitioners. ucts to human resource managers who tinct from adults, and one of them is They will see many adults who have have to buy for a company, or they are the fact that children are still devel- similar symptoms and they know very marketing directly to people who make oping. They are constantly changing well how to treat them. By contrast, decisions about health care who are by their functional levels —mobility, tod- they very rarely see chronically ill definition adults. When they are out dlers start walking, and then they children, so treating them effectively looking for centers of excellence, they start running, speech, puberty—all becomes especially difficult for a gen- are looking for those hospitals that issues which are seldom associated eral practitioner. have the best urology departments, with adult health. Another difficulty is the sense these have the best records with prostate As a result, unless you consider de- general practitioners or even adult spe- cancer and breast cancer and heart at- velopment as a first order of priority, cialists can treat this population of pa- tack. That is another built-in aspect of you are going to overlook a lot of the tients. There is a further complicating the HMO dilemma which complicates emphasis that should be placed on chil- factor, that is, to manage cases you the care to children. dren’s health care. I suggest that most need volume, you need data, you need There is something else. There is an HMOs do not factor in the sensitivities to understand what the best treat- economic incentive for these HMOs to to development that are so necessary. ments are, and you can only do that in refer children to adult specialists and Also, when you get into a situation a rational way by studying lots and not to pediatric specialists. There is a like this, when the development of a lots of cases and, frankly, because of great difference between a cardiologist child is at stake, the challenge is early the nature of children’s health, they do and a pediatric cardiologist because of intervention. It is not simply catching not have the same type of volume in the differences in caring for a child the disease someplace along its course children’s diseases as they do in adult versus caring for an adult. The incen- and providing some type of treatment. illnesses. tives are sometimes very compelling. It is early intervention. One other complicating factor is that For example, if you have a staff There are numerous examples. One many times children’s true health con- model HMO—that is where the doctor that I recently read about is a condi- ditions manifest themselves long after actually works for the HMO—you have tion in infants called strabismus, they have actually contracted the con- a cardiologist simply because that is which is muscle weakness of the eye. If dition. It is not the short duration, it is expected, and if you look at the num- it is not corrected soon after birth not the heart attack that one can rush bers, you are likely to have a lot of when the neurological connections be- the person into the emergency room, adult cardiology patients and very few tween the eye and the cortex of the do the surgery, apply the drugs, and children. To add a pediatric cardiolo- brain are being formed—again, this is get that adult on the road to recovery. gist increases the fixed costs. Why do not a situation that an adult would It is much different when it comes to a that when you can simply make a re- ever encounter—if you do not catch it child. ferral to the adult cardiologist that is early, you are going to have significant Managed care organizations and the already in the plan’s network? and irreversible loss of sight. way they deliver care can compound When you look at the nonstaff model, That is a special concern for kids, a these inherent differences between the one where they will contract with indi- very serious developmental concern for adult population and the children’s vidual physicians, typically what they children diagnosed with the disease. population. will do is look at volume discounts. A That is why we need to make sure that First, let me give credit where credit physician will say: Sure, I will sign up development is built into HMOs consid- is due. When a managed care plan does for so much per visit, but you have to eration of the type of treatment and it right, they do preventive care very assure me that I will get a lot of visits. services they provide children. The ec- well. They can anticipate, through the That is another incentive to drive chil- onomics of HMOs means they will not management of the child’s case, immu- dren not to pediatric specialists but to do it themselves. Therefore, we must nizations and well-baby visits, et adult specialists. make it our job. I think that is what is cetera. But there are certain inherent As a result, these incentives tend to part and parcel of a good part of the characteristics of the managed care diminish the quality of health care Democratic initiative. system of health care delivery that that HMOs give to children, particu- Let me suggest something else on the makes it—appropriate for adults but larly very sick children. It is not be- issue of development. My colleague less appropriate for children. That is cause they have some type of grudge from California, Senator FEINSTEIN, why we have to focus a part of our ef- against kids. It is simply, if you look and so many others, have talked about forts on making sure that children are at the market dynamics, if you look at medical necessity. This whole defini- truly recognized in the legislation we the volume they are trying to manage, tion of medical necessity tends really are discussing. it all argues against the type of care to prejudice kids from getting a fair First of all, because there are a rel- that sick children must be assured. In shake in HMOs, for many reasons. atively small number of very sick chil- other words, there is a failure in the First of all, most medical necessity dren, there is not the adequate number market to recognize the needs of chil- determinations are documented by of patients for the HMO to maintain a dren. data. How efficacious is the treatment? number of pediatric specialists in their That is why we have to step in. That How often do we use it? And it goes provider network. The other fact is is why we have to require HMOs to right back to one of the inherent that HMOs tend to fragment the mar- make sure that there is access to pedi- issues: The very lack of the volume of ket. They go after parts of the market atric specialists, to make sure HMOs seriously ill children to generate the and leave other parts out, but they do are tracking the health progress of kind of data, treatments and outcomes. not tend to accumulate large groups of children, to make sure they are meas- There is nothing in the law that I can children so that a pediatric specialist uring their outcomes in terms of chil- see today at the Federal level that in a particular area can be fully em- dren and not just adults. If we do not, even requires HMOs to start thinking ployed. the system will always be driven to the about outcomes, to start thinking Another aspect of the managed care needs of the adults who managed care about effectiveness in terms of kids. delivery system is that they typically plans are trying to recruit as patients. The other thing that we should be look for an affiliation with what they Another way to say this very simply is concerned about is that a lot of med- call centers of excellence, hospitals that HMOs operate on economies of ical necessity is cost based—using the that are well-known for their practice scale. That is how they make the cheapest option. Once again, when you in a certain field of medicine. In most money. And children with particularly have a very small volume of very sick June 29, 1999 CONGRESSIONAL RECORD — SENATE S7807 kids, the appropriate form of treat- have the data. It is just something that Democratic alternative, we are not ment may be extremely costly. they do not think about a lot. going to give the special needs of chil- Another factor concerning medical I see my colleague from Oregon is dren the attention it needs and de- necessity is that usually it is tied to here. Let me make one other point, if serves. When we start collecting the the notion that a health plan will not I could. data, when we start having the HMOs pay for innovative treatment. It will Mr. WYDEN. I just want to, at a con- publish what they do for kids—what is not pay for experimental treatment. venient time, ask my good friend from their success rate with kids? How Once again, many of the treatment Rhode Island to yield for a question or many kids with complicated conditions modalities used for children, simply be- two because I think the Senator has do they have enrolled in their pro- cause they are not routine, can be made an excellent presentation on the gram? When we start doing that, they called innovative or experimental. need to advocate for kids. All the lat- are going to have an incentive to start That is another example of how chil- est research with respect to these chil- talking to the schools and the local au- dren are prejudiced by the system. It is dren is really dropped-dead material. thorities about their patients because something that we have to correct. Unless you get there early, as the Sen- now they have a real visible, account- Finally, very seldom will you find in ator from Rhode Island is suggesting, able incentive to do it. the definition of medical necessity this you end up, with a lot of these poor Just one final point: Again, Bruce concept of developmental impacts, be- kids, playing catchup ball for the next Clarke, Gen. Bruce Clarke, one of the yond simply returning to normal func- 10 years. great combat leaders of World War II, tion. As a result, it is easy for HMOs to So when it is convenient, I would like said—and I remember this from my say a treatment or procedure is not to engage the distinguished Senator days at West Point—‘‘A unit does well medically necessary when children from Rhode Island in a few questions what its commander checks. If the present themselves or their parents about some of the other areas where he commander doesn’t check, you are not present them for care. It is not threat- has contributed on this bill that, going to find that unit paying atten- ening their lives today, or even their frankly, I think ought to help bring the tion.’’ ability to function today. However, parties together and help us fashion a We have not been checking on kids in they probably know that months from bipartisan proposal. HMOs in this country. I do not think now, a year from now, 2 years from I just want the Senator from Rhode they are doing particularly well as a now, their development will be se- Island to know how much I appreciate result. When we start checking on kids verely impaired. But that is not part of him standing up for those kids who do specifically, as the Democratic alter- medical necessity. So that is another not have political action committees native does, then we will start doing example of why we have to step up to and do not have clout and cannot speak much better, I think we will start the plate, particularly when it comes for themselves. At an opportune time doing well. I yield to the Senator from Oregon. to children. in the Senator’s address, I would like Mr. WYDEN. I thank my colleague We have learned so much about the to be able to ask the Senator to yield for yielding. He has made an excellent development of young children, par- just to address a few other questions presentation with respect to the need ticularly from ages 0 to 3, including the about some of the areas on which he for strong advocates for these kids. way the brain develops. has focused. I will turn briefly to another area Once again, this is an issue that has Mr. REED. I thank the Senator from where the Senator from Rhode Island very little correlation with adult expe- Oregon. has, in my view, done yeoman work, rience. Children are developing. I want to make one final point about and an area, frankly, that I think has Just a few examples. children, and then I would very much sort of gotten lost a little bit in this At the Baylor College of Medicine like to yield to the Senator. And I com- discussion. That is the proposal the there was a survey of abused and ne- pliment him, too, on his efforts because Senator from Rhode Island has made glected children. They focused on 20 we are working together on many of with respect to having ombudsmen or children who they described, in tech- these issues, including children’s advocates for consumers around the nical jargon, as living in ‘‘globally health. country. It ought to be one of the areas understimulating environments.’’ In One final point: Children’s health is, that both political parties could gravi- other words, these children were rarely I would argue, more dependent on envi- tate to, because I believe that what the touched; they had no real opportunity ronmental conditions than adults. Of Senator from Rhode Island has done— to play; they had no opportunity to ex- course, there are certain situations in of course, we have gotten great input plore and experiment. They found that the workplace where adults are exposed from Families USA and Ron Pollack the brains of these young children were to chemicals, and we try to deal with and some of the folks who have done so 20 to 30 percent smaller than those of that in terms of regulations and stand- much for consumers over the years—is children who had the opportunity to be ards. However, it is also important to essentially talk about a true revolu- stimulated. Indeed, literally parts of recognize that children are particu- tion in the area of consumer protec- their brains had wasted away. Again, larly prone to environmental and so- tion. this is an issue that would never con- ciological conditions. What happened—I have seen this so front a practitioner looking at an For instance, lead poisoning—it is an often since my days as director of the adult. epidemic in so many cities. In my city Gray Panthers; I was head of the Gray Another example relating to develop- of Providence it is an epidemic. But it Panthers at home for about 7 years be- ment is in the area of childhood trau- is not just Rhode Island, it is across fore I was elected to the House—what ma. We have been able to show, the country. we saw was that the consumer would through scientific examination, that For too long, we used lead paint in have a problem and, without any advo- children who have witnessed violence houses, and now we do not have enough cates or the ability to get it handled have physically continued to register HUD money to clean up homes that early on, a problem that started off rel- that violence, they remain in a high- have lead-based paints. That is why so atively modest and minor would just alert state, and this leads to emo- many children have lead paint poi- fester and get worse and eventually tional, behavioral and learning prob- soning. blossom into a huge controversy which lems. We have to recognize, for kids, is ended up in litigation. Again, these are conditions that you they these are important health prob- As the distinguished Senator from would never find in an adult, with some lems. We have to be developing mecha- Rhode Island knows, one of the most exceptions of course. But they are part nisms so managed care organizations controversial aspects of this whole de- and parcel of the developmental proc- recognize these issues as health prob- bate about managed care is litigation. ess of children. If we do not understand lems and that the Government recog- It seems to me that if the Senate were that, we do not recognize it. If we do nizes them as health problems, and to adopt the proposal of the Senator not provide particular protections for that they work together with linkages. from Rhode Island or some version of children, it will not be done by the My final point is, unless we pass the it, this would shift the focus of con- HMOs. It costs too much. They do not kind of language that we have in the sumer protection away from litigation, S7808 CONGRESSIONAL RECORD — SENATE June 29, 1999 away from problems after they have This would be a source, a clearing- gag clauses where people, of course, unnecessarily developed into some- house, if you will, for that type of in- ought to be entitled to all of the infor- thing serious. Instead, we would re- formation. mation about their options, the om- solve a lot of the problems early on and Then the ombudsman or the con- budsman concept is much the same we wouldn’t need this focus on litiga- sumer assistance center would operate kind of approach to good government. tion. a 1–800 telephone hotline to respond to The Senator from Rhode Island has Certainly, we ought to have legal consumer questions and requests for written this now so as to ensure it can- remedies for the really outrageous ex- information—again, such a necessary not result in litigation, that this spe- amples of consumer rip-offs and the ingredient, for several reasons: First, cifically is designed to help consumers like. But I think what the Senator the general befuddlement one experi- at the front end and bars litigation. I from Rhode Island has done, and it is ences when you try to read a health don’t think the majority of the Senate such a valuable service in this debate plan contract. Two, I sense there is is aware of that. The Senator from and a real revolution in consumer pro- deep skepticism about the kind of re- Rhode Island has indicated to this Sen- tection, is said: Let’s get at it early on sponse you expect to receive from your ator and the Senator from Maine, Ms. when the consumer and the families own insurance company about your COLLINS, who has been very interested can find somewhere to turn. We will rights and your benefits, if you get a in this issue over the years, who has prevent problems then. It can be done response at all. Too many times I have done good work, that he wants to make relatively inexpensively. heard constituents say they have just sure we don’t duplicate existing serv- I would like the Senator from Rhode found themselves entangled in a voice ices. Island to elaborate a little bit on this mail hell, if you will. As you push one I am happy to yield to the Senator. and make sure that over the next few number and find one recording, you Mr. REED. Reclaiming my time, it is minutes the Senator from Rhode Island push another number and find another quite specific in the legislation. Again, can lay out his proposal, on which I am recording. The ombudsman program the Senator is one of the contributors honored to join with him. I think this with the 1–800 number would serve as a to this legislation, along with Senator has the potential of, frankly, being one place where you could get information WELLSTONE, and I thank him. of the areas where the parties, once and get it quickly. The ombudsman, or the consumer as- they focus on it, can say: This is good Then this objective ombudsman, or sistance center, could not participate public policy that will reduce the need woman, as the case may be, would pro- in litigation. Their scope of participa- for litigation and, as Ron Pollack and vide assistance to people who think tion is informal and could include con- Families USA have said so eloquently, they have a grievance. They would tacting the insurance company, ex- help a lot of consumers when they need have an opportunity for a patient to go plaining rights, advocating for the pa- it most. Perhaps the distinguished Sen- in and say: My plan said I could not tient as an ombudsman, not as a law- ator from Rhode Island could take us have this procedure for my child. My yer, not as a litigator. through it. doctor says my child needs it. Can you Let me add one other point and then, Mr. REED. I thank the Senator from help me? Frankly, not only will the again, yield to my colleague from Or- Oregon for his very kind words. Let me ombudsman help the individual con- egon. Interestingly enough, again I also thank him for his help and support sumer, but they will look at the plan, think he has identified an issue that we in working so closely with me and and they will conclude that under the all can rally around. One of the great Families USA and others to ensure terms and conditions of the contract, talents the Senator from Oregon brings that this proposal will work for all con- that is or is not covered. to the Senate is an ability to be a sumers and for the insurance industry It won’t be the insurance company bridge in so many different ways, i.e., as well. protecting their own interest, it will be the Education Flexibility Act—to find Part of our attempt is to find an- an objective agency that will be able to a mechanism that we all can agree swers before, as the Senator from Or- step in and advocate for consumer upon. egon has said, they wind up in court. rights when they need to vindicate My experience—I think your experi- their rights and explain to them the This is another one of these areas. In- ence, too—is that people want their limitations of the policy, when that is terestingly enough, a few weeks ago we health care to be addressed. They don’t the case. passed with little controversy and with want a lawsuit. They want to get their That is the general outline. much enthusiasm the defense author- children cared for. They want their I yield the floor. ization bill that included an authoriza- own health care. This is not an at- Mr. WYDEN. I appreciate the distin- tion for an ombudsman program to ad- tempt to figure out some way to get in- guished Senator yielding. I have felt dress the problems and complaints as- volved in a messy multiyear litigation that he has really gone to great sociated with military HMOs—the process. Yet if there are no mecha- lengths to try to ensure that this could TRACER system—looking at the same nisms, such as an ombudsman and an be supported by every Member of the problem that all of the Senator’s con- internal/external review process, if we Senate. stituents from Oregon face, and all of don’t have these mechanisms, that is Frankly, I feel about his proposal my constituents face, but in the con- where we inevitably will find ourselves. much like I do about the gag clause text of military families and com- Let me quickly accept the Senator’s discussion. I think he and I have talked plaints, and legitimate complaints of invitation to lay out some of the de- about this. I am probably a lot of military families. They cannot get the tails. things, but one of the last things I care they need. They cannot get the First, it would be a State-based pro- guess I would qualify as is an HMO answers. They get the runaround. They gram, not a national program in the basher. We have a lot of good managed do not get the support. sense of some collective wisdom here in care in my part of the United States. In response to that, this body voted Washington, but each State could de- My hometown of Portland has the enthusiastically to authorize an om- sign their own ombudsman program. highest concentration of folks in HMOs budsman for the TRACER system. We would provide financial support. in the United States. About 60 percent Frankly, both the Senator from Oregon There would be some general guide- of the older people are part of a man- and I are saying if it works well, or we lines for the states to follow. Basically, aged care program. think it is going to work well for our this ombudsman operation or consumer The distinguished Presiding Officer, military families who are enrolled in assistance operation would inform peo- Senator SMITH, and I have worked to- an HMO that has a great deal of re- ple about their plan options that are gether on a lot of these issues. Frank- sponsibility for them, why not give it a available and to answer other ques- ly, one of our big concerns is, we do chance in the context of the private in- tions about a person’s health plan. offer a lot of good managed care. We surance HMO industry in the United Frankly, one of the great dilemmas end up getting the short end of the States? most of our constituents have is, they stick in terms of reimbursement. I I think that underscores what the don’t know whom to ask about health think what the Senator is talking Senator from Oregon has said. This is plans, what health plans are available. about with an ombudsman, much like not controversial. This is helpful. This June 29, 1999 CONGRESSIONAL RECORD — SENATE S7809 is practical. This is not about litiga- Senator COLLINS has been very inter- system: We are going to do everything tion, it is about making sure that peo- ested in this issue. She has done good we possibly can to limit frivolous law- ple get answers, that people get re- work in her home State of Maine. Per- suits; we are going to help people when sults, and that people get the care. haps the Senator from Rhode Island they need it most, when the problem That is what I think we are all here to could just wrap up by telling us where first develops. do. his proposal stands. I want to assure I want to assure the Senator from Again, I will yield. him and Senator KENNEDY, who has Rhode Island and the distinguished Mr. WYDEN. I appreciate the chance been leading this fight—and I am anx- Senator from Massachusetts that I am to continue this for a moment because ious to work with him. In fact, when I anxious to work with them on this pro- the Senator from Rhode Island is es- first came to the Senate, just a few posal, because I think this is one of the sentially being logical. Heaven forbid weeks after arriving I had a chance to areas where the parties ought to be that actually takes over some of the work with the distinguished Senator able to come together. It may sound debate we have. There is nothing par- from Massachusetts on the effort to quaint, but the ombudsman notion is tisan about making sure that con- bar gag clauses. I only wish we had got- simply good government. It is preven- sumers have all the facts about their ten that in place back then several tive kind of medicine. health care. That is the effort with re- years ago. It is long overdue that we I thank the Senator for the chance to spect to barring gag clauses. And there get that protection for consumers as work with him on it. I will not ask him is nothing partisan about this ombuds- well as the Reed proposal. to yield further. But I am very hopeful man approach. Perhaps the Senator from Rhode Is- that in the days ahead both political I am very hopeful, frankly, that as land could tell us where the ombuds- parties can see the merit in this idea the Senate learns more about this kind man proposal stands at this time. and have it included. of concept pioneered by the Senator Mr. REED. Very quickly, we have Mr. REED. Before yielding the floor, from Rhode Island, Families USA, and been working, as the Senator knows, let me just say that I, along with my others, that we will see some of the closely on the Reed-Wyden-Wellstone colleague from Oregon, must recognize good health care plans in this country proposal, which was formally intro- Families USA and Ron Pollack for the saying we are going to support this be- duced as separate legislation. It is in- inspiration and thoughtful analysis cause it makes sense to solve problems corporated in the Democrat Patients’ that helped propel this proposal. It is a early on. Bill of Rights. I know Senator COLLINS good one. Frankly, if we can win support for of Maine is very interested in this Frankly, we could do very well in the REED proposal early on—I am hon- issue. I think she is also convinced that this Senate this year if we could pro- ored to join in on it—I think this will this is important and significant. tect children through better managed go a long way to eventually resolving Let me also say that the Senator care legislation and give all of our citi- the controversy about litigation be- from Oregon made reference to his ex- zens a real voice in our health care de- cause I think we will see good advocacy perience as a senior advocate. There cisions through an ombudsman pro- programs early on, and we can confine are, in fact, senior ombudsman pro- gram. This will be a very satisfactory then the need for litigation to really grams throughout the United States and very successful endeavor for all of only the outrageous, outlandish cases which we support with the Older Amer- us in the Senate. where I think every Member of the icans Act. These programs have been With that, I yield the floor. Senate would say, goodness, this is an very effective and are doing precisely The PRESIDING OFFICER (Mr. area where you really ought to have a what we want to do in the context of SMITH of Oregon). The Senator from legal remedy. But we would have managed care. New Hampshire. skewed the whole system toward pre- Again, we just adopted an ombuds- Mr. GREGG. Mr. President, are we in vention and early intervention, or an- man program for military personnel in morning business? swering the questions that the Senator the TRICARE system. It was non- The PRESIDING OFFICER. The time from Rhode Island has properly identi- controversial. In fact, we have a great for morning business was concluded at fied. deal of expectation and hope that this 5 p.m. I will tell you that in my hometown, will be helpful to our military families. Mr. GREGG. Mr. President, I ask where we do have a lot of good man- We are working together across the unanimous consent that I be allowed to aged care, folks want to see this kind aisle. I hope that we can also incor- speak for 10 minutes as if in morning of proposal. They want to see what is porate this provision in whatever Pa- business. laid out in the legislation that our col- tients’ Bill of Rights legislation that The PRESIDING OFFICER. Without leagues on this side of the aisle are of- emerges. It is not designed to be a tool objection, it is so ordered. fering, and they want to see us reach a of litigation; it is designed to be a tool f bipartisan agreement. of conciliation. The Presiding Officer of the Senate On those grounds, I am optimistic MEDICARE and I have had the most competitive and hopeful. Mr. GREGG. Mr. President, I want to elections in the history of the West. We But, once again, let me finally con- comment on the President’s proposal have teamed up together on a whole clude by thanking the Senator from relating to Medicare, and specifically host of issues in the Senate. Oregon not only for our colloquy this relevant to the drug benefit which has It would seem to me that around the afternoon but also for his support, not been put forward by the President ombudsman program and around bar- only on this issue but so many others. today and by his staff. ring gag clauses, this is another area Mr. WYDEN. I will be very brief as I think the American people have to where essentially partisan politics well. look at this in the context of the his- ought to stop outside the Chamber. We I think the distinguished Senator tory of this administration’s efforts in ought to work together to enact a good from Rhode Island, particularly with the area of health care. We know that ombudsman program to say that this is Families USA, is on to something that when this administration came into of- the best anecdote to frivolous litiga- really constitutes a revolution in con- fice, Mrs. Clinton was assigned the tion, frankly, that we could possibly sumer protection. What we have seen task of developing a health care pro- find. on one issue after another—just a few posal. She came up with what has be- I thank the Senator from Rhode Is- minutes ago the distinguished Senator come known as ‘‘Hillary Care,’’ which land, with whom I have enjoyed work- from Arizona, Mr. MCCAIN, and Senator was essentially a nationalization of the ing for well over a decade on senior and DODD of Connecticut, and I were able to health care system. It was intricate bu- consumer issues, and for the chance to get an agreement on the Y2K issue reaucracy that basically was so inter- work with him on it. with respect to trying to hold down woven and so complex that it was to- Perhaps by way of wrapping up my frivolous lawsuits surrounding Y2K. tally impossible to recognize. question to the Senator from Rhode Is- What the Senator from Rhode Island It needs to be noted in evaluating the land, could he fill us in on progress and Families USA have been able to do drug component on this recent pro- with other colleagues? I know that is essentially say in the health care posal on Medicare, the proposal of the S7810 CONGRESSIONAL RECORD — SENATE June 29, 1999 Clinton administration on general this proposal has first-dollar coverage. could say those people are doing really health care issues as it came forward The first-dollar coverage stops when it well. under Mrs. Clinton’s plan, known as gets to $2,000, I believe, of drug expend- For example, say, Bill Gates’ parents, ‘‘Hillary Care,’’ was a dramatic inva- itures, which means that if a senior who probably have a fair amount of sion of the health care delivery system citizen has a large number of drug ex- stock in Microsoft, may be retired. I do in this country by the Federal Govern- penditures, essentially the senior cit- not know if his parents are retired or ment. It was essentially a nationaliza- izen is still going to be wiped out by not. I am using that as an example. tion of the system with huge complex- those costs. Someone who is extremely wealthy ities and huge intricacies. That was It makes much more sense to ap- who is retired, one would not expect followed by a number of other initia- proach it the way the Breaux commis- their drug benefits to suddenly be sub- tives which were lesser but equally ag- sion approaches it and the way most sidized by somebody who is working in gressive in their attempts to move to people have looked at the issue, which a restaurant, a gas station, or on a the Federal level control over func- is, you say to a senior citizen or any- computer assembly line in Nashua, NH. tions of health care in this country. one else: Listen, you have to be respon- Yet what the President has put for- Then on the issue of Medicare, a com- sible for the cost up to a certain level, ward is a plan that does just that. He mission was set up. The commission and when you get to that level which put forward a plan where working was to be balanced. In fact, the Presi- would threaten your economic sol- Americans, Americans who are just dent had a large number of appoint- vency, at that point the Federal Gov- trying to make ends meet, where both ments to it, and the Senate and House ernment will come in and assist you in parents are having to work in order to had a large number of appointments to paying the drug costs, which would be take care of household expenditures, it. It was chaired by a Democratic catastrophic coverage and makes much who are under tremendous financial Member of the Senate, Senator more sense than the proposal which pressure, are going to have to subsidize BREAUX. has first-dollar coverage, if you are the drug benefit of all senior citizens, That commission was to resolve this putting forward a plan which has as its no matter what their income level. matter. It was to come forward with a purpose the actual correction of the A high-income senior citizen, some- proposal to address the long-term sol- present problems occurring in the body who happens to be a member of a vency of Medicare and, within that, the health care community relative to famous family that has made millions drug benefit for senior citizens. The drug costs. of dollars, or somebody who is not even commission did great work, yeoman’s The proposal the President puts for- a member of a famous family but hap- work. They came up with a proposal. ward makes no sense substantively on pens to have a tremendous amount of More than a majority, a significant the issue of paying for drug costs, be- wealth—Charlton Heston, for example, majority, of the commission supported cause it does not benefit anybody if I suspect he has been successful—that the proposal which had in it a drug they have a catastrophic amount of person’s drug benefit under Medicare component, and the President walked drug costs. It may make sense, how- will suddenly become a subsidized away from the proposal, even though ever, politically because it says to a event paid for by a working American. the proposal had been supported by a senior citizen, we are going to cover Does that make sense? No; that is up- majority of the commission which he you for first-dollar coverage of your side down. Obviously, if you are going was instrumental in setting up and to drug costs, which means you can say to to have a drug benefit for senior citi- which he appointed the chairman, who all seniors, you no longer have a drug zens, it should really apply to those was Senator BREAUX from this body. cost for up to $2,000, which means a lot seniors who need the benefit and who The question of his most recent pro- of seniors will be covered, but of course cannot afford it. That happened to be posal on Medicare, I believe, has to be those seniors who are most at risk, who the proposal that came out of the looked at in that context, and there- have lots of drug expenditures, who ex- Breaux commission. They suggested fore it becomes a question of whether ceed $2,000 in drug expenditures, are people up to 135 percent, I believe, of or not the proposal put forward by the thrown out like the baby with the poverty be allowed to get the drug ben- President, most recently today, is a se- bathwater, but at least politically you efit and have it subsidized and people rious proposal or is it a political pro- pick up the vast majority of seniors over 135 percent would not have that posal. If it is a serious proposal, why is who have lower drug costs. event occur. Therefore, people with it not in step with the Breaux commis- One has to look at that benefit and higher incomes would not end up being sion, and if it is a political proposal, say that is a more politically driven subsidized by working Americans who what is its purpose? benefit structure than a benefit struc- maybe cannot afford to subsidize the Let’s look at it quickly. Nobody has ture directed at the problem, which is drug benefit of senior citizens because had a great deal of time to analyze it, the huge amount of drug costs on sen- they have to take care of their own but if you look at it quickly, it appears ior citizens and the fact it can wipe out household expenditures. to be a proposal that is turning on its their assets. Yet this proposal from the adminis- head the basic purposes of a drug ben- One has to look at another issue, tration has not taken the tack of the efit. which is, we all know a drug benefit is Breaux commission which says: Let’s The Breaux commission suggested very expensive for the Federal Govern- take care of those seniors who need the that the purpose of a drug benefit ment, and therefore for the taxpayers, assistance, but let the seniors who can should be to make sure the beneficiary, and when we are talking about tax- afford to pay for their own drugs pay the person paying the drug costs, was payers, we are talking about younger for them. They turned it upside down: not wiped out by the cost of the drugs. taxpayers who are paying to support Let’s take care of all seniors at the ex- That is a reasonable position. Essen- the senior citizens. pense of working Americans, maybe tially, the Breaux commission con- We have a transfer of income from even Americans who have trouble mak- cluded that we should have some way younger working Americans into sen- ing ends meet. of saying to a senior citizen who ends ior citizens’ accounts, and one would That leads one to the question: Why up with a huge amount of drug costs expect, therefore, in looking at that, are they doing this? Is this the sub- that if you are hit with a catastrophic we would be saying: Seniors who are stantively right thing to do? Is it the drug cost, there is going to be some doing well—and a large number of sen- politically correct thing to do? Yes, it protection for you and some coverage iors in our society are, fortunately, be- is, because we all know when it comes for you. cause we have been able to create an to senior citizen accounts, there is tre- This proposal from the President atmosphere where many seniors have a mendous reticence within the senior does the opposite. Instead of covering a fair amount of income, and, as a mat- citizen activist community in this catastrophic drug event where a senior ter of fact, as a matter disposable in- country to have any sort of means test- citizen has to buy a lot of drugs to come, people over age 65 have more dis- ing, which is what this amounts to, or maintain their health over a period of posable income than in their working affluence testing, which is where it a year and, thus, runs up huge bills years when they were in their twenties would lead to. Yet they allow Ameri- which basically deplete their assets, and thirties. For the most part, you cans to subsidize extremely wealthy June 29, 1999 CONGRESSIONAL RECORD — SENATE S7811 Americans, not only for the drug ben- a dramatic dampening effect on the in- That the bill be limited to 3 hours of efit as proposed by the President but, novative minds of America, on the sci- debate, to be equally divided in the unfortunately, as the President did in entists of America who are producing usual form, that all amendments in part B premiums, they are willing to the new drugs which make people’s order to the bill be relevant to the sub- allow that truly inappropriate action lives better because those scientists ject of amendment Nos. 702, 703, the in- to occur for the political benefit of it. and those innovators are not going to troduced bill or health care tax cuts, Once again, what we are seeing is a po- be able to get funds through the capital and all first degree amendments be of- litical initiative. markets to underwrite their under- fered in an alternating fashion with Then if you look at the proposal in takings. Senator DASCHLE to offer the initial its outline form, you can see it is going Why? Because if you are a capital in- first degree amendment and all first- to create an intricate, complex, bu- vestor, as Mr. Greenspan has so often and second-degree amendments be lim- reaucratic structure to determine what told us, the capital markets are the ited to 100 minutes each, to be equally benefit is covered and is available to be most efficient markets in the world. divided in the usual form. I further ask picked up by the Federal Government Money flows for capital where it gets consent that second-degree amend- under the drug benefit cost. There is the return that makes the most sense ments be limited to one second-degree going to have to be some sort of ex- for those dollars. People are not going amendment per side, per party, with no tremely complex structure. They to invest in drug research and develop- motions to commit or recommit in turned it over to HCFA, which is an ment if they are not going to get ade- order, or any other act with regard to agency that has the capacity to de- quate return. They are not going to get the amendments in order, and that just velop a complex structure, but there adequate return on it if you have a prior to third reading of the bill, it be will need to be some sort of national Federal bureaucracy taking over the in order for the majority leader, or his structure set up in order to account for control of the pricing mechanisms or designee to offer a final amendment, what is and is not covered under the the appropriate drugs to be pur- with no second-degree amendments in system the President has set up in his chased—both of which are potential order. proposal. outcomes of any plan put forward by I further ask consent that following One gets the feeling we are looking this administration because that, as we passage of the bill, should the bill, again at the use of the Federal bu- have already seen, is a goal that is in upon passage, contain any revenue blue reaucracy as the agency to manage the the back of the mind of this adminis- slip matter, the bill remain at the desk day-to-day activities of health care. We tration. So although it is not a stated and that when the Senate receives the know from experience that does not risk, it is, in my opinion, a clear under- house companion bill, the Senate pro- work too well. current of risk as we step into this area ceed to its immediate consideration, This proposal the President has put of drug benefit for senior citizens. all after the enacting clause be strick- forward is, on its face, upside down on The ultimate conclusion of this, of en, and the text of the Senate bill that core basic issues of better health care, course, is that I think the President’s was passed be inserted in lieu thereof, whether it happens to be the premium, proposal is political, not substantive. If the bill as amended be passed, the Sen- whether it happens to be the means the President wanted to substantively ate insist on its amendment and re- testing, or whether it happens to be the pursue a drug proposal, a drug benefit quest a conference with the House, all bureaucracy. for senior citizens that would work, without any intervening action or de- I think the thing that I find most that had been well vetted and well bate. dangerous about this proposal, and the thought out intelligently, he would The PRESIDING OFFICER. Without thing I am most concerned about, is have adopted the proposal of his own objection, it is so ordered. the effect on lifestyle of American sen- commission, the Breaux Commission. Mr. LOTT. I want to announce at this iors because it puts us on an extraor- That was rejected in order to take the time that the minority leader, Senator dinarily slippery slope, in its present path of the political initiative. I think DASCHLE, and I have discussed several structure, which will most likely lead we should be very suspicious before we times how we would proceed with this to a diminution of the effort of the step on to that path as a Congress. matter once we have had this period of American entrepreneurial culture to Mr. President, I appreciate the cour- time for debate and votes on and in re- produce better drugs for seniors. tesy of the Chair and yield the floor. lation to the Patients’ Bill of Rights. A great number of American citizens f today benefit dramatically from the Senator DASCHLE has given me his fact that we have the most vibrant, in- UNANIMOUS-CONSENT AGREEMENT assurance that although this agree- novative drug research and develop- Mr. LOTT. Mr. President, let me say ment will not prohibit Members from ment industry in the world. We have an first Senator DASCHLE and I have la- offering this issue or an amendment re- industry which is second to none in bored long and hard to come to an lated to this issue again in the session, producing products that make people’s agreement on a unanimous-consent he does not expect a need to offer this lives better. procedure to deal with the Patients’ issue again, presuming the normal leg- But it is an extremely expensive un- Bill of Rights issue, appropriations islative process is followed. dertaking. It takes 12 years and hun- bills, and nominations, and it still In other words, if we should complete dreds of millions of dollars to bring a takes an awful lot of good faith. We an action and it goes to conference, if drug to the market. The only way that have to work together. We have to it languishes there or does not come these entrepreneurs can undertake have some trust. We have to give the back, this arrangement would not pro- that initiative is if they are able to go benefit of the doubt to the leaders. hibit some amendment from being of- out in the marketplace and get the Also, in the Senate we have to be pre- fered at some subsequent point. capital necessary to take that type of pared to deal with action. We are try- I can fairly say that the minority risk to produce those drugs. ing to find a way to deal fairly with the leader is willing to say this issue will When you start having the Federal appropriations bills and with the Pa- have had due consideration after these bureaucracy manage who can and who tients’ Bill of Rights. 4 days of debate, and at the conclusion cannot buy a drug and what drug has I ask unanimous consent that the of this week we would not feel the need to be bought and what drug cannot be majority leader or his designee, intro- to readdress it. bought, as will inevitably be, I suspect, duce the underlying health care bill Finally, I announce to the Senate, the outcome of this initiative, as it and it be placed on the calendar by 12 following this agreement, the two lead- moves into its second- and third-gen- noon on Thursday, July 8, and the bill ers have jointly agreed to pass three to eration event—and was the intention, become the pending business at 1 p.m. five of the remaining appropriations by the way, of the Hillary health care on Monday, July 12, 1999, with a vote bills available prior to the Fourth of plan, so we know that we can suspect occurring on final passage at the close July recess. This will take a good bit of that is in the back of somebody’s mind of business on Thursday, July 15, and cooperation, too. around here—then your ultimate out- the bill be subject to the following The top priority of the appropria- come will be to have a chilling effect, agreement: tions bills are likely in the following S7812 CONGRESSIONAL RECORD — SENATE June 29, 1999 order: foreign operations, D.C., Treas- Let me express my appreciation to Mr. REED. I yield the floor. ury-Postal Service, and the pending ag- Senator NICKLES for the amount of The PRESIDING OFFICER. Is there riculture appropriations bill. We will time and effort he has put into all of objection? work to see what the prospects are and this. He is very knowledgeable on the Mr. REED. I withdraw my objection. time to be consumed for Transpor- substance of the Patients’ Bill of The PRESIDING OFFICER. Is there tation, State-Justice-Commerce, or In- Rights issue. objection to the majority leader’s re- terior. There are many Senators on both quest? I have already discussed this matter sides of the aisle who prefer to do this Mr. NICKLES. Reserving the right to twice this afternoon with the chairman another way. It has taken restraint on object, let me clarify something with of the committee. I believe he is work- both sides. I know Senator NICKLES the majority leader. The majority lead- ing with Senator BYRD to try to iden- still has concerns about it, but he has er made a request, or we discussed one tify the bills we could most likely been willing to work with us to come on Thursday evening, I think, at 6:30. move in this remaining time, and how up with an agreement to move forward. The major difference between this re- that can be done—time agreements, if I know that applies to Senator KEN- quest and the one on Thursday is, No. necessary—but we will have to work NEDY also. 1, the limit on debate on the bill is lim- together. I believe we can move at I also have to thank Senator COCH- ited to 3 hours and there was not a least three, and hopefully four, of these RAN and Senator KOHL, managers of time limit? bills. this agriculture appropriations bill, Mr. LOTT. There was not a time In light of this agreement, I now ask around whose neck this issue has been limit on the earlier bill in the general consent that the pending two amend- attached for the last week. They have debate in the earlier unanimous con- ments to the agricultural appropria- been very patient and understanding. sent. There is 3 hours in this unani- tions bill be withdrawn. I hope tomorrow we will be prepared mous consent. Instead of the 2 hours on Mr. DASCHLE. Mr. President, reserv- to move forward aggressively on a the first- and second-degree amend- ing the right to object, and I certainly number of these appropriations bills— ments, 2 hours each, there is 100 min- won’t, I want to reserve my comments the three I mentioned at the top or ag- utes on each one of them. on the overall agreement until after riculture or one of the others. Mr. NICKLES. I appreciate that. For the majority leader has completed his I will be talking to the ranking mem- further clarification, I understand why unanimous consent request, which has ber and Senator DASCHLE about the ap- the minority leader asked for that, but one more piece. propriations we can move forward with I will state—I stated it on the floor—it Let me say in regard to the com- first. was never anyone’s intention on this ments made by the majority leader Mr. KENNEDY. I withdraw my objec- side, to my knowledge, to filibuster the about our assurances, as he has indi- tion. bill. I do think 3 hours is a very limited cated, that we would not pursue this The PRESIDING OFFICER. Is there time. I do think it is possible, though, matter further this year. He used the objection? you can discuss the bill during amend- right phrase—‘‘if the normal legisla- Mr. REED. Reserving the right to ob- ment time, so I am not going to object. tive process’’ is followed. ject, I do not intend to object, but I Then the other major change was a Obviously, we expect the normal leg- want to echo a comment of the Demo- reduction from 120 minutes to 100 min- islative process to be one which will cratic leader. That presumption is that utes. That, of course, is to facilitate a allow a good debate on an array of this flexible process will allow a suffi- greater number of amendments and amendments, first and second-degrees cient number of amendments to come that is understandable as well. So I with limits on time, and that we will to the floor, that it will not be a proc- have no objection. have completed an adequate number of ess where one or two amendments are Mr. LOTT. I thank Senator NICKLES those amendments. brought up and then through a series of again for his cooperation. I do think as This issue, of course, is the Patients’ extended second-degree amendments we go forward it is very likely some of Bill of Rights. The agreement doesn’t delayed? these amendments will not take the preclude debate and amendments on Mr. LOTT. The agreement wouldn’t full time. I assume some of them may other health-related matters unrelated allow for that. even be agreed to by both sides. I also to the Patients’ Bill of Rights. Mr. REED. We are really talking think it is possible we might be going I am confident that if we have a good about a procedure where we could fully along with pretty hot debate and Sen- debate and if we have an opportunity ventilate all the issues—and there are ators may want a little extra time. to consider these amendments, there numerous issues that are inherent in Usually, we try to accommodate each will be no need to pursue this matter this bill. I hope that is the spirit and other, if there really is a need for it, on further this year. The Senate will have the actuality of the agreement. both sides of the aisle. I am not advo- spoken. Mr. LOTT. I think there will be full cating it now. I think we could nitpick I indicated privately in my conversa- opportunity to talk about the sub- it to death, but I think we have come tion with Senator LOTT that this cer- stance of the issue and the bills pend- about as close as we possibly can. tainly is my expectation, and we will ing, and amendments would be offered. I do have two other announcements I decide at the end of that week how well I think after 2 or 3 days on this issue, would like to make. we did. My expectation is the normal most of the issues that need to be de- The PRESIDING OFFICER. Is there legislative process will be followed. bated—or all of the issues—will have objection to the majority leader’s re- I have no objection. been addressed. quest? Without objection, it is so or- Mr. KENNEDY. Reserving the right Senator DASCHLE and I will have dered. to object, and I do not intend to object, talked back and forth about that. I NOMINATIONS do I understand from the leaders we think once we have some critical de- Mr. LOTT. As we have discussed, it is would have the normal kind of days bate and some critical amendments, my intention to work to clear the Ex- that we have traditionally had in the Members will think they have had ecutive Calendar. We now have a num- terms of the workings of the Senate? If the opportunity to be heard and will ber of nominations on the calendar, in- the majority leader could give some in- have made their points. cluding a long list of military nomina- dication of that. So I think there is going to be plenty tions and the nominee to be Secretary Mr. LOTT. It is my intent to move of time here. It doesn’t specify amend- of Treasury. We may even have other forward in the normal fashion that we ments. It doesn’t specify a maximum nominees coming on the calendar. I un- deal with these legislative days. Of or a minimum. There are some time derstand the Finance Committee re- course, we always take into consider- limitations, which is the orderly way ported three more nominations today, ation conflicts that one party or the to do business around here, but there is including the Under Secretary of other may have. There will be no in- not going to be any effort to have two Treasury. We have some judicial nomi- tent to have short days. We intend to or three amendments and then fore- nations. We will begin the process to- have long days so we can have ade- stall everything else. You could not do morrow of hotlining those nomina- quate discussion. it under this arrangement. tions. We will be moving them along as June 29, 1999 CONGRESSIONAL RECORD — SENATE S7813 we go forward on this process of get- cause he recognizes the importance of ment. I have been communicating, as I ting appropriations done. giving this issue a full opportunity for said, with the chairman of the Appro- Again, our purpose is to work to- debate. I appreciate his commitment in priations Committee. In the wrapup, gether and do the people’s business in that regard. we will announce that in the morning the next 21⁄2 days, and that will include I also share his concern about how we we will go to one of the appropriations clearing nominations. Some of them, of might make the appropriations process bills, perhaps D.C. or foreign ops. We course, may hit a snag for one reason work better. Democrats were opposed, will need to confer with a lot of dif- or another, but we will certainly work of course, to the overruling of the ferent people. But when we get the on that. Chair at the time it occurred. To take time agreement, we will go to one of The other thing is we have talked on it back would be consistent with the those. both sides of the aisle about how some- position we took when the vote was In view of the work that has gone on, day we needed to go back and correct a taken a few years back. So I do intend I will announce at this time there will situation that developed a few years to work with him to find a way to re- be no further rollcall votes tonight, but ago with regard to rule XVI so that we solve this matter. That also, of course, Members should expect votes to occur can preserve the integrity of the appro- is assuming we will have opportuni- in the morning and throughout the priations and the authorization proc- ties—I know we have talked about day. ess. Senator DASCHLE and I have talked this—opportunities to have good de- Mr. President, one final announce- about this. We want to reach a point bates with amendments on authoriza- ment: We are going to pursue the possi- where he and I together—not when one tion bills. This will only work if we bility of laying down one of the appro- side or the other seizes the oppor- have the regular order on authoriza- priations bills tonight so we would tunity, but at the earliest opportunity, tion bills. We certainly have to be sure have it pending. I want Members to be he and I will stand together to correct that we have an opportunity on those aware of that, but there still would not what I think was a mistake. And it occasions when authorization bills are be any more recorded votes. originated on our side of the aisle. I ac- presented to have a good debate with Mr. STEVENS addressed the Chair. knowledge that. I was part of the prob- amendments as we have had now on a The PRESIDING OFFICER. The Sen- lem. But I think for the future sanctity couple of bills this year. ator from Alaska. of the appropriations process and to Again, I think this is a good agree- (The remarks of Mr. STEVENS per- make the authorization committees ment. I appreciate the cooperation of taining to the introduction of S. 1301 really work as they should, we should everybody but in particular the leader- are located in today’s RECORD under have that point of order reinstated. ship of the majority leader and Senator ‘‘Statements on Introduced Bills and KENNEDY and others on our side. Senator DASCHLE has indicated he Joint Resolutions.’’) Mr. KENNEDY. Will the Senator would work with me on that. I would Mr. STEVENS. I suggest the absence yield? like it to be totally a bipartisan effort. of a quorum. Mr. DASCHLE. I will be happy to The PRESIDING OFFICER (Mr. I know our ranking member and the yield to the Senator from Massachu- BROWNBACK). The clerk will call the chairman of the Appropriations Com- setts. roll. mittee would like to do that, too. So I Mr. KENNEDY. Mr. President, I join The legislative assistant proceeded thank him for his cooperation on this in commending the two leaders for pro- to call the roll. unanimous consent. pounding this unanimous consent re- Mr. DURBIN. Mr. President, I ask The PRESIDING OFFICER. The quest. These past days have been hard unanimous consent that the order for Democratic leader. fought in establishing a procedure the quorum call be rescinded. Mr. DASCHLE. Mr. President, I want which would be fair and permit the op- The PRESIDING OFFICER. Without to publicly commend the majority portunity for the Senate to debate objection, it is so ordered. leader for the effort he has made over fully some of the important measures I Mr. DURBIN. Mr. President, I ask the last several days to find a way to think are included in the Patients’ Bill unanimous consent to speak as if in resolve this impasse. I believe this is a of Rights. I think the leaders have out- morning business. win-win. I think only through his per- lined a process and the Senate has been The PRESIDING OFFICER. Without sistence and willingness to consider a willing to accept that procedure. Both objection, it is so ordered. lot of different options were we able to leaders do deserve credit. f reach this point. I am grateful to him I want to underscore what both lead- SENATE AGENDA and have, once again, enjoyed the op- ers have said; that is, we are going into portunity to resolve what has been a this whole process on the basis of good Mr. DURBIN. Mr. President, there very significant procedural difficulty faith. I join with the Senator from has been a breakthrough which observ- for us all. South Dakota in feeling we can do the ers in the galleries and others watching I also want to thank the distin- business of the Senate on this issue in might not be aware of; that is, after 2 guished senior Senator from Massachu- that time. But it is also preserved, if weeks of effort on the floor, we now setts for the outstanding job he has for some reason there is not the kind of have an understanding that after the done providing us real leadership on constructive and positive attitude we Fourth of July recess when we return, this issue, as he does on so many issues have heard this evening, that there is we are going to debate the Patients’ relating to health and education. going to be the denial of that oppor- Bill of Rights. I also thank the assistant Republican tunity, that rights will be reserved for That is the bill that talks about re- leader as well. Members to raise these issues at an- forming health insurance in America I believe this is a good agreement other time. I am hopeful we can follow so that families have a better chance of any way one looks at it. It provides us what has been outlined here and in getting quality health care so that with the opportunity to have a good good faith have a full and fair debate when you visit a doctor, and the doctor debate. It provides us with the oppor- on these issues. makes a medical decision for you or tunity to have a series of amendments. The real fireworks are going to be someone you love, it will be less likely It certainly provides us with the focus after the Fourth of July this year. I that some bureaucrat and insurance that we have been looking for with re- look forward to engaging in this de- company will overrule the doctor. gard to the Patients’ Bill of Rights. bate. We want to make certain, as well, This is a very good agreement, agreed I again thank my leader and the ma- that if you have a picnic in the back- to, I think, with the direct involve- jority leader for moving this whole ex- yard on the Fourth of July, and your ment of a lot of people. So we are tremely important piece of legislation little boy climbs up the apple tree and grateful. to the point where it will be center falls out and breaks his arm, you can The majority leader mentioned a stage in the Senate. I thank the leader take him to the closest emergency couple of other matters, one having to for his efforts. room without fumbling through your do with his desire to work full days. He Mr. DASCHLE. I yield the floor. papers to figure out which hospital is has assured me we will work 9- to 12- Mr. LOTT. Mr. President, I would under your health insurance plan. That hour days that week we come back be- like to make one further announce- is just basic common sense. S7814 CONGRESSIONAL RECORD — SENATE June 29, 1999 We want to make sure that if a doc- life than when you are sick and go to a about dealing with health insurance tor decides that a specialist is needed doctor, or someone you dearly love is companies. And in the movie theater in for your problem that the health insur- sick and you bring them to a doctor. which I was sitting in Springfield, IL, ance company just can’t overrule You really want the best care, and you people started applauding. That doesn’t them; that you go ahead and get that don’t want a decision made on the bot- happen much. specialist and get the best care that tom line of a profit statement of an in- But that kind of spontaneous reac- doctor recommends. surance company to guide decisions. tion tells you that the people of this If a woman would like to keep an OB/ You want the decisions made by the country have been waiting for Congress GYN as her primary care physician, we professionals involved. to catch up with the needs of American don’t let the insurance company come We spent the last 2 weeks kind of families. in and second-guess her on those sorts twisted in knots not moving forward I think we can do it. I think this de- of things. very quickly on a lot of other matters bate this week that we have set aside, Fundamentally, this bill will also because we couldn’t agree between the if it doesn’t get bogged down in a lot of argue that health insurance companies, Republican side and the Democratic parliamentary hassles—and I don’t just like every other company in Amer- side on how we might approach this think it will—could result in an honest ica, should be held responsible for their issue. There has been a breakthrough debate where the Republican Party decisions. today. I am happy that it has hap- puts forward its best proposal for Each of us is responsible for our deci- pened. Now we have an agreement that health insurance reform, and the sions in life. If you proceed to drink the week following the Fourth of July Democrats do the same, and we vote on too much and drive and something ter- recess, we will come back and devote it. rible happens, you could be held ac- the entire week to this debate. When it is all said and done, perhaps countable in court. I think of all the things that we have we will then have a bill that really sets The same thing is true for businesses talked about in the 106th Congress— us on a track to help families across that make bad decisions or good deci- and some of them are very important— America get a break when they deal sions. They can be held accountable in there is hardly an issue more impor- with these health insurance companies. court. tant than the peace of mind which Last Saturday I met with a group of There are only two groups that are American families want when it comes farmers in downstate Illinois. I heard above the law: Foreign diplomats who to medical care. They want to have af- an interesting story from one farmer can’t be brought into court in America, fordable, accessible health insurance. about the problems his wife faced be- and health insurance companies—com- They want to be able to speak to a doc- cause of her medical condition. These panies that make decisions every day tor in terms where they are confident farmers in many ways are the most that are literally life and death deci- that the real focus of the attention is vulnerable of all. They don’t have the sions. on the health of the member of the benefit of group health insurance, in We believe with the Democratic family and not the health of the profit most instances, nor can they bargain version of the Patients’ Bill of Rights and loss statement of the insurance with insurance companies. They find that these health insurance companies company. That, unfortunately, has be- themselves, many times, facing out- should entertain the possibility that if come the case. rageous premiums and arbitrary deci- they make the wrong decision they will It wasn’t that many years ago in sions by the insurance companies. be held accountable. Washington that we had this big de- This farmer had driven about 100 I told this story on the floor before. I bate. President Clinton brought in miles to the meeting because he want- think it is one that illustrates exactly health care reform. I am sure you re- ed to tell his story about what he and what is happening. member it. It was a hotly debated his wife had been through with the Sunday night, I was back in my home issue. The insurance companies op- health insurance companies. These sto- State of Illinois and met a cardiologist posed it. There were a lot of efforts to ries, repeated over and over and over from Highland Park, IL, who a week derail it. And they were successful. again, suggest to me that it is our re- before had a woman come into his of- That health insurance-health care re- sponsibility to deal with this. fice complaining of chest pains. This form was swept aside. I hope when this Congress comes to was on a Thursday. He said: I want you But most Americans would believe an end, at least this year we can point in the hospital tomorrow morning, Fri- that we did something because of all back to the fact that we were sensitive day morning, for a catheterization to the changes that took place within the to the issues that America cared about. determine what problem you might last few years. There are more and There was a time, for example, on the have. more Americans under so-called man- Senate floor when there was a serious She checked with her health insur- aged care plans and fewer and fewer question as to whether we would do ance company, and they said, no, she Americans with health insurance. anything—anything—about the hor- cannot go in for that catheterization Fewer employers are offering it. People rible shooting that occurred at Col- because that isn’t an approved hos- in rural areas whom I represent in Illi- umbine High School in Littleton, CO. pital. We have to find a hospital that is nois are finding it increasingly dif- Fortunately, a debate was scheduled on approved under your health insurance ficult to even find, let alone afford, the floor. After a week of debate, we plan. We will check over the weekend health insurance. passed a gun control bill—a modest and call you back. All of these things have been hap- bill, I might say, but one that was de- There was no need to call back. She pening over the last several years in a signed to keep guns out of the hands of passed away on Sunday over that swirl of activities. kids and criminals. weekend. And the doctor said to me: They tell me that last night Jay We sent it to the House of Represent- What am I supposed to tell that fam- Leno, on his television show, talked atives. Sadly, the National Rifle Asso- ily? This woman came to me for the about the fact that Stephen King, after ciation, the gun lobby, used the 2 best advice. I had an appointment this unfortunate accident and the expe- weeks before it came up for a vote to made in a hurry for what I considered rience he had in the hospital, was going lobby away, and they were very effec- to be a serious situation, and it was to write his next horror novel about tive. They watered down the bill until overruled by an insurance company managed care insurance companies. I it was a joke. The bill ultimately was clerk. hope that is not the case. But it might even defeated in the House of Rep- That sort of thing happens too often. be. It drew a rise from the audience, as resentatives. We believe in the Patients’ Bill of I am sure it would almost everywhere. I haven’t given up on that issue, be- Rights to be offered on the Democratic You may remember the movie, ‘‘As cause I think most people across the side, and that the patients and families Good as it Gets,’’ with Helen Hunt and country—gun owners and not—believe across America deserve better treat- Jack Nicholson. I enjoyed it a lot. At we can do things to keep guns out of ment. one point in the movie—she was raising the hands of people who shouldn’t use The bottom line, of course, is that an asthmatic son—she expressed her them for a variety of reasons. The bill you are never more vulnerable in your frustration in very dramatic words we passed was a very modest bill, June 29, 1999 CONGRESSIONAL RECORD — SENATE S7815 which said, for example, that those portation of these clips from overseas. ELECTION OF EHUD BARAK who purchased guns at gun shows So we stopped the domestic manufac- Mr. EDWARDS. Mr. President, I rise would be subject to a background turing, and they started flooding in today to acknowledge the election of check. I don’t think that is an out- from overseas. Ehud Barak to Prime Minister of Israel rageous idea. Frankly, it raises a serious question: and his efforts to form a new govern- We passed the Brady law. We said, if Who needs a gun with a 240-bullet high- ment. I congratulate him, not only on you want to buy a gun, we want to capacity ammunition clip? If you need his most impressive victory, but also know if you have a history of commit- an AK–47 and 240 bullets to shoot a for his commitment to reinvigorate the ting a crime, a violent crime, because deer, you ought to stick to fishing. Middle East peace process. As Mr. if you do, we are not going to sell you Unfortunately, they are coming into Barak enters the critical stage in his a gun; or if you have a history of vio- this country for no purpose other than efforts to forge a coalition government, lent illness, mental illness, we won’t to be used for criminal purposes. I wish him luck. And I applaud his ini- sell you a gun. That has worked. It has Senator FEINSTEIN was successful. tial steps of talking with Egyptian kept guns out of the hands of hundreds She passed that amendment in the Sen- President Mubarak and declaring his of thousands of people. At least it ate. We sent it to the House. It got no- intent to form a ‘‘peace administra- slowed them down, at a minimum, but where. tion’’ of three negotiating teams, one maybe it stopped them from owning a Those are the kinds of things we did each for Syria, Lebanon and the Pal- gun. to try to deal with some of the prob- estinians, reporting directly to him. It turns out that a substantial por- lems we have identified. Having done We must not risk losing momentum to- tion of firearms are sold outside the those things, and having seen the Na- ward achieving a lasting peace. As Israel continues to take risks for law. They are sold at gun shows. We tional Rifle Association do its work in have them all over Illinois, all over the peace, it is all the more important that the House, we have a lot more work to America’s commitment toward Israel United States. People who own guns be done. and collect them get together and sell be unquestioned. Our strong commit- I hope when the debate is concluded them to one another, no questions ment helps Israel take risks and makes at the end of this 106th Congress, we asked. Because no questions are asked, it clear to Israel’s neighbors that Israel can point with pride to having suc- it has become a supply operation for a is a permanent reality that must be ceeded in passing import elements in lot of criminal elements. dealt with directly. Our dedication to law that improve the quality of life in In Illinois, the State police found Israel must take many shapes. We America, that reduce the likelihood of that 25 percent of the guns used in must continue aid to Israel. We must violence in schools, that reduce the crime came out of those gun shows. help Israel militarily. We must ac- likelihood of guns getting in the hands One of the things we put into law in tively support the peace process. We of criminals, that increase the opportu- the Senate was that there would be a must maintain our support for Jeru- nities for families across America to background check, similar to the salem as Israel’s capital. have good health insurance and be able Brady law, to find out if a person pur- America’s support for the peace proc- to trust their doctor’s decisions, and ess, for the security of this region, and chasing at a gun show had, in fact, a several other things that I think are for Israel itself must be unwavering. criminal background or a history of very important as part of the agenda. Israel, the only pluralistic democracy mental illness. in the Middle East, deserves our con- The National Rifle Association One of them has to deal with increas- tinued strong support. Helping Israel doesn’t like that. When they got the ing the minimum wage of $5.15 an hour. survive and thrive is the right thing to bill over in the House, they said, you Imagine, if you will, trying to raise a do. In a particularly volatile part of can’t take more than 24 hours to do the family or even take care of yourself for the world, Israel is strategically impor- check. The gun shows occur on week- $5.15 an hour. It has been years since we have increased it. It is time we tant to America’s interests. We cannot ends, of course, and the wheels that are help but benefit by strengthened eco- spinning forward to check the back- bring that up to a wage that more ac- curately reflects the cost of living in nomic, political, military and cultural grounds of people may not be as avail- ties with Israel. able on weekends. As a consequence, America. I hope before we leave this year we can address that. I have the greatest respect for Israel, they watered down the bill until it was its citizens, and its founders. The cre- meaningless. We cannot leave, as well, without ad- dressing the future of Medicare. This ation of the state of Israel is a remark- A second provision we put into law— able story of a great people who over- Senator HERB KOHL of Wisconsin was has been a banner week for Medicare with the President’s announcement came the Holocaust, rebuffed repeated the author—suggested we not sell guns foreign hostility, and created an indus- that we now have a reestimate of the in America unless they had a trigger trialized democracy in a desert. The budget. We believe if the economy con- lock, a child safety device. Thirteen story of Israel appeals to me because it tinues to grow, as we believe it will, we kids every day in America are killed by is a story of faith and it is a story of are going to have an additional sur- guns. Some are gangbangers who shoot justice. I respect all who stand up to plus. With that surplus we can do some away in Washington, DC, in Chicago, powerful forces against great odds for a extraordinary things. IL. Others, though, are kids who go out just cause. and get a gun off a shelf from their fa- I first came to Congress 17 years ago. No issue is more important to our re- ther’s closet, start to play with it, dis- When I came, we were facing all sorts lationship than aid to Israel. It is one charge it, and shoot themselves, a of red ink and all sorts of deficits. We of America’s most cost-effective for- brother, sister, or playmate. Thirteen have been through a lot of tortuous ef- eign policy investments. The economic kids a day die that way. fort to try to reduce. Now we have and military aid that America provides We want to lessen the likelihood of reached the point where we can hon- Israel serves the interests of both coun- those tragic accidents. Trigger locks, estly see a surplus in our future. I tries by promoting peace, security, and safety devices on guns, do that. That think we can use that surplus to solid- trade. Israel recently initiated an was in our bill. That was sent to the ify Social Security and Medicare and, agreement with the United States House. That was rejected. most importantly, while we do that, under which the United States will The final point is one that Senator eliminate the publicly held national gradually reduce the amount of eco- DIANNE FEINSTEIN of California pro- debt in America. To move from the nomic aid in the coming years while posed, a proposal that tries to close a point where a large portion of our ensuring an adequate amount of mili- loophole in the law. When we passed budget is being spent on interest on the tary assistance. I commend Israel for gun control a few years ago, we said, debt to the point where virtually none this initiative, and I believe that the we are going to prohibit the manufac- is being spent on interest on our debt is United States should stand by it. ture of these high-capacity ammuni- a great legacy to leave our children. I The Middle East’s unstable mixture tion clips, clips that can literally hold hope we can achieve that on a bipar- of unconventional weaponry, advanced up to 240 bullets. Unfortunately, we tisan basis. military technology, political insta- left a loophole and didn’t stop the im- I yield the floor. bility, and radical fundamentalism S7816 CONGRESSIONAL RECORD — SENATE June 29, 1999 threatens both Israel’s security and a.m. I would also like to announce that legislation introduced by my Mid- America’s vital interests in the region the hearing before the Committee on western colleagues, the Junior Senator and around the world. I am committed Energy and Natural Resources pre- from Ohio, Mr. VOINOVICH, and the Jun- to the expansion of the United States- viously scheduled for July 1, 1999 has ior Senator from Indiana, Mr. BAYH, S. Israel strategic cooperation that was been postponed until July 15, 1999 at 872, The Municipal Solid Waste Inter- formalized in 1983. 9:30 a.m. in SH–216 of the Hart Senate state Transportation and Local Au- In addition, it is our national inter- Office Building. The Committee will re- thority Act of 1999. I am pleased to be est to help ensure that Israel main- ceive testimony on S. 161, the Power working with them on this very impor- tains her qualitative military edge. Marketing Administration Reform Act tant issue. I know that they, as former Furthermore, the Unites States should of 1999; S. 282, the Transition to Com- Governors, are intimately aware of the not sell sophisticated weaponry that petition in the Electric Industry Act; concerns that the growing trash trade could erode that edge to nations hos- S. 516, the Electric Utility Restruc- poses for the States we represent. tile toward Israel. And, of course, the turing Empowerment and Competitive- We in the Midwest, especially those United States must do all it can to ness Act of 1999; S. 1047, the Com- of us fortunate enough to be from the stop the development or acquisition of prehensive Electricity Competition Great Lakes States, enjoy a very high nuclear, chemical, and biological weap- Act; S. 1273, the Federal Power Act quality of life—beautiful scenery, ons by rogue states such as Libya, Iraq Amendments of 1999; and S. 1284, the small, neighborly towns, and spectac- and Iran. Electric Consumer Choice Act. For ad- ular natural resources. We hold it as a True and lasting peace between Israel ditional information you may write to particular point of pride that we, in and her neighbors can be achieved only the Committee on Energy and Natural many instances, have the luxury of through direct negotiations between Resources, U.S. Senate, Washington, avoiding many environmental prob- lems and we have structured our State the parties. Nevertheless, the United D.C. 20510. and local governments in Wisconsin to States has played a critical role with Mr. President, I also announce for try to be sure that we continue to Israel and her neighbors in helping the public that a hearing has been avoid them. However, Mr. President, bridge the differences between them. scheduled before the full Committee on we in Wisconsin are unable to protect We must continue to invest the time Energy and Natural Resources. The hearing will take place on Tues- our communities, which have done a and energy necessary to help continue good regulatory job, from having to this very complex series of negotia- day, July 27, 1999, at 9:30 a.m. in room SD–366 of the Dirksen Senate Office deal with the solid waste mess created tions. by our neighboring communities in Israel’s capital of Jerusalem is im- Building in Washington, D.C. The purpose of this hearing is to re- other States. Instead, my State has portant to Jews, Christian, and Mus- been forced to accept other States’ mu- lims. I commend Israel for allowing all ceive testimony on S. 1052, to imple- ment further the Act (Public Law 94– nicipal solid waste in ever increasing three faiths open access to worship at 241) approving the Covenant to Estab- amounts. their holy places. Jerusalem is and lish a Commonwealth of the Northern We need to enact legislation to re- ought to remain a united city under Mariana Islands in Political Union empower States to be able to control Israeli sovereignty. with the United States of America, and the flow of waste into state-licensed Israel is the only country where the for other purposes. landfills from out-of-state sources. United States chooses not to locate our Those wishing to testify or who wish This legislation would give States the embassy in that country’s capital city. to submit written statements should tools to do just that. It gives states, I support the Jerusalem Embassy Act contact the Committee on Energy and like mine, the power to freeze solid that recognizes the united city of Jeru- Natural Resources, Washington, D.C. waste imports at the 1993 levels. States salem as Israel’s capital and mandates For further information, please call that did not accept out of State waste the moving of our embassy from Tel James Beirne, Deputy Chief Counsel at in 1993 would be presumed to prohibit Aviv to Jerusalem. (202) 224–2564, or Betty Nevitt, Staff As- receipt of out-of-State waste until the Finally, I want to discuss Israel’s sistant at (202) 224–0765. affected unit of local government ap- special relationship with my home f proves it. Facilities that already have state of North Carolina. Since 1993, a host community agreement or permit North Carolina and Israel have had one COSPONSORSHIP OF S. 680 that accepts out-of-State waste would of the most comprehensive official ex- Mr. CLELAND. Mr. President, I am remain exempt from the ban. States change programs in the country. Both happy to announce that I have decided would also be allowed to set a State- North Carolina and Israel have econo- to cosponsor S. 680. This bill, which wide percentage limit on the amount of mies that depend on high technology, was introduced by Senators HATCH and waste that new or expanding facilities agriculture, and education. Both states BAUCUS, makes the tax credit for re- could accept. The limit can not be benefit from their ongoing economic, search and development permanent so lower than 20 percent. Finally, States, social, and cultural exchanges. I look as to encourage investment by compa- under this bill, are also given the abil- forward to doing all I can to promote nies and external investors in research ity to deny the creation of either new this valuable relationship between activities. It has been shown through facilities or the expansion of existing Israel and the great state of North studies conducted by the General Ac- in-State facilities if it is determined Carolina. counting Office and the Bureau of that there is no in-State need for the Mr. President, I look forward to Labor Statistics that R&D tax credit new capacity. working with Israel’s soon-to-be stimulates domestic R&D spending by My home State has tried to address formed government to pursue our na- U.S. companies. This continued spend- this issue repeatedly on its own, with- tions’ many mutual interests. I wish ing on R&D is very important for the out success. On January 25, 1999, a fed- Mr. Barak and his government the best U.S. economy as we head into the next eral appeals court struck down as un- as he pursues peace, security, and pros- century, and I believe this bill serves constitutional a 1997 Wisconsin law perity in the twenty-first century. an important purpose in achieving this that prohibits landfills from accepting f goal. out-of-State waste from communities I look forward to cosponsoring this that don’t recycle in compliance with ANNOUNCEMENT OF HEARINGS bill and gaining support for it in the Wisconsin’s law. We are now examining Mr. MURKOWSKI. Mr. President, for days ahead. options for limiting out-of-State trash the information of the Senate I would f in Wisconsin including: appealing the like to announce that S. 1273, the Fed- decision to the United States Supreme eral Power Act Amendments of 1999; THE MUNICIPAL SOLID WASTE Court, which refused to hear an appeal and S. 1284, the Electric Consumer INTERSTATE TRANSPORTATION of a similar Wisconsin case in 1995, Choice Act have been added to the AND LOCAL AUTHORITY ACT OF passing new State legislation, or pur- hearing to be held before the Com- 1999 suing the option before us today—seek- mittee on Energy and Natural Re- Mr. FEINGOLD. Mr. President, on ing specific authority from Congress to sources on Tuesday, June 29 at 9:30 June 10, 1999 I joined as a co-sponsor of regulate trash from other States. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7817 Wisconsin’s law bans 15 different THE VERY BAD DEBT BOXSCORE MESSAGE FROM THE PRESIDENT recyclables from State landfills. Under Mr. HELMS. Mr. President, at the A message from the President of the the law, communities using Wisconsin close of business yesterday, Monday, United States was communicated to landfills must have a recycling pro- June 28, 1999, the federal debt stood at the Senate by Mr. Williams, one of his gram similar to those required of Wis- $5,600,865,929,234.63 (Five trillion, six secretaries. consin communities under Wisconsin hundred billion, eight hundred sixty- EXECUTIVE MESSAGE REFERRED law, regardless of the law in their home five million, nine hundred twenty-nine As in executive session the Presiding State. About 27 Illinois towns rely on thousand, two hundred thirty-four dol- Officer laid before the Senate a mes- southern Wisconsin landfills. Since the lars and sixty-three cents). sage from the President of the United law took effect, waste haulers serving States submitting a treaty which was those communities have had to find al- Five years ago, June 28, 1994, the fed- ternative landfills for their clients, in- eral debt stood at $4,603,690,000,000 referred to the Committee on Foreign curring higher transportation costs in (Four trillion, six hundred three bil- Relations. the process. IL-based Waste Manage- lion, six hundred ninety million). f Ten years ago, June 28, 1989, the fed- ment Inc. and the 1,300-member Na- REPORT ON THE NATIONAL EMER- eral debt stood at $2,781,451,000,000 (Two tional Solid Waste Management Asso- GENCIES WITH RESPECT TO THE trillion, seven hundred eighty-one bil- ciation were the entities that chal- FEDERAL REPUBLIC OF YUGO- lion, four hundred fifty-one million). lenged Wisconsin’s law, arguing that SLAVIA (SERBIA AND MONTE- Fifteen years ago, June 28, 1984, the the law violated the Interstate Com- NEGRO) AND KOSOVO—MESSAGE federal debt stood at $1,506,943,000,000 merce Clause. FROM THE PRESIDENT—PM 43 By recycling, Wisconsin residents (One trillion, five hundred six billion, have reduced the amount of municipal nine hundred forty-three million) The PRESIDING OFFICER laid be- waste heading to landfills. Since the which reflects a debt increase of more fore the Senate the following message State’s previous out-of-State waste law than $4 trillion—$4,093,922,929,234.63 from the President of the United was struck down by the appeals court (Four trillion, ninety-three billion, States, together with an accompanying in 1995, the amount of non-Wisconsin nine hundred twenty-two million, nine report; which was referred to the Com- waste in Wisconsin landfills has tri- hundred twenty-nine thousand, two mittee on Banking, Housing, and pled. When the law was in effect, 7.7 hundred thirty-four dollars and sixty- Urban Affairs. percent of the municipal waste in Wis- three cents) during the past 15 years. To the Congress of the United States: consin came from out of State. That f As required by section 401(c) of the has risen to more than 22.9 percent National Emergencies Act, 50 U.S.C. since the law was struck down. Though PERSONAL EXPLANATION 1641(c) and section 204(c) of the Inter- this legislation will not afford Wis- national Emergency Economic Powers consin the ability to block garbage Mr. LIEBERMAN. Mr. President, on Act (IEEPA), 50 U.S.C. 1703(c), I trans- containing recyclables from our land- June 28, I was unavoidably detained mit herewith a 6-month periodic report fills, it will at least give my State the due to inclement weather which pre- on the national emergency with re- ability to address the overall volume of vented my flight from taking off in spect to Yugoslavia (Serbia and Monte- waste entering our State. Hartford, CT. Had I not been delayed, I negro) as declared in Executive Order In 1995, I supported flow control leg- would have voted ‘‘no’’ on all four clo- 12808 on May 30, 1992, and with respect islation sponsored by the Senator from ture votes, numbers 184, 185, 186, and to Kosovo as declared in Executive New Hampshire, Mr. SMITH, and drawn 187. Order 13088 on June 9, 1998. substantially from the work of the WILLIAM J. CLINTON. former Senator from Indiana, Mr. f THE WHITE HOUSE, June 29, 1999. Coats. I have been shocked that the EXPLANATION OF MISSED VOTE f Senate, which passed that bill by a sig- nificant majority vote of 94–6, has not Mr. DODD. Mr. President, on Monday ANNUAL REPORT OF THE COR- taken up legislation to address this June 28, 1999, I was not present during PORATION FOR PUBLIC BROAD- issue since that time, shocked until I Senate action on rollcall vote No. 184, CASTING FOR FISCAL YEAR examined the relationship between the a motion to invoke cloture on S. 1233, 1998—MESSAGE FROM THE PRESI- interests opposing that legislation and the Agriculture, Rural Development, DENT—PM 44 political campaigns. According to the Food and Drug Administration, and The PRESIDING OFFICER laid be- Center for Responsive Politics, in the Related Agencies Appropriations Act, fore the Senate the following message 1998 election cycle, one of the interests 2000, because my flight was delayed by from the President of the United that opposes flow control legislation, inclement weather. States, together with an accompanying Waste Management Inc., contributed Had I been present for the vote, I report; which was referred to the Com- $422,275 in soft money to the two major would have voted ‘‘no.’’ mittee on Commerce, Science, and political parties—$85,000 to the Demo- f Transportation. cratic Party and $337,275 to the Repub- To the Congress of the United States: lican Party. Mr. President, the issue of CORRECTION TO THE RECORD interstate waste control effects my In accordance with the Public Broad- home State and 23 other States. For In the RECORD of June 24, 1999, on casting Act of 1967, as amended (47 years States have been faced with the page S7590, the introduction of S. 1280, U.S.C. 396(i)), I transmit herewith the challenge of ensuring safe responsible a bill to terminate the exemption of Annual Report of the Corporation for management of out-of-State waste, and certain contractors, and other entities Public Broadcasting (CPB) for Fiscal the need for State control is even more from civil penalties for violations of Year 1998 and the Inventory of the Fed- acute today than in was in 1995. Con- nuclear safety requirements under eral Funds Distributed to Public Tele- gress is the only body that can give the Atomic Energy Act of 1954, and for communications Entities by Federal States the relief they need from being other purposes, was incorrectly attrib- Departments and Agencies for that overwhelmed by a tidal wave of trash. uted to Mrs. BOXER. The permanent same year. We have not acted on a problem that RECORD will be corrected to reflect the Among its many outstanding effects nearly half of our States, and following: projects over the past year, CPB has citizens are left to try to understand By Mr. BRYAN: put considerable time and effort into our inaction by following the money S. 1280. A bill to terminate the ex- strengthening the teaching and devel- trail behind the trash truck. emption of certain contractors and opment of America’s literacy tradition. We need to take prompt action on other entities from civil penalties for Working with educators, writers, and this matter, and I think this legisla- violations of nuclear safety require- experts from all across the country, tion is a good first step. I urge my ments under the Atomic Energy Act of CPB has launched a companion website other colleagues to consider lending 1954; to the Committee on Environment filled with exceptional teaching mate- this bill their support. and Public Works. rials and continues to make possible S7818 CONGRESSIONAL RECORD — SENATE June 29, 1999 the broadcast of some of the Nation’s ka, Subpart C and D–1999–2000 Subsistence (4) That it is necessary to expand federal finest literature over our public air- Taking of Fish and Wildlife Regulations’’ and state activities to combat the evasion of waves. In addition, CPB is also expand- (RIN1018–AD69), received June 23, 1999; to the federal highway taxes and fees. Be it further Resolved, That copies of this Joint Memo- ing the availability of teacher profes- Committee on Energy and Natural Re- sources. rial be transmitted to the President of the sional development in the social f United States Senate, the Speaker of the sciences, humanities, and literature. United States House of Representatives, and As we move into the digital age, I am PETITIONS AND MEMORIALS to each member of Colorado’s delegation of confident that the Corporation for Pub- The following petitions and memo- the United States Congress. lic Broadcasting will continue to act as rials were laid before the Senate and POM–228. A resolution adopted by the a guiding force. As the projects above were referred or ordered to lie on the illustrate, CPB not only inspires us, it House of the Legislature of the State of table as indicated: Michigan relative to a permanent repository educates and enriches our national cul- POM–227. A joint resolution adopted by the for high-level nuclear waste; to the Com- ture. General Assembly of the State of Colorado mittee on Environment and Public Works. WILLIAM J. CLINTON. relative to federal highway taxes and dem- HOUSE RESOLUTION NO. 56 THE WHITE HOUSE, June 29, 1999. onstration projects; to the Committee on En- Whereas, Over the past four decades, nu- f vironment and Public Works. clear power has become a significant source SENATE JOINT MEMORIAL 99–003 for the nation’s production of electricity, EXECUTIVE AND OTHER Whereas, Due to the dynamics of state size, Michigan is among the majority of states COMMUNICATIONS population, and other factors such as federal that derive energy from nuclear plants; and The following communications were land ownership and international borders, Whereas, Since the earliest days of nuclear laid before the Senate, together with there is a need for donor states that pay power, the great dilemma associated with more in federal highway taxes and fees than this technology is how to deal with the waste accompanying papers, reports, and doc- material that is produced. This high-level ra- uments, which were referred as indi- they receive from the federal government and for donee states that receive more mon- dioactive waste material demands excep- cated: eys from the federal government than they tional care in all facets of its storage and EC–3992. A communication from the Sec- pay in federal highway taxes and fees; and disposal, including the transportation of this retary of Education, transmitting, a draft of Whereas, The existence of such donor and material; and proposed legislation entitled ‘‘College Com- donee states supports the maintenance of a Whereas, In 1982, Congress passed the Nu- pletion Challenge Grant Act of 1999’’; to the successful nationwide transportation sys- clear Waste Policy Act of 1982. This legisla- Committee on Health, Education, Labor, and tem; and tion requires the federal government, Pensions. Whereas, There should be a uniform meas- through the Department of Energy, to build EC–3993. A communication from the Assist- ure when considering the donor and donee a facility for the permanent storage of high- ant Secretary for Fish and Wildlife and issue, and a ratio derived from the total level nuclear waste. This act, which was Parks, Department of the Interior, transmit- amount of moneys a state receives divided amended in 1987, includes a specific time- ting, a draft of proposed legislation relative by the total amount of moneys that the table to identify a suitable location and to to the Chattahoochee River National Recre- state collects in federal highway taxes and establish the waste facility. The costs for ation Area; to the Committee on Energy and fees is a clear and understandable measure; this undertaking are to be paid from a fee Natural Resources. and that is assessed on all nuclear energy pro- EC–3994. A communication from the Assist- Whereas, Demonstration projects are an duced; and ant Secretary, Legislative Affairs, Depart- ineffective use of federal highway taxes and Whereas, In accordance with the federal ment of State, transmitting, pursuant to the fees; and act, customers of utilities operating nuclear Foreign Assistance Act of 1961, the report of Whereas, All moneys residing in the fed- plants in Michigan have contributed, di- a determination authorizing the use in fiscal eral highway trust fund should be returned rectly and through accumulated interest, year 1999 of funds to support the United Na- to the states either for use on the national some $700 million for the construction and tions Assistance Mission to East Timor; to highway system or nationally uniform high- operation of a federal waste facility; and the Committee on Foreign Relations. way safety improvement programs or as Whereas, There are serious concerns that EC–3995. A communication from the Assist- block grants; and the federal government is not complying ant Secretary, Legislative Affairs, Depart- Whereas, The state block grant program with the timetables set forth in federal law. ment of State, transmitting, pursuant to the should allow states to make the final deci- Every delay places our country at greater Trade Act of 1974, the report of an extension sions that affect the funding of their local risk, because the large number of temporary of Presidential Determination 99–26 relative highway projects based on the statewide sites at nuclear facilities across the country to the Republic of Belarus; to the Committee planning process; and makes us vulnerable to potential problems. on Foreign Relations. Whereas, Only a reasonable amount of the The Department of Energy, working with the EC–3996. A communication from the Chair- moneys collected from the federal highway Nuclear Regulatory Commission, must not man of the Board, National Credit Union Ad- taxes and fees should be retained by the fail to meet its obligation as provided by ministration, transmitting, pursuant to law, United States Department of Transportation law. There is too much at stake; now, there- a report relative to schedules of compensa- for safety and research purposes; and fore, be it tion; to the Committee on Banking, Housing, Whereas, States with public land holdings Resolved by the House of Representatives, and Urban Affairs. should not be penalized for receiving trans- That we urge the United States Department EC–3997. A communication from the Assist- portation funding through federal land or na- of Energy and the Nuclear Regulatory Com- ant Secretary, Pension and Welfare Benefits tional park transportation programs, and mission to fulfill their obligation to estab- Administration, Department of Labor, trans- such funding should not be included in the lish a permanent repository for high-level mitting, pursuant to law, the report of a rule states’ allocation of moneys; and nuclear waste; and be it further entitled ‘‘Interpretive Bulletin 99–1; Payroll Whereas, The evasion of federal highway Resolved, That copies of this resolution be Deduction Programs for Individual Retire- taxes and fees further erodes the ability of transmitted to the United States Depart- ment Accounts’’ (RIN1210–AA70), received the state and the federal government to ment of Energy, the Nuclear Regulatory June 23, 1999; to the Committee on Health, maintain an efficient nationwide transpor- Commission, the President of the United Education, Labor, and Pensions. tation system; now, therefore, be it States, the President of the United States EC–3998. A communication from the Acting Resolved by the Senate of the Sixty-second Senate, the Speaker of the United States Chair, Federal Subsistence Board, U.S. Fish General Assembly of the State of Colorado, the House of Representatives, and the members and Wildlife Service, Department of the Inte- House of Representatives concurring herein: of the Michigan congressional delegation. rior, transmitting, pursuant to law, the re- (1) That, when considering issues related to Adopted by the House of Representatives, port of a rule entitled ‘‘Subsistence Manage- donor and donee states, the federal govern- May 5, 1999. ment Regulations for Public Lands in Alas- ment should adopt a ratio derived from the ka, Subparts A, B, C, and D, Redefinition to total amount of moneys a state receives in POM–229. A concurrent resolution adopted Include Waters Subject to Subsistence Pri- federal highway moneys divided by the total by the Legislature of the State of Michigan ority; Correction’’ (RIN1018–AD68), received amount of moneys the state collects in fed- relative to a permanent repository for high- June 23, 1999; to the Committee on Energy eral highway taxes and fees; and level nuclear waste; to the Committee on En- and Natural Resources. (2) That all demonstration projects should vironment and Public Works. EC–3999. A communication from the Acting be eliminated; and HOUSE CONCURRENT RESOLUTION NO. 29 Chair, Federal Subsistence Board, U.S. Fish (3) That after federal moneys have been ex- Whereas, Over the past four decades, nu- and Wildlife Service, Department of the Inte- pended for the national highway system and clear power has become a significant source rior, transmitting, pursuant to law, the re- safety improvements, a state block grant for the nation’s production of electricity, port of a rule entitled ‘‘Subsistence Manage- program should be established for the dis- Michigan is among the majority of states ment Regulations for Public Lands in Alas- tribution of remaining federal moneys; that derive energy from nuclear plants; and June 29, 1999 CONGRESSIONAL RECORD — SENATE S7819 Whereas, Since the earliest days of nuclear est asset for forest managers and the public, native minimum tax reform; to the Com- power, the great dilemma associated with providing access for a multitude of rec- mittee on Finance. this technology is how to deal with the waste reational opportunities, for emergency re- By Mr. HARKIN: material that is produced. This high-level ra- sponse efforts, and for resource management, S. 1300. A bill to amend the Internal Rev- dioactive waste material demands excep- protection, and improvement activities; and enue Code of 1986 and the Employee Retire- tional care in all facets of its storage and Whereas, the federal government continues ment Income Security Act of 1974 to prevent disposal, including the transportation of this to close roads to public access by motorized the wearing away of an employee’s accrued material; and vehicles and, in early 1998, the forest service benefit under a defined plan by the adoption Whereas, In 1982, Congress passed the Nu- proposed and is now planning to implement of a plan amendment reducing future accru- clear Waste Policy Act of 1982. This legisla- an 18-month moratorium on all new road als under the plan; to the Committee on Fi- tion requires the federal government, building in roadless areas pending a review nance. through the Department of Energy, to build of its road management policies; and By Mr. STEVENS (for himself, Mr. a facility for the permanent storage of high- Whereas, one stated purpose of the morato- LOTT, Mr. HOLLINGS, and Mr. DOR- level nuclear waste. This act, which was rium is to close or obliterate existing roads, GAN): amended in 1987, includes a specific time- thus creating additional defacto roadless S. 1301. A bill to provide reasonable and table to identify a suitable location and to areas contrary to the interests of Montana’s non-discriminatory access to buildings establish the waste facility. The costs for citizens; and owned or used by the Federal government for this undertaking are to be paid from a fee Whereas, the scheduled destruction of the provision of competitive telecommuni- that is assessed on all nuclear energy pro- nearly 2,000 miles of roads in the 10 national cations services by telecommunications car- duced; and forests in Montana can have significant envi- riers; to the Committee on Commerce, Whereas, In accordance with the federal ronmental, economic, and cultural impacts Science, and Transportation. act, customers of utilities operating nuclear upon the fabric of many Montana commu- By Mr. GRAMS (for himself, Mr. plants in Michigan have contributed, di- nities and its citizens; and DOMENICI, and Mr. THOMAS): rectly and through accumulated interest, Whereas, 650 miles of forest system roads S. 1302. A bill to correct the DSH Allot- some $700 million for the construction and in the Flathead National Forest alone have ments for Minnesota, New Mexico, and Wyo- operation of a federal waste facility; and been scheduled for obliteration and 200 miles ming under the medicaid program for fiscal Whereas, There are serious concerns that have already been destroyed; and years 2000, 2001, and 2002; to the Committee the federal government is not complying Whereas, destruction or obliteration of ex- on Finance. with the timetables set forth in federal law. isting forest system roads can cause short- By Mr. MURKOWSKI (for himself, Mr. Every delay places our country at greater term and long-term increased discharges of BREAUX, Mr. GORTON, Mr. COCHRAN, risk, because the large number of temporary sediment to streams, adversely affecting cer- Mr. HUTCHINSON, Ms. COLLINS, Mrs. sites at nuclear facilities across the country tain sensitive or endangered fish species and LINCOLN, Mr. SHELBY, Ms. SNOWE, makes us vulnerable to potential problems. resulting in further restrictions on other Mrs. MURRAY, Mr. SESSIONS, Mr. The Department of Energy, working with the multiple-use activities. Now, therefore, be it SMITH of Oregon, Mrs. HUTCHISON, Nuclear Regulatory Commission, must not Resolved by the Senate and the House of Rep- Mr. GRAMS, and Ms. LANDRIEU): fail to meet its obligation as provided by resentatives of the State of Montana: S. 1303. A bill to amend the Internal Rev- law. There is too much at stake; now, there- (1) That the 56th Montana Legislature op- enue Code of 1986 to modify certain provi- fore, be it poses the current administration’s policy on sions relating to the treatment of forestry Resolved by the House of Representatives (the national forest road closure and obliteration activities; to the Committee on Finance. Senate concurring), That we urge the United and urges the immediate suspension of road f States Department of Energy and the Nu- closure and obliteration activities. clear Regulatory Commission to fulfill their (2) That existing roads are a valuable and STATEMENTS ON INTRODUCED obligation to establish a permanent reposi- necessary capital investment in public lands BILLS AND JOINT RESOLUTIONS tory for high-level nuclear waste; and be it that should not be lost or destroyed. By Mr. WARNER: further (3) That forest plans specifying multiple- S. 1298. A bill to provide for profes- Resolved, That copies of this resolution be use management for timber harvest, outdoor transmitted to the United States Depart- recreation, range, watershed, and fish and sional liability insurance coverage for ment of Energy, the Nuclear Regulatory wildlife values should be given priority as Federal employees, and for other pur- Commission, the President of the United the appropriate and necessary management poses; to the Committee on Govern- States, the President of the United States guidance to the forest service. Be it further mental Affairs. Senate, the Speaker of the United States Resolved, That copies of this resolution be THE FEDERAL EMPLOYEES EQUITY ACT OF 1999 House of Representatives, and the members sent by the Secretary of State to the Mon- Mr. WARNER. Mr. President, I rise of the Michigan congressional delegation. tana Congressional Delegation, the Sec- Adopted by the House of Representatives, retary of the federal Department of Interior, today to introduce the Federal Em- May 5, 1999. the Secretary of the federal Department of ployees Equity Act of 1999. Adopted by the Senate, May 20, 1999. Agriculture, the Director of the United My legislation expands a provision States Forest Service, the Director of the included in the omnibus appropriations POM–230. A joint resolution adopted by the United States Fish and Wildlife Service, the bill for fiscal year 1997 (P.L. 104–208) to Legislature of the State of Montana relative President of the United States Senate, the allow federal agencies to contribute to to national forest road closure and oblitera- Speaker of the United States House of Rep- the costs of professional liability insur- tion; to the Committee on Energy and Nat- resentatives, and the President and Vice ural Resources. ance for their senior executives, man- President of the United States. agers and law enforcement officials. HOUSE JOINT RESOLUTION 26 f While this important benefit contained Whereas, there are 737 million acres of for- in the Omnibus Appropriation bill was ested land covering approximately one-third INTRODUCTION OF BILLS AND of the United States, a nation that has cre- JOINT RESOLUTIONS indeed enacted, it has not been made available on as wide a basis to federal ated the largest legally protected wilderness The following bills and joint resolu- employees as we had hoped. system in the world, while at the same time tions were introduced, read the first sustaining a highly productive and efficient The Federal Employees Equity Act and second time by unanimous con- wood products industry; and would ensure that federal agencies re- sent, and referred as indicated: Whereas, the federal government owns ap- imburse one-half the premiums for proximately two-thirds of the land in west- By Mr. SPECTER (for himself, Mr. Professional Liability Insurance for ern Montana and these lands are primarily LIEBERMAN, Ms. COLLINS, and Mr. employees covered by this bill. Federal administered by the U.S. Forest Service; and LEVIN): Whereas, the management of federal lands S. 1297. A bill to make improvements in managers, supervisors, and law en- has a direct impact on economic and rec- the independent counsel statute; to the Com- forcement officials should not have to reational opportunities and the quality of mittee on Governmental Affairs. fear the excessive costs of legal rep- life for thousands of Montana residents; and By Mr. WARNER: resentation when unwarranted allega- Whereas, Congress has declared in the fed- S. 1298. A bill to provide for professional li- tions are made against them for inves- eral Multiple-Use Sustained-Yield Act of 1960 ability insurance coverage for Federal em- tigations of these allegations are con- that national forests are established and ployees, and for other purposes; to the Com- ducted. must be utilized for outdoor recreation, mittee on Governmental Affairs. I was a strong supporter of the provi- range, timber, watershed, and wildlife and By Mr. ROCKEFELLER (for himself, fishery purposes; and Mr. NICKLES, Mr. ROBB, Mr. HATCH, sion in 1996 because federal officials Whereas, the national forest road system and Mr. MACK): often found themselves to be the target represents a significant capital infrastruc- S. 1299. A bill to amend the Internal Rev- of unfounded allegations of wrong- ture investment and a valuable existing for- enue Code of 1986 to provide corporate alter- doing. Sometimes allegations were S7820 CONGRESSIONAL RECORD — SENATE June 29, 1999 made by citizens, against whom federal Employees Union) have endorsed the native minimum tax works for capital officials were enforcing the law and by concept for legislation to require fed- intensive and commodity based compa- employees who had performance or eral agencies to reimburse half the cost nies. It is relatively modest in scope conduct problems. Although many alle- of premiums for professional liability and I hope it will be part of any discus- gations have proven to be specious, insurance. sion we have about how we might de- these federal officials were often sub- The intent of this measure is simply liver appropriate tax relief. Even ject to lengthy investigations and had to ‘‘level the playing field’’ so that su- though this bill does not change the to pay for their own legal representa- pervisors and managers are treated fundamentals of the corporate AMT, it tion when their agencies could not pro- equally by various federal agencies and would eliminate some of the unfairness vide it. have access to protections similar to of current law by allowing companies The affected federal managers, super- those which are already provided for with long term AMT credits to recover visors, and law enforcement officials rank and file federal employees. those credits faster. I think this bill are generally prohibited from being I request your support for these fed- should be part of the Finance Commit- represented by unions. For employees eral officials and for this legislation. tee’s discussions about constructive Mr. President, I ask unanimous con- who are in bargaining units rep- ways to provide corporate tax relief. resented by unions, Congress allows sent that the text of the bill be printed federal agencies to subsidize the time in the RECORD. The alternative minimum tax im- and expenses of union representatives There being no objection, the bill was poses a significant long term tax bur- when they are needed by such employ- ordered to be printed in the RECORD, as den on capital intensive industries —it ees, whether or not they are dues pay- follows: is not a minimum tax, but is, in fact, a ing members of the union. S. 1298 maximum tax which requires compa- Because these federal officials are de- Be it enacted by the Senate and House of Rep- nies to calculate their taxes two dif- nied union representation, they have resentatives of the United States of America in ferent ways and pay the higher of the found it necessary to purchase profes- Congress assembled, two calculations. It hits our manufac- sional liability insurance in order to SECTION 1. PROFESSIONAL LIABILITY INSUR- turing sector hard because these busi- protect themselves when allegations ANCE. nesses are most likely to have to make (a) SHORT TITLE.—This Act may be cited as are made against them to the inspector the ‘‘Federal Employees Equity Act of 1999’’. large investments in plants and equip- general of their agency, to the Office of (b) IN GENERAL.—Section 636(a) of the ment. Manufacturing businesses that Special Counsel, or to the EEO office. Treasury, Postal Service, and General Gov- make commodity products often have The insurance provides coverage for ernment Appropriations Act, 1997 (Public slim profit margins and must contend legal representation for the employees Law 104–208; 110 Stat. 3009–363; 5 U.S.C. prec. with fierce international competition. 5941 note) is amended in the first sentence by when they are accused, and will pay The coal and steel industry are perfect judgements against the employee up to striking ‘‘may’’ and inserting ‘‘shall’’. (c) LAW ENFORCEMENT OFFICERS.—Section examples of these types of industries. a maximum dollar amount if the em- 636(c)(2) of the Treasury, Postal Service, and Other businesses with tight profit mar- ployee is found to have made a mistake General Government Appropriations Act, gins such as start up companies are while carrying out his official duties. 1997 (Public Law 104–208; 110 Stat. 3009-364; 5 also negatively affected by AMT. Currently, these managers must hire U.S.C. prec. 5941 note) is amended to read as their own lawyers in order to defend follows: Today, a taxpayer’s AMT may be re- their reputation and careers when they ‘‘(2) the term ‘law enforcement officer’ duced by foreign tax credits and net op- are the subject of a grievance, regard- means an employee, the duties of whose posi- erating losses, but they are limited to less of whether the complaint has tion are primarily the investigation, appre- 90% of the alternative minimum tax. hension, prosecution, or detention of individ- merit. Under present law, if a taxpayer pays uals suspected or convicted of offenses alternative minimum tax in any year, The current law has had some suc- against the criminal laws of the United cess and has been implemented by sev- States, including— the amount of that payment is treated eral federal departments including: De- ‘‘(A) any law enforcement officer under as an alternative minimum credit for partments of Agriculture, Education, section 8331(20) or 8401(17) of title 5, United future years. This was intended to en- Interior, Labor, and such agencies as States Code; sure that companies did not wind up the Social Security Administration, ‘‘(B) any special agent under section 206 of paying more under the AMT than was Small Business Administration, Gen- the Omnibus Diplomatic Security and owed under the regular income tax. Antiterrorism Act of 1986 (22 U.S.C. 4823); However, under current law, AMT cred- eral Services Administration, Securi- ‘‘(C) any customs officer as defined under ties and Exchange Commission, Na- section 5(e)(1) of the Act of February 13, 1911 its may be used to reduce regular tax tional Aeronautics and Space Adminis- (19 U.S.C. 267); but not alternative minimum tax. No tration, the Office of the Inspector ‘‘(D) any revenue officer or revenue agent carryback of credits is permitted. General at the Department of Housing of the Internal Revenue Service; or The provisions of the ‘‘Alternative ‘‘(E) any Assistant United States Attorney and Urban Development, the National Minimum Tax Reform Act of 1999’’ Science Foundation, the Merit Systems appointed under section 542 of title 28, would allow a corporation with AMT Protections Board, the Office of the In- United States Code.’’. (d) EFFECTIVE DATE.—The amendments credits that are unused after three or spector General at the Office of Public made by this Act shall take effect on the more years to reduce its tentative min- Health and Science, and the Substance later of— imum tax by a maximum of 50% using Abuse and Mental Health Services Ad- (1) October 1, 1999; or those credits. The portion which would ministration at Department of Health (2) the date of enactment of this Act. and Human Services. be allowed would the lesser of the ag- Regrettably, other departments such By Mr. ROCKEFELLER (for him- gregate amount of the taxpayer’s AMT as Treasury, Justice, Defense, Com- self, Mr. NICKLES, Mr. ROBB, credits that are at least three years merce, Transportation, Veterans Af- Mr. HATCH, and Mr. MACK). old; or 50% of the taxpayer’s alter- fairs, and agencies such as the Equal S. 1299. A bill to amend the Internal native minimum tax. The taxpayer Employment Opportunity Commission, Revenue Code of 1986 to provide cor- would use its oldest AMT credits first and the Office of Personnel Manage- porate alternative minimum tax re- under both current law that allows a ment have not seen fit to do so. form; to the Committee on Finance. company to use its AMT credits, and The professional associations of these ALTERNATIVE MINIMUM TAX REFORM ACT OF 1999 under the provisions of this bill. The officials (the Senior Executives Asso- Mr. ROCKEFELLER. Mr. President, I bill would enhance a company’s ability ciation, the Professional Managers As- rise today to introduce the ‘‘Alter- to use AMT credits to reduce its reg- sociation, the FBI Agents Association, native Minimum Tax Reform Act of ular tax. Finally, the bill would allow a the Federal Criminal Investigators As- 1999’’ with a bipartisan group of my taxpayer with AMT net operating sociation, the Federal Law Enforce- colleagues on the Senate Finance Com- losses in the current and two previous ment Officers Association, the Na- mittee, Senators NICKLES, ROBB, HATCH years to carry back AMT net operating tional Association of Assistance U.S. and MACK. This bill is designed to im- losses up to 10 years to offset AMT paid Attorneys, and the National Treasury prove the way the corporate alter- in previous years. First-in, and first- June 29, 1999 CONGRESSIONAL RECORD — SENATE S7821 out ordering would apply. This provi- mined under subsection (b) attributable to The Taxpayer Relief Act of 1997 ex- sion would help companies in the the adjusted net minimum tax for taxable empted small corporations from the toughest financial shape. years beginning after 1986 and ending before AMT, and conformed the depreciation The ‘‘Alternative Minimum Tax Re- the 3rd taxable year immediately preceding cost-recovery periods for AMT and the the taxable year for which the determination form Act of 1999’’ is designed to help is being made. regular corporate tax. The depreciation prevent companies from being trapped ‘‘(ii) FIRST-IN, FIRST-OUT ORDERING RULE.— provisions in particular will relieve permanently into AMT status. Recov- For purposes of clause (i), credits shall be much of the AMT’s negative impact on ering more AMT credits sooner will treated as allowed under subsection (a) on a capital-intensive businesses. help ease the position of many compa- first-in, first-out basis.’’. However, even with these changes, nies who are now stuck with excess and (b) CONFORMING AMENDMENTS.—Section some businesses continue to be chronic unusable AMT credits. Too many com- 53(c) of such Code is amended— AMT taxpayers, a situation that was panies have paid AMT for years and see (1) by striking ‘‘The’’ and inserting the fol- lowing: not contemplated when the AMT was no possibility of using their AMT cred- ‘‘(1) IN GENERAL.—The’’; and created. These companies continue to its without this reform. Moreover, a (2) by redesignating paragraphs (1) and (2) pay AMT year after year, accumu- great many U.S. companies have had to as subparagraphs (A) and (B), respectively. lating millions in unused AMT credits. deal with sharply decreasing com- SEC. 3. 10-YEAR CARRYBACK OF CERTAIN NET These credits are a tax on future, un- modity prices due to the collapse of OPERATING LOSSES. earned revenues which may never ma- markets in Asia and around the world Section 56(d) of the Internal Revenue Code terialize, and because of the time-value over the last few years. Without some of 1986 (relating to definition of alternative of money their value to the taxpayer tax net operating loss deduction) is amended assistance it will be very hard for by adding at the end the following: decreases every year. American companies to continue to ‘‘(3) SPECIAL RULE.—In the case of a cor- The legislation Senator ROCKEFELLER modernize and remain competitive. poration to which section 56(g) applies which and I are introducing today helps AMT Their position of accumulating excess has a net operating loss under this part for 3 taxpayers recover their AMT credits in AMT credits hurts their cash flow and or more consecutive taxable years which in- a more reasonable time frame than their bottomline profitability. cludes a taxable year beginning after the under current law. Our bill would allow The Alternative Minimum Tax Re- date of enactment of this paragraph, the loss businesses with AMT credits which are form Act of 1999 is something reason- for each such year shall be a net operating three years old or older to offset up to loss carryback for purposes of this part to able we can do to help companies that each of the 10 years preceding the taxable 50 percent of their current-year ten- are the backbone of our manufacturing year of such loss.’’. tative minimum tax. This provision base. I look forward to discussing this SEC. 4. EFFECTIVE DATE. will help chronic AMT taxpayers dig issue with my colleagues and to a score The amendments made by this Act shall their way out of the AMT and allow of how much this proposal would cost apply to taxable years beginning after De- them to recoup at least a portion of from the Joint Tax Committee to in- cember 31, 1998. these ‘‘accelerated tax payments’’ in a form our discussions. Mr. NICKLES. Mr. President, today I reasonable time-frame. Mr. President, I ask unanimous con- join my colleague from West Virginia, Mr. President, our legislation does sent that the text of the bill be printed Senator ROCKEFELLER, to introduce not repeal the AMT, and it will not in the RECORD. legislation to reform the alternative allow taxpayers to ‘‘zero out’’ their tax There being no objection, the bill was minimum tax, or AMT. liability. This bill specifically address- ordered to be printed in the RECORD, as Congress created the AMT in 1986 to es the problems faced by companies follows: prevent businesses from using tax loop- that are buried in AMT credits they S. 1299 holes, such as the investment tax cred- might otherwise never be able to uti- Be it enacted by the Senate and House of Rep- it or safe harbor leasing, to pay little lize. I encourage the Senate Finance resentatives of the United States of America in or no tax. The use of these tax pref- Committee to consider our bill when Congress assembled, erences sometimes resulted in compa- drafting this year’s tax reconciliation SECTION 1. SHORT TITLE. nies reporting healthy ‘‘book’’ income legislation. This Act may be cited as the ‘‘Alternative to their shareholders but little taxable Minimum Tax Reform Act of 1999.’’. income to the government. By Mr. HARKIN: SEC. 2. LONG-TERM UNUSED CREDITS ALLOWED Therefore, to create a perception of S. 1300. A bill to amend the Internal AGAINST MINIMUM TAX. fairness, Congress created the AMT. Revenue Code of 1986 and the Employee (a) IN GENERAL.—Subsection (c) of section 53 of the Internal Revenue Code of 1986 (re- The AMT requires taxpayers to cal- Retirement Income Security Act of lating to limitation) is amended by adding at culate their taxes once under regular 1974 to prevent the wearing away of an the end the following: tax rules, and again under AMT rules employee’s accrued benefit under a de- ‘‘(2) SPECIAL RULE FOR CORPORATIONS WITH which deny accelerated depreciation, fined plan by the adoption of a plan LONG-TERM UNUSED CREDITS.— net operating losses, foreign tax cred- amendment reducing future accruals ‘‘(A) IN GENERAL.—If a corporation to its, and other deductions and credits. under the plan; to the Committee on which section 56(g) applies has a long-term The taxpayer then pays the higher Finance. unused minimum tax credit for a taxable OLDER WORKERS PENSION PROTECTION ACT OF year, the credit allowable under subsection amount, and the difference between 1999 (a) for the taxable year shall not exceed the their AMT tax and their regular tax is greater of— ‘‘credited’ to offset future regular tax Mr. HARKIN. Mr. President, older ‘‘(i) the limitation determined under para- liability if it eventually falls below workers across America have been pay- graph (1) for the taxable year, or their AMT tax liability. ing into pension plans throughout their ‘‘(ii) the least of the following for the tax- Unfortunately, the AMT has had a working years, anticipating the secure able year: negative, unanticipated impact on retirement which is their due. And ‘‘(I) The sum of the tax imposed by section many U.S. businesses. As it is cur- now, as more Americans than ever be- 55 and the regular tax reduced by the sum of rently structured, the AMT is a com- fore in history approach retirement, we the credits allowed under subparts A, B, D, E, and F of this part. plicated, parallel tax code which places are seeing a disturbing trend by em- ‘‘(II) The long-term unused minimum tax a particularly heavy burden on capital ployers to cut their pension benefits. credit. intensive companies. Corporations Many companies are changing to so- ‘‘(III) The sum of— must now plan for and comply with called ‘‘cash balance’’ plans which ‘‘(aa) the excess (if any) of the amount two tax codes instead of one. Further, often saves them millions of dollars in under paragraph (1)(A) over the amount the AMT’s elimination of important pension costs each year by taking a under paragraph (1)(B), plus cost-recovery tax incentives increases substantial cut out of employee pen- ‘‘(bb) 50 percent of the tentative minimum the cost of investment and makes U.S. sions. This practice allows employers tax (determined under section 55(b)(1)(B)). businesses uncompetitive with foreign to unfairly profit at the expense of re- ‘‘(B) LONG-TERM UNUSED MINIMUM TAX CRED- IT.—For purposes of this paragraph— companies. tirees. ‘‘(i) IN GENERAL.—The long-term unused Mr. President, I am proud to say that Employees generally receive three minimum tax credit for any taxable year is several AMT reforms I began pushing types of benefits for working: direct the portion of the minimum tax credit deter- in 1995 were eventually enacted in 1997. wages, health benefits and pensions. S7822 CONGRESSIONAL RECORD — SENATE June 29, 1999 Two of those are long-term benefits for the pension plan and that the plan is an important part of the benefits for which usually grow in value as workers is beneficial to those workers who employees to acquire and maintain a become older. Pensions are paid en- move from company to company (with productive workforce. Many suggest tirely after a worker leaves. Reducing similar pension plans). But, the big that the simple disclosure alone might an employee’s pension years after it is reason is the companies save millions prevent a reduction in payment bene- earned should be no more legal than of dollars. They save it because the fits. denying a worker wages after work has pensions provided for with almost all Much is made about the gains of been done. cash balance plans are, on average far younger workers when companies In fact, our laws do prohibit employ- less generous, and they immediately switch to cash benefit plans. There is ers from directly reducing an employ- reduce their need to pay anything into greater portability. But, none of the ee’s pension accrued benefit. Unfortu- a pension plan at all for a while, some- experts I’ve consulted believes that is a nately, however, these protections are times for years, because of this wear dominant motivation of the companies being sidestepped and workers’ pen- away or plateau feature. for proposing these changes in pension sions are being indirectly reduced At one conference of consulting actu- law. And, the changes I am proposing through the creation of cash balance aries, Joseph M. Edmonds told compa- would not reduce the benefits for pension plans. nies: younger workers. Under traditional defined benefit . . . it is easy to install a cash balance plan I urge my colleagues to take a fresh plans, a worker’s pension is based on in place of a traditional defined benefit plan look at the spirit of the current law their length of employment and their and cover up cutbacks in future benefit ac- that prevents a reduction in accrued average pay during their last years of cruals. For example, you might change from pension benefits. I believe it is only service. Their pension is based on a a final average pay formula to a career aver- fair to extend that law with its current preset formula using those key factors age pay formula. The employee is very ex- spirit by simply requiring that any cited about this because he now has an an- rather than the amount in their pen- nual account balance instead of an obscure company which changes to a cash bal- sion account. Under the typical cash future monthly benefit. The employee does ance or similar pension plan treats all balance plan, a worker’s pension is not realize the implications of the loss of fu- workers fairly and not penalize older based on the sum placed in the employ- ture benefits in the final pay plan. Another employees whose hard work has earned ee’s account. That sum is based on example of a reduction in future accruals them benefits under the earlier pension their wages or salary year to year. could be in the elimination of early retire- plan. When a worker shifts from a tradi- ment subsidies. Mr. President, Ellen Schultz at the tional to a cash balance plan, the em- Because traditional pension plans be- Wall Street Journal has done an excel- ployer calculates the value of the bene- come significantly more valuable in lent series of articles on this issue. I fits they have accrued under the old the last years before retirement, the ask unanimous consent that a copy of plan. The result for many older work- switch to cash balance plans also can those articles appear in the RECORD at ers who have accrued significant sums reduce older workers’ incentive to stay this point. I am also including the text in their pension that are higher than it until they reach their normal retire- of a piece of this same subject done by would have been under the new cash ment age. NPR. If my colleagues have not seen balance plan. In that case, under many I support Senator MOYNIHAN’S legis- these articles I commend them to their of these cash balance plans the em- lation that requires that individuals attention. I believe that once you’ve ployer simply stops contributing to the receive clear individualized notice of read them, you’ll agree with me that value of their pension till the value what a conversion to a cash balance we must take action to protect the reaches the level provided for under the plan would do to their specific pension. pensions of older workers. new plan. And this can go on for sig- There is no question that shining the [From the Wall Street Journal, Dec. 4, 1998] nificant periods—five years and some- light on this dark practice can reduce EMPLOYERS WIN BIG WITH A PENSION SHIFT; times more. Pension experts call this the chance that it will occur. I cer- EMPLOYEES OFTEN LOSE ‘‘wear away’’ others call it a ‘‘pla- tainly agree with his view that those (By Ellen E. Schultz and Elizabeth teau.’’ notices should not be generalized where MacDonald) This is not right. It is not fair. In obfuscation is easier and employees Largely out of sight, an ingenious change fact, I believe it is a type of age dis- will pay less attention to the result. in the way big companies structure their crimination. After all, a new employee, I also believe that more must be pension plans is saving them millions of dol- usually younger, would effectively be done. For that reason, I am intro- lars, with barely a peep of resistance. Unless ducing the Older Workers Pension Pro- they happen to have a Jim Bruggeman on receiving greater pay for the same their staff. work: money put into their pension tection Act of 1999 which prohibits the Sifting through his bills and junk mail one plan. And, there are some who believe practice of ‘‘wear away.’’ It provides day last year, Mr. Bruggeman found the sort this practice violates the spirit and that a company cannot discriminate of notice most people look at but don’t spend perhaps the letter of existing law in against longtime workers by not put- a lot of time on: His company was making that regard. ting aside money into their pension ac- some pension-plan changes. What does this mean to real people? count without any consideration for The company, Central & South West Corp., Two Chase Manhattan banking ex- the long term payments made to the was replacing its traditional plan with a new employee’s pension for earlier work variety it said was easier to understand and ecutives hired an actuary to calculate better for today’s more-mobile work force. A their future pensions after Chase Man- performed. Under my bill, there would brochure sent to workers stressed that ‘‘the hattan’s predecessor, Chemical Bank, be no wear away, no plateau in which a changes being made are good for both you converted to a cash balance plan. The worker would be receiving no increases and the company.’’ actuary estimated their future pen- in pension benefits while working when Alone among Central & South West’s 7,000 sions had fallen 45 percent. John Healy, other employees received benefits. The employees, Mr. Bruggeman, a 49-year-old en- one of the executives, says ‘‘I would new payments would have to at least gineer in the Dallas utility’s Tulsa, Okla., of- equal the payments made under the re- fice, set out to discover exactly how the new have had to work about ten more years system, known as a cash-balance plan, before I broke even.’’ vised pension plan without any regard worked. During a year-long quest to master Ispat Inland, Inc, an East Chicago to how much a worker had accrued in the assumptions, formulas and calculations steel company, converted to a cash bal- pension benefits under the old plan. behind it, Mr. Bruggeman found himself at ance plan January 1. Paul Schroeder, a Some suggest that if such a require- odds with his superiors, and labeled a trou- 44-year-old engineer who has worked ment were put in place, companies blemaker. In the end, though, he figured out for Ispat for 19 years, calculated it could and would opt out of providing something about the new pension system could take him as long as 13 years to any pension at all. I do not believe that that few other employees have noticed: For would happen. Companies with defined many of them, it is far from a good deal. acquire additional benefits. But it clearly was, as the brochure noted, Why are companies changing to these benefit plans do not have them because good for the company. A peek at a CSW regu- cash balance plans? They have lots of they are required to do so. They do it latory filing in March 1998, after the new stated reasons: ease of administration, because of negotiated contracts or be- plan took effect, shows that the company certainty in how much is needed to pay cause the company has decided that it saved $20 million in pension costs last year June 29, 1999 CONGRESSIONAL RECORD — SENATE S7823 alone. Other government filings revealed If the employer promised to credit 5% in- next day, he says, his supervisors in Tulsa that whereas the year before, CSW had to set terest to employees’ account balances, it can came to his office and told him that CSW aside $30 million to fund its pension obliga- keep whatever it earned above that amount. management in Dallas was concerned that tions, after it made the mid-1997 switch it The company can use these earnings to fi- his remarks would ‘‘cause a class-action didn’t have to pay a dime to fund the pension nance other benefits, to pay for a work-force suit’’ or ‘‘uprising,’’ and said he shouldn’t plan. reduction, or—crucially—to cover future talk to any other employees. He says the su- PENSION LIGHT years’ contributions. This is why the switch pervisor, Peter Kissman, informed him that The switch to cash-balance pension plans— makes pension plans self-funding for many if he continued to challenge the new pension details later—is the biggest development in companies. plan, CSW officials would think he wasn’t a Although employers can do this with reg- the pension world in years, so big that some team player, and his job could be in jeop- ular pensions, the savings are grater and consultants call it revolutionary. Certainly, ardy. easier to measure in cash-balance plans. The Asked about this, Mr. Kissman says: ‘‘In many call it lucrative; one says such a pen- savings often transform an underfunded pen- my department I would not tolerate em- sion plan ought to be thought of as a profit sion plan into one that is fully funded. ployee harassment. I believe the company center. Not since companies dipped into pen- ‘‘Cash-balance plans have a positive effect on feels the same way. Past that, I really can’t sion funds in the 1980s to finance leveraged a company’s profitability,’’ says Joseph speak to this issue. It’s being investigated by buyouts, have corporate treasurers been so Davi, a benefits consultant at Towers Perrin the company.’’ abuzz over a pension technique. But its little-noticed dark side—one that in Stamford, Conn. They ‘‘could be consid- A FEW SWEETENERS many companies don’t make very clear to ered a profit center.’’ Employers, aware that switching to cash- employees, to say the least—is that a lot of MOTIVE FOR THE MOVE balance plans can slam older workers, often older workers will find their pensions cut, in Employers, however, are almost univer- offer features to soften the blow. They may some cases deeply. sally reticent about how they benefit. ‘‘Cost agree to contribute somewhat more than the So far, only the most financially sophisti- savings were not the reason the company standard 4% of pay for older employees, or cated employees have figured this out, be- switched to a cash-balance plan,’’ says Paul they may provide a ‘‘grandfather clause.’’ cause the formulas are so complex. Even the Douty, the compensation director at Mr. CSW offered both options, saying employees Labor Department and the Internal Revenue Bruggeman’s employer, CSW. Sure, the move 50 or older with 10 years of service could stay Service have trouble with them. So thou- resulted in substantial cost savings, he says, in the old plan if they wished. Mr. sands of employees, while acutely aware of but the company’s goal was to become more Bruggeman, a 25-year veteran, was just shy how the stock market affects their retire- competitive and adapt to changing times. of 49. He calculated that people in his situa- ment next eggs, are oblivious to the effect of Besides, he notes, the $20 million in pension- tion would see their pensions fall 50% under this change. (See related article on page C1.) plan savings last year were partly offset by the new plan, depending on when they re- One might get the impression, from the a $3 million rise in costs in the 401(k); the tired. rise of 401(k) retirement plans funded jointly company let employees contribute more and Mr. Bruggeman told company officials that by employer and employee, that pensions are increased its matching contributions. the plan wasn’t fair to some long-term em- a dead species. In fact, nearly all large em- There is another reason some employers ployees. Subsequently, he says, in his No- ployers still have pension plans, because like cash-balances plans: By redistributing vember 1997 performance evaluation, his su- pulling the plug would be too costly; the pension assets from older to younger work- pervisor’s only criticism was that he ‘‘spends company would have to pay out all accrued ers, they turn pension rights—which many too much time thinking about the pension benefits at once. Meanwhile, companies face young employees ignore since their pension plan.’’ A CSW official says the company growing obligations as the millions of baby is so far in the future—into appealing bene- can’t discuss personnel matters. boomers move into their peak pension-earn- fits today. At the same time, older workers What bothered Mr. Bruggeman even more ing years. lose a financial incentive to stay on the job, was his discovery of one of the least-known Now, however, employers have discovered a since their later years no longer can balloon features of cash-balance plans: Once enrolled substitute for terminating the pension plan; the pension. in them, some employees don’t earn any a restructuring that often makes it unneces- Some pension professionals think compa- more toward their pension for several years. sary ever to feed the plan again. nies should be more candid. ‘‘If what you The reasons are convoluted, but in a nut- PITFALLS FOR EMPLOYERS want to do is get rid of older workers, don’t shell: Most employees believe that opening But this financially appealing move has its mask it as an improvement to the pension balance in their new pension account equals risks. The IRS has never given its blessing to plan,’’ says Michael Pikelny, an employee- the credits they’ve earned so far under the some of the maneuvers involved. If employ- benefits specialist at Hartmarx Corp., an ap- old plan. But in fact, the balance often is ers don’t win a lobbying battle currently parel maker in Chicago that decided not to lower. When employers convert to a cash-balance being waged for exemptions from certain install a cash-balance plan. plan, they calculate a present-day, lump-sum pension rules, some of these plans could be in UNDER A MICROSCOPE value for the benefit each employee has al- for a costly fix. Most employees aren’t equipped to ques- ready earned. In Mr. Bruggeman’s case, this In addition, the way employers are han- tion what employers tell them. But Mr. was $352,000—something he discovered only dling the transition could result in em- Bruggeman was. He had a background in fi- after obtaining information from the com- ployee-relations backlashes as more and nance, his hobby was actuarial science, he pany and making the calculations himself. more older workers eventually figure out had taken graduate-level courses in statis- Yet Mr. Bruggeman’s opening account in the they are paying the price for the trans- tics and probability, and he knew CSW’s old cash-balance plan was just $296,000, because formation of traditional pension plans. pension plan inside and out. So when the the company figured it using different actu- In those traditional plans, most of the ben- company announce it was converting to a arial and other assumptions. efits build up in an employee’s later years. cash-balance plan last year, he began asking This is generally legal, despite a federal Typical formulas multiply years of service it for the documents and assumptions he law that bars companies from cutting al- by the average salary in the final years, needed to compare the old pension to the ready-earned pensions. If Mr. Bruggeman when pay usually is highest. As a result, as new one. quit, he would get the full $352,000, so the law much as half of a person’s pension is earned With each new bit of data, he gained an- isn’t violated. But if he stays, it will take in the last five years on the job. other insight. First, he figured out that fu- several years of pay credits and interest be- With the new plans, everyone gets the ture pension accruals had been reduced by at fore his balance gets back up to $352,000. same steady annual credit toward an even- least 30% for most employees. CSW got rid of tual pension, adding to his or her pension-ac- early-retirement and other subsidies and re- ‘‘WEARAWAY’’ count ‘‘cash balance.’’ Employers contribute duced the rates at which employees would Mr. Douty says this happened to fewer a percentage of an employee’s pay, typically accrue pensions in the future. than 2% of workers at CSW. But at some 4%. The balance earns an interest credit, Employees wouldn’t necessarily conclude companies that switch to cash-balance plans, usually around 5%. And it is portable when this from the brochures the human resources far more are affected. At AT&T Corp., which the employee leaves. department handed out. Like most employ- adopted a cash-balance plan this year, many For the young, 4% of pay each year is more ers that switch to cash-balances plans, CSW older workers will have to work three to than what they were accruing under the old assured employees that the overall level of eight years before their balance catches up plan. But for those nearing retirement, the retirement benefits would remain un- and they start building up their pension pot amount is far less. So an older employee who changed. But a close reading of the brochure again. ‘‘Wearaway,’’ this is called. Only if an is switched in to a cash-balance system can revealed that this result depended on em- employee knows what figures to ask for can find his or her eventual pension reduced by ployees’ putting more into their 401(k) plans, he or she make a precise comparison of old 20% or 50% or, in rare cases, even more. gradually making up for the reduction in and new benefits. This is one way companies save money pensions. Indeed, the difficulty of making compari- with the switch. The other is a bit more At a question-and-answer session on the sons has sometimes been portrayed as an ad- complicated. Companies can also benefit new plan before it was adopted, Mr. vantage of switching to cash-balance plans. from the way they invest the assets in the Bruggeman spoke up and told co-workers A partner at the consulting firm that in- cash-balance accounts. how their pensions were being reduced. The vented the plans in the 1980s told a client in S7824 CONGRESSIONAL RECORD — SENATE June 29, 1999 a 1989 letter: ‘‘One feature which might come bying for exemptions from certain pension the five to 10 years it can take to make up in handy is that it is difficult for employees rules. the difference. Edgar Pouk says the con- to compare prior pension benefit formulas to They say they aren’t worried. That’s be- tributions the company doesn’t have to the account balance approach.’’ cause ‘‘companies who now have these plans make during that time add up quickly. Asked to comment, the author of that line, are sufficiently powerful, sufficiently big and Mr. POUK. You’re talking about tens of Robert S. Byrne of Kwasha Lipton (now a have enough clout that they could get Con- thousands of dollars for each worker. You unit of PricewaterhouseCoopers), says, gress to bend the law . . . to protect their multiply that by thousands of workers and ‘‘Dwelling on old vs. new benefits is probably plans,’’ says Judith Mazo, a Washington- the employer saves millions of dollars. not something that’s a good way to go for- based senior vice president for consulting KORRY. Often older workers don’t know ward.’’ firm Segal Co. Regulators, meanwhile, are what happened. Some employers, however, At one company, employees did know how playing catch-up. Bottom line, Ms. Mazo are careful to point out the differences. Then to make comparisons. When Deloitte & Tou- says: ‘‘The plans are too big to fail.’’ older workers have a choice. They can re- che started putting a cash-balance plan in coup their losses, but only by quitting, in place last year, some older actuaries re- [From ‘‘Morning Edition,’’ Feb. 1, 1999] which case they would receive a lump-sum belled. The firm eventually allowed all who PROS AND CONS OF CASH BALANCE PLANS FOR payment equal to their old balance. So cash had already been on the staff when the cash- RETIREMENT SAVINGS balance plans may be an inducement for balance plan was adopted to stick with the older workers to leave. Olivia Mitchell (ph), BOB EDWARDS, host. This is NPR’s ‘‘Morn- old benefit if they wished. head of the Pension Research Council at the ing Edition.’’ I’m Bob Edwards. Wharton School, says recent changes in STRUGGLE AT CHASE A new type of pension program is becoming labor and law have given older workers many At Chase Manhattan Corp., two executives popular with the nation’s top employers. The more job protections than before, so employ- in the private-banking division hired an ac- program is called the cash balance plan. It’s ers are resorting to creative ways to ease tuary and calculated that their future pen- an innovative and complicated type of re- their older worker force out. sions had fallen 45% as a result of a conver- tirement account suitable for today’s mod- Ms. OLIVIA MITCHELL (Pension Research sion to a cash-balance plan by Chase prede- ern work force, especially many young mo- Council, Wharton School). They may be cessor Chemical Bank. ‘‘I would have had to bile employees. And that’s the problem. Crit- downsizing, they may be looking for a dif- work about 10 more years before I broke even ics warn cash balance plans benefit the ferent type of employee, perhaps with dif- and got a payout equal to my old pension,’’ young at the expense of older, longtime ferent skills, and so they’re taking the cash says one of the executives, John Healy, now workers. NPR’s Elaine Korry reports. balance plan as one of many human resource 61. ELAINE KORRY reporting. The traditional policies to essentially restructure the work He and colleague Nathan Davi say that pension plan so widespread a generation ago force. So it’s seen as a tool toward that end. after seven years of their complaints, Chase essentially promised long-term employees a KORRY. Companies that convert to cash agreed to give each a pension lump sum of secure monthly income when they reached about $487,000, which was roughly $72,000 balance plans can level the playing field so retirement age. Eric Lofgren (ph), head of that all employees benefit. Some companies more than what they would have received the benefits consulting group (ph) at Watson under the new cash-balance plan. Although a will guarantee their older workers a higher Wyatt (ph), says that type of pension made rate of return or allow them to keep the old Chase official initially said the bank had sense when people worked at the same job ‘‘never given any settlement to any em- plan until they retire. But those are vol- for decades. But, he says, great changes in untary measures that eat up the cost sav- ployee over the bank’s pension plans,’’ when the workplace have made those plans obso- told about correspondence about the Healy- ings. For now, regulators have not caught up lete. with the growing momentum toward the new Davi case, Chase said that a review had de- Mr. ERIC LOFGREN (Benefits Consulting plans. But according to attorney Edgar termined that about 1,000 employees could be Group, Watson Wyatt). The traditional plan Pouk, employers who don’t protect their eligible for additional benefits. ‘‘We amended does a very good job for about one person out older workers are running the risk of landing the plan so that it would cover all similarly of 20. But for the rest of us who have changed in court. situated employees,’’ a spokesman said. jobs a couple times in our career, the tradi- Mr. POUK. When you have a number of How many quiet arrangements have been tional plan really doesn’t deliver, because it reached is unknown. But employees are cur- years where the older worker receives no ad- rewards long career with one employer and ditional benefits that a plan is illegal per se, rently pressing class-action suits against that just isn’t the situation for most people. Georgia-Pacific Corp. and Cummins Engine because federal law prohibits zero accruals KORRY. The response of many large em- for any year of participation. Co.’s Onan Corp. subsidiary, alleging that ployers—so far about 300 of them—has been cash-balance plans illegally reduce pensions. KORRY. So far, the Internal Revenue Serv- to quietly switch to a new plan that turns ice has not given its blessing to cash balance (Both defendants are fighting the suits.) the traditional pension on its head. Lofgren, Judges have recently dismissed similar suits plans. Employers have mounted an intense who helps companies formulate these new lobbying effort to win a safe harbor within against Bell Atlantic Corp. and BankBoston cash balance plans, says they spread the N.A. pension law. On the other side, employees at wealth around so more employees prosper, a few large companies have lawsuits pending CONCERN AT THE IRS perhaps 19 out of 20. But that’s not the only against the conversions, and some congres- Not aware of any of this ferment, Mr. reason companies are lining up to make the sional leaders have expressed concern. Staff- Bruggeman in August 1998 filed his multiple- switch. Edgar Pouk (ph), a New York pension ers on the Senate Finance Committee are spreadsheet analysis of the CSW cash-bal- law attorney, says that the real winners in considering legislation that would at least ance plan with the IRS and the Labor De- these plan conversions are the employers. require employers to spell out what a pen- partment, asking them for a review. Soon Mr. EDGAR POUK (Pension Law Attorney). sion conversion would mean for older work- after, he says, a manager in CSW’s benefits They stand to gain by the change, and so ers. Elaine Korry, NPR News, San Francisco. department called him in and ‘‘wanted to they’re trying to sell it, and they sell it by know what it would take for me to drop all emphasizing the advantages of the conver- By Mr. STEVENS (for himself, this.’’ The answer wasn’t to be ‘‘grand- sion for younger workers, but not explaining Mr. LOTT, Mr. HOLLINGS, and fathered’’ and exempted from the new plan. the drawbacks, and serious drawbacks, for ‘‘I told him all I want is for the company to older workers. Mr. DORGAN): . . . be fair to employees,’’ he says, ‘‘It’s the KORRY. In fact, says Pouk, switching to a S. 1301. A bill to provide reasonable principle of the thing.’’ cash balance plan can cost older employees and non-discriminatory access to build- The manager couldn’t be reached for com- tens of thousands of dollars, a loss they may ings owned or used by the Federal gov- ment, but a CSW official says the company never figure out. This stuff is so technical, ernment for the provision of competi- takes complaints ‘‘very seriously and they’re many pension experts don’t understand it, tive telecommunications services by thoroughly investigated. In every part of let alone the average employee. In simple telecommunications carriers; to the this type of investigation an employee is terms, here’s what happens: Pension regula- Committee on Commerce, Science, and interviewed by a company representative, tions permit companies to use two different and in every initial interview the employee interest rates when calculating the value of Transportation. is asked for suggestions on what might be a the old pension vs. the opening balance of COMPETITIVE ACCESS TO FEDERAL BUILDINGS preferred solution.’’ the new one. Employers usually choose the ACT Even without Mr. Bruggeman’s input, the formula that favors them, even though it Mr. STEVENS. Mr. President, today IRS has a lot of cash-balance data on its leaves older workers worse off. A pension I introduce, along with Senators LOTT, plate. The agency is swamped with paper- balance of, say, $100,000 under the old plan HOLLINGS, and DORGAN, a bill to ensure work from hundreds of new plans seeking its might be worth only $70,000 when converted that the Federal Government stands approval, and applications are piling up. The to a cash balance plan. Right there, the older behind its pledge to foster true com- delay is due in part to concern at the IRS worker is down 30 grand. that such plans may violate various pension It gets worse. For some accounting pur- petition in the provision of local tele- laws, according to a person familiar with the poses, the employer can treat the $70,000 as if communications services. situation. Meanwhile, the consulting firms it were 100 grand. Then the employer can While competition in the local tele- that create the plans for companies are lob- freeze the account until the employee works communications sector is growing, new June 29, 1999 CONGRESSIONAL RECORD — SENATE S7825 entrants using terrestrial fixed wire- ing, and removing any facilities they promote the competitive provision of tele- less or satellite services lack of the sig- provide. communications services and information nificant advantages of incumbent local The bill will not adversely impact services; and the ability of Federal agencies to ob- (5) that the Federal government should en- exchange carriers when it comes to courage States to develop similar policies by gaining access to many buildings. This tain office space. Federal agency heads establishing as federal policy requirements is particularly true when it comes to may waive the requirements of this bill to promote non-discriminatory access to access to rooftops and to the internal if enforcement of the bill would result Federal buildings and commercial property risers and conduits linking the rooftop in the agency being unable to obtain used by agencies of the Federal government to the basement, where the access suitable space in a geographic area. so that taxpayers receive the benefits and point to the internal phone wiring is The President may also waive the cost savings from the competitive provision usually located. nondiscriminatory access provisions of telecommunications services and informa- In some instances these wireless for any building if they are determined tion services by telecommunications car- riers. local carriers are welcomed by building to be contrary to the interests of na- SEC. 3. ACCESS TO BUILDINGS FOR COMPETITIVE owners and landlords with open arms; tional security. TELECOMMUNICATIONS SERVICES however, more often than not they I look forward to working with NTIA, The National Telecommunications and In- meet resistance, are rejected, or just the General Services Administration, formation Administration Organization Act plain ignored. I believe the Federal and private building owners who have a (Title I of Public Law 102–538; 47 U.S.C. 901 et Government should do more to ensure leasing relationship with the Federal seq.) is amended— a level playing field for these new en- Government to carry out the purpose (1) in section 103(b)(2) (47 U.S.C. 902(b)(2)) of this bill. by adding at the end the following new sub- trants to compete on. paragraph: Our bill is designed to spur competi- My goal is to ensure that the Federal ‘‘(U) The authority to implement policies tion and to hopefully save taxpayer Government sets a good example. I for buildings and other structures owned or dollars. We focus in this legislation hope it will become the standard in the used by agencies of the Federal government only upon buildings owned by the Fed- private sector. Businesses should de- in order to provide for non-discriminatory eral Government or where the Federal mand that building owners provide access to such buildings and structures for Government is a lessee. every opportunity for competitive the provision of telecommunications services The inspiration of this bill comes choice in telecommunications pro- or information services by telecommuni- viders. cations carriers, and to advise the Commis- from States which have moved to en- sion on the development of policies for non- courage access by competitors. Con- Access to Federal buildings or a discriminatory access by such carriers to necticut and Texas have both enacted building that is housing Federal work- commercial property in general for the pro- measures to promote nondiscrim- ers should be encouraged. This bill is a vision of such services.’’; and inatory access by telecommunications further step in implementing the prom- (2) in section 105 (47 U.S.C. 904) by adding carriers to rooftops, risers, conduits, ise of the Telecommunications Act at the end the following new subsection: utility spaces, and points of entry and which Congress enacted. ‘‘(f) PROHIBITION ON DISCRIMINATORY AC- It will help ensure that telecommuni- CESS.— demarcation in order to promote the ‘‘(1) IN GENERAL.—No Federal agency shall competitive provision of telecommuni- cations providers can compete fairly on enter into a contract with the owner or oper- cations and information services. the basis of the cost and quality of the ator of any commercial property for the This bill takes a similar approach to services provided. rental or lease of all or some portion of such that enacted by the States, and re- I ask unanimous consent that the property unless the owner or operator per- quires that nondiscriminatory access text of the bill be printed in the mits non-discriminatory access to, and use be provided to all telecommunications RECORD. of, the rooftops, risers, telephone cabinets, carriers seeking to provide service to S. 1301 conduits, points of entry or demarcation for internal wiring, easements, rights of way, federally-owned buildings and build- Be it enacted by the Senate and the House of and all utility spaces in or on such commer- ings in which Federal agencies are ten- Representatives of the United States of America cial property, for the provision of tele- ants. The National Telecommuni- in Congress assembled, communications services or information cations and Information Administra- SECTION 1. SHORT TITLE. services by any telecommunications carrier tion of the Department of Commerce, This Act may be cited as the ‘‘Competitive that has obtained, where required, a Federal the NTIA, which is the Agency that co- Access to Federal Buildings Act’’. or state certificate of public convenience and ordinates telecommunications policy SEC. 2. FINDINGS necessity for the provision of such services, The Congress finds that— for Federal agencies, is tasked with im- and which seeks to provide or provides such (1) non-discriminatory access to, and use services to tenants (including, but not lim- plementing this requirement. of, the rooftops, risers, telephone cabinets, ited to, the Federal agency for which such Building owners can easily meet the conduits, points of entry or demarcation for rental or lease is made) of such property. requirements of this bill. They can ei- internal wiring, and all utility spaces in or Such owner or operator may— ther certify that they are already on federal buildings and commercial prop- ‘‘(A) charge a reasonable and nondiscrim- bound to provide nondiscriminatory ac- erty is essential to the competitive provision inatory fee (which shall be based on the com- cess under State law or they can com- of telecommunications services and informa- mercial rental value of the space actually mit in writing that they will provide tion services; used by the telecommunications carrier) for (2) incumbent telecommunications carriers such access and use; such access as a matter of contract. often enjoy access to such buildings and ‘‘(B) impose reasonable and non-discrimi- This bill does not mandate that every property through historic rights of way that natory requirements necessary to protect building must use the services of these were developed before the advent of new the safety and condition of the property, and new competitors. What it does say is means of providing such services, in par- the safety and convenience of tenants and that the Federal Government should ticular the provision of such services using other persons (including hours when entry lead by example. terrestrial fixed wireless or satellite services and work may be conducted on the prop- This bill does not mandate a takings. that enter a building through equipment lo- erty); Owners and operators can charge a cated on rooftops; ‘‘(C) require the telecommunications car- (3) the National Telecommunications and nondiscriminatory fee for the rooftop rier to indemnify the owner or operator for Information Administration is the Federal damage caused by the installation, mainte- and conduit space these technologies agency tasked with developing policies for nance, or removal of any facilities of such use to provide local service—which I the efficient and competitive use of emerg- carrier; and am encouraged to say is quite small. ing technologies that combine spectrum use ‘‘(D) require the telecommunications car- Owners and operators may impose with the convergence of communications and rier to bear the entire cost of installing, op- reasonable requirements to protect the computer technologies for the utilization of erating, maintaining, and removing any fa- safety of the tenants and the condition telecommunications services and informa- cilities of such carrier. of the property. tion services by federal agencies; ‘‘(2) STATE LAW OR CONTRACTUAL OBLIGA- (4) that several States, for example Con- TION REQUIRED.—No Federal agency shall Any damage caused as a result of in- necticut and Texas, have already enacted enter into a contract with the owner or oper- stalling these services will be borne by measures to promote non-discriminatory ac- ator of any commercial property for the the telecommunications carrier. cess by telecommunications carriers to roof- rental or lease of all or some portion of such The carriers must pay for the entire tops, risers, conduits, utility spaces, and property unless the owner or operator sub- cost of installing, operating, maintain- points of entry and demarcation in order to mits to such agency a notarized statement S7826 CONGRESSIONAL RECORD — SENATE June 29, 1999 that such owner or operator is obligated cy with authority under other law to impose S. 1303. A bill to amend the Internal under State law, or is obligated or will un- such restrictions or requirements on the pro- Revenue Code of 1986 to modify certain dertake an obligation through a contractual vision of telecommunications services or the provisions relating to the treatment of facilities used to provide such services. commitment with each telecommunication forestry activities; to the Committee carrier providing or seeking to provide serv- ‘‘(B) Refusal by an owner to provide access ice, to resolve any disputes between such to a telecommunications carrier seeking to on Finance. telecommunication carriers and such owner provide telecommunications services or in- THE REFORESTATION TAX ACT OF 1999 or operator that may arise regarding access formation services to a commercial property Mr. MURKOWSKI. Mr. President, on to the commercial property or the provision due to a demonstrated lack of available June 17, I introduced bipartisan legisla- of competitive telecommunications services space at a commercial property on a rooftop or in a riser, telephone cabinet, conduit, tion (1240) providing capital gains for or information services to tenants of such the forest products industry and lifting property. To meet the requirements of this point of entry or demarcation for internal paragraph such State process or contractual wiring, or utility space due to existing occu- the existing cap on the reforestation commitment must— pation of such space by two or more tele- tax credit and amortization provisions ‘‘(A) provide an effective means for resolu- communications carriers providing service of the tax Code. tion of disputes within 30 days (unless other- to that commercial property shall not be a Unfortunately, because of a clerical wise required by State law or agreed by the violation of paragraphs (1)(B) or (2)(D) if the error, the section of the bill that lifted owner has made reasonable efforts to permit parties involved), either through arbitration access by such telecommunications carrier the cap on the tax credit and the amor- or order of a State agency or through bind- to any space that is available. tization provisions of the Code was in- ing arbitration; ‘‘(6) DEFINITIONS.—For the purposes of this advertently omitted from the bill. ‘‘(B) permit the telecommunications car- subsection the term— Today I am reintroducing the bill as it rier to initiate service or continue service ‘‘(A) ‘Federal agency’ shall mean any exec- while any dispute is pending; was originally intended to be drafted. utive agency or any establishment in the I ask unanimous consent that the ‘‘(C) provide that any fee charged for ac- legislative or judicial branch of the Govern- cess to, or use of, building space (including ment; text of the bill be printed in the conduits, risers, and utility closets), ease- ‘‘(B) ‘commercial property’ shall include RECORD. ments or rights of way, or rooftops to pro- any buildings or other structures offered, in There being no objection, the bill was vide telecommunications service or informa- whole or in part, for rent or lease to any Fed- ordered to be printed in the RECORD, as tion service be reasonable and applied in a eral agency; follows: non-discriminatory manner to all providers ‘‘(C) ‘incumbent local exchange carrier’ of such service, including the incumbent shall have the same meaning given such S. 1303 local exchange carrier; and term in section 251(h) of the Communica- Be it enacted by the Senate and House of ‘‘(D) provide that requirements with re- tions Act of 1934 (47 U.S.C. 251(h)); and Representatives of the United States of America spect to the condition of the property are ‘‘(D) ‘information service,’ ‘telecommuni- in Congress assembled, limited to those necessary to ensure that the cations carrier,’ and ‘telecommunications SECTION 1. SHORT TITLE. value of the property is not diminished by service’ shall have the same meaning given This Act may be cited as the ‘‘Reforest- the installation, maintenance, or removal of such terms, respectively, in section 3 of the ation Tax Act of 1999’’. Communications Act of 1934 (47 U.S.C. 153).’’. the facilities of the telecommunications car- SEC. 2. PARTIAL INFLATION ADJUSTMENT FOR rier, and do not require the telecommuni- SEC. 4. APPLICATION TO PUBLIC BUILDINGS. TIMBER. cations carrier to improve the condition of Within six months after the date of enact- (a) IN GENERAL.—Part I of subchapter P of the property in order to obtain access or use. ment of this Act the Secretary of Commerce, chapter 1 of the Internal Revenue Code of ‘‘(3) EFFECTIVE DATE.—Paragraphs (1) and acting through the Assistant Secretary of 1986 (relating to treatment of capital gains) (2) shall take effect six months after the date Commerce for Telecommunications and In- is amended by adding at the end the fol- of enactment of this subsection for all lease formation, shall promulgate final rules, after lowing new section: or rental agreements entered into or renewed notice and opportunity for public comment, to apply the requirements of section 105(f) of ‘‘SEC. 1203. PARTIAL INFLATION ADJUSTMENT by any Federal agency after such date. FOR TIMBER. the National Telecommunications and Infor- ‘‘(4) WAIVER PERMITTED.—The requirements ‘‘(a) IN GENERAL.—At the election of any mation Administration Organization Act, as of paragraphs (1) or (2) may be waived on a taxpayer who has qualified timber gain for added by this Act, to all buildings and other case by case basis— any taxable year, there shall be allowed as a structures owned or operated by any Federal ‘‘(A) by the head of the agency seeking deduction from gross income an amount agency. In promulgating such rules the As- space in a commercial property upon a deter- equal to the qualified percentage of such sistant Secretary may, at the direction of mination, which shall be made in writing gain. the President, exempt any buildings or and be available to the public upon request, ‘‘(b) QUALIFIED TIMBER GAIN.—For purposes structures owned or operated by a Federal that such requirements would result in the of this section, the term ‘qualified timber affected agency being unable, in that par- agency if the application of such require- ments would be contrary to the interests of gain’ means gain from the disposition of tim- ticular case, to obtain any space suitable for ber which the taxpayer has owned for more the needs of that agency in that general geo- national security. The Assistant Secretary shall coordinate the promulgation of the than 1 year. graphic area; or ‘‘(c) QUALIFIED PERCENTAGE.—For purposes ‘‘(B) by the President upon a finding that rules required by this section with the Ad- ministrator of the General Services Adminis- of this section, the term ‘qualified percent- waiver of such requirements is necessary to age’ means the percentage (not exceeding 50 obtain space for the affected agency in that tration and the heads of any establishments in the legislative and judicial branches of percent) determined by multiplying— particular case, and that enforcement of ‘‘(1) 3 percent, by such requirements in that particular case government which are responsible for build- ings and other structures owned or operated ‘‘(2) the number of years in the holding pe- would be contrary to the interests of na- riod of the taxpayer with respect to the tim- tional security. by such establishments. Such rules may in- clude any requirements for identification, ber. Any determination under subparagraph (A) background checks, or other matters nec- ‘‘(d) ESTATES AND TRUSTS.—In the case of may be appealed by any affected tele- essary to ensure access by telecommuni- an estate or trust, the deduction under sub- communications carrier to the Assistant cations carriers under this section does not section (a) shall be computed by excluding Secretary, who shall review the agency de- compromise the safety and security of agen- the portion of (if any) the gains for the tax- termination and issue a decision upholding cy operations in government owned or oper- able year from sales or exchanges of capital or revoking the agency determination within ated buildings or structures. For the pur- assets which, under sections 652 and 662 (re- 30 days of an appeal being filed. The burden poses of this section, the term ‘‘Federal lating to inclusions of amounts in gross in- shall be on the agency head to demonstrate agency’’ shall have the same meaning given come of beneficiaries of trusts), is includible through the written determination that all such term in section 105(f)(6) of the National by the income beneficiaries as gain derived reasonable efforts had been made to find Telecommunications and Information Ad- from the sale or exchange of capital assets.’’ suitable alternative space for the agency’s ministration Organization Act, as added by (b) COORDINATION WITH MAXIMUM RATES OF needs before the waiver determination was this Act. TAX ON NET CAPITAL GAINS.— made. The Assistant Secretary shall revoke (1) Section 1(h) of such Code (relating to any agency determination made without all By Mr. MURKOWSKI (for him- maximum capital gains rate) is amended by reasonable efforts being made. The decision self, Mr. BREAUX, Mr. GORTON, adding at the end the following new para- of the Assistant Secretary shall be binding Mr. COCHRAN, Mr. HUTCHINSON, graph: on the agency whose waiver determination ‘‘(14) QUALIFIED TIMBER GAIN.—For pur- Ms. COLLINS, Mrs. LINCOLN, Mr. was appealed. poses of this section, net capital gain shall ‘‘(5) Limitations.— SHELBY, Ms. SNOWE, Mrs. MUR- be determined without regard to qualified ‘‘(A) Nothing in this subsection shall waive RAY, Mr. SESSIONS, Mr. SMITH of timber gain (as defined in section 1203) with or modify any requirements or restrictions Oregon, Mrs. HUTCHISON, Mr. respect to which an election is in effect imposed by any Federal, state, or local agen- GRAMS, and Ms. LANDRIEU): under section 1203.’’ June 29, 1999 CONGRESSIONAL RECORD — SENATE S7827

(2) Subsection (a) of section 1201 of such section (b) and by redesignating subsections S. 765 Code (relating to the alternative tax for cor- (c) and (d) as subsections (b) and (c), respec- At the request of Ms. COLLINS, the porations) is amended by inserting at the tively. names of the Senator from Wisconsin end the following new sentence: (2) Subsection (b) of section 194 of such (Mr. FEINGOLD) and the Senator from ‘‘For purposes of this section, net capital Code (as redesignated by paragraph (1)) is California (Mrs. BOXER) were added as gain shall be determined without regard to amended by striking paragraph (4). qualified timber gain (as defined in section (3) Paragraph (1) of section 48(b) of such cosponsors of S. 765, a bill to ensure the 1203) with respect to which an election is in Code is amended by striking ‘‘(after the ap- efficient allocation of telephone num- effect under section 1203.’’ plication of section 194(b)(1))’’. bers. (c) ALLOWANCE OF DEDUCTION IN COMPUTING (c) EFFECTIVE DATE.—The amendments S. 796 ADJUSTED GROSS INCOME.—Subsection (a) of made by this section shall apply to additions At the request of Mr. WELLSTONE, the section 62 of such Code (relating to definition to capital account made after December 31, of adjusted gross income) is amended by in- 1998. name of the Senator from Delaware serting after paragraph (17) the following f (Mr. BIDEN) was added as a cosponsor of new paragraph: S. 796, a bill to provide for full parity ‘‘(18) PARTIAL INFLATION ADJUSTMENT FOR ADDITIONAL COSPONSORS with respect to health insurance cov- TIMBER.—The deduction allowed by section S. 348 erage for certain severe biologically- 1203.’’ At the request of Ms. SNOWE, the based mental illnesses and to prohibit (d) TECHNICAL AMENDMENTS.— name of the Senator from Connecticut limits on the number of mental illness- (1) Subparagraph (B) of section 172(d)(2) of such Code is amended to read as follows: (Mr. DODD) was added as a cosponsor of related hospital days and outpatient ‘‘(B) the exclusion under section 1202 and S. 348, a bill to authorize and facilitate visits that are covered for all mental the deduction under section 1203 shall not be a program to enhance training, re- illnesses. allowed.’’ search and development, energy con- S. 894 (2) The last sentence of section 453A(c)(3) of servation and efficiency, and consumer At the request of Mr. CLELAND, the such Code is amended by striking ‘‘(which- education in the oilheat industry for name of the Senator from Arkansas ever is appropriate)’’ and inserting ‘‘or the the benefit of oilheat consumers and (Mrs. LINCOLN) was added as a cospon- deduction under section 1203 (whichever is the public, and for other purposes. appropriate)’’. sor of S. 894, a bill to amend title 5, (3) Section 641(c)(2)(C) of such Code is S. 386 United States Code, to provide for the amended by inserting after clause (iii) the At the request of Mr. GORTON, the establishment of a program under following new clause: name of the Senator from New York which long-term care insurance is ‘‘(iv) The deduction under section 1203.’’ (Mr. MOYNIHAN) was added as a cospon- made available to Federal employees (4) The first sentence of section 642(c)(4) of sor of S. 386, a bill to amend the Inter- and annuitants, and for other purposes. such Code is amended to read as follows: ‘‘To nal Revenue Code of 1986 to provide for S. 916 the extent that the amount otherwise allow- tax-exempt bond financing of certain At the request of Mr. GRAMS, the able as a deduction under this subsection electric facilities. consists of gain described in section 1202(a) name of the Senator from Colorado or qualified timber gain (as defined in sec- S. 566 (Mr. CAMPBELL) was added as a cospon- tion 1203(b)), proper adjustment shall be At the request of Mr. LUGAR, the sor of S. 916, a bill to amend the Agri- made for any exclusion allowable under sec- names of the Senator from Texas (Mrs. cultural Market Transition Act to re- tion 1202, and any deduction allowable under HUTCHISON) and the Senator from peal the Northeast Interstate Dairy section 1203, to the estate or trust.’’ Texas (Mr. GRAMM) were added as co- Compact provision. (5) The last sentence of section 643(a)(3) of sponsors of S. 566, a bill to amend the S. 921 such Code is amended to read as follows: Agricultural Trade Act of 1978 to ex- ‘‘The exclusion under section 1202 and the de- At the request of Mr. ABRAHAM, the empt agricultural commodities, live- duction under section 1203 shall not be taken names of the Senator from Mississippi stock, and value-added products from into account.’’ (Mr. COCHRAN) and the Senator from (6) The last sentence of section 643(a)(6)(C) unilateral economic sanctions, to pre- Alaska (Mr. MURKOWSKI) were added as of such Code is amended by inserting ‘‘(i)’’ pare for future bilateral and multilat- cosponsors of S. 921, a bill to facilitate before ‘‘there shall’’ and by inserting before eral trade negotiations affecting and promote electronic commerce in the period ‘‘, and (ii) the deduction under United States agriculture, and for securities transactions involving section 1203 (relating to partial inflation ad- other purposes. justment for timber) shall not be taken into broker-dealers, transfer agents and in- S. 664 account’’. vestment advisers. At the request of Mr. CHAFEE, the (7) Paragraph (4) of section 691(c) of such S. 978 Code is amended by inserting ‘‘1203,’’ after name of the Senator from Iowa (Mr. ‘‘1202,’’. GRASSLEY) was added as a cosponsor of At the request of Mr. WARNER, the (8) The second sentence of paragraph (2) of S. 664, a bill to amend the Internal name of the Senator from Virginia (Mr. section 871(a) of such Code is amended by Revenue Code of 1986 to provide a cred- ROBB) was added as a cosponsor of S. striking ‘‘section 1202’’ and inserting ‘‘sec- it against income tax to individuals 978, a bill to specify that the legal pub- tions 1202 and 1203’’. who rehabilitate historic homes or who lic holiday known as Washington’s (e) CLERICAL AMENDMENT.—The table of Birthday be called by that name. sections for part I of subchapter P of chapter are the first purchasers of rehabilitated S. 1074 1 of such Code is amended by adding at the historic homes for use as a principal end the following new item: residence. At the request of Mr. TORRICELLI, the name of the Senator from New York ‘‘Sec. 1203. Partial inflation adjustment for S. 680 timber.’’ At the request of Mr. CLELAND, his (Mr. SCHUMER) was added as a cospon- sor of S. 1074, a bill to amend the So- (f) EFFECTIVE DATE.—The amendments name was added as a cosponsor of S. made by this section shall apply to sales or 680, a bill to amend the Internal Rev- cial Security Act to waive the 24- exchanges after December 31, 1998. enue Code of 1986 to permanently ex- month waiting period for medicare cov- SEC. 3. AMORTIZATION OF REFORESTATION EX- tend the research credit, and for other erage of individuals with amyotrophic PENDITURES AND REFORESTATION purposes. lateral sclerosis (ALS), and to provide TAX CREDIT. S. 761 medicare coverage of drugs and (a) DECREASE IN AMORTIZATION PERIOD.— At the request of Mr. ABRAHAM, the biologicals used for the treatment of (1) IN GENERAL.—Section 194(a) of the Inter- ALS or for the alleviation of symptoms nal Revenue Code of 1986 is amended by names of the Senator from New Jersey striking ‘‘84 months’’ and inserting ‘‘60 (Mr. TORRICELLI) and the Senator from relating to ALS. months’’. Minnesota (Mr. GRAMS) were added as S. 1088 (2) CONFORMING AMENDMENT.—Section cosponsors of S. 761, a bill to regulate At the request of Mr. KYL, the name 194(a) of such Code is amended by striking interstate commerce by electronic of the Senator from Arizona (Mr. ‘‘84-month period’’ and inserting ‘‘60-month means by permitting and encouraging MCCAIN) was added as a cosponsor of S. period’’. (b) REMOVAL OF CAP ON AMORTIZABLE the continued expansion of electronic 1088, a bill to authorize the Secretary BASIS.— commerce through the operation of of Agriculture to convey certain ad- (1) Section 194 of the Internal Revenue free market forces, and for other pur- ministrative sites in national forests in Code of 1986 is amended by striking sub- poses. the State of Arizona, to convey certain S7828 CONGRESSIONAL RECORD — SENATE June 29, 1999 land to the City of Sedona, Arizona for SENATE CONCURRENT RESOLUTION 22 S. 516, the Electric Utility Restruc- a wastewater treatment facility, and At the request of Mr. DODD, the name turing Empowerment and Competitive- for other purposes. of the Senator from Rhode Island (Mr. ness Act of 1999; S. 1047, the Com- S. 1118 REED) was added as a cosponsor of Sen- prehensive Electricity Competition At the request of Mr. MCCAIN, his ate Concurrent Resolution 22, a concur- Act; S. 1273, a bill to amend the Fed- name was added as a cosponsor of S. rent resolution expressing the sense of eral Power Act to facilitate the transi- 1118, a bill to amend the Agricultural the Congress with respect to promoting tion to more competitive and efficient Market Transition Act to convert the coverage of individuals under long- electric power markets, and for other price support program for sugarcane term care insurance. purposes; and S. 1284, a bill to amend and sugar beets into a system of solely SENATE CONCURRENT RESOLUTION 34 the Federal Power Act to ensure that recourse loans to provide for the grad- At the request of Mr. SPECTER, the no State may establish, maintain or ual elimination of the program. name of the Senator from Minnesota enforce on behalf of any electric utility S. 1133 (Mr. GRAMS) was added as a cosponsor an exclusive right to sell electric en- At the request of Mr. GRAMS, the of Senate Concurrent Resolution 34, a ergy or otherwise unduly discriminate name of the Senator from North Da- concurrent resolution relating to the against any customer who seeks to kota (Mr. CONRAD) was added as a co- observance of ‘‘In Memory’’ Day. purchase electric energy in interstate commerce from any supplier. sponsor of S. 1133, a bill to amend the SENATE RESOLUTION 91 The PRESIDING OFFICER. Without Poultry Products Inspection Act to At the request of Mr. SANTORUM, the cover birds of the order Ratitae that name of the Senator from Oklahoma objection, it is so ordered. are raised for use as human food. (Mr. INHOFE) was added as a cosponsor COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS S. 1185 of Senate Resolution 91, a resolution Mr. DOMENICI. Mr. President, I ask At the request of Mr. ABRAHAM, the expressing the sense of the Senate that name of the Senator from Utah (Mr. Jim Thorpe should be recognized as the unanimous consent that the full Com- mittee on Environment and Public BENNETT) was added as a cosponsor of ‘‘Athlete of the Century’’. Works be granted permission to con- S. 1185, a bill to provide small business SENATE RESOLUTION 95 duct a business meeting to mark up (1) certain protections from litigation ex- At the request of Mr. THURMOND, the cesses and to limit the product liabil- S. 1100, a bill to amend the Endangered names of the Senator from North Caro- Species Act of 1973 to provide that the ity of non-manufacturer product sell- lina (Mr. HELMS), the Senator from Illi- ers. designation of critical habitat for en- nois (Mr. FITZGERALD), and the Senator dangered and threatened species be re- S. 1266 from Hawaii (Mr. INOUYE) were added quired as part of the development of re- At the request of Mr. GORTON, the as cosponsors of Senate Resolution 95, covery plans for those species; (2) Nom- name of the Senator from Idaho (Mr. a resolution designating August 16, ination of Timothy Fields, Jr., nomi- CRAIG) was added as a cosponsor of S. 1999, as ‘‘National Airborne Day.’’ nated by the President to be Assistant 1266, a bill to allow a State to combine SENATE RESOLUTION 98 Administrator, Office of Solid Waste, certain funds to improve the academic At the request of Mr. DOMENICI, the Environmental Protection Agency; and achievement of all its students. name of the Senator from Michigan (3) Committee Budget Resolution. The S. 1268 (Mr. ABRAHAM) was added as a cospon- meeting is scheduled for Tuesday, June At the request of Mr. HARKIN, the sor of Senate Resolution 98, a resolu- 29, 10:00 a.m., Hearing Room (SD–406). name of the Senator from Pennsyl- tion designating the week beginning The PRESIDING OFFICER. Without vania (Mr. SPECTER) was added as a co- October 17, 1999, and the week begin- objection, it is so ordered. sponsor of S. 1268, a bill to amend the ning October 15, 2000, as ‘‘National COMMITTEE ON FINANCE Public Health Service Act to provide Character Counts Week.’’ Mr. DOMENICI. Mr. President, the support for the modernization and con- SENATE RESOLUTION 109 Finance Committee requests unani- struction of biomedical and behavioral At the request of Mr. BROWNBACK, the mous consent to conduct a hearing on research facilities and laboratory in- name of the Senator from Pennsyl- Tuesday, June 29, 1999 beginning at strumentation. vania (Mr. SANTORUM) was added as a 10:00 a.m. in room 215 Dirksen. S. 1269 cosponsor of Senate Resolution 109, a The PRESIDING OFFICER. Without At the request of Mr. MCCONNELL, resolution relating to the activities of objection, it is so ordered. the name of the Senator from Okla- the National Islamic Front government COMMITTEE ON HEALTH, EDUCATION, LABOR AND homa (Mr. NICKLES) was added as a co- in Sudan. PENSIONS sponsor of S. 1269, a bill to provide that SENATE RESOLUTION 111 Mr. DOMENICI. Mr. President, I ask the Federal Government and States At the request of Mr. GRAHAM, the unanimous consent that the Com- shall be subject to the same procedures name of the Senator from Rhode Island mittee on Health, Education, Labor, and substantive laws that would apply (Mr. CHAFEE) was added as a cosponsor and Pensions be authorized to meet for to persons on whose behalf certain civil of Senate Resolution 111, a resolution a hearing on ‘‘ESEA: Arts Education actions may be brought, and for other designating June 6, 1999, as ‘‘National and Magnet Schools’’ during the ses- purposes. Child’s Day.’’ sion of the Senate on Tuesday, July 29, S. 1272 f 1999, at 9:30 a.m. At the request of Mr. NICKLES, the The PRESIDING OFFICER. Without names of the Senator from North Caro- AUTHORITY FOR COMMITTEES TO objection, it is so ordered. lina (Mr. HELMS) and the Senator from MEET SUBCOMMITTEE ON FOREST AND PUBLIC LAND Minnesota (Mr. GRAMS) were added as COMMITTEE ON ENERGY AND NATURAL MANAGEMENT cosponsors of S. 1272, a bill to amend RESOURCES Mr. DOMENICI. Mr. President, I ask the Controlled Substances Act to pro- Mr. DOMENICI. Mr. President, I ask unanimous consent that the Sub- mote pain management and palliative unanimous consent that the Com- committee on Forests & Public Land care without permitting assisted sui- mittee on Energy and Natural Re- Management of the Committee on En- cide and euthanasia, and for other pur- sources be granted permission to meet ergy and Natural Resources be granted poses. during the session of the Senate on permission to meet during the session SENATE JOINT RESOLUTION 21 Tuesday, June 29, for purposes of con- of the Senate on Tuesday, June 29, for At the request of Ms. SNOWE, the ducting a full committee hearing purposes of conducting a hearing which name of the Senator from Vermont which is scheduled to begin at 9:30 a.m. is scheduled to begin at 2:30 p.m. the (Mr. LEAHY) was added as a cosponsor The purpose of this hearing is to re- purpose of this oversight hearing is to of Senate Joint Resolution 21, a joint ceive testimony on S. 161, the Power receive testimony on fire preparedness resolution to designate September 29, Marketing Administration Reform Act on Federal lands. 1999, as ‘‘Veterans of Foreign Wars of of 1999; S. 282, the Transition to Com- The PRESIDING OFFICER. Without the United States Day.’’ petition in the Electric Industry Act; objection, it is so ordered. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7829 SUBCOMMITTEE ON SCIENCE, TECHNOLOGY, AND reducing and preventing violent acts within S. 254 will also help to deter SPACE committed by our nation’s youth. gang involvement by imposing stiff Mr. DOMENICI. Mr. President, I ask In 1997, young people under the age of penalties on anyone who recruits a unanimous consent that the Sub- eighteen represented 17 percent of all minor to become a member of a crimi- committee on Science, Technology, violent arrests; 50 percent of all arson nal street gang, or who uses a minor to and Space of the Senate Committee on arrests; 37 percent of burglary arrests; distribute illegal drugs or participate Commerce, Science, and Transpor- and 14 percent of murder arrests. Over- in crimes of violence—common activi- tation be authorized to meet on Tues- all in 1997, law enforcement agencies ties of gangs. By imposing enhanced day, June 29, 1999, at 2:30 P.M. on made approximately 2.8 million arrests penalties on those who wear body NOAA, U.S. Fire Administration, and of persons under the age of eighteen. armor during crimes and prohibiting Earthquake Hazards Reduction Pro- These sobering statistics indicate the violent felons from owning body armor, gram reauthorization need to combat youth violence in we will also help to protect the lives of The PRESIDING OFFICER. Without America to ensure that the young of- law enforcement officers who put their objection, it is so ordered. fenders of today do not become the ca- f lives on the line each day protecting reer criminals of tomorrow. our communities from the threat of ADDITIONAL STATEMENTS For these reasons, I am pleased to have voted for passage of S. 254, the gang violence. ‘‘Violent and Repeat Juvenile Offender As someone who has always sup- TRIBUTE TO RABBI MOSHE Accountability and Rehabilitation ported the important role of local com- SHERER Act.’’ I believe that many of the provi- munities in developing anti-crime ∑ Mr. KENNEDY. Mr. President, it is a sions within this legislation will hold strategies, I am pleased that the Sen- privilege to join in this tribute to violent juvenile offenders accountable ate modified this legislation to encour- Rabbi Moshe Sherer. To all of us who for their actions and also integrate age the active role of State Advisory knew him and worked with him, Rabbi many young offenders back into their Groups (SAGs) as part of the juvenile Sherer was a great friend, a great lead- communities. We should all recognize justice system. I am hopeful that the er, and a great champion of democracy that federal legislation is not a ‘‘silver conference report to this legislation and freedom. bullet’’ solution to the problem of will preserve the same level of respon- Rabbi Sherer was an inspiration to youth violence, and that our response sibility for SAGs as provided under all of us, especially in his work on im- to this epidemic is only one aspect of current law. migration and religious freedom. He nationwide efforts to reduce and pre- In my home state, the Minnesota Ju- worked skillfully and tirelessly to free vent violent juvenile crime. venile Justice Advisory Committee prisoners of conscience in the former Among its most significant provi- sions, this bipartisan legislation will (JJAC) is composed of twenty-two indi- Soviet Union, to reunite divided fami- viduals appointed by the Governor, in- lies, and to protect freedom of religion provide assistance to Minnesota and other states to help develop local pro- cluding local prosecutors, students, po- across the globe. lice chiefs, judges, and state agency Even in the darkest hours of com- grams that hold young criminal offend- ers accountable for their actions, in- personnel, representative of commu- munism, Rabbi Sherer was an eloquent nities throughout Minnesota. In 1998, advocate for the right of the oppressed cluding such reforms as drug testing offenders upon arrest; implementing JJAC awarded more than $1 million in to leave the Soviet Union. He had an federal funds to community-based or- enduring belief that the freedom to graduated sanction programs for repeat offenders; and building detention facili- ganizations, schools, Indian reserva- emigrate to escape persecution is one tions, and local law enforcement agen- of the most basic and fundamental ties for juvenile offenders. Equally im- cies to help develop effective and inno- human rights. portant, states will also be empowered vative juvenile offender programs. As the President of Agudath Israel of to prevent juvenile delinquency America for over three decades, Rabbi through initiatives such as one-on-one Statewide, more than 40,000 youth and Sherer was instrumental in developing mentoring programs aimed toward at- their families were served by local pro- that organization into a powerful force risk juveniles and providing treatment grams identified and evaluated by for justice in our nation and across the for juveniles who suffer from substance JJAC last year. I ask that a list of the world. He inspired us all with his gen- abuse. Minnesota Juvenile Justice Advisory erous spirit of tolerance, his extraor- Mr. President, this measure also ad- Committee membership and a letter to dinary knowledge and understanding, dresses an area of increasing concern me from the JJAC Vice-Chair be in- and his deep commitment to human to communities in my home state of cluded as part of the RECORD following rights and religious freedom. Minnesota—gang violence. Today, my remarks. We are fortunate to have worked there are more than 12,000 gang mem- Mr. President, over the last several with Rabbi Sherer, and we mourn his bers in Minnesota, the nation’s tenth- months, I have given careful thought loss. His brilliant legacy will continue highest level of gang participation. to the aspects of our society that may to be an inspiration for future genera- Throughout Minnesota, many com- contribute to incidents of juvenile tions. We miss his leadership and we munities have developed programs to crime, including the influence of the miss his friendship.∑ stop the spread of gang activity, in- entertainment industry upon young f cluding the ‘‘South Metro Gang and people. My concerns are underscored by Youth Violence Project’’ sponsored by JUVENILE CRIME IN AMERICA a recent e-mail I received from Andrew Carver, Dakota and Scott counties. Backenstross, a young Minnesotan and Mr. GRAMS. Mr. President, I rise ∑ Among its achievements, this project Boy Scout who is working on his Citi- today to express my support for the re- has developed a computerized database zenship in the Nation merit badge in cent passage by the Senate of S. 254, to identify gang members, established the community of White Bear Lake. the ‘‘Violent and Repeat Offender Ac- a telephone hotline for graffiti re- countability and Rehabilitation Act of moval, and formed the ‘‘South Metro Andrew wrote, ‘‘All my teachers say 1999.’’ Gang Task Force,’’ through which law that school should be a safe place to go One of the most complex issues fac- enforcement agencies meet monthly to and study. But Colorado and other ing our society is how communities share information regarding gang ac- places show us how exposed we are and confront the troubling trends in vio- tivity in their jurisdictions. Through that it could happen to us. Public lent crime committed by young people. education, training and other commu- schools need to be able to discipline or In particular, the recent tragedy in nity initiatives, this program has remove anyone who is not a threat or Littleton, Colorado underscores that begun to tackle the threat of gang and will not meet standards. Metal detec- all elements of our society, including youth violence. tors, searches and police walking the parents, faith-based organizations, In my view, the federal government halls is not the answer. That was not local officials, educators, students, and can supplement local anti-gang initia- needed when my Dad went to school. law enforcement officials should be en- tives by vigorously enforcing federal People thought differently. We have to couraged to work together to develop laws designed to combat interstate ask, what has changed? Maybe we are innovative and effective solutions to gang crime. The anti-gang provisions being conditioned for violence. S7830 CONGRESSIONAL RECORD — SENATE June 29, 1999 ‘‘My parents have taught me about transactions at gun shows while also and Passaic County Community Col- standards, acceptable behavior and re- addressing the public safety concerns lege; the Felician College Founders spect for myself and others. Maybe of millions of Americans. In my view, Day Award; the Paterson Historic more help could be given to parents to this proposal was more reasonable than Preservation Commission’s Heritage be parents. Maybe if they didn’t have a more-restrictive proposal by Senator Award; and the Palestinian Heritage to give so much of their income away LAUTENBERG that was later passed by Foundation Humanitarian Award. in taxes they could afford to stay home the Senate. Sister Jane’s retirement presents a and be parents.’’ Mr. President, I believe the Senate huge challenge. We have the legacy of In response to the concerns expressed passage of this bill is an important her intellect and passion; we have the by young people such as Andrew, and contribution to the national response solid foundation of her three decades of thousands of parents, I am pleased that to youth violence. The 106th Congress guidance; we have her enduring vision; the Senate bill encourages the enter- should seize the opportunity to pass but we will need an extraordinary tal- tainment industry to voluntarily es- meaningful and balanced legislation ent to fill the void she leaves. tablish guidelines to reduce violence in that will encourage local solutions to The best tribute we can give, the motion pictures, television program- the complex problem of juvenile tribute we owe to Sister Jane, is the ming, video games, and music lyrics. crime.∑ promise and commitment to find the The bill also encourages Internet Serv- f best way to give the best healthcare to ice Providers (ISPs) to provide filtering the most people. That was what she RETIREMENT OF SISTER JANE software to consumers that could block did. That was her gift of faith and FRANCIS BRADY juvenile access to unsuitable material. strength.∑ These provisions will provide parents ∑ Mr. LAUTENBERG. Mr. President, I with the tools needed to reduce their rise to pay tribute to Sister Jane f children’s exposure to the culture of vi- Francis Brady, who is retiring after 30 olence. years at St. Joseph’s Hospital and Med- SESQUICENTENNIAL OF MCDONALD Mr. President, there were several ical Center in Paterson, New Jersey. COUNTY amendments offered to this legislation For 27 of those years, Sister Jane ∑ Mr. BOND. Mr. President, this week- that would impose additional restric- served as the hospital’s President and end will be doubly special for the resi- tions upon lawful Americans, without Chief Executive Officer. This not only dents of McDonald County in my home contributing to a reduction in juvenile is a well-deserved public tribute, but state of Missouri. On March 3, 1849, crime. Throughout the debate over also a very personal tribute. Paterson McDonald county was established by these proposals, I urged the Senate to is my hometown, and St. Joseph’s Hos- the State Legislature and named after promote greater enforcement of our ex- pital has been an institution both lit- Revolutionary War hero Alexander isting firearms laws before passing new erally and figuratively for generations McDonald. Not only will this weekend gun control measures that would in- of Paterson families, including my mark the 223rd anniversary of the fringe upon the constitutional rights of own. To thousands of people in New founding of our country, but it is also law-abiding citizens. I am very con- Jersey and the region, she is ‘‘Sister the formal celebration of the 150th an- cerned that prosecutions of those who Jane’’ and the hospital is ‘‘St. Joe’s.’’ niversary of the founding of McDonald violate federal firearms laws have been They are a union that has put quality County. far less zealous than what the Amer- and hope into so many lives. McDonald County has a distinguished ican people deserve and expect. For many people in the Paterson history, including a gold rush in the According to the Executive Office of area, Sister Jane has been the soul, the last century. McDonald County was the United States Attorney, there were spirit and the face of healthcare. I have also the site for the filming of a 1938 only eight prosecutions in 1998 of those been privileged to work with her on a movie about Jesse James starring Ty- who violated the federal prohibition on number of projects that have expanded rone Power, Randolph Scott, and possessing a firearm in a school zone. St. Joe’s to meet the continually grow- Henry Fonda. More recently, every From 1996 through 1998, there was only ing needs of the surrounding commu- Christmas the Post Office in the city of one prosecution of felons who have nity. Under Sister Jane’s stewardship, Noel receives thousands of cards to re- been denied the purchase of firearms St. Joseph’s Hospital has become a ceive the stamp of ‘‘The Christmas after being subjected to a background focus of wellness care and training— City.’’ McDonald County is also a check. These statistics underscore the the source for preventive, primary and major economic force in the state of reality that passing new, expansive gun emergency health services, and for Missouri, ranking first in agricultural control laws will not prevent violent more general education and counseling. sales, due to their $50 million poultry crime or the illegal use of firearms. Sister Jane’s curriculum vitae is As an alternative to far-reaching gun stellar. She has held the highest advi- industry. control proposals, I supported an sory positions on healthcare, serving as I join the citizens of McDonald Coun- amendment that encouraged the en- Vice-Chair of the New Jersey Commis- ty in celebrating this milestone in forcement of existing gun laws, the sion on Legal and Ethical Problems in their history. I take great pride in rec- rights of law-abiding citizens, and the Delivery of Health Care; on New ognizing this historic event and wish keeping firearms from children and Jersey’s Health Care Administration McDonald County prosperity in the criminals. This proposal provided $50 Board; on the SEEDCO Board of Trust- next 150 years that is even greater than million to hire additional federal pros- ees of New York; on the Leadership the last. Mr. President, I ask that my ecutors to prosecute those who violate Task Force on Health Policy Reform of colleagues in the Senate join me in rec- our gun laws; a prospective ban on ju- the Catholic Health Association of the ognizing the sesquicentennial of veniles convicted of violent offenses United States; and on the Board of McDonald County.∑ Trustees of the Catholic Health Asso- from ever owning a firearm; and en- f hanced penalties for juveniles who ille- ciation of the U.S. gally bring a gun or ammunition to She has been recognized for her con- school with the intent of possessing or tributions by numerous organizations, PHYSICIAN-ASSISTED SUICIDE using the firearm to commit a violent receiving, among others, the Paterson ∑ Mr. WYDEN. Mr. President, today I crime. Community Service Award; the Cita- have informed the minority leader that Additionally, this proposal requires tion of Merit from the NJ Association I will object to any unanimous consent all firearms transactions at gun shows of Nonprofit Homes for the Aging; the request to proceed to S. 1272 or any leg- to be subject to the National Instant Paterson Community Support Fund islation containing provisions that Check System (NICS) without sub- Humanitarian Award; ‘‘Woman of the would override Oregon’s physician as- jecting law-abiding purchasers to un- Year’’ awards from the American Le- sisted suicide law. I have notified the necessary fees or record-keeping re- gion, the Paterson Boys and Girls Club, bill’s sponsor and the committee chair- quirements. Importantly, this provi- the NJ State Organization of Cystic Fi- man and ranking member to which it sion preserves legitimate business brosis, the American Cancer Society, was referred.∑ June 29, 1999 CONGRESSIONAL RECORD — SENATE S7831 MILITARY CHANGE OF COMMANDS but I look forward to working with Citizen and the Constitution program. ∑ Mr. ALLARD. Mr. President, in the him. I am sure he will follow in the They recently made a trip to the Na- June edition of Leatherneck magazine, able footsteps of all the past United tion’s Capital to participate in a mock the Commandant of the Marine Corps, States Marines Corps Commandants, congressional hearing where they General Charles Krulak, quotes his fa- and serve the Marines and America ad- played the role of constitutional ex- ther as saying: ‘‘The American people mirably.∑ perts testifying before a panel of believe that Marines are downright f judges. Their fellow students at Cen- good for the country.’’ I agree with The tral High, their families and friends, MEDAL OF HONOR RECIPIENTS Commandant’s father. And I am along with the people of Cheyenne and pleased General Krulak also holds that ∑ Mr. LUGAR. Mr. President, over the the entire state of Wyoming are very well founded opinion. The United Memorial Day weekend, a series of proud of these students who spent long States Marine Corps is collectively events and memorial services were held hours studying the Constitution and good for this country, and the services in Indianapolis honoring our nation’s the related court cases to be able to an- of individual marines such as General Medal of Honor winners. Nearly 100 of swer detailed and complex questions Krulak are a big part of that positive all of the living Medal of Honor recipi- about the Constitution that would nor- contribution made by the Corps. ents came to Indiana to participate in mally be considered by the Supreme Unfortunately, the title of the article the ceremonies as honored guests. In Court. in which General Krulak quoted his fa- addition to paying tribute to these he- Guided by their teacher, Donald Mor- ther was ‘‘A farewell to the Corps.’’ roes and celebrating their remarkable ris, these students took on the difficult General Krulak will be retiring after accomplishments with a healthy dose task of competing against 1,250 other four years from his position as Com- of Hoosier hospitality, a new memorial students from across the nation. They mandant at the end of this month. I to the Medal of Honor winners was worked together for a whole semester would like to thank him for his service dedicated. This memorial is only one of to master the ins and outs of the Con- and efforts on behalf of his Corps and its kind in the nation. All of this was stitution and the Supreme Court cases his nation. made possible by countless numbers of that set important precedents. In doing Although I have been on the Armed volunteers who worked tirelessly to so they learned a great deal about the Services Committee a short six carry out this program that was initi- value of friendship and the importance months, I have had several good experi- ated and undertaken by IPALCO Enter- of teamwork. I hope that more schools ences with the Commandant. prises of Indianapolis. in Wyoming and around the nation I think the most notable was in May Following this remarkable weekend. take advantage of the We The People of this year, when a large group of my I received a letter from Major General program. constituents were taking a tour of the Robert G. Moorhead, USA (Ret.), who When I was a Boy Scout back in Pentagon, and the Commandant in- through his words captured the senti- Sheridan, Wyoming, I earned my Citi- vited them into his office. He said then ments of many of my State who were a zenship in the Nation merit badge by that he usually tries to do something part of these historic and moving creating a series of charts showing the similar—bring tourists into his per- events. system of checks and balances con- sonal office—everyday. I do not think At this time, Mr. President, I ask tained in the Constitution. Although it Krulak was fully aware of what he was that an excerpt from General Moor- did not occur to me at the time, I am getting himself into, but all fifty or so head’s letter be printed in the RECORD. sure part of me was inspired and want- crowded their way into his office, and The excerpt follows. ed to get more involved in government listened while he spoke about the As the last days of the 20th century con- and our democratic process. Now I am Corps, the moving of his office down tinue to unfold, Memorial Day weekend in a part of that system that relies so from the ‘barbed wire surrounded hill the capital of Indiana was one to remember. heavily on the Charters of Freedom of the Naval Annex’ to the corridors of Nearly 100 Medal of Honor recipients were that were crafted with such diligence the Pentagon, and the Corps’ efforts guests for a series of stirring tributes. These by our Founding Fathers. I hope that a and ability to turn young men and included a solemn Memorial Service; the love of the Constitution, the law and women into marines. dedication of the only memorial to recipi- our nation’s history will similarly in- ents of the Medal of Honor; grand marshals Let me tell you, they were impressed. in the IPALCO 500 Festival Parade; an out- spire all our young people to become They were impressed with his position, door concert by the Indianapolis Symphony more involved in their government and they were impressed with his efforts, Orchestra; and a parade lap around the by so doing take hold of the reins on they were impressed with his commit- famed Indianapolis Motor Speedway oval their future. ment, and they were impressed with prior to the start of the race. I would like to take this opportunity the man. As the 20th century draws to a close, many to recognize these students by name. I have also had correspondence with wonder if the nation has lost sight of the They are David Angel, Kristen Barton, General Krulak relating to our work on sacrifices which have been made to preserve Beth Brabson, Michelle Brain, Mary S.4, and for the process of preparing freedom. After this Memorial Day weekend Connaghan, Mariah Martin, Andrea in Indianapolis, my heart remains swollen the defense authorization. He consist- with pride in our land and my fellow citi- Mau, Alison McGuire, Rachel Michael, ently strikes me as a man who is well zens. The reception given these ordinary men Joanna Morris, Leigh Nelson, Tiffany aware of the challenges his position who did extraordinary things can never be Price, Lydia Renneisen, Shannon holds, and works to meet them. He has equaled. Scritchfield, Erica Tonso and Katie been straightforward and dependable. I am especially proud of the untold hun- Zaback. They are truly remarkable Hearing testimony from him at com- dreds of volunteers who gave of their time young adults and I extend my heartiest mittee hearings is always a pleasure. and talent to make these events possible. congratulations to them, to their He does not rattle off bland platitudes. Memorial Day Weekend 1999 did much to teachers and principal, and their fami- convince me that our nation’s freedom lov- I felt that I could always rely on his ing spirit is alive and well. It also under- lies on their remarkable success.∑ opinion to be the truest possible inter- scored the true meaning of ‘‘Hoosier Hospi- f pretation of the situation, and one that tality.’’ REMARKS OF FORMER SENATOR held the best interests of the country Sincerely, HANK BROWN at the foremost. MG ROBERT G. MOORHEAD, Let me end by repeating: General USA Ret.∑ ∑ Mr. ALLARD. Mr. President, most of Krulak has been fundamentally good f my colleagues in this body, I’m sure, for this country. I wish him well in remember my predecessor, Hank whatever new course he sets for him- WE THE PEOPLE FINALS Brown. He represented me for 10 years self. ∑ Mr. ENZI. Mr. President, I rise to as the Congressman from Colorado’s Also, I would like to welcome Gen- recognize the outstanding achievement 4th district, and I had the further privi- eral James Jones into his role as the of the students of Central High School lege of working with him during my 6 32nd Commandant of the Marine Corps. from Cheyenne, Wyoming in the na- years in the House. Since he retired I have met with him only very briefly, tional finals of We The People . . . The from this body in 1996, I have relied on S7832 CONGRESSIONAL RECORD — SENATE June 29, 1999 his knowledge and experience. As you are the best advice in history on how to live fellows. If that’s true, ask what your life might know, Senator BROWN is now a joyous life and find happiness on earth? It’s amounts to. Wilson’s thought was that we President Brown, the head of the Uni- a different thought, isn’t it? If it’s so, then are the sum total of how we help each other versity of Northern Colorado, in Gree- our earthly existence may not be about earn- and the role we play amongst others. Per- ing our way to heaven or even enjoying a haps that’s a good guide for us to evaluate ley, the Senator’s hometown. perfect life on earth. It may be about learn- what we do in life. It’s also a pretty good Recently, President Brown spoke at ing and preparing for the next life. guide to examine whether you’ve found the the Colorado Prayer Luncheon in Den- Parents face every day, something of the real joy in life. ver. He spoke on God’s love, and our challenge that our Lord must experience. I don’t know the answer to Job’s question. role in this world. His thoughts are, as How do you prepare children for life? We love Like you, I am troubled by the events and always, particularly insightful and rel- our children more than life itself. Do we do the currents of evil in the world. I, like you, evant. their homework for them? Perhaps some of suspect that our responsibility is to do what you have faced that question. If you don’t we can to make sure the tragedy never hap- I ask to have these inspirational help them with their homework, they may pens again. I’m not sure there’s a surefire words printed in the CONGRESSIONAL fail and they may not have the chances you formula to prevent disasters. But I do believe RECORD. hope for them. But the story doesn’t end that the freedom God gives us to live our The remarks follow. there. If you do it for them, what do they lives and make our choices surely must be REMARKS OF HANK BROWN, COLORADO PRAYER learn? How do they learn that they have to designed to prepare us for another world and LUNCHEON prepare in advance for the next time? How help us understand that we have a role in have you helped them learn a lesson for life? Ladies and Gentlemen, today is a day of re- making this world better. If we learn from Growing up, I couldn’t understand my this, and all of us go forth determined to newal. It is a renewal of our commitment to mother. How could she be so tough? She our Maker as well as a renewal of our com- make a difference from this moment on, the never once bought the stories I brought tragedy, in one way, will have served to mitment to each other. The fact that so home about how everyone did it, how it must many different faiths join together in this make our world a better one. be OK because everyone else got by with it. Thank you. luncheon is a sign of our commitment to ∑ In fact, she was never even tempted by them. f each other’s religious freedom. I recall a series of incidents of her forcing The incomprehensible tragedy at Col- me to confess my sins—once to a storeowner GUIDANCE FOR THE DESIGNATION umbine is on all of our minds. It will reshape a few blocks from here where I’d taken some OF EMERGENCIES AS A PART OF our lives as well as the families of the vic- gum, once to my grandmother, once at THE BUDGET PROCESS—MOTION tims. Its impact will be with us for many school. Those forced confessions resulted in years. unbelievable embarrassment. How could she TO PROCEED Next month it will be 46 years since my do such a thing? If I wanted something, her Mr. NICKLES. I ask unanimous con- brother died in a gun accident. He was only answer was, ‘‘I’ll help you find a job.’’ I sent the Senate now turn to Calendar 16—not much younger than the children who worked 20–40 hours a week while I was in No. 89, S. 557, regarding the budget were murdered at Columbine. The other day high school, and, in the summers I had one process to which the so-called lockbox my mother said to me that not a day goes by or two full-time jobs, depending on the sum- that she doesn’t think of him and miss him. mer. My parents were divorced. She worked issue is pending as an amendment. I suspect that the parents and loved ones of full-time. She didn’t have a lot of time to su- Mr. DURBIN. Mr. President, I object. the victims at Columbine will be the same. pervise me. But her strength was to keep me CLOTURE MOTION The memory of those children will be with busy, and she kept me so busy I almost Mr. NICKLES. In light of the objec- them every day for the rest of their lives. stayed out of trouble. As I look back, I won- tion, I now move to proceed to Senate How do we explain it? How do you rec- der whether I have been near as good a par- bill 557, and I send a cloture motion to oncile the tragedy in your own mind? ent as she was. the desk. We believe our God is good, we believe our I will never forget the Clarence Thomas The PRESIDING OFFICER. The clo- God, is love, we believe our God is all-power- hearings, and I suspect some of you may ful and capable of controlling everything. have that feeling as well. One of the in- ture motion having been presented How could something this evil be allowed to stances I recall was a question posed by a under rule XXII, the Chair directs the happen? It’s not a new question. It’s been senator—a person of great integrity—who clerk to read the motion. with mankind throughout history. had very strong doubts about Clarence The assistant legislative clerk read A few thousand years ago, a fellow by the Thomas’ judicial philosophy. When his turn as follows: name of Job had the same questions. He was came to ask questions, the senator said, CLOTURE MOTION devout, religious and pious. He was com- ‘‘Clarence Thomas, I see two Clarence Thom- We, the undersigned Senators, in accord- mitted to carrying on the work of his Lord, as’s, not just one. I see one that seems so ance with the provisions of rule XXII of the yet great tragedies were visited upon him. kind, generous, thoughtful and warm. And Standing Rules of the Senate, do hereby He lost his home. He lost his fortune. He lost then I see one that is mean, cruel and hard. move to bring to a close debate on the mo- his health. He even lost his beloved children. Which one are you?’’ Justice Thomas re- tion to proceed to Calendar No. 89, S. 557, a But he didn’t lose his faith. And throughout sponded immediately. He said, ‘‘There is bill to provide guidance for the designation it, he asked ‘‘Why?’’ Was he being tested? only one Clarence Thomas. And I am him. I of emergencies as a part of the budget proc- Was he being punished? I’m not sure we used to wonder how my uncle could pretend ess: know. His friends came and talked to him, to care for me so much and be so hard on me. Trent Lott, Spencer Abraham, Jim and they suggested that he must be being It wasn’t until later that I learned that he Inhofe, Kay Bailey Hutchison, Pete punished, that he must have done something was the one who loved me the most.’’ Domenici, Paul Coverdell, Wayne Al- wrong. And yet, of course Job hadn’t. He I wonder if our Lord has in mind to prepare lard, Jesse Helms, Larry E. Craig, Mike hadn’t been evil; he hadn’t sinned. He’d kept us for a life to come. Could tragedies and Crapo, Chuck Hagel, Mike DeWine, Mi- the faith. The attitude of his friends perhaps trials in this life prepare us for the next? It’s chael B. Enzi, Judd Gregg, Tim Hutch- is parallel to the way many of us think. It is a question worth asking. The year my broth- inson, and Craig Thomas. natural to think that if we are good, if we er died, I was 13. My grandfather gave me a follow the rules, if we observe the mandates, book, It was written by Woodrow Wilson. It Mr. NICKLES. Mr. President, for the good things will happen to us. And yes, if we was a wonderful little book called ‘‘When a information of all Senators, I regret sin, we’ll be punished. And yet, Job hadn’t Man Comes To Himself.’’ It had as strong an the objection from our Democrat col- sinned. I don’t pretend to know the answer. influence on me as any book I’ve read. Wil- leagues to allow the Senate to proceed But I want to speculate with you this after- son, as you know, was an idealist. In the to the very vital issue of the Social Se- noon, and I want to suggest that part of the book he talks about what the real joys in life curity lockbox issue. With the objec- answer lies in God’s purpose for our lives in are. He observes that the real pay one gets tion in place, I had no other alter- this world. from a job is not the paycheck at the end of What if this earthly existence is not in- the month, although that’s important. The native than to file a cloture motion on tended to be a paradise? What if our Maker’s real joy comes from what you do. A brick- the motion to proceed. This cloture real kingdom is not of this world? What if layer or carpenter can drive through town vote will occur on Thursday, 1 hour the purpose of our earthly existence is to and see the homes they’ve built providing after the Senate convenes, unless train us, to prepare us, to test us—not for shelter and warmth for families. Others can changed by unanimous consent. All this world, but for the next? What if the look at the work they’ve done and see how it Senators will be notified as to the commandments of Moses and the admonition impacts lives and changes the people they exact time of the cloture vote. to love each other is not a checklist for pros- know. Wilson’s thesis was that you are what perity in this world, but guidance for how you do with your life. You’ve seen those ads CALL OF THE ROLL we’ll behave when we truly accept grace? where they say you are what you eat. I sin- In the meantime, I ask consent that Not a way to earn grace, but what we’ll do if cerely hope that’s not true. His thesis was the mandatory quorum under rule XXII we accept it. What if those commandments that you are the role you play among your be waived. June 29, 1999 CONGRESSIONAL RECORD — SENATE S7833 The PRESIDING OFFICER. Is there To the Senate of the United States: day, immediately following the prayer, objection? I transmit herewith for Senate advice the Journal of proceedings be approved Mr. DURBIN. I object. and consent to ratification the Conven- to date, the morning hour be deemed to The PRESIDING OFFICER. The ob- tion Between the Government of the have expired, the time for the two lead- jection is heard. United States of America and the Gov- ers be reserved for their use later in Mr. NICKLES. I now withdraw the ernment of the Republic of Venezuela the day, and that the Senate then motion to proceed. for the Avoidance of Double Taxation begin consideration of S. 1234, the for- The PRESIDING OFFICER. The mo- and the Prevention of Fiscal Evasion eign operations appropriations legisla- tion is withdrawn. with Respect to Taxes on Income and tion. Capital, together with a Protocol, The PRESIDING OFFICER. Without f signed at Caracas on January 25, 1999. objection, it is so ordered. Also transmitted is the report of the f REMOVAL OF INJUNCTION OF SE- Department of State concerning the Convention. CRECY TREATY DOCUMENT NO. PROGRAM 106–3 This Convention, which is similar to tax treaties between the United States Mr. NICKLES. For the information of Mr. NICKLES. I ask unanimous con- and other developing nations, provides all Senators, Wednesday the Senate sent to proceed as if in executive ses- maximum rates of tax to be applied to will convene at 9:30 and will begin con- sion. various types of income and protection sideration of the foreign operations ap- The PRESIDING OFFICER. Without from double taxation of income. The propriations bill. Amendments to that objection, it is so ordered. Convention also provides for resolution bill are expected, and therefore votes Mr. NICKLES. I ask unanimous con- of disputes and sets forth rules making are to be expected throughout the day. sent that the injunction of secrecy be its benefits unavailable to residents Due to the agreement reached re- removed from the following treaty that are engaged in treaty shopping. garding health care reform, it is hoped transmitted to the Senate on June 29, I recommend that the Senate give the Senate can complete action on a 1999, by the President of the United early and favorable consideration to number of appropriations bills prior to States: this Convention and that the Senate the Fourth of July recess. 1. Tax Convention with Venezuela give its advice and consent to ratifica- f (Treaty Document No. 106–3); tion. I further ask that the treaty be con- WILLIAM J. CLINTON. ADJOURNMENT UNTIL 9:30 A.M. sidered as having been read the first THE WHITE HOUSE, June 29, 1999. TOMORROW time; that it be referred, with accom- f panying papers, to the Committee on Mr. NICKLES. Mr. President, if there Foreign Relations and ordered to be ORDERS FOR WEDNESDAY, JUNE is no further business to come before printed; and that the President’s mes- 30, 1999 the Senate, I now ask unanimous con- sage be printed in the RECORD. Mr. NICKLES. I ask unanimous con- sent the Senate stand in adjournment The PRESIDING OFFICER. Without sent that when the Senate complete its under the previous order. objection, it is so ordered. business today, it stand in adjourn- There being no objection, the Senate, The message of the President is as ment until 9:30 a.m. on Wednesday, at 6:30 p.m., adjourned until Wednes- follows: June 30. I further ask that on Wednes- day, June 30, 1999, at 9:30 a.m.